Document:

FACTORING AGREEMENT DATED 09-20-2002

	 EXHIBIT 10.21 
	 FACTORING AGREEMENT 
	   
	 THIS FACTORING AGREEMENT (the "Agreement") is entered into as of __________________, 2002 between JOHN DEERE FINANCE S.A., a joint stock corporation with its principal office located at 5, rue Eugène Ruppert, BP
1685 in L-1016 Luxembourg ("Purchaser"), and John Deere Vertrieb, a branch of Deere & Company, located at John Deere Strasse 8, in D-76646 Bruchsal, Germany ("Seller"). 
	   
	 RECITALS 
	   
	 A. 	 Seller is in the business of manufacturing and selling equipment to dealers and in the operation of this business is the owner of certain receivables; 
	   	   
	 B. 	 Seller expects, in continuing to conduct its business, to generate future receivables; and 
	   	   
	 C. 	 Seller has invited Purchaser to purchase the receivables and future receivables and Purchaser has agreed to purchase the receivables and future receivables under the terms and conditions set forth herein.

	   	   
	   	 NOW, THEREFORE, in consideration of the mutual covenants set forth in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties
hereto agree as follows: 
	   
	 ARTICLE I. 	 FACTORING (PURCHASE OF PORTFOLIO; ASSUMPTION OF RESPONSIBILITIES BY THE PARTIES) 
	   
	 1.1 	 Factoring 
	   	   	   
	   	 (A) 	 Purchased Assets. With effect from the end of each John Deere fiscal month and subject to all of the terms and conditions set forth herein, Seller shall sell, assign, transfer and convey to Purchaser,
and Purchaser shall purchase and receive from Seller subject to the terms of this Agreement, all of Seller's right, title and interest in and to the following (collectively referred to as the "Purchased Assets"): 
	   	   	   
	   	   	 (i) each and all of Seller's outstanding dealer accounts receivable or notes receivable as of such date with a dealer or anyone else obligated to make payments with respect to such receivables including a
guarantor thereof ( "Obligor"), in Seller's accounts as of the close of business on the last day of each John Deere fiscal month (the "Receivables"); however, Seller and Purchaser are entitled to exclude certain Receivables from the sale and
purchase as provided for in the last paragraph of this Article 1.1.A. 
	   	   	   
	   	   	 (ii) all rights to any and all collateral which secures the dealers' or any other Obligor's obligations to Seller pertaining to such Receivables (the "Collateral"); 
	   	   	   
	   	   	 (iii) all of the rights of Seller provided by any Receivable agreements (but only to the extent that the rights of Seller provided by any Receivable agreements relate to Receivables), meaning the promissory
notes, credit agreements, guaranties, 

 

	   	   	 applications, security agreements and other agreements entered into by and between Seller and its dealers or other Obligors otherwise evidencing or governing the obligations of such dealers or other Obligors under the
Seller's accounts; 
	   	   	   
	   	 (iv) 	 all security agreements, financing statements or other instruments which relate to the Collateral. 
	   	   	   
	   	   	 Seller is entitled to exclude, at Seller's discretion, from the Receivables any accounts. Purchaser is entitled to reject any Receivable that could, in Purchaser's opinion, constitute a bad debt. Such exclusion of
accounts or rejection of Receivables will only be valid if communicated to the other party latest on the Friday before the end of the John Deere fiscal month in which the sale and purchase of the account or Receivable would occur. 
	   	   	   
	   	 (B) 	 Credit Risk and Loss. Upon the factoring, the risk of late payment and credit loss on the Receivables shall become Purchaser's. The factoring shall be non-recourse and the Purchaser shall not have the right to
sue the Seller in respect of Receivables transferred to it other than in case of breach of this Agreement by the Seller or in case of fraud or manifest dishonesty of the Seller or its agents. 
	   	   	   
	   	 (C) 	 Interest, Charges, Fees. The Purchaser is entitled to all rights to payment of interest, charges and fees on sold Receivables. 
	   	   	   
	   	 (D) 	 Interest on Cash Balances Held by Seller. The Purchaser is entitled to interest on cash collected by the Seller, but not yet paid to the Purchaser. Such interest will be based on the Interest Cost, as defined below in Exhibit 1.2, applied to the daily average balance of cash collected by the Seller during the month. 
	   	   	   
	   	 (E) 	 Transfer of Purchased Assets. The parties agree that the legal transfer of the Purchased Assets shall occur on the last day of the relevant John Deere fiscal month through mutually satisfactory accounting
entries. On a periodic basis, the parties will deliver a schedule (the "Notification Schedule") which will summarize, in a form reasonably satisfactory to both Seller and Purchaser, the sales of Receivables which shall have occurred since the date
of the last summary. 
	   	   	   
	 1.2 	 Purchase Price. 
	   	   	   
	   	 (A) 	 Purchase Price Calculation. 
	   	   	 The purchase price for the Purchased Assets will be the principal balance of the Receivables as of the close of business on the last business day of each John Deere fiscal month plus all accrued but unpaid interest,
without premium or discount, less the Factoring Discount (being the service fee) as defined in Exhibit 1.2. 
	   	   	   
	   	 (B) 	 Purchase Price Payment. Purchaser shall pay each purchase price or any other amounts payable under this Agreement in two installments. The first installment will be an estimated payment calculated not later than
on the Wednesday before closing of the John Deere fiscal month and settled through the Deere foreign exchange netting process on the 

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	   	   	 Friday before the closing of the John Deere fiscal month. The second installment is the difference between the estimated payment and the actual purchase price and will be calculated on the Wednesday after the closing of
the John Deere fiscal month and will be settled through the Deere foreign exchange netting process on the Friday before closing of the succeeding Deere fiscal month. 
	   	   
	 1.3 	 Assumption of Responsibilities by the Parties 
	   	   	   
	   	 (A) 	 Assumption of Liabilities. Purchaser shall not assume any liability, commitment, or obligation of Seller, whether absolute or contingent, known or unknown, of any nature, kind or description whatsoever, arising
from or related to the Purchased Assets, including, without limitation, liabilities arising under or related to any contract, agreement or course of dealing between Seller and its lessors, vendors, servicers, consultants, suppliers, brokers or any
other party or parties. 
	   	   	   
	   	 (B) 	 Charge Backs, Credit Balances. Any charge backs, presentments, credit balances or incorrectly posted transactions with respect to the Receivables will ultimately be borne by the Seller. The Purchaser will bear
all expenses related to credit losses and conduct of litigation against dealers. 
	   	   	   
