Document:

EXHIBIT 10.4

 

 

World
Omni Financial Corp.,

as Servicer

 

WORLD
OMNI LT,

as Titling Trust

 

and

 

AL
Holding Corp., 

as Closed-End Collateral Agent

 

Exchange
Note Servicing Supplement 2019-B TO 

CLOSED-END SERVICING AGREEMENT

 

Dated as of August 21, 2019 

 

 

    	 	 

     

    

 

Table of
Contents

 

 

 

	 	 	Page
	 	 	 
	Article XI DEFINITIONS	2
	SECTION 11.1	DEFINITIONS	2
	 	 	 
	Article XII REPRESENTATIONS AND WARRANTIES OF THE SERVICER	2
	SECTION 12.1	EXISTENCE AND POWER	2
	SECTION 12.2	AUTHORIZATION AND NO CONTRAVENTION	3
	SECTION 12.3	NO CONSENT REQUIRED	3
	SECTION 12.4	BINDING EFFECT	3
	SECTION 12.5	ACCURACY OF INFORMATION	3
	SECTION 12.6	NO PROCEEDINGS	3
	 	 	 
	Article XIII SPECIFIC REQUIREMENTS FOR ADMINISTRATION AND SERVICING OF THE REFERENCE POOL	3
	SECTION 13.1	APPOINTMENT OF THE SERVICER	3
	SECTION 13.2	SERVICER BOUND BY CLOSED-END SERVICING AGREEMENT	4
	SECTION 13.3	APPLICATION OF PROCEEDS	5
	SECTION 13.4	SERVICER CERTIFICATE	6
	SECTION 13.5	SERVICER FEE	6
	SECTION 13.6	INSURANCE LAPSES; REPAIRS	6
	SECTION 13.7	LICENSING OF TITLING TRUST	6
	SECTION 13.8	COMMUNICATION BETWEEN NOTEHOLDERS	6
	SECTION 13.9	PAYMENT OF FEES AND EXPENSES	6
	SECTION 13.10	ANNUAL INDEPENDENT PUBLIC ACCOUNTANTS’ SERVICING REPORT	7
	SECTION 13.11	ANNUAL OFFICER’S CERTIFICATE	7
	SECTION 13.12	POST-MATURITY TERM EXTENSION	8
	SECTION 13.13	INSURANCE POLICIES; ADDITIONAL INSUREDS	8
	SECTION 13.14	SECURITY DEPOSITS	8
	 	 	 
	Article XIV TERMINATION OF THE SERVICER	8
	SECTION 14.1	TERMINATION OF THE SERVICER AS TO THE SERIES 2019-B REFERENCE POOL	8
	SECTION 14.2	NO EFFECT ON OTHER PARTIES	10
	 	 	 
	Article XV OPTIONAL PURCHASE OF THE CLOSED-END EXCHANGE NOTE	10
	SECTION 15.1	OPTIONAL PURCHASE OF THE CLOSED-END EXCHANGE NOTE	10
	 	 	 
	Article XVI MISCELLANEOUS	10
	SECTION 16.1	AMENDMENT	10
	SECTION 16.2	GOVERNING LAW	11
	SECTION 16.3	NOTICES	12

 

    	 	i	 

     

    

 

	SECTION 16.4	THIRD-PARTY BENEFICIARIES	12
	SECTION 16.5	SEVERABILITY	12
	SECTION 16.6	BINDING EFFECT	13
	SECTION 16.7	ARTICLE AND SECTION HEADINGS	13
	SECTION 16.8	EXECUTION IN COUNTERPARTS	13
	SECTION 16.9	FURTHER ASSURANCES	13
	SECTION 16.10	EACH EXCHANGE NOTE SEPARATE; ASSIGNEES OF EXCHANGE NOTE	13
	SECTION 16.11	NO PETITION	14
	SECTION 16.12	SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL	14
	SECTION 16.13	LIMITATION OF LIABILITY OF VT INC	15
	SECTION 16.14	INFORMATION REQUESTS	15
	SECTION 16.15	REGULATION AB	15
	SECTION 16.16	CREDIT RISK RETENTION	15
	SECTION 16.17	EU RISK RETENTION.	15

 

    	 	ii	 

     

    

 

Exchange
Note Servicing Supplement 2019-B TO

CLOSED-END SERVICING AGREEMENT

 

THIS Exchange
Note Servicing Supplement 2019-B TO CLOSED-END SERVICING AGREEMENT (as amended, modified or supplemented from time to time,
the “Exchange Note Servicing Supplement”), dated as of August 21, 2019, is among (i) WORLD OMNI FINANCIAL CORP.,
a Florida corporation (“World Omni”), as servicer (in such capacity, the “Servicer”), (ii)
WORLD OMNI LT, a Delaware statutory trust (the “Titling Trust”) and (iii) AL HOLDING CORP., a Delaware corporation,
as collateral agent (“ALHC” or the “Closed-End Collateral Agent”).

 

RECITALS

 

1.            The
Titling Trust, the Closed-End Collateral Agent and the Servicer have entered into that certain Fifth Amended and Restated Closed-End
Servicing Agreement, dated as of December 15, 2009, as amended, to provide that such agreement will constitute the “Closed-End
Servicing Agreement” (as defined in the Titling Trust Agreement) with respect to the Closed-End Collateral Specified
Interest, which provides, among other things, for the servicing of the Titling Trust Assets by the Servicer.

 

2.            The
Titling Trust, as Borrower, the Closed-End Collateral Agent, Bank of America, N.A., as Deal Agent, U.S. Bank National Association,
as Closed-End Administrative Agent, and the other Secured Parties named therein entered into a Fourth Amended and Restated Collateral
Agency Agreement, dated as of December 15, 2009 (as amended, modified or supplemented from time to time, the “Collateral
Agency Agreement”).

 

3.            The
Collateral Agency Agreement contemplates that from time to time the Titling Trustee, on behalf of the Titling Trust and at the
direction of the Initial Beneficiary, will identify and allocate on the Titling Trust’s books and records certain Titling
Trust Assets within separate Reference Pools and create and issue to the Initial Beneficiary a Closed End Exchange Note.

 

4.            Concurrently
herewith, World Omni Auto Leasing LLC (the “Depositor”) will purchase the Exchange Note, which represents the
2019-B Reference Pool, from the Initial Beneficiary and World Omni Automobile Lease Securitization Trust 2019-B, a Delaware statutory
trust (the “Issuing Entity”), will purchase the Exchange Note, which represents the 2019-B Reference Pool, from
the Depositor. The Issuing Entity is expected to fund such purchase from proceeds of the issuance of the Notes and Certificates.

 

5.            Concurrently
herewith, the Issuing Entity is entering into an asset-backed financing transaction pursuant to, among other agreements, an Indenture,
dated as of the date hereof, (the “Indenture”) with MUFG Union Bank, N.A., as indenture trustee (the “Indenture
Trustee”), pursuant to which the Issuing Entity will issue asset-backed notes and will grant a security interest to the
Indenture Trustee in certain of its assets.

 

    	 	 	 

     

    

 

6.            Concurrently
herewith, the Titling Trust, the Closed-End Collateral Agent, the Closed-End Administrative Agent, and the other Secured Parties
named therein are entering into that certain Exchange Note Supplement 2019-B to the Collateral Agency Agreement (as amended, modified
or supplemented from time to time, the “Exchange Note Supplement”) to supplement the terms of the Collateral
Agency Agreement (i) to cause the Titling Trustee to identify and allocate Titling Trust Assets to a particular Reference Pool
(the “Reference Pool”), which shall consist of Titling Trust Assets which shall constitute Exchange Note Assets,
(ii) to create and issue to Auto Lease Finance LLC a Closed-End Exchange Note and (iii) to set forth the terms and conditions thereof.

 

7.            The
Titling Trust desires to retain the Servicer to provide certain services with respect to the 2019-B Reference Pool allocated to
the Closed-End Exchange Note owned by the Issuing Entity, and the parties hereto desire, pursuant to this Exchange Note Servicing
Supplement, to supplement the terms of the Closed-End Servicing Agreement insofar as they apply to the 2019-B Reference Pool, providing
for specific servicing obligations that will benefit the Issuing Entity, as holder of the Closed-End Exchange Note, and the Indenture
Trustee, as the pledgee of the Closed-End Exchange Note on behalf of the Noteholders.

 

NOW THEREFORE, in consideration
of the premises and the mutual covenants herein contained and in the Closed-End Servicing Agreement, the parties hereto agree to
the following supplemental obligations with regard to the Closed-End Exchange Note:

 

Article
XI

DEFINITIONS

 

SECTION
11.1        DEFINITIONS. For all purposes of this Exchange Note Servicing Supplement, except as otherwise expressly
provided or unless the context otherwise requires, (a) unless otherwise defined herein, all capitalized terms used herein shall
have the meanings attributed to them (i) by Appendix A to the Indenture, (ii) if not defined therein, by Appendix A
to the Collateral Agency Agreement or (iii) if not defined therein, by the Titling Trust Agreement, (b) the capitalized terms
defined in this Exchange Note Servicing Supplement have the meanings assigned to them in this Exchange Note Servicing Supplement
and include (i) all genders and (ii) the plural as well as the singular, (c) all references to words such as “herein”,
“hereof” and the like shall refer to this Exchange Note Servicing Supplement as a whole and not to any particular
article or section within this Exchange Note Servicing Supplement, (d) the term “include” and all variations thereon
shall mean “include without limitation”, and (e) the term “or” shall include “and/or”.

 

Article
XII

REPRESENTATIONS AND WARRANTIES
OF THE SERVICER

 

The Servicer represents
and warrants to the Depositor, the Issuing Entity and the Indenture Trustee on behalf of the Noteholders as follows:

 

SECTION
12.1        EXISTENCE AND POWER. The Servicer is a corporation duly organized,
validly existing and in good standing under the laws of the State of Florida and has all power and authority required to carry
on its business as it is now conducted. The Servicer has obtained all necessary licenses and approvals in all jurisdictions where
the failure to do so would materially and adversely affect the business, properties, financial condition or results of operations
of the Servicer, taken as a whole.

 

    	 	2	 

     

    

 

SECTION
12.2        AUTHORIZATION AND NO CONTRAVENTION. The execution, delivery
and performance by the Servicer of each Transaction Document to which it is a party (i) have been duly authorized by all necessary
corporate action and (ii) do not violate or constitute a default under (A) any applicable law, rule or regulation, (B) its organizational
instruments or (C) any agreement, contract, order or other instrument to which it is a party or its property is subject and (iii)
will not result in any Adverse Claim on any Transaction Unit or Closed-End EN Collected Amounts with respect to the 2019-B Reference
Pool or give cause for the acceleration of any indebtedness of the Servicer.

 

SECTION
12.3        NO CONSENT REQUIRED. No approval, authorization or other action
by, or filing with, any Governmental Authority is required in connection with the execution, delivery and performance by the Servicer
of any Transaction Document, other than UCC filings and other than approvals and authorizations that have previously been obtained
and filings which have previously been made.

 

SECTION
12.4        BINDING EFFECT. Each Transaction Document to which the Servicer
is a party constitutes the legal, valid and binding obligation of the Servicer enforceable against the Servicer in accordance
with its terms, except as limited by bankruptcy, insolvency, or other similar laws of general application relating to or affecting
the enforcement of creditors’ rights generally and subject to general principles of equity.

 

SECTION
12.5        ACCURACY OF INFORMATION. All information heretofore furnished
by or on behalf of the Servicer in writing to the Closed-End Administrative Agent for purposes of or in connection with this Agreement
or any transaction contemplated hereby is true and accurate in all material respects on and as of the date such information was
furnished (except to the extent that such furnished information relates solely to an earlier date, in which case such information
is true and accurate in all material respects on and as of such earlier date).

 

SECTION
12.6        NO PROCEEDINGS. There is no action, suit, proceeding or investigation
pending or, to the knowledge of the Servicer, threatened against the Servicer which, either in any one instance or in the aggregate,
would result in any material adverse change in the business, operations, financial condition, properties or assets of the Servicer,
or in any material impairment of the right or ability of the Servicer to carry on its business substantially as now conducted,
or in any material liability on the part of the Servicer, or which would render invalid this Agreement or the Transaction Units
or the obligations of the Servicer contemplated herein, or which would materially impair the ability of the Servicer to perform
under the terms of this Agreement or any other Transaction Document.

