Document:

exv10w9

EXECUTION COPY

COFINA FUNDING, LLC,

as Issuer

and

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

SERIES 2005-A SUPPLEMENT

Dated as of August 10, 2005

to

BASE INDENTURE

Dated as of August 10, 2005

COFINA FUNDING, LLC

SERIES 2005-A

Cofina Variable Funding Asset-Backed Notes

 

 

          SERIES 2005-A SUPPLEMENT, dated as of August 10, 2005 (as amended, modified, restated or
supplemented from time to time in accordance with the terms hereof, this “Series
Supplement”), by and among COFINA FUNDING, LLC, a Delaware limited liability company, as issuer
(“Issuer”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee
(together with its successors in trust under the Base Indenture referred to below, the
“Trustee”) to the Base Indenture, dated as of August 10, 2005, between the Issuer and the
Trustee (as amended, modified, restated or supplemented from time to time, exclusive of Series
Supplements, the “Base Indenture”).

          Pursuant to this Series Supplement, the Issuer shall create a new Series of Notes and shall
specify the Principal Terms thereof.

PRELIMINARY STATEMENT

          WHEREAS, Section 2.2 of the Base Indenture provides, among other things, that the
Issuer and the Trustee may at any time and from time to time enter into a series supplement to the
Base Indenture for the purpose of authorizing the issuance of one or more Series of Notes.

          NOW, THEREFORE, the parties hereto agree as follows:

     SECTION 1. Designation.

          (a) There is hereby created a Series of notes to be issued in one class pursuant to the Base
Indenture and this Series Supplement, and such Series of notes shall be substantially in the form
of Exhibit A hereto, executed by or on behalf of the Issuer and authenticated by the
Trustee and designated generally Cofina Variable Funding Asset-Backed Notes, Series 2005-A (the
“Notes”). The Notes shall constitute “Warehouse Notes” (as defined in the Base Indenture).

          (b) Series 2005-A (as defined below) shall not be subordinated to any other Series.

     SECTION 2. Definitions. In the event that any term or provision contained herein
shall conflict with or be inconsistent with any provision contained in the Base Indenture, the
terms and provisions of this Series Supplement shall govern. All Article, Section or
subsection references herein mean Articles, Sections or subsections of this Series Supplement,
except as otherwise provided herein. All capitalized terms not otherwise defined herein are
defined in the Base Indenture. Each capitalized term defined herein shall relate only to the
Notes, and no other Series of Notes issued by the Issuer.

          “Accrual Period” means, with respect to each Settlement Date, the period beginning on
and including the Settlement Date in the preceding calendar month and ending on but excluding the
Settlement Date for the current calendar month, except that the first Accrual Period shall begin on
the Closing Date.

          “Additional Interest” has the meaning specified in Section 5.12.

          “Closing Date” means August 10, 2005.

 

 

          “Commitment Termination Date” means the Purchase Expiration Date (as such term is
defined in, and may be amended pursuant to, the Note Purchase Agreement.

          “Deficiency Amount” has the meaning specified in Section 5.12.

          “Fee Amount” has the meaning specified in Section 5.12.

          “Fees” means all of the amounts payable in connection with the Fee Letter (as such
term is defined in the Note Purchase Agreement).

          “Funding Agent” has the meaning set forth in the Note Purchase Agreement.

          “Increase” has the meaning specified in subsection 3.1(a).

          “Indemnified Party” shall have the meaning specified in the Note Purchase Agreement.

          “Initial Note Principal” means the aggregate initial principal amount of the Notes,
which is $138,353,278.99.

          “Issuer” means Cofina Funding, LLC, a Delaware limited liability company.

          “Legal Final Settlement Date” means the Settlement Date falling in October 2005.

          “Maximum Principal Amount” equals $150,000,000.

          “Monthly Interest” has the meaning specified in Section 5.12.

          “Monthly Period” has the meaning specified in the Base Indenture, except that the
first Monthly Period with respect to the Notes shall begin on and include the Closing Date and
shall end on and include August 31, 2005.

          “Note Principal” means the outstanding principal amount of the Notes.

          “Note Purchase Agreement” means the Note Purchase Agreement, dated as of the date
hereof, among the Issuer, the Funding Agent and the Purchasers party thereto, as amended,
supplemented or otherwise modified from time to time in accordance with the terms of the
Transaction Documents.