	   	 (C) 	 Final Authority. Notwithstanding the provisions in Articles 1.3 (A) and (B), the Purchaser shall make all decisions relating to the accounts. 
	   	   	   
	 1.4 	 Post-Sales Adjustments. Following the end of each John Deere fiscal month, Seller shall, with Purchaser's cooperation and assistance, determine and credit or account to Purchaser for any items or
transactions that affect any of the Receivables purchased in such month, but that were posted, un-posted or unaccounted for in such month, including without limitation, cash, letters in process relating to cash or other advances, access checks,
payments in process, unidentified or unallocated items, or errors. 
	   	   
	 1.5 	 Credit Notes and Discounts. 
	   	   	   
	   	 (A) 	 The Seller is irrevocably authorized to issue or grant in good faith to Obligors Credit Notes without limit in amount or time during the lifetime of the Agreement and after the termination date (except where termination
results from the Seller's Insolvency). 
	   	   	   
	   	 (B) 	 When sending each Notification Schedule to the Purchaser the Seller shall specify therein in reasonable detail (including where reasonably practicable each relevant purchased Receivable in respect of which there have
been issued or granted) those Credit Notes issued or granted prior to the close of business on the last day of the John Deere fiscal month in question. 
	   	   	   
	   	 (C) 	 The Seller shall pay to the Purchaser in cleared funds an amount equal to the Credit Notes so notified except to the extent that it is able to prove to the satisfaction of the Purchaser that the relevant Obligor is
unlikely to apply any such Credit Note by way of set-off, credit or other deduction from any purchased Receivable (present or future). The Seller shall make such payment within five business days of sending to the Purchaser the relevant Notification
Schedule. 
	   	   	   
	   	 (D) 	 Where a Credit Note is issued or granted after the due date of a purchased Receivable, and where the Seller is due to make payment to the Purchaser in respect of that Credit 

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3

	   	   	 Note under Article 1.5 (C), then the Seller shall at the same time as it is due to make such payment pay to the Purchaser in the same manner an amount by way of factoring charge applicable to the relevant purchased
Receivable and ending on the due date for payment in accordance with this Article 1.5 (D). 
	   	   
	 1.6 	 True Factoring. The parties intend the transactions described herein to be true factoring and an absolute and irrevocable transfer, sale and assignment of the Purchased Assets from Seller to Purchaser
for all purposes. The factoring and the purchase of the Purchased Assets shall not be disclosed to the Obligors. 
	   	   
	 ARTICLE II. SELLER'S REPRESENTATIONS AND WARRANTIES; REMEDIES 
	   
	 2.1 	 Representations and Warranties. Seller hereby makes the following representations and warranties to Purchaser on each date on which Receivables are sold by Seller to Purchaser and with respect to the
Receivables sold on each such date: 
	   	   	   
	   	 (A) 	 Books and Records Complete. With respect to each Receivable: (i) the Seller's books and records are true and complete in all material respects, and (ii) all material information relating to the credit, charges,
fees, payment history, customer inquiries, information about the dealers or other Obligors and regulatory correspondence which is known and available to Seller relating to such Receivables is contained in the books and records. 
	   	   	   
	   	 (B) 	 Enforceability; Ownership. Each Receivable represents the legal, valid and binding obligation of the Obligors thereunder and is enforceable against such Obligors in accordance with its terms, except as the same
may be limited by bankruptcy, insolvency, moratorium or other laws or regulations, in effect now or in the future, that affect the enforcement of creditors' rights generally. Seller has full legal title to the Receivables and has not assigned any
right, title or interest in such Receivables to any other Person. 
	   	   	   
	   	 (C) 	 Set-off; Defenses. No Account nor such Receivable is the subject of pending or, to the knowledge of Seller, threatened litigation. Seller has administered all accounts in all material respects in accordance with
all requirements of applicable law and Seller's Policies and Procedures. 
	   	   	   
	   	 (D) 	 Lien. No Receivable is subject to any lien, interest or right of any person other than Seller, or at the date of the sale and purchase of the relevant Receivable, to any bankruptcy or imminent proceeding, or
altered or reduced payment program or imminent alteration or reduction thereof. 
	   	   	   
	   	 (E) 	 Ordinary course of Business. Seller has generated and will generate each Receivable in the ordinary course of its business pursuant to and substantially in accordance with Seller's Policies and Procedures
as of the date hereof, or as changed in consultation with the Purchaser. 
	   	   	   
	   	 (F) 	 Servicing of Receivables. All payments or monies received by Seller or its affiliates or third party contractors with respect to the payment of any Receivable have been properly applied. Each Account has been
maintained and serviced by Seller in accordance with Seller's Policies and Procedures as well as all requirements of applicable law. 

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	 2.2 	 Remedies for Breach of Representations and Warranties. All representations and warranties shall survive for three years from the date of sale and purchase of each individual Receivable. Seller shall, in
accordance with all applicable laws, indemnify and hold Purchaser, its employees, directors and agents harmless from adverse consequences arising out of any material breach of any representations or warranties of Seller contained herein or Seller's
intentional or gross negligent misconduct relating to the performance of Seller's obligations hereunder. Seller's total obligations pursuant to Article III of this Agreement shall, however not exceed the aggregate purchase price for the Receivables.

	   	   
	 ARTICLE III. GENERAL PROVISIONS 
	   	   
	 3.1 	 Severability. If any term or condition of this Agreement should be held invalid by a court, arbitrator or tribunal of competent jurisdiction in any respect such invalidity shall not affect the validity of any
other term or condition hereof. If any term or condition of this Agreement should be held to be unreasonable as to time, scope or otherwise by such a court, arbitrator or tribunal, it shall be construed by limiting or reducing it to a minimum extent
so as to be enforceable under then applicable law. The parties hereto acknowledge that they would have executed this Agreement with any such invalid term or condition excluded or with any such unreasonable term or condition so limited or reduced.

	   	   
	 3.2 	 Entire Agreement; Amendments. This Agreement and its exhibits and the agreements it incorporates by reference constitute the entire agreement of the parties with regard to the specific subject matter hereof and
supersede all prior written and/or oral understandings between the parties. This Agreement may not be amended except pursuant to a writing signed by both parties. 
	   	   
	 3.3 	 No Third Party Beneficiaries. This Agreement is for the sole and exclusive benefit of the parties hereto. Nothing in this Agreement shall be construed to grant to any person other than the parties hereto, and
their respective successors and permitted assigns, any right, remedy or claim under or in respect of this Agreement or any provision hereof. 
	   	   
