Document:

EXHIBIT 10.01

 

AGREEMENT AND PLAN OF MERGER 

 

THIS AGREEMENT AND PLAN OF MERGER (this “Agreement”)
is made and entered into this 8th day of February, 2016, by and between Nexeon MedSystems, Inc., a Delaware Corporation (“NXDE”),
and Nexeon MedSystems Inc, a Nevada corporation (“NXNV”). Together, NXDE and NXNV are the “Parties”.

 

Recitals

 

A. NXDE is a corporation duly organized and
validly existing under the laws of the State of Delaware and, as of the date hereof, has authorized capital consisting of 17,000,000
shares of Common Stock with a par value of $0.0001 per share, of which 1,529,000 shares are issued and outstanding; and 14,000,000
shares of Preferred Stock par value $0.0001 per share, of which 10,222,137 shares of Series A Preferred Shares, and 832,034 shares
of Series B Preferred Shares are issued and outstanding. Additionally, NXDE has 80,000 outstanding options which shall be[1]
terminated at the Effective Time and 604,212 Deferred Compensation Units outstanding, all of which will be terminated[2]
at the Effective Time.

 

B. NXNV is a corporation duly organized and
validly existing under the laws of the State of Nevada and, as of the date hereof, has authorized capital consisting of 75,000,000
shares of Common Stock with a par value of $.001 per share, of which 15,000,000 shares are issued and outstanding.

 

C. Each Party’s Board of Directors believes
it is in its and its stockholders’ best interests that NXDE merge with and into NXNV through a statutory merger (the “Merger”)
and, in furtherance thereof, have approved the Merger.

 

D. Pursuant to the Merger all of NXDE’s
issued and outstanding shares of (i) Series A Preferred Stock (the “Series A Preferred Shares”), and (ii)
Series B Preferred Stock (the “Series B Preferred Shares” and, together with the Series A Preferred Stock,
the “NXDE Preferred Shares”, each having a par value of $0.0001 per share, will be converted into
the right to receive shares of NXNV Common Stock, par value $0.001 per share (“NXNV Common Shares”).

 

 

Now, Therefore, for and in consideration of
the mutual covenants and agreements hereinafter set forth and other good and valuable consideration, the receipt, adequacy and
sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

Definitions

 

“Material Adverse Effect”
or “Material Adverse Change” means any effect or change that would be materially adverse to the business of
either Party or to the ability of any Party to consummate timely the transactions contemplated hereby: provided, that none of the
following shall be deemed to constitute and none of the following shall be taken into account in determining whether there has
been a Material Adverse Effect or Material Adverse Change: (a) any adverse change, event, development or effect arising from or
relating to (1) general business or economic conditions, including such conditions related to the business of the either Party,
(2), national or international social or political conditions, including the engagement of the United States in hostilities, whether
or not pursuant to the declaration of a national emergency or war, or the occurrence of any military or terrorist attack on the
United States, or any of its territories, possessions or diplomatic or consular offices or upon the military installation, equipment
or personnel of the United States, (3) financial, banking or securities markets (including any disruption thereof and any decline
in the price of any security or market index, (4) changes in GAAP, (5) changes in laws, rules, regulations, orders or other binding
directives issued by any Government Authority or (6) the taking of any action contemplated by this Agreement and any agreements
contemplated hereby; (b) any existing event, occurrence or circumstances with respect to which NXNV and NXDE have actual knowledge
as of the date hereof; and (c) any adverse change in or effect of the business of the Company that is cured by the Effective Time
or the termination of this Agreement.

 

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“Net Product Sales ”means
all cash and non-cash consideration from the sale of Products less the following items directly attributable to the Sale of such
Products and borne by Surviving Corporation (as defined below), its affiliates or licensees as the seller: (a) discounts and rebates
actually granted; (b) sales, value added, use and other taxes and government charges actually paid, excluding income taxes; (c)
import and export duties actually paid; (d) freight, transport, packing and transit insurance charges actually paid or allowed;
and (e) other amounts actually refunded, allowed or credited due to rejections or returns, but not exceeding the original invoiced
amount.

 

“Patents” means (a) the
patents and patent applications listed on Exhibit A, all patents resulting from the patent applications listed on Exhibit
A, and all continuations, continuations-in-part, divisions, extensions, substitutions, re-issues, re-examinations, and renewals
of any of the foregoing, and (b) any patents arising from any applications filed after the Effective Time and that claim priority
from any of the patents or patent applications in subsection (a) priority.

 

“Person” means an individual,
a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture and
unincorporated organization, and any other business entity or Governmental Authority.

 

“Products” means all products
developed by the Surviving Corporation using the Patents.

 

“Quarterly Payment Deadline”
means the day that is 30 days after the last day of any particular Quarter.

 

“Sell, Sale or Sold” means
any transfer or other disposition of Products or for which consideration is received by the Surviving Corporation, its affiliates
or licensees. A Sale of Products will be deemed completed at the time the Surviving Corporation or its affiliates or licensees
receives such compensation. On or before each Quarterly Payment Deadline, Surviving Corporation shall report to the entity formed
by NXDE to receive royalty payments the identification of each Product for which royalty payments are due in that quarter, the
name of any licensee or affiliate making such sales, the Net Product Sales proceeds received in that quarter by Surviving Corporation,
its licensees and affiliates, and the royalties due from such sales.

 

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Merger

 

§ 1.1 Surviving Corporation. In
accordance with the terms and conditions of this Agreement, including without limitation, the conditions precedent set forth in
Article VI hereof, NXDE shall be merged with and into NXNV (the “Merger”) effective as of the Effective Time (as defined
in 1.2 below). NXNV shall be the surviving corporate entity (the “Surviving Corporation”) and shall continue its corporate
existence under the laws of the State of Nevada. The name of the Surviving Corporation shall continue to be “Nexeon MedSystems
Inc”, a Nevada corporation.

 

§ 1.2 Effective Time. The Parties
will cause the Merger to be consummated by filing a Certificate of Merger (or like instrument) with the Secretary of State of Delaware
and the Nevada Secretary of State in accordance with the corporate laws of the State of Delaware and Nevada. The Merger shall become
effective upon the issuance of a Certificate of Merger by the Nevada Secretary of State. The date and time when the Merger becomes
effective is referred to herein as the “Effective Time.”

 

§ 1.3 Succession and Assumption.
Immediately as of the Effective Time, by virtue of the Merger and without any action by NXNV or NXDE: (a) NXNV shall succeed to
all present and future rights, titles, privileges, powers and franchises of NXNV and NXDE, and (b) NXNV shall assume any and all
liabilities, duties and obligations of NXDE and NXNV, as they exist immediately prior to the Effective Time.

 

§ 1.4 Articles of Incorporation.
As of the Effective Time, the Articles of Incorporation of NXNV in effect immediately prior to the Effective Time shall become
the Articles of Incorporation of the Surviving Corporation, until thereafter amended as provided by law.

 

§ 1.5 Bylaws. At the Effective
Time, the Bylaws of NXNV in effect immediately prior to the Effective Time shall become the Bylaws of the Surviving Corporation,
until thereafter amended as provided by law.

 

§ 1.6 Officers and Directors. At
the Effective Time, the directors of NXNV shall consist of five members: two (2) of the directors shall be appointed by the former
directors of NXDE, one of whom shall be Dr. Mark Bates with the other to be a yet to be determined individual; and three (3) of
the directors shall have be elected by NXNV shareholders, who shall be William Rosellini, Ronald Conquest, and a yet to be determined
individual. Thereafter, the full board of directors shall elect the officers of NXNV.

 

Conversion of Stock

 

§ 2.1 Conversion of Stock. At the
Effective Time, by virtue of the Merger and without any action on the part of the holders thereof:

 

(a) the number of shares of Common Stock of
NXNV, $0.001 par value per share (the “NXNV Common Stock”), authorized immediately prior to the Effective Time shall
continue to represent the same number of authorized shares of the Surviving Corporation Common Stock; the number of shares of Preferred
Stock of NXNV, $0.001 par value per share (the “NXNV Preferred Stock”) authorized prior to the Effective Time shall
continue to represent the same number of authorized shares of the Surviving Corporation Preferred Stock; and

 

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(b) the total number of shares of the NXDE
Preferred Shares issued and outstanding prior to the Effective Time, shall be converted into the right to receive 1,659.943 fully
paid and non-assessable NXNV Common Stock (the “Preferred Conversion Consideration”). No such shares of NXDE Preferred
Shares shall be converted to Preferred Stock of the Surviving Corporation. The total number of shares received in the Merger, shall
be allocated to each NXDE Shareholder pursuant to the list of current NXDE shareholders. The list of those NXDE shareholders, along
with the number of shares of NXNV Common Stock, which each NXDE Shareholder will receive, is attached hereto as Exhibit B. Each
share of NXDE’s Common Shares issued and outstanding immediately prior to the Effective Time will be cancelled and extinguished
without conversion.

 

(c) all such NXDE Preferred Shares, when so
converted, will no longer be outstanding and will automatically be canceled and retired and will cease to exist, and the holder
of a certificate (“NXDE Preferred Stock Certificate”) that, immediately prior to the Effective Time,
represented outstanding NXDE Preferred Shares will cease to have any rights with respect thereto, except the right to receive,
upon the surrender of such NXDE Preferred Stock Certificate: (i) the Preferred Conversion Consideration, and (ii) cash in lieu
of fractional shares under Section ‎2.2 (collectively, the “Merger Consideration”).

 

§ 2.2 Fractional Shares. In lieu
of issuing fractional shares of the Surviving Corporation in exchange for NXDE Stock, the Surviving Corporation shall cause to
be paid to each person or entity entitled thereto an amount equal to $1.00 for each fractional share of the Surviving Corporation’s
Common Stock resulting from the conversion of NXDE Stock into stock of the Surviving Corporation pursuant to §2.1 hereof.

 

§ 2.3 Closing of Transfer Books.
At the Effective Time, the stock transfer books of NXNV and NXDE shall be closed and no transfer of shares of NXDE shall thereafter
be made. After the Effective Time, certificates previously representing shares of NXDE Common Stock and shares of both Series A
and Series B NXDE Preferred Stock shall be cancelled and exchanged for shares of Common Stock of the Surviving Corporation as provided
in §2.4 hereof.

 

§ 2.4 Exchange of NXDE Stock. As
soon as practicable after the Effective Time, the Surviving Corporation shall mail to each holder of record of NXDE Stock, immediately
prior to the Effective Time, a form letter of transmittal for return to the Surviving Corporation, or its stock transfer Agent,
containing instructions for use in effecting the surrender of certificates of NXDE Stock for certificates of Common Stock in the
Surviving Corporation. Upon the proper surrender of such certificates, the record holder thereof shall be issued the number of
fully paid and non-assessable shares of the Surviving Corporation’s Common Stock as such holder is entitled to receive under
§§2.1 and 2.2 hereof. Thereafter such NXDE surrendered certificates shall be cancelled and of no further force or effect.
Until surrendered, each certificate of NXDE Stock shall represent solely the right to receive shares of the Surviving Corporation
into which the NXDE Stock shall have been converted pursuant to §§2.1 and 2.2 hereof.

 

NXDE and its Shareholders understand and
accept without qualification that the shares of NXNV Common Stock received pursuant to this Agreement have not been registered
with the Securities and Exchange Commission (SEC) or any state securities regulatory authority, and that standard restrictions
on the unregistered shares of NXNV Common Stock will apply to each and every NXDE Shareholder receiving shares a part of this Merger
or Debt Conversion. Each Stock Certificate issued by NXNV shall bear a legend indicating that the shares are non-transferrable
until the standard NXNV and SEC conditions for enabling transferability have been met.

 

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§ 2.5 Dissenting Shares. Any holders
of shares of NXDE Stock outstanding immediately prior to the Effective Time who have properly perfected their statutory dissenters
rights in accordance with Section 262 of The Business Corporation Law of Delaware shall receive payment for their shares after
the Effective Time from the Surviving Corporation, but only after the amount of such payment has been agreed upon or finally determined
pursuant to such provisions of Section 262 of Business Corporation Law of Delaware.

 

§ 2.6 Additional Consideration.
Prior to the Effective Time, NXDE shall spin-off any rights to the royalties in this Section 2.6 to a newly formed limited liability
company (“NXDE LLC”). As additional consideration to the shareholders of NXDE, the Surviving Corporation shall pay
NXDE LLC a royalty equal to Three Percent (3%) (the “NXDE Royalty”) of Net Product Sales received by the Surviving
Corporation, its affiliates and licensees after the merger and derived from the commercialization of patents or other intellectual
property owned by NXDE prior to the merger. A comprehensive list, agreed to by NXNV and NXDE of any and all such patents and intellectual
property is attached hereto as Exhibit A and by this reference incorporated herein.

 

§ 2.7 Tax Treatment. The Parties
intend that the Merger constitute a tax free reorganization under Code Section 368.

 

§ 2.8 Conversion/Assumption/Payment
of Certain Notes Payable to Stockholders. At the Effective Time, any NXDE shareholder owed any sum of money by NXDE shall have
the right to convert their debt to participation in the NXNV Private Placement dated February 1, 2016 (the “Offering”)
pursuant to the terms and conditions of the Offering as set forth in the NXNV Private Placement Memorandum. The debt exchange rate
shall be One Dollar ($1.00) of NXDE shareholder debt for One (1) Unit of the Offering. Any amount owed to an NXDE shareholder not
converted into shares of NXNV Common Stock shall be represented by a promissory note entered into at the Effective Time by and
between NXNV and the NXDE shareholder or their affiliates. The principal and interest of the promissory note shall be due and payable
Two (2) years from the Effective Date and shall accrue interest at the rate of Seven Percent (7%) per annum.

 

Representations and Warranties of NXDE

 

NXDE hereby represents and warrants to NXNV
as follows:

 

§ 3.1 Corporate Organization. NXDE
is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware with all requisite
corporate power and authority to own, operate and lease its properties and to carry on its business as it is now being conducted.

 

§ 3.2 Capitalization of NXDE. As
of the date hereof, the authorized capital stock of NXDE consists of 17,000,000 shares of Common Stock, par value of $0.0001 per
share, of which there are issued and outstanding 1,529,000 shares of such Common Stock. As of the date hereof, the authorized capital
stock of NXDE consists of 14,000,000 shares of Preferred Stock, par value of $0.0001 per share, of which there are issued and outstanding
10,222,137 shares of Series A Preferred Stock and 832,034 shares of Series B Preferred Stock. All of such outstanding shares have
been validly issued and are fully paid and non-assessable with no personal liability attaching to the ownership thereof. Prior
to the Effective Time, there were 80,000 Stock Options, all of which will be terminated at or prior to the Effective Time and 604,212
Deferred Compensation Units of NXDE, all of which will be terminated at the Effective Time.

 

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§ 3.3 Authorization. NXDE has the
necessary corporate power and authority to enter into this Agreement, which has been duly authorized by its board of directors
and shareholders. This Agreement is a legal, valid, and binding obligation of NXDE.

 

§ 3.4 No Violation. Neither the
execution and delivery of this Agreement by NXDE, the performance by NXDE of its obligations hereunder nor the consummation by
it of the transactions contemplated hereby will (i) violate any provision of the Articles of Incorporation or Bylaws of NXDE; (ii)
constitute a default under or cause the acceleration of the maturity of any debt or obligation, which, individually or in the aggregate
with all other such debts and obligations, is material to NXDE taken as a whole; or (iii) to the best of the knowledge and belief
of NXDE, violate any statute or law or any judgment, decree, order, regulation or rule of any court or governmental authority to
which NXDE is subject, which would have a material adverse effect on the financial condition, business, or operations of NXDE,
taken as a whole.

 

§ 3.5 Litigation. Except as set
forth on Schedule 3.5[3], to the best
of the knowledge and belief of NXDE, there is no action, proceeding or investigation pending or threatened against or involving
NXDE or any properties or rights of NXDE, to specifically include any patents issued or pending in which NXDE has an ownership
interest, which, if determined adversely, could materially and adversely affect the financial condition, business, or operations
of NXDE taken as a whole. NXDE is not in violation of any order, judgment, injunction, or decree outstanding against it, the effect
of which would be materially adverse to the financial condition, business, or operations of NXDE, taken as a whole.

 

§ 3.6 Financial Statements. NXDE
heretofore has delivered to NXNV true and complete copies of the audited historical consolidated financial statements of NXDE as
of December 31, 2010 and the unaudited consolidated financial statements for the periods ending December 31, 2011 through December
31, 2015. Such financial statements of NXDE delivered to NXNV were prepared in accordance with generally accepted accounting principles
applied on a consistent basis and present fairly the financial position, results of operations, and changes in financial position
of NXDE as of the dates and for the periods indicated herein above. As of the date of such financial statements, NXDE did not have
any liabilities or obligations (absolute, accrued, contingent or otherwise) material to NXDE taken as a whole, which were not reflected
on such financial statements. Since the date of such financial statements, NXDE has not incurred any liabilities material to NXDE
taken as a whole, except (i) liabilities incurred in the ordinary course of business and consistent with past practices; (ii) liabilities
disclosed on such financial statements; and (iii) liabilities incurred in connection with this Merger or as otherwise permitted
by this Agreement.

 

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§ 3.7 Title to Properties. NXDE
has good and marketable title to any and all of its material properties and assets (real, person and mixed, tangible and intangible)
including without limitation, all the properties and assets which it purports to own as reflected on its financial statements furnished
to NXNV, and specifically with respect to patents issued or pending in which NXDE has an ownership interest.

 

§ 3.8 No ERISA Issues. NXDE has
no plan or agreement filed under the Employment Retirement Income Security Act which will cause any assumed or ongoing liability
to Surviving Corporation.

 

Representations and Warranties of NXNV

 

NXNV hereby represents and warrants to NXDE
as follows:

 

§ 4.1 Corporate Organization. NXNV
is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada with all requisite
corporate power and authority to own, operate, and lease its properties and to carry on its business as it is now being conducted.

 

§ 4.2 Capitalization of NXNV. As
of the date hereof, the authorized capital stock of NXNV consists of 75,000,000 shares of Common Stock, par value of $0.001 per
share, and there are 15,500,000 shares Common stock issued and outstanding, and there are no shares of Preferred Stock authorized
or issued and outstanding. All of such outstanding shares have been validly issued and are fully paid and non-assessable with no
personal liability attaching to the ownership thereof. As of the date hereof, there are no outstanding options, warrants, subscriptions,
or other rights obligating of NXNV to issue any shares of its capital stock or other securities convertible into any shares of
its capital stock.

 

§ 4.3 Authorization. NXNV has the
necessary corporate power and authority to enter into this Agreement and this Agreement has been duly authorized by its board of
directors and shareholders. This Agreement is a legal, valid, and binding obligation of NXNV.

 

§ 4.4 No Violation. Neither the
execution and delivery of this Agreement by NXNV, the performance by NXNV of its obligations hereunder nor the consummation by
it of the transactions contemplated hereby will: (i) violate any provision of the Articles of Incorporation or Bylaws of NXNV;
(ii) constitute a default under or cause the acceleration of the maturity of any debt or obligation, which, individually or in
the aggregate with all other such debts and obligations, is material to NXNV, taken as a whole; or (iii) to the best knowledge
of NXNV, violate any statute or law or any judgment, decree, order, regulation, or rule of any court or governmental authority
to which NXNV is subject, which would have a material adverse effect on the financial condition, business, or operations of NXNV,
taken as a whole.

 

§ 4.5 Litigation. To the best of
the knowledge and belief of NXNV, there is no action, proceeding or investigation pending or threatened against or involving NXNV
or any properties or rights of NXNV, which, if determined adversely, could materially and adversely affect the financial condition,
business, or operations of NXNV, taken as a whole. NXNV is not in violation of any order, judgment, injunction or decree outstanding
against it the effect of which would be materially adverse to the financial condition, business, or operations of NXNV, taken as
a whole.

 

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§ 4.6 Financial Statements. NXNV
heretofore has delivered to NXDE true and complete copies of its balance sheet as of December 7, 2015 and a Performa balance sheet
as of January 2, 2016. Such financial statements of NXNV delivered to NXDE were prepared in accordance with generally accepted
accounting principles applied on a consistent basis and present fairly the financial position, and changes in financial position
of NXNV as of the dates and for the periods set forth herein above. As of the date of such financial statements, NXNV did not have
any liabilities or obligations (absolute, accrued, contingent or otherwise) material to NXNV, taken as a whole, which were not
reflected on such financial statements. Since the date of such financial statements, NXNV has not incurred any liabilities material
to NXNV, taken as a whole, except: (i) liabilities incurred in the ordinary course of business and consistent with past practices;
(ii) liabilities disclosed on such financial statements; and (iii) liabilities incurred in connection with this Merger or as otherwise
permitted by this Agreement.

 

§ 4.7 Title to Properties. NXNV
has good and marketable title to any and all of its material properties and assets (real, person and mixed, tangible and intangible)
including without limitation, all the properties and assets, which it purports to own as reflected on its financial statements
furnished to NXDE.

 

Covenants

 

§ 5.1 Conduct of Business Prior to
the Effective Time. Each of NXNV and NXDE agrees that prior to the Effective Time:

 

(a) each of their respective businesses shall
be conducted only in the ordinary course;

 

(b) except as required in connection with this
Merger, it shall not: (i) amend its Articles of Incorporation or Bylaws; (ii) change the number of authorized shares of its capital
stock; or (iii) declare, set aside, or pay any dividend or other distribution or payment in cash, stock, or property in respect
of the shares of its capital stock;

 

(c) it shall not: (i) issue, grant or sell
any shares or rights of any kind to acquire any shares of its capital stock; (ii) acquire any assets or enter into any other transaction,
other than in the ordinary course of business; (iii) dispose of, encumber or mortgage any assets or properties which are material
to it taken as a whole other than in the ordinary course of business; (iv) waive, release, grant or transfer any rights of value
or modify or change in any material respect any existing license, lease, contract or other document other than in the ordinary
course of business; or (v) enter into any contract, agreement, commitment or arrangement with respect to any of the foregoing;
and

 

(d) it shall use its best efforts to preserve
intact its business organization, to keep available the service of its present officers and key employees, and to preserve the
goodwill of those having business relationships with it.

 

§ 5.2 Compliance with Laws. Each
of NXNV and NXDE shall duly comply in all material respects with all laws applicable to it and its properties, operations, business
and assets.

 

§ 5.3 Access to Properties and Records.
Each of NXNV and NXDE shall, upon reasonable request, afford to the other's accountants, counsel and other authorized representatives,
full access during normal business hours throughout the period prior to the Effective Time to all of its properties, books, contracts,
commitments and records.

 

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§ 5.4 Further Actions. Subject
to the terms and conditions hereof, NXNV and NXDE each agree to use all reasonable efforts to take, or cause to be taken, all action
and to do, or cause to be done, all things necessary, proper or advisable to consummate and make effective the transactions contemplated
by this Agreement, including without limitation, using all reasonable efforts: (i) to obtain all necessary waivers, consents and
approvals, to give all notices and to effect all necessary registrations and filings; and (ii) to defend any lawsuits or other
legal proceedings, whether judicial or administrative and whether brought derivatively or on behalf of third parties challenging
this Agreement or the consummation of the transactions contemplated hereby.

 

Conditions Precedent

 

§ 6.1 Conditions to the Obligation
of NXDE to Effect this Merger. Each and every obligation of NXDE under this Agreement to be performed on or before the Effective
Time shall be subject to the fulfillment by NXNV of the following additional conditions:

 

(a) NXNV shall have performed in all material
respects its obligations under this Agreement required to be performed by it on or prior to the Effective Time pursuant to the
terms hereof;

 

(b) the representations and warranties of NXNV
contained in this Agreement shall be true and correct in all material respects at and as of the Effective Time as if made at and
as of such time, except as affected by the transactions contemplated hereby;

 

(c) there shall have been no material adverse
change in the business, assets, financial condition or results of operations of NXNV, taken as a whole, since the date of the financial
statements furnished to NXDE;

 

(d) NXNV shall have furnished such certificates
of its officers to evidence its compliance with the conditions set forth herein as may be reasonably requested by NXDE;

 

(e) the shareholders of NXDE shall have approved
the Merger; and

 

(f) NXNV shall have executed and delivered
to NXDE LLC that certain Royalty Agreement covering the NXDE Royalty in the form attached hereto as Exhibit D.

 

§ 6.2 Conditions to the Obligation
of NXNV to Effect this Merger. Each and every obligation of NXNV under this Agreement to be performed on or before the Effective
Time shall be subject to the fulfillment by NXNV of the following additional conditions:

 

(a) NXDE shall have performed in all material
respects its obligations under this Agreement required to be performed by it on or prior to the Effective Time pursuant to the
terms hereof;

 

(b) the representations and warranties of NXDE
contained in this Agreement shall be true and correct in all material respects at and as of the Effective Time as if made at and
as of such time, except as affected by the transactions contemplated hereby;

 

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(c) there shall have been no material adverse
change in the business, assets, financial condition or results of operations of NXDE taken as a whole since the date of the financial
statements furnished to NXNV, the conversion of debt to NXNV shares of Common Stock prior to or simultaneous to the Effective Time
notwithstanding;

 

(d) NXDE shall have furnished such certificates
of its officers to evidence its compliance with the conditions set forth herein as may be reasonably requested by NXNV.

 

(e) NXDE shall have delivered to NXNV all books
and records necessary to accomplish the transfer of all assets owned by NXDE prior to the merger, including without limitation
all accounting and intellectual property hard and electronic files.

 

(f) NXDE shall have terminated any and all
options, warrants, deferred compensation units, issued and outstanding immediately prior to the Effective Time, and any and all
other rights to equity of any kind or nature whatsoever of NXDE,

 

(g) at the Effective Time, Mark Bakes shall
convert any and all debt owed to him by NXDE to shares of NXNV’s Common Stock and Ralph Ballard and his affiliates shall
convert any and all debt, less the sum of $150,000, owed to him and his affiliates by NXDE to shares of NXNV’s Common Stock.
At the Effective Time, Ralph Ballard shall receive a promissory note in the amount of $150,000 payable to him or his affiliates
by NXNV on terms acceptable to both parties.

 

Termination

 

§ 7.1 Termination. This Agreement
may be terminated if and only if the NXNV and NXDE Shareholders fail to approve this Agreement.

 

§ 7.2 Effect of Termination. In
the event of the termination of this Agreement by either NXNV or NXDE, as provided above:

 

(a) this Agreement shall be void and of no
further effect, and there shall be no liability by reason of this Agreement or the termination thereof on the part of either NXNV
or NXDE, or on the part of their respective directors, officers, employees, agents or shareholders; and

 

(b) all information received by either party
hereto with respect to the business of the other party or its divisions, affiliates or associates (other than information which
is a matter of public knowledge or which has heretofore been or is hereafter published in any publication for public distribution
or filed as public information with any governmental authority) shall not at any time be used for the advantage of, or disclosed
to third parties for any reason whatsoever.

 

Miscellaneous

 

§ 8.1 Amendment. This Agreement
may be amended by the parties hereto by action taken by their respective board of directors at any time prior to the Effective
Time, but no such amendment shall (i) alter the amount or change the form of consideration into which shares of NXDE Stock are
to be converted as provided in 2.1 and 2.2 hereof, or (ii) alter or change any of the terms and conditions of this Agreement if
such alteration or change would adversely affect the holders of any class of capital stock of NXNV or NXDE. This Agreement may
not be amended except by an instrument in writing signed on behalf of each of the parties hereto.

 

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§ 8.2 Fees and Expenses. Except
as otherwise provided herein, the parties hereto shall bear their own costs and expenses incurred in connection herewith and with
the transactions contemplated hereby, whether the Effective Time occurs or this Agreement shall be terminated. NXNV and NXDE agree
to indemnify and hold the other harmless from any claim (together with costs and expenses, including attorneys fees, incurred in
connection with such claims) for compensation by any person, firm or corporation claiming to have been requested, authorized or
employed to act as lender, broker or agent in connection with the subject matter of this Agreement or negotiations leading thereto.

 

§ 8.3 Assignment. No party shall
assign this Agreement or any of its rights and obligations hereunder without the prior written consent of the other party.

 

§ 8.4 Successors and Assigns. This
Agreement shall be binding upon and inure to the benefit of the parties hereto, their heirs, legal representatives, successors
and permitted assigns.

 

§ 8.5 Notices. Any notice, demand
or request required or permitted to be given under any provision of this Agreement shall be in writing and delivered personally
or by registered or certified mail (return receipt requested, with postage prepaid) to the following address, or to such other
address as either party may request by notice in writing to the other party:

 

		(a)	If to NXNV:

 

Mr. Ron Conquest, COO

Nexeon MedSystems Inc

1708 Jaggie Fox Way

Lexington, KY 40511

480-203-9999

 

		(b)	If to NXDE:

 

Dr. Mark Bates, M.D., Director

C/O Ms. Amy J. Tawney, Esq

600 Quamer Street

Charleston, WV 25301

304-347-1123

 

§ 8.6 Entire Agreement. This Agreement
constitutes the entire agreement and understanding of the parties with respect to the subject matter hereof, superseding any and
all prior agreements, understandings, negotiations and discussions. No amendment, alteration, modification or waiver of this Agreement
shall be binding unless evidenced by an instrument in writing signed on behalf of each of the parties hereto.

 

§ 8.7 Construction. The captions
and headings of this Agreement are for convenience and reference only, and shall not control or affect the meaning or construction
of this Agreement. Use of the masculine gender shall also be deemed to refer to the feminine gender and neuter gender and the singular
to the plural unless the context clearly requires otherwise.

 

    	11

    	 

    

 

§ 8.8 Choice of Law. This Agreement
shall be construed, governed, and enforced in accordance with the laws of the State of Nevada.

 

§ 8.9 Severability. The invalidity
or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision hereof
and this Agreement shall be construed in all respects as if such invalid or unenforceable provision was omitted. The invalidity
or unenforceability of any provision of this Agreement to any person or circumstance shall not affect the validity or enforceability
of such provision as it may apply to any other persons or circumstances.

 

§ 8.10 Waiver. The failure in one
or more instances of a party to insist upon performance of any of the terms, conditions and covenants set forth in this Agreement,
or the failure of a party to exercise any right or privilege conferred by this Agreement, shall not be construed thereafter as
waiving their right to insist upon the performance of such terms, conditions and covenants or the right to exercise such rights
and privileges, which rights shall continue and remain in full force and effect as if no forbearance had occurred.

 

§ 8.11 Attorney Fees. In the event
it becomes necessary for either party to file a suit to enforce this Agreement or any provision contained herein, and either party
prevails in such action, then such party shall be entitled to recover, in addition to all other remedies or damages, reasonable
attorney fees and court costs incurred in such suit.

 

§ 8.12 Counterparts. This Agreement
may be executed in any number of counterparts, each of which shall be deemed an original instrument, but all of which together
will constitute for all purposes one and the same instrument.

 

§ 8.13 Construction. The Parties
have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof
shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement. Any reference
to any federal, state, local or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereby,
unless the context requires otherwise. The word “including” shall mean including without limitation.

 

In Witness Whereof, the parties hereto
have executed this Agreement as of the date first above written.

 

	  	 	
        NEXEON MEDSYSTEMS, INC., a Delaware corporation

	 	 	 
	Attest:	 	
        By:

         

        /s/ Mark Bates

	  	 	Dr. Mark Bates, M.D., CEO
	/s/	 	 
	Secretary	 	 

 

    	12

    	 

    

 

	  	 	NEXEON MEDSYSTEMS INC, a Nevada corporation
	  	 	 
	Attest:	 	
        By:

         

        /s/ William Rosellini

        

	  	 	William Rosellini, CEO
	/s/	 	 
	Secretary	 	 

 

	
         

 

 

 

    	13

    	 

    

 

EXHIBIT A

 

NEXEON
PATENT PORTFOLIO

NANOTUBE-REINFORCED
BALLOONS FOR DELIVERING PATENTS

	#	Patent/App #	Title
	1	US 8187221	THERAPEUTIC AGENTS WITHIN OR BEYOND THE WALL OF BLOOD VESSELS,  AND METHODS  OF MAKING  AND USING SAME
	2	US 13/455,919	THERAPEUTIC AGENTS WITHIN OR BEYOND THE WALL OF BLOOD VESSELS,  AND METHODS  OF MAKING  AND USING SAME
	3	US 13/455,973	THERAPEUTIC AGENTS WITHIN OR BEYOND THE WALL OF BLOOD VESSELS,  AND METHODS  OF MAKING  AND USING SAME
	4	AU2009269104	THERAPEUTIC AGENTS WITHIN OR BEYOND THE WALL OF BLOOD VESSELS,  AND METHODS  OF MAKING  AND USING SAME
	5	CA2730273A1	THERAPEUTIC AGENTS WITHIN OR BEYOND THE WALL OF BLOOD VESSELS,  AND METHODS  OF MAKING  AND USING SAME
	6	CN102176932 A	THERAPEUTIC AGENTS WITHIN OR BEYOND THE WALL OF BLOOD VESSELS,  AND METHODS  OF MAKING  AND USING SAME
	7	EP2313121 A2	THERAPEUTIC AGENTS WITHIN OR BEYOND THE WALL OF BLOOD VESSELS,  AND METHODS  OF MAKING  AND USING SAME
	8	JP2011527601 A	THERAPEUTIC AGENTS WITHIN OR BEYOND THE WALL OF BLOOD VESSELS,  AND METHODS  OF MAKING  AND USING SAME
	9	JP5481479 B2	THERAPEUTIC AGENTS WITHIN OR BEYOND THE WALL OF BLOOD VESSELS,  AND METHODS  OF MAKING  AND USING SAME
	10	WO2010005575	THERAPEUTIC AGENTS WITHIN OR BEYOND THE WALL OF BLOOD VESSELS,  AND METHODS  OF MAKING  AND USING SAME

 

IRIS FILTER-SHEATH CATHETER SYSTEM FOR
EMBOLISM PROTECTION PATENTS

 

	11	US 8257384	INTERVENTIONAL CATHETER FOR RETROGRADE USE HAVING EMBOLIC PROTECTION CAPABILITY AND METHODS OF USE
	12	US 7837702	INTERVENTIONAL CATHETER FOR RETROGRADE USE HAVING EMBOLIC PROTECTION CAPABILITY AND METHODS OF USE
	13	US 20130253570	APPARATUS AND METHODS FOR FILTERING EMBOLI DURING PERCUTANEOUS AORTIC VALVE PROCEDURES AND REPAIR PROCEDURES WITH FILTRATION SYSTEM COUPLED IN-SITU TO DISTAL END OF SHEATH
	14	US 20130253571	APPARATUS AND METHODS FOR FILTERING EMBOLI DURING PERCUTANEOUS AORTIC VALVE PROCEDURES AND REPAIR PROCEDURES WITH FILTRATION SYSTEM COUPLED IN-SITU TO DISTAL END OF SHEATH

 

    	14

    	 

    

 

EXHIBIT D

 

ROYALTY AGREEMENT

 

This ROYALTY
Agreement (this “Agreement”) is entered into as of February __, 2016 by and between Nexeon Shareholder
Royalty Group LLC, a West Virginia limited liability company, (“NSRG”) and Nexeon MedSystems, Inc., a Nevada corporation
(the “Company”). NSRG and the Company are collectively referred to herein as the “Parties”, and each individually,
a “Party”.