 

Article
XIII

SPECIFIC REQUIREMENTS FOR

ADMINISTRATION AND SERVICING
OF THE

REFERENCE POOL

 

SECTION
13.1        APPOINTMENT OF THE SERVICER.

 

(a)          The
Servicer shall manage, service and administer the Exchange Note Assets for the benefit of each holder and pledgee of the Closed-End
Exchange Note and shall make collections on the Transaction Units in accordance with its Credit and Collection Policy in effect
from time to time, using the same degree of skill and attention that the Servicer exercises with respect to all comparable retail
automotive leases that it services for itself or others.

 

    	 	3	 

     

    

 

(b)          The
Servicer may delegate its duties and obligations as Servicer in accordance with Section 3.5 of the Closed-End Servicing
Agreement.

 

(c)          If
the Servicer shall commence a legal proceeding to enforce a Transaction Unit, the Titling Trust shall thereupon be deemed to have
automatically assigned, solely for the purpose of collection, such Transaction Unit to the Servicer. If in any enforcement suit
or legal proceeding it shall be held that the Servicer may not enforce a Transaction Unit on the ground that it is not a real party
in interest or a holder entitled to enforce such Transaction Unit, the Closed-End Collateral Agent shall, at the Servicer’s
expense and direction, take steps to enforce such Transaction Unit, including bringing suit in its name.

 

(d)          The
Servicer shall account for the Transaction Units allocated to the 2019-B Reference Pool separately from any Other Reference Pool,
any Unencumbered Reference Pool and the Warehouse Facility Pool.

 

SECTION
13.2        SERVICER BOUND BY CLOSED-END SERVICING AGREEMENT.

 

(a)          The
Servicer shall continue to be bound by all provisions of the Closed-End Servicing Agreement with respect to the Transaction Units
allocated to the 2019-B Reference Pool, including the provisions of Article VI thereof relating to the administration and
servicing of Closed-End Leases; and the provisions set forth herein shall operate either as additions to or modifications of the
existing obligations of the Servicer under the Closed-End Servicing Agreement, as the context may require. In the event of any
conflict between the provisions of this Exchange Note Servicing Supplement and the Closed-End Servicing Agreement with respect
to the Closed-End Exchange Note, the provisions of this Exchange Note Servicing Supplement shall prevail; provided, however,
that Section 5.1(d) of the Servicing Agreement shall at all times govern the Required Deposit Amount.

 

(b)          For
purposes of determining the Servicer’s obligations with respect to the servicing of the 2019-B Reference Pool under this
Exchange Note Servicing Supplement, general references in the Closed-End Servicing Agreement to: (i) a Reference Pool shall be
deemed to refer more specifically to the 2019-B Reference Pool; (ii) an Exchange Note Servicing Supplement shall be deemed to refer
more specifically to this Exchange Note Servicing Supplement; and (iii) an Exchange Note Supplement shall be deemed to refer more
specifically to the Exchange Note Supplement related to the 2019-B Reference Pool.

 

    	 	4	 

     

    

 

(c)          Notwithstanding
any other provision of this Exchange Note Servicing Supplement or the Servicing Agreement, including Section 6.7 thereof,
the Servicer shall not in connection with any early lease termination program terminate or permit any Closed-End Obligor to terminate
any Closed-End Lease and remove the related Closed-End Vehicle from the 2019-B Reference Pool in connection with such termination
unless there shall have been deposited into the Exchange Note Collection Account an amount equal to the Securitization Value of
such Closed-End Vehicle as of the termination date of such Closed-End Lease, provided, however, that the Servicer
may at any time prior to the Maturity Date of a Closed-End Lease, agree to terminate such Closed-End Lease, provided the related
Closed-End Obligor has made all remaining scheduled payments with respect to such Closed-End Lease and surrendered the related
Closed-End Vehicle.

 

SECTION
13.3        APPLICATION OF PROCEEDS.

 

(a)          Prior
to the satisfaction and discharge of the Indenture with respect to the Collateral and subject to the provision of Section 5.1(d)
of the Closed-End Servicing Agreement, the Servicer shall deposit an amount equal to all Closed-End Exchange Note Collections received
in respect of the 2019-B Reference Pool during any Closed-End EN Collection Period into the Exchange Note Collection Account on
or prior to 2:00 p.m., New York City time, on the Business Day immediately preceding the related Closed-End Exchange Note Payment
Date; provided, however, that if the Monthly Remittance Condition is not satisfied, the Servicer will be required
to deposit an amount equal to all Closed-End Exchange Note Collections into the Exchange Note Collection Account within two Business
Days after receipt (including receipt of proper instructions regarding where to allocate such payment), (it being understood that,
with respect to Relinquished Vehicle Proceeds, the Servicer shall remit the Relinquished Vehicle Proceeds in accordance with Section
5.1(d) of the Closed-End Servicing Agreement). The “Monthly Remittance Condition” shall be deemed to be
satisfied if (i) World Omni is the Servicer, (ii) no Exchange Note Servicer Default has occurred and is continuing, and (iii) after
providing prior notice, World Omni receives notice from the Rating Agencies that the cessation of daily deposits will not result
in a reduction or withdrawal of the then current rating of the Notes. Pending deposit into the Exchange Note Collection Account,
Closed-End Exchange Note Collections may be used by the Servicer at its own risk and for its own benefit and will not be segregated
from its own funds.

 

(b)          After
the satisfaction and discharge of the Indenture with respect to the Collateral, the Servicer shall deposit an amount equal to Closed-End
Exchange Note Collections in accordance with the instructions provided from time to time by the holder of the Exchange Note.

 

(c)          Notwithstanding
anything to the contrary contained in this Agreement, for so long as the Monthly Remittance Condition has been satisfied, the Servicer
shall be permitted to deposit into the Exchange Note Collection Account only the net amount distributable to the Issuing Entity,
as holder of the Exchange Note, and to retain any reimbursement for outstanding Servicing Fees, on the Closed-End Exchange Note
Payment Date. The Servicer shall, however, account for all Closed-End Exchange Note Collections as if all of the deposits and distributions
described herein were made individually.

 

    	 	5	 

     

    

 

SECTION
13.4        SERVICER CERTIFICATE. On or before the close of business on
each Determination Date prior to the satisfaction and discharge of the Indenture with respect to the Collateral, the Servicer
shall make available to the Indenture Trustee, the Issuing Entity, the Administrator, the Closed-End Administrative Agent, the
Closed-End Collateral Agent, the Owner Trustee and the Paying Agent at https://via.intralinks.com/, or such other website or distribution
service or provider as the Servicer shall designate by written notice to the Indenture Trustee, the Issuing Entity, the Administrator,
the Closed-End Administrative Agent, the Closed-End Collateral Agent, the Owner Trustee and the Paying Agent, a Servicer Certificate
reflecting information as of the close of business of the Servicer for the immediately preceding Closed-End EN Collection Period
containing the information described in Section 8.3 of the Indenture. For the avoidance of doubt, such information shall
include any Benchmark related information as described in Section 8.3(b) of the Indenture.

 

SECTION
13.5        SERVICER FEE. Notwithstanding anything to the contrary in Section
3.9(b) of the Closed-End Servicing Agreement, on each Closed-End Exchange Note Payment Date, the Titling Trust will cause
the Closed-End Administrative Agent to pay to the Servicer in accordance with Section 13.2 of the Exchange Note Supplement,
the Servicing Fee for the immediately preceding Closed-End EN Collection Period as compensation for its services. In addition,
the Servicer may retain any Supplemental Servicing Fees. The Servicer may, as long as it believes that sufficient collections
will be available on one or more future Closed-End Exchange Note Payment Dates to pay the Servicing Fee, by notice to the Closed-End
Administrative Agent on or before a Closed-End Exchange Note Payment Date, elect to defer all or a portion of the Servicing Fee
with respect to the related Closed-End EN Collection Period, without interest. If the Servicer defers all of the Servicing Fee,
the Servicing Fee for such related Closed-End EN Collection Period will be deemed to equal zero.

 

SECTION
13.6        INSURANCE LAPSES; REPAIRS. The Servicer shall have no liability
in the event that any Closed-End Obligor fails to maintain, in full force and effect, a physical damage insurance policy covering
any Transaction Unit or naming the Titling Trust as loss payee. Without limiting the foregoing, in no event shall the Servicer
be obligated to perform or be liable for any repairs or maintenance with respect to any Transaction Unit.

 

SECTION
13.7        LICENSING OF TITLING TRUST. The Servicer shall cause the Titling
Trust to apply for and maintain at all times all licenses and permits necessary to carry on the Titling Trust’s leasing
business in each jurisdiction in which the Titling Trust operates, except where the failure to have any license or permit would
not materially and adversely affect the business, properties, financial condition or results of operation of the Titling Trust,
taken as a whole.

 

SECTION
13.8        COMMUNICATION BETWEEN NOTEHOLDERS. The Servicer will comply
with its obligations under Section 7.2(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.

 

SECTION
13.9        PAYMENT OF FEES AND EXPENSES. The Servicer shall pay all expenses
incurred in connection with the administration and servicing of the 2019-B Reference Pool and the Transaction Units, including,
without limitation, expenses incurred by it in connection with its activities hereunder, including fees and disbursements of the
Titling Trustee, independent accountants, taxes imposed on the Servicer and any Titling Trustee indemnity claims.

 

    	 	6	 

     

    

 

SECTION
13.10       ANNUAL INDEPENDENT PUBLIC ACCOUNTANTS’ SERVICING REPORT.

 

(a)          On
or before the 90th day following the end of each fiscal year, beginning with the fiscal year ending December 31, 2019, the Servicer
shall cause a firm of independent public accountants (who may also render other services to the Servicer, the Depositor or their
respective Affiliates) to furnish to the Indenture Trustee, the Servicer (who promptly shall provide the assessment described in
this Section 13.10(a) to each Rating Agency) and the Depositor each attestation report on assessments of compliance with
the Servicing Criteria with respect to the Servicer or any affiliate thereof during the related fiscal year delivered by such accountants
pursuant to paragraph (c) of Rule 13a-18 or Rule 15d-18 of the Exchange Act and Item 1122 of Regulation AB. The certification
required by this paragraph may be replaced by any similar certification using other procedures or attestation standards which are
now or in the future in use by servicers of comparable assets or which otherwise comply with any rule, regulation, “no action”
letter or similar guidance promulgated by the Commission. The obligation to furnish each such report shall be deemed satisfied
upon the Servicer making each such report 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 Indenture Trustee and the Depositor.

 

(b)          Deliveries
pursuant to this Section 13.10 may be delivered by electronic mail.

 

SECTION
13.11       ANNUAL OFFICER’S CERTIFICATE.

 

(a)          The
Servicer will make available to the Rating Agencies, the Issuing Entity and the Indenture Trustee on or before the 90th day following
the end of each fiscal year, beginning with the fiscal year ending December 31, 2019, at https://via.intralinks.com/, or such other
website or distribution service or provider as the Servicer shall designate by written notice to the Rating Agencies, the Issuing
Entity and the Indenture Trustee, an Officers’ Certificate providing such information as is required under Item 1123 of Regulation
AB.

 

(b)          The
Servicer will make available to the Issuing Entity and the Indenture Trustee, on or before the 90th day following the end of each
fiscal year, beginning with the fiscal year ending December 31, 2019, at https://via.intralinks.com/, or such other website or
distribution service or provider as the Servicer shall designate by written notice to the Issuing Entity and the Indenture Trustee,
a report 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 required under paragraph
(b) of Rule 13a-18, Rule 15d-18 of the Exchange Act and Item 1122 of Regulation AB.