	 3.4 	 Applicable Law; Place of Jurisdiction. This agreement shall be governed by and construed in accordance with the laws of Germany. Any dispute which cannot be resolved amicably between the parties with regard to
the interpretation, meaning, effect or application of this Agreement shall be submitted to the competent court in Mannheim, Germany. 

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       IN WITNESS WHEREOF, the parties have duly executed and delivered this Factoring Agreement as of the day and year first above written.

	 JOHN DEERE FINANCE S.A. 	 JOHN DEERE VETRIEB 
	 By: 	 By: 
	 Name: Stephen Pullin
 Title: Director 	 Name: Markwart von Pentz
 Title: General Manager 
	 By: 	 By: 
	 Name: Thomas Annis
 Title: General Manager 	 Name: Nils Jäger
 Title: Manager, Finance and Accounting 

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	 EXHIBIT 1.2 	 Purchase Price Calculation -Factoring Discount 
	   	   
	 This Exhibit 1.2 describes the formulae for calculating the Factoring Discount on the sale and purchase of trade receivables by Seller to Purchaser. 
	   
	 (i) On initial purchase 
	 The Factoring Discount for the initial purchase will reflect the Credit Risk composed by both the Average Annual Loss and the Average Annual Costs of Late Payment experienced by the Seller during a period of 10 years
prior to the date of sale. It covers the credit risk for the period between inception and purchase of the portfolio, assuming that the payment term of the population of purchased receivables has elapsed by 50%, on average. 
	   
	 The factor will be calculated as follows: 
	   
	 D=rcr*portfolio 
	   
	 with: 
	 r cr = (avg.loss + avg.late) * 100 
           avg.receiv * turns * 2 	 + 2s 

  

	 (ii) On each subsequent month end 	   
	   
	 The monthly Factoring Discount for subsequent months will be calculated taking into account the Cost of Equity, the Cost of Debt Funding, Administrative Costs, Service Costs and Credit Risk. 
	   
	 D = d * (avg. portfolio month - past.due) 
	   
	 with: 
	 
 	 
 	 
 	 
 
	 d year = r debt + r equity + r ad min + r serv + r cr ; 	 d day =  	 d year 	 
 
	 
 	 
 	 
 	 
 
	   	   	 365 	   
	   	   
	 r debt = debt *i avg 	 r equity = equity * roe 
	   	   	   
	 r ad min =  	 exp ad min * 100 	 r cr = avg.loss + 2s + avg.late 
	 
 	 
 	 
 	 
 
	   	 avg.portfolio year 	   
	   	   	   
	 r serv = 	 exp serv * 100 	   
	 
 	 
 	 
 	 
 
	   	 avg.portfolio year 	   

  Definitions:

	 Term 	 Description 	 Dimension 
	 debt 	 Average Indebtedness: Debt funding at arm's length level as a percentage of total amount of debts of total assets. 	 % 
	 equity 	 Average Equity: Equity funding at arm's length level as a percentage of total average equity to total assets. 	 % 
	 avg.late 	 Average costs of late payment: Average costs of funding of overdue receivables. 	 % 
	 avg.loss 	 Average loss: Average loss as a percentage of total average outstanding receivables experienced during a period of rolling 10 years; weighted by seniority 	 % 
	 avg.portfolio 	 Average Portfolio: Average daily balances of portfolio reduced by any cash received during a given fiscal month or fiscal year. 	 currency 
	 Avg.receiv 	 Average Receivables: Average amount of receivables outstanding experienced during a period of 10 years,; weighted by seniority. 	 currency 
	 D 	 Factoring Discount: Amount of money accounted to the Purchase Price of purchased Receivables 	 Currency 
	 dYear 	 Annual Discount Rate 	 % 
	 dday 	 Daily Discount Rate: Based on 365 days per year 	 % 
	 expadmin 	 Annual Administrative Expenses: Budgeted expenses to run Purchaser's business except for administering and collecting portfolio. 	 currency 
	 expserv 	 Annual Servicing Expenses: Budgeted expenses for administering and collecting portfolio. 	   
	 Iavg 	 Monthly Average Interest Rate: to be determined monthly based on debt funding mix 	 % 
	 past.due 	 Past Due Receivables: Receivables will be considered past due if and to the extent they are not paid at the first day of the second fiscal month after due date 	 currency 
	 portfolio 	 Portfolio: Amount of Receivables on Purchaser's balance sheet 	 currency 
	 radmin 	 Administrative Cost: Rate of annual Administrative Expenses as a percentage of annual Average Portfolio 	 % 
	 rcr 	 Credit Risk: Rate of credit losses experienced adjusted by two Standard Deviations, and cost of late payment. 	 % 
	 rdebt 	 Cost of Debt Funding: Effective cost of debt funding for an arm's length funding mix; rdebt will be based on documentation of actual trades or bank quotes, as the case may be, maintained by
Treasury and will be calculated monthly. 	 % 
	 requity 	 Cost of Equity: ROE weighted by the avg. equity ratio. The appropriate leverage to apply to the portfolio will be determined dependent on level of credit risk Purchaser is exposed to. 	 % 
	 rserv 	 Service Cost: Rate of costs to administrate and collect the portfolio as determined by Purchaser based on budgeted expenses 	 % 
	 roe 	 Return on Equity: Arm's length cost of equity as usually required by factoring companies. 	 % 
	 s  	 Standard Deviation: Weighted standard deviations 	 % 
	 turns 	 Turnover: Average annual turnover of the Portfolio calculated by dividing the sum of annual purchases of receivables by the annual Average Portfolio 	 numberRECEIVABLES PURCHASE AGREEMENT DATED 08-23-2002

	 EXHIBIT 10.22
	 RECEIVABLES PURCHASE AGREEMENT
	  
	 THIS AGREEMENT is dated
the                                        
                  2002,
	  
	 BETWEEN:
	  	  
	 (1)	 JOHN DEERE FINANCE S.A., a joint stock company with its principal office located at 5, Rue Eugène Ruppert, BP 1685 in L-1016, Luxembourg (the "Purchaser"): and
	
	

	 (2)	 JOHN DEERE LIMITED, a company registered in Scotland having its registered office at 30-31 Queen Street, Edinburgh EH2 1JX and with its principal office located at Langar, Nottingham, NG13
9HT, United Kingdom (the "Seller")
	  
	 IT IS HEREBY AGREED:
	  	  
	 1.	 Offer for Sale
	  	  
	 1.1	 The Seller offers for sale to the Purchaser on the terms and conditions of this Agreement all Receivables existing at the Commencement Date and all Receivables arising after the Commencement Date
until notice of termination in accordance with Clause 16 is given or received by the Seller.
	