 

WHEREAS, The Company
and Nexeon MedSystems, Inc., a Delaware corporation (“NXDE”) have entered into a Merger Agreement dated February 8th,
2016, whereby NXDE will merge with and into the Company and on the Effective Date of said Merger, the preferred shares of NXDE
will be converted into the right to receive shares of common stock of the Company and a royalty equal to Three Percent (3%) of
Net Product Sales received by the Company, its affiliates and licensees after the merger and derived from the commercialization
of patents or other intellectual property owned by NXDE prior to the merger (the “Royalty”) ;

 

WHEREAS, the shareholders
of NXDE transferred their interest in the Royalty to NSRG; and

 

WHEREAS, This Agreement
sets forth the terms and conditions for the payment of the Royalty.

 

Now, therefore,
in consideration of the premises and the mutual promises herein made, and in consideration of the representations, warranties and
covenants herein contained, the Parties hereby agree as follows.

 

Section
1. Definitions.

 

“Adverse
Consequences” means all actions, suits, proceedings, hearings, investigations, charges, complaints, claims, demands,
injunctions, judgments, orders, decrees, rulings, damages, dues, penalties, fines, costs, reasonable amounts paid in settlement,
liabilities, obligations, taxes, liens, losses, expenses and fees, including court costs and reasonable attorneys’ fees and
expenses.

 

“Affiliate”
has the meaning set forth in Rule 12b-2 of the regulations promulgated under the Securities Exchange Act of 1934, as amended.

 

“Cash”
means cash and cash equivalents (including marketable securities and short-term investments) calculated in accordance with GAAP.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Confidential
Information” means any information concerning the business and affairs of the Company that is not already generally available
to the public.

 

“Contract
Quarter” means the three-month periods ending on March 31, June 30, September 30 and December 31, or any stub period
thereof at the commencement of the Agreement.

 

    	1

    	 

    

 

“Contract
Year” means the 12-month periods ending on December 31st, or any stub period thereof at the commencement of
the Agreement.

 

“GAAP”
means United States generally accepted accounting principles as in effect from time to time, consistently applied.

 

“Governmental
Authority” means any government, state, commonwealth or any subdivision thereof, whether domestic, foreign or multinational,
or any agency, authority, bureau, commission, department or similar body or instrumentality thereof, or any governmental court
or tribunal.

 

“Gross Consideration”
means all cash and non-cash consideration (e.g., securities).

 

“Material
Adverse Effect” or “Material Adverse Change” means any effect or change that would be materially adverse
to the business of the Company or to the ability of any Party to consummate timely the transactions contemplated hereby; provided
that none of the following shall be deemed to constitute, and none of the following shall be taken into account in determining
whether there has been, a Material Adverse Effect or Material Adverse Change: (a) any adverse change, event, development or effect
arising from or relating to (1) general business or economic conditions, including such conditions related to the business of the
Company, (2) national or international political or social conditions, including the engagement by the United States in hostilities,
whether or not pursuant to the declaration of a national emergency or war, or the occurrence of any military or terrorist attack
upon the United States, or any of its territories, possessions or diplomatic or consular offices or upon any military installation,
equipment or personnel of the United States, (3) financial, banking or securities markets (including any disruption thereof and
any decline in the price of any security or any market index), (4) changes in GAAP, (5) changes in laws, rules, regulations, orders
or other binding directives issued by any Governmental Authority or (6) the taking of any action contemplated by this Agreement
and the other agreements contemplated hereby, (b) any existing event, occurrence or circumstance with respect to which the Parties
have actual knowledge as of the date hereof, and (c) any adverse change in or effect on the business of the Company that is cured
by before the earlier of (i) the Closing Date and (ii) the date on which this Agreement is terminated pursuant to Section 9.

 

“Net
Product Sales” means the Gross Consideration from the Sale of Products less the following items directly attributable
to the Sale of such Products and Collaboration Products that are specifically identified on the invoice for such Sale and borne
by the Company, its Affiliates, or licensees as the seller: (a) discounts and rebates actually granted; (b) sales, value added,
use and other taxes and government charges actually paid, excluding income taxes; (c) import and export duties actually paid; (d)
freight, transport, packing and transit insurance charges actually paid or allowed; and (e) other amounts actually refunded, allowed
or credited due to rejections or returns, but not exceeding the original invoiced amount. Additionally, if the Company, its Affiliates
or licensees use a Product for its own internal purposes or otherwise in a situation that does not involve a Sale for which a royalty
is paid under Section 2(b), then Net Product Sales shall also include an amount equal to the customary sale price charged to a
third party for the same Product, except for a reasonable quantity used internally solely for testing or quality control purposes,
marketing or demonstration purposes, or seeking governmental approval (e.g., U.S. Food and Drug Administration clinical trial).
If there is no customary sale price, then the Net Product Sales shall be an amount equal to the fair market value.

 

    	2

    	 

    

 

“Ordinary
Course of Business” means the ordinary course of business consistent with past custom and practice (including with respect
to quantity and frequency).

 

“Patents”
means (a) the patents and patent applications listed in Exhibit A, all patents resulting from the patent applications listed
in Exhibit A and all continuations, continuations-in-part, divisions, extensions, substitutions, re-issues, re-examinations
and renewals of any of the foregoing, and (b) any patents issuing from any applications filed after the Closing Date and that claim
priority from any of the patents or patent applications identified in subsection (a) or from which any of the patents or patent
applications identified in subsection (a) claim priority.

 

“Person”
means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust,
a joint venture, an unincorporated organization, any other business entity or any Governmental Authority.

 

“Products”
means all products developed by the Company as a direct result of the use of one or more of the Patents.

 

“Quarterly
Payment Deadline” means the day that is 30 days after the last day of any particular Contract Quarter.

 

“Sell,
Sale or Sold” means any transfer
or other disposition of Products for which consideration is received by the Company, its Affiliates or licensees. A Sale of Products
will be deemed completed at the time the Company or its Affiliate or its licensee receives such consideration.

 

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

 

“Subsidiary”
means, with respect to any Person, any corporation, limited liability company, partnership, association or other business entity
of which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence
of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly
or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof or (ii) if a limited
liability company, partnership, association or other business entity (other than a corporation), a majority of the partnership
or other similar ownership interests thereof is at the time owned or controlled, directly or indirectly, by that Person or one
or more Subsidiaries of that Person or a combination thereof and for this purpose, a Person or Persons own a majority ownership
interest in such a business entity (other than a corporation) if such Person or Persons shall be allocated a majority of such business
entity’s gains or losses or shall be or control any managing director or general partner of such business entity (other than
a corporation). The term “Subsidiary” shall include all Subsidiaries of such Subsidiary.

 

Section
2. The Royalty.

 

(a)
Basic Transaction. On and subject to the terms and conditions of this Agreement, the Company hereby grants to NSRG
a royalty (the “Royalty”) attributed to the Net Product Sales by the Company pursuant to the terms and conditions provided
for in this Agreement.

 

    	3

    	 

    

 

(b)
Royalty Payments. Buyer agrees to pay to NSRG a running royalty equal to Three Percent (3.0%) of Net Product Sales
for each Product sold in each Contract Quarter, payable on or before the Quarterly Payment Deadline for such Contract Quarter.

 

(c)
Quarterly Payment and Milestone Reports. On or before each Quarterly Payment Deadline, the Company will deliver to
NSRG’s Representative a true and accurate report, certified by an officer of the Company, giving such particulars of the
business conducted by the Company, its Affiliates and its licensees and licensees (including copies of reports provided by licensees
and licensees and Affiliates of the Company) during the preceding Contract Quarter as necessary for NSRG’s Representative
to account for the Company’s payments hereunder, even if no payments are due (“Quarterly Report”). The
Quarterly Report shall include:

 

(i)
The identification of each Product for which a Royalty payment has become payable under this Agreement and the period covered
by the report;

 

(ii)
The name of any Affiliates and licensees or licensees whose activities are also covered by the report;

 

(iii)
Net Product Sales segregated on a product-by-product basis, and a country-by-country basis, or an affirmative statement
that no Sales were made. The report shall also itemize the permitted deductions from the Gross Consideration used to arrive at
the resulting Net Product Sales, on a product-by-product and country-by-country basis;

 

(iv)
The applicable royalty rate;

 

(v)
If any consideration was received in currencies other than U.S. dollars, the report shall describe the currency exchange
calculations; and

 

(vi)
Any changes in accounting methodologies used to account for and calculate the items included
in the report since the previous report.

 

(d)
Closing. The closing of this Agreement (the “Closing”) shall take place simultaneously with the
Effective Time of the Merger by and between the Company and NXDE.

 

Section
3. Representations and Warranties Concerning Transaction.

 

(a)
Company’s Representations and Warranties. The Company hereby represents and warrants to NSRG that the statements
contained in this Section 3(a) are true, correct, and complete as of the date of this Agreement and will be correct and complete
as of the Closing Date (as though made then and as though the Closing Date were substituted for the date of this Agreement throughout
this Section 3(a)) with respect to itself.

 

    	4

    	 

    

 

(i)
Organization of Company. The Company is duly organized, validly existing and in good standing under the laws of the
jurisdiction of the State of Nevada.

 

(ii)
Authorization of Transaction. The Company has full power and authority (including full entity power and authority)
to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement constitutes the valid and legally
binding obligation of The Company, enforceable in accordance with its terms and conditions. The Company does not need to give any
notice to, make any filing with or obtain any authorization, consent or approval of any Governmental Authority in order to consummate
the transactions contemplated by this Agreement. The execution, delivery and performance of this Agreement and all other agreements
contemplated hereby have been duly authorized by the Company.

 

(iii)
Non-contravention. Neither the execution and delivery of this Agreement, nor the consummation of the transactions
contemplated hereby, will (A) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling,
charge or other restriction of any Governmental Authority to which the Company is subject or any provision of its governing documents,
or (B) conflict with, result in a breach of, constitute a default under, result in the acceleration of, the right to accelerate,
terminate, modify, cancel or require any notice under any agreement, contract, lease, license, instrument or other arrangement
to which the Company is a party or by which it is bound or to which any of its assets is subject.

 

(iv)
Brokers’ Fees. The Company has no liability or obligation to pay any fees or commissions to any broker, finder
or agent with respect to the transactions contemplated by this Agreement.

 

(b)
NSRG’s Representations and Warranties. NSRG hereby represents and warrants to the Company that the statements
contained in this Section 3(b) are true, correct, and complete as of the date of this Agreement and will be correct and complete
as of the Closing Date (as though made then and as though the Closing Date were substituted for the date of this Agreement throughout
this Section 3(b)).

 

(i)
Organization of NSRG. NSRG is a limited liability company duly organized, validly existing and in good standing under
the laws of the jurisdiction of its formation.

 

(ii)
Authorization of Transaction. NSRG has the full power and authority (including full corporate or other entity power
and authority) to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement constitutes the valid
and legally binding obligation of NSRG, enforceable in accordance with its terms and conditions. NSRG need not give any notice
to, make any filing with or obtain any authorization, consent or approval of any Governmental Authority in order to consummate
the transactions contemplated by this Agreement. The execution, delivery and performance of this Agreement and all other agreements
contemplated hereby have been duly authorized by NSRG.

 

(iii)
Non-contravention. Neither the execution and delivery of this Agreement, nor the consummation of the transactions
contemplated hereby, will (A) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling,
charge or other restriction of any Governmental Authority to which NSRG is subject or any provision of its governing documents
or (B) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the
right to accelerate, terminate, modify or cancel, or require any notice under any agreement, contract, lease, license, instrument
or other arrangement to which NSRG is a party or by which it is bound or to which any of its assets is subject.

 

    	5

    	 

    

 

(iv)
Brokers’ Fees. NSRG has no liability or obligation to pay any fees or commissions to any broker, finder or
agent with respect to the transactions contemplated by this Agreement.

 

Section
4. Pre-Closing Covenants. The Parties agree as follows with respect to the period between the execution of this
Agreement and the Closing.

 

(a)
General. Each of the Parties will use its reasonable best efforts to take all actions and to do all things necessary
in order to consummate and make effective the transactions contemplated by this Agreement.

 

(b)
Notices and Consents. The parties will give, any notices to third parties, including any Governmental Authority,
and shall use their reasonable best efforts to obtain any third party consents.

 

Section
5. Post-Closing Covenants. The Parties agree as follows with respect to the period following the Closing.

 

(a)
General. In case at any time after the Closing any further action is necessary or desirable to carry out the purposes
of this Agreement, each of the Parties will take such further action (including the execution and delivery of such further instruments
and documents) as any other Party reasonably may request, all at the sole cost and expense of the requesting Party.

 

(b)
Litigation Support. In the event and for so long as any Party actively is contesting or defending against any action,
suit, proceeding, hearing, investigation, charge, complaint, claim or demand in connection with (i) any transaction contemplated
under this Agreement or (ii) any fact, situation, circumstance, status, condition, activity, practice, plan, occurrence, event,
incident, action, failure to act or transaction on or prior to the Closing Date involving the Company, each of the other Parties
shall cooperate with him, her or it and his, her or its counsel in the defense or contest, make available his, her or its personnel,
and provide such testimony and access to his, her or its books and records as shall be necessary in connection with the defense
or contest, all at the sole cost and expense of the contesting or defending Party

 

(c)
Transition. NSRG will not take any action that is designed or intended to have the effect of discouraging any licensor,
customer, supplier or other business associate of the Company from maintaining the same business relationships with the Company
after the Closing as it maintained with the Company prior to the Closing.

 

(d)
Diligent Commercialization. The Company by itself or through its Affiliates will use diligent efforts to make Products
commercially available. Without limiting the foregoing, the Company will maintain a bona fide, funded, ongoing and active research,
development, manufacturing, regulatory, marketing or sales program (all as commercially reasonable) to make Products available
to the public as soon as commercially practicable.

 

    	6

    	 

    

 

(e)
Withdrawal from Paying Patent Costs. Following the Closing Date, the Company shall pay for all future expenses for
the prosecution and maintenance of the Patents. If at any time Buyer and/or Company wishes to cease paying for any costs for a
particular Patent or for patent prosecution in a particular jurisdiction, the Company must give NSRG’s Representative at
least ninety (90) days prior written notice and the Company will continue to be obligated to pay for the patent costs, which reasonably
accrue during said notice period. Thereafter, NSRG shall have the right to require the Company to transfer such Patent to NSRG
for no additional consideration.

 

(f)
Records.

 

(i)
Maintenance of Records. For a period of three (3) years after the Contract Quarter to which the records pertain,
the Company agrees that it and its Affiliates and licensees will each keep complete and accurate records of their Sales and Net
Product Sales in sufficient detail to enable such payments to be determined and audited.

 

(ii)
Auditing. The Company and its Affiliates will permit NSRG’s Representative, at NSRG Representative’s
sole expense, to periodically examine books, ledgers, and records during regular business hours, at the Company’s or its
Affiliate’s or its licensee’s place of business, on at least thirty (30) days advance written notice, to the extent
necessary to verify any payment or report required under the Agreement. For each license, the Company shall obtain such audit rights
for NSRG’s Representative or itself. If the Company obtains such audit rights for itself, it will promptly conduct an audit
of the licensee’s records upon NSRG Representative’s request, and the Company will furnish to NSRG’s Representative
a copy of the findings from such audit. No more than one audit of the Company, each Affiliate, and each licensee shall be conducted
under this Section 6(f) (ii) in any calendar year. If any amounts due NSRG have been underpaid, then the Company shall immediately
pay NSRG’s Representative the amount of such underpayment plus accrued interest equal to 1.0% per month. If the amount of
underpayment is equal to or greater than five percent (5%) of the total amount due for the records so examined, the Company will
pay the cost of such audit. Such audits may, at NSRG Representative’s sole discretion, consist of a self-audit conducted
by the Company at the Company’s expense and certified in writing by an authorized officer of the Company. All information
examined pursuant to this Section 6(f) (ii) shall be deemed to be the Confidential Information of the Company.

 

(g)
Abandonment. If the Company wishes to abandon any Patent, it shall provide NSRG’s Representative ninety (90)
days prior written notice of the desired abandonment. The Company shall not abandon any such Patent except upon the prior written
consent of NSRG’s Representative. On NSRG Representative’s request, which may be provided at any time after the notice
of desired abandonment, the Company shall assign to NSRG any such Patent the Company wishes to abandon. Effective as of the date
of the assignment, such Patent shall no longer be subject to a Royalty payment to NSRG unless the Company retains any Products
developed from such abandoned Patent prior to abandonment.

 

    	7

    	 

    

 

(h)
Failure to Pay the Royalty and Other Events of Default. Upon the occurrence of any of the following events (a “Termination
Event”), NSRG shall have the right but not the obligation, to require the Company to transfer one or more of the Patents
and/or Products, as applicable, to NSRG for the consideration set forth below:

 

(i)
Failure of the Company to pay the Royalty to NSRG within sixty (60) days of the Quarterly Payment Deadline;

 

(ii)
the Company fails to prosecute or maintain the Patents

 

(iii)
the Company becomes insolvent or admits inability to pay its debts generally as they become due;

 

(iv)
the Company becomes subject, voluntarily or involuntarily, to any proceeding under any domestic or foreign bankruptcy or
insolvency law, which is not fully stayed within ninety (90) days or is not dismissed or vacated within ninety (90) days after
filing;

 

(v)
the Company is dissolved or liquidated or takes any corporate action for such purpose;

 

(vi)
the Company makes a general assignment for the benefit of creditors; or

 

(vii)
the Company has a receiver, trustee, custodian or similar agent appointed by order of any court of competent jurisdiction
to take charge of or sell any material portion of its property or business.

 

Upon the occurrence
of a Termination Event set forth in Section 5(h)(iii) through (vii), NSRG shall have the right, but not the obligation, to require
the Company to transfer all of the Patents to NSRG for consideration equal to the development costs expended by Rosellini Scientific
LLC or its Affiliates under the Joint Venture Agreement and any other development costs expended by the Company after the Effective
Date of the Merger for the development of the Patents and Products (excluding any non-dilutive grant funding). Upon the occurrence
of a Termination Event set forth in Section (h)(i) and (ii), NSRG shall have the right, but not the obligation, to require the
Company to transfer the Patent or Patents to which the Royalty payments have not been paid or the Patent or Patents that the Company
fails to prosecute and maintain for no additional consideration.

 

Section 6.
Miscellaneous.

 

(i)
Press Releases and Public Announcements. No Party shall issue any press release or make any public announcement relating
to the subject matter of this Agreement prior to the Closing without the prior written approval of the Company and NSRG’s
Representative; provided, however, that any Party may make any public disclosure it believes in good faith is required by
applicable law or any listing or trading agreement concerning its publicly traded securities (in which case the disclosing Party
will use its reasonable best efforts to advise the other Parties prior to making the disclosure).

 

    	8

    	 

    

 

(j)
No Third-Party Beneficiaries. This Agreement shall not confer any rights or remedies upon any Person other than the
Parties and their respective successors and permitted assigns.

 

(k)
Entire Agreement. This Agreement (including the documents referred to herein) constitutes the entire agreement among
the Parties and supersedes any prior understandings, agreements, or representations by or among the Parties, written or oral, to
the extent they relate in any way to the subject matter hereof.

 

(l)
Succession and Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties named herein
and their respective successors and permitted assigns. No Party may assign either this Agreement or any of its rights, interests
or obligations hereunder without the prior written approval of Buyer and Seller Representative; provided, however,
that Buyer may (i) assign any or all of its rights and interests hereunder to one or more of its Affiliates and (ii) designate
one or more of its Affiliates to perform its obligations hereunder (in any or all of which cases Buyer nonetheless shall remain
responsible for the performance of all of its obligations hereunder).

 

(m)
Counterparts. This Agreement may be executed in one or more counterparts (including by means of facsimile), each
of which shall be deemed an original but all of which together will constitute one and the same instrument.

 

(n)
Headings. The section headings contained in this Agreement are inserted for convenience only and shall not affect
in any way the meaning or interpretation of this Agreement.

 

(o)
Notices. All notices, requests, demands, claims and other communications hereunder shall be in writing. Any notice,
request, demand, claim or other communication hereunder shall be deemed duly given (i) when delivered personally to the recipient,
(ii) one business day after being sent to the recipient by reputable overnight courier service (charges prepaid), (iii) one business
day after being sent to the recipient by facsimile transmission or electronic mail or (iv) four business days after being mailed
to the recipient by certified or registered mail, return receipt requested and postage prepaid, and addressed to the intended recipient
as set forth below:

 

If to NSRG Representative:

 

Mark C. Bates, M.D.

526 Camino de Orchidia

Encinitas, California
92024

 

With a copy that shall not constitute
notice to:

 

Bowles Rice LLP600 Quarrier Street

Charleston, WV 25301

Attention: Amy Tawney

Facsimile: (304) 343-3058

Email: atawney@bowlesrice.com

 

    	9

    	 

    

 

If to the Company:

 

Ron Conquest, COO

Nexeon MedSystems Inc

1708 Jaggie Fox Way

Lexington, Kentucky,
40511

 

With a copy that
shall not constitute notice to:

 

Arthur E. Fillmore,
II, JD

AEGIS Professional
Services

1712 Main
Street, Suite 340

Kansas City,
MO 64108

(816) 929-8623
(direct)

(816) 582-1719
(cell)

afillmore@aegisps.com

 

Any Party may change
the address to which notices, requests, demands, claims, and other communications hereunder are to be delivered by giving the other
Parties notice in the manner herein set forth.

 

(p)
Governing Law. This Agreement shall be governed by and construed in accordance with the domestic laws of the State
of Nevada without giving effect to any choice or conflict of law provision or rule (whether of the State of Nevada or
any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Nevada.

 

(q)
Amendments and Waivers. No amendment of any provision of this Agreement shall be valid unless the same shall be in
writing and signed by the Parties hereto. No waiver by any Party of any provision of this Agreement or any default, misrepresentation
or breach of warranty or covenant hereunder, whether intentional or not, shall be valid unless the same shall be in writing and
signed by the Party making such waiver, nor shall such waiver be deemed to extend to any prior or subsequent default, misrepresentation
or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.

 

(r)
Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction
shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability
of the offending term or provision in any other situation or in any other jurisdiction.

 

(s)
Expenses. Each Party hereto will bear its own costs and expenses (including legal fees and expenses) incurred in
connection with this Agreement and the transactions contemplated hereby. Without limiting the generality of the foregoing, all
transfer, documentary, sales, use, stamp, registration and other such taxes, and all conveyance fees, recording charges and other
fees and charges (including any penalties and interest) incurred in connection with the consummation of the transactions contemplated
by this Agreement shall be paid by the Company when due.

 

    	10

    	 

    

 

(t)
Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event
an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties
and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions
of this Agreement. Any reference to any federal, state, local or foreign statute or law shall be deemed also to refer to all rules
and regulations promulgated there under, unless the context requires otherwise. The word “including” shall mean including
without limitation.

 

(u)
NSRG Representative.

 

(i)
NSRG hereby irrevocably appoints Mark C. Bates, M.D. (“NSRG Representative”) to act with respect to all
matters relating to this Agreement, including, but not limited to, the consideration, administration, and certification of any
matters arising out of any communications with the Company, and any amendment to this Agreement and generally the performance of
all acts expressly required or permitted to be performed by the NSRG Representative pursuant hereto.

 

(ii)
The Company shall have the right to deal exclusively with the NSRG Representative with respect to all matters contemplated
and addressed by this Agreement concerning NSRG, and the Company shall not have any liability to NSRG for any acts or omissions
of the NSRG Representative, or any acts or omissions of the Company at the direction of the NSRG Representative.

 

(iii)
The NSRG Representative will have no liability to NSRG with respect to actions taken or omitted to be taken in his capacity
as NSRG Representative, except with respect to any liability resulting solely from NSRG Representative’s gross negligence
or willful misconduct. NSRG further agrees to hold the NSRG Representative harmless from and indemnify NSRG Representative for
any loss, damage, liability and expense incurred or threatened to be incurred for actions taken or omitted to be taken in his capacity
as NSRG Representative, except to the extent such result solely from the gross negligence or willful misconduct of the NSRG Representative.

 

(iv)
In the event that Mark C. Bates, M.D. is no longer willing to serve as the NSRG Representative, the Manager of NSRG shall
designate his successor and notify the Company in writing.

 

IN WITNESS WHEREOF,
the Parties hereto have executed this Agreement as of the date first above written.

 

	 	The Company:
	 	 
		NEXEON MEDSYSTEMS INC
	 	 	 
		 	 
		By:	
        

		 	William Rosellini, CEO

 

	
         

 

    	11

    	 

    

 

	  	Nexeon Shareholders Royalty Group LLC:

	 	 
	 	 	 
		By:	
        

		 	Mark Bates, Manager
		 	 
		 	 

 

    	12

    	 

    

 

Exhibit A

 

List of Patents

 

	TITLE:
                                         APPARATUS FOR THE DELIVERY OF DRUGS OR GENE THERAPY INTO A PATIENT’S VASCULATURE
                                         AND METHODS OF USE

         

        INVENTORS:
        BATES, Mark C.

         

	COUNTRY	Docket
    No.	Serial
    No.	Filing
    Date	Patent
    No./ Date	Publication
    No./Date	Status	Foreign
    Assoc. Information
	US	104559-0201	09/648,257	08/25/00	6,740,331
    (05/25/04)	 	Issued

        ·   
        MF Due: 11/25/15
	 
	PCT	104559-0210	PCT/US01/041857	08/20/01	 	WO
    2002/015962 A3 (2/28/02)	Completed	 
	EP	104559-0230	01
    96 4644.7	08/20/01	 	EP1381411

        01/21/2004
	·   
                                         Awaiting Examination

        ·   
        Annuity Due 8/31/13
	Vossius
                                         & Partner

        YRef.:
        H1948 EP

        T: +49-(0)89-413
        04-0

        F: +49-(0)89-413-04-111

        info@vossiusandpartner.com

	US	104559-0202	10/822,037	04/08/04	7,648,495
    (01/19/10)	US-2004-0193137
                                         A1

        (9/30/04)
	Issued

        ·   
        MF Due: 7/19/17 and 7/19/21
	 

 

 

    	1

    	 

    

 

 

	TITLE:
                                         IMPLANTABLE DEVICE FOR TREATING DISEASE STATES AND METHODS OF USING SAME

         

        INVENTORS: BATES, Mark C.

         

	COUNTRY	Docket
    No.	Serial
    No.	Filing
    Date	Patent
    No./ Date	Publication
    No./Date	Status	Foreign
    Assoc. Information
	US	104559-0301	10/864,936	06/09/04	7,651,696
    (01/26/10)	US-2005-0064009
    A1 (3/24/05)	Issued

        ·   
        MF Due: 7/26/13, 7/26/17 and 7/26/21
	 
	PCT	104559-0310	PCT/US05/019934	06/07/05	 	WO
    2005/123044 A2 (12/29/05)	Completed	 
	EP	104559-0330	05757409.7	12/14/06	 	1761204
    (3/14/07)	·   
    Awaiting Examination	Vossius
                                         & Partner

        YRef.: M3322 EP

        T: +49-(0)89-413 04-0

        F: +49-(0)89-413-04-111

        info@vossiusandpartner.com

	JP	104559-0340	2007-527641	12/08/06	5097546
    (9/28/12)	WO
    2002/15962 A2 (2/28/02)	·   
    Annuity due 9/28/15	Shusaku
                                         Yamamoto

        YRef.: F1-06M22C81

        T.: +81-6-6949-3910

        F: +81-6-6949-3915

        shupatnt@shupat.gr.jp

 

    	2

    	 

    

 

 

	TITLE:
                                         INTERVENTIONAL CATHETER FOR RETROGRADE USE HAVING EMBOLIC PROTECTION CAPABILITY AND METHODS
                                         OF USE 

         

        INVENTOR(S): BATES, Mark C.

         

	COUNTRY	Docket
    No.	Serial
    No.	Filing
    Date	Patent
    No./ Date	Publication
    No./Date	Status	Foreign
    Assoc. Information
	US	104559-0601	11/315,463	12/21/05	7,837,702
    (11/23/10)	US-2007-0142858-A1
    (6/21/07)	Issued

        ·   
        MF Due: 5/23/14, 5/23/18 and 5/23/22
	 
	US	104559-0602	12/945,729	11/12/10	8,257,384
    (09/04/12)	US-2011-0098739-A1
    (4/28/11)	Issued

        ·      
        MF due 3/4/16

	Broadening Reissue Due 9/4/14

	 
	US	104559-0603	13/584,517	08/13/12	 	US-2012-0310272-A1
    (12/6/12)	Pending

	Awaiting 1st OA

	 
	PCT	104559-0610	PCT/US06/048921	12/20/06	 	WO
    2007/075959 (7/5/07)	Completed	 
	EP	104559-0630	EP
    06 847 981.5	12/20/06	 	EP1968687
    (9/17/2008)	Pending

        ·   
        Awaiting

        examiner action

        ·   
        Awaiting issuance of Suppl EP search report

        ·   
        Annuity due 12/31/13
	JD Munich

        Y/Ref No.: J101901PCEP

        T: 49 89 206042-243

        F: 49 89 206042-293

    	3

    	 

    

 

 

	TITLE:
                                         METHODS AND APPARATUS FOR TREATING AN INJURED NERVE PATHWAY

         

        INVENTOR(S): BATES, Mark C.

         

	COUNTRY	Docket
    No.	Serial
    No.	Filing
    Date	Patent
    No./ Date	Publication
    No./Date	Status	Foreign
    Assoc. Information
	US	104559-0701	10/977,593	10/29/04	7,842,304
    (11/30/10)	2006-0093641-A1
    (5/4/06)	Issued

        ·   
        MF Due: 5/30/14, 5/30/18 and 5/30/22
	 
	US	104559-0702	12/950,769	11/19/10	 	2011-0066169-A1
    (3/17/11)	Pending

        ·   
        Resp OA filed 6/6/13

        ·   
        Awaiting

        further Examiner action
	 
	PCT	104559-0710	PCT/US05/038876	10/26/05	 	WO
    2006/050063 (12/21/07)	Expired	 

 

 

    	4

    	 

    

 

 

	TITLE:
                                         APPARATUS AND METHODS FOR RENAL STENTING

         

        INVENTOR(S): BATES, Mark C.

         

	COUNTRY	Docket
    No.	Serial
    No.	Filing
    Date	Patent
    No./ Date	Publication
    No./Date	Status	Foreign
    Assoc. Information
	US	104559-0901	11/125,448	05/09/05	 	2006-0253186-A1
    (11/9/06)	Pending

        ·   
        RCE filed 7/17/13

        ·   
        Awaiting further Action
	 
	PCT	104559-0910	PCT/US06/017986	05/09/06	 	WO
    2006/122152 (11/16/2006)	Completed	 
	AU	104559-0915	2006244070	05/09/06	2006244070
    (03/31/2012)	 	Granted	Davies
                                         Collision Cave

        Y/Ref.: 30434803/RSH

        Tele: +61 3 9254 2777

        Fax: +61 3 9254 2770

	JP	104559-0940	2008-511289	05/09/06	4990887
    (05/11/2012)	 	Granted	K.
                                         Yoshida & Assoc.

        Y/Ref.: P19975

        Tele: +81-3-3508-9866

        Fax: +81-3-3595-0076

 

 

	TITLE:
                                         APPARATUS AND METHODS FOR RENAL STENTING

         

        INVENTOR(S): BATES, Mark C.

         

	EP	104559-0930	06770151.6	05/09/06	 	1885285
    (2/13/08)	Pending

        ·   
        Awaiting Examiner Action
	TBK
                                         Patent

        Y/Ref.: EP 53495

        Tele: +49 (0)89 544690

        Fax: +49(0)89 54469290

        postoffice@tbk-patent.de

 

    	5

    	 

    

 

 

	TITLE:
                                         RADIOPAQUE-BALLOON MICROCATHETER AND METHODS OF MANUFACTURE

         

        INVENTOR(S): BATES, Mark C.

         

	COUNTRY	Docket
    No.	Serial
    No.	Filing
    Date	Patent
    No./ Date	Publication
    No./Date	Status	Foreign
    Assoc. Information
	US	104559-1001	11/267,226	11/03/05	 	2007-0100279
    A1 (5/3/07)	Abandoned

        3/28/12
	 
	PCT	104559-1010	PCT/US06/042804	11/01/06	 	WO
    2007/056058 (10/4/07)	Completed	 
	EP	104559-1030	06836811.7	11/01/06	 	EP1948289
    (07/30/2008)	Abandoned	JD
                                         Munich

        Y/Ref.: J101827PCEP

        T: 49 89 206042-243

        F: 49 89 206042-293

	JP	104559-1040	2008-539025	11/01/06	 	 	·   
    Awaiting Examiner Action	Orion
                                         IP

        Y/Ref.: 0171160001

        T: 81 42 753 9038

        F: 81 42 759 7393

	CN	104559-1025	200680050295.7	11/01/06	 	 	Pending

        ·   
        Awaiting examiner action
	JD
                                         Shanghai

        T: 86 21 2201 8062

        F: 86 21 5298 6569

 

 

    	6

    	 

    

 

 

	TITLE:
                                         NANOTUBE-REINFORCED BALLOONS FOR DELIVERING THERAPEUTIC AGENTS WITHIN OR BEYOND THE WALL
                                         OF BLOOD VESSELS, AND METHODS OF MAKING AND USING SAME

         

        INVENTOR(S): BATES, Mark C.