 

    	 	7	 

     

    

 

SECTION
13.12      POST-MATURITY TERM EXTENSION. Consistent with its Credit and
Collection Policy, the Servicer may, in its discretion, grant a Post-maturity Term Extension with respect to any Closed-End Lease
in the 2019-B Reference Pool. If the Servicer grants a Post-maturity Term Extension with respect to a Closed-End Lease in the
2019-B Reference Pool beyond the month immediately preceding the month in which the Final Scheduled Payment Date of the most subordinate
class of Notes occurs, then the Servicer shall direct the Titling Trustee to reallocate the Transaction Unit related to such Closed-End
Lease from the 2019-B Reference Pool to the Warehouse Facility Pool or any Unencumbered Reference Pool on the Closed-End Exchange
Note Payment Date following the beginning of the Closed-End EN Collection Period during which such Post-maturity Term Extension
was granted. In consideration for such reallocation, the Servicer shall make a payment to the Issuing Entity equal to the Securitization
Value of such Transaction Unit as of the end of the Closed-End EN Collection Period preceding such Closed-End Exchange Note Payment
Date by depositing such amount into the Exchange Note Collection Account prior to 2:00 p.m., New York City time, on the Business
Day immediately preceding such Closed-End Exchange Note Payment Date. None of the Servicer, the Titling Trustee, the Closed-End
Collateral Agent, the Closed-End Administrative Agent, 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 reallocation of any Transaction Unit under this Section 13.12 or whether
any Transaction Unit is required to be reallocated under this Section 13.12.

 

SECTION
13.13      INSURANCE POLICIES; ADDITIONAL INSUREDS. The Servicer shall
cause all policies of insurance required to be maintained pursuant to Section 3.7 of the Closed-End Servicing Agreement
to name the Depositor, the Issuing Entity, the Owner Trustee and the Indenture Trustee as additional insureds.

 

SECTION
13.14      SECURITY DEPOSITS. In accordance with Section 5.1(d)
of the Closed-End Servicing Agreement, on the Closed-End Exchange Note Payment Date related to the Closed-End EN Collection Period
in which a Security Deposit becomes a Closed-End Exchange Note Collection with respect to the 2019-B Reference Pool, the Servicer
shall deposit such amounts (including, as applicable, any Required Deposit Amount) in the Exchange Note Collection Account.

 

Article
XIV

TERMINATION OF THE SERVICER

 

SECTION
14.1        TERMINATION OF THE SERVICER AS TO THE SERIES 2019-B REFERENCE
POOL.

 

(a)          As
used herein “Exchange Note Servicer Default” means the occurrence and continuance of the events set forth in
Section 8.3(a) of the Closed-End Servicing Agreement. Upon the occurrence and continuation of any Exchange Note Servicer
Default, the Servicer shall provide to the Indenture Trustee, the Issuing Entity, the Administrator, the Closed-End Collateral
Agent and each Rating Agency prompt notice specifying such Exchange Note Servicer Default, together with a description of its efforts
to perform its obligations. The Servicer may not resign except in accordance with Section 8.4 of the Closed-End Servicing
Agreement.

 

    	 	8	 

     

    

 

(b)          If
an Exchange Note Servicer Default shall have occurred and be continuing, the Titling Trustee on behalf of the holder of the Exchange
Note, shall, at the direction of the Required Related Holders, by notice given to the Servicer (who promptly shall provide such
notice to each Rating Agency), the Issuing Entity, the Indenture Trustee, the Closed-End Collateral Agent and the Administrator,
terminate the rights and obligations of the Servicer under this Exchange Note Servicing Supplement and the Closed-End Servicing
Agreement with respect to the Exchange Note and the Included Units. In the event the Servicer is removed or resigns as Servicer
with respect to servicing the Exchange Note Assets, the Required Related Holders shall appoint a successor Servicer. With respect
to any Exchange Note Servicer Default, the Closed-End Administrative Agent, acting on the direction of the Required Related Holders
may waive any default of the Servicer. For purposes of this Section, so long as the Lien of the Indenture is in place, the “Required
Related Holders” shall be deemed to be the Indenture Trustee, acting at the direction of the Holders of not less than
66 2/3% of the Outstanding Notes and thereafter, the Issuing Entity, acting at the direction of the Majority Certificateholders.

 

(c)          If
replaced, the Servicer agrees that it will use commercially reasonable efforts to effect the orderly and efficient transfer of
the servicing of the Transaction Units to a successor Servicer.

 

(d)          Upon
the effectiveness of the assumption by the successor Servicer of its duties pursuant to this Section 14.1, the successor
Servicer shall be the successor in all respects to the Servicer in its capacity as Servicer under the Closed-End Servicing Agreement
with respect to the 2019-B Reference Pool, and shall be subject to all the responsibilities, duties and liabilities relating thereto,
except with respect to the obligations of the predecessor Servicer that survive its termination as Servicer as set forth in Section
14.1(e). No Servicer shall resign or be relieved of its duties under the Closed-End Servicing Agreement, as Servicer of the
2019-B Reference Pool, until a newly appointed Servicer for the 2019-B Reference Pool shall have assumed the responsibilities and
obligations of the resigning or terminated Servicer under this Exchange Note Servicing Supplement. In the event of a replacement
of World Omni as Servicer, the Required Related Holders shall cause the successor Servicer to agree to indemnify World Omni against
any losses, liabilities, damages or expenses (including attorneys’ fees) as a result of the negligence or willful misconduct
of such successor Servicer.

 

(e)          No
termination or resignation of the Servicer as to the 2019-B Reference Pool shall affect the obligations of the Servicer pursuant
to Section 3.3(c) of the Closed-End Servicing Agreement; provided that following the replacement of the Servicer
pursuant to this Section 14.1, such Servicer shall have no duties, responsibilities or other obligations hereunder with
respect to matters arising after such replacement.

 

    	 	9	 

     

    

 

SECTION
14.2        NO EFFECT ON OTHER PARTIES. Upon any termination of the rights
and powers of the Servicer with respect to the 2019-B Reference Pool pursuant to Section 14.1 hereof, or upon any appointment
of a successor Servicer with respect to the 2019-B Reference Pool, all the rights, powers, duties and obligations of the Titling
Trustees, the Initial Beneficiary and World Omni under the Titling Trust Agreement, the Closed-End Servicing Agreement, the Exchange
Note Supplement, any other supplement, any other Exchange Note Servicing Supplement or any other Basic Document shall remain unaffected
by such termination or appointment and shall remain in full force and effect thereafter, except as otherwise expressly provided
herein or therein.

 

Article
XV

OPTIONAL
PURCHASE OF THE CLOSED-END EXCHANGE NOTE

 

SECTION
15.1        OPTIONAL PURCHASE OF THE CLOSED-END EXCHANGE NOTE.

 

(a)          If
the Outstanding Amount of the Notes is equal to or less than 5% of the Initial Note Balance on the last day of any Closed-End EN
Collection Period, the Servicer shall have the option to purchase the Closed-End Exchange Note on the immediately following Closed-End
Exchange Note Payment Date (and on each Closed-End Exchange Note Payment Date thereafter) and direct the Issuing Entity to redeem
the Notes pursuant to Section 10.1 of the Indenture (an “Optional Redemption”). To exercise such option,
the Servicer shall deposit pursuant to Section 13.3 hereof into the Trust Collection Account an amount, as calculated by
the Servicer, equal to the Exchange Note Balance and all accrued interest thereon up to but not including the Redemption Date (the
“Exchange Note Purchase Price”), and shall succeed to all interests in and to the Issuing Entity. Notwithstanding
the foregoing, the Servicer shall not be permitted to exercise such option unless the amount to be deposited into the Trust Collection
Account pursuant to the preceding sentence is greater than or equal to the sum of the Outstanding Amount of the Notes, and all
accrued but unpaid interest (including any overdue interest and premium) thereon and all amounts owing to the Asset Representations
Reviewer under the Asset Representations Review Agreement.

 

(b)          As
described in Section 9.01(c) of the Trust Agreement, notice of any termination of the Issuing Entity shall be given by the
Servicer to the Owner Trustee, the Closed-End Collateral Agent and the Indenture Trustee as soon as practicable after the Servicer
has received notice thereof.

 

Article
XVI

MISCELLANEOUS

 

SECTION
16.1        AMENDMENT.

 

(a)          Notwithstanding
any provision of the Closed-End Servicing Agreement, the Closed-End Servicing Agreement, as supplemented by this Exchange Note
Servicing Supplement, to the extent that it deals solely with the 2019-B Reference Pool, may be amended in accordance with this
Section 16.1.

 

    	 	10	 

     

    

 

(b)          Any
term or provision of the Closed-End Servicing Agreement or this Exchange Note Servicing Supplement may be amended by the Servicer,
without the consent of any other Person; provided that (i) any amendment that materially and adversely affects the interests
of the Exchange Noteholder shall require the consent of the Exchange Noteholder, (ii) any amendment that materially and adversely
affects the interests of the Closed-End Collateral Agent shall require the consent of the Closed-End Collateral Agent, and (iii)
any amendment that materially and adversely affects the interests of the Titling Trustee shall require the prior written consent
of the Titling Trustee. An amendment shall be deemed not to materially and adversely affect the interests of the Exchange Noteholder
if the Rating Agency Condition is satisfied with respect to such amendment.

 

(c)          Notwithstanding
the foregoing, no amendment shall reduce the interest rate or principal amount of any Exchange Note, or delay the final scheduled
payment date of any Exchange Note without the consent of the holder of such Exchange Note.

 

(d)          Notwithstanding
anything herein to the contrary, any term or provision of this Exchange Note Servicing Supplement may be amended by the Servicer
without the consent of any of the Exchange Noteholder or any other Person to add, modify or eliminate any provisions as may be
necessary or advisable in order to comply with or obtain more favorable treatment under or with respect to any law or regulation
or any accounting rule or principle (whether now or in the future in effect); it being a condition to any such amendment that the
Rating Agency Condition shall have been satisfied.

 

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

 

(f)          Prior
to the execution of any amendment to this Exchange Note Servicing Supplement, the Servicer shall provide each Rating Agency with
written notice of the substance of such amendment. No later than 10 Business Days after the execution of any amendment to this
Exchange Note Servicing Supplement, the Servicer shall furnish a copy of such amendment to each Rating Agency, the Titling Trustee,
the Closed-End Administrative Agent and the Closed-End Collateral Agent.

 

(g)          Prior
to the execution of any amendment to this Exchange Note Servicing Supplement, the Titling Trustee and the Closed-End Administrative
Agent shall be entitled to receive upon request and conclusively rely upon an Opinion of Counsel stating that the execution of
such amendment is authorized or permitted by the Closed-End Servicing Agreement or this Exchange Note Servicing Supplement and
that all conditions precedent to the execution and delivery of such amendment have been satisfied.

 

SECTION
16.2        GOVERNING LAW. THIS EXCHANGE NOTE SERVICING SUPPLEMENT SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL, SUBSTANTIVE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO
THE RULES THEREOF RELATING TO CONFLICTS OF LAW AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED
IN ACCORDANCE WITH SUCH LAWS.

 

    	 	11	 

     

    

 

SECTION
16.3        NOTICES. The notice provisions of the Closed-End Servicing Agreement
shall apply equally to this Exchange Note Servicing Supplement. All demands, notices and communications hereunder shall be in
writing and shall be delivered or mailed by registered or certified first-class United States mail, postage prepaid, hand delivery,
any prepaid courier service, or by telecopier or by electronic mail (if designated by a party to the other parties), and addressed
in each case as follows: (a) if to the Servicer, 190 Jim Moran Blvd., Deerfield Beach, Florida 33442, Attention: Treasurer; Facsimile:
(954) 429-2685; (b) if to the Titling Trustee, 190 S. LaSalle Street, 7th Floor, Chicago, Illinois 60603, Attention: Chris Nuxoll;
Email: christopher.nuxoll@usbank.com; Facsimile: (312) 332-7994; (c) if to the Delaware Trustee, 300 Delaware Avenue, 9th Floor,
Wilmington, Delaware 19801, Attention: Chris Nuxoll; Email: christopher.nuxoll@usbank.com; Facsimile: (312) 332-7994; (d) if to
the Closed-End Administrative Agent, 300 Delaware Avenue, 9th Floor, Wilmington, Delaware 19801, Attention: Chris Nuxoll; Email:
christopher.nuxoll@usbank.com; Facsimile: (312) 332-7994; (e) if to the Collateral Agent, c/o U.S. Bank National Association,
190 S. LaSalle Street, 7th Floor, Chicago, Illinois 60603, Attention: Chris Nuxoll; Email: christopher.nuxoll@usbank.com; Facsimile:
(312) 332-7994; or (f) if to the Closed-End Collateral Agent, c/o Lord Securities Corporation, 48 Wall Street, 27th Floor, New
York, New York 10005, Attention: World Omni Program Manager; Email: edward.oconnell@tmf-group.com; or, as to each party, at such
other address or electronic mail address as shall be designated by such party in a written notice to each other party. All notices
and demands shall be deemed to have been given upon actual receipt thereof to any officer of the Person entitled to receive such
notices and demands at the address of such Person for notices hereunder. Notwithstanding the foregoing, with the consent of the
appropriate party under this Agreement, the obligations of World Omni and any Affiliate of World Omni to deliver or provide any
demand, delivery, notice, communication or instruction to such party other than a Noteholder shall be satisfied by World Omni
or such Affiliate, as the case may be, making such demand, delivery, notice, communication or instruction available at https://via.intralinks.com/,
or such other website or distribution service or provider as World Omni or such Affiliate, as applicable, shall designate by written
notice to the other parties hereto. 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.