	

	 1.2	 Subject to Clause 1.4, all of the Seller's right, title and interest to and in each Receivable shall automatically vest in the Purchaser by way of assignment and sale whether or not yet entered in the
Seller's accounting records as being due to the Seller on the Commencement Date or, where it comes into existence on a later date, on that date.
	
	

	 1.3	 The Seller shall send to the Purchaser a Notification Schedule specifying the relevant Receivables on or as soon as reasonably practicable after the Commencement Date or, as the case may be, as soon
as reasonably practicable after the end of each Period.
	
	

	 1.4	 The Purchaser is entitled at any time and from time to time by giving notice by electronic means only to the Seller to state that it will no longer purchase any Receivables relating to one or more
Debtors specified in that notice and such notice shall take immediate effect in accordance with its terms. Such notice shall also have effect, in respect of Receivables relating to any Debtor so specified and which have come into existence during
the Period in which it is given, of selling and assigning them back to the Seller together with the Associated Rights relating thereto for the same purchase price as is payable by the Purchaser for such Receivables in accordance with Clause 5
whereupon all of the Purchaser's right, title and interest to and in each such Receivable shall automatically vest in the Seller by way of assignment and sale whether or not yet entered in the Purchaser's accounting records.
	
	

	 1.5	 The Seller shall promptly, clearly and accurately record in its accounting records that the Purchased Receivables have been assigned and sold to the Purchaser.

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	 2.	 Associated Rights
	  	  
	  	 Upon a Receivable vesting in the Purchaser under Clause 1 there shall also automatically be assigned to and vest in the Purchaser all the Associated Rights relating thereto.
	  	  
	 3.	 Formal Assignment
	  	  
	 3.1	 The Seller shall at the request of the Purchaser and at the Seller's expense execute a formal written assignment in a form reasonably specified by the Purchaser in favour of the Purchaser in respect
of all or any Purchased Receivables and/or Associated Rights. If any Purchased Receivable and/or Associated Right shall fail to vest effectively in the Purchaser in equity, the Seller shall hold such Purchased Receivable and/or Associated
Right in trust for the Purchaser.
	
	

	 3.2	 The Seller agrees to pay, reimburse or indemnify the Purchaser on demand against any stamp duty, and any penalties and interest arising in relation thereto, payable in respect of the transfer of
Receivables to the Purchaser.
	  	  
	 4.	 Ownership of Goods
	  	  
	  	 The Seller shall promptly notify the Purchaser as to any goods relating to a Purchased Receivable which are returned to or repossessed by the Seller. Within five business days of receipt of such
notice the Purchaser shall be entitled to require the transfer to it of any right, title, property or interest of the Seller in or to all or any of those goods. Where the Purchaser requires such transfer the Seller shall deal with the relevant goods
in such manner as the Purchaser may reasonably instruct and the Seller shall hold the relevant right, title, property and/or interest in or to such goods in trust for the Purchaser.
	  	  
	 5.	 Purchase Price
	  	  
	 5.1	 The purchase price of each Receivable together with its Associated Rights and any right, title, property and/or interest in or to any goods relating to that Receivable which are transferred to the
Purchaser under Clause 4 shall be the net amount (including any VAT or other tax or duty) payable by the relevant Debtor in respect of such Receivable as specified in the relevant Notification Schedule less, in the case of Receivables sold on the
Commencement Date, the Doubtful Account Reserve applicable to those Receivables.
	
	

	 5.2	 The Doubtful Account Reserve shall be the product D calculated in accordance with the formula set out in Part 1 of the Schedule and applied to the relevant amount. 
	
	

	 5.3	 The purchase price of all Receivables shall be payable in sterling or, where the Receivable is payable in Euro and the parties so agree, in Euro. Where a Receivable is payable or paid otherwise than
in sterling the purchase price shall be computed by reference to the rate of exchange ruling in London on the Factoring Charge End Date, but for administrative convenience and for the purpose of calculating the amount 

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	  	 payable by the Purchaser in accordance with clause 5.4 the Purchaser shall provisionally apply the rate ruling in London on the nearest practicable date prior to that on which that
Receivable is first taken into account in the preparation of any estimate under Clause 5.5 or, if later, the relevant Notification Schedule, making such adjustments as may thereafter be necessary. For this purpose the Factoring Charge End Date shall
be the date determined in accordance with Clause 6.1 on which the Factoring Charge ceases to be payable in respect of that Receivable.
	
	

	 5.4	 The Purchaser shall pay to the Seller in cleared funds by electronic transfer to such bank account as the Seller may notify from time to time (or by such other means as the parties may from
time to time agree) sums becoming due and payable by the Purchaser to the Seller under this Agreement.
	
	

	 5.5	 The Seller shall use its reasonable endeavours to send to the Purchaser on or before the close of business on the last Tuesday in each Period, or failing which as soon as possible
thereafter, notice by electronic means only setting out its best estimate of the following:
	
	
	

	  	 (a)	 the aggregate purchase price for Receivables sold or to be sold to the Purchaser during that Period;
	  	 (b)	 any amount applicable to those Receivables and arising under Clause 5.3; and
	  	 (c)	 the aggregate amount of Credit Notes issued or granted or to be issued or granted by the Seller during that Period and in respect of which the Seller is likely to be obliged to make payment under
Clause 9.3.
	
	

	  	 Such notice shall also specify the applicable Previous Period Adjustment Amount (being the Adjustment Amount calculated under Clause 5.7 for the immediately preceding Period).
	
	

	 5.6	 The relevant party shall use its reasonable endeavours to pay to the other on or before the close of business on the last day of the relevant Period, or failing which it shall pay as soon as
possible thereafter, the applicable net amount based on the estimates prepared for that Period under Clause 5.5 and taking into account the applicable Previous Period Adjustment Amount.
	
	

	 5.7	 When sending a Notification Schedule to the Purchaser in respect of any Period the Seller shall specify the applicable Adjustment Amount (being the net difference between the estimated
amounts for that Period made under Clause 5.5 and the corresponding amounts as included in that Notification Schedule).
	