         

	COUNTRY	Docket
    No.	Serial
    No.	Filing
    Date	Patent
    No./ Date	Publication
    No./Date	Status	Foreign
    Assoc. Information
	US	104559-1301	12/172,168	07/11/08	8,187,221
    (05/29/12)	2010-0010470-A1
    (01/14/10)	Issued

        ·   
        MF due 11/29/15

        ·   
        Broadening Reissue due 5/29/14
	 
	US	104559-1302	13/455,919	04/25/12	 	US2012-0209250-A1
    (08/16/12)	Pending

        ·   
        Resp Final OA due 08/06/13 (Final)

        ·   
        Instructions to Abandon received 6/11/13
	 
	US	104559-1303	13/455,973	04/25/12	 	US2012-0209251-A1
    (08/16/12)	Pending

        ·   
        RCE filed 07/08/13

        ·   
        Awaiting further OA
	 
	EP	104559-1330	09771434.9	 	 	 	Pending

        ·   
        Resp filed 3/8/13

        ·   
        Awaiting further Action

        ·   
        DIV appl due 11/14/14
	JD
                                         Munich

        Ref: 102615PCEP

 

 

    	7

    	 

    

 

 

	PCT	104559-1310	PCT/US09/004006	07/09/09	 	WO
    2010/005572 (01/14/2010)	Completed	 
	CA	104559-1320	2,730,273	07/09/09	 	 	Pending

        ·   
        Request for Exam due 7/9/14
	Osler,
                                         Hoskin, and Harcourt LLP

        Ref: PCA21204

	AU	104559-1315	2009269104	07/09/09	 	 	Pending

        ·   
        Request for Exam due 7/9/14

        ·   
        Annuity due 7/9/14
	 
	CN	104559-1325	200980134724.2	07/09/09	 	 	Pending

        ·   
        Response 1st Action due 7/29/13 (FA insts sent 6/12/13)
	 
	JP	104559-1340	2011-517421	07/09/09	 	 	Pending

        ·   
        Awaiting 1st Action
	 

 

 

    	8

    	 

    

 

 

	TITLE:
                                         INTERVENTIONAL DEVICES FORMED USING COMPOSITIONS INCLUDING METAL-COATED NANOTUBES DISPERSED
                                         IN POLYMERS, AND METHODS OF MAKING AND USING SAME

         

        INVENTOR(S): BATES, Mark C.

         

	COUNTRY	Docket
    No.	Serial
    No.	Filing
    Date	Patent
    No./ Date	Publication
    No./Date	Status	Foreign
    Assoc. Information
	US	104559-1401	12/342,013	12/22/08	 	2010-0158193-A1
    (06/24/10)	Abandoned

        ·   
        Client’s Inst e-mail 7/24/13
	 

 

	TITLE:
                                         INTERVENTIONAL DEVICES INCLUDING DILUTE NANOTUBE-POLYMER COMPOSITIONS, AND METHODS OF
                                         MAKING AND USING SAME

         

        INVENTOR(S): D’AQUANNI, Peter; BATES, Mark
        C.; STALKER, Kent; PHILLIPS, Jason

         

	COUNTRY	Docket
    No.	Serial
    No.	Filing
    Date	Patent
    No./ Date	Publication
    No./Date	Status	Foreign
    Assoc. Information
	US	104559-1500	61/098,624	09/19/08	 	 	Expired	 
	US	104559-1501	13/051,351	03/18/11	 	 	Abandoned

        ·   
        Client’s Inst e-mail 7/24/13
	 
	PCT	104559-1510	PCT/US09/05224	09/18/09	 	WO
    2010/033231 (03/25/2010)	Completed	 

 

 

    	9

    	 

    

 

 

	TITLE:
                                         APPARATUS AND METHODS FOR RENAL STENTING USING INTERVENTIONAL DEVICES WITH RADIOPAQUE
                                         MARKERS

         

        INVENTOR(S): BATES, Mark C. 

         

	COUNTRY	Docket
    No.	Serial
    No.	Filing
    Date	Patent
    No./ Date	Publication
    No./Date	Status	Foreign
    Assoc. Information
	 	104559-1900

         

        012212-0018-999
	 	 	 	 	Unfiled	 

 

	TITLE:
                                         APPARATUS AND METHODS FOR FILTERING EMBOLI DURING PERCUTANEOUS AORTIC VALVE REPLACEMENT
                                         AND REPAIR PROCEDURES WITH FILTRATION SYSTEM COUPLED IN-SITU TO DISTAL END OF SHEATH

         

        INVENTOR(S): 

         

	COUNTRY	Docket
    No.	Serial
    No.	Filing
    Date	Patent
    No./ Date	Publication
    No./Date	Status	Foreign
    Assoc. Information
	US	104559-1600	61/613,890	3/21/12	 	 	Expired

                                                                                 

	n/a
	US	104559-1601	13/802,374	3/13/13	 	 	Pending

         

        ·   
        Awaiting 1st OA
	n/a
	PCT	104559-1610	PCT/US2013/030931	03/13/13	 	 	Pending

         

        ·   
        Nat. Stage deadline 9/21/14
	 
	AU	104559-1615	 	 	 	 	 	 
	CA	104559-1620	 	 	 	 	To
    Be Filed	 
	CN	104559-1625	 	 	 	 	To
    Be Filed	 
	EP	104559-1630	 	 	 	 	To
    Be Filed	 
	JP	104559-1640	 	 	 	 	To
    Be Filed	 

 

 

    	10

    	 

    

 

 

	TITLE:
                                         APPARATUS AND METHODS FOR FILTERING EMBOLI DURING PERCUTANEOUS AORTIC VALVE REPLACEMENT
                                         AND REPAIR PROCEDURES WITH FILTRATION SYSTEM COUPLED IN-SITU TO DISTAL END OF SHEATH

         

        INVENTOR(S): 

         

	COUNTRY	Docket
    No.	Serial
    No.	Filing
    Date	Patent
    No./ Date	Publication
    No./Date	Status	Foreign
    Assoc. Information
	US	104559-1700

         

        (Current F&L Matter No. 104559-0128)
	61/618,896	3/21/12	 	 	Expired	n/a
	US	104559-1701	13/802,314	3/13/13	 	 	Pending

         

        ·   
        Awaiting 1st OA
	n/a
	PCT	104559-1710	PCT/US2013/030943	3/13/13	 	 	Pending

         

        ·   
        Nat. Stage deadline 9/21/14
	 
	AU	104559-1715	 	 	 	 	To
    Be Filed	 
	CA	104559-1720	 	 	 	 	To
    Be Filed	 
	CN	104559-1725	 	 	 	 	To
    Be Filed	 
	EP	104559-1730	 	 	 	 	To
    Be Filed	 
	JP	104559-1740	 	 	 	 	To
    Be Filed	 

 

 

    	11Exhibit 4.1

 

 

 

SALE AND
SERVICING AGREEMENT

 

among

 

WORLD
OMNI AUTO RECEIVABLES TRUST 2016-B

Issuing Entity,

 

WORLD
OMNI AUTO RECEIVABLES LLC,

Depositor,

 

and

 

WORLD
OMNI FINANCIAL CORP.,

Servicer

 

Series
2016-B

 

Dated
as of September 14, 2016

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE I DEFINITIONS	1
	Section 1.01	Definitions	1
	 	 	 
	ARTICLE II CONVEYANCE OF RECEIVABLES	1
	Section 2.01	Conveyance of Receivables	1
	Section 2.02	Intention of Parties	2
	 	 	 
	ARTICLE III THE RECEIVABLES	3
	Section 3.01	Representations and Warranties of World Omni with Respect to each Receivable and the Pool of Receivables	3
	Section 3.02	Repurchase upon Breach; Dispute Resolution	7
	Section 3.03	Custody of Receivable Files	10
	Section 3.04	Duties of Servicer as Custodian	11
	Section 3.05	Instructions; Authority To Act	12
	Section 3.06	Custodian’s Indemnification	12
	Section 3.07	Effective Period and Termination	13
	 	 	 
	ARTICLE IV ADMINISTRATION AND SERVICING OF RECEIVABLES	13
	Section 4.01	Duties of Servicer	13
	Section 4.02	Collection and Allocation of Receivable Payments	14
	Section 4.03	Realization upon Receivables	14
	Section 4.04	Physical Damage Insurance	14
	Section 4.05	Maintenance of Security Interests in Financed Vehicles	15
	Section 4.06	Covenants of Servicer	15
	Section 4.07	Purchase of Receivables upon Breach	15
	Section 4.08	Servicing Fee	15
	Section 4.09	Servicer’s Certificate	16
	Section 4.10	Annual Statement as to Compliance; Item 1122 Servicing Criteria Assessment; Notice of Default	16
	Section 4.11	Annual Independent Certified Public Accountants’ Report	17
	Section 4.12	Access to Certain Documentation and Information Regarding Receivables	17
	Section 4.13	Servicer Expenses	17
	Section 4.14	Appointment of Subservicer	17
	Section 4.15	Communications Between Noteholders	17
	Section 4.16	Exchange Act Certifications	17
	 	 	 
	ARTICLE V TRUST ACCOUNTS; DISTRIBUTIONS; STATEMENTS TO CERTIFICATEHOLDERS AND NOTEHOLDERS	18
	Section 5.01	Establishment of Trust Accounts	18
	Section 5.02	Collections	21
	Section 5.03	Application of Collections	21
	Section 5.04	[Reserved]	21

 

    i

     

    

 

	Section 5.05	Additional Deposits	21
	Section 5.06	Distributions	21
	Section 5.07	Reserve Account	23
	Section 5.08	Statements to Noteholders and Certificateholders	23
	Section 5.09	Net Deposits	25
	Section 5.10	Transfer of Certificates	25
	 	 	 
	ARTICLE VI THE DEPOSITOR	26
	Section 6.01	Representations of Depositor	26
	Section 6.02	Limited Liability Company Existence	27
	Section 6.03	Liability of Depositor; Indemnities	28
	Section 6.04	Merger or Consolidation of, or Assumption of Obligations of Depositor	29
	Section 6.05	Limitation on Liability of Depositor and Others	30
	Section 6.06	Depositor May Own Notes	30
	Section 6.07	Security Interest	30
	 	 	 
	ARTICLE VII THE SERVICER	30
	Section 7.01	Representations of Servicer	30
	Section 7.02	Indemnities of Servicer	32
	Section 7.03	Merger or Consolidation of, or Assumption of Obligations of, Servicer	32
	Section 7.04	Limitation on Liability of Servicer and Others	33
	Section 7.05	World Omni Not To Resign as Servicer	33
	 	 	 
	ARTICLE VIII DEFAULT	34
	Section 8.01	Servicer Default	34
	Section 8.02	Appointment of Successor	35
	Section 8.03	Notification to Noteholders and Certificateholders	36
	Section 8.04	Waiver of Past Defaults	36
	Section 8.05	Payment of Servicing Fees	36
	 	 	 
	ARTICLE IX TERMINATION	36
	Section 9.01	Optional Purchase of All Receivables	36
	 	 	 
	ARTICLE X MISCELLANEOUS	37
	Section 10.01	Amendment	37
	Section 10.02	Protection of Title to Trust	38
	Section 10.03	Notices	40
	Section 10.04	Assignment by the Depositor or the Servicer	40
	Section 10.05	Limitations on Rights of Others	40
	Section 10.06	Severability	41
	Section 10.07	Separate Counterparts	41
	Section 10.08	Headings	41
	Section 10.09	Governing Law	41
	Section 10.10	Assignment by Issuing Entity	41
	Section 10.11	Nonpetition Covenants	41

 

    ii

     

    

 

	Section 10.12	Limitation of Liability of Owner Trustee and Indenture Trustee	42
	Section 10.13	Regulation AB	42
	Section 10.14	Notices to the Rating Agencies	43

 

	SCHEDULE A	Schedule of Receivables
	SCHEDULE B	Location of Receivable Files
	EXHIBIT A	Form of Distribution Statement to Noteholders
	EXHIBIT B	Form of Servicer’s Certificate
	EXHIBIT C	Form of SSA Assignment
	APPENDIX A	Definitions and Rules of Construction
	APPENDIX B	Additional Representations and Warranties

 

 

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SALE AND SERVICING AGREEMENT

 

This SALE AND SERVICING
AGREEMENT is dated as of September 14, 2016, among WORLD OMNI AUTO RECEIVABLES TRUST 2016-B, a Delaware statutory trust (the “Issuing
Entity”), WORLD OMNI AUTO RECEIVABLES LLC, a Delaware limited liability company (the “Depositor”),
as depositor, and WORLD OMNI FINANCIAL CORP., a Florida corporation (“World Omni” or the “Servicer”).

 

WHEREAS, World Omni has
sold the Receivables to the Depositor pursuant to the Receivables Purchase Agreement;

 

WHEREAS, World Omni Auto
Receivables LLC, as depositor, desires to sell the Receivables to the Issuing Entity and the Issuing Entity desires to purchase
such receivables; and

 

WHEREAS, the Servicer
is willing to service, to make representations and warranties and to make certain repurchase representations with respect to such
Receivables;

 

NOW, THEREFORE, in consideration
of the premises and the mutual covenants herein contained, the parties hereto agree as follows:

 

ARTICLE I

DEFINITIONS

 

Section 1.01         Definitions.
Certain capitalized terms used in the above recitals and in this Agreement are defined in and shall have the respective meanings
assigned them in Part I of Appendix A to this Agreement. All references herein to “the Agreement”
or “this Agreement” are to this Sale and Servicing Agreement as it may be amended, supplemented or modified
from time to time, the exhibits hereto and the capitalized terms used herein which are defined in such Appendix A, and
all references herein to Articles, Sections and subsections are to Articles, Sections or subsections of this Agreement unless
otherwise specified. The rules of construction set forth in Part II of such Appendix A shall be applicable to this
Agreement.

 

ARTICLE II

CONVEYANCE OF RECEIVABLES

 

Section 2.01         Conveyance
of Receivables. In consideration of the Issuing Entity’s delivery to or upon the order of the Depositor of the Notes
and the Certificates, on the Closing Date the Depositor does hereby sell, transfer, assign, set over and otherwise convey to the
Issuing Entity, without recourse (subject to the obligations of the Depositor set forth herein), pursuant to an assignment in
the form attached hereto as Exhibit C (the “SSA Assignment”) all right, title and interest of the Depositor,
whether now or hereafter acquired, and wherever located, in and to the following:

 

     

     

    

 

(a)          the
Receivables identified in the Schedule of Receivables to the SSA Assignment delivered to the Issuing Entity (all of which are identified
in World Omni’s computer files by a code indicating the Receivables are owned by the Trust and pledged to the Indenture Trustee)
and all monies received thereon and in respect thereof after the Cutoff Date;

 

(b)          the
security interests in, and the liens on, the Financed Vehicles granted by Obligors in connection with the Receivables and any other
interest of the Depositor in such Financed Vehicles;

 

(c)          any
proceeds with respect to the Receivables from claims on any physical damage, credit life or disability insurance policies covering
such Financed Vehicles or Obligors;

 

(d)          any
Financed Vehicle that shall have secured a Receivable and shall have been acquired by or on behalf of the Depositor, the Servicer
or the Trust;

 

(e)          all
funds on deposit in, and “financial assets” (as such term is defined in the Uniform Commercial Code as from time to
time in effect) credited to, the Trust Accounts, including the Reserve Account, from time to time, including the Reserve Account
Initial Deposit, and in all investments and proceeds thereof (including all income thereon);

 

(f)           the
Receivables Purchase Agreement;

 

(g)          all
“accounts,” “chattel paper,” “general intangibles” and “promissory notes” (as such
terms are defined in the Uniform Commercial Code as from time to time in effect) constituting or relating to the foregoing; and

 

(h)          the
proceeds of any and all of the foregoing; provided, however, that the foregoing items (a) through (h)
shall not include the Notes and Certificates.

 

Section 2.02          Intention
of Parties. It is the intention of the Depositor and the Issuing Entity that the assignment and transfer contemplated herein
constitute (and shall be construed and treated for all purposes, other than for tax purposes, as) a true and complete sale of
the Receivables and the other property of the Depositor specified in Section 2.01 hereof, conveying good title thereto
free and clear of any liens and encumbrances, from the Depositor to the Issuing Entity. However, in the event that such conveyance
is deemed to be a pledge to secure a loan (in spite of the express intent of the parties hereto that this conveyance constitutes,
and shall be construed and treated for all purposes, other than for tax purposes, as a true and complete sale), the Depositor
hereby grants to the Issuing Entity, for the benefit of the Noteholders, a first priority perfected security interest in all of
the Depositor’s right, title and interest in, to and under the Receivables and the other property of the Depositor specified
in Section 2.01 hereof whether now existing or hereafter created and all proceeds of the foregoing to secure the loan deemed
to be made in connection with such pledge and, in such event, this Agreement shall constitute a security agreement under applicable
law.

 

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ARTICLE III

THE RECEIVABLES

 

Section 3.01         Representations
and Warranties of World Omni with Respect to each Receivable and the Pool of Receivables.

 

(a)          Representations
and Warranties With Respect to each Receivable. On the Closing Date, World Omni, which sold the Receivables specified in the
SSA Assignment on such date, hereby represents and warrants to the other parties hereto, with respect to such Receivables as of
the Cutoff Date:

 

(i)          Characteristics
of Receivables. Each Receivable (1) (A) was originated in the United States of America by a Dealer for the retail sale of a
Financed Vehicle in the ordinary course of such Dealer’s business, was fully and properly executed or electronically authenticated
by the parties thereto, and was purchased by World Omni from such Dealer under an existing dealer agreement, (B) was originated
by World Omni, or (C) was originated by an independent third party and acquired by World Omni, (2) contains customary and enforceable
provisions such that the rights and remedies of the holder thereof are adequate for realization against the collateral of the benefits
of the security, and (3) provides for level monthly payments (provided, that the payment in the first or last month in the
life of the Receivable may vary from the level monthly payments and that certain of the Receivables did not require a payment to
be made for up to six months from the date of execution of the contract) that fully amortize the Amount Financed by maturity and
yield interest at the Annual Percentage Rate.

 

(ii)         Compliance
with Law. To the best of World Omni’s knowledge, each Receivable and the sale of the Financed Vehicle complied at the
time it was originated or made and, at the execution of this Agreement, complies in all material respects with all requirements
of applicable federal, state and local laws and regulations thereunder, including usury laws, the federal Truth-in-Lending Act,
the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Federal Trade Commission
Act, the Magnuson-Moss Warranty Act, the Consumer Financial Protection Bureau’s Regulations B and Z, and State adaptations
of the National Consumer Act and of the Uniform Consumer Credit Code, and other consumer credit laws and equal credit opportunity
and disclosure laws.

 

(iii)        Binding
Obligation. Each Receivable represents the genuine, legal, valid and binding payment obligation in writing of the Obligor,
enforceable by the holder thereof in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws, now or hereafter in effect, affecting the enforcement of creditors’
rights in general, and except as such enforceability may be limited by general principles of equity (whether considered in a suit
at law or in equity).

 

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(iv)         No
Government Obligor. No Receivable is due from the United States of America or any State or from any agency, department or instrumentality
of the United States of America or any State.

 

(v)          Security
Interest in Financed Vehicle. Immediately prior to the sale, assignment and transfer thereof, each Receivable shall be secured
by a validly perfected first priority security interest in the related Financed Vehicle in favor of World Omni as secured party
or all necessary and appropriate actions have been commenced that would result in the valid perfection of a first priority security
interest in the Financed Vehicle in favor of the Depositor as secured party and is assignable by World Omni to the Depositor, by
the Depositor to the Issuing Entity and by the Issuing Entity to the Indenture Trustee.

 

(vi)         Receivables
in Force. No Receivable has been satisfied, subordinated or rescinded, nor has any Financed Vehicle been released from the
Lien granted by the related Receivable in whole or in part.

 

(vii)        No
Amendments. The Servicer’s computer system does not reflect that any Receivable has been amended such that the amount
of the Obligor’s scheduled payments has been increased.

 

(viii)      No
Waiver. No provision of a Receivable has been waived, other than a discretionary waiver of a late payment charge or any other
fees that may be collected in the ordinary course of servicing a Receivable or in connection with any extension which is reflected
in the Servicer’s computer system.

 

(ix)         No
Defenses. The Servicer’s computer system does not reflect that any right of rescission, setoff, counterclaim or defense
has been asserted or threatened with respect to any Receivable.

 

(x)          No
Liens. The Servicer’s computer system does not reflect that any liens or claims have been filed for work, labor or materials
relating to a Financed Vehicle that are liens prior or equal to the security interest in the Financed Vehicle granted by any Receivable.

 

(xi)         No
Default. No Receivable has a Scheduled Payment for which more than $40 is more than 30 days overdue as of the Cutoff Date,
and, except as permitted in this paragraph, the Servicer’s computer system does not reflect that any default, breach, violation
or event permitting acceleration under the terms of any Receivable has occurred nor that a continuing condition that with notice
or the lapse of time would constitute a default, breach, violation or event permitting acceleration under the terms of any Receivable
has arisen; and World Omni has not waived and, except as permitted hereby, shall not waive any of the foregoing.

 

(xii)        Insurance.
Under the terms of each Receivable, the related Obligor is required to maintain physical damage insurance covering the Financed
Vehicle and to have World Omni named as the loss payee.

 

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(xiii)        Title.
No Receivable has been sold, transferred, assigned or pledged (x) by World Omni to any Person other than the Depositor or (y) by
the Depositor to any Person other than the Issuing Entity.

 

(xiv)        Lawful
Assignment. No Receivable has been originated in, or is subject to the laws of, any jurisdiction under which the sale, transfer
and assignment of such Receivable under this Agreement or the Indenture is unlawful, void or voidable.

 

(xv)         One
Authoritative Copy or Original. There is only one “authoritative copy” of any Receivable constituting “electronic
chattel paper” as defined in the UCC. There is only one executed original of any Receivable constituting “tangible
chattel paper” as defined in the UCC.

 

(xvi)        Maturity
of Receivables. Each Receivable has a final maturity date not later than December 26, 2022.

 

(xvii)      Scheduled
Payments. As of the Cutoff Date, each Receivable had a first scheduled due date on or prior to the end of the third month immediately following the Cutoff Date.

 

(xviii)     Outstanding
Principal Balance. Each Receivable has an outstanding principal balance of at least $500.

 

(xix)        No
Bankruptcies. No Obligor on any Receivable was noted in the Servicer’s computer system as having filed for bankruptcy.

 

(xx)         No
Repossessions. No Receivable was secured by a Financed Vehicle that had been repossessed without reinstatement of the related
contract.

 

(xxi)        Chattel
Paper. Each Receivable constitutes “electronic chattel paper” or “tangible chattel paper” as defined
in the UCC.

 

(xxii)       Prepayment.
Each Receivable provides that a prepayment by the related Obligor will fully pay the principal balance and accrued interest through
the date of prepayment based on such Receivable’s Annual Percentage Rate.

 

(b)          Representations
and Warranties With Respect to the Pool of Receivables. On the Closing Date, World Omni, which sold the Receivables specified
in the SSA Assignment on such date, hereby makes the representations and warranties set forth in Appendix B hereto, and
hereby represents and warrants to the other parties hereto, with respect to such pool of Receivables as of the Cutoff Date:

 

(i)          Schedule
of Receivables. The information set forth in the Schedule of Receivables is true and correct in all material respects as of
the close of business on the Cutoff Date, and no selection procedures believed by World Omni to be adverse to the Noteholders were
utilized in selecting the Receivables. The computer tape or other listing regarding the Receivables made available to the Issuing
Entity and its assigns (which computer tape or other listing is required to be delivered as specified herein) is true and correct
in all material respects.

 

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(ii)         Title.
Immediately prior to the transfer and assignment contemplated in the Receivables Purchase Agreement, World Omni had good and marketable
title to the Receivables free and clear of all Liens, encumbrances, security interests and rights of others and, immediately upon
the transfer thereof, the Depositor shall have good and marketable title to the Receivables, free and clear of all Liens, encumbrances,
security interests and rights of others; and the transfer has been perfected under the UCC (to the extent a security interest in
such property may be perfected by filing under the applicable UCC) except, in each case, for liens and encumbrances that will be
released concurrent with the transfer of Receivables pursuant to the Receivables Purchase Agreement. Immediately prior to the transfer
and assignment herein contemplated, the Depositor had good and marketable title to the property conveyed to the Issuing Entity
pursuant to Section 2.01 or 2.03 of this Agreement, as applicable, free and clear of all Liens, encumbrances, security interests
and rights of others and, immediately upon the transfer thereof, the Issuing Entity shall have good and marketable title to the
Receivables, free and clear of all Liens, encumbrances, security interests and rights of others; and the transfer has been perfected
under the UCC (to the extent a security interest in such property may be perfected by filing under the applicable UCC).

 

(iii)        All
Filings Made. All filings (including UCC filings) necessary in any jurisdiction to give the Issuing Entity a first perfected
ownership interest in the Receivables, and to give the Indenture Trustee a first perfected security interest therein, shall have
been made.

 

(iv)         Location
of Receivable Files. The Receivable Files are, and will be, kept at the locations listed in Schedule B or at such other
office or location as shall be specified to the Issuing Entity and the Indenture Trustee by written notice prior to any change
in location together with the Opinion of Counsel required by Section 10.02(j).

 

(v)          Computer
Records. World Omni and the Depositor will cause their accounting and computer records to be marked to indicate the sale and
assignment of the Receivables from World Omni to the Depositor and from the Depositor to the Trust.

 

(vi)         Computer
Code. Each of the Receivables is identified on World Omni’s computer files by a code indicating the Receivables are owned
by the Trust and pledged to the Indenture Trustee. The Receivables are the only Contracts listed on the Schedule of Receivables,
are the only Contracts identified on World Omni’s computer files by such code, and are not identified on World Omni’s
computer files by any other code.

 

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Section 3.02         Repurchase
upon Breach; Dispute Resolution.

 

(a)          Investigation
of Breach. If World Omni (i) has knowledge of a breach of a representation or warranty made in Section 3.01(a), (ii)
receives notice from the Depositor, the Issuing Entity, the Owner Trustee or the Indenture Trustee of a breach of a representation
or warranty made in Section 3.01(a), (iii) receives a Repurchase Request from the Owner Trustee or the Indenture Trustee
for a Receivable or (iv) receives a Review Report that indicates a Test Fail for a Receivable, then, in each case, World Omni
will investigate the Receivable to confirm the breach and determine if the breach has a material adverse effect on the Receivable.
None of the Servicer, the Issuing Entity, the Owner Trustee, the Indenture Trustee, the Asset Representations
Reviewer or the Administrator will have an obligation to investigate whether a breach of any representation or warranty has occurred
or whether any Receivable is required to be repurchased under Section 3.02(b).
The Depositor, the Servicer or the Trust, as the case may be, shall inform the other parties to this Agreement and the Indenture
Trustee promptly, in writing, upon the discovery of any breach of World Omni’s representations and warranties made pursuant
to Section 3.01(a).

 

(b)          Repurchase.
Unless any such breach shall have been cured by the last day of the second Collection Period following the discovery thereof
or receipt of notice thereof by World Omni as described in Section 3.02(a), World Omni shall be obligated to repurchase
any Receivable materially and adversely affected by any such breach as of such last day (or, at World Omni’s option, the
last day of the first Collection Period following the discovery) and World Omni shall deliver a revised Schedule of Receivables
to the Depositor and the Trust which shall reflect the repurchase of such Receivables). In consideration of the repurchase of
any such Receivable, World Omni shall remit the Purchase Amount, in the manner specified in Section 5.05. Upon such repurchase,
the Issuing Entity will, without further action, be deemed to have sold and assigned to World Omni all of the Issuing Entity’s
right, title and interest in the Receivable repurchased by World Omni under this Section 3.02(b) and all security and documents
relating to the Receivable. The sale will not require any action by the Issuing Entity and will be without recourse, representation
or warranty by the Issuing Entity except the representation that the Issuing Entity owns the Receivable free and clear of any
Lien, other than a Lien pursuant to the Basic Documents. On the sale, the Servicer will mark its receivables systems to indicate
that the receivable is no longer a Receivable and may take any action necessary or advisable to evidence the sale of the receivable,
free from any Lien of the Issuing Entity or the Indenture Trustee. Subject to the provisions of Section 6.03, the sole
remedy of the Issuing Entity, the Owner Trustee, the Indenture Trustee, the Noteholders or the Certificateholders with respect
to a breach of representations and warranties pursuant to Section 3.01(a) and the agreement contained in this Section shall
be to require World Omni to repurchase Receivables pursuant to this Section, subject to the conditions contained herein.

 

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(c)          Dispute
Resolution.

 

(i)          Referral
to Dispute Resolution. If the Issuing Entity, the Owner Trustee, the Indenture Trustee, a Noteholder or a Note Owner (the “Requesting
Party”) requests that World Omni repurchase a Receivable due to an alleged breach of a representation and warranty in
Section 3.01(a) (which repurchase request shall provide sufficient detail so as to allow World Omni to reasonably investigate
the alleged breach of the representations and warranties in Section 3.01(a); provided that with respect to a repurchase
request from a Noteholder or a Note Owner, such repurchase request shall initially be provided to the Indenture Trustee) (each,
a “Repurchase Request”), and the Repurchase Request has not been resolved, the alleged breach has not otherwise
been cured or the related Receivable has not otherwise been repurchased, paid-off or otherwise satisfied, within 180 days of the
receipt of notice of the Repurchase Request by World Omni, the Requesting Party may refer the matter, in its discretion, to either
mediation (including non-binding arbitration) or binding third-party arbitration by filing in accordance with ADR Rules and providing
a notice to World Omni. The Requesting Party must start the mediation (including non-binding arbitration) or arbitration proceeding
according to the ADR Rules of the ADR Organization within 90 days after the end of the 180-day period. World Omni agrees to participate
in the dispute resolution method selected by the Requesting Party. However, if the Receivable subject to a Repurchase Request was
part of a Review and the Review Report states no Test Fails for the Receivable, the Repurchase Request for the Receivable will
be deemed to have been resolved.

 

(ii)         Mediation.
If the Requesting Party selects mediation for dispute resolution:

 

(A)         The
mediation will be administered by the ADR Organization using its ADR Rules. However, if any ADR Rules are inconsistent with the
procedures for mediation stated in this Section 3.02(c), the procedures in this Section 3.02(c) will control.

 

(B)         A
single mediator will be selected by the ADR Organization from a list of neutrals maintained by it according to the ADR Rules. The
mediator must be impartial, an attorney admitted to practice in the State of New York and have at least 15 years of experience
in commercial litigation and, if possible, consumer finance or asset-backed securitization matters.

 

(C)         The
mediation will start within 15 days after the selection of the mediator and conclude within 30 days after the start of the mediation.

 

(D)         
Expenses of the mediation will be allocated among the parties as mutually agreed by them as part of the mediation.

 

(E)         If
the parties fail to agree at the completion of the mediation, the Requesting Party may refer the Repurchase Request to arbitration
under this Section 3.02(c) or may seek adjudication of the Repurchase Request in court.

 

(iii)        Binding
Arbitration. If the Requesting Party selects arbitration for dispute resolution:

 

(A)         The
arbitration will be administered by the ADR Organization using its ADR Rules. However, if any ADR Rules are inconsistent with the
procedures for arbitration stated in this Section 3.02(c), the procedures in this Section 3.02(c) will control.

 

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(B)         A
single arbitrator will be selected by the ADR Organization from a list of neutrals maintained by it according to the ADR Rules.
The arbitrator must be impartial, an attorney admitted to practice in the State of New York and have at least 15 years of experience
in commercial litigation and, if possible, consumer finance or asset-backed securitization matters. The arbitrator will be independent
and impartial and will comply with the Code of Ethics for Arbitrators in Commercial Disputes in effect at the time of the arbitration.
Before accepting an appointment, the arbitrator must promptly disclose any circumstances likely to create a reasonable inference
of bias or conflict of interest or likely to preclude completion of the proceedings within the stated time schedule. The arbitrator
may be removed by the ADR Organization for cause consisting of actual bias, conflict of interest or other serious potential for
conflict.

 

(C)         The
arbitrator will have the authority to schedule, hear and determine any motions, including dispositive and discovery motions, according
to New York law, and will do so at the motion of any party. Discovery will be completed within 30 days of selection of the arbitrator
and will be limited for each party to two witness depositions not to exceed five hours, two interrogatories, one document request
and one request for admissions. However, the arbitrator may grant additional discovery on a showing of good cause that the additional
discovery is reasonable and necessary. Briefs will be limited to no more than ten pages each, and will be limited to initial statements
of the case, motions and a pre-hearing brief. The evidentiary hearing on the merits will start no later than 60 days after selection
of the arbitrator and will proceed for no more than six consecutive Business Days with equal time allocated to each party for the
presentation of evidence and cross examination. The arbitrator may allow additional time for discovery and hearings on a showing
of good cause or due to unavoidable delays.

 

(D)         The
arbitrator will make its final determination no later than 90 days after its selection. The arbitrator will resolve the dispute
according to the terms of this Agreement and the other Basic Documents, and may not modify or change this Agreement or the other
Basic Documents in any way or award remedies not consistent with the Basic Documents. The arbitrator will not have the power to
award punitive damages or consequential damages in any arbitration conducted by it. In its final determination, the arbitrator
will determine and award the expenses of the arbitration (including filing fees, the fees of the arbitrator, expense of any record
or transcript of the arbitration and administrative fees) to the parties in its reasonable discretion. The determination of the
arbitrator will be in writing and counterpart copies will be promptly delivered to the parties. The determination will be final
and non-appealable, except for actions to confirm or vacate the determination permitted under federal or State law, and may be
entered and enforced in any court of competent jurisdiction over the parties and the matter.

 

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(E)         By
selecting binding arbitration, the Requesting Party is giving up the right to sue in court, including the right to a trial by jury.