 

SECTION
16.4        THIRD-PARTY BENEFICIARIES. The Issuing Entity and the Indenture
Trustee, as holder and pledgee, respectively, of the Closed-End Exchange Note, and their respective successors, permitted assigns
and pledgees are third-party beneficiaries of the obligations of the parties hereto and may directly enforce the performance of
any of such obligations hereunder.

 

SECTION
16.5        SEVERABILITY. If one or more of the provisions of this Exchange
Note Servicing Supplement shall be for any reason whatever held invalid or unenforceable, such provisions shall be deemed severable
from the remaining covenants, agreements and provisions of this Exchange Note Servicing Supplement, and such invalidity or unenforceability
shall in no way affect the validity or enforceability of such remaining covenants, agreements and provisions, or the rights of
any parties hereto. To the extent permitted by law, the parties hereto waive any provision of law that renders any provision of
this Exchange Note Servicing Supplement invalid or unenforceable in any respect.

 

    	 	12	 

     

    

 

SECTION
16.6        BINDING EFFECT. The provisions of the Closed-End Servicing Agreement
and this Exchange Note Servicing Supplement, insofar as they relate to the 2019-B Reference Pool, shall be binding upon and inure
to the benefit of the respective successors and permitted assigns of the parties hereto.

 

SECTION
16.7        ARTICLE AND SECTION HEADINGS. The article and section headings
herein are for convenience of reference only, and shall not limit or otherwise affect the meaning hereof.

 

SECTION
16.8        EXECUTION IN COUNTERPARTS. This Exchange Note Servicing Supplement
may be executed in any number of counterparts, each of which so executed and delivered shall be deemed to be an original, but
all of which shall together constitute but one and the same instrument.

 

SECTION
16.9        FURTHER ASSURANCES. Each party will do such acts, and execute
and deliver to any other party such additional documents or instruments, as may be reasonably requested in order to effect the
purposes of this Exchange Note Servicing Supplement and to better assure and confirm unto the requesting party its rights, powers
and remedies hereunder.

 

SECTION
16.10      EACH EXCHANGE NOTE SEPARATE; ASSIGNEES OF EXCHANGE NOTE. Each
party hereto acknowledges and agrees (and each holder or pledgee of the Exchange Note, by virtue of its acceptance of such Exchange
Note or pledge thereof acknowledges and agrees) that (a) the Closed-End Collateral Specified Interest is a separate series of
the Titling Trust as provided in Section 3806(b)(2) of Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code Section 3801
et seq., (b) the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to (i)
the Exchange Note or the related 2019-B Reference Pool shall be enforceable against such Reference Pool only and not against any
Other Reference Pool, the Warehouse Facility Pool or any Unencumbered Reference Pool and (ii) any Other Exchange Note, any Other
Reference Pool, the Warehouse Facility Pool or any Unencumbered Reference Pool shall be enforceable against such Other Exchange
Note, Other Reference Pools, the Warehouse Facility Pool or Unencumbered Reference Pool only, as applicable, and not against the
Exchange Note or any Closed-End Units included in the 2019-B Reference Pool, (c) except to the extent required by law, the Closed-End
Units included in the Warehouse Facility Pool, Closed-End Units included in any Unencumbered Reference Pool or Closed-End Units
included in any Other Reference Pool with respect to any Other Exchange Note (other than the Exchange Note transferred hereunder
which is related to the 2019-B Reference Pool) shall not be subject to the claims, debts, liabilities, expenses or obligations
arising from or with respect to the Exchange Note in respect of such claim, (d) no creditor or holder of a claim relating to (i)
the Exchange Note or the related 2019-B Reference Pool shall be entitled to maintain any action against or recover any assets
allocated to any Other Reference Pool, the Warehouse Facility Pool, any Unencumbered Reference Pool or any Other Exchange Note
or the assets allocated thereto, and (ii) any Other Reference Pool, the Warehouse Facility Pool, any Unencumbered Reference Pool
or any Other Exchange Note other than the Exchange Note related to the 2019-B Reference Pool shall be entitled to maintain any
action against or recover any assets allocated to the 2019-B Reference Pool, and (e) any purchaser, assignee or pledgee of an
interest in the 2019-B Reference Pool or, the Exchange Note, must, prior to or contemporaneously with the grant of any such assignment,
pledge or security interest, (i) give to the Titling Trust a non-petition covenant substantially similar to that set forth in
Section 11.10 of the Titling Trust Agreement, and (ii) execute an agreement for the benefit of each holder, assignee or
pledgee from time to time of any Other Exchange Note to release all claims to the assets of the Titling Trust allocated to the
Warehouse Facility Pool, any Unencumbered Reference Pool and each Other Reference Pool and, in the event that such release is
not given effect, to fully subordinate all claims it may be deemed to have against the assets of the Titling Trust allocated to
the Warehouse Facility Pool, any Unencumbered Reference Pool and each Other Reference Pool. Pursuant to Section 3.1(a)
of the Intercreditor Agreement, on the date hereof, each party hereto shall enter into a Joinder Agreement to the Intercreditor
Agreement as a new Interest Holder, and shall deliver an executed copy of such Joinder Agreement to each party to the Intercreditor
Agreement.

 

    	 	13	 

     

    

 

SECTION
16.11      NO PETITION. With respect to each Bankruptcy Remote Party,
each party hereto (and each holder and pledgee of the Closed-End Exchange Note, by virtue of its acceptance of such Closed-End
Exchange Note or pledge thereof) agrees that, prior to the date which is one year and one day after payment in full of all obligations
under each Financing, (i) no party hereto shall authorize such Bankruptcy Remote Party to commence a voluntary winding-up or other
voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to such Bankruptcy Remote
Party or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect in any jurisdiction or seeking
the appointment of an administrator, trustee, receiver, liquidator, custodian or other similar official with respect to such Bankruptcy
Remote Party or any substantial part of its property or to consent to any such relief or to the appointment of or taking possession
by any such official in an involuntary case or other proceeding commenced against such Bankruptcy Remote Party, or to make a general
assignment for the benefit of any party hereto or any other creditor of such Bankruptcy Remote Party, and (ii) none of the parties
hereto shall commence or join with any other Person in commencing any proceeding against such Bankruptcy Remote Party under any
bankruptcy, reorganization, liquidation or insolvency law or statute now or hereafter in effect in any jurisdiction.

 

SECTION
16.12      SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL. Each of the
parties hereto hereby irrevocably and unconditionally:

 

(a)          submits
for itself and its property in any legal action or proceeding relating to this Agreement or any documents executed and delivered
in connection herewith, or for recognition and enforcement of any judgment in respect thereof, to the nonexclusive general jurisdiction
of the courts of the State of New York, the courts of the United States of America for the Southern District of New York and appellate
courts from any thereof;

 

(b)          consents
that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to
the venue of such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court
and agrees not to plead or claim the same;

 

(c)          agrees
that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail
(or any substantially similar form of mail), postage prepaid, to such Person at its address determined in accordance with Section
16.3 of this Exchange Note Servicing Supplement; and

 

    	 	14	 

     

    

 

(d)          agrees
that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the
right to sue in any other jurisdiction.

 

SECTION
16.13      LIMITATION OF LIABILITY OF VT INC. Notwithstanding anything
contained herein to the contrary, this Exchange Note Servicing Supplement has been signed by VT Inc. not in its individual capacity
but solely in its capacity as Titling Trustee and in no event shall VT Inc. in its individual capacity have any liability for
the representations, warranties, covenants, agreements or other obligations of the Titling Trust hereunder, as to all of which
recourse shall be had solely to the assets of the Titling Trust.

 

SECTION
16.14      INFORMATION REQUESTS. The parties hereto shall provide any information
reasonably requested by the Servicer, the Issuing Entity, the Depositor or any of their Affiliates, in order to comply with or
obtain more favorable treatment under any current or future law, rule, regulation, accounting rule or principle.

 

SECTION
16.15      REGULATION AB. The Servicer shall cooperate fully with the Depositor and
the Issuing Entity to deliver to the Depositor and the Issuing Entity (including any of its assignees or designees) any and all
statements, reports, certifications, records and any other information necessary in the good faith determination of the Depositor
or the Issuing Entity to permit the Depositor to comply with the provisions of Regulation AB, together with such disclosures relating
to the Servicer and the Transaction Units, or the servicing of the Transaction Units, reasonably believed by the Depositor to
be necessary in order to effect such compliance.

 

SECTION
16.16      CREDIT RISK RETENTION. World Omni shall comply in all material
respects with all requirements imposed on the “Sponsor of a Securitization” in accordance with the Credit Risk Retention
Rules, including its requirements to (i) retain, either directly or through a “majority-owned affiliate” (as such
term is defined in the Credit Risk Retention Rules) of World Omni, an economic interest in the Exchange Note in accordance with
the Credit Risk Retention Rules and shall not, and shall cause any such majority-owned affiliate to not, sell, pledge or hedge
such interest except as permitted under the Credit Risk Retention Rules and (ii) satisfy the disclosure requirements set forth
in the Credit Risk Retention Rules without any involvement from the underwriters.

 

SECTION
16.17      EU RISK RETENTION.  World Omni hereby covenants and agrees, in connection with the EU Securitization Rules as in effect and applicable on the Closing
Date, on an ongoing basis, so long as any Notes remain Outstanding:

 

(a)          World
Omni, as “originator” (as such term is defined for the purposes of the Securitization Regulation), will retain, upon
issuance of the Notes and on an ongoing basis a material net economic interest (the “EU Retained Interest”)
in the asset-backed financing transaction described in the Prospectus, in the form of retention of a first loss tranche as described
in option (d) of Article 6(3) of the Securitization Regulation, by holding (i) all the limited liability company interests in the
Depositor (or one or more wholly-owned special purpose subsidiaries of World Omni), which in turn will retain the Certificates
to be issued by the Issuing Entity, and (ii) the residual interest in the 2019-B Reference Pool, such Certificates and interest
collectively representing at least 5% of the aggregate Securitization Value of the Transaction Units in the 2019-B Reference Pool;

 

    	 	15	 

     

    

 

(b)          World
Omni will not (and will not permit the Depositor or any of its other Affiliates to) subject the EU Retained Interest to any credit
risk mitigation or hedging, or sell, transfer or otherwise surrender all or part of the rights, benefits or obligations arising
from the EU Retained Interest, except, in each case, to the extent permitted in accordance with the EU Securitization Rules;

 

(c)          World
Omni will not change the retention option or method of calculating the EU Retained Interest while any of the Notes are Outstanding,
except under exceptional circumstances in accordance with the EU Securitization Rules; and

 

(d)          World
Omni will provide ongoing confirmation of its continued compliance with its obligations in the foregoing clauses (a), (b) and (c),
(i) in or concurrently with the delivery of each monthly report to Noteholders, (ii) upon the occurrence of any Event of Default
(as defined in the Indenture) and (iii) from time to time upon request by any Noteholder in connection with (x) any change in the
structural features of the asset-backed financing transaction described in the Prospectus that could materially impact the performance
of the Notes, (y) any change in the performance of the asset-backed financing transaction described in the Prospectus or of the
Transaction Units which, in any case, could materially impact the performance of the Notes, or (z) any material breach of the Transaction
Documents.