	

	 5.8	 The Purchaser shall not assume any liability, commitment or obligation of the Seller to any Debtor or any other third party, whether absolute or contingent, known or unknown, present or
future, of any nature, kind or description whatsoever arising from, relating to or in connection with any contract for the sale or supply of goods or the provision of services by the Seller and from which a Purchased Receivable arises, or is alleged
to arise.

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	 6	 Factoring Charge
	  	  
	 6.1	 The Seller will pay to the Purchaser a charge (the "Factoring Charge") on the balance outstanding from time to time of any Purchased Receivable (that balance being determined as envisaged in
Clause 11.3) commencing on the day the Purchaser pays the purchase price for that Purchased Receivable or an amount on account thereof as envisaged in Clause 5.6 or is credited with having done so and until the earliest of the following:
	
	
	

	  	 (a)	 the end of the Period next following the Period in which the Due Date of that Purchased Receivable falls; and
	  	 (b)	 the outstanding balance of that Purchased Receivable being recognised as a bad or doubtful debt.
	
	

	 6.2	 The Factoring Charge shall be the product D calculated in accordance with the formula set out in part 2 of the Schedule and shall be calculated daily on such outstanding balance.
	
	

	 6.3	 The Seller shall pay to the Purchaser in cleared funds by electronic transfer to the Factoring Account or, pending the opening of the Factoring Account, to such other account as the
Purchaser may from time to time direct (or by such other means as the parties may from time to time agree) the aggregate amount of the Factoring Charges which have accrued in respect of each Period. The Seller shall use its reasonable endeavours to
make such payment on or before the close of business on the last day of the next following Period, or failing which as soon as possible thereafter.
	
	

	 6.4	 The Purchaser shall be entitled:
	
	
	

	  	 (a)	 after having consulted with the Seller and on giving not less than 60 days written notice prior to each 31st October during the lifetime of this Agreement and so as to take effect on the
next following 1st November, to add to, delete, increase, reduce or otherwise vary or alter in any respect all or any part of the formula used for calculating the Factoring Charge and/or the amount or percentage of any of the variables to
be used in the operation of any such formula: and
	  	 (b)	 at any time and from time to time by giving written notice on or before the end of any Period and so as to take effect at the commencement of the next following Period to increase, reduce or otherwise
vary or alter the variable in respect of the Monthly Average Interest Rate.
	  	  
	 7	 Credit Risk
	  	  
	  	 Subject to Clause 1.4, it is agreed and acknowledged between the parties that the credit risk in relation to any Receivable passes immediately to the Purchaser upon it vesting in the
Purchaser.

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	 8	 Variable Due Dates
	  	  
	 8.1	 When sending each Notification Schedule to the Purchaser the Seller shall specify therein in reasonable detail those Purchased Receivables which have fallen due for payment by the relevant Debtor
during any Period which has ended prior to the sending of that Notification Schedule and which have not been previously so notified and shall also specify the date on which each such Purchased Receivable fell due for payment (the "Due
Date").
	
	

	 8.2	 The Purchaser shall make any resulting adjustment to the calculation of the Factoring Charge for the purposes of Clause 6.1 to take account of the Due Dates as so notified.
	
	

	 8.3	 The Purchaser shall be entitled to require the Seller to produce such evidence as is in its possession and upon which the Seller relies for specifying the Due Dates in question. Where the Purchaser
wishes to dispute or query whether a Due Date has been correctly specified the parties shall consult together but in the absence of any agreement resulting from such consultation the determination of the subject matter of that dispute or query by
the Seller shall be final and binding.
	  	  
	 9	 Credit Notes and Discounts
	  	  
	 9.1	 The Seller is irrevocably authorised to issue or grant in good faith to Debtors Credit Notes without limit in amount or time during the lifetime of this Agreement and after the Termination Date
(except where termination results from the Seller's Insolvency).
	
	

	 9.2	 When sending each Notification Schedule to the Purchaser the Seller shall specify therein in reasonable detail (including where reasonably practicable each relevant Purchased Receivable in respect of
which they have been issued or granted) those Credit Notes issued or granted prior to the last day of the most recently ended Period.
	
	

	 9.3	 The Seller shall pay to the Purchaser in cleared funds by electronic transfer to the Factoring Account (or by such other means as the parties may from time to time agree) an amount equal to the Credit
Notes so notified except to the extent that it is able to prove to the satisfaction of the Purchaser that the relevant Debtor is unlikely to apply any such Credit Note by way of set-off, credit or other deduction from any Purchased Receivable
(present or future). The Seller shall make such payment in accordance with the procedure set out in Clauses 5.5 to 5.7 (inclusive).
	
	

	 9.4	 For the purpose of calculating Factoring Charges under Clause 6.1 the outstanding balance of any Purchased Receivable shall be reduced by the amount of any Credit Note with effect from the end of the
Period in which that Credit Note is issued or granted.
	  	  
	 10	 Collection
	  	  
	 10.1	 This Agreement is intended to operate on a confidential basis so that the Purchaser's purchase of any Purchased Receivables shall not be notified to the relevant Debtors but the Purchaser reserves the
right, at its discretion, to cause such notification to be made at any time to any Debtor or other person.

 Page 5 of 16

	 10.2	 The Seller shall, unless and until the Purchaser otherwise instructs the Seller and subject to any further agreement which the parties may make in relation to the provision of this service, collect
the Purchased Receivables for the Purchaser and shall act promptly and efficiently in doing so. The Seller shall be entitled, but not obliged, at its own cost and expense (except to the extent that the parties may otherwise from time to time agree),
to enforce payment of any Purchased Receivable and/or to exercise Associated Rights in whatever manner it may in its discretion decide, including the commencement, carrying on and defence of any proceedings whether in its own name or that of the
Purchaser. The Purchaser shall when requested to do so give all reasonable assistance and provide all relevant information in its possession or under its control to the Seller for the purposes envisaged under this Clause.
	
	

	 10.3	 In exercising its powers and discretions under this Clause 10 the Seller shall consult with the Purchaser whenever the Seller reasonably expects that the outcome of such exercise is likely to have a
materially adverse impact on the Purchaser's interests.
	  	  
	 11	 Factoring Account
	  	  
	 11.1	 The Seller shall forthwith upon being required to do so by the Purchaser open a trust account (the "Factoring Account") at such bank in London as the Purchaser may nominate, which shall be in the name
of the Seller but the balance from time to time on which shall be held in trust for the Purchaser who shall have the sole right to draw on such account. All charges relating to the operation of the Factoring Account are for the Purchaser's
account.
	