 

(F)         The
Requesting Party may not bring a putative or certificated class action to arbitration. If this waiver of class action rights is
found to be unenforceable for any reason, the Requesting Party agrees that it will bring its claims in a court of competent jurisdiction.

 

(iv)         Additional
Conditions. For each mediation or arbitration:

 

(A)         Any
mediation or arbitration will be held in New York, New York at the offices of the mediator or arbitrator or at another location
selected by World Omni. Any party or witness may participate by teleconference or video conference.

 

(B)         World
Omni and the Requesting Party will have the right to seek provisional relief from a competent court of law, including a temporary
restraining order, preliminary injunction or attachment order, if such relief is available by law.

 

(C)         Under
no circumstances will the Owner Trustee or the Indenture Trustee, respectively, in its individual capacity be liable for any costs,
expenses or liabilities that could be allocated to the Requesting Party in any mediation or arbitration.

 

(v)          World
Omni will not be required to produce personally identifiable customer information for purposes of any mediation or arbitration.
The existence and details of any unresolved Repurchase Request, any informal meetings, mediations or arbitration proceedings, the
nature and amount of any relief sought or granted, any offers or statements made and any discovery taken in the proceeding will
be confidential, privileged and inadmissible for any purpose in any other mediation, arbitration, litigation or other proceeding.
The parties will keep this information confidential and will not disclose or discuss it with any third party (other than a party’s
attorneys, experts, accountants and other advisors, as reasonably required in connection with the mediation or arbitration proceeding
under this Section 3.02(c)), except as required by law, regulatory requirement or court order. If a party to a mediation
or arbitration proceeding receives a subpoena or other request for information from a third party (other than a governmental regulatory
body) for confidential information of the other party to the mediation or arbitration proceeding, the recipient will promptly notify
the other party and will provide the other party with the opportunity to object to the production of its confidential information.

 

Section 3.03         Custody
of Receivable Files. To assure uniform quality in servicing the Receivables and to reduce administrative costs, the Issuing
Entity hereby revocably appoints the Servicer, and the Servicer hereby accepts such appointment, to act for the benefit of the
Issuing Entity and the Indenture Trustee as custodian of the following documents or instruments which are hereby or will hereby
be constructively delivered to the Indenture Trustee, as pledgee of the Issuing Entity, as of the Closing Date with respect to
each Receivable:

 

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(a)          in
the case of each Receivable constituting “tangible chattel paper”, the fully executed original Contract of such Receivable
or, in the case of each Receivable constituting “electronic chattel paper”, the “authoritative copy” (as
such term is used in Section 9-105 of the UCC) of the electronic Contract of such Receivable;

 

(b)          the
credit application fully executed by the Obligor or such other information as the Servicer may keep on file in accordance with
its customary servicing procedures;

 

(c)          the
original certificate of title or such documents that the Servicer or the Depositor shall keep on file, in accordance with its customary
procedures, evidencing the security interest of World Omni in the Financed Vehicle; and

 

(d)          any
and all other documents that the Servicer or the Depositor shall keep on file, in accordance with its customary procedures, relating
to a Receivable, an Obligor or a Financed Vehicle;

 

provided, that
the Servicer may appoint one or more agents to act as subcustodians of certain items in the Receivables Files so long as the Servicer
remains primarily responsible for their safekeeping, provided, further, that the Servicer shall not transmit or transfer
the authoritative copy of a Receivable that is in the form of electronic chattel paper to another person.

 

Section 3.04         Duties
of Servicer as Custodian.

 

(a)          Safekeeping.
The Servicer shall hold the Receivable Files as custodian for the benefit of the Issuing Entity and maintain such accurate and
complete accounts, records and computer systems pertaining to each Receivable File as shall enable the Issuing Entity to comply
with this Agreement. In performing its duties as custodian the Servicer shall act with reasonable care, using that degree of skill
and attention that the Servicer exercises with respect to the receivable files relating to all comparable automotive receivables
that the Servicer services for itself. The Servicer covenants and agrees that it shall hold the Receivable Files in such a manner
as to prevent any other Person from obtaining “control” of any “electronic chattel paper” included therein
(as such terms are used in section 9-105 of the UCC). The Servicer shall promptly report to the Issuing Entity and the Indenture
Trustee any failure on its part to hold the Receivable Files and maintain its accounts, records and computer systems as herein
provided and shall promptly take appropriate action to remedy any such failure. Nothing herein shall be deemed to require an initial
review or any periodic review by the Issuing Entity or the Indenture Trustee of the Receivable Files.

 

(b)          Maintenance
of and Access to Records. The Servicer shall maintain each Receivable File at one of its offices, or at such other location,
in each case as specified in Schedule B or at such other office or location of the Servicer or a third party agent retained
by the Servicer as shall be specified to the Issuing Entity and the Indenture Trustee by written notice prior to any change in
location together with the Opinion of Counsel required by Section 10.02(j).

 

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The Servicer shall provide
to the Indenture Trustee and, following the receipt of a Review Notice, the Asset Representation Reviewer, access to any and all
documentation regarding the Receivables in such cases where the Indenture Trustee is required in connection with the enforcement
of the rights of the Noteholders, or by applicable statutes or regulations to review such documentation or the Asset Representations
Reviewer is obligated to conduct a Review, as applicable, such access being afforded without charge but only (a) upon reasonable
request, (b) during normal business hours, (c) subject to the Servicer’s normal security and confidentiality procedures and
(d) at offices designated by the Servicer. Nothing in this Section 3.04(b) shall derogate from the obligation of the Servicer,
the Indenture Trustee or the Asset Representation Reviewer to observe any applicable law prohibiting disclosure of information
regarding the Obligors and the failure of the Servicer to provide access as provided in this Section 3.04(b) as a result
of such obligation shall not constitute a breach of this Section 3.04(b).

 

(c)          Release
of Documents. Upon instruction from the Indenture Trustee, the Servicer shall release any Receivable File to the Indenture
Trustee, the Indenture Trustee’s agent or the Indenture Trustee’s designee, as the case may be, at such place or places
as the Indenture Trustee may designate, as soon as practicable.

 

Section 3.05         Instructions;
Authority To Act. The Servicer shall be deemed to have received proper instructions with respect to the Receivable Files upon
its receipt of written instructions signed by a Trust Officer of the Indenture Trustee.

 

Section 3.06         Custodian’s
Indemnification. The Servicer as custodian shall indemnify the Trust, the Owner Trustee, and the Indenture Trustee and each
of their respective officers, directors, employees and agents for any and all liabilities, obligations, losses, compensatory damages,
payments, costs or expenses of any kind whatsoever that may be imposed on, incurred by or asserted against the Trust, the Owner
Trustee, or the Indenture Trustee or any of their respective officers, directors, employees and agents as the result of any improper
act or omission in any way relating to the maintenance and custody by the Servicer as custodian of the Receivable Files; provided,
however, that the Servicer shall not be liable to the Owner Trustee for any portion of any such amount resulting from the
willful misfeasance, bad faith or negligence of the Owner Trustee, and the Servicer shall not be liable to the Indenture Trustee
for any portion of any such amount resulting from the willful misfeasance, bad faith or negligence of the Indenture Trustee.

 

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Section 3.07         Effective
Period and Termination. The Servicer’s appointment as custodian shall become effective as of the Cutoff Date and shall
continue in full force and effect until terminated pursuant to this Section. If World Omni shall resign as Servicer in accordance
with the provisions of this Agreement or if all of the rights and obligations of any Servicer shall have been terminated under
Section 8.01, the appointment of such Servicer as custodian may be terminated by the Indenture Trustee or by the Holders
of the Controlling Securities evidencing not less than 25% of the Outstanding Amount of the Controlling Securities or, with the
consent of Holders of the Controlling Securities evidencing not less than 25% of the Outstanding Amount of the Controlling Securities,
by the Owner Trustee, in the same manner as the Indenture Trustee or such Holders may terminate the rights and obligations of
the Servicer under Section 8.01. As soon as practicable after any termination of such appointment, the Servicer shall deliver
the Receivable Files to the Indenture Trustee or the Indenture Trustee’s agent at such place or places as the Indenture
Trustee may reasonably designate; provided, however, that with respect to “authoritative copies” of the Receivables
constituting “electronic chattel paper,” (a) if the Servicer’s appointment as custodian has been terminated
in connection with the resignation or termination of the Servicer as servicer, the custodian shall transfer such “authoritative
copies” to the successor Servicer or (b) otherwise, unless otherwise instructed by the Indenture Trustee, such “authoritative
copies” shall be transferred to the Indenture Trustee or the Indenture Trustee’s designee. In each case, if necessary,
an authorized representative of World Omni shall use commercially reasonable efforts to convert an authoritative copy into tangible
form by permanently removing such electronic authoritative copy from World Omni’s electronic vaulting system and causing
a contract in tangible form to be printed as the tangible authoritative copy that constitutes original tangible chattel paper
for purposes of the UCC, and shall deliver such tangible authoritative copy to the successor Servicer or to the Indenture Trustee
or the Indenture Trustee’s designee at the place or places as the Indenture Trustee may reasonably designate.

 

ARTICLE IV

ADMINISTRATION AND SERVICING OF RECEIVABLES

 

Section 4.01         Duties
of Servicer. The Servicer, for the benefit of the Issuing Entity (to the extent provided herein), shall manage, service, administer
and receive collections on the Receivables (other than Purchased Receivables) with reasonable care, using that degree of skill
and attention that the Servicer exercises with respect to all comparable automotive receivables that it services for itself or
others. The Servicer’s duties shall include collection and posting of all payments, responding to inquiries of Obligors
on such Receivables, investigating delinquencies, sending invoices to Obligors, reporting tax information to Obligors, accounting
for collections, paying the fee of the Administrator out of its own funds pursuant to Section 1.03 of the Administration
Agreement and furnishing a Servicer’s Certificate to the Indenture Trustee. Subject to the provisions of Section 4.02,
the Servicer shall follow its customary standards, policies and procedures in performing its duties as Servicer. Without limiting
the generality of the foregoing, the Servicer is authorized and empowered to execute and deliver, on behalf of itself, the Issuing
Entity, the Owner Trustee, the Indenture Trustee, the Certificateholders and the Noteholders or any of them, any and all instruments
of satisfaction or cancellation, or partial or full release or discharge, and all other comparable instruments, with respect to
such Receivables or to the Financed Vehicles securing such Receivables. If the Servicer shall commence a legal proceeding to enforce
a Receivable, the Issuing Entity (in the case of a Receivable other than a Purchased Receivable) shall thereupon be deemed to
have automatically assigned, solely for the purpose of collection, such Receivable to the Servicer. If in any enforcement suit
or legal proceeding it shall be held that the Servicer may not enforce a Receivable on the ground that it shall not be a real
party in interest or a holder entitled to enforce such Receivable, the Owner Trustee shall, at the Servicer’s expense and
direction, take steps to enforce such Receivable, including bringing suit in its name or the name of the Owner Trustee, the Indenture
Trustee, the Certificateholders or the Noteholders. The Owner Trustee shall upon the written request of the Servicer furnish the
Servicer with any powers of attorney and other documents, in forms provided to it, reasonably necessary or appropriate to enable
the Servicer to carry out its servicing and administrative duties hereunder.

 

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Section 4.02          Collection
and Allocation of Receivable Payments. The Servicer shall make reasonable efforts to collect all payments called for under
the terms and provisions of the Receivables as and when the same shall become due and shall follow such collection procedures
as it follows with respect to all comparable automotive receivables that it services for itself or others. The Servicer shall
allocate collections as set forth in Section 5.03. The Servicer may grant extensions (although not more than six for the
life of any Receivable (excluding the Servicer’s Payment Extension Program)), rebates or adjustments on a Receivable, which
shall not, for the purposes of this Agreement, modify the day of the month on which payment is due (except in connection with
a limited number of accommodations for Obligors of occasional requests in accordance with the Servicer’s customary servicing
procedures) or change the method under which scheduled payments of interest are computed on such Receivable (other than with respect
to the Servicer’s Payment Extension Program); provided, however, that if the Servicer extends the date for
final payment by the Obligor of any Receivable beyond the Final Scheduled Maturity Date, it shall promptly repurchase the Receivable
from the Issuing Entity in accordance with the terms of Section 4.07. The Servicer shall not retain any fees in connection
with any extension of a Receivable but shall instead deposit such fees into the Collection Account within two Business Days of
receipt (including receipt of proper instructions regarding where to allocate such payment). The Servicer may in its discretion
waive any late payment charge or any other fees that may be collected in the ordinary course of servicing a Receivable. The Servicer
shall not agree to any alteration of the interest rate or the originally scheduled payments on any Receivable, other than as provided
herein or as required by law.

 

Section 4.03         Realization
upon Receivables. On behalf of the Issuing Entity, the Servicer shall use commercially reasonable efforts, consistent with
its customary servicing procedures, to repossess or otherwise convert the ownership of the Financed Vehicle securing any Receivable
as to which the Servicer shall have determined eventual payment in full is unlikely. The Servicer shall follow such customary
and usual practices and procedures as it shall deem necessary or advisable in its servicing of automotive receivables, which may
include selling the Financed Vehicle at public or private sale. The Servicer is hereby authorized to exercise its discretion,
consistent with its customary servicing procedures and the terms of this Agreement, in servicing Defaulted Receivables so as to
maximize the realization of those Defaulted Receivables, including the discretion to choose to sell or not to sell any of the
Defaulted Receivables. The Servicer shall not be liable for any such exercise of its discretion made in good faith.

 

Section 4.04         Physical
Damage Insurance. To the extent applicable, the Servicer shall not take any action that would result in noncoverage under
such physical damage insurance policy which, but for the actions of the Servicer, would have been covered thereunder. Any amounts
collected by the Servicer under any physical damage insurance policy shall be deposited in the Collection Account pursuant to
Section 5.02. The parties hereto acknowledge that the Servicer shall not force place any insurance coverage.

 

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Section 4.05         Maintenance
of Security Interests in Financed Vehicles. The Servicer shall, in accordance with its customary servicing procedures, take
such steps as are necessary to maintain perfection of the security interest created by each Receivable in the related Financed
Vehicle. The Servicer is hereby authorized to take such steps as are necessary to re-perfect such security interest on behalf
of the Issuing Entity and the Indenture Trustee in the event of the relocation of a Financed Vehicle or for any other reason.

 

Section 4.06         Covenants
of Servicer. The Servicer shall not release the Financed Vehicle securing any Receivable from the security interest granted
by such Receivable in whole or in part except in the event of (i) payment by the Obligor (a) in full or (b) in part with a remaining
total payment shortage amount which, according to the Servicer’s customary procedures, does not exceed the amount of total
payment shortage that would permit the Servicer to release the related Financed Vehicle from the security interest or (ii) repossession,
nor shall the Servicer impair the rights of the Issuing Entity, the Indenture Trustee, the Certificateholders or the Noteholders
in such Receivable.

 

Section 4.07         Purchase
of Receivables upon Breach. The Servicer or the Trust shall inform the other party and the Indenture Trustee and the Depositor
promptly, in writing, upon the discovery of any breach pursuant to Section 4.02, 4.05, 4.06 or 7.01.
Unless the breach shall have been cured by the last day of the second Collection Period following such discovery or written notice
(or, at the Servicer’s election, the last day of the first following Collection Period), the Servicer shall purchase any
Receivable materially and adversely affected by such breach as of such last day and the Servicer shall deliver a revised Schedule
of Receivables to the Depositor and the Trust, which shall reflect the repurchase of such Receivables. In consideration of the
purchase of any such Receivable pursuant to the preceding sentence, the Servicer shall remit the Purchase Amount in the manner
specified in Section 5.05. Subject to Section 7.02, the sole remedy of the Issuing Entity, the Owner Trustee, the
Indenture Trustee, the Certificateholders or the Noteholders with respect to a breach pursuant to Section 4.02, 4.05,
4.06 or 7.01 shall be to require the Servicer to purchase Receivables pursuant to this Section. None of the Servicer,
the Issuing Entity, the Owner Trustee, the Indenture Trustee, the Asset Representations Reviewer, the Seller, the Depositor or
the Administrator will have an obligation to investigate whether a breach or other event has occurred that would require the purchase
of any Receivable under this Section 4.07 or whether any Receivables is required to be purchased under this Section
4.07.

 

Section 4.08         Servicing
Fee. The Servicing Fee for a Payment Date shall equal the product of (a) one-twelfth, (b) the Servicing Fee Rate and (c) the
aggregate Principal Balance of the Receivables as of the first day of the related Collection Period; provided, however,
that the Servicing Fee on the initial Payment Date shall be prorated to compensate for the length of the initial Collection Period
being longer than one month and will be equal to $1,431,374.85. The Servicer shall also be entitled to all Supplemental Servicing
Fees collected (from whatever source) on the Receivables, the amount of any Servicing Fee due but not distributed to the Servicer
on a prior Payment Date (including any amounts previously deferred by the Servicer as provided in this Section 4.08)
plus any reimbursement pursuant to the last paragraph of Section 7.02. The Servicer may, as long as it believes that sufficient
collections will be available from interest collections on one or more future Payment Dates to pay the Servicing Fee, by notice
to the Indenture Trustee on or before a Payment Date, elect to defer all or a portion of the Servicing Fee with respect to the
related Collection Period, without interest. If the Servicer defers all of the Servicing Fee, the Servicing Fee for such related
Collection Period will be deemed to equal zero.

 

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Section 4.09         Servicer’s
Certificate. On or prior to the close of business on each Payment Determination Date, the Servicer shall deliver a Servicer’s
Certificate pursuant to Section 5.08. Receivables to be purchased by the Servicer or to be repurchased by World Omni or
the Depositor shall be identified by the Servicer by account number with respect to such Receivable (as specified in the Schedule
of Receivables).

 

Section 4.10         Annual
Statement as to Compliance; Item 1122 Servicing Criteria Assessment; Notice of Default.

 

(a)          To
the extent required by Regulation AB, the Servicer shall deliver (and shall cause each of its Reporting Subcontractors, if any,
to deliver) to the Owner Trustee and the Indenture Trustee on or before the date that is 90 days after the end of each calendar
year, commencing with the calendar year ended December 31, 2016, an Officer’s Certificate as required under Item 1123 of
Regulation AB, dated as of December 31 of the preceding year, stating that (i) a review of the activities of the Servicer during
the preceding calendar year (or such shorter period as shall have elapsed since the Closing Date) and of its performance under
this Agreement has been made under such officer’s supervision and (ii) to the best of such officer’s knowledge, based
on such review, the Servicer has fulfilled all its obligations under this Agreement in all material respects throughout such reporting
period, or, if there has been a failure to fulfill any such obligation in any material respect, specifying each such failure known
to such officer and the nature and status thereof. The Servicer shall send a copy of such certificate and the report referred to
in Section 4.11 to the Rating Agencies. A copy of such certificate and the report referred to in Section 4.11 may
be obtained by any Certificateholder or Noteholder by a request in writing to the Indenture Trustee addressed to the Corporate
Trust Office. Upon the request of the Owner Trustee, the Indenture Trustee will promptly furnish the Owner Trustee a list of Noteholders
as of the date specified by the Owner Trustee.

 

(b)          The
Servicer shall deliver to the Owner Trustee and the Indenture Trustee, on or before the date that is 90 days after the end of each
calendar year, commencing with the calendar year ended December 31, 2016, a report, dated as of December 31 (or other applicable
date) of the preceding year, regarding the Servicer’s assessment of compliance with the Servicing Criteria during the immediately
preceding calendar year, including disclosure of any material instance of non-compliance identified by the Servicer, as described
in Rule 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB. Deliveries pursuant to this Section 4.10(b)
may be delivered by electronic mail.

 

(c)          The
Servicer shall deliver to the Owner Trustee, the Indenture Trustee and the Rating Agencies, promptly after having obtained knowledge
thereof, but in no event later than five (5) Business Days thereafter, unless such default shall have been cured prior to such
date, written notice in an Officer’s Certificate of any event which with the giving of notice or lapse of time, or both,
would become a Servicer Default under Section 8.01(a) or (b).

 

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Section 4.11         Annual
Independent Certified Public Accountants’ Report. The Servicer shall cause a firm of independent certified public accountants,
who may also render other services to the Servicer or to its Affiliates, to deliver to the Servicer (who shall promptly provide
the assessment described in this Section 4.11(a) to the Rating Agencies), the Indenture Trustee and the Owner Trustee and,
on or before the date that is 90 days after the end of the Servicer’s fiscal year, commencing with the fiscal year ended
December 31, 2016, a report, dated as of December 31 of the preceding fiscal year, addressed to the board of directors of the
Servicer, providing its assessment of compliance with the Servicing Criteria during the preceding fiscal year, including disclosure
of any material instance of non-compliance, as described in Rule 13a-18 or Rule 15d-18 under the Exchange Act and Item 1122(b)
of Regulation AB. Such attestation shall be in accordance with Rule 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities
Act and the Exchange Act. Deliveries pursuant to this Section 4.11(a) may be delivered by electronic mail.

 

Section 4.12         Access
to Certain Documentation and Information Regarding Receivables. The Servicer shall provide to the Certificateholders and Noteholders
access to the Receivable Files in such cases where the Certificateholders or Noteholders shall be required by applicable statutes
or regulations to review such documentation. Access shall be afforded without charge, but only upon reasonable request and during
the normal business hours at the offices of the Servicer. Nothing in this Section shall affect the obligation of the Servicer
to observe any applicable law prohibiting disclosure of information regarding the Obligors and the failure of the Servicer to
provide access to information as a result of such obligation shall not constitute a breach of this Section.

 

Section 4.13         Servicer
Expenses. The Servicer shall be required to pay all expenses incurred by it in connection with its activities hereunder, including
fees and disbursements of independent accountants, taxes imposed on the Servicer and expenses incurred in connection with distributions
and reports to Certificateholders and Noteholders.

 

Section 4.14         Appointment
of Subservicer. The Servicer may at any time appoint a subservicer to perform all or any portion of its obligations as Servicer
hereunder; provided, however, that the Servicer shall remain obligated and be liable to the Issuing Entity,
the Owner Trustee, the Indenture Trustee, the Certificateholders and the Noteholders for the servicing and administering of the
Receivables in accordance with the provisions hereof without diminution of such obligation and liability by virtue of the appointment
of such subservicer and to the same extent and under the same terms and conditions as if the Servicer alone were servicing and
administering the Receivables. The fees and expenses of the subservicer shall be as agreed between the Servicer and its subservicer
from time to time, and none of the Issuing Entity, the Owner Trustee, the Indenture Trustee, the Certificateholders or the Noteholders
shall have any responsibility therefor. The Servicer shall give the Indenture Trustee written notice of any subservicer appointed
hereunder,

 

Section 4.15         Communications
Between Noteholders. The Servicer will comply with its obligations under Section 7.02(e) of the Indenture to include in the
Form 10-D filed by the Issuing Entity with the Commission for the Collection Period the information described in such Section.
The Servicer will bear any costs associated with including any such communication in such Form 10-D.

 

Section 4.16         Exchange
Act Certifications. To the extent permitted by Exchange Act Rules, the Servicer shall prepare, execute, file and deliver on
behalf of the Issuing Entity any certification or other instrument as required by Exchange Act Rules 13a-14 and 15d-14.

 

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ARTICLE V

TRUST ACCOUNTS; DISTRIBUTIONS; STATEMENTS TO CERTIFICATEHOLDERS AND NOTEHOLDERS

 

Section 5.01         Establishment
of Trust Accounts.

 

(a)          (i)
          The Servicer, for the benefit of the Noteholders and the Certificateholders, shall cause to be established and maintained with
and in the name of the Indenture Trustee an Eligible Deposit Account (the “Collection Account”), bearing a designation
clearly indicating that the funds deposited therein are held for the benefit of the Noteholders and the Certificateholders.

 

(ii)         The
Servicer, for the benefit of the Noteholders, shall cause to be established and maintained with and in the name of the Indenture
Trustee an Eligible Deposit Account (the “Note Distribution Account”), bearing a designation clearly indicating
that the funds deposited therein are held for the benefit of the Noteholders.

 

(iii)        The
Servicer, for the benefit of the Noteholders and the Certificateholders, shall cause to be established and maintained with and
in the name of the Indenture Trustee an Eligible Deposit Account (the “Reserve Account”), bearing a designation
clearly indicating that the funds deposited therein are held for the benefit of the Noteholders and the Certificateholders.

 

(b)          Funds
on deposit in the Collection Account, the Note Distribution Account and the Reserve Account (collectively the “Trust Accounts”)
shall be invested by the Indenture Trustee in Eligible Investments selected by the Servicer. In absence of written direction from
the Servicer, such funds shall be invested in Eligible Investments specified in clause (i) of the definition thereof. All
such Eligible Investments shall be held by the Indenture Trustee for the benefit of the Noteholders and the Certificateholders,
as applicable; provided, that on each Payment Determination Date all interest and other Investment Earnings on funds
on deposit in the Trust Accounts shall be deposited into the Collection Account and shall be deemed to constitute a portion of
Available Funds for the related Payment Date. Other than as permitted by the Rating Agencies, funds on deposit in the Collection
Account, the Reserve Account and the Note Distribution Account shall be invested in Eligible Investments that will mature (A) not
later than the Business Day immediately preceding the next Payment Date or (B) on or before 10:00 a.m. on such next Payment Date
if such investment is held in the corporate trust department of the institution with which the Collection Account, the Reserve
Account and the Note Distribution Account, as applicable, is then maintained and is invested either (i) in a time deposit of the
Indenture Trustee rated at least A-1 by S&P Global Ratings and (if rated by Fitch) F-1 by Fitch (such account being maintained
within the corporate trust department of the Indenture Trustee), (ii) in the Indenture Trustee’s common trust fund so long
as such fund is rated in the highest applicable rating category by S&P Global Ratings and (if rated by Fitch) Fitch or (iii)
in Eligible Investments specified in clauses (g) or (i) of the definition thereof; and provided that Eligible Investments
shall be available for redemption and use by the Indenture Trustee on the relevant Payment Date. In no event shall the Indenture
Trustee be held liable for investment losses in Eligible Investments pursuant to this Section 5.01, except in its capacity
as obligor thereunder. Except as otherwise provided hereunder or agreed in writing among the parties hereto, the Servicer shall
retain the authority to institute, participate and join in any plan of reorganization, readjustment, merger or consolidation with
respect to the issuer of any Eligible Investments held hereunder, and, in general, to exercise each and every other power or right
with respect to each such asset or investment as individuals generally have and enjoy with respect to their own assets and investment,
including power to vote upon any securities.

 

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(c)          (i)
           The Indenture Trustee shall possess all right, title and interest in all funds on deposit from time to time in the Trust Accounts
and in all proceeds thereof (including all income thereon) and all such funds, investments, proceeds and income shall be part of
the Trust Estate. The Trust Accounts shall be under the sole dominion and control of the Indenture Trustee for the benefit of the
Noteholders and the Certificateholders, as the case may be. If, at any time, any of the Trust Accounts ceases to be an Eligible
Deposit Account, the Indenture Trustee (or the Servicer on its behalf) shall within 10 Business Days (or such longer period, not
to exceed 30 calendar days, as to which each Rating Agency may consent) establish a new Trust Account as an Eligible Deposit Account
and shall transfer any cash and/or any investments to such new Trust Account. The Indenture Trustee or the other Person holding
the Trust Accounts as provided in this Section 5.01(c)(i) shall be the “Securities Intermediary.” If
the Securities Intermediary shall be a Person other than the Indenture Trustee, the Servicer shall obtain the express agreement
of such Person to the obligations of the Securities Intermediary set forth in this Section 5.01.

 

(ii)          With
respect to the Trust Account Property, the Securities Intermediary agrees, by its acceptance hereof, that:

 

(A)         The
Trust Accounts are accounts to which Financial Assets will be credited.

 

(B)         All
securities or other property underlying any Financial Assets credited to the Trust Accounts shall be registered in the name of
the Securities Intermediary, indorsed to the Securities Intermediary or in blank or credited to another securities account maintained
in the name of the Securities Intermediary and in no case will any Financial Asset credited to any of the Trust Accounts be registered
in the name of the Trust, the Servicer or the Depositor, payable to the order of the Trust, the Servicer or the Depositor or specially
indorsed to the Owner Trustee, the Servicer or the Depositor except to the extent the foregoing have been specially indorsed to
the Securities Intermediary or in blank.

 

(C)         All
property delivered to the Securities Intermediary pursuant to this Agreement will be promptly credited to the appropriate Trust
Account.

 

(D)         Each
item of property (whether investment property, Financial Asset, security, instrument or cash) credited to a Trust Account shall
be treated as a “financial asset” within the meaning of Section 8-102(a)(9) of the New York UCC.

 

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(E)         If
at any time the Securities Intermediary shall receive any order from the Indenture Trustee directing transfer or redemption of
any Financial Asset relating to the Trust Accounts, the Securities Intermediary shall comply with such entitlement order without
further consent by the Trust, the Servicer, the Depositor or any other Person.

 

(F)         The
Trust Accounts shall be governed by the laws of the State of New York, regardless of any provision in any other agreement. For
purposes of the UCC, New York shall be deemed to be the Securities Intermediary’s jurisdiction and the Trust Accounts (as
well as the securities entitlements (as defined in Section 8-102(a)(17) of the UCC) related thereto) shall be governed by the laws
of the State of New York.

 

(G)         The
Securities Intermediary has not entered into, and until the termination of this Agreement will not enter into, any agreement with
any other person relating to the Trust Accounts and/or any Financial Assets credited thereto pursuant to which it has agreed to
comply with entitlement orders (as defined in Section 8-102(a)(8) of the New York UCC) of such other person and the Securities
Intermediary has not entered into, and until the termination of this Agreement will not enter into, any agreement with the Trust,
the Depositor, the Servicer or the Indenture Trustee purporting to limit or condition the obligation of the Securities Intermediary
to comply with entitlement orders as set forth in Section 5.01(c)(ii)(E) hereof.

 

(H)         Except
for the claims and interest of the Indenture Trustee and of the Trust in the Trust Accounts, the Securities Intermediary knows
of no claim to, or interest in, the Trust Accounts or in any Financial Asset credited thereto. If any other person asserts any
lien, encumbrance or adverse claim (including any writ, garnishment, judgment, warrant of attachment, execution or similar process)
against the Trust Accounts or in any Financial Asset carried therein, the Securities Intermediary will promptly notify the Indenture
Trustee, the Servicer and the Trust thereof.

 

(I)          The
Securities Intermediary will promptly send copies of all statements, confirmations and other correspondence concerning the Trust
Accounts and/or any Trust Account Property simultaneously to each of the Servicer and the Indenture Trustee.

 

(iii)        The
Servicer shall have the power, revocable by the Indenture Trustee or by the Owner Trustee with the consent of the Indenture Trustee,
to instruct the Indenture Trustee to make withdrawals and payments from the Trust Accounts for the purpose of permitting the Servicer
or the Owner Trustee to carry out its respective duties hereunder or permitting the Indenture Trustee to carry out its duties under
the Indenture.

 

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Section 5.02         Collections.
The Servicer shall remit to the Collection Account (and post such amounts to its records) within two Business Days of receipt
and identification of payment (including receipt of proper instructions regarding where to allocate such payment) all payments
by or on behalf of the Obligors with respect to the Receivables (other than Purchased Receivables) and all Recoveries, both as
collected during the Collection Period. Notwithstanding the foregoing, for so long as (i) World Omni remains the Servicer, (ii)
no Servicer Default shall have occurred and be continuing and (iii) the Rating Agency Condition is met, the Servicer shall remit
such collections with respect to the preceding calendar month to the Collection Account on the Payment Determination Date immediately
preceding the related Payment Date. For purposes of this Article V the phrase “payments by or on behalf of Obligors”
shall mean payments made with respect to the Receivables by Persons other than the Servicer or the Depositor.

 

Section 5.03         Application
of Collections. With respect to each Receivable (other than a Purchased Receivable), payments by or on behalf of the Obligor
shall be applied to interest and principal in accordance with the Simple Interest Method.

 

Section 5.04         [Reserved].

 

Section 5.05         Additional
Deposits. The Servicer and the Depositor shall deposit or cause to be deposited in the Collection Account the aggregate Purchase
Amount with respect to Purchased Receivables and the Servicer shall deposit therein all amounts to be paid under Section 9.01.
The Servicer will deposit the aggregate Purchase Amount with respect to Purchased Receivables when such obligations are due. All
such deposits shall be made on the Payment Determination Date for the related Collection Period.

 

Section 5.06         Distributions.

 

(i)          On
or prior to the close of business on each Payment Determination Date, the Servicer shall calculate (A) all amounts required to
be deposited in the Note Distribution Account, and (B) all amounts required to be distributed to the Certificateholders.

 

(ii)         Except
as otherwise provided in clause (iii) below, on each Payment Date, the Servicer shall instruct the Indenture Trustee (based
on the information contained in the Servicer’s Certificate delivered on the related Payment Determination Date pursuant to
Section 4.09) to make the following deposits and distributions in the following order of priority, in each case, to the
extent of Available Funds, if any, remaining after application thereof pursuant to prior clauses:

 

(A)         to
the Asset Representations Reviewer, all fees, expenses and indemnities due to the Asset Representations Reviewer under the Asset
Representations Review Agreement and not previously paid by the Servicer, up to a maximum of $150,000 per year;

 

(B)         to
the Note Distribution Account, the Class A Noteholders’ Interest Distributable Amount;

 

(C)         to
the Note Distribution Account, the Noteholders’ First Priority Principal Distributable Amount;

 

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(D)         to
the Note Distribution Account, the Class B Noteholders’ Interest Distributable Amount;

 

(E)         to
the Note Distribution Account, the Noteholders’ Second Priority Principal Distributable Amount;

 

(F)         to
the Reserve Account, the amount necessary to reinstate the balance in the Reserve Account up to the Required Reserve Amount;

 

(G)         to
the Note Distribution Account, an amount equal to the Noteholders’ Principal Distributable Amount minus any amounts allocated
to the Note Distribution Account pursuant to clauses (C) and (E) above;

 

(H)        
to the Asset Representations Reviewer, all fees, expenses and indemnities due to the Asset Representations Reviewer under the Asset
Representations Review Agreement but not paid pursuant to clause (A) above; and

 

(I)           to
the Certificateholders, any remaining amounts; provided the Indenture Trustee has not received written instruction from
the Certificateholders of 100% percentage interest in the Certificates to redeposit all or a portion of such Available Funds due
such Certificateholders into the Collection Account.