 

[SIGNATURES ON THE FOLLOWING PAGE]

 

    	 	16	 

     

    

 

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

 

	 	AL Holding Corp., as Closed-End Collateral Agent
	 	 	 

	 	By:	/s/ Albert J. Fioravanti
	 	Name:	Albert J. Fioravanti
	 	Title:	President

 

    	 	S - 1	 

     

    

 

	 	World Omni Financial Corp., as Servicer and, with respect to
    Sections 16.16 and 16.17, individually
	 	 	 

	 	By:	/s/ Ronald J. Virtue
	 	Name:	Ronald J. Virtue
	 	Title:	Assistant Treasurer

 

    	 	S - 2	 

     

    

 

	 	
        WORLD OMNI LT

         

        By: VT Inc., not in its individual capacity but solely as Titling
        Trustee

	 	 	 

	 	By:	/s/ Christopher J. Nuxoll
	 	Name:	Christopher J. Nuxoll
	 	Title:	Vice President

 

    	 	S - 3Exhibit

EXECUTION COPY
CONVERTIBLE NOTE AGREEMENT

This Convertible Note Agreement (this “Agreement”) is made as of August 16, 2019, by and between Sequans Communications S.A., a société anonyme incorporated in the French Republic (the “Company”), and the purchaser listed on Exhibit A attached to this Agreement (the “Purchaser”).
RECITALS
WHEREAS, Purchaser desires to subscribe from the Company and the Company desires to issue a convertible promissory note in substantially the form attached to this Agreement as Exhibit B, in the original principal amount set forth on Exhibit A hereto (each a “Note”), which shall be convertible on the terms stated therein into the Company’s ADSs, indirectly through the conversion into Ordinary Shares (as defined below) (the ADSs issued or issuable upon conversion of the Note into the Underlying Shares and delivery of those Underlying Shares to the Depositary are referred to herein as the “Conversion Shares” and, together with the Note, the “Securities”).  As used herein, “Ordinary Shares” means the ordinary shares, nominal value €0.02 per share, of the Company, “ADS” means an American Depositary Share representing one such Ordinary Share, “ADR” means an American Depositary Receipt evidencing the ADSs and “Underlying Shares” means the Ordinary Shares underlying the ADSs.
NOW THEREFORE, on and subject to the terms hereof, the parties hereto agree as follows:
ARTICLE I

DEFINED TERMS

The terms defined in this Article I (except as herein otherwise expressly provided or unless the context otherwise requires) for all purposes of this Agreement shall have the respective meanings specified in this Article I.  The terms defined in this Article I include the plural as well as the singular.
“Accreted Principal Amount” shall have the meaning specified in Section 2.2.  For the avoidance of doubt, “Accreted Principal Amount” shall include any accrued and unpaid interest at the time of any determination of such “Accreted Principal Amount.”
“ADR” shall have the meaning specified in the recitals.
“ADS” shall have the meaning specified in the recitals.
“Affiliates” shall have the meaning specified in Section 3.4.
“Agreement” shall have the meaning specified in the preamble.
“Beneficial Ownership Limitation” shall have the meaning specified in Section 5.2(a).
“Closing” shall have the meaning specified in Section 2.3.
“Closing Date” shall have the meaning specified in Section 2.3.

“Company” shall have the meaning specified in the preamble.
“Company Reports” shall have the meaning specified in Section 4.1.
 “Concert Parties” shall have the meaning specified in Section 5.2(a).
“Conversion Shares” shall have the meaning specified in the recitals.
“Deposit Agreement” shall have the meaning specified in Section 5.1.
“Depositary” shall have the meaning specified in Section 5.1.
“E&Y” shall have the meaning specified in Section 4.9.
“Enforceability Exceptions” shall have the meaning specified in Section 3.2.
“Environmental Laws” shall have the meaning specified in Section 4.20.
“Evaluation Date” shall have the meaning specified in Section 4.24.
“Exchange Act” shall have the meaning specified in Section 3.4.
“HALDE” shall have the meaning specified in Section 4.18.
“IFRS” shall have the meaning specified in Section 4.10.
“Intellectual Property Rights” shall have the meaning specified in Section 4.21.
“Interest Payment Date” shall have the meaning specified in Section 2.2.
“Issue Price” shall have the meaning specified in Section 2.1.
“Knowledge” shall have the meaning specified in Section 4.12.
“Material Adverse Effect” shall have the meaning specified in Section 4.2.
“Material Contract” shall have the meaning specified in Section 4.14.
“Material Permits” shall have the meaning specified in Section 4.13.
“Note” shall have the meaning specified in the recitals.
“OFAC” shall have the meaning specified in Section 4.23.
“Ordinary Shares” shall have the meaning specified in the recitals.
“Person” shall have the meaning specified in Section 4.23.
“PIK Amount” shall have the meaning specified in Section 2.2.
“Purchase” shall have the meaning specified in Section 2.3.
“Purchaser” shall have the meaning specified in the preamble.

“Regulation D” shall have the meaning specified in Section 3.3.
“Sanctions” shall have the meaning specified in Section 4.23.
“SEC” shall have the meaning specified in Section 3.8.
“Securities” shall have the meaning specified in the recitals.
“Securities Act” shall have the meaning specified in Section 3.3.
“Short Sales” shall have the meaning specified in Section 3.7.
“Subsidiary” shall have the meaning specified in Section 4.2.
“Underlying Shares” shall have the meaning specified in the recitals.
“Voting Power” shall have the meaning specified in Section 3.4.
ARTICLE II

ISSUANCE OF NOTE

Section 2.1    Issuance of Note.  Subject to the terms set forth in this Agreement, at the Closing (as defined herein), the Company agrees to issue the Notes, and Purchaser agrees to subscribe a Note with the principal amount set forth opposite Purchaser’s name on Exhibit A at the issue price of 100% of the principal amount of such Note (the “Issue Price”).

Section 2.2    Interest Applicable.  Interest shall accrue on the Accreted Principal Amount of the Note (in each case computed on the basis of a 365/366-day year and the actual number of days elapsed in any year) at an annual rate equal to 7.0% per annum or (if less) at the highest rate then permitted under applicable law, which shall be payable by adding such interest to the Accreted Principal Amount of the Note on each Interest Payment Date (as defined below), and on the final maturity of the Note (the “PIK Amount”).  At any time, the outstanding principal amount of the Note, including all PIK Amounts added thereto through such time, is referred to herein as the “Accreted Principal Amount.”  The Company shall pay to the holder of the Note all accrued interest (including interest on the Accreted Principal Amount) on each anniversary date of the Note (each, an “Interest Payment Date”), including the final maturity date of the Note.  Interest shall accrue on any principal payment due under the Note (including as to accrued interest added to the principal) until such time as payment therefor is actually delivered to the holder of the Note.

Section 2.3    Closing.  Subject to Sections 6.1 and 6.2, the closing (the “Closing”) of the issuance and subscription of the Notes (the “Purchase”) shall occur on a date (the “Closing Date”) no later than three business days after the date of this Agreement.  At the Closing, (i) the Purchaser shall deliver or cause to be delivered to the Company the Issue Price, and (ii) the Company shall issue to the Purchaser the Note.

Section 2.4    Maturity, Payment and Conversion.  The provisions pertaining to maturity, payment, conversion and acceleration of the Note are set forth in the form of Note attached hereto as Exhibit B. 

Section 2.5    Subordination.  With the exception of (i) up to $25 million of secured indebtedness owed to Natixis under the factoring agreement between the Company and Natixis and (ii) up to €12 million of secured indebtedness owed to Harbert European Specialty Lending Company II S.A.R.L. (“Harbert”) under the loan agreement between the Company and Harbert, the Note and the interest accrued under the 

Note are the senior obligations of the Company and will rank pari passu in right of payment with all other senior and unsubordinated obligations of the Company.

Section 2.6    No Preferential Right to Subscription.  Pursuant to article L.225-132 of the French commercial code, the decision to issue the Note automatically waives the right for any existing shareholder of the Company to a preferential right (droit préférentiel de souscription) for the subscription of the Underlying Shares to be issued by the Company upon conversion of the Note.

    
ARTICLE III

REPRESENTATIONS AND
WARRANTIES OF THE PURCHASER

Purchaser, severally and not jointly, hereby makes the following representations and warranties, each of which is and shall be true and correct on the date hereof and at the Closing, to the Company, and all such representations and warranties shall survive the Closing:
Section 3.1    Power and Authorization.  Purchaser is duly organized, validly existing and in good standing, and has the power, authority and capacity to execute this Agreement, to perform its obligations hereunder, and to consummate the Purchase.

Section 3.2    Valid and Enforceable Agreement; No Violations.  This Agreement has been duly executed and delivered by Purchaser and constitutes a legal, valid and binding obligation of Purchaser, enforceable against Purchaser in accordance with its terms, except that such enforcement may be subject to (a) bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other similar laws affecting or relating to enforcement of creditors’ rights generally and (b) general principles of equity, whether such enforceability is considered in a proceeding at law or in equity (such qualifications in clauses (a) and (b) being the “Enforceability Exceptions”).  This Agreement and consummation of the Purchase will not violate, conflict with or result in a breach of or default under (i) Purchaser’s organizational documents, (ii) any agreement or instrument to which Purchaser is a party or by which Purchaser or any of its assets are bound or (iii) any laws, regulations or governmental or judicial decrees, injunctions or orders applicable to Purchaser.

Section 3.3    Accredited Investor/Qualified Institutional Buyer.  Purchaser is an “accredited investor” within the meaning of Rule 501(a) of Regulation D (“Regulation D”) promulgated under the Securities Act of 1933, as amended (the “Securities Act”).  The information Purchaser has provided in writing to the Company as set forth on Purchaser’s signature page hereto is true, correct and complete, as of the date hereof and as of the Closing Date, in all material respects.

Section 3.4    5% Stockholder Status.  Nokomis Capital Master Fund, LP (“Nokomis”) and its affiliates (as that term is defined in Rule 501(b) of Regulation D under the Securities Act, “Affiliates”) collectively beneficially own and will beneficially own after the Closing Date (i) 5% or more of the Company’s outstanding Ordinary Shares (including Ordinary Shares represented by ADSs) and (ii) 5% or more of the voting power to elect members of the Company’s board of directors (“Voting Power”), and Nokomis acknowledges and agrees that it will comply in all material respects with all applicable provisions of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as a result of such holdings.  Nokomis is not a subsidiary, affiliate or, to its knowledge, otherwise closely-related to any officer of the Company or any other beneficial owner of 5% or more of the outstanding Ordinary Shares (including Ordinary Shares represented by ADSs) or Voting Power.

Section 3.5    Restricted Note and Stock.  Purchaser (a) acknowledges that (i) the issuance of the Note pursuant to this Agreement and the issuance of any Conversion Shares have not been registered, nor does the Company have a plan or intent to register such issuance of the Note or Conversion Shares, under the Securities Act or any state securities laws, (ii) the Note and, subject to the conversion of the Note into Underlying Shares to be delivered to the Depositary for issuance of the Conversion Shares, the Conversion Shares are being offered and sold in reliance upon exemptions provided in the Securities Act and state securities laws for transactions not involving any public offering and, therefore, cannot be sold, transferred, offered for sale, pledged, hypothecated or otherwise disposed of unless they are subsequently registered and qualified under the Securities Act and applicable state securities laws or unless an exemption from such registration and qualification is available and (iii) the Note and Conversion Shares are “restricted securities” as that term is defined in Rule 144 promulgated under the Securities Act and (b) is purchasing the Note and Conversion Shares for investment purposes only for the account of Purchaser and not with any view toward a distribution thereof or with any intention of selling, distributing or otherwise disposing of the Note or Conversion Shares in a manner that would violate the registration requirements of the Securities Act.  Purchaser is able to bear the economic risk of holding the Note and Conversion Shares for an indefinite period and has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risk of its investment in the Note and Conversion Shares.

Section 3.6    Legends.  Purchaser understands and agrees that any certificates, book-entry or ADRs representing the Note and Conversion Shares shall bear the restrictive legend set forth in the form of Note attached hereto as Exhibit A or in Section 7.3 below, respectively.