	

	 11.2	 Upon the opening of the Factoring Account any cheques, drafts, monies or other payments received or held by the Seller by way of discharge of any Purchased Receivables and/or Associated Rights shall
be held in trust for the Purchaser and paid into the Factoring Account forthwith upon receipt by the Seller or, in the case of any cheques, drafts or other monies held in trust by the Seller for any person, upon the Seller being irrevocably and
unconditionally authorised to deal with them, without being paid into any other bank account. Any payments of Purchased Receivables and/or in respect of Associated Rights made direct into any bank account maintained by the Seller other than the
Factoring Account shall be remitted by the Seller forthwith to the Factoring Account or to such other account as the Purchaser may from time to time direct.
	
	

	 11.3	 All sums credited to the Factoring Account by way of the payment of Purchased Receivables and/or Associated Rights or remitted to the Purchaser on account thereof by the Seller shall be taken into
account, with effect from the date upon which each such credit or remittance is made, in establishing the outstanding balance of the relevant Purchased Receivable for the purpose of calculating the Factoring Charge thereon under Clause
6.1.
	  	  
	 12	 Warranties
	  	  
	  	 The Seller shall be taken to warrant to the Purchaser as at the 
 date it sends each Notification Schedule to the Purchaser and by 
 reference to the facts and circumstances existing at that
date and 
 which are then known to the Seller (except to the extent that the

 Page 6 of 16

	  	 Seller makes fair and reasonable disclosure of any relevant matter in writing to the Purchaser) as follows:
	
	
	

	  	 (a)	 the Seller is the legal and beneficial owner of the Receivables included in that Notification Schedule;
	  	 (b)	 there is no mortgage, charge, lien, trust or other encumbrance or security rights or any tracing or other equitable right which affects those Receivables;
	  	 (c)	 the goods to which each of those Receivables relates have been despatched to or to the order of the relevant Debtor or have been collected by it or on its behalf and/or, in the case of services, have
been completely performed;
	  	 (d)	 no reservation of title in favour of any third party applies to any of the goods sold or supplied by the Seller and to which each of those Receivables relates;
	  	 (e)	 each relevant Debtor has no right of set-off or counterclaim that will reduce or extinguish the amount of any of those Receivables or adversely affect the collection thereof (except as a result of the
issue or grant of any Credit Note as envisaged and in accordance with Clause 9);
	  	 (f)	 each such Receivable is an existing, enforceable and undisputed obligation of the relevant Debtor;
	  	 (g)	 each such Receivable is subject to the Seller's standard terms and conditions of sale in force from time to time and which have been approved by the Purchaser;
	  	 (h)	 the Seller's books and records relating to those Receivables are true and complete in all material respects and contain all material information relating to the creditworthiness and payment history of
each relevant Debtor;
	  	 (i)	 each such Receivable has arisen in the ordinary course of the Seller's business and substantially in accordance with the Seller's normal policies and procedures applicable to ordinary transactions
with the relevant Debtor.
	  	  
	 13	 Undertakings
	  	  
	  	 The Seller undertakes to the Purchaser that at all times until the Termination Date it shall:
	
	
	

	  	 (a)	 not, unless the Purchaser shall have given its prior written consent, create or permit to exist any mortgage, charge, lien, trust or other encumbrance or security on any material part of the Seller's
property, assets or undertaking;
	  	 (b)	 ensure that the making and performance of this Agreement by the Seller does not contravene any law, regulation or statute and does not constitute a breach of or event of default under any agreement
binding on the Seller;
	  	 (c)	 take all reasonable care with a view to ensuring that all statements and information (including the Notification Schedules) provided by the Seller to the

 Page 7 of 16

	  	  	 Purchaser in the course of the performance of this Agreement or in connection with its subject matter are true and complete in all material respects;
	  	 (d)	 exercise due care and diligence in granting credit to or maintaining credit with its customers and Debtors with a view to avoiding or minimising any losses which the Purchaser may suffer in relation
to any Purchased Receivables;
	  	 (e)	 notify the Purchaser forthwith upon becoming aware of any facts or circumstances which give reasonable grounds for the Seller to believe that any Debtor is Insolvent or Potentially Insolvent or is
likely to become Insolvent;
	  	 (f)	 at any time permit the Purchaser to carry out a review of the Seller's accounts, records, procedures and to inspect and take copies of all documents and records which may have a material bearing on
the operation of this Agreement.
	  	  
	 14.	 VAT Bad Debt Relief
	  	  
	  	 Where the terms of the VAT Bad Debt Procedure would apply to any Purchased Receivable but for its assignment to the Purchaser and if the parties agree (which neither of them shall be obliged
to do) that that Purchased Receivable together with its Associated Rights shall be reassigned to the Seller then the Seller shall:
	
	
	

	  	 (a)	 pay to the Purchaser a sum equivalent to the VAT included in such Purchased Receivable that the Seller is entitled to reclaim under the VAT Bad Debt Procedure; and
	  	 (b)	 hold in trust for the Purchaser any dividend or other sum (other than VAT) received by the Seller on account of such Purchased Receivable and/or Associated Rights.
	  	  
	 15	 Power of Attorney
	  	  
	  	 The Seller hereby irrevocably appoints the Purchaser as its Attorney to secure the performance of its obligations under this Agreement and at any time in its name and on its behalf to
execute legal assignments or to obtain payment of all or any Purchased Receivables and to endorse on the Seller's behalf negotiable instruments or other securities received in respect of Purchased Receivables and generally at any time to execute and
do such further documents and things as the Purchaser may in its absolute discretion consider to be necessary or expedient for perfecting its title to such Purchased Receivables and/or Associated Rights and for the recovery of the same.
	  	  
	 16	 Termination
	  	  
	 16.1	 Either party may terminate this Agreement on giving to the other at any time not less than 90 days written notice or, where the Purchaser gives any notice to the Seller under Clause 6.4(a) ,
by the Seller giving to the Purchaser within 30 days of receipt of such notice not less than 15 days written notice of termination.

 Page 8 of 16

	 16.2	 Either party may terminate this Agreement forthwith by written notice if the other:
	
	
	

	  	 (a)	 becomes Insolvent or Potentially Insolvent; or
	  	 (b)	 ceases to be an Associated Company of the party giving such notice.
	
	

	 16.3	 Such termination shall not affect the rights and obligations of the parties in relation to Purchased Receivables and Associated Rights as have vested in the Purchaser prior to the
Termination Date nor any accrued rights or obligations as at that date.
	