 

The Holders of 100% Percentage Interest
of the Certificates will have the right, but not the obligation, in their sole discretion, to instruct the Indenture Trustee in
writing on or prior to the close of business on the related Payment Determination Date to retain in the Collection Account all
or a portion of distributions otherwise payable to them pursuant to clause (I) above. If the Certificateholders make this
election, these amounts will be treated as collections during the then current Collection Period and the Certificateholders will
have no claim to such amounts (unless distributed on a subsequent Payment Date pursuant to clause (I) above).

 

(iii)         In
the event Notes are declared to be due and payable following the occurrence of an Event of Default under the Indenture, Available
Funds will be distributed in the following order or priority:

 

(A)         to
the Owner Trustee, the Indenture Trustee and the Asset Representations Reviewer, all fees, expenses and indemnities due to each
such party in accordance with the terms of the Basic Documents and not previously paid by the Servicer or the Administrator, as
applicable, on a pro rata basis based on amounts due and payable to each party;

 

(B)          to
the Holders of the Class A Notes, the aggregate accrued and unpaid interest on each Class of the Class A Notes;

 

(C)         if
the Notes have been declared to be due and payable as a result of occurrence of an Event of Default under Section 5.01(a)(i)
or (ii) of the Indenture, to the Holders of the Class A-1 Notes, the aggregate Outstanding Amount of such Notes, and then
to the Holders of the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes, pro rata, the aggregate Outstanding Amount
of such Notes;

 

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(D)        to
the Holders of the Class B Notes, the accrued and unpaid interest on the Class B Notes;

 

(E)          if
the Notes have been declared to be due and payable as a result of occurrence of an Event of Default under the Indenture other than
as a result of default in payment of any interest on or principal of any Note in accordance with the Indenture, to the Holders
of the Class A-1 Notes, the aggregate Outstanding Amount of such Notes, and then to the Holders of the Class A-2 Notes, the Class
A-3 Notes and the Class A-4 Notes, pro rata, the aggregate Outstanding Amount of such Notes;

 

(F)        to
the Holders of the Class B Notes, the Outstanding Amount of the Class B Notes; and

 

(G)         to
the Certificateholders, any remaining amounts.

 

Section 5.07          Reserve
Account.

 

(a)          On
the Closing Date, the Indenture Trustee will deposit, on behalf of the Depositor, the Reserve Account Initial Deposit into the
Reserve Account.

 

(b)          If
the amount on deposit in the Reserve Account on any Payment Date (after giving effect to all deposits thereto or withdrawals therefrom
on such Payment Date) is greater than the Required Reserve Amount for such Payment Date, the Servicer shall instruct the Indenture
Trustee to withdraw such amount from the Reserve Account and apply it as Available Funds for such Payment Date.

 

(c)          In
the event that the Total Available Funds for a Payment Date are not sufficient to make the full amount of the payments and deposits
required pursuant to Sections 5.06(ii)(A), (B), (C), (D) and (E) on such Payment Date, the Servicer
shall instruct the Indenture Trustee to withdraw from the Reserve Account on such Payment Date an amount equal to such shortfall,
to the extent of funds available therein, and pay or deposit such amount according to the priorities set forth in Section 5.06(ii).
In addition, amounts will be withdrawn from the Reserve Account as provided in Section 8.02(c) and (d) of the Indenture.

 

(d)          Subject
to Section 9.01, amounts will continue to be applied pursuant to Section 5.06 following payment in full of the Outstanding
Amount of the Notes until the Pool Balance is reduced to zero. Following the payment in full of the aggregate Outstanding Amount
of the Notes and of all other amounts owing or to be distributed hereunder or under the Indenture or the Trust Agreement to Noteholders,
any amount remaining on deposit in the Reserve Account shall be distributed to the Certificateholders.

 

Section 5.08         Statements
to Noteholders and Certificateholders. On or prior to the close of business on each Payment Determination Date, the Servicer
shall provide to the Indenture Trustee (with a copy to the Rating Agencies) for the Indenture Trustee to post on its internet
website pursuant to Section 6.06 of the Indenture, a statement substantially in the form of Exhibit B, setting forth
at least the following information as to the Notes, to the extent applicable:

 

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(a)          the
amount of such distribution allocable to principal allocable to each Class of Notes;

 

(b)          the
amount of such distribution allocable to interest allocable to each Class of Notes;

 

(c)          the
Outstanding Amount of each Class of Notes and the Note Pool Factor for each such Class as of the close of business on the last
day of the preceding Collection Period;

 

(d)          the
amount of the Servicing Fee paid to the Servicer with respect to the related Collection Period, the amount of any unpaid Servicing
Fee and the change in such amount from the prior Payment Date;

 

(e)          the
balance of the Reserve Account on such Payment Determination Date before and after giving effect to deposits and withdrawals to
be made on the immediate following Payment Date, if any;

 

(f)           the
amount, if any, distributed to Noteholders and Certificateholders from amounts on deposit in the Reserve Account or from other
forms of credit enhancement;

 

(g)          the
Pool Balance as of the close of business on the last day of the related Collection Period, before and after giving effect to payments
allocated to principal reported under clause (a) above;

 

(h)          the
Class A Noteholders’ Interest Carryover Shortfall;

 

(i)           the
Class B Noteholders’ Interest Carryover Shortfall;

 

(j)           the
number of Receivables purchased by, and the aggregate Purchase Amount paid by, World Omni or the Servicer with respect to the related
Collection Period;

 

(k)          delinquency
information relating to the Receivables which has a payment of more than $40 that is more than 30, 60, 90 or 120 days delinquent;

 

(l)           the
aggregate amount of Receivables which have become Defaulted Receivables during the preceding Collection Period;

 

(m)         the
amount, if any, distributed to the Certificateholders;

 

(n)          the
Noteholders’ First Priority Principal Distributable Amount;

 

(o)          the
Noteholders’ Second Priority Principal Distributable Amount;

 

(p)          the
Noteholders’ Principal Distributable Amount;

 

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(q)          the
Overcollateralization Target Amount for the immediately following Payment Date;

 

(r)          the
number and dollar amount of Receivables at the beginning and end of the applicable Collection Period, and the weighted average
coupon and weighted average remaining term of the Receivables held by the Trust;

 

(s)          delinquency
and loss information for the applicable Collection Period and any material changes in determining or defining delinquencies, charge-offs
and uncollectible accounts;

 

(t)          material
breaches of pool asset representations and warranties or transaction covenants;

 

(u)          any
material modifications, extensions or waivers relating to the terms of or fees, penalties or payments on, pool assets during the
distribution period or that, cumulatively, have become material over time;

 

(v)          the
Yield Supplement Overcollateralization Amount for the related Payment Date;

 

(w)          a
material change in World Omni or the Depositor’s retained interest in the Notes or Certificates; and

 

(x)          the
Interest Rate for each Class of Notes for the next Payment Date.

 

Each amount set forth on the Payment Date
statement under clauses (a), (b), (h) and (i) above shall be expressed as a dollar amount per $1,000
of original principal amount of a Note. Deliveries pursuant to this Section 5.08 may be delivered by electronic mail.

 

Section 5.09         Net
Deposits. As an administrative convenience, the Servicer will be permitted to make the deposit of collections on the Receivables
and Purchase Amounts for or with respect to the Collection Period net of distributions (including without limitation the Servicing
Fee) to be made to the Servicer with respect to the Collection Period. The Servicer, however, will account to the Owner Trustee,
the Indenture Trustee, the Noteholders and the Certificateholders as if all deposits, distributions and transfers were made individually.

 

Section 5.10         Transfer
of Certificates. In the event any Certificateholder shall wish to transfer such Certificate, the Depositor shall provide to
such Certificateholder and any prospective transferee designated by such Certificateholder information regarding the Certificates
and the Receivables and such other information as shall be necessary to satisfy the condition to eligibility set forth in Rule
144A(d)(4) for transfer of any such Certificate without registration thereof under the Securities Act, pursuant to the exemption
from registration provided by Rule 144A.

 

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ARTICLE VI

THE DEPOSITOR

 

Section 6.01         Representations
of Depositor. The Depositor makes the following representations on which the Issuing Entity is deemed to have relied in acquiring
the Receivables. The representations speak as of the Closing Date, and shall survive the sale of the Receivables to the Issuing
Entity and the pledge thereof to the Indenture Trustee pursuant to the Indenture.

 

(a)          Organization
and Good Standing. The Depositor is duly organized and validly existing as a limited liability company in good standing under
the laws of the State of Delaware, with the requisite power and authority to own its properties and to conduct its business as
such properties are currently owned and such business is presently conducted, and had at all relevant times, and has, the requisite
power, authority and legal right to acquire and own the Receivables.

 

(b)          Due
Qualification. The Depositor is duly qualified to do business as a foreign limited liability company in good standing, and
has obtained all necessary material licenses and approvals, in all jurisdictions in which the ownership or lease of property or
the conduct of its business shall require such qualifications, except where the failure to be so qualified or to have obtained
such licenses or approvals would not have a material adverse effect on the Depositor’s earnings, business affairs or business
prospects.

 

(c)          Power
and Authority. The Depositor has the requisite power and authority to execute and deliver this Agreement and to carry out its
terms; the Depositor has full power and authority to sell and assign the property to be sold and assigned to and deposited with
the Issuing Entity, and the Depositor shall have duly authorized such sale and assignment to the Issuing Entity by all necessary
action; and the execution, delivery and performance of this Agreement has been duly authorized by the Depositor by all necessary
action.

 

(d)          Binding
Obligation. This Agreement constitutes a legal, valid and binding obligation of the Depositor enforceable against the Depositor
in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws, now or hereafter in effect, affecting the enforcement of creditors’ rights in general,
and except as such enforceability may be limited by general principles of equity (whether considered in a suit at law or in equity).

 

(e)          No
Violation. The consummation of the transactions contemplated by this Agreement and the fulfillment of the terms hereof do not
(i) conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of
time) a default under, the limited liability company agreement or bylaws of the Depositor; (ii) breach, conflict with or violate
any of the material terms or provisions of, or constitute (with or without notice or lapse of time) a default under, any indenture,
agreement or other instrument to which the Depositor is a party or by which it is bound; (iii) result in the creation or imposition
of any Lien upon any of its properties pursuant to the terms of any such indenture, agreement or other instrument (other than pursuant
to this Agreement and the Basic Documents); or, (iv) to the best of the Depositor’s knowledge, violate any order, rule or
regulation applicable to the Depositor of any court or of any federal or state regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over the Depositor or its properties except, in the case of clauses (ii),
(iii) and (iv), for such breaches, defaults, conflicts, liens or violations that would not have a material adverse
effect on the Depositor’s earnings, business affairs or business prospects.

 

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(f)          No
Proceedings. To the Depositor’s best knowledge, there are no proceedings or investigations pending or threatened before
any court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Depositor
or its properties: (i) asserting the invalidity of this Agreement, the Indenture or any of the other Basic Documents, the Notes
or the Certificates, (ii) seeking to prevent the issuance of the Notes or the Certificates or the consummation of any of the transactions
contemplated by this Agreement, the Indenture or any of the other Basic Documents, (iii) seeking any determination or ruling that
could reasonably be expected to materially and adversely affect the performance by the Depositor of its obligations under, or the
validity or enforceability of, this Agreement, the Indenture, any of the other Basic Documents, the Notes or the Certificates or
(iv) which could reasonably be expected to adversely affect the federal or state income tax attributes of the Notes or the Certificates.

 

(g)          All
Consents. All authorizations, licenses, consents, orders or approvals of, or registrations or declarations with, any court,
regulatory body, administrative agency or other government instrumentality required to be obtained, effected or given by the Depositor
in connection with the execution and delivery by the Depositor of this Agreement or any of the Basic Documents to which it is a
party and the performance by the Depositor of the transactions contemplated by this Agreement or any of the Basic Documents to
which it is a party, have been duly obtained, effected or given and are in full force and effect, except where failure to obtain
the same would not have a material adverse effect upon the rights of the Trust, the Noteholders or the Certificateholders.

 

Section 6.02         Limited
Liability Company Existence.

 

(a)          During
the term of this Agreement, the Depositor will keep in full force and effect its existence, rights and franchises as a limited
liability company under the laws of the jurisdiction of its formation and will obtain and preserve its qualification to do business
in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of this Agreement,
the Basic Documents and each other instrument or agreement necessary or appropriate to the proper administration of this Agreement
and the transactions contemplated hereby. In addition, all transactions and dealings between the Depositor and its Affiliates will
be conducted on an arm’s-length basis.

 

(b)          During
the term of this Agreement, the Depositor shall observe the applicable legal requirements for the recognition of the Depositor
as a legal entity separate and apart from its affiliates, including the following:

 

(i)          the
Depositor shall maintain limited liability company records and books of account separate from those of its affiliates;

 

(ii)         except
as otherwise provided in this Agreement, the Depositor shall not commingle its assets and funds with those of its affiliates;

 

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(iii)        the
Depositor shall hold such appropriate meetings of its Board of Directors as are necessary to authorize all the Depositor’s
limited liability company actions required by law to be authorized by the Board of Directors, shall keep minutes of such meetings
and observe all other customary limited liability company formalities (and any successor Depositor not a limited liability company
shall observe similar procedures in accordance with its governing documents and applicable law); and

 

(iv)         the
Depositor shall at all times hold itself out to the public under the Depositor’s own name as a legal entity separate and
distinct from its affiliates.

 

Section 6.03         Liability
of Depositor; Indemnities. The Depositor shall be liable in accordance herewith only to the extent of the obligations specifically
undertaken by the Depositor under this Agreement:

 

(a)          The
Depositor shall indemnify, defend and hold harmless the Issuing Entity, the Owner Trustee, the Indenture Trustee and the Servicer
and any of the officers, directors, employees and agents of the Issuing Entity, the Owner Trustee and the Indenture Trustee from
and against any taxes that may at any time be asserted against any such Person with respect to the transactions contemplated herein
and in the Basic Documents, including any sales, gross receipts, general corporation, tangible personal property, privilege or
license taxes (but, in the case of the Issuing Entity, not including any taxes asserted with respect to, and as of the date of,
the sale of the Receivables to the Issuing Entity or the issuance and original sale of the Certificates and the Notes, or asserted
with respect to ownership of the Receivables, or federal or other income taxes arising out of distributions on the Certificates
or the Notes) and costs and expenses in defending against the same.

 

(b)          The
Depositor shall indemnify, defend and hold harmless the Issuing Entity, the Owner Trustee, the Indenture Trustee, the Certificateholders
and the Noteholders and any of the officers, directors, employees and agents of the Issuing Entity, the Owner Trustee and the Indenture
Trustee from and against any loss, liability or reasonable and documented expense incurred by reason of the Depositor’s willful
misfeasance, bad faith or negligence (except for errors in judgment) in the performance of its duties under this Agreement, or
by reason of reckless disregard of its obligations and duties under this Agreement.

 

(c)          The
Depositor shall indemnify, defend and hold harmless the Owner Trustee and the Indenture Trustee and their respective officers,
directors, employees and agents from and against all reasonable and documented cost and expense, and all other losses, claims,
damages and liabilities arising out of or incurred in connection with the acceptance or performance of the trusts and duties herein
and in the Trust Agreement, in the case of the Owner Trustee, and in the Indenture, in the case of the Indenture Trustee, except
to the extent that such cost, expense, loss, claim, damage or liability: (i) in the case of the Owner Trustee, shall be due to
the willful misfeasance, bad faith or negligence (except for errors in judgment) of the Owner Trustee or, in the case of the Indenture
Trustee, shall be due to the willful misfeasance, bad faith or negligence (except for errors in judgment) of the Indenture Trustee
or (ii) in the case of the Owner Trustee, shall arise from the breach by the Owner Trustee of any of its representations or warranties
set forth in Section 7.03 of the Trust Agreement.

 

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(d)          The
Depositor shall pay any and all taxes levied or assessed upon all or any part of the Owner Trust Estate.

 

Indemnification under
this Section shall survive the resignation or removal of the Owner Trustee or the Indenture Trustee and the termination or assignment
of this Agreement and the Trust Agreement and shall include reasonable and documented fees and expenses of counsel and expenses
of litigation (including without limitation, any legal fees, costs and expenses incurred in connection with any enforcement (including
any action, claim, or suit brought) by an indemnified party of any indemnification or other obligation of the Depositor). If the
Depositor shall have made any indemnity payments pursuant to this Section and the Person to or on behalf of whom such payments
are made thereafter shall collect any of such amounts from others, such Person shall promptly repay such amounts to the Depositor,
without interest.

 

Notwithstanding anything
to the contrary contained in this Agreement or any other document, the obligations of the Depositor under this Section 6.03
and Section 7.5 of the Depositor’s Limited Liability Company Agreement are solely the company obligations of the Depositor
and shall be payable by it (x) solely from funds distributed to it in its capacity as Certificateholder available pursuant to,
and in accordance with, the payment priorities set forth in Section 5.06 of this Agreement and (z) only to the extent that
it receives additional funds designated for such purposes or to the extent it has additional funds available (other than funds
described in preceding clause (x)). In addition, no amount owing by the Depositor hereunder or under Section 7.5
of its Limited Liability Company Agreement in excess of the liabilities that it is required to pay in accordance with the preceding
sentence shall constitute a “claim” (as defined in Section 101(5) of the Bankruptcy Code) against it. No recourse
shall be had for the payment of any amount owing hereunder or under Section 7.5 of the Depositor’s Limited Liability
Company Agreement or any other obligation of, or claim against, the Depositor, arising out of or based upon this Section 6.03
or under Section 7.5 of its Limited Liability Company Agreement against any employee, officer, agent, directed or authorized
person of the Depositor; provided, however, that the foregoing shall not relieve any such person or entity of any
liability they might otherwise have as a result of fraudulent actions or omissions taken by them.

 

Section 6.04         Merger
or Consolidation of, or Assumption of Obligations of Depositor. Any Person (a) into which the Depositor may be merged or consolidated,
(b) which may result from any merger or consolidation to which the Depositor shall be a party or (c) which may succeed to the
properties and assets of the Depositor substantially as a whole, which person in any of the foregoing cases executes an agreement
of assumption to perform every obligation of the Depositor under this Agreement, shall be the successor to the Depositor hereunder
without the execution or filing of any document or any further act by any of the parties to this Agreement; provided, however,
that (i) immediately after giving effect to such transaction, no representation or warranty made pursuant to Section 3.01(a)
or (b) shall have been breached and no Servicer Default in respect of the Depositor under Section 8.01(b) or
(c) shall have occurred and be continuing, and no event that, after notice or lapse of time, or both, would become a Servicer
Default in respect of the Depositor under Section 8.01(b) or (c) shall have occurred and be continuing, (ii) the
Depositor shall have delivered to the Owner Trustee and the Indenture Trustee an Officers’ Certificate stating that such
consolidation, merger or succession and such agreement of assumption comply with this Section and that all conditions precedent,
if any, provided for in this Agreement relating to such transaction have been complied with, (iii) the Rating Agency Condition
shall have been satisfied with respect to such transaction and (iv) the Depositor shall have delivered to the Owner Trustee and
the Indenture Trustee an Opinion of Counsel either (A) stating that, in the opinion of such counsel, all financing statements
and continuation statements and amendments thereto have been filed that are necessary fully to preserve and protect the interest
of the Owner Trustee and Indenture Trustee, respectively, in the Receivables and reciting the details of such filings, or (B)
stating that, in the opinion of such counsel, no such action shall be necessary to preserve and protect such interests. Notwithstanding
anything herein to the contrary, (a) the execution of the foregoing agreement of assumption and compliance with clauses (i),
(ii), (iii) and (iv) above shall be conditions to the consummation of the transactions referred to in clause
(a), (b) or (c) above and (b) the Depositor may transfer its rights under this Agreement in accordance with
Section 4.15 hereof.

 

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Section 6.05         Limitation
on Liability of Depositor and Others. The Depositor and any director, officer, employee or agent of the Depositor may rely
in good faith on the advice of counsel or on any document of any kind, prima facie properly executed and submitted by any Person
respecting any matters arising hereunder. The Depositor shall not be under any obligation to appear in, prosecute or defend any
legal action that shall not be incidental to its obligations under this Agreement, and that in its opinion may involve it in any
expense or liability.

 

Section 6.06         Depositor
May Own Notes. The Depositor and any Affiliate thereof may in its individual or any other capacity become the owner or pledgee
of Notes with the same rights as it would have if it were not the Depositor or an Affiliate thereof, except as expressly provided
herein or in any Basic Document.

 

Section 6.07         Security
Interest. During the term of this Agreement, the Depositor will not take any action to assign the security interest in any
Financed Vehicle other than pursuant to the Basic Documents.

 

ARTICLE VII

THE SERVICER

 

Section 7.01         Representations
of Servicer. The Servicer makes the following representations on which the Issuing Entity is deemed to have relied in acquiring
the Receivables. The representations speak as of the Closing Date, and shall survive the sale of the Receivables from time to
time to the Issuing Entity and the pledge thereof to the Indenture Trustee pursuant to the Indenture.

 

(a)          Organization
and Good Standing. The Servicer is duly organized and validly existing as a corporation in good standing under the laws of
the state of its incorporation, with the corporate power and authority to own its properties and to conduct its business as such
properties are currently owned and such business is presently conducted, and had at all relevant times, and has, the corporate
power, authority and legal right to acquire, own, sell and service the Receivables and to hold the Receivable Files as custodian.

 

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(b)          Due
Qualification. The Servicer is duly qualified to do business as a foreign corporation in good standing, and has obtained all
necessary material licenses and approvals, in all jurisdictions in which the ownership or lease of property or the conduct of its
business (including the servicing of the Receivables as required by this Agreement) shall require such qualifications, except where
the failure to be so qualified or to have obtained such licenses or approvals would not have a material adverse effect on the Servicer’s
earnings, business affairs or business prospects.

 

(c)          Power
and Authority. The Servicer has the corporate power and authority to execute and deliver this Agreement and to carry out its
terms; and the execution, delivery and performance of this Agreement have been duly authorized by the Servicer by all necessary
corporate action.

 

(d)          Binding
Obligation. This Agreement constitutes a legal, valid and binding obligation of the Servicer enforceable against the Servicer
in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws, now or hereafter in effect, affecting the enforcement of creditors’ rights in general,
and except as such enforceability may be limited by general principles of equity (whether considered in a suit at law or in equity).

 

(e)          No
Violation. The consummation of the transactions contemplated by this Agreement and the fulfillment of the terms hereof do not
(i) conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of
time) a default under, the articles of incorporation or bylaws of the Servicer; (ii) breach, conflict with or violate any of the
material terms or provisions of, or constitute (with or without notice or lapse of time) a default under, any indenture, agreement
or other instrument to which the Servicer is a party or by which it is bound; (iii) result in the creation or imposition of any
Lien upon any of its properties pursuant to the terms of any such indenture, agreement or other instrument (other than pursuant
to this Agreement and the Basic Documents); or, (iv) to the best of the Servicer’s knowledge, violate any order, rule or
regulation applicable to the Servicer of any court or of any federal or state regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Servicer or its properties except, in the case of clauses (ii), (iii)
and (iv), for such breaches, defaults, conflicts, liens or violations that would not have a material adverse effect on the
Servicer’s earnings, business affairs or business prospects.

 

(f)          No
Proceedings. To the Servicer’s best knowledge, there are no proceedings or investigations pending or threatened before
any court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Servicer or
its properties: (i) asserting the invalidity of this Agreement, the Indenture, any of the other Basic Documents, the Notes or the
Certificates, (ii) seeking to prevent the issuance of the Notes or the Certificates or the consummation of any of the transactions
contemplated by this Agreement, the Indenture or any of the other Basic Documents, (iii) seeking any determination or ruling that
could reasonably be expected to materially and adversely affect the performance by the Servicer of its obligations under, or the
validity or enforceability of, this Agreement, the Indenture, any of the other Basic Documents, the Notes or the Certificates or
(iv) relating to the Servicer and which could reasonably be expected to adversely affect the federal or state income tax attributes
of the Notes or the Certificates.

 

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(g)          Approvals.
All approvals, licenses, authorizations, consents, orders or other actions of any person, corporation or other organization, or
of any court, governmental agency or body or official, required in connection with the execution and delivery of this Agreement
have been or will be taken or obtained on or prior to the Closing Date, except where failure to obtain the same would not have
a material adverse effect upon the rights of the Depositor, the Trust, the Noteholders or the Certificateholders.

 

Section 7.02         Indemnities
of Servicer. The Servicer shall be liable in accordance herewith only to the extent of the obligations specifically undertaken
by the Servicer under this Agreement:

 

(a)          The
Servicer shall indemnify, defend and hold harmless the Issuing Entity, the Owner Trustee, the Indenture Trustee, the Noteholders,
the Certificateholders and the Depositor and any of the officers, directors, employees and agents of the Issuing Entity, the Owner
Trustee and the Indenture Trustee from and against any and all reasonable and documented costs and expenses, and all other losses,
damages, claims and liabilities arising out of or resulting from the use, ownership or operation by the Servicer or any Affiliate
thereof of a Financed Vehicle.

 

(b)          The
Servicer shall indemnify, defend and hold harmless the Issuing Entity, the Owner Trustee, the Indenture Trustee, the Depositor,
the Certificateholders and the Noteholders and any of the officers, directors, employees and agents of the Issuing Entity, the
Owner Trustee and the Indenture Trustee from and against any and all costs, expenses, losses, claims, damages and liabilities to
the extent that such cost, expense, loss, claim, damage or liability arose out of, or was imposed upon any such Person through,
the willful misfeasance, bad faith or negligence (except for errors in judgment) of the Servicer in the performance of its duties
under this Agreement or by reason of reckless disregard of its obligations and duties under this Agreement.

 

For purposes of this
Section, in the event of the termination of the rights and obligations of World Omni (or any successor thereto pursuant to Section
7.03) as Servicer pursuant to Section 8.01, or a resignation by such Servicer pursuant to this Agreement, such Servicer
shall be deemed to be the Servicer pending appointment of a successor Servicer (other than the Indenture Trustee) pursuant to Section
8.02.

 

Indemnification under
this Section shall survive the resignation or removal of the Owner Trustee or the Indenture Trustee or the termination or assignment
of this Agreement and the Trust Agreement and shall include reasonable fees and expenses of counsel and expenses of litigation
(including without limitation any legal fees, costs and expenses incurred in connection with any enforcement (including any action,
claim, or suit brought) by an indemnified party of any indemnification or other obligation of the Servicer). If the Servicer shall
have made any indemnity payments pursuant to this Section and the Person to or on behalf of whom such payments are made thereafter
collects any of such amounts from others, such Person shall promptly repay such amounts to the Servicer, without interest.

 

Section 7.03         Merger
or Consolidation of, or Assumption of Obligations of, Servicer. The Servicer shall not consolidate with or merge into any
other corporation or convey or transfer its properties and assets substantially as an entirety to any Person, unless:

 

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(a)          the
entity formed by such consolidation or into which the Servicer is merged or the Person which acquires by conveyance or transfer
the properties and assets of the Servicer substantially as an entirety shall be an entity organized and existing under the laws
of the United States of America or the District of Columbia and, if the Servicer is not the surviving entity, such entity shall
assume, without the execution or filing of any paper or further act on the part of any of the parties hereto, the performance of
every covenant and obligation of the Servicer hereunder; and

 

(b)          the
Servicer has delivered to the Owner Trustee and the Indenture Trustee and Officer’s Certificate and an Opinion of Counsel
each stating that such consolidation, merger, conveyance or transfer will comply with this Section 7.03 and that all conditions
precedent herein provided for relating to such transaction have been complied with.

 

The Servicer shall provide
notice of any merger, consolidation or succession pursuant to this Section 7.03 to the Rating Agencies, the Owner Trustee,
the Depositor and the Indenture Trustee.

 

Section 7.04         Limitation
on Liability of Servicer and Others. Neither the Servicer nor any of the directors, officers, employees or agents of the Servicer
shall be under any liability to the Issuing Entity, the Noteholders or the Certificateholders, except as provided under this Agreement,
for any action taken or for refraining from the taking of any action pursuant to this Agreement or for errors in judgment; provided,
however, that this provision shall not protect the Servicer or any such person against any liability that would
otherwise be imposed by reason of willful misfeasance, bad faith or negligence in the performance of duties or by reason of reckless
disregard of obligations and duties under this Agreement. The Servicer and any director, officer, employee or agent of the Servicer
may rely in good faith on any document of any kind prima facie properly executed and submitted by any Person respecting any matters
arising under this Agreement.

 

Except as provided in
this Agreement, the Servicer shall not be under any obligation to appear in, prosecute or defend any legal action that shall not
be incidental to its duties to service the Receivables in accordance with this Agreement and that in its opinion may involve it
in any expense or liability; provided, however, that the Servicer may undertake any reasonable action that
it may deem necessary or desirable in respect of this Agreement and the Basic Documents and the rights and duties of the parties
to this Agreement and the Basic Documents and the interests of the Certificateholders under this Agreement and the Noteholders
under the Indenture.

 

Section 7.05         World
Omni Not To Resign as Servicer. Subject to the provisions of Section 7.03, World Omni shall not resign from the obligations
and duties hereby imposed on it as Servicer under this Agreement except upon a determination that the performance of its duties
under this Agreement shall no longer be permissible under applicable law and cannot be cured. Notice of any such determination
permitting the resignation of World Omni shall be communicated to the Owner Trustee and the Indenture Trustee at the earliest
practicable time (and, if such communication is not in writing, shall be confirmed in writing at the earliest practicable time)
and any such determination shall be evidenced by an Opinion of Counsel to such effect delivered to the Owner Trustee and the Indenture
Trustee concurrently with or promptly after such notice. No such resignation shall become effective until the Indenture Trustee
or a successor Servicer shall have assumed the responsibilities and obligations of World Omni in accordance with Section 8.02.

 

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ARTICLE VIII

DEFAULT

 

Section 8.01         Servicer
Default. Any one of the following events shall constitute a default by the Servicer (a “Servicer Default”):

 

(a)          any
failure by the Servicer to deliver to the Indenture Trustee for deposit in any of the Trust Accounts or distribution to the Certificateholders
any required payment or to direct the Indenture Trustee to make any required distributions therefrom, which failure continues unremedied
for a period of five Business Days after written notice of such failure is received by the Servicer from the Owner Trustee or the
Indenture Trustee or after discovery of such failure by an officer of the Servicer; or

 

(b)          failure
by the Servicer or, if the Servicer is an affiliate of the Depositor, the Depositor, as the case may be, duly to observe or to
perform in any material respect any other covenants or agreements of the Servicer or the Depositor (as the case may be) set forth
in this Agreement or any other Basic Document, which failure shall (i) materially and adversely affect the rights of Certificateholders
or Noteholders and (ii) continue unremedied for a period of 60 days after the date on which written notice of such failure, requiring
the same to be remedied, shall have been given (A) to the Servicer or the Depositor (as the case may be) by the Owner Trustee or
the Indenture Trustee or (B) to the Servicer or the Depositor (as the case may be), and to the Owner Trustee and the Indenture
Trustee by the Holders of the Notes evidencing at least a majority of the Outstanding Amount of the Controlling Securities and
the Holders (as defined in the Trust Agreement) of Certificates evidencing at least a majority of the percentage interest of the
Certificates; or

 

(c)          the
occurrence of an Insolvency Event with respect to the Servicer or, if the Servicer is an affiliate of the Depositor, the Depositor.

 

Notwithstanding the foregoing,
a delay in or failure of performance referred to under clause (a) above for a period of ten Business Days or referred to
under clause (b) for a period of 90 Business Days, shall not constitute a Servicer Default if such delay or failure could
not be prevented by the exercise of reasonable diligence by the Servicer and was caused by an act of God or other similar occurrence.
Upon the occurrence of any such event, the Servicer shall not be relieved from using its best efforts to perform its obligations
in a timely manner in accordance with the terms of this Agreement and the Servicer shall provide the Indenture Trustee, the Owner
Trustee, the Noteholders and the Certificateholders prompt notice of such failure or delay by it, together with a description of
its efforts to so perform its obligations.

 

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So long as the Servicer
Default shall not have been remedied or stayed by the application of the above paragraph, either the Indenture Trustee or the Holders
of the Notes evidencing at least a majority of the Outstanding Amount of the Controlling Securities, by notice then given in writing
to the Servicer (and to the Indenture Trustee and the Owner Trustee if given by the Noteholders) may terminate all the rights and
obligations (other than the obligations set forth in Section 7.02 hereof) of the Servicer under this Agreement. On or after
the receipt by the Servicer of such written notice, all authority and power of the Servicer under this Agreement, whether with
respect to the Notes, the Certificates or the Receivables or otherwise, shall, without further action, pass to and be vested in
the Indenture Trustee or such successor Servicer as may be appointed under Section 8.02; and, without limitation, the Indenture
Trustee and the Owner Trustee are hereby authorized and empowered to execute and deliver, for the benefit of the predecessor Servicer,
as attorney-in-fact or otherwise, any and all documents and other instruments, and to do or accomplish all other acts or things
necessary or appropriate to effect the purposes of such notice of termination, whether to complete the transfer and endorsement
of the Receivables and related documents, or otherwise. The predecessor Servicer shall cooperate with the successor Servicer, the
Indenture Trustee and the Owner Trustee in effecting the termination of the responsibilities and rights of the predecessor Servicer
under this Agreement, including the transfer to the successor Servicer for administration by it of all cash amounts that shall
at the time be held by the predecessor Servicer for deposit, or shall thereafter be received by it with respect to any Receivable.
Further, in such event, the Servicer shall use commercially reasonable efforts to effect the orderly and efficient transfer of
the servicing of the Receivables to the successor Servicer, and as promptly as practicable, the Servicer shall provide to the successor
Servicer a current computer tape containing all information from the Receivables Files required for the proper servicing of the
Receivables, together with the documentation containing any and all information necessary for the use of the tape. All reasonable
and documented costs and expenses (including attorneys’ fees) incurred in connection with transferring the Receivable Files
to the successor Servicer and amending this Agreement to reflect such succession as Servicer pursuant to this section shall be
paid by the predecessor Servicer upon presentation of reasonable documentation of such costs and expenses. Upon receipt of notice
of the occurrence of a Servicer Default, the Owner Trustee shall give notice thereof to the Depositor who promptly shall provide
such notice to the Rating Agencies.