Section 3.7    No Illegal Transactions.  Purchaser has not, directly or indirectly, and no person acting on behalf of or pursuant to any understanding with it has, engaged in any transactions in the securities of the Company (including, without limitation, any Short Sales (as defined below) involving any of the Company’s securities) since the time that Purchaser was first contacted by the Company or any other person regarding the transactions contemplated by this Agreement or an investment in the Company.  Purchaser covenants that neither it nor any person acting on its behalf or pursuant to any understanding with it will engage, directly or indirectly, in any transactions in the securities of the Company (including Short Sales) prior to the time the transactions contemplated by this Agreement are publicly disclosed.  “Short Sales” include, without limitation, all “short sales” as defined in Rule 200 of Regulation SHO promulgated under the Exchange Act, and all types of direct and indirect stock pledges, forward sale contracts, options, puts, calls, short sales, swaps, derivatives and similar arrangements (including on a total return basis), and sales and other transactions through non-U.S. broker-dealers or foreign regulated brokers.

Section 3.8    Adequate Information; No Reliance.  Purchaser acknowledges and agrees that (a) Purchaser has been furnished with all materials it considers relevant to making an investment decision to enter into the Purchase and has had the opportunity to review the Company’s filings and submissions with the Securities and Exchange Commission (the “SEC”), including, without limitation, all information filed or furnished pursuant to the Exchange Act and all information incorporated into such filings and submissions, (b) Purchaser has sufficient knowledge and expertise to make an investment decision with respect to the transactions contemplated hereby, (c) Purchaser has had a full opportunity to speak directly with directors, officers and Affiliates of the Company and to ask questions of the Company and such directors, officers and Affiliates of the Company concerning the Company, its business, operations, financial performance, financial condition and prospects, and the terms and conditions of the Purchase, and to obtain such additional information as it deems necessary to verify the accuracy of the information furnished to it and has asked such questions, received such answers and obtained such information as it deems necessary, (d) Purchaser has had the opportunity to consult with its accounting, tax, financial and legal advisors to be able to evaluate the risks involved in the Purchase and to make an informed investment decision with respect to the Purchase 

and (e) Purchaser is not relying, and has not relied, upon any statement, advice (whether accounting, tax, financial, legal or other), representation or warranty made by the Company or any of its Affiliates or representatives, except for (i) the publicly available filings and submissions made by the Company with the SEC under the Exchange Act and (ii) the representations and warranties made by the Company in this Agreement.

Section 3.9    Purchaser’s Reporting Requirement.  The Company has made no representations to Purchaser regarding Purchaser’s reporting requirements with the SEC related to Purchaser’s present or future ownership in the Company, and Purchaser acknowledges and agrees that it is the responsibility of Purchaser to ensure that Purchaser complies with any disclosure and reporting requirements of the SEC applicable to Purchaser as a result of the Purchase and any subsequent conversion thereof.

Section 3.10    No Public Market.  Purchaser understands that no public market exists for the Note, and that there is no assurance that a public market will ever develop for the Note.

Section 3.11    No General Solicitation or Advertising.  The offer to enter into the Purchase was directly communicated to Purchaser, and Purchaser was able to ask questions and receive answers concerning the terms of this transaction.  At no time was Purchaser presented with or solicited by any leaflet, newspaper or magazine article, radio or television advertisement or any other form of general advertising or solicited or invited to attend a promotional meeting otherwise than in connection and concurrently with such communicated offer.

Section 3.12    Legal Opinions.  Purchaser acknowledges and understands that a legal opinion is being delivered by counsel to the Company in reliance on, and assuming the accuracy of, the foregoing representations and warranties of Purchaser.

ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF THE COMPANY

The Company hereby makes the following representations and warranties, each of which is and shall be true and correct on the date hereof and at the Closing, to Purchaser, and all such representations and warranties shall survive the Closing.
Section 4.1    Exchange Act Filings.  The Company has filed or furnished, as applicable, on a timely basis all forms, statements, certifications, reports and documents required to be filed or furnished by it with the SEC pursuant to the Exchange Act or the Securities Act since December 31, 2018 (the “Company Reports”).  The Company Reports, when they became effective or were filed with or furnished to the SEC, as the case may be, conformed in all material respects to the requirements of the Securities Act or the Exchange Act, as applicable, and the rules and regulations thereunder and none of such documents contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; and any further documents so filed or furnished after the date hereof and on or prior to the Closing, when such documents become effective or are filed with the SEC, as the case may be, will conform in all material respects to the requirements of the Securities Act or the Exchange Act, as applicable, and the rules and regulations of the SEC thereunder and will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.  On or before the first business day following the date of this Agreement, the Company shall issue a publicly available press release or file with the SEC a Report on Form 6-K disclosing the material terms of the transactions contemplated hereby.

Section 4.2    Due Incorporation.  Each of the Company and each of its Subsidiaries has been duly organized and is validly existing as a corporation or other legal entity in good standing (or the foreign equivalent thereof) under the laws of its jurisdiction of incorporation or organization.  Each of the Company and its Subsidiaries is duly qualified to do business and is in good standing as a foreign corporation or other legal entity in each jurisdiction in which its ownership or lease of its properties or the conduct of its business requires such qualification and has all power and authority (corporate or other) necessary to own or hold its properties and to conduct the businesses in which each is engaged, except where the failure to so qualify or have such power or authority (i) would not have and would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on the condition (financial or otherwise), results of operations, assets or business of the Company and its Subsidiaries, taken as a whole, or (ii) impair in any material respect the ability of the Company to perform its obligations under this Agreement or the Notes or to consummate any transactions contemplated hereby  or thereby (any such effect as described in clauses (i) or (ii), a “Material Adverse Effect”).  As used in this Agreement, “Subsidiary” shall have the meaning set forth in Rule 1-02 of Regulation S-X of the SEC.

Section 4.3    Subsidiaries.  The membership interests or capital stock, as applicable, of each Subsidiary have been duly authorized and validly issued, are fully paid and nonassessable and, except to the extent set forth in the Company Reports, are owned by the Company directly, free and clear of any claim, lien, encumbrance, security interest, restriction upon voting or transfer or any other claim of any third party.

Section 4.4    Due Authorization.  The Company has the full right, power and authority to enter into this Agreement and to perform and discharge its obligations hereunder; and this Agreement and the performance by the Company of its obligations hereunder have been duly authorized, and this Agreement has been duly executed and delivered by the Company and constitutes a valid and binding obligation of the Company enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and to general principles of equity.

Section 4.5    The Note and the Conversion Shares.  Each Note has been duly authorized and, when issued and delivered upon sale, will have been duly executed, authenticated, issued and delivered and will constitute a valid and legally binding obligation of the Company.  The Ordinary Shares to be issued by the Company upon conversion in whole or in part of each Note have been duly authorized for issuance.  Upon subscription by each holder of a Note for the number of Ordinary Shares issuable in connection with the conversion in whole or in part of such Note, such Ordinary Shares shall constitute Underlying Shares to be deposited with the Depositary for the issuance of Conversion Shares in the form of ADRs.  When issued in accordance with the terms of such Note, such Conversion Shares evidenced by such ADRs, and the Underlying Shares, will be validly issued, fully paid and nonassessable and free of any preemptive or similar rights, and each respective Purchaser will be entitled to the rights specified respectively therein and in the Deposit Agreement (as defined below); no preemptive right, resale right, right of first refusal or similar rights exist with respect to any of the Ordinary Shares in the form of the Conversion Shares and the issuance thereof will be free of any restriction upon the voting or transfer thereof pursuant to the laws of the French Republic or the Company’s statuts or any agreement or other instrument to which the Company is a party.  Each Note and all Conversion Shares will be issued in compliance with all U.S. federal and state securities laws and the securities laws of any other applicable jurisdiction.

Section 4.6    Capitalization.  As of August 1, 2019, the share capital of the Company consists of 95,079,864 issued Ordinary Shares, fully paid, and with a par value of €0.02 each, and total authorized capital of 240,397,238 Ordinary Shares.  All of the outstanding shares of capital stock of the Company have been duly authorized, validly issued and are fully paid and nonassessable and were issued in compliance with all 

applicable securities laws and were not issued in violation of any preemptive right, resale right, right of first refusal or similar right.  Other than 4,940,000 Ordinary Shares reserved for future issuance under the Company’s equity plans, 8,305,363 Ordinary Shares issuable upon the exercise of outstanding stock options, founders warrants and warrants granted pursuant to the Company’s equity plans, and a maximum of 32,071,721 shares reserved for issuance under outstanding convertible notes and warrants, the Company has no shares of capital stock reserved for issuance, with the exception of the shares authorized for issuance in connection with the Notes to be issued pursuant hereto.  Except as set forth above or pursuant to this Agreement, the Company does not have outstanding any options to purchase, or any rights or warrants to subscribe for, any securities or obligations convertible into, or any contracts or commitments to issue or sell, any shares of capital stock, or any such warrants, convertible securities or obligations.

Section 4.7    No Default, Termination or Lien.  The execution, delivery and performance of this Agreement by the Company, the issuance and delivery of each Note by the Company, the issuance and delivery of all Conversion Shares in accordance with the terms of each Note, the consummation of the transactions contemplated hereby and thereby, and compliance by the Company with the terms of this Agreement will not (with or without notice or lapse of time or both) conflict with or result in a breach or violation of any of the terms or provisions of, constitute a default under, give rise to any right of termination or other right or the cancellation or acceleration of any right or obligation or loss of a benefit under, or give rise to the creation or imposition of any lien, encumbrance, security interest, claim or charge upon any property or assets of the Company or any Subsidiary pursuant to any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound or to which any of the property or assets of the Company or any of its Subsidiaries is subject, nor will such actions result in any violation of the provisions of the organizational documents of the Company or any of its Subsidiaries or any law, statute, rule, regulation, judgment, order or decree of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Company or any of its Subsidiaries or any of their properties or assets.

Section 4.8    No Consents.  No consent, approval, authorization or order of, or qualification with, any governmental body or agency is required for the performance by the Company of its obligations under this Agreement, except such as may be required by the securities or blue sky laws of the various states and the New York Stock Exchange in connection with the offer and issuance of the Notes.

Section 4.9    Independent Accountants.  Ernst & Young Audit (“E&Y”), who has certified certain financial statements and related schedules included or incorporated by reference in the Company Reports, is an independent registered public accounting firm as required by the Securities Act and the Exchange Act and the rules and regulations thereunder and the Public Company Accounting Oversight Board (United States).  Except as pre-approved in accordance with the requirements set forth in Section 10A of the Exchange Act, E&Y has not been engaged by the Company to perform any “prohibited activities” (as defined in Section 10A of the Exchange Act).

Section 4.10    Financial Statements.  The financial statements, together with the related notes and schedules, included in the Company Reports present fairly in all material respects the financial condition of the Company and its consolidated Subsidiaries as of the respective dates thereof and the results of operations and cash flows of the Company and its consolidated Subsidiaries for the respective periods covered thereby, all in conformity with International Financial Reporting Standards (“IFRS”) applied on a consistent basis throughout the entire period involved, except as otherwise disclosed in the Company Reports.  Such financial statements, together with the related notes and schedules, comply in all material respects with the Securities Act, the Exchange Act and the rules and regulations thereunder.  No other financial statements or supporting 

schedules or exhibits are required by the Exchange Act or the rules and regulations thereunder to be filed with the SEC.

Section 4.11    No Material Adverse Change.  There has not occurred any material adverse change, or any development involving a prospective material adverse change, in the condition, financial or otherwise, or in the earnings, business or operations of the Company and its Subsidiaries, taken as a whole, from that set forth or contemplated in the Company Reports filed prior to the date hereof.

Section 4.12    Legal Proceedings.  There are no legal or governmental proceedings, actions, suits or claims pending or, to the Company’s Knowledge, threatened to which the Company or any of its Subsidiaries is a party or to which any of the properties or assets of the Company or any of its Subsidiaries is subject (i) other than proceedings accurately described in all material respects in the Company Reports and proceedings that would not have and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect or (ii) that are required to be described in the Company Reports and are not so described; and there are no statutes, regulations, contracts or other documents to which the Company or any of its Subsidiaries is subject or by which the Company or any of its Subsidiaries is bound that are required to be described in the Company Reports or to be filed as exhibits to the Company Reports that are not described therein or filed as required.  Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any legal or governmental proceedings, actions, suits or claims of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty.  For purposes of this Agreement, “Knowledge” means the actual knowledge (after due inquiry) of the executive officers (as defined in Exchange Act Rule 3b-7) of the Company or its Subsidiaries, as applicable.