	

	 16.4	 With effect from the giving or receipt of any notice of termination under this Clause 16 the Seller shall be entitled to withdraw its offer for sale in respect of any Receivables thereafter
coming into existence.
	  	  
	 17	 Set-Off
	  	  
	  	 The Purchaser may at any time set-off against any sum payable to the Seller the amount of any liability of the Seller to the Purchaser arising under or in connection with this Agreement,
whether existing, future or contingent and whether by way of debt, damages or restitution. The Purchaser may at any time combine or consolidate all or any of its accounts recording transactions between the Purchaser and the Seller.
	  	  
	 18	 Assignment
	  	  
	 18.1	 The Purchaser shall be entitled without the consent of the Seller to assign to any other person all or any of its rights, benefits and remedies under or in connection with this Agreement and
the provisions hereof shall apply for the benefit of such other person. The Seller may not assign to any other person any of its rights, benefits or remedies under or in connection with this Agreement.
	
	

	 18.2	 This Agreement is enforceable by the original parties to it and by their permitted assigns. It is not intended by the parties to this Agreement that any other person should be entitled to
enforce any term hereof, whether by virtue of the Contracts (Rights of Third Parties) Act 1999 or otherwise and any other such right to do so is hereby excluded. The parties to this Agreement may rescind this Agreement or vary any of its terms
without the consent of any third party. The foregoing provisions of this Clause do not affect the rights or remedies of any third party which exist or are available apart from that Act.
	  	  
	 19	 Disclosure of Confidential Information
	  	  
	  	 The Seller acknowledges and agrees that the Purchaser shall be entitled to disclose to any person who has a need to know (including any actual or prospective assignees, investors, funders,
employees, professional or financial advisors, insurers) with any confidential information of the Seller or relating to its business as the Purchaser may in its absolute discretion determine.

 Page 9 of 16

	 20	 Entire Agreement
	  	  
	  	 This Agreement supersedes any previous agreement between the parties in relation to the matters dealt with herein and together with any other existing agreement in writing between them, if any, which
is ancillary to and expressly refers to this Agreement represents the whole and only agreement and understanding between the parties in relation thereto and each party acknowledges and agrees that it has not entered into this Agreement in reliance
upon any representations, agreements, statements (whether oral or written) made or alleged to have been made by the other party or its officers, servants, agents or representatives on or prior to the date hereof. This Clause shall not have the
effect of excluding any term implied by law. Nothing in this Clause shall operate to limit or exclude any liability of either party for fraud or fraudulent misrepresentation.
	  	  
	 21.	 Applicable Law
	  	  
	  	 This Agreement shall be governed by and construed in accordance with the laws of England.
	  	  
	 22	 Interpretation
	  	  
	 22.1	 In this Agreement the following words and expressions shall have the following meanings:-
	
	

	  	 "Associated Company" means at any time, in respect of any company, that company together with any other company which is, at that time, either its subsidiary, holding company or another subsidiary of
any such holding company;
	
	

	  	 "Associated Rights" means all instruments, guarantees, indemnities, the benefits of any insurances, encumbrances and other rights given to or held by the Seller in respect of any Receivable or under
or in relation to the relevant contract, goods or services (except any right, title, property or interest in/or to such goods retained by the Seller);
	
	

	  	 "Commencement Date" means the date specified as being the Commencement Date (being a date which falls on the last day of a Period) in a notice given by the Purchaser to the Seller;
	
	

	  	 "Credit Note" means any credit note issued by the Seller to any Debtor or any allowance by way of discount, credit or other deduction granted to any Debtor;
	
	

	  	 "Debtor" means a debtor in respect of a Purchased Receivable;
	
	

	  	 "Doubtful Account Reserve" has the meaning ascribed to it in Clause 5.2;
	
	

	  	 "Due Date" has the meaning ascribed thereto in Clause 8.1;
	
	

	  	 "Factoring Account" has the meaning ascribed thereto in Clause 11.1;

 Page 10 of 16

	  	 "Factoring Charge" has the meaning ascribed thereto in Clause 6.1 and includes any charge arising under Clause 9.5;
	
	

	  	 "Insolvent" means in respect of a person, that there has been taken by a court or by any person in respect of that person any of the steps set out below (or some other similar step under any
law other than English law):
	
	
	

	  	 (a)	 a bankruptcy order has been made;
	  	 (b)	 a composition or a scheme of arrangement has been approved by the court;
	  	 (c)	 an assignment, composition or other arrangement has been made for the benefit of creditors generally;
	  	 (d)	 an order had been made by the court for winding-up or administration;
	  	 (e)	 a resolution has been passed for voluntary winding-up;
	  	 (f)	 a compromise or arrangement has been made binding on that person and all its creditors; or
	  	 (g)	 an administrative receiver or a receiver on behalf of debenture holders or other creditors has been appointed;
	
	

	  	 "Notification Schedule" means a notice sent by electronic means only by the Seller to the Purchaser pursuant to Clause 1.3 which shall be in a form specified by the Purchaser from time to
time;
	
	

	  	 "Period" means a John Deere fiscal month as established from time to time by Deere and Company;
	
	

	  	 "Potentially Insolvent" means, in respect of a person, that any petition or any other originating process has been presented or any demand or notice has been issued or any other step has
been taken under a legal procedure which could result in that person becoming Insolvent;
	
	

	  	 "Purchased Receivable" means any Receivable but excluding, with effect from the date of any resale, any Receivable which is resold by the Purchaser to the Seller in accordance with Clause
1.4;
	
	

	  	 "Receivable" means any debt (including, where the context permits any part of a debt and any tax, duty or interest on that debt) arising from a contract for the sale or supply of goods or
the provision of services by the Seller where the goods the subject of that contract have been despatched to or to the order of the relevant debtor or collected by it or on its behalf and/or the services the subject of that contract have been
completely performed by the Seller;
	
	

	  	 "sterling" means the lawful currency of the United Kingdom from time to time;
	
	

	  	 "Termination Date" means the date of termination of this Agreement pursuant to a notice given in accordance with Clause 16;

 Page 11 of 16

	  	 "VAT" means value added tax;
	
	

	  	 "VAT Bad Debt Procedure" means the scheme and procedures, as may be varied from time to time, established by HM Customs and Excise to enable suppliers of goods to reclaim the VAT element of
debts which become bad or doubtful.
	