 

Section 8.02         Appointment
of Successor.

 

(a)          Upon
the Servicer’s receipt of notice of termination pursuant to Section 8.01 or the Servicer’s resignation in accordance
with the terms of this Agreement, the predecessor Servicer shall continue to perform its functions as Servicer under this Agreement,
in the case of termination, only until the date specified in such termination notice or, if no such date is specified in a notice
of termination, until receipt of such notice and, in the case of resignation, until the later of (i) the date 45 days from the
delivery to the Owner Trustee and the Indenture Trustee of written notice of such resignation (or written confirmation of such
notice) in accordance with the terms of this Agreement and (ii) the date upon which the predecessor Servicer shall become unable
to act as Servicer, as specified in the notice of resignation and accompanying Opinion of Counsel. In the event of the Servicer’s
termination hereunder, the Indenture Trustee shall appoint a successor Servicer, and the successor Servicer shall accept its appointment
by a written assumption in form acceptable to the Owner Trustee and the Indenture Trustee. In the event that a successor Servicer
has not been appointed at the time when the predecessor Servicer has ceased to act as Servicer in accordance with this Section,
the Indenture Trustee without further action shall automatically be appointed the successor Servicer and the Indenture Trustee
shall be entitled to the Servicing Fee. Notwithstanding the above, the Indenture Trustee shall, if it shall be legally unable so
to act, appoint or petition a court of competent jurisdiction to appoint any established institution, having a net worth of not
less than $100,000,000 and whose regular business shall include the servicing of automotive receivables, as the successor to the
Servicer under this Agreement.

 

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(b)          Upon
appointment, the successor Servicer (including the Indenture Trustee acting as successor Servicer) shall be the successor in all
respects to the predecessor Servicer and shall be subject to all the responsibilities, duties and liabilities arising thereafter
relating thereto placed on the predecessor Servicer and shall be entitled to the Servicing Fee and all the rights granted to the
predecessor Servicer by the terms and provisions of this Agreement.

 

(c)          The
successor Servicer may not resign unless it is prohibited from serving as such by law.

 

Section 8.03         Notification
to Noteholders and Certificateholders. Upon any termination of, or appointment of a successor to, the Servicer pursuant to
this Article VIII, the Indenture Trustee shall give prompt written notice thereof to Noteholders, the Certificateholders
and the Depositor who promptly shall provide such notice to the Rating Agencies.

 

Section 8.04         Waiver
of Past Defaults. The Holders of Notes evidencing at least a majority of the Outstanding Amount of the Controlling Securities
may, on behalf of all Noteholders, waive in writing any default by the Servicer in the performance of its obligations hereunder
and its consequences, except a default in making any required deposits to or payments from any of the Trust Accounts or to the
Certificateholders in accordance with this Agreement. Upon any such waiver of a past default, such default shall cease to exist,
and any Servicer Default arising therefrom shall be deemed to have been remedied for every purpose of this Agreement. No such
waiver shall extend to any subsequent or other default or impair any right consequent thereto.

 

Section 8.05         Payment
of Servicing Fees. If the Servicer shall change, the predecessor Servicer shall be entitled to receive any accrued and unpaid
Servicing Fees through the date of such Successor Servicer’s acceptance hereunder in accordance with Section 4.08.

 

ARTICLE IX

TERMINATION

 

Section 9.01         Optional
Purchase of All Receivables.

 

(a)          On
the Payment Date immediately following (and on each Payment Date thereafter) the last day of any Collection Period as of which
the then outstanding aggregate Principal Balance of the Receivables is 10% or less of the Aggregate Starting Principal Balance,
the Servicer shall have the option to purchase the Owner Trust Estate, other than the Trust Accounts. To exercise such option,
the Servicer shall deposit pursuant to Section 5.05 in the Collection Account an amount equal to the aggregate Purchase
Amount for the Receivables (including Defaulted Receivables), and shall succeed to all interests in and to the Trust. Notwithstanding
the foregoing, the Servicer shall not be permitted to exercise such option unless the amount to be deposited in the Collection
Account pursuant to the preceding sentence is greater than or equal to the sum of the Outstanding Amount of the Notes, all accrued
but unpaid interest (including any overdue interest and premium) thereon and all amounts owing by the Issuing Entity to the Asset
Representations Reviewer.

 

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(b)          As
described in Article IX of the Trust Agreement, notice of any termination of the Trust shall be given by the Servicer to
the Owner Trustee and the Indenture Trustee as soon as practicable after the Servicer has received notice thereof.

 

(c)          Following
the satisfaction and discharge of the Indenture and the payment in full of the principal of and interest on the Notes, the Certificateholders
will succeed to the rights of the Noteholders hereunder other than Section 5.07(b) and the Owner Trustee will succeed to
the rights of, but not the obligations of, the Indenture Trustee pursuant to this Agreement.

 

ARTICLE X

MISCELLANEOUS

 

Section 10.01        Amendment.

 

(a)          This
Agreement may be amended by the Depositor, the Servicer and the Issuing Entity, with the consent of the Indenture Trustee, but
without the consent of any of the Noteholders or the Certificateholders, to cure any ambiguity or to correct or supplement any
provisions in this Agreement or for the purpose of adding any provisions to or changing in any manner or eliminating any of the
provisions of this Agreement or of modifying in any manner the rights of the Noteholders or the Certificateholders; provided
that such amendments require: (i) satisfaction of the Rating Agency Condition or (ii) an Officer’s Certificate of the Servicer
delivered to the Issuing Entity, the Owner Trustee and the Indenture Trustee stating that the amendment will not materially and
adversely affect the interest of any Noteholder or Certificateholder.

 

(b)          This
Agreement may also be amended from time to time by the Depositor, the Servicer and the Issuing Entity, with the consent of the
Indenture Trustee, the consent of Holders of Notes evidencing at least a majority of the Outstanding Amount of the Controlling
Securities (unless (i) the interests of the Noteholders are not affected materially and adversely, as evidenced by an Officer’s
Certificate of the Servicer to that effect delivered to the Indenture Trustee by the Depositor or (ii) satisfaction of the Rating
Agency Condition) and the consent of the Holders (as defined in the Trust Agreement) of Certificates evidencing at least a majority
of the percentage interest of the Certificates (unless (i) the interests of the Certificateholders are not affected materially
and adversely and (ii) an Officer’s Certificate of the Servicer to that effect is delivered to the Owner Trustee by the Depositor)
for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or
of modifying in any manner the rights of the Noteholders or the Certificateholders; provided, however, that no such amendment shall
(a) change the date of payment of any installment of principal of or interest on any Note, or reduce the principal amount
thereof, (b) change the provisions of this Sale and Servicing Agreement relating to the application of collections on, or the proceeds
of the sale of, the Trust Estate to payment of principal of or interest on the Notes or (c) reduce the consent percentages in this
sentence, without the consent of the Holders of all outstanding Notes and the Holders (as defined in the Trust Agreement) of all
the outstanding Certificates affected thereby.

 

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(c)          Promptly
after the execution of any such amendment or consent, the Servicer shall furnish written notification of the substance of such
amendment or consent to each Certificateholder, the Indenture Trustee, the Owner Trustee and each of the Rating Agencies.

 

(d)          It
shall not be necessary for the consent of Certificateholders or Noteholders pursuant to this Section to approve the particular
form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof.

 

(e)          Prior
to the execution of any amendment to this Agreement, the Owner Trustee, on behalf of the Issuing Entity, and the Indenture Trustee
shall be entitled to receive and conclusively rely upon an Opinion of Counsel stating that the execution of such amendment is authorized
or permitted by this Agreement and that all conditions precedent thereto have been satisfied, and the Opinion of Counsel referred
to in Section 10.02(h)(A). The Owner Trustee and the Indenture Trustee may, but shall not be obligated to, enter into any
such amendment which affects the Owner Trustee’s or the Indenture Trustee’s, as applicable, own rights, duties or immunities
under this Agreement or otherwise.

 

Section 10.02        Protection
of Title to Trust.

 

(a)          The
Depositor shall file such financing statements and cause to be filed such continuation statements, all in such manner and in such
places as may be required by law fully to preserve, maintain and protect the interest of the Issuing Entity and of the Indenture
Trustee in the Receivables and in the proceeds thereof. The Depositor hereby authorizes the filing of such financing statements
and hereby ratifies any such financing statements filed prior to the date hereof. The Depositor shall deliver (or cause to be delivered)
to the Owner Trustee and the Indenture Trustee file-stamped copies of, or filing receipts for, any document filed as provided above,
as soon as available following such filing.

 

(b)          Neither
the Depositor nor the Servicer shall change its name, identity or corporate structure in any manner that could reasonably be expected
to make any financing statement or continuation statement filed in accordance with paragraph (a) above seriously misleading
within the meaning of Section 9-506 of the UCC, unless it shall have given the Owner Trustee and the Indenture Trustee at least
five days’ prior written notice thereof and shall have promptly filed appropriate amendments to all previously filed financing
statements or continuation statements.

 

(c)          Each
of the Depositor and the Servicer shall have an obligation to give the Owner Trustee and the Indenture Trustee at least 60 days’
prior written notice of any relocation of its principal executive office or a change in its jurisdiction of organization if, as
a result of such relocation or change in its jurisdiction of organization, the applicable provisions of the UCC would require the
filing of any amendment of any previously filed financing or continuation statement or of any new financing statement and shall
promptly file any such amendment or new financing statement. The Servicer shall at all times maintain each office from which it
shall service Receivables, and its principal executive office, within the United States of America.

 

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(d)          The
Servicer shall maintain accounts and records as to each Receivable accurately and in sufficient detail to permit (i) the reader
thereof to know at any time the status of such Receivable, including payments and recoveries made and payments owing (and the nature
of each) and (ii) reconciliation between payments or recoveries on (or with respect to) each Receivable and the amounts from time
to time deposited in the Collection Account in respect of such Receivable.

 

(e)          The
Servicer shall maintain its computer systems so that, within five (5) Business Days from and after the time of sale under this
Agreement of the Receivables, the Servicer’s master computer records (including any backup archives) that refer to a Receivable
shall indicate clearly that such Receivable has been sold to the Issuing Entity.

 

(f)          If
at any time the Depositor or the Servicer shall propose to sell, grant a security interest in, or otherwise transfer any interest
in automotive receivables to any prospective purchaser, lender or other transferee, the Servicer shall give to such prospective
purchaser, lender or other transferee computer tapes, records or printouts (including any restored from backup archives) that,
if they shall refer in any manner whatsoever to any Receivable, shall indicate clearly that such Receivable has been sold and is
owned by the Issuing Entity and has been pledged to the Indenture Trustee.

 

(g)          Upon
request, the Servicer shall furnish to the Owner Trustee or to the Indenture Trustee, within five Business Days, a list of all
Receivables (by contract number and name of Obligor) then held as part of the Trust.

 

(h)          The
Servicer shall deliver to the Owner Trustee and the Indenture Trustee:

 

(A)         promptly
after the execution and delivery of this Agreement, an Opinion of Counsel stating that, in the opinion of such counsel, either
(1) all financing statements and continuation statements have been filed that are necessary fully to preserve and protect the interest
of the Trust and the Indenture Trustee in the Receivables, and reciting the details of such filings or referring to prior Opinions
of Counsel in which such details are given, or (2) no such action shall be necessary to preserve and protect such interest other
than any action necessary (as of the date of such opinion) to be taken in the following year to preserve and protect such interest;
and

 

(B)         on
or before March 31, in each calendar year, beginning in 2017, an Opinion of Counsel, dated as of a date during such 90-day period,
stating that, in the opinion of such counsel, either (1) all financing statements and continuation statements have been filed that
are necessary fully to preserve and protect the interest of the Trust and the Indenture Trustee in the Receivables, and reciting
the details of such filings or referring to prior Opinions of Counsel in which such details are given, or (2) no such action shall
be necessary to preserve and protect such interest other than any action necessary (as of the date of such opinion) to be taken
in the following year to preserve and protect such interest.

 

Each Opinion of Counsel
referred to in clause (A)(2) or (B)(2) above shall specify any action necessary (as of the date of such opinion)
to be taken in the following year to preserve and protect such interest.

 

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(i)           The
Depositor shall, to the extent required by applicable law, cause the Notes to be registered with the Commission pursuant to Section
12(b) or Section 12(g) of the Exchange Act within the time periods specified in such sections.

 

(j)           The
Servicer shall deliver to the Owner Trustee and the Indenture Trustee, prior to any change in the location of the Receivable Files,
an Opinion of Counsel stating that, in the opinion of such counsel, either (i) all financing statements and continuation statements
have been filed that are necessary fully to preserve and protect the interest of the Trust and the Indenture Trustee in the Receivables,
and reciting the details of such filings or referring to prior Opinions of Counsel in which such details are given, or (ii) no
such action shall be necessary to preserve and protect such interest.

 

Section 10.03       Notices.
All demands, deliveries, notices, communications and instructions upon or to the Depositor, the Servicer, the Owner Trustee, the
Indenture Trustee or the Rating Agencies under this Agreement shall be by facsimile, in writing, personally delivered or mailed
by certified mail, return receipt requested, and shall be deemed to have been duly given upon receipt or by electronic mail (if
designated by such party to the other parties) (a) in the case of the Depositor, to World Omni Auto Receivables LLC, 190 Jim Moran
Boulevard, Deerfield Beach, Florida 33442, Telecopy: (954) 429-2685, Attention: Treasurer, (b) in the case of the Servicer, World
Omni Financial Corp., 190 Jim Moran Boulevard, Deerfield Beach, Florida 33442, Telecopy: (954) 429-2685, Attention: Treasurer,
(c) in the case of the Issuing Entity or the Owner Trustee, at its Corporate Trust Office, Telecopy: (302) 575-2006, Email: Tracy.M.McLamb@wellsfargo.com,
(d) in the case of the Indenture Trustee, at its Corporate Trust Office, Telecopy: (866) 807-8670, Email: christopher.nuxoll@usbank.com,
and (e) in the case of the Rating Agencies, to the Depositor who promptly shall post such notice to the website maintained by
the Depositor for notifications to nationally recognized statistical rating organizations; or, as to each of the foregoing, at
such other address or electronic mail address as shall be designated by written notice to the other parties; provided,
that, so long as World Omni is the Servicer, the Servicer’s obligation to deliver or provide any demand, delivery,
notice, communication or instruction (including the Servicer’s Certificate) to any Person other than a Noteholder shall
be satisfied by the Servicer making such demand, delivery, notice, communication or instruction available at https://via.intralinks.com/,
or such other website or distribution service or provider as the Servicer shall designate by written notice to the other parties.

 

Section 10.04       Assignment
by the Depositor or the Servicer. Notwithstanding anything to the contrary contained herein, except as provided in the remainder
of this Section, as provided in Sections 6.04 and 7.03 herein and as provided in the provisions of this Agreement
concerning the resignation of the Servicer, this Agreement may not be assigned by the Depositor or the Servicer.

 

Section 10.05       Limitations
on Rights of Others. The provisions of this Agreement are solely for the benefit of the Depositor, the Servicer, the Issuing
Entity, the Owner Trustee, the Certificateholders, the Indenture Trustee and the Noteholders, and nothing in this Agreement, whether
express or implied, shall be construed to give to any other Person any legal or equitable right, remedy or claim in the Owner
Trust Estate or under or in respect of this Agreement or any covenants, conditions or provisions contained herein.

 

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Section 10.06         Severability.
Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

Section 10.07         Separate
Counterparts. This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed
and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.

 

Section 10.08         Headings.
The headings of the various Articles and Sections herein are for convenience of reference only and shall not define or limit any
of the terms or provisions hereof.

 

Section 10.09         Governing
Law. This Agreement shall be construed in accordance with the laws of the State of New York, without regard to any otherwise
applicable conflict of law provisions, and the obligations, rights and remedies of the parties hereunder shall be determined in
accordance with such laws.

 

Section 10.10         Assignment
by Issuing Entity. Each of World Omni and the Depositor hereby acknowledges and consents to any mortgage, pledge, assignment
and grant of a security interest by the Issuing Entity to the Indenture Trustee pursuant to the Indenture for the benefit of the
Noteholders of all right, title and interest of the Issuing Entity in, to and under the Receivables and/or the assignment of any
or all of the Issuing Entity’s rights and obligations hereunder to the Indenture Trustee.

 

Section 10.11         Nonpetition
Covenants.

 

(a)          Notwithstanding
any prior termination of this Agreement, the Servicer and the Depositor shall not, prior to the date which is one year and one
day after the termination of this Agreement with respect to the Issuing Entity, acquiesce, petition or otherwise invoke or cause
the Issuing Entity to invoke the process of any court or government authority for the purpose of commencing or sustaining a case
against the Issuing Entity under any federal or state bankruptcy, insolvency or similar law, or appointing a receiver, liquidator,
assignee, trustee, custodian, sequestrator or other similar official of the Issuing Entity or any substantial part of their property,
or ordering the winding up or liquidation of the affairs of the Issuing Entity.

 

(b)          Notwithstanding
any prior termination of this Agreement, the Servicer, solely in its capacity as a creditor of the Depositor, shall not, prior
to the date which is one year and one day after the termination of this Agreement with respect to the Depositor, acquiesce, petition
or otherwise invoke the process of any court or government authority for the purpose of commencing or sustaining an involuntary
case against the Depositor under any federal or state bankruptcy, insolvency or similar law, or appointing a receiver, liquidator,
assignee, trustee, custodian, sequestrator or other similar official of the Depositor or any substantial part of its property,
or ordering the winding up or liquidation of the affairs of the Depositor.

 

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(c)          In
the event that any Person (other than the Depositor) is deemed, under applicable law by any court or other authority of competent
jurisdiction, to have an interest in any assets of the Depositor or any Affiliate of the Depositor other than the beneficial interest
in the Trust (“other assets”), the parties to this Agreement acknowledge and agree that: (i) such Person’s
claim is against the assets of the Trust and the Trust Estate only, (ii) such Person’s claim against any other assets shall
be, and hereby is, subject and subordinate in all respects to the rights of other Persons to whom rights in the other assets have
been expressly granted (“entitled Persons”), including to the payment in full of all amounts owing to such entitled
Persons, and (iii) the covenant set forth in the preceding clause (ii) constitutes a “subordination agreement”
within the meaning of, and subject to, Section 510(a) of the Bankruptcy Code.

 

Section 10.12        Limitation
of Liability of Owner Trustee and Indenture Trustee.

 

(a)          It
is expressly understood and agreed by the parties hereto that (i) this Agreement is executed and delivered by the Trustee Bank,
not individually or personally but solely as Owner Trustee, in the exercise of the powers and authority conferred and vested in
it under the Trust Agreement, (ii) each of the representations, undertakings and agreements herein made on the part of the Issuing
Entity is made and intended not as personal representations, undertakings and agreements by the Trustee Bank, but is made and intended
for the purpose of binding only the Issuing Entity, (iii) nothing herein contained shall be construed as creating any liability
on the Trustee Bank, individually or personally, to perform any covenant of the Issuing Entity, either expressed or implied, contained
herein, all such liability of the Trustee Bank in its individual or personal capacity, if any, being expressly waived by the parties
hereto and by any person claiming by, through or under the parties hereto, (iv) the Trustee Bank has made no investigation into
the accuracy or completeness of any representations or warranties made by the Issuing Entity in this Agreement, and (v) under no
circumstances shall the Trustee Bank be personally liable for the payment of any indebtedness or expenses of the Issuing Entity
under this Agreement or any other related documents.

 

(b)          Notwithstanding
anything contained herein to the contrary, this Agreement has been accepted by U.S. Bank National Association, not in its individual
capacity but solely as Indenture Trustee and in no event shall U.S. Bank National Association have any liability for the representations,
warranties, covenants, agreements or other obligations of the Issuing Entity hereunder or in any of the certificates, notices or
agreements delivered pursuant hereto, as to all of which recourse shall be had solely to the assets of the Issuing Entity. For
all purposes of this Agreement, the Indenture Trustee shall be entitled to all rights, privileges, benefits, protections, immunities,
and indemnities provided to it under the Indenture.

 

Section 10.13       Regulation
AB. The Depositor and the Servicer acknowledge and agree that the purpose of this Section 10.13 is to facilitate compliance
by the Depositor with the provisions of Regulation AB and the related rules and regulations of the Commission. The Depositor shall
not exercise its right to request delivery of information or other performance under these provisions other than in good faith,
or for purposes other than compliance with the Securities Act, the Exchange Act and the rules and regulations of the Commission
under the Securities Act and the Exchange Act. The Servicer acknowledges that interpretations of the requirements of Regulation
AB may change over time, whether due to interpretive guidance provided by the Commission or its staff, consensus among participants
in the asset-backed securities markets, advice of counsel, or otherwise, and the Servicer agrees to comply with all reasonable
requests made by the Depositor in good faith for delivery of information and shall deliver (and shall cause each of its Reporting
Subcontractors to deliver) to the Depositor all information and certifications reasonably required by the Depositor to comply
with its Exchange Act reporting obligations, including with respect to any of its predecessors or successors. The obligations
of a Servicer to provide such information shall survive the removal or termination of a Servicer as Servicer hereunder.

 

     42

     

    

 

Section 10.14        Notices
to the Rating Agencies. If World Omni is no longer the Servicer, the successor Servicer shall provide any required Rating
Agency notices under this Agreement to the Depositor, who promptly shall provide such notices to the Rating Agencies.

 

     43

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed by their respective officers as of the day and year first above written.

 

	 	WORLD OMNI AUTO RECEIVABLES TRUST 2016-B
	 	 
	 	by:  Wells Fargo Delaware Trust Company, N.A.,
	 	not in its individual capacity
	 	but solely as Owner Trustee,
	 	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 	 
	 	WORLD OMNI AUTO RECEIVABLES LLC,
	 	as Depositor
	 	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 	 
	 	WORLD OMNI FINANCIAL CORP., as Servicer, and, with respect to Sections 3.01 and 3.02, individually
	 	 	 
	 	By:	 
	 	Name:
	 	Title:

 

     44

     

    

 

	Acknowledged and agreed to as of the day	 
	and year first above written:	 
	 	 
	U.S. BANK NATIONAL ASSOCIATION	 
	not in its individual capacity but solely as	 
	Indenture Trustee	 
	 	 	 
	By:	 	 
	Name:	 
	Title:	 

 

 

     45

     

    

 

SCHEDULE A

 

Schedule of Receivables

 

Documents on file at:

 

Kirkland & Ellis LLP

300 North LaSalle Street

Chicago, Illinois 60654

 

    Sch. A

     

    

 

SCHEDULE B

Location of Receivable Files

World Omni Financial Corp.

6150 Omni Park Drive

Mobile, Alabama 36609

 

RecordMax LLC

2051 West I-65 Service Rd. N.

Mobile, AL 36618

 

HP Enterprise Services
LLC

5400 Legacy Dr

Plano, TX 75024

 

RouteOne LLC

31500 Northwestern Hwy Ste 200

Farmington Hills, MI 48334

 

    Sch. B

     

    

 

EXHIBIT A

 

Form of Distribution Statement to Noteholders

 

World Omni Financial Corp.

 

World Omni Auto Receivables Trust 2016-B Payment Date Statement
to Noteholders

 

Total Available Funds

 

	Class A-1 Notes:	($_______ per $1,000 original principal amount)
	Class A-2 Notes:	($_______ per $1,000 original principal amount)
	Class A-3 Notes:	($_______ per $1,000 original principal amount)
	Class A-4 Notes:	($_______ per $1,000 original principal amount)  
	Class B Notes:	($_______ per $1,000 original principal amount)

 

Outstanding Amount

Class A-1 Notes

Class A-2 Notes

Class A-3 Notes

Class A-4 Notes

Class B Notes

 

Note Pool Factor

Class A-1 Notes

Class A-2 Notes

Class A-3 Notes

Class A-4 Notes

Class B Notes

 

Servicing Fee 

Servicing Fee Per $1,000 Note

 

Reserve Account Balance

 

    Ex. A

     

    

 

EXHIBIT B

Form of Servicer’s Certificate

 

World Omni Financial Corp.

World Omni Auto Receivables Trust 2016-B Monthly Servicer’s Certificate

 

	World Omni Auto Receivables Trust 2016-B	 	 	 	 	 
	Monthly Servicer Certificate	 	 	 	 	 
	mm/dd/yyyy	 	 	 	 	 
	 	 	 	 	 	 
	Dates Covered	 	 	 	 	 
	Collections Period	 	 	 	 	 
	Interest Accrual Period	 	 	 	 	 
	30/360 Days	 	 	 	 	 
	Actual/360 Days	 	 	 	 	 
	Distribution Date	 	 	 	 	 
	 	 	 	 	 	 
	Collateral Pool Balance Data	 	$ Amount	 	# of Accounts	 
	Pool Balance at mm/dd/yy	 	 	 	 	 
	Yield Supplement Overcollateralization Amount at mm/dd/yy	 	 	 	 	 
	Receivables Balance at mm/dd/yy	 	 	 	 	 
	Principal Payments	 	 	 	 	 
	Defaulted Receivables	 	 	 	 	 
	Repurchased Accounts	 	 	 	 	 
	Yield Supplement Overcollateralization Amount at mm/dd/yy	 	 	 	 	 
	Pool Balance at mm/dd/yy	 	 	 	 	 
	 	 	 	 	 	 
	Pool Statistics	 	$
    Amount	 	#
    of Accounts	  
	Pool Factor	 	 	 	 	 
	Prepayment ABS Speed	 	 	 	 	 
	Aggregate Starting Principal Balance	 	 	 	 	 
	Pre-Funding Contracts added mm/dd/yy	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	Delinquent Receivables:	 	 	 	 	 
	Past Due 31-60 days	 	 	 	 	 
	Past Due 61-90 days	 	 	 	 	 
	Past Due 91-120 days	 	 	 	 	 
	Past Due 121 + days	 	 	 	 	 
	 Total     	 	 	 	 	 

 

    Ex. B-1

     

    

 

	Total 31+ Delinquent as % Ending Pool Balance	 	 	 	 	 
	Total 61+ Delinquent as % Ending Pool Balance	 	 	 	 	 
	Delinquency Trigger Occurred	 	 	 	[Yes/No]	 
	 	 	 	 	 	 
	Recoveries	 	 	 	 	 
	 	 	 	 	 	 
	Aggregate Net Losses/(Gains) - mm/yyyy	 	 	 	 	 
	Ratio of Net Loss to the Receivables Balance as of beginning of Collection period (Annualized)	 	 	 	 	 
	Current Net Loss Ratio	 	 	 	 	 
	Prior Period Net Loss Ratio	 	 	 	 	 
	Second Prior Period Net Loss Ratio	 	 	 	 	 
	Third Prior Period Net Loss Ratio	 	 	 	 	 
	Four Month Average	 	 	 	 	 
	 	 	 	 	 	 
	Cumulative Net Loss as a % of Aggregate Starting Principal Balance	 	 	 	 	 
	 	 	 	 	 	 
	Overcollateralization Target Amount	 	 	 	 	 
	Actual Overcollateralization	 	 	 	 	 
	Weighted Average APR	 	 	 	 	 
	Weighted Average APR, Yield Adjusted	 	 	 	 	 
	Weighted Average Remaining Term 	 	 	 	 	 
	 	 	 	 	 	 
	Flow of Funds	 	$ Amount	 	 	 
	 	 	 	 	 	 
	Collections	 	 	 	 	 
	Investment Earnings on Cash Accounts	 	 	 	 	 
	Servicing Fee	 	 	 	 	 
	Transfer to Collection Account	 	 	 	 	 
	Available Funds	 	 	 	 	 
	 	 	 	 	 	 
	Distributions of Available Funds	 	 	 	 	 
	    (1) Asset Representation Reviewer Amounts (up to $150,000 per year)	 	 	 	 	 
	    (2)  Class A Interest	 	 	 	 	 
	    (3)  Noteholders’ First Priority Principal Distributable Amount	 	 	 	 	 
	    (4)  Class B Interest	 	 	 	 	 

 

    Ex. B-2

     

    

 

	    (5)  Noteholders’ Second Priority Principal Distributable Amount	 	 	 	 	 
	    (6)  Required Reserve Amount	 	 	 	 	 
	    (7) Noteholders’ Principal Distributable Amount	 	 	 	 	 
	    (8)  Asset Representation Reviewer Amounts (in excess of 1)	 	 	 	 	 
	    (9)  Distribution to Certificateholders	 	 	 	 	 
	 	 	 	 	 	 
	Total Distributions of Available Funds	 	 	 	 	 
	 	 	 	 	 	 
	Servicing Fee	 	 	 	 	 
	Unpaid Servicing Fee	 	 	 	 	 
	Change in amount of Unpaid Servicing Fee from the prior period	 	 	 	 	 
	 	 	 	 	 	 
	Note Balances & Note Factors	 	$ Amount	 	 	 
	 	 	 	 	 	 
	Original Class A	 	 	 	 	 
	Original Class B	 	 	 	 	 
	 	 	 	 	 	 
	Total Class A & B	 	 	 	 	 
	Note Balance @ mm/dd/yy 	 	 	 	 	 
	Principal Paid	 	 	 	 	 
	Note Balance @ mm/dd/yy	 	 	 	 	 
	 	 	 	 	 	 
	Class A-1	 	 	 	 	 
	Note Balance @ mm/dd/yy 	 	 	 	 	 
	Principal Paid	 	 	 	 	 
	Note Balance @ mm/dd/yy	 	 	 	 	 
	Note Factor @ mm/dd/yy	 	 	 	 	 
	 	 	 	 	 	 
	Class A-2	 	 	 	 	 
	Note Balance @ mm/dd/yy 	 	 	 	 	 
	Principal Paid	 	 	 	 	 
	Note Balance @ mm/dd/yy	 	 	 	 	 
	Note Factor @ mm/dd/yy	 	 	 	 	 
	 	 	 	 	 	 
	Class A-3	 	 	 	 	 
	Note Balance @ mm/dd/yy 	 	 	 	 	 
	Principal Paid	 	 	 	 	 
	Note Balance @ mm/dd/yy	 	 	 	 	 
	Note Factor @ mm/dd/yy	 	 	 	 	 

 

    Ex. B-3

     

    

 

	Class A-4	 	 	 	 	 
	Note Balance @ mm/dd/yy 	 	 	 	 	 
	Principal Paid	 	 	 	 	 
	Note Balance @ mm/dd/yy	 	 	 	 	 
	Note Factor @ mm/dd/yy	 	 	 	 	 
	 	 	 	 	 	 
	Class B	 	 	 	 	 
	Note Balance @ mm/dd/yy 	 	 	 	 	 
	Principal Paid	 	 	 	 	 
	Note Balance @ mm/dd/yy	 	 	 	 	 
	Note Factor @ mm/dd/yy	 	 	 	 	 
	 	 	 	 	 	 
	Interest & Principal Payments	 	$ Amount	 	 	 
	 	 	 	 	 	 
	Total Interest Paid	 	 	 	 	 
	Total Principal Paid	 	 	 	 	 
	Total Paid	 	 	 	 	 
	 	 	 	 	 	 
	Class A-1	 	 	 	 	 
	Coupon	 	 	 	 	 
	Interest Paid	 	 	 	 	 
	Principal Paid	 	 	 	 	 
	Total Paid to A-1 Holders	 	 	 	 	 
	 	 	 	 	 	 
	Class A-2	 	 	 	 	 
	Coupon	 	 	 	 	 
	Interest Paid	 	 	 	 	 
	Principal Paid	 	 	 	 	 
	Total Paid to A-2 Holders	 	 	 	 	 
	 	 	 	 	 	 
	Class A-3	 	 	 	 	 
	Coupon	 	 	 	 	 
	Interest Paid	 	 	 	 	 
	Principal Paid	 	 	 	 	 
	Total Paid to A-3 Holders	 	 	 	 	 

 

    Ex. B-4

     

    
	 	 	 	 	 	 
	Class A-4	 	 	 	 	 
	Coupon	 	 	 	 	 
	Interest Paid	 	 	 	 	 
	Principal Paid	 	 	 	 	 
	Total Paid to A-4 Holders	 	 	 	 	 
	 	 	 	 	 	 
	Class B	 	 	 	 	 
	Coupon	 	 	 	 	 
	Interest Paid	 	 	 	 	 
	Principal Paid	 	 	 	 	 
	Total Paid to B Holders	 	 	 	 	 
	 	 	 	 	 	 
	Distribution per $1,000 of Notes	 	Total	 	 	 
	 	 	 	 	 	 
	Total Interest Distribution Amount	 	 	 	 	 
	Total Interest Carryover Shortfall	 	 	 	 	 
	Total Principal Distribution Amount	 	 	 	 	 
	Total Distribution Amount	 	 	 	 	 
	 	 	 	 	 	 
	A-1 Interest Distribution Amount	 	 	 	 	 
	A-1 Interest Carryover Shortfall	 	 	 	 	 
	A-1 Principal Distribution Amount	 	 	 	 	 
	Total A-1 Distribution Amount	 	 	 	 	 
	 	 	 	 	 	 
	A-2 Interest Distribution Amount	 	 	 	 	 
	A-2 Interest Carryover Shortfall	 	 	 	 	 
	A-2 Principal Distribution Amount	 	 	 	 	 
	Total A-2 Distribution Amount	 	 	 	 	 
	 	 	 	 	 	 
	A-3 Interest Distribution Amount	 	 	 	 	 
	A-3 Interest Carryover Shortfall	 	 	 	 	 
	A-3 Principal Distribution Amount	 	 	 	 	 
	Total A-3 Distribution Amount	 	 	 	 	 
	 	 	 	 	 	 
	A-4 Interest Distribution Amount	 	 	 	 	 
	A-4 Interest Carryover Shortfall	 	 	 	 	 
	A-4 Principal Distribution Amount	 	 	 	 	 
	Total A-4 Distribution Amount	 	 	 	 	 

    Ex. B-5

     

    

 

	B Interest Distribution Amount	 	 	 	 	 
	B Interest Carryover Shortfall	 	 	 	 	 
	B Principal Distribution Amount	 	 	 	 	 
	Total B Distribution Amount	 	 	 	 	 
	 	 	 	 	 	 
	Noteholders’ First Priority Principal Distributable Amount	 	 	 	 	 
	Noteholders’ Second Priority Principal Distributable Amount	 	 	 	 	 
	Noteholders’ Principal Distributable Amount	 	 	 	 	 

 

    Ex. B-6

     

    
	 	 	 	 	 	 
	Account Balances	 	$ Amount	 	 	 
	 	 	 	 	 	 
	Reserve Account	 	 	 	 	 
	Balance as of  mm/dd/yy	 	 	 	 	 
	Investment Earnings	 	 	 	 	 
	Investment Earnings paid	 	 	 	 	 
	Deposit (Withdrawal)	 	 	 	 	 
	Balance as of  mm/dd/yy	 	 	 	 	 
	Change	 	 	 	 	 
	 	 	 	 	 	 
	Required Reserve Amount	 	 	 	 	 

  

    Ex. B-7

     

    

 

EXHIBIT
C

Form of SSA Assignment

 

As of September 14,
2016, for value received, in accordance with the Sale and Servicing Agreement, dated as of the date hereof (the “Sale
and Servicing Agreement”), among World Omni Auto Receivables LLC, a Delaware limited liability company (the “Depositor”),
World Omni Auto Receivables Trust 2016-B (the “Issuing Entity”) and World Omni Financial Corp., a Florida corporation,
(the “Servicer”), as acknowledged and accepted by U.S. Bank National Association, as Indenture Trustee, the
Depositor does hereby sell, assign, transfer and otherwise convey unto the Issuing Entity, without recourse, all right,
title and interest of the Depositor in, to and under (a) the Receivables identified on the Schedule of Receivables attached hereto
having an aggregate Starting Principal Balance of $1,010,382,244.86 and all monies received thereon and in respect thereof after
the Cutoff Date; (b) the security interests in, and the liens on, the Financed Vehicles granted by Obligors in connection with
the Receivables and any other interest of the Depositor in such Financed Vehicles; (c) any proceeds with respect to the Receivables
from claims on any physical damage, credit life or disability insurance policies covering such Financed Vehicles or Obligors; (d)
any Financed Vehicle that shall have secured an Receivable and shall have been acquired by or on behalf of the Depositor, the Servicer
or the Trust; (e) all funds on deposit in, and “financial assets” (as such term is defined in the Uniform Commercial
Code as from time to time in effect) credited to, the Trust Accounts, including the Reserve Account, from time to time, including
the Reserve Account Initial Deposit, and in all investments and proceeds thereof (including all income thereon); (f) the Receivables
Purchase Agreement; (g) all “accounts,” “chattel paper,” “general intangibles” and “promissory
notes” (as such terms are defined in the Uniform Commercial Code as from time to time in effect) constituting or relating
to the foregoing; and (h) the proceeds of any and all of the foregoing; provided, however, that the foregoing
items (a) through (h) shall not include the Notes and Certificates.