          “Note Rate” means, with respect to each Settlement Period, a variable rate per annum
equal to the rate determined therefor by the Funding Agent (based on any and all amounts which
constitute Series 2005-A Financing Costs (as defined in the Note Purchase Agreement) with respect
to such Settlement Period pursuant to the Note Purchase Agreement).

          “Noteholder” means with respect to any Note, the holder of record of such Note.

          “Notes” has the meaning specified in Section 1(a).

          “Notice Persons” means, for Series 2005-A, the Funding Agent.

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          “Permitted Settlement Date Withdrawal” means, with respect to the Notes for any
Settlement Date, the amount set forth in Section 5.13.

          “QIB” has the meaning specified in Section 7(c)(i).

          “Rapid Amortization Period” means the period commencing on the Rapid Amortization
Commencement Date and ending on the Series 2005-A Termination Date.

          “Rapid Amortization Commencement Date” means the earliest of (i) the Commitment
Termination Date, (ii) the date on which an Early Amortization Event occurs pursuant to
Section 10.1 of the Base Indenture or (iii) the date on which a Series Early Amortization
Event occurs pursuant to Section 10 of this Series Supplement.

          “Rating Agency” means, for Series 2005A, the Funding Agent, and for all other Series,
any nationally recognized statistical rating organization (if any) specified by the Funding Agent

          “Redemption Date” means the date on which the Notes are redeemed in full pursuant to
Section 5 or 12 hereof.

          “Required Person” means the “Funding Agent” under the Note Purchase Agreement.

          “Revolving Period” means the period from and including the Closing Date to, but not
including, the Rapid Amortization Commencement Date.

          “Rule 144A” has the meaning specified in subsection 7(c)(i).

          “Scheduled Principal Payment Amount” means (i) with respect to any Settlement Date
prior to the Commitment Termination Date, zero (0); and (ii) with respect to any Settlement Date on
or following the Commitment Termination Date, the then Note Principal.

          “Series Early Amortization Event” means each “Early Amortization Event” referred to in
Section 10.

          “Series 2005-A” means the Series of the Cofina Variable Funding Asset-Backed Notes
represented by the Notes.

          “Series 2005-A Interest Payment” means, with respect to any Settlement Date, the
Monthly Interest for such Settlement Date.

          “Series 2005-A Noteholder” means the Holder of a Note.

          “Series 2005-A Settlement Account” means the Settlement Account established as such
for the benefit of the Secured Parties of this Series 2005-A pursuant to Section 5.11
hereof and Section 5.3 of the Base Indenture.

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          “Series 2005-A Termination Date” means the Settlement Date on which the Notes, plus
all other amounts due and owing to the Series 2005-A Noteholders and the related Indemnified
Parties under the Transaction Documents are paid in full.

          “Supplemental Principal Payment Amount” means the amount of any prepayment made in
accordance with the provisions of Section 5.10 of the Indenture that is allocated to the
Series 2005-A Notes in accordance with such provision of the Indenture.

     SECTION 3. Article 3 of the Base Indenture. Article 3 shall be read in its
entirety as follows and shall be applicable only to the Notes:

ARTICLE 3

INITIAL ISSUANCE AND INCREASES AND DECREASES OF

 NOTE PRINCIPAL

     SECTION 3.1 Initial Issuance: Procedure for Increasing the Investor Interest.

          (a) Subject to satisfaction of the conditions precedent set forth in subsection (b) of
this Section 3.1, (i) on the Closing Date, the Issuer will issue the Notes in accordance
with Section 2.2 of the Base Indenture in the aggregate initial outstanding principal
amount equal to the Initial Note Principal and an aggregate face amount equal to the Maximum
Principal Amount and (ii) on any Business Day during the Revolving Period, the Issuer may increase
the Note Principal (each such increase referred to as an “Increase”) upon satisfaction of
the conditions set forth below and the conditions specified in the Note Purchase Agreement.