Section 4.13    Regulatory Permits.  Each of the Company and its Subsidiaries possesses or has applied for all certificates, authorizations, licenses, franchises, permits, orders and approvals issued or granted by the appropriate governmental or regulatory authorities, agencies, courts, commissions or other entities, whether federal, state, local or foreign, or applicable self-regulatory organizations necessary to conduct its business as currently conducted, except (i) where the failure to possess such certificates, authorizations, licenses, franchises, permits, orders and approval, individually or in the aggregate, has not and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect (“Material Permits”) and (ii) as accurately described in all material respects in the Company Reports, and neither the Company nor any of its Subsidiaries has received any written notice of proceedings relating to the revocation or material adverse modification of any such Material Permits (except as accurately described in all material respects in the Company Reports), and to the Company’s Knowledge, there are no facts or circumstances that would give rise to the revocation, termination or material adverse modifications of any Material Permits.

Section 4.14    Material Contracts.  Except for the Material Contracts, the Company and its Subsidiaries are not party to any agreements, contracts or commitments that are material to the business, financial condition, assets or operations of the Company and its Subsidiaries or that would be required to be filed pursuant to Item 19 and the Instructions as to Exhibits of Form 20-F.  Neither the Company nor any of its Subsidiaries is in material default under, or in material violation of, nor has received written notice of termination or default under any Material Contract.  For purposes of this Agreement, “Material Contract” means any contract of the Company that was filed as an exhibit to the Company Reports pursuant to Item 19 and the Instructions as to Exhibits of Form 20-F.

Section 4.15    Investment Company Act.  Neither the Company nor any of its Subsidiaries is or, after giving effect to the Purchase and the application of the proceeds thereof, will become an “investment company” within the meaning of the Investment Company Act of 1940, as amended, and the rules and regulations of the SEC thereunder.

Section 4.16    No Price Stabilization.  Neither the Company, its Subsidiaries nor any of the Company’s or its Subsidiaries’ officers, directors or Affiliates has taken or will take, directly or indirectly, any action designed or intended to stabilize or manipulate the price of any security of the Company, or which caused or resulted in, or which would in the future reasonably be expected to cause or result in, stabilization or manipulation of the price of any security of the Company.

Section 4.17    Title to Property.  The Company and its Subsidiaries have good and marketable title to all real and personal property owned by them which is material to the business of the Company and its Subsidiaries, taken as a whole, in each case free and clear of all liens, encumbrances and defects of title except such as are described in the Company Reports or such as do not materially affect the value of such property and do not interfere with the use made and proposed to be made of such property by the Company and its Subsidiaries; and any real property and buildings held under lease by the Company and its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company and its Subsidiaries, in each case except as described in the Company Reports.

Section 4.18    No Labor Disputes.  Neither the Company nor any of the Subsidiaries is engaged in any unfair labor practice; except for matters which would not, individually or in the aggregate, have a Material Adverse Effect, (i) there is (A) no discrimination complaint or unfair labor practice complaint pending or, to the Knowledge of the Company or the Subsidiaries, threatened against the Company or any of the Subsidiaries before the Haute Autorité de Lutte contre les Discriminations et pour l’Égalité (“HALDE”) or the National Labor Relations Board, respectively, and no grievance or arbitration proceeding arising out of or under collective bargaining agreements is pending or, to the Knowledge of the Company or the Subsidiaries, threatened, (B) no strike, labor dispute, slowdown or stoppage pending or, to the Knowledge of the Company or the Subsidiaries, threatened against the Company or any of the Subsidiaries and (C) no union representation dispute currently existing concerning the employees of the Company or any of the Subsidiaries, (ii) to the Knowledge of the Company or the Subsidiaries, no union organizing activities are currently taking place concerning the employees of the Company or any of the Subsidiaries and (iii) there has been no violation of any federal, state, local or foreign law or collective bargaining agreement relating to discrimination in the hiring, promotion or pay of employees, any applicable wage or hour laws or retirement benefits, or any provision of the Employee Retirement Income Security Act of 1974, as amended, or the rules and regulations promulgated thereunder concerning the employees of the Company or any of the Subsidiaries. 
 
Section 4.19    Taxes.  The Company (i) has timely filed all necessary federal, state, local and foreign income and franchise tax returns (or timely filed applicable extensions therefore) that have been required to be filed and (ii) is not in default in the payment of any taxes which were payable pursuant to said returns or any assessments with respect thereto, other than any which the Company is contesting in good faith and for which adequate reserves have been provided and reflected in the financial statements included in the Company Reports.  The Company does not have any tax deficiency that has been or, to the Company’s Knowledge, is reasonably likely to be asserted or threatened against it, provided that the United Kingdom tax authority has recently commenced a tax audit of the Company’s United Kingdom subsidiary.

Section 4.20    Compliance with Environmental Laws.  Except as disclosed in the Company Reports, neither the Company nor any of its Subsidiaries is in violation of any statute, rule, regulation, decision or order of any governmental agency or body or any court, relating to the use, disposal or release of hazardous or toxic substances or relating to the protection or restoration of the environment or human exposure to hazardous or toxic substances (collectively, “Environmental Laws”), or, to the Company’s Knowledge, operates any real property contaminated with any substance that is subject to any Environmental Laws, is liable for any off-site disposal or contamination pursuant to any Environmental Laws or is subject to any 

claim relating to any Environmental Laws, which violation, contamination, liability or claim would or would reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect; and the Company is not aware of any pending investigation which might lead to such a claim.

Section 4.21    Intellectual Property Rights.  The Company and its Subsidiaries own or possess, or have the right to use, adequate trademarks, trade names and other rights to inventions, know-how, patents, copyrights, confidential information and other intellectual property (collectively, “Intellectual Property Rights”) necessary to conduct the business now operated by them, or presently employed by them, and have not received any notice of infringement of or conflict with asserted rights of others with respect to any Intellectual Property Rights, except such as would not and would not reasonably be expected to, individually or in the aggregate, have a Material Adverse Effect.

Section 4.22    Foreign Corrupt Practices Act.  Neither the Company nor any of its Subsidiaries, nor to the Company’s Knowledge, any director, officer, employee or other person associated with or acting on behalf of the Company or any of its Subsidiaries, has (i) used any Company funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity, (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from Company funds, (iii) caused the Company or any of its Subsidiaries to be in violation of any provision of the United States Foreign Corrupt Practices Act of 1977, as amended, or (iv) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment from Company funds.

Section 4.23    OFAC and Similar Laws.  None of the Company, any of its Subsidiaries or, to the Company’s Knowledge, any director, officer, agent, employee, affiliate or representative of the Company or any of its Subsidiaries is an individual or entity (“Person”) currently the subject or target of any sanctions administered or enforced by the United States Government, including, without limitation, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”), the United Nations Security Council, the European Union, Her Majesty’s Treasury or other relevant sanctions authority (collectively, “Sanctions”), nor is the Company or any of its Subsidiaries located, organized or resident in a country or territory that is the subject of Sanctions; and the Company will not directly or indirectly use the proceeds of the issuance of any Note, or lend, contribute or otherwise make available such proceeds to any Subsidiaries, joint venture partners or other Person, to knowingly fund any activities of or business with any Person, or in any country or territory, that, at the time of such funding, is the subject of Sanctions or in any other manner that will result in a violation by any Person (including any Person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions.

Section 4.24    Disclosure Controls and Procedures.  Except as disclosed in the Company Reports, the Company has established and maintains disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) that are effective in all material respects to ensure that material information relating to the Company, including any consolidated Subsidiaries, is made known to its chief executive officer and chief financial officer by others within those entities.  The Company’s certifying officers have evaluated the effectiveness of the Company’s controls and procedures as of the end of the period covered by the most recently filed annual report under the Exchange Act (such date, the “Evaluation Date”).  The Company presented in its most recently filed annual report under the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date.  Since the Evaluation Date and except as disclosed in the Company Reports, there have been no material changes in the Company’s internal controls (as such term is defined in the rules of the SEC under the Exchange Act) or, to the Company’s Knowledge, in other factors that could affect the Company’s internal controls.

Section 4.25    Accounting Controls.  The Company and its Subsidiaries maintain a system of internal accounting and other controls sufficient to provide reasonable assurances that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with IFRS and to maintain accountability for assets, (iii) access to assets is permitted only in accordance with management’s general or specific authorization and (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences.  Except as described in the Company Reports, since the end of the Company’s most recent audited fiscal year, there has been (A) no material weakness in the Company’s internal control over financial reporting (whether or not remediated) and (B) no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Section 4.26    Absence of Material Changes.  Subsequent to the respective dates as of which information is given in the Company Reports, and except as may be otherwise disclosed in such Company Reports, there has not been (i) any Material Adverse Effect, (ii) any transaction which is material to the Company, (iii) any obligation, direct or contingent (including any off-balance sheet obligations), incurred by the Company, which is material to the Company, (iv) any dividend or distribution of any kind declared, paid or made on the capital stock of the Company, (v) any change in the capital stock (other than a change in the number of outstanding Ordinary Shares or ADSs due to grants of stock under the Company’s stock incentive plans existing on the date hereof or the issuance of shares upon the exercise of outstanding options or warrants) or (vi) any issuance of options, warrants, convertible securities or other rights to purchase the capital stock (other than grants of stock options under the Company’s stock option plans existing on the date hereof) of the Company.

Section 4.27    Brokers Fees.  Neither the Company nor any of its Subsidiaries is a party to any contract, agreement or understanding with any person that would give rise to a valid claim against the Company for a brokerage commission, finder’s fee or like payment in connection with the offering and issuance of any Note or any transaction contemplated by this Agreement.

Section 4.28    Listing and Maintenance Requirements.  The Company is subject to and in compliance in all material respects with the reporting requirements of Section 13 or Section 15(d) of the Exchange Act, as applicable.  The ADSs are registered pursuant to Section 12(b) of the Exchange Act and are listed on the New York Stock Exchange, and the Company has taken no action designed to, or reasonably likely to have the effect of, terminating the registration of the ADSs under the Exchange Act or delisting the ADSs from the New York Stock Exchange, nor has the Company received any notification that either the SEC or the New York Stock Exchange is contemplating terminating such registration or listing.  The Conversion Shares will be duly authorized for listing on the New York Stock Exchange immediately upon conversion of each Note in accordance with the terms of each Note and the issuance of the ADSs by the Depositary following the deposit of the Underlying Shares.

Section 4.29    Sarbanes-Oxley Act.  The Company is in compliance in all material respects with all applicable provisions of the Sarbanes-Oxley Act of 2002 and all applicable rules and regulations promulgated thereunder or implementing provisions thereof that are then in effect.

Section 4.30    New York Stock Exchange Approval Rules.  No further approval of the stockholders of the Company under the rules and regulations of the New York Stock Exchange is required for the Company to issue and deliver the Notes to Purchaser or the Conversion Shares upon conversion of each Note.

Section 4.31    No General Solicitation.  Neither the Company nor any person acting on its or their behalf has engaged in any general solicitation or general advertising in connection with the offering or issuance of any Note, including but not limited to the methods described in Rule 502(c) under the Securities Act.

Section 4.32    Integration.  No offers and sales of securities of the same or similar class as the Notes have been made by the Company or on its behalf during the six-month period ending with the date of this Agreement and no such offers or sales are currently being made or contemplated (in each case, whether pursuant to outstanding warrants, options, convertible or exchangeable securities, acquisition agreements or otherwise).  Neither the Company nor any other person acting on its behalf will, directly or indirectly, offer or sell any securities of the same or similar class as the Notes, or take any other action, so as to cause the offer and issuance of the Notes to fail to be entitled to the exemption afforded by Regulation D under the Securities Act.

ARTICLE V
OTHER AGREEMENTS

Section 5.1    Depositary.  As more fully described in the Notes, upon conversion of all or any portion of a Note held by Purchaser in accordance with the terms thereof, the Company will cause the Depositary to deliver the relevant number of Conversion Shares to Purchaser against deposit of the Underlying Shares, pursuant to the Amended and Restated Deposit Agreement dated as of May 14, 2018 (the “Deposit Agreement”) among the Company, The Bank of New York Mellon, as depositary (the “Depositary”), and the owners and holders from time to time of the ADSs issued thereunder, and Purchaser shall cooperate with the Company and the Depositary in connection therewith.