	

	 22.2	 In this Agreement, unless otherwise specified or unless the context otherwise requires:
	
	
	

	  	 (a)	 References to any person includes that person's legal personal representatives, successors and permitted assigns.
	  	 (b)	 References to writing shall include any modes of reproducing words in a legible and non-transitory form and any requirement that any notice should be sent or transmitted by electronic means
is satisfied where the text of the notice-
	
	
	
	

	  	  	 (i)	 is received in legible form, and
	  	  	 (ii)	 is capable of being used for subsequent reference.
	
	
	

	  	 (c)	 Headings used in this Agreement are for convenience only and do not affect the interpretation hereof.
	  	 (d)	 References to any English legal term for any action, remedy, method of judicial proceeding, legal document, legal status, court, official, or any law, legal concept or thing shall in respect
of any jurisdiction other than England be deemed to include what most nearly approximates in that jurisdiction to that English legal term.
	  	 (e)	 General words introduced by the word "other" shall not be given a restrictive meaning by reason of the fact that they are preceded by words indicating a particular class of acts, matters or
things, and general words shall not be given a restrictive meaning by reason of the fact that they are followed by particular examples intended to be embraced by the general words.
	  	 (f)	 The words "include", "including" and "in particular" shall be construed as being by way of illustration or emphasis and shall not limit or prejudice the generality of any foregoing words or
phrases.
	  	 (g)	 References to the masculine shall include the feminine and references in the singular shall include references in the plural and vice versa.
	  	 (h)	 Cognate words and expressions deriving from the definitions given in clause 22.1 shall be construed accordingly.

 Page 12 of
16

	 IN WITNESS WHEREOF, the parties have duly executed and delivered this Agreement as of the day and year first above written.

	 JOHN DEERE FINANCE S.A.
 
 	 JOHN DEERE LIMITED
	 By: 	 By: 
 
 
 
 
	 Name: Stephen Pullin
 
 
 Title: Director	 Name: Clay T. Sherrill
 
 
 Title: General Manager
	 By: 	 By: 
 
 
 
 
	 Name: Thomas Annis
 
 
 Title: General Manager	 Name: Malcolm Jackson
 
 
 Title: Manager, Finance and Administration

 Page 13 of 16

	 SCHEDULE
 Part 1
	

	 Doubtful Account Reserve on initial purchase
	

	 The Doubtful Account Reserve for the initial purchase will reflect the Credit Risk composed by both the Average Annual Loss and the Average Annual Costs of Late Payment experienced by the Seller during
a period of 10 years prior to the date of sale. It covers the credit risk for the period between inception and purchase of the portfolio, assuming that the payment term of the population of purchased receivables has elapsed by 50%, on
average.
	  
	 The factor will be calculated as follows:
	  
	 D = r cr * portfolio
	  
	 with:
	  	  
	 r cr = (avg.loss + avg.late) * 100 
           avg.receiv * turns * 2	 + 2s 
	  
	 Part 2
	

	 Factoring Charge on each subsequent month end
	

	 The monthly Factoring Charge for subsequent months will be calculated taking into account the Cost of Equity, the Cost of Debt Funding, Administrative Costs, Service Cost and Credit Risk.
	  
	 D=d*(avg. portfolio month - past.due)
	  
	 with:
	
	
	
	

	 d year = r debt + r equity + r ad min + r serv + r cr ;	 d day = 	 d year	

	
	
	
	

	  	  	 365	  
	  	  
	 r debt = debt *i avg	 r equity = equity * roe
	  	  	  
	 r ad min = 	 exp ad min * 100	 r cr = avg.loss + 2s + avg.late
	
	
	
	

	  	 avg.portfolio year	  
	  	  	  
	 r serv =	 exp serv * 100	  
	
	
	
	

	  	 avg.portfolio year	  

 Page 14 of 16

  Definitions:

	 Term	 Description	 Dimension
	 debt	 Average Indebtedness: Debt funding at arm's length level as a percentage of total amount of debts of total assets.	 %
	 equity	 Average Equity: Equity funding at arm's length level as a percentage of total average equity to total assets. 	 %
	 avg.late	 Average costs of late payment: Average costs of funding of overdue receivables. 	 %
	 avg.loss	 Average loss: Average loss as a percentage of total average outstanding receivables experienced during a period of rolling 10 years; weighted by seniority 	 %
	 avg.portfolio	 Average Portfolio: Average daily balances of portfolio reduced by any cash received during a given fiscal month or fiscal year.	 currency
	 Avg.receiv	 Average Receivables: Average amount of receivables outstanding experienced during a period of 10 years,; weighted by seniority.	 currency
	 D	 Factoring Discount: Amount of money accounted to the Purchase Price of purchased Receivables	 Currency
	 dYear	 Annual Discount Rate 	 %
	 dday	 Daily Discount Rate: Based on 365 days per year	 %
	 expadmin	 Annual Administrative Expenses: Budgeted expenses to run Purchaser's business except for administering and collecting portfolio.	 currency
	 expserv	 Annual Servicing Expenses: Budgeted expenses for administering and collecting portfolio.	  
	 Iavg	 Monthly Average Interest Rate: to be determined monthly based on debt funding mix 	 %
	 past.due	 Past Due Receivables: Receivables will be considered past due if and to the extent they are not paid at the first day of the second production month after due date	 currency
	 portfolio	 Portfolio: Amount of Receivables on Purchaser's balance sheet	 currency
	 radmin	 Administrative Cost: Rate of annual Administrative Expenses as a percentage of annual Average Portfolio 	 %
	 rcr	 Credit Risk: Rate of credit losses experienced adjusted by two Standard Deviations, and cost of late payment.	 %
	 rdebt	 Cost of Debt Funding: Effective cost of debt funding for an arm's length funding mix; rdebt will be based on documentation of actual trades or bank quotes, as the case may be,
maintained by Treasury and will be calculated monthly. 	 %
	 requity	 Cost of Equity: ROE weighted by the avg. equity ratio. The appropriate leverage to apply to the portfolio will be determined dependent on level of credit risk Purchaser is exposed
to.	 %
	 rserv	 Service Cost: Rate of costs to administrate and collect the portfolio as determined by Purchaser based on budgeted expenses	 %
	 roe	 Return on Equity: Arm's length cost of equity as usually required by factoring companies.	 %
	 s	 Standard Deviation: Weighted standard deviations 	 %
	 turns	 Turnover: Average annual turnover of the Portfolio calculated by dividing the sum of annual purchases of receivables by the annual average portfolio.	 number

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  Intentionally Left Blank.
  
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