          (b) The Notes will be issued on the Closing Date and the Note Principal may be increased on
any Business Day during the Revolving Period pursuant to subsection (a) above, only upon
satisfaction of each of the following conditions with respect to such initial issuance and each
proposed Increase:

	 	(i)	 	The amount of each issuance or Increase shall be equal to or
greater than $250,000 (and in integral multiples of $1,000 in excess thereof);
	 
	 	(ii)	 	After giving effect to such issuance or Increase, the Note
Principal shall not exceed the Maximum Principal Amount;
	 
	 	(iii)	 	After giving effect to such issuance or Increase, no Borrowing
Base Deficiency shall exist;
	 
	 	(v)	 	There shall not exist, and such issuance or Increase and the
application of the proceeds thereof shall not result in the occurrence of, (1)
an Early Amortization Event for any Series, a Servicer Default or an Event of
Default, or (2) an event or occurrence, which, with the passing of time or the
giving of notice thereof, or both, would become an Early Amortization Event for
any Series, Servicer Default or an Event of Default;

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	 	(vi)	 	After giving effect to such issuance or Increase, not less than
85% of the Eligible Receivables are Eligible Receivables issued by Obligors
which are classified as Other Assets Especially Mentioned or Acceptable;
	 
	 	(vii)	 	After giving effect to such issuance or Increase, not more
than 5% of the Receivables by Receivables Balance have Obligors which are
classified as Doubtful or Loss;
	 
	 	(ix)	 	All required consents have been obtained and all other
conditions precedent to the making of advances under the Note Purchase
Agreement shall have been satisfied; and
	 
	 	(x)	 	There shall not have occurred, since the Closing Date, in the
reasonable judgment of the Notice Person, (A) a material adverse change in the
operations, management or financial condition of any Seller or (B) any event
which materially and adversely affects the collectibility of the Eligible
Receivables generally or the ability of the Seller to perform its obligations
under the Transaction Documents.

          (c) Upon receipt of the proceeds of such issuance or Increase by or on behalf of the Issuer,
the Issuer shall give notice to the Trustee of such receipt, and the Trustee shall, or shall cause
the Transfer Agent and Registrar to, indicate in the Note Register the amount thereof.

     SECTION 3.2 Prepayments. On any Business Day, the Issuer will have the option to
prepay, without premium, all or a portion of, the Note Principal of the Notes, in a minimum amount
of $250,000 (and integral multiples of $1,000 in excess thereof). Any such prepayment of the Note
Principal shall also include accrued interest to the date of prepayment on the principal balance
being prepaid. The Issuer may make such prepayment only from funds available to the Issuer
therefor pursuant to Section 5.4 of the Indenture. Any prepayment amounts shall be
deposited into the Series 2005-A Settlement Account and distributed by the Trustee on a pro rata
basis to each Noteholder of record at such time. Any such prepayment shall not constitute a
termination of the Revolving Period.

     SECTION 4. Principal Payments on the Notes. The principal balance of the Series
2005-A Notes shall be payable on each Settlement Date from amounts on deposit in the Series 2005-A
Settlement Account in a amount equal to (i) so long as no Early Amortization Event or Event of
Default has occurred (and has not been waived in accordance with the terms of the Base Indenture),
the sum of the Scheduled Principal Payment Amount and Supplemental Principal Payment Amount for
such Settlement Date, or (ii) if an Early Amortization Event or an Event of Default has occurred
(and has not been waived in accordance with the terms of the Base Indenture), the full Note
Principal to the extent that funds are available for such purposes in accordance with the
provisions of Section 5.14. The unpaid principal amount of each Note together with all
unpaid interest, fees, expenses, costs and other amounts payable by the Issuer to the Holders of
the Notes pursuant to the terms of the Indenture, this Series Supplement, the Note Purchase
Agreement and the other Transaction Documents shall be due and payable in full on the earlier to
occur of (x) the date on which an Event of Default shall occur and the Series 2005-

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A Notes have been accelerated in accordance with the provisions of the Indenture and (y) the
Legal Final Settlement Date.

     SECTION 5. Cleanup Call.

          (a) The Notes shall be subject to purchase by the initial Servicer at its option, in
accordance with the terms specified in subsection 13.4(a) of the Base Indenture on any
Settlement Date on or after the Settlement Date on which the Note Principal is reduced to an amount
less than or equal to 10% of the Maximum Principal Amount.