 

The foregoing sale
does not constitute and is not intended to result in any assumption by the Issuing Entity of any obligation of the undersigned
to the Obligors, Dealers, insurers or any other Person in connection with the Receivables, the agreements with Dealers, any insurance
policies or any agreement or instrument relating to any of them.

 

This SSA Assignment
is made pursuant to and upon the representations, warranties and agreements on the part of the undersigned contained in the Sale
and Servicing Agreement and is to be governed by the Sale and Servicing Agreement.

 

Capitalized terms used
herein and not otherwise defined shall have the meaning assigned to them in the Sale and Servicing Agreement.

 

* * * * *

 

    Ex. C-1

     

    

 

IN WITNESS WHEREOF, the
undersigned has caused this SSA Assignment to be duly executed as of the day and year first above written.

 

	 	WORLD OMNI AUTO RECEIVABLES LLC
	 	 	 
	 	By:	 
	 	Name:  	 
	 	Title:	 

 

    Ex. C-2

     

    

  

APPENDIX A

PART I - DEFINITIONS

 

All terms used in this Appendix shall have
the defined meanings set forth in this Part I when used in the Basic Documents, unless otherwise defined therein.

 

“Accredited Investor”
has the meaning assigned in Section 2.04(e) of the Indenture.

 

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

 

“Administration
Agreement” means the Administration Agreement, dated as of the Closing Date, among the Administrator, the Issuing Entity,
the Depositor and the Indenture Trustee, as amended from time to time.

 

“Administrator”
means World Omni, or any successor Administrator under the Administration Agreement.

 

“ADR Organization”
means The American Arbitration Association or, if The
American Arbitration Association no longer exists or if its ADR Rules would no longer permit mediation or arbitration, as
applicable, of the dispute, another nationally recognized mediation or arbitration organization selected by World Omni.

 

“ADR Rules”
means the relevant rules of the ADR Organization for mediation (including non-binding arbitration) or binding arbitration, as applicable,
of commercial disputes in effect at the time of the mediation or arbitration.

 

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

 

“Aggregate Starting
Principal Balance” means as of any date of determination, the aggregate of the Starting Principal Balances of the Receivables
as of the Cutoff Date, which is equal to the Initial Aggregate Starting Principal Balance.

 

“Amount Financed”
means, with respect to a Receivable, the amount advanced under the Receivable toward the purchase price of the Financed Vehicle,
warranty or insurance premium and any related costs.

 

“Annual Percentage
Rate” or “APR” of a Receivable means the annual rate of finance charges stated in the related Contract.

 

“Asset Representations
Review Agreement” shall mean the Asset Representations Review Agreement, dated as of the Closing Date, among World Omni,
as servicer, the Issuing Entity and the Asset Representations Reviewer, as amended from time to time.

 

    	 	App. A-1	 

     

    

 

“Asset Representations
Reviewer” means Clayton Fixed Income Services LLC, as asset representations reviewer under the Asset Representations
Review Agreement, or any successor Asset Representations Reviewer under the Asset Representations Review Agreement.

 

“Assignment”
shall mean any RPA Assignment or SSA Assignment.

 

“Authorized Officer”
means, with respect to the Owner Trustee, any officer of the Owner Trustee or other Person who is authorized to act for the Owner
Trustee in matters relating to the Issuing Entity (including any agent of the Owner Trustee acting under a power of attorney) and,
with respect to the Issuing Entity, any Authorized Officer of the Owner Trustee or, so long as the Administration Agreement is
in effect, the president, any vice president, treasurer, assistant treasurer, secretary or assistant secretary of the Administrator
who is authorized to act for the Administrator in matters relating to the Issuing Entity and to be acted upon by the Administrator
pursuant to the Administration Agreement and who is identified on the list of Authorized Officers delivered by the Administrator
to the Indenture Trustee on the Closing Date (as such list may be modified or supplemented from time to time thereafter).

 

“Available Funds”
means, with respect to any Payment Date, (1) the sum of the following amounts, without duplication, with respect to the Receivables
in respect of the Collection Period preceding such Payment Date: (a) all collections on Receivables, (b) all Recoveries, (c) the
Purchase Amount of each Receivable that became a Purchased Receivable as of the last day of the related Collection Period, (d)
partial prepayments relating to refunds of warranty or insurance financed by the respective Obligor thereon as part of the original
contract and only to the extent not included under clause (a) above, (e) amounts on deposit in the Reserve Account after
giving effect to all other deposits and withdrawals thereto or therefrom on the Payment Date relating to such Collection Period
in excess of the Required Reserve Amount, (f) Investment Earnings for the related Payment Date, (g) any Collection Account Redeposits
for the related Payment Date, (h) all amounts received from the Indenture Trustee pursuant to Section 5.04 of the Indenture
minus (2) the Servicing Fee and other amounts payable to the Servicer pursuant to Section 4.08 of the Sale and Servicing
Agreement for the related Payment Date (unless the Servicer elects to defer part or all of such fee); provided, however,
that in calculating Available Funds all payments and proceeds of any Purchased Receivables the Purchased Amount of which
has been included in Available Funds in a prior Collection Period shall be excluded. Available Funds for each Payment Date will
not include, and the amount of Available Funds will not be reduced by, the amount of any Supplemental Servicing Fees.

 

“Basic Documents”
means the Indenture, the Certificate of Trust, the Trust Agreement, the Sale and Servicing Agreement, the Receivables Purchase
Agreement, the Administration Agreement, the Note Depository Agreement, the Asset Representations Review Agreement and other documents
and certificates delivered in connection therewith.

 

“Book-Entry Notes”
means a beneficial interest in the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes and, to the extent no longer
Definitive Notes, Class B Notes, ownership and transfers of which shall be made through book entries by a Clearing Agency as described
in Section 2.11 of the Indenture.

 

    	 	App. A-2	 

     

    

 

“Business Day”
means any day other than (i) a Saturday or a Sunday or (ii) a day on which banking institutions or trust companies in the State
of Florida, the State of New York, the State of Delaware, the states in which the servicing offices of the Servicer are located
or the states in which the Corporate Trust Offices are located are required or authorized by law, regulation or executive order
to be closed.

 

“Certificate of
Trust” shall mean the Certificate of Trust in the form of Exhibit B to the Trust Agreement filed for the
Trust pursuant to Section 3810(a) of the Delaware Statutory Trust Act.

 

“Certificateholder”
shall mean a Person in whose name a Trust Certificate is registered in the Certificate Register.

 

“Certificate Register”
and “Certificate Registrar” shall mean the register mentioned in and the registrar appointed pursuant to Section 3.04
of the Trust Agreement.

 

“Certificates”
means the Trust Certificates issued by the Issuing Entity pursuant to the Trust Agreement in form and substance attached as Exhibit
A thereto.

 

“Class”
means any one of the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes or the Class B Notes.

 

“Class A Noteholders’
Interest Carryover Shortfall” means, with respect to any Payment Date, the excess of the Class A Noteholders’ Interest
Distributable Amount for the preceding Payment Date, over the amount in respect of interest that was actually paid on the Class
A Notes on such preceding Payment Date, plus interest on the amount of interest due but not paid to holders of the Class A Notes
on the preceding Payment Date, to the extent permitted by law, at the respective interest rates borne by each Class of the Class
A Notes for the related Interest Accrual Period.

 

“Class A Noteholders’
Interest Distributable Amount” means, with respect to any Payment Date, the sum of the Class A Noteholders’ Monthly
Interest Distributable Amount for such Payment Date and the Class A Noteholders’ Interest Carryover Shortfall for such Payment
Date.

 

“Class A Noteholders’
Monthly Interest Distributable Amount” means, with respect to any Payment Date, interest accrued for the related Interest
Accrual Period on each Class of Class A Notes at the respective interest rate for such Class on the Outstanding Amount of the Notes
of such Class on the immediately preceding Payment Date (or, in the case of the initial Payment Date, on the Closing Date), after
giving effect to all payments of principal to the Noteholders of such Class on or prior to such preceding Payment Date. For all
purposes of this Agreement and the Basic Documents, interest with respect to the Class A-2 Notes, the Class A-3 Notes and
the Class A-4 Notes shall be computed on the basis of a 360-day year consisting of twelve 30-day months. The interest due on these
Classes of notes on each Payment Date will be the product of:

 

		·	the Outstanding Principal Balance of the related Class of Notes;

 

		·	the related Interest Rate; and

 

    	 	App. A-3	 

     

    

 

		·	30 (or, in the case of the initial Payment Date, 31) divided by 360.

 

Interest due on the initial
Payment Date will be $306,900.00 for the Class A-2 Notes, $362,700.00 for the Class A-3 Notes and $96,195.07 for the Class A-4
Notes.

 

Interest with respect to
the Class A-1 Notes shall be computed on the basis of the actual number of days in the related Interest Accrual Period and a 360-day
year. The interest due on these Classes of notes on each Payment Date will be the product of:

 

		·	the Outstanding Principal Balance of the related Class of Notes;

 

		·	the related Interest Rate; and

 

		·	the actual number of days since the previous Payment Date (or, in the case of the initial Payment
Date, since the Closing Date) divided by 360.

 

Interest due on the initial
Payment Date will be $123,200.00 for the Class A-1 Notes.

 

“Class A Notes”
means the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes.

 

“Class A-1
Final Scheduled Payment Date” means the September 15, 2017 Payment Date.

 

“Class A-1
Interest Rate” means 0.70000% per annum computed on the basis of the actual number of days elapsed and on a 360 day year.

 

“Class A-1
Noteholder” means the Person in whose name a Class A-1 Note is registered in the Note Register.

 

“Class A-1
Notes” means the Class A-1 0.70000% Asset-Backed Notes, substantially in the form of Exhibit A-1 to
the Indenture.

 

“Class A-2
Final Scheduled Payment Date” means the January 15, 2020 Payment Date.

 

“Class A-2 Interest
Rate” means 1.10% per annum computed on the basis of a 360 day year of twelve 30 day months.

 

“Class A-2
Noteholder” means the Person in whose name a Class A-2 Note is registered in the Note Register.

 

“Class A-2 Notes”
means the Class A-2 1.10% Asset-Backed Notes, substantially in the form of Exhibit A-2 to the Indenture.

 

“Class A-3
Final Scheduled Payment Date” means the February 15, 2022 Payment Date.

 

“Class A-3
Interest Rate” means 1.30% per annum computed on the basis of a 360 day year of twelve 30 day months.

 

    	 	App. A-4	 

     

    

 

“Class A-3
Noteholder” means the Person in whose name a Class A-3 Note is registered in the Note Register.

 

“Class A-3 Notes”
means the Class A-3 1.30% Asset-Backed Notes, substantially in the form of Exhibit A-3 to the Indenture.

 

“Class A-4
Final Scheduled Payment Date” means the November 15, 2022 Payment Date.

 

“Class A-4
Interest Rate” means 1.48% per annum computed on the basis of a 360 day year of twelve 30 day months.

 

“Class A-4
Noteholder” means the Person in whose name a Class A-4 Note is registered in the Note Register.

 

“Class A-4 Notes”
means the Class A-4 1.48% Asset-Backed Notes, substantially in the form of Exhibit A-4 to the Indenture.

 

“Class B Final
Scheduled Payment Date” means the July 17, 2023 Payment Date.

 

“Class B Interest
Rate” means 1.73% per annum computed on the basis of a 360 day year of twelve 30 day months.

 

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

 

“Class B Noteholders’
Interest Carryover Shortfall” means, with respect to any Payment Date, the excess of the Class B Noteholders’ Interest
Distributable Amount for the preceding Payment Date, over the amount in respect of interest that was actually paid on the Class
B Notes on such preceding Payment Date, plus interest on the amount of interest due but not paid to holders of the Class B Notes
on the preceding Payment Date, to the extent permitted by law, at the interest rate borne by the Class B Notes for the related
Interest Accrual Period.

 

“Class B Noteholders’
Interest Distributable Amount” means, with respect to any Payment Date, the sum of the Class B Noteholders’ Monthly
Interest Distributable Amount for such Payment Date and the Class B Noteholders’ Interest Carryover Shortfall for such Payment
Date.

 

“Class B Noteholders’
Monthly Interest Distributable Amount” means, with respect to any Payment Date, interest accrued for the related Interest
Accrual Period on the Class B Notes at the interest rate for such Class on the Outstanding Amount of the Notes of such Class on
the immediately preceding Payment Date (or, in the case of the initial Payment Date, on the Closing Date), after giving effect
to all payments of principal to the Noteholders of such Class on or prior to such preceding Payment Date. For all purposes of this
Agreement and the Basic Documents, interest with respect to all Class B Notes shall be computed on the basis of a 360-day year
consisting of twelve 30-day months. The interest due on these Classes of notes on each Payment Date will be the product of:

 

    	 	App. A-5	 

     

    

 

		·	the Outstanding Principal Balance of the Class B Notes;

 

		·	the Class B Interest Rate; and

 

		·	30 (or, in the case of the initial Payment Date, 31) divided by 360.

 

Interest due on the initial
Payment Date will be $38,747.68 for the Class B Notes.

 

“Class B Notes”
means the Class B 1.73% Asset-Backed Notes substantially in the form of Exhibit B to the Indenture.

 

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

 

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

 

“Closing Date”
shall mean September 14, 2016.

 

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

 

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

 

“Collection Account”
means the account designated as such, established and maintained pursuant to Section 5.01(a)(i) of the Sale and Servicing
Agreement.

 

“Collection Account
Redeposits” means, with respect to any Payment Date, amounts that would have been distributed to the Certificateholders
on the prior Payment Date but for the direction of the Certificateholders causing such amounts to remain on deposit in the Collection
Account.

 

“Collection Period”
means, with respect to any Payment Date, the period from and including the first day of the calendar month immediately preceding
the calendar month in which such Payment Date occurs (or with respect to the initial Payment Date, from but excluding the Cutoff
Date) to and including the last day of the calendar month immediately preceding the calendar month in which such Payment Date occurs.
Any amount stated as of the last day of a Collection Period shall give effect to the following applications as determined as of
the close of business on such last day: (1) all applications of collections and (2) all distributions to be made on the related
Payment Date.

 

“Collections”
shall mean all amounts collected by the Servicer (from whatever source) on or with respect to the Receivables.

 

“Commission”
means the U.S. Securities and Exchange Commission.

 

“Contract”
means a motor vehicle retail installment sale contract.

 

    	 	App. A-6	 

     

    

 

“Controlling Securities”
means (i) the Class A Notes so long as the Class A Notes are outstanding and (ii) after the Class A Notes are no longer outstanding,
the Class B Notes so long as the Class B Notes are outstanding.

 

“Corporate Trust
Office” means:

 

(a)          with
respect to the Indenture Trustee, (i) solely for purposes of transfer, exchange or surrender of the Notes, 60 Livingston Avenue,
EP-MN-WS2N, St. Paul, Minnesota 55107, Attention: Transfer Unit, and (ii) the principal office of the Indenture Trustee at which
at any particular time the Indenture shall be administered, which office at the date of execution of the Indenture is located at
U.S. Bank National Association, 190 South LaSalle Street, 7th floor, Chicago, Illinois 60603, Attention: Corporate Trust Services,
WOART 2016-B, Telecopy: (866) 807-8670, or at such other address or electronic mail address as the Indenture Trustee may designate
from time to time by notice to the Noteholders and the Issuing Entity, or the principal corporate trust office of any successor
Indenture Trustee at the address or electronic mail address designated by such successor Indenture Trustee by notice to the Noteholders
and the Issuing Entity; and

 

(b)          with
respect to the Owner Trustee, the corporate trust office of the Owner Trustee located at Wells Fargo Delaware Trust Company, N.A.,
919 N. Market Street, Suite 1600, 7th Floor, Wilmington, Delaware 19801, Attention: Corporate Trust Services, Fax: (302)
575-2006; or at such other address or electronic mail address as the Owner Trustee may designate by notice to the Certificateholders
and the Depositor, or the principal corporate trust office of any successor Owner Trustee at the address or electronic mail address
designated by such successor Owner Trustee by notice to the Certificateholders and the Depositor.

 

“Cutoff Date”
means the close of business on August 9, 2016.

 

“Dealer”
means the dealer who sold a Financed Vehicle and who originated and assigned the related Receivable to World Omni under an existing
agreement between such dealer and World Omni.

 

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

 

“Defaulted Receivable”
means a Receivable as to which (a) more than $40 of a scheduled payment is 120 or more days past due in accordance with its terms,
(b) the Servicer has either repossessed and liquidated the related Financed Vehicle or repossessed and held the related Financed
Vehicle in its repossession inventory for 45 days, whichever occurs first, or (c) the Servicer has, in accordance with its customary
servicing procedures, determined that eventual payment in full is unlikely and has charged off the remaining Principal Balance.
The Principal Balance of any Receivable that becomes a Defaulted Receivable will be deemed to be zero as of the date it becomes
a Defaulted Receivable.

 

“Definitive Notes”
has the meaning specified in Section 2.11 of the Indenture.

 

    	 	App. A-7	 

     

    

 

“Delinquency Percentage”
means, for each Payment Date and the related Collection Period, the ratio (expressed as a percentage) of (i) the aggregate Principal
Balance of all Delinquent Receivables held by the Issuing Entity that are more than 60 days delinquent as of the last day of calendar
month immediately preceding such Payment Date to (ii) the aggregate Principal Balance of the Receivables as of the last day of
the related Collection Period after giving effect to all payments of principal received from obligors and Purchase Amounts to be
remitted by the Servicer or the Depositor, as the case may be, and after reduction to zero of the aggregate outstanding Principal
Balance of any Receivable that became a Defaulted Receivable during the related Collection Period.

 

“Delinquency Trigger”
means 6.50%.

 

“Delinquent Receivable”
means a Receivable as to which more than $40 of a scheduled payment is past due, including a Receivable with a bankrupt Obligor
but excluding a Defaulted Receivable.

 

“Delivery”
when used with respect to Trust Account Property means:

 

(a)          with
respect to bankers’ acceptances, commercial paper, negotiable certificates of deposit and other obligations that constitute
“instruments” within the meaning of Section 9-102(a)(47) of the UCC and are susceptible of physical delivery, transfer
thereof to the Indenture Trustee or its nominee or custodian by physical delivery to the Indenture Trustee or its nominee or custodian
endorsed to, or registered in the name of, the Indenture Trustee or its nominee or custodian or endorsed in blank, and, with respect
to a certificated security (as defined in Section 8-102 of the UCC) transfer thereof (i) by delivery of such certificated security
endorsed to, or registered in the name of, the Indenture Trustee or its nominee or custodian or endorsed in blank to a financial
intermediary (as defined in Section 8-313 of the UCC) and the making by such financial intermediary of entries on its books and
records identifying such certificated securities as belonging to the Indenture Trustee or its nominee or custodian and the sending
by such financial intermediary of a confirmation of the purchase of such certificated security by the Indenture Trustee or its
nominee or custodian, or (ii) by delivery thereof to a “clearing corporation” (as defined in Section 8-102(3) of the
UCC) and the making by such clearing corporation of appropriate entries on its books reducing the appropriate securities account
of the transferor and increasing the appropriate securities account of a financial intermediary by the amount of such certificated
security, the identification by the clearing corporation of the certificated securities for the sole and exclusive account of the
financial intermediary, the maintenance of such certificated securities by such clearing corporation or a “custodian bank”
(as defined in Section 8-102(4) of the UCC) or the nominee of either subject to the clearing corporation’s exclusive control,
the sending of a confirmation by the financial intermediary of the purchase by the Indenture Trustee or its nominee or custodian
of such securities and the making by such financial intermediary of entries on its books and records identifying such certificated
securities as belonging to the Indenture Trustee or its nominee or custodian (all of the foregoing, “Physical Property”),
and, in any event, any such Physical Property in registered form shall be in the name of the Indenture Trustee or its nominee or
custodian; and such additional or alternative procedures as may hereafter become appropriate to effect the complete transfer of
ownership of any such Trust Account Property (as defined herein) to the Indenture Trustee or its nominee or custodian, consistent
with changes in applicable law or regulations or the interpretation thereof;

 

    	 	App. A-8	 

     

    

 

(b)          with
respect to any securities issued by the U.S. Treasury, the Federal Home Loan Mortgage Corporation or by the Federal National Mortgage
Association that are book-entry securities held through the Federal Reserve System pursuant to Federal book-entry regulations,
the following procedures, all in accordance with applicable law, including applicable Federal regulations and Articles 8 and 9
of the UCC: book-entry registration of such Trust Account Property to an appropriate book-entry account maintained with a Federal
Reserve Bank by a financial intermediary which is also a “depository” pursuant to applicable Federal regulations and
issuance by such financial intermediary of a deposit advice or other written confirmation of such book-entry registration to the
Indenture Trustee or its nominee or custodian of the purchase by the Indenture Trustee or its nominee or custodian of such book-entry
securities; the identification by the Federal Reserve Bank of such book-entry securities on its record being credited to the financial
intermediary’s Participant’s securities account; the making by such financial intermediary of entries in its books
and records identifying such book-entry security held through the Federal Reserve System pursuant to Federal book-entry regulations
as being credited to the Indenture Trustee’s securities account or custodian’s securities account and indicating that
such custodian holds such Trust Account Property solely as agent for the Indenture Trustee or its nominee or custodian; and such
additional or alternative procedures as may hereafter become appropriate to effect complete transfer of ownership of any such Trust
Account Property to the Indenture Trustee or its nominee or custodian, consistent with changes in applicable law or regulations
or the interpretation thereof; and

 

(c)          with
respect to any item of Trust Account Property that is an uncertificated security under Article 8 of the UCC and that is not governed
by clause (b) above, registration on the books and records of the issuer thereof in the name of the financial intermediary, the
sending of a confirmation by the financial intermediary of the purchase by the Indenture Trustee or its nominee or custodian of
such uncertificated security, the making by such financial intermediary of entries on its books and records identifying such uncertificated
certificates as belonging to the Indenture Trustee or its nominee or custodian.

 

“Depositor”
means World Omni Auto Receivables LLC in its capacity as Depositor under certain of the Basic Documents.

 

“Eligible Deposit
Account” means either (a) a segregated account with an Eligible Institution or (b) a segregated trust account with the
corporate trust department of a depository institution organized under the laws of the United States of America or any one of the
states thereof or the District of Columbia (or any domestic branch of a foreign bank), having corporate trust powers and acting
as trustee for funds deposited in such account, so long as any of the securities of such depository institution shall have a credit
rating of BBB or better by S&P Global Ratings and of each Rating Agency (if rated by Fitch) in one of its generic rating categories
that signifies investment grade.

 

    	 	App. A-9	 

     

    

 

“Eligible Institution”
means

 

(a) the corporate trust
department of the Indenture Trustee or

 

(b) a depository institution
or trust company organized under the laws of the United States of America or any one of the states thereof, or the District of
Columbia (or any domestic branch of a foreign bank), which at all times (i) has either (A) a long-term unsecured debt rating of
AA or better by Fitch (if rated by Fitch), AA or better by S&P Global Ratings, or such other rating that is acceptable to each
Rating Agency, as evidenced by a letter from such Rating Agency to the Indenture Trustee or (B) a certificate of deposit rating
of F-1 by Fitch (if rated by Fitch), A-1+ by S&P Global Ratings, or such other rating that is acceptable to each Rating Agency,
as evidenced by a letter from such Rating Agency to the Indenture Trustee and (ii) whose deposits are insured by the FDIC.

 

“Eligible Investments”
shall mean any of the following in each case with a required maturity date as set forth in Section 5.01(b) of the Sale and
Servicing Agreement:

 

(a)          (i)
direct obligations of, and obligations guaranteed as to full and timely payment of principal and interest by, the United States
or any agency or instrumentality of the United States the obligations of which are backed by the full faith and credit of the United
States (other than the Government National Mortgage Association), and (ii) direct obligations of, or obligations fully guaranteed
by, Fannie Mae or any State then rated with the highest available credit rating of Fitch (if rated by Fitch) and S&P Global
Ratings, or such obligations, which obligations are, at the time of investment, otherwise acceptable to each Rating Agency for
securities having a rating at least equivalent to the rating of the Notes;

 

(b)          money
market deposit accounts, certificates of deposit, demand or time deposits, savings deposits, bankers acceptances, or federal funds,
in each case as defined in Regulation D of the Board of Governors of the Federal Reserve System and issued by or sold by or offered
by, any domestic office of any commercial bank or any depository institution or trust company (including the Indenture Trustee
or the Owner Trustee or their successors) incorporated or organized under the laws of the United States or any State thereof which
has a combined capital and surplus and undivided profits of not less than $250,000,000 and the deposits of which are insured by
the FDIC to the full extent legally permitted;

 

(c)          repurchase
obligations held by the Indenture Trustee with respect to (i) any security described in clause (a) above or (e) below, or (ii)
any other security issued or guaranteed by any agency or instrumentality of the United States, in either case entered into with
a federal agency or depository institution or trust company (including the Indenture Trustee) acting as principal, whose obligations
having the same maturity as that of the repurchase agreement would be Eligible Investments under clause (b) above; provided,
however, that repurchase obligations entered into with any particular depository institution or trust company (including
the Indenture Trustee or Owner Trustee) will not be Eligible Investments to the extent that the aggregate principal amount of such
repurchase obligations with such depository institution or trust company held by the Indenture Trustee on behalf of the Trust shall
exceed 10% of either the Pool Balance or the aggregate unpaid balance or face amount, as the case may be, of all Eligible Investments
held by the Indenture Trustee on behalf of the Trust;

 

    	 	App. A-10	 

     

    

 

(d)          securities
bearing interest or sold at a discount issued by any corporation incorporated under the laws of the United States or any State
so long as at the time of such investment or contractual commitment providing for such investment, either the long-term, unsecured
debt of such corporation has the highest available credit rating from Fitch (if rated by Fitch) and S&P Global Ratings, or
the Rating Agency Condition has been satisfied, or commercial paper or other short-term debt having the Required Rating; provided,
however, that any such commercial paper or other short-term debt may have a remaining term to maturity of no longer than
30 days after the date of such investment or contractual commitment providing for such investment, and that the securities issued
by any particular corporation will not be Eligible Investments to the extent that investment therein will cause the then outstanding
principal amount or face amount, as the case may be, of securities issued by such corporation and held by the Indenture Trustee
on behalf of the Trust to exceed 10% of either the Pool Balance or the aggregate unpaid principal balance or face amount, as the
case may be, of all Eligible Investments held by the Indenture Trustee on behalf of the Trust;

 

(e)          interest
in any open-end or closed-end management type investment company or investment trust (i) registered under the Investment Company
Act of 1940, as amended, the portfolio of which is limited to the obligations of, or guaranteed by, the United States and to agreements
to repurchase such obligations, which agreements, with respect to principal and interest, are at least 100% collateralized by such
obligations marked to market on a daily basis and the investment company or investment trust shall take delivery of such obligations
either directly or through an independent custodian designated in accordance with the Investment Company Act and (ii) acceptable
to each Rating Agency (as approved in writing by each Rating Agency) as collateral for securities having ratings equivalent to
the ratings of the Notes;

 

(f)          guaranteed
reinvestment agreements issued by any bank, insurance company or other corporation for which the Rating Agency Condition has been
satisfied;

 

(g)          investments
in Eligible Investments maintained in “sweep accounts,” short-term asset management accounts and the like utilized
for the investment, on an overnight basis, of residual balances in investment accounts maintained at the Indenture Trustee or any
other depository institution or trust company organized under the laws of the United States or any state that is a member of the
FDIC, the short-term debt of which has the highest available credit rating of Fitch (if rated by Fitch) and S&P Global Ratings;

 

(h)          guaranteed
investment contracts entered into with any financial institution having a final maturity of not more than one month from the date
of acquisition, the short-term debt securities of which institution have the Required Rating;

 

    	 	App. A-11	 

     

    

 

(i)          funds
classified as money market funds; provided, however, that the fund shall be rated with the highest available
credit rating of Fitch (if rated by Fitch) and S&P Global Ratings, and redemptions shall be permitted on a daily or next business
day basis;

 

(j)          auction
rate securities issued with a rate reset mechanism and a maximum term of 30 days; provided that investment will be
limited to those issuers having the AAA credit rating of Fitch (if rated by Fitch) and S&P Global Ratings; and

 

(k)          such
other investments for which the Rating Agency Condition has been satisfied.

 

Notwithstanding anything
to the contrary contained in the foregoing definition:

 

(a)          no
Eligible Investment may be repurchased at a premium;

 

(b)          any
of the foregoing which constitutes a certificated security shall not be considered an Eligible Investment unless:

 

(i)          in
the case of a certificated security that is in bearer form, (A) the Indenture Trustee acquires physical possession of such certificated
security, or (B) a person, other than a securities intermediary, acquires possession of such certificated security on behalf of
the Indenture Trustee; and

 

(ii)         in
the case of a certificated security that is in registered form (A)(1) the Indenture Trustee acquires physical possession of such
certificated security, (2) a person, other than a securities intermediary, acquires possession of such certificated security on
behalf of the Indenture Trustee, or (3) a securities intermediary acting on behalf of the Indenture Trustee acquires possession
of such certificated security and such certificated security has been specially endorsed to the Indenture Trustee, and (B) (1)
such certificated security is endorsed to the Indenture Trustee or in blank by an effective endorsement, or (2) such certificated
security is registered in the name of the Indenture Trustee;

 

(c)          any
of the foregoing that constitutes an uncertificated security shall not be considered an Eligible Investment unless (A) the Indenture
Trustee is registered by the issuer as the owner thereof, (B) a person, other than a securities intermediary, becomes the registered
owner of such uncertificated security on behalf of the Indenture Trustee, or (C) the issuer of such uncertificated security agrees
that it will comply with the instructions originated by the Indenture Trustee without further consent by any registered owner of
such uncertificated security;

 

(d)          any
of the foregoing that constitutes a security entitlement shall not be considered an Eligible Investment unless (A) the Indenture
Trustee becomes the entitlement holder thereof, or (B) the securities intermediary has agreed to comply with the entitlement orders
originated by the Indenture Trustee without further consent by the entitlement holder;

 

    	 	App. A-12	 

     

    

 

(e)          any
of the foregoing shall not constitute an Eligible Investment unless the Indenture Trustee (A) has given value, and (B) does not
have notice of an adverse claim; and

 

(f)          for
the purposes of funds held in the Collection Account only, investments which would otherwise qualify as Eligible Investments but
for the fact that such investments are rated A-1 by S&P Global Ratings shall be Eligible Investments, so long as the aggregate
amount of such investments does not exceed 10% of the Outstanding Amount of the Notes.

 

“ERISA”
shall have the meaning assigned thereto in Section 3.04 of the Trust Agreement.

 

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

 

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

 

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

 

“Expenses”
shall have the meaning assigned to such term in Section 8.02 of the Trust Agreement.

 

“FATCA”
means Sections 1471 through 1474 of the Code.

 

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

 

“FDIC”
means the Federal Deposit Insurance Corporation.

 

“Final Prospectus”
shall mean the prospectus dated September 7, 2016, relating to the Notes.

 

“Final Scheduled
Maturity Date” means in the case of a Receivable, December 26, 2022.