Section 5.2    Beneficial Ownership Limitation.

(a)No Purchaser shall request that a Note held by it be converted, and the Company shall not effect the conversion of a Note to the extent that, after giving effect to such issuance after conversion, Purchaser (together with Purchaser’s Affiliates and any other person or entity acting as a group together with Purchaser or any of Purchaser’s Affiliates (collectively, the “Concert Parties”)), would beneficially own ADSs or Ordinary Shares in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of ADSs or Ordinary Shares beneficially owned by a Purchaser and its Concert Parties shall include the number of Ordinary Shares issuable upon conversion of the portion of the Note with respect to which such determination is being made, but shall exclude the number of Ordinary Shares which would be issuable upon (i) conversion of the remaining portion of the Note beneficially owned by Purchaser and (ii) conversion or exercise of the unexercised or unconverted portion of any loan to or securities of the Company (or any successor thereto) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by Purchaser or any of its Concert Parties.  Except as set forth in the preceding sentence, for purposes of this Section 5.2, beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by Purchaser that the Company is not representing to Purchaser that such calculation is in compliance with Section 13(d) of the Exchange Act and Purchaser is solely responsible for any schedules required to be filed in accordance therewith.  To the extent that the limitation contained in this Section 5.2 applies, the determination of whether and the extent to which a Note may be converted (in relation to other loans or securities owned by a Purchaser together with any Affiliates) shall be made in good faith by the Purchaser holding such Note in consultation with its own counsel.  In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.  For purposes of this Section 5.2, in determining 

the number of outstanding Ordinary Shares (including Ordinary Shares represented by ADSs), Purchaser may rely on the number of outstanding Ordinary Shares (including Ordinary Shares represented by ADSs) as reflected in (x) the Company’s (or its successor’s) most recent periodic or annual report, as the case may be, filed with the SEC, (y) a more recent public announcement by the Company (or its successor) or (z) any other notice by the Company or the Depositary (or its successor or successor’s depositary) setting forth the number of Ordinary Shares (including Ordinary Shares represented by ADSs) outstanding.  Upon the written or oral request of any Purchaser, the Company shall within two business days confirm orally and in writing to Purchaser the number of Ordinary Shares (including Ordinary Shares represented by ADSs) then outstanding.  In any case, the number of Ordinary Shares (including Ordinary Shares represented by ADSs) outstanding shall be determined after giving effect to the conversion or exercise of loans or securities of the Company, including the Notes, by the applicable Purchaser or its Concert Parties since the date as of which such number of outstanding Ordinary Shares (including Ordinary Shares represented by ADSs) was reported.  The “Beneficial Ownership Limitation” shall be 9.99% of the number of Ordinary Shares (including Ordinary Shares represented by ADSs) outstanding immediately after giving effect to the issuance of the Conversion Shares issuable upon conversion of the applicable Note.  Purchaser, upon not less than 61 days’ prior notice to the Company, may increase or decrease (including, for the avoidance of doubt, to 0%) the percentage constituting the Beneficial Ownership Limitation, and the provisions of this Section 5.2 shall continue to apply to such increased or decreased Beneficial Ownership Limitation.  Any such increase or decrease will not be effective until the 61st day after such notice is delivered to the Company.  The provisions of this Section 5.2 shall be construed and implemented in a manner otherwise than in strict conformity with the terms hereof in order to correct such terms (or any portion thereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation.  The limitations contained in this Section 5.2 shall apply to any successor to Purchaser.

(b)Notwithstanding the foregoing, the limitations contained in this Section 5.2 shall not restrict or limit any conversion or prepayment of the Notes in connection with an Organic Change as contemplated by and defined in the Note.

Section 5.3    Supplemental Listing Application.  Within two business days following the Closing Date, the Company shall file with the New York Stock Exchange a supplemental listing application reflecting the transactions contemplated hereby.

Section 5.4    Listing of Shares; Certificates.  The Company covenants that all Conversion Shares will, at all times that any Note is convertible, be duly approved for listing subject to official notice of issuance on the New York Stock Exchange.  The Company covenants that the certificates, if any, representing the ADRs to be issued to evidence any Conversion Shares issued upon conversion of Notes will comply with applicable law.

ARTICLE VI
CONDITIONS TO CLOSING

Section 6.1    Purchaser’s Conditions Precedent.  The obligation of Purchaser to complete the Purchase is subject to the satisfaction of each of the following conditions precedent:

(a)     each of the representations and warranties of the Company contained in this Agreement shall be true and correct as of the Closing Date, with the same effect as though those representations and warranties had been made on and as of the Closing Date, except to the extent that any such representation 

or warranty is made as of a specified date, in which case such representation or warranty need only be true and correct as of such date;

(b)     the Company shall have duly performed and complied in all material respects with all covenants and agreements contained in this Agreement that are required to be performed or complied with by it at or before the Closing;

(c)     no court or other governmental or regulatory authorities, agencies, commissions or other entities, whether federal, state, local or foreign, shall have enacted, issued, promulgated, enforced or entered any law (whether temporary, preliminary or permanent) that is in effect and restrains, enjoins or otherwise prohibits consummation of the transactions contemplated by this Agreement, and there shall not be pending by or before any such entity any suit, action or proceeding in respect thereof; and

(d)     the Chief Executive Officer and Chief Financial Officer of the Company shall have delivered to Purchaser a certificate, dated as of the Closing Date, certifying to their knowledge, after reasonable inquiry, as to the matters set forth in paragraphs (a) and (b) of this Section 6.1.

Section 6.2    Company Conditions Precedent.  The obligation of the Company to complete the issuance of the Note to Purchaser contemplated by this Agreement is subject to the satisfaction of each of the following conditions precedent:

(a)     each of the representations and warranties of Purchaser contained in this Agreement shall be true and correct as of the Closing Date, with the same effect as though those representations and warranties had been made on and as of the Closing Date, except to the extent that any such representation or warranty is made as of a specified date, in which case such representation or warranty need only be true and correct as of such date;

(b)     Purchaser shall have duly performed and complied in all material respects with all covenants and agreements contained in this Agreement that are required to be performed or complied with by it at or before the Closing;

(c)     no court or other governmental or regulatory authorities, agencies, commissions or other entities, whether federal, state, local or foreign, shall have enacted, issued, promulgated, enforced or entered any law (whether temporary, preliminary or permanent) that is in effect and restrains, enjoins or otherwise prohibits consummation of the transactions contemplated by this Agreement, and there shall not be pending by or before any such entity any suit, action or proceeding in respect thereof; and

(d)     Purchaser shall have delivered to the Company a certificate, dated as of the Closing Date, certifying to his or her knowledge, after reasonable inquiry, as to the matters set forth in paragraphs (a) and (b) of this Section 6.2.

ARTICLE VII
CERTAIN COVENANTS

Section 7.1    Rights of the Holder of the Note.  Pursuant to the provisions of article L.228-98 al. 1 of the French commercial code, the Company is expressly authorized to modify its corporate form or corporate purpose after the execution of this Agreement.

Pursuant to article L.228-99 of the French commercial code, if after the issuance of the Notes, (i) the rules pertaining to distribution or to the share capital amortization are modified, (ii) if securities granting a subscription right to specific investors are issued, (iii) in the event of any distribution of available reserves or of share premium or (iv) in the event of the issuance of preferred shares modifying the apportionment of distribution between shareholders, then the Company shall immediately amend the terms and conditions of the Notes so as to maintain the right of its holder.
The provisions of this Section 7.1 are without prejudice to the application of the provisions pertaining to the adjustment of the Conversion Rate (as defined in the Notes) as set forth in the form of Note attached as Exhibit A hereto.
Section 7.2    Certain Actions.  The Company and Purchaser shall reasonably cooperate with each other and use (and shall cause their respective Affiliates to use) reasonable efforts to take or cause to be taken all actions, and do or cause to be done all things, necessary, proper or advisable on its part under this Agreement, applicable law and stock exchange listing standards to consummate the transactions contemplated by this Agreement as soon as practicable.

Section 7.3    Legends.  To the extent reasonably necessary under applicable law, any certificate, book-entry or ADR representing Conversion Shares which are issued following conversion of the Notes and deposit of the Underlying Shares with the Depositary shall have endorsed, to the extent appropriate, upon its face the following words:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY JURISDICTION.  SUCH SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, ASSIGNED, ENCUMBERED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (I) A REGISTRATION STATEMENT WITH RESPECT TO SUCH SECURITIES THAT IS EFFECTIVE UNDER SUCH ACT OR APPLICABLE STATE SECURITIES LAW, OR (II) ANY EXEMPTION FROM REGISTRATION UNDER SUCH ACT, OR APPLICABLE STATE SECURITIES LAW, RELATING TO THE DISPOSITION OF SECURITIES, INCLUDING RULE 144.
Section 7.4    Legend Removal.  Upon the request of a Purchaser or any transferee or proposed transferee thereof, the Company shall instruct the Depositary to remove the legend contemplated by Section 7.3 of this Agreement (and shall revoke any related stop transfer or similar instructions to its registrar and transfer agent), if the Conversion Shares are covered by an effective registration statement under the Securities Act or if such person provides reasonable evidence and an opinion of counsel to the effect that a sale, transfer or assignment of such Conversion Shares may be made without registration under the Securities Act or that such Conversion Shares are eligible for resale pursuant to Rule 144 under the Securities Act.

ARTICLE VIII
MISCELLANEOUS

Section 8.1    Representation of the Holder of the Note.  The holder of the Note will exercise all rights and obligations granted to the masse pursuant to the provisions of articles L.228-46 et seq. of the French commercial code.

Section 8.2    Entire Agreement.  This Agreement and any documents and agreements executed in connection with the Purchase embody the entire agreement and understanding of the parties hereto with respect to the subject matter hereof and supersede all prior and contemporaneous oral or written agreements, representations, warranties, contracts, correspondence, conversations, memoranda and understandings between or among the parties or any of their agents, representatives or affiliates relative to such subject matter, including, without limitation, any term sheets, emails or draft documents.

Section 8.3    Construction.  References in the singular shall include the plural, and vice versa, unless the context otherwise requires.  References in the masculine shall include the feminine and neuter, and vice versa, unless the context otherwise requires.  Headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meanings of the provisions hereof.  Neither party, nor its respective counsel, shall be deemed the drafter of this Agreement for purposes of construing the provisions of this Agreement, and all language in all parts of this Agreement shall be construed in accordance with its fair meaning, and not strictly for or against either party.

Section 8.4    Governing Law.  This Agreement shall in all respects be construed in accordance with and governed by the substantive laws of the French Republic, without reference to its choice of law rules.

Section 8.5    Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.  Any counterpart or other signature hereon delivered by facsimile shall be deemed for all purposes as constituting good and valid execution and delivery of this Agreement by such party.

Section 8.6    Certain Definitional Provisions.  Unless the express context otherwise requires, the words “hereof”, “herein” and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement; any references herein to a specific Section, Schedule or Annex shall refer, respectively, to Sections, Schedules or Annexes of this Agreement; wherever the word “include”, “includes” or “including” is used in this Agreement, it shall be deemed to be followed by the words “without limitation”; and references herein to any gender includes each other gender.
[Signature Page Follows]

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed as of the date first above written.
The Company
SEQUANS COMMUNICATIONS S.A.

By:                            
Name:
Title:

Purchaser
NOKOMIS CAPITAL MASTER FUND, LP

By:    NOKOMIS CAPITAL, L.L.C.,
its general partner

            
Name:____________________________________
Title:_____________________________________
and
__________________________________________
(PRINT NAME)

Exhibit A
SCHEDULE OF PURCHASERS
	
		
	Name and Address
	Note Principal Amount

	Nokomis Capital Master Fund, LP
	$5,000,000.00

	 
	 

	Address:
	 

	2305 Cedar Springs Road, Suite 420
	 

	Dallas, TX 75201
	 

	United States
	 

	Email: 
	 

	Total
	$5,000,000.00

EXHIBIT B
Form of Convertible Promissory Note

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