          (b) The deposit to the Series 2005-A Settlement Account required in connection with any such
purchase will be equal to the sum of (a) the Note Principal, plus (b) accrued and unpaid interest
on the Notes through the day preceding the Settlement Date on which the purchase occurs, plus (c)
any other amounts (including, without limitation, accrued and unpaid Fees) payable to the Series
2005-A Noteholders, the Indemnified Parties, the Trustee and the Custodian pursuant to the Note
Purchase Agreement and the other Transaction Documents, minus (d) the amounts, if any, on deposit
at such Settlement Date in the Series 2005-A Settlement Account for the payment of the foregoing
amounts.

     SECTION 6. Delivery and Payment for the Notes. The Trustee shall execute,
authenticate and deliver the Notes in accordance with Section 2.4 of the Base Indenture and
Section 7 below.

     SECTION 7. Form of Delivery of the Notes; Denominations; Transfer Restrictions.

          (a) The Notes shall be delivered as Registered Notes in definitive form as provided in
Sections 2.1 and 2.18 of the Base Indenture. The Notes shall initially be
registered in the name of the Funding Agent for the benefit of the Purchasers (as defined in the
Note Purchase Agreement) and shall not be transferred, sold or pledged, in whole or in part, other
than pursuant to Section 2.6 of the Base Indenture and this Section 7.

          (b) The Notes will be issuable in minimum face amount denominations of $250,000 (and in
integral multiples of $1,000 in excess thereof).

          (c) The Notes have not been registered under the Securities Act or any state securities or
“blue sky” laws. None of the Issuer, the Transfer Agent and Registrar or the Trustee is obligated
to register the Notes under the Securities Act or any “blue sky” laws or take any other action not
otherwise required under the Base Indenture or this Series Supplement to permit the transfer of any
Note without such registration. When Notes are presented to the Transfer Agent and Registrar or a
co-registrar with a request to register a transfer or to exchange them for an equal principal
amount of Notes of other authorized denominations, the Transfer Agent and Registrar shall register
the transfer or make the exchange; provided, however, that the Notes surrendered
for transfer or exchange (a) shall be duly endorsed or accompanied by a written instrument of
transfer in form satisfactory to the Issuer and the Transfer Agent and Registrar, duly executed by
the holder thereof or its attorney, duly authorized in writing and (b) shall be transferred or
exchanged in compliance with the following provisions:

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               (i) (A) if such Note is being transferred to a qualified institutional buyer (a
“QIB”) as defined in, and in accordance with, Rule 144A under the Securities Act
(“Rule 144A”), the transferor shall provide the Issuer and the Transfer Agent and
Registrar with a certification to that effect (in substantially the form of Exhibit
C hereto); or (B) if such Note is being transferred in reliance on another exemption
from the registration requirements of the Securities Act, the transferor shall provide the
Issuer and the Transfer Agent and Registrar with a certification to that effect (in
substantially the form of Exhibit C hereto) and, if requested by the Transfer Agent
and Registrar or the Issuer, an opinion of counsel in form and substance acceptable to the
Issuer and to the Transfer Agent and Registrar to the effect that such transfer is in
compliance with the Securities Act.

               (ii) each such transferee of such Note shall be deemed to have made the
acknowledgements, representations and agreements set forth below:

          (1) if such Note is being transferred in accordance with Rule 144A, it is a QIB, is
aware that the sale to it is being made in reliance on Rule 144A and it is acquiring such
Note or any interest or participation therein for its own account or for the account of
another QIB over which it exercises sole investment discretion, such QIB is aware the sale
is being made in reliance on Rule 144A, and is acquiring such Note or any interest or
participation therein for its own account or the account of another QIB;

          (2) it understands that the Notes have not been and will not be registered or qualified
under the Securities Act or any applicable state securities laws or the securities laws of
any other jurisdiction and are being offered only in a transaction not involving any public
offering within the meaning of the Securities Act, neither the Transfer Agent and Registrar
nor the Issuer nor any person representing the Issuer has made any representation or
warranty to it with respect to the Issuer or the offering or sale of any Note, it has had
access to such financial and other information concerning the Issuer, the Sellers and the
Notes as it has deemed necessary to evaluate whether to purchase any Notes, the Issuer is
not required to register or qualify the Notes, and that the Notes may be resold, pledged or
transferred only in compliance with provisions of this Section 7(c) and only (A) to
the Issuer, (B)  to a person the transferor reasonably believes is a QIB in a transaction
meeting the requirements of Rule 144A or (C) in a transaction otherwise exempt from the
registration requirements of the Securities Act and, in each case, in accordance with any
applicable securities laws of any state of the United States or any other jurisdiction and
in accordance with the restrictions set forth herein;

          (3) if it desires to offer, sell or otherwise transfer, pledge or hypothecate the Notes
as described in clause (B) or (C) of the preceding paragraph, it may,
pursuant to clause (i) above, be required to deliver a certificate and, in the case
of clause (C), may be required to deliver an opinion of counsel if the Issuer and
the Transfer Agent and Registrar so request, in each case, reasonably satisfactory in form
and substance to the Issuer and the Transfer Agent and Registrar, that an exemption from the
registration requirements of the Securities Act applies to such offer, sale, transfer or
hypothecation; and it understands that the Registrar and Transfer Agent will not be required
to accept for

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registration of transfer the Notes acquired by it, except upon presentation of, if
applicable, the certificate and, if applicable, the opinion described above;

          (4) it agrees that it will, and each subsequent holder is required to, notify any
purchaser of Notes from it of the resale restrictions referred to in clauses (2) and
(3) above, if then applicable, and understands that such notification requirement
will be satisfied, in the case only of transfers by physical delivery of Definitive Notes,
by virtue of the fact that the following legend will be placed on the Notes unless otherwise
agreed to by the Issuer:

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE
SECURITIES LAWS OF ANY OTHER JURISDICTION. THIS NOTE MAY BE RESOLD,
PLEDGED OR TRANSFERRED ONLY (1) TO THE ISSUER, (2) TO A PERSON THE
TRANSFEROR REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
(AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”))
THAT PURCHASES FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF
OTHERS) OR AS A FIDUCIARY OR AGENT FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF
RULE 144A OR (3) IN A TRANSACTION OTHERWISE EXEMPT FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER
JURISDICTION AND BASED ON AN OPINION OF COUNSEL IF THE ISSUER OR
TRANSFER AGENT AND REGISTRAR SO REQUEST, IN EACH SUCH CASE, IN
COMPLIANCE WITH THE INDENTURE AND ALL APPLICABLE SECURITIES LAWS OF
ANY STATE OF THE UNITED STATES AND ANY OTHER JURISDICTION. THE
HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY
TRANSFEREE FROM IT OF THE RESALE RESTRICTIONS SET FORTH ABOVE.

          (5) it acknowledges that the foregoing restrictions apply to holders of beneficial
interests in the Notes as well as to Holders of the Notes;

          (6) it acknowledges that the Trustee, the Issuer and their Affiliates and others will
rely upon the truth and accuracy of the foregoing acknowledgments, representations and
agreements and agrees that if any of the acknowledgments, representations or agreements
deemed to have been made by its purchase of such Notes is no longer accurate, it will
promptly notify the Issuer; and if it is acquiring any Notes for the account of one or more
QIBs, it represents that it has sole investment discretion with respect to

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each such account and that it has full power to make the foregoing acknowledgments,
representations and agreements on behalf of each such account;

          (7) with respect to any foreign purchaser claiming an exemption from United States
income or withholding tax, it represents that it has delivered to the Trustee a true and
complete Form W-8BEN or W-8ECI or applicable successor form, indicating such exemption; and

          (8) it acknowledges that either (i) it is not an employee benefit plan subject to
ERISA, a “plan” described in Section 4975 of the Code, an entity deemed to hold the assets
of any such plan or a governmental plan (as defined in Section 3(32) of ERISA) or a church
plan (as defined in Section 3(33) of ERISA for which no election has been made under Section
410(d) of the Code) subject to applicable law that is substantially similar to Section 406
of ERISA or Section 4975 of the Code or (ii) its purchase and holding of the Notes will not,
throughout the term of holding, constitute a non-exempt prohibited transaction under Section
406 of ERISA or Section 4975 of the Code (or, in the case of a governmental plan or a
non-electing church plan (as described above), any substantially similar applicable law) by
reason of the application of one or more statutory or administrative exemptions from such
prohibited transaction rules or otherwise.

               In addition, such transferee shall be responsible for providing additional information
or certification, as shall be reasonably requested by the Trustee or Issuer, to support the
truth and accuracy of the foregoing acknowledgements, representations and agreements, it
being understood that such additional information is not intended to create additional
restrictions on the transfer of the Notes. Any resale, pledge or other transfer of Notes in