 

“Final Scheduled
Payment Date” means (i) with respect to the Class A-1 Notes, the Class A-1 Final Scheduled Payment Date, (ii) with respect
to the Class A-2 Notes, the Class A-2 Final Scheduled Payment Date, (iii) with respect to the Class A-3 Notes, the Class A-3 Final
Scheduled Payment Date, (iv) with respect to the Class A-4 Notes, the Class A-4 Final Scheduled Payment Date, and (v) with respect
to the Class B Notes, the Class B Final Scheduled Payment Date.

 

“Financed Vehicle”
means an automobile or light-duty truck, together with all accessions thereto, securing an Obligor’s indebtedness under the
respective Receivable.

 

    	 	App. A-13	 

     

    

 

“Financial Asset”
has the meaning given such term in Revised Article 8. As used herein, the Financial Asset “related to” a security entitlement
is the Financial Asset in which the entitlement holder (as defined in the New York UCC) holding such Security Entitlement has the
rights and property interest specified in the New York UCC.

 

“Fitch”
means Fitch Ratings, Inc. or its successor.

 

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

 

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

 

“Indemnified Parties”
shall have the meaning assigned to such term in Section 8.02 of the Trust Agreement.

 

“Indenture”
shall mean the Indenture, dated as of the Closing Date, between the Trust and the Indenture Trustee, as the same may be amended
and supplemented from time to time.

 

“Indenture Trustee”
means U.S. Bank National Association, not in its individual capacity but solely as Indenture Trustee under the Indenture, or any
successor Indenture Trustee under the Indenture.

 

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

 

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

 

    	 	App. A-14	 

     

    

 

“Initial Aggregate
Starting Principal Balance” means $1,010,382,244.86.

 

“Initial Trust
Agreement” shall have the meaning assigned to such term in Section 2.12 of the Trust Agreement.

 

“Insolvency Event”
means, with respect to a specified Person, (a) the filing of a decree or order for relief by a court having jurisdiction in the
premises in respect of such Person or any substantial part of its property in an involuntary case under any applicable federal
or state bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official for such Person or for any substantial part of its property, or ordering the
winding-up or liquidation of such Person’s affairs, and such decree or order shall remain unstayed and in effect for a period
of 60 consecutive days; or (b) the commencement by such Person of a voluntary case under any applicable federal or state bankruptcy,
insolvency or other similar law now or hereafter in effect, or the consent by such Person to the entry of an order for relief in
an involuntary case under any such law, or the consent by such Person to the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official for such Person or for any substantial part of its property,
or the making by such Person of any general assignment for the benefit of creditors, or the failure by such Person generally to
pay its debts as such debts become due, or the taking of action by such Person in furtherance of any of the foregoing.

 

“Interest Accrual
Period” means, with respect to any Payment Date, (i) for the Class A-1 Notes, the period from and including the previous
Payment Date (or, in the case of the initial Payment Date, the Closing Date) to, but excluding, the current Payment Date and (ii)
for the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes and the Class B Notes, the period from and including the 15th
day of the preceding calendar month (or, in the case of the initial Payment Date, the Closing Date) to, but excluding, the 15th
day of the current calendar month.

 

“Interest Rate”
means the Class A-1 Interest Rate, the Class A-2 Interest Rate, the Class A-3 Interest Rate, the Class A-4 Interest Rate
or the Class B Interest Rate, as applicable.

 

“Investment Earnings”
means, with respect to any Payment Date, the investment earnings (net of losses and investment expenses) on amounts on deposit
in the Trust Accounts to be deposited into the Collection Account on such Payment Date pursuant to Section 5.01(b) of the
Sale and Servicing Agreement.

 

“Investment Letter”
has the meaning assigned in Section 2.04(a) of the Indenture.

 

“Issuing Entity”
means World Omni Auto Receivables Trust 2016-B until a successor replaces it and, thereafter, means the successor and, for purposes
of any provision contained in the Indenture and required by the TIA, each other obligor on the Notes.

 

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

 

    	 	App. A-15	 

     

    

 

“Lien”
means a security interest, lien, charge, pledge, equity or encumbrance of any kind, other than tax liens, mechanics’ liens
and any liens that attach to the respective Receivable by operation of law as a result of any act or omission by the related Obligor.

 

“Note Depository
Agreement” means the letter of representations, dated as of the Closing Date, between the Issuing Entity and The Depository
Trust Company, as the initial Clearing Agency.

 

“Note Distribution
Account” means the account designated as such, established and maintained pursuant to Section 5.01(a)(ii) of the
Sale and Servicing Agreement.

 

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

 

“Note Pool Factor”
means, with respect to each Class of Notes as of the close of business on the last day of a Collection Period, a seven-digit decimal
figure equal to the Outstanding Amount of such Class of Notes (after giving effect to any reductions thereof to be made on the
immediately following Payment Date) divided by the original Outstanding Amount of such Class of Notes. The Note Pool Factor will
be 1.0000000 as of the Closing Date; thereafter, the Note Pool Factor will decline to reflect reductions in the Outstanding Amount
of such Class of Notes.

 

“Note Register”
and “Note Registrar” have the respective meanings specified in Section 2.05 of the Indenture.

 

“Noteholder FATCA
Information” means, with respect to any Noteholder or Note Owner, information sufficient to eliminate the imposition
of, or determine the amount of, U.S. withholding tax under FATCA.

 

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

 

“Noteholders”
shall mean the holders of the Notes.

 

“Noteholders’
First Priority Principal Distributable Amount” means, with respect to any Payment Date, an amount equal to the excess,
if any, of (a) the Outstanding Amount of the Class A Notes as of the day immediately preceding such Payment Date over (b) the Pool
Balance for that Payment Date.

 

“Noteholders’
Interest Distributable Amount” means, with respect to any Payment Date, the sum of the Class A Noteholders’ Interest
Distributable Amount for such Payment Date and the Class B Noteholders’ Interest Distributable Amount for such Payment Date.

 

    	 	App. A-16	 

     

    

 

“Noteholders’
Principal Distributable Amount” means, with respect to any Payment Date, the excess, if any, of (a) the sum of the Outstanding
Amount of the Notes as of the day immediately preceding that Payment Date over (b) the Pool Balance for that Payment Date minus
the Overcollateralization Target Amount for that Payment Date, provided that on the Final Scheduled Payment Date
of any Class of Notes, the Noteholders’ Principal Distributable Amount shall not be less than the amount necessary to reduce
the aggregate Principal Balance of such Class of Notes to zero.

 

“Noteholders’
Second Priority Principal Distributable Amount” means, with respect to any Payment Date, an amount equal to the excess,
if any, of (a) the Outstanding Amount of the Notes as of the day immediately preceding such Payment Date over (b) the Pool Balance
for that Payment Date less (c) any amounts allocated to the Noteholders’ First Priority Principal Distributable Amount.

 

“Notes”
means Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes and Class B Notes.

 

“Obligor”
on a Receivable means the purchaser or co-purchasers of the Financed Vehicle and any other Person who owes payments under the Receivable.

 

“Officer’s
Certificate” means in the case of the Issuing Entity, a certificate signed by any Authorized Officer of the Issuing Entity,
under the circumstances described in, and otherwise complying with, the applicable requirements of Section 11.01 of
the Indenture, and delivered to the Indenture Trustee (unless otherwise specified, any reference in the Indenture to an Officer’s
Certificate shall be to an Officer’s Certificate of any Authorized Officer of the Issuing Entity), and in the case of World
Omni, the Depositor or the Servicer, a certificate signed by the president, a vice president, a treasurer, assistant treasurer,
secretary or assistant secretary of World Omni, the Depositor or the Servicer, as appropriate.

 

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

 

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

 

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

 

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

 

    	 	App. A-17	 

     

    

 

(c)          Notes
in exchange for or in lieu of which other Notes have been authenticated and delivered pursuant to this Indenture unless proof satisfactory
to the Indenture Trustee is presented that any such Notes are held by a protected purchaser;

 

provided, that in
determining whether the Holders of the requisite Outstanding Amount of the Controlling Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder or under any Basic Document, Notes owned by the Issuing Entity, any
other obligor upon the Notes, the Depositor or any Affiliate of any of the foregoing Persons shall be disregarded and deemed not
to be Outstanding, except that, in determining whether the Indenture Trustee shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Notes that a Responsible Officer of the Indenture Trustee has
actual knowledge are so owned shall be so disregarded. Notes so owned that have been pledged in good faith may be regarded as Outstanding
if the pledgee establishes to the satisfaction of the Indenture Trustee the pledgee’s right so to act with respect to such
Notes and that the pledgee is not the Issuing Entity, any other obligor upon the Notes, the Depositor or any Affiliate of any of
the foregoing Persons.

 

“Outstanding Amount”
means the aggregate principal amount of all Notes, or Class of Notes, as applicable, Outstanding at the date of determination.

 

“Overcollateralization
Target Amount” means, with respect to any Payment Date, an amount equal to 4.50% of the aggregate Principal Balance of
the Receivables as of the end of the related Collection Period less the Yield Supplement Overcollateralization Amount of those
Receivables as of the last day of the related Collection Period, but not less than the result of 1.00% of the Aggregate Starting
Principal Balance of the Receivables minus the Yield Supplement Overcollateralization Amount as of the Cutoff Date.

 

“Owner Trust Estate”
shall mean all right, title and interest of the Trust in and to the property and rights assigned to the Trust pursuant to Article II
of the Sale and Servicing Agreement, all funds on deposit from time to time in the Trust Accounts and all other property of the
Trust from time to time, including any rights of the Trust pursuant to the Sale and Servicing Agreement and the Administration
Agreement.

 

“Owner Trustee”
shall mean Wells Fargo Delaware Trust Company, N.A., not in its individual capacity but solely as owner trustee under the Trust
Agreement, and any successor Owner Trustee thereunder.

 

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

 

“Payment Date”
means, with respect to each Collection Period, the fifteenth day of the following month or, if such day is not a Business Day,
the immediately following Business Day. The initial Payment Date will be October 17, 2016.

 

    	 	App. A-18	 

     

    

 

“Payment Determination
Date” means, with respect to any Payment Date, one (1) Business Day immediately preceding such Payment Date.

 

“Payment Extension
Program” means a program where one month’s payment is deferred in return for the payment of an amount calculated
generally at the APR of the contract for the month in which such payment is deferred (unless such amount is waived by the Servicer
in accordance with the Servicer’s customary servicing procedures).

 

“Percentage Interest”
shall mean, with respect to each Trust Certificate, the percentage beneficial interest in the Trust represented by such Trust Certificate.

 

“Person”
means any individual, corporation, limited liability company, estate, partnership, joint venture, association, joint stock company,
trust (including any beneficiary thereof), unincorporated organization or government or any agency or political subdivision thereof.

 

“Physical Property”
has the meaning assigned to such term in the definition of “Delivery” above.

 

“Plan”
shall have the meaning assigned to such term in Section 3.04 of the Trust Agreement.

 

“Pool Balance”
means, as of any Payment Date, the aggregate Principal Balance of the Receivables as of the last day of the related Collection
Period less the Yield Supplement Overcollateralization Amount as of such day of the related Collection Period after giving effect
to all payments of principal received from obligors and Purchase Amounts to be remitted by the Servicer or the Depositor, as the
case may be, and after reduction to zero of the aggregate outstanding Principal Balance of any Receivable that became a Defaulted
Receivable during the related Collection Period.

 

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

 

“Principal Balance”
of a Receivable, as of the close of business on the last day of a Collection Period, means the Amount Financed minus the sum of
(i) the portion of all payments made by or on behalf of the related Obligor on or prior to such day and allocable to principal
using the Simple Interest Method; (ii) refunds of any warranty or insurance financed on the original Contract; and (iii) any payment
of the Purchase Amount with respect to the Receivable allocable to principal.

 

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

 

“Purchase Amount”
means, with respect to a Receivable, the amount, as of the close of business on the last day of the Collection Period as of which
that Receivable is purchased, required to prepay in full that Receivable under the terms thereof including accrued and unpaid interest
to such last day.

 

    	 	App. A-19	 

     

    

 

“Purchase Date”
has the meaning assigned to such term in Section 2.01 of the Receivables Purchase Agreement.

 

“Purchase Price”
has the meaning assigned to such term in Section 2.02 of the Receivables Purchase Agreement.

 

“Purchased Receivable”
means a Receivable purchased as of the close of business on the last day of a Collection Period by the Servicer pursuant to Section
4.07 or by World Omni pursuant to Section 3.02(b) of the Sale and Servicing Agreement.

 

“Rating Agencies”
means, for so long as such organization is rating a Class of Notes, Fitch and S&P Global Ratings or, if none of such organizations
or successors is any longer in existence, a nationally recognized statistical rating organization or other comparable Person designated
by the Depositor, notice of which designation shall be given to the Indenture Trustee, the Owner Trustee and the Servicer.

 

“Rating Agency
Condition” means, with respect to any action, that each Rating Agency then rating a Class of Notes shall have received
5 Business Days’ (or such shorter period as shall be acceptable to each Rating Agency) prior written notice and shall not
have notified the Depositor that such action will result in a downgrade of the then current rating on any Notes.

 

“Receivable”
means any Contract listed on the Schedule of Receivables attached to an Assignment (which Schedule may be in the form of microfiche),
as such Schedule may be amended from time to time.

 

“Receivable Files”
means the documents specified in Section 3.03 of the Sale and Servicing Agreement.

 

“Receivables Purchase
Agreement” shall mean the Receivables Purchase Agreement, dated as of the Closing Date, between World Omni, as depositor
and World Omni Auto Receivables LLC, as purchaser, as amended from time to time.

 

“Record Date”
means, with respect to a Payment Date or Redemption Date, and (i) any Book-Entry Notes, the close of business on the Business Day
immediately preceding such Payment Date or Redemption Date or (ii) any Definitive Notes, the Payment Date in the preceding month.

 

“Recoveries”
means, with respect to any Defaulted Receivable and any Collection Period, monies collected in respect thereof, from whatever source,
net of any expenses of the Servicer in connection with such Receivable for which the Servicer has not been previously reimbursed
and any amounts required by law to be remitted to the Obligor.

 

“Redemption Date”
means, in the case of a redemption of the Notes pursuant to Section 10.01 of the Indenture, the Payment Date specified
by the Depositor or the Issuing Entity pursuant to Section 10.01 of the Indenture.

 

    	 	App. A-20	 

     

    

 

“Redemption Price”
means, in connection with a redemption of the Notes pursuant to Section 10.01 of the Indenture, with respect to any
Note, an amount equal to the unpaid principal amount of such Note plus accrued and unpaid interest thereon to but excluding the
Redemption Date.

 

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

 

“Regulation AB”
means Subpart 229.1100 – Asset Backed Securities (Regulation AB), 17 C.F.R. §§229.1100-229.1125, as such may be
amended from time to time and subject to such clarification and interpretation as have been provided by the Commission in the adopting
releases (Asset-Backed Securities, Securities Act Release No. 33-8518. 70 Fed. Reg. 1,506, 1,531 (January 7, 2005) and Asset-Backed
Securities Disclosure and Registration, Securities Act Release No. 33-9638, 79 Fed. Reg. 57, 184 (September 24, 2014)) or by the
staff of the Commission, or as may be provided by the Commission or its staff from time to time.

 

“Reporting Officer”
means, with respect to the Indenture Trustee, any officer within the Corporate Trust Office of the Indenture Trustee, including
any vice president, assistant vice president, assistant secretary, senior associate, associate, trust officer or any other officer,
employee or other person of the Indenture Trustee customarily performing functions similar to those performed by any of the above
designated officers and, with respect to each, having direct responsibility for the administration of the Indenture and also, with
respect to a particular matter, any other officer, employee or other person to whom such matter is referred because of such officer’s
knowledge of and familiarity with the particular subject, or, with respect to the Owner Trustee, any officer, employee or other
person within the Corporate Trust Office of the Owner Trustee having direct responsibility for the administration of the Trust
Agreement.

 

“Reporting Subcontractor”
shall mean with respect to any Person, any Subcontractor for such Person that is “participating in the servicing function”
within the meaning of Item 1122 of Regulation AB. References to a Reporting Subcontractor shall refer only to the Subcontractor
of such Person and shall not refer to Subcontractors generally.

 

“Repurchase Event”
shall have the meaning specified in Section 6.02 of the Receivables Purchase Agreement.

 

“Repurchase Request”
has the meaning specified in Section 3.02(c)(i) of the Sale and Servicing Agreement.

 

“Repurchase Rules
and Regulations” shall have the meaning specified in Section 6.14 of the Indenture.

 

“Requesting Party”
has the meaning specified in Section 3.02(c)(i) of the Sale and Servicing Agreement.

 

“Required Rate”
means 5.00%, or such other rate as shall be approved by the Rating Agencies.

 

    	 	App. A-21	 

     

    

 

“Required Rating”
means a rating on commercial paper or other short term unsecured debt obligations of F-1 by Fitch (if rated by Fitch) so long as
Fitch is a Rating Agency and A-1+ by S&P Global Ratings so long as S&P Global Ratings is a Rating Agency; and any requirement
that deposits or debt obligations have the “Required Rating” shall mean that such deposits or debt obligations have
the foregoing required ratings from Fitch (if rated by Fitch) and S&P Global Ratings.

 

“Required Reserve
Amount” means, with respect to any Payment Date, the lesser of (a) 0.25% of the difference of the Aggregate Starting
Principal Balance less the Yield Supplement Overcollateralization Amount as of the Cutoff Date of all Receivables transferred to
the Trust and (b) the Outstanding Amount of the Notes.

 

“Reserve Account”
means the account designated as such, established and maintained pursuant to Section 5.01(a)(iii) and Section 5.07
of the Sale and Servicing Agreement.

 

“Reserve Account
Initial Deposit” means cash or Eligible Investments having a value of $2,407,920.41.

 

“Responsible Officer”
means, with respect to the Indenture Trustee, any officer within the Corporate Trust Office of the Indenture Trustee, including
any vice president, assistant vice president, assistant secretary, senior associate, associate, trust officer or any other officer
of the Indenture Trustee customarily performing functions similar to those performed by any of the above designated officers and,
with respect to each, having direct responsibility for the administration of the Indenture and also, with respect to a particular
matter, any other officer to whom such matter is referred because of such officer’s knowledge of and familiarity with the
particular subject.

 

“Retained Notes”
means [RESERVED].

 

“Review”
means a review by the Asset Representations Reviewer as specified in the Asset Representations Review Agreement of all Delinquent
Receivables that have been Delinquent Receivables for 60 days or more as of the last day of the preceding Collection Period to
determine whether such Delinquent Receivables satisfy the representations and warranties set forth in Section 3.01(a) of the Sale
and Servicing Agreement, each as of the date as specified in Section 3.01(a) of the Sale and Servicing Agreement..

 

“Review Notice”
means the notice from the Indenture Trustee to the Asset Representations Reviewer, the Issuing Entity and the Servicer pursuant
to Section 7.05(c) of the Indenture notifying the Asset Representations Reviewer that the Noteholders have requested a Review.

 

“Review Receivable”
has the meaning designated in Section 1.01 of the Asset Representations Review Agreement.

 

“Review Report”
has the meaning designated in Section 3.04 of the Asset Representations Review Agreement.

 

    	 	App. A-22	 

     

    

 

“RPA Assignment”
has the meaning designated in Section 2.01 of the Receivables Purchase Agreement.

 

“Sale and Servicing
Agreement” means the Sale and Servicing Agreement, dated as of the Closing Date, among the Issuing Entity, the Depositor
and World Omni, as Servicer, as amended from time to time.

 

“Schedule of Receivables”
shall mean the schedule attached to the RPA Assignment or the SSA Assignment specifying the Receivables being transferred, as such
Schedule may be amended from time to time.

 

“Secretary of
State” shall mean the Secretary of State of the State of Delaware.

 

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

 

“Securitization
Transaction” means any transaction effected after the Closing Date involving an issuance of notes pursuant to the Indenture,
whether publicly offered or privately placed, rated or unrated.

 

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

 

“Servicer Default”
means an event specified in Section 8.01 of the Sale and Servicing Agreement.

 

“Servicer’s
Certificate” means a certificate of the Servicer delivered pursuant to Section 4.09 of the Sale and Servicing
Agreement.

 

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

 

“Servicing Fee”
means the fee payable to the Servicer for services rendered during each Collection Period, determined pursuant to Section 4.08
of the Sale and Servicing Agreement.

 

“Servicing Fee
Rate” means 1% per annum.

 

“Similar Law”
has the meaning assigned to such term in Section 3.04 of the Trust Agreement.

 

“Simple Interest
Method” means the method of allocating a fixed level payment to principal and interest, pursuant to which the portion
of such payment that is allocated to interest is equal to the product of the fixed rate of interest multiplied by the unpaid principal
balance multiplied by the period of time elapsed since the preceding payment of interest was made and the remainder of such payment
is allocable to principal.

 

“Simple Interest
Receivable” means any Receivable under which the portion of a payment allocable to interest and the portion allocable
to principal is determined in accordance with the Simple Interest Method.

 

    	 	App. A-23	 

     

    

 

“Sponsor”
means World Omni Financial Corp., a Florida corporation, or its successors.

 

“SSA Assignment”
has the meaning assigned in Section 2.01 of the Sale and Servicing Agreement.

 

“S&P Global
Ratings” means S&P Global Ratings, a division of S&P Global, or its successor.

 

“Starting Principal
Balance” means with respect to a Receivable, the aggregate principal amount advanced under such Receivable toward the
purchase price of the Financed Vehicle or Financed Vehicles, including insurance premiums, service and warranty contracts, federal
excise and sales taxes and other items customarily financed as part of a Receivable and related costs, less payments received from
the Obligor prior to the Cutoff Date with respect to such Receivable allocable to principal.

 

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

 

“Statutory Trust
Act” shall mean Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code § 3801
et seq., as the same may be amended from time to time.

 

“Subcontractor”
shall mean any vendor, subcontractor or other Person that is not responsible for the overall servicing (as “servicing”
is commonly understood by participants in the mortgage-backed securities market) of Receivables but performs one or more discrete
functions identified in Item 1122(d) of Regulation AB with respect to the Receivables under the direction or authority of the Servicer
or the Indenture Trustee.

 

“Successor Servicer”
has the meaning specified in Section 3.07(e) of the Indenture.

 

“Supplemental
Servicing Fees” means late fees, any prepayment charges, phone pay fees and other administrative fees or similar charges
allowed by applicable law with respect to the Receivables collected from Obligors during the related Collection Period.

 

“Test Fail”
has the meaning assigned in Section 3.03(a) of the Asset Representations Review Agreement.

 

“Transferor Certificate”
has the meaning assigned in Section 2.04(a) of the Indenture.

 

“Treasury Regulations”
shall mean regulations, including proposed or temporary Regulations, promulgated under the Code. References herein to specific
provisions of proposed or temporary regulations shall include analogous provisions of final Treasury Regulations or other successor
Treasury Regulations.

 

“Trust”
means World Omni Auto Receivables Trust 2016-B, a Delaware statutory trust.

 

“Trust Account
Property” means the Trust Accounts, all amounts and investments held from time to time in any Trust Account (whether
in the form of deposit accounts, Physical Property, book-entry securities, uncertificated securities or otherwise), including the
Reserve Account, and all proceeds of the foregoing.

 

    	 	App. A-24	 

     

    

 

“Trust Accounts”
has the meaning assigned thereto in Section 5.01 of the Sale and Servicing Agreement.

 

“Trust Agreement”
means the Trust Agreement, dated as of the Closing Date, between the Depositor and the Owner Trustee, as the same may be amended
and supplemented from time to time; such agreement being the amended and restated Trust Agreement contemplated by the Initial Trust
Agreement.

 

“Trust Certificate”
shall mean a certificate evidencing the beneficial interest of a Person in the trust established by the Trust Agreement and substantially
in the form attached as Exhibit A to such Trust Agreement.

 

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

 

“Trust Indenture
Act” or “TIA” means the Trust Indenture Act of 1939 as in force as of the Closing Date, unless otherwise
specifically provided.

 

“Trust Officer”
means, in the case of the Indenture Trustee, any Officer within the Corporate Trust Office of the Indenture Trustee, including
any vice president, assistant vice president, assistant secretary, senior associate, associate, trust officer or any other officer
of the Indenture Trustee customarily performing functions similar to those performed by any of the above designated officers and
also, with respect to a particular matter, any other officer to whom such matter is referred because of such officer’s knowledge
of and familiarity with the particular subject and, with respect to the Owner Trustee, any officer within the Corporate Trust Office
of the Owner Trustee with direct responsibility for the administration of the Trust Agreement and the Basic Documents on behalf
of the Owner Trustee.

 

“Trustee Bank”
means Wells Fargo Delaware Trust Company, N.A., in its individual capacity, each bank appointed as successor Owner Trustee under
the Trust Agreement in its individual capacity and each bank appointed as co-trustee under and to the extent provided in the Trust
Agreement in its individual capacity.

 

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

 

“U.S. Person”
means:

 

(a) a citizen or resident
of the United States for U.S. federal income tax purposes;

 

(b) an entity treated as
a corporation or partnership for U.S. federal income tax purposes, except to the extent provided in applicable U.S. Department
of Treasury regulations, created or organized in or under the laws of the United States, any state or the District of Columbia,
including an entity treated as a corporation or partnership for U.S. federal income tax purposes;

 

    	 	App. A-25	 

     

    

 

(c) an estate the income
of which is subject to U.S. federal income taxation regardless of its source;

 

(d) an entity treated as
a trust for U.S. federal income tax purposes if a court within the United States is able to exercise primary supervision over the
administration of such trust, and one or more such U.S. Persons have the authority to control all substantial decisions of such
trust; or

 

(e) to the extent provided
in applicable U.S. Department of Treasury regulations, certain trusts in existence on August 20, 1996, which are eligible to elect
to be treated as U.S. Persons.

 

“WOAR”
means World Omni Auto Receivables LLC, a Delaware limited liability company, or its successors.

 

“World Omni”
means World Omni Financial Corp., a Florida corporation, or its successors.

 

“Yield Supplement
Overcollateralization Amount” means, with respect to any calendar month and the related Payment Date, or with respect
to the Cutoff Date, the aggregate amount by which the Principal Balance as of the last day of such calendar month or the Cutoff
Date of each of the related Receivables with an APR as stated in the related Contract of less than the Required Rate, other than
a Defaulted Receivable, exceeds the present value, calculated by using a discount rate equal to the Required Rate, of each scheduled
payment of each such Receivables assuming such scheduled payment is made on the last day of each month and each month has 30 days.

 

    	 	App. A-26	 

     

    

 

APPENDIX A

PART II - RULES OF CONSTRUCTION

 

(A)         Accounting
Terms. As used in this Appendix or the Basic Documents, accounting terms which are not defined, and accounting terms partly
defined, herein or therein shall have the respective meanings given to them under generally accepted accounting principles. To
the extent that the definitions of accounting terms in this Appendix or the Basic Documents are inconsistent with the meanings
of such terms under generally accepted accounting principles, the definitions contained in this Appendix or the Basic Documents
will control.

 

(B)         “Hereof,”
etc.: The words “hereof,” “herein” and “hereunder” and words of similar import when used
in this Appendix or any Basic Document will refer to this Appendix or such Basic Document as a whole and not to any particular
provision of this Appendix or such Basic Document; and Section, Schedule and Exhibit references contained in this Appendix or any
Basic Document are references to Sections, Schedules and Exhibits in or to this Appendix or such Basic Document unless otherwise
specified. The word “or” is not exclusive.

 

(C)         Use
of “related” as used in this Appendix and the Basic Documents, with respect to any Payment Date, the “related
Payment Determination Date,” the “related Collection Period,” and the “related Record Date” will
mean the Payment Determination Date, the Collection Period, and the Record Date, respectively, immediately preceding such Payment
Date. With respect to any Purchase Date, the “related Cutoff Date” will mean the Cutoff Date established for the closing
of the purchase of Receivables on that Purchase Date.

 

(D)         Use
of “outstanding” etc. Whenever the term “outstanding Notes,” “outstanding principal amount”
and words of similar import are used in this Appendix or any Basic Document for purposes of determining whether the Noteholders
of the requisite outstanding principal amount of the Notes have given any request, demand, authorization, direction, notice, consent
or waiver hereunder or under any Basic Document, Notes owned by the Issuing Entity, any other obligor upon the Notes, the Depositor
or any Affiliate of any of the foregoing Persons (it being understood that the Owner Trustee in its individual capacity shall not
be considered an Affiliate of any of the foregoing) shall be disregarded and deemed not to be outstanding, except that, in determining
whether the Indenture Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent
or waiver, only Notes that the Indenture Trustee knows to be so owned shall be so disregarded. Notes so owned that have been pledged
in good faith may be regarded as “outstanding” if the pledgee establishes to the satisfaction of the Indenture Trustee
the pledgor’s right so to act with respect to such Notes and that the pledgee is not the Issuing Entity, any other obligor
upon the Notes, the Depositor or any Affiliate of any of the foregoing Persons.

 

(E)         Number
and Gender. Each defined term used in this Appendix or the Basic Documents has a comparable meaning when used in its plural
or singular form. Each gender-specific term used in this Appendix or the Basic Documents has a comparable meaning whether used
in a masculine, feminine or gender-neutral form.

 

    	 	App. A-27	 

     

    

 

(F)         Including.
Whenever the term “including” (whether or not that term is followed by the phrase “but not limited to”
or “without limitation” or words of similar effect) is used in this Appendix or the Basic Documents in connection with
a listing of items within a particular classification, that listing will be interpreted to be illustrative only and will not be
interpreted as a limitation on, or exclusive listing of, the items within that classification.

 

(G)         UCC
References. References to sections or provisions of Article 9 of the UCC in any of the Basic Documents shall be deemed to be
automatically updated to reflect the successor, replacement or functionally equivalent sections or provisions of Revised Article
9, Secured Transactions (2000) at any time in any jurisdiction which has made such revised article effective.

 

    	 	App. A-28	 

     

    

 

APPENDIX
B

 

Additional Representations and Warranties

 

		1.	This Agreement, the Receivables Purchase Agreement and the Indenture create a valid and continuing
security interest (as defined in the applicable UCC) in the Receivables in favor of the Indenture Trustee, which security interest
is prior to all other Liens, and is enforceable as such as against creditors of and purchasers from World Omni, the Depositor and
the Trust, respectively.

 

		2.	World Omni has taken all steps necessary to perfect its security interest against each Obligor
in the property securing the Receivables.

 

		3.	The Receivables constitute “tangible chattel paper” or “electronic chattel paper”
within the meaning of the applicable UCC.

 

		4.	World Omni owns and has good and marketable title to the Receivables and will transfer the Receivables
free and clear of any Lien, claim or encumbrance of any Person.

 

		5.	World Omni has caused or will have caused, within ten days, the filing of all appropriate financing
statements in the proper filing office in the appropriate jurisdictions under applicable law in order to perfect the security interest
in the Receivables granted to the Depositor under the Receivables Purchase Agreement, to the Issuing Entity hereunder and to the
Indenture Trustee under the Indenture.

 

		6.	With respect to Receivables that constitute tangible chattel paper, all original executed copies
of each Contract that constitute or evidence the Receivable have been delivered to the Servicer for the benefit of the Depositor,
the Issuing Entity and the Indenture Trustee.

 

		7.	With respect to Receivables that constitute electronic chattel paper, only one authoritative copy
of each Contract that constitutes or evidences the Receivable exists. Each such authoritative copy (a) is unique, identifiable,
and unalterable (other than with the participation of the Depositor, the Issuing Entity and the Indenture Trustee pursuant to the
Basic Documents in the case of an addition or change of an identified assignee and other than a revision that is readily identifiable
as an authorized or unauthorized revision), and (b) has been communicated to and is maintained by the Servicer or a third party
provider acting on behalf of the Servicer. The authoritative copy of the related Contract identifies only World Omni Financial
Corp. as the assignee thereof. Each copy of the authoritative copy of the related Contract and any copy of a copy are readily identifiable
as copies that are not the authoritative copy. Each Receivable has been established in a manner such that (a) all copies or revisions
that add or change an identified assignee of the authoritative copy of each Contract that constitutes or evidences the Receivable
must be made with the participation of the Depositor, the Issuing Entity and the Indenture Trustee pursuant to the Basic Documents,
and (b) all revisions of the authoritative copy of each contract that constitute or evidence the Receivable must be readily identifiable
as an authorized or unauthorized revision. The Servicer is maintaining the authoritative copy of each Contract that constitutes
or evidences the Receivables solely on behalf and for the benefit of the Depositor, the Issuing Entity and the Indenture Trustee
under the Basic Documents.

 

    App. B-1

     

    

 

		8.	Other than (a) any security interests which have been released prior to or in connection with the
execution of the Basic Documents and (b) the security interests granted to the Depositor, the Issuing Entity, and the Indenture
Trustee pursuant to the Basic Documents, none of World Omni, the Depositor or the Issuing Entity has pledged, assigned, sold, granted
a security interest in, or otherwise conveyed any of the Receivables. None of World Omni, the Depositor or the Issuing Entity has
authorized the filing of, and is not aware of, any financing statements against World Omni, the Depositor or the Issuing Entity
that include a description of collateral covering the Receivables other than any financing statement relating to the security interests
granted to the Depositor, the Issuing Entity, and the Indenture Trustee under the Basic Documents or a financing statement that
has been terminated with respect to the Receivables. None of World Omni, the Depositor or the Issuing Entity is aware of any judgment
or tax lien filings against World Omni, the Depositor or the Issuing Entity.

 

		9.	None of the Seller, the Depositor or the Issuing Entity or any vaulting agent thereof has communicated
an authoritative copy of any Contract that constitutes or evidences the Receivables to any Person other than the Servicer.

 

		10.	World Omni, as Servicer (in its capacity as custodian), has in its possession all original copies
of the Contracts that constitute or evidence the Receivables. The Receivables Files that constitute or evidence the Receivables
do not have any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than
the Depositor, the Issuing Entity or the Indenture Trustee. All financing statements filed or to be filed against World Omni, the
Depositor or the Issuing Entity in favor of the Depositor, the Issuing Entity or the Indenture Trustee, respectively, in connection
herewith describing the Receivables contain a statement to the following effect: “A purchase of or security interest in any
collateral described in this financing statement will violate the rights of the Noteholders.”

 

    App. B-2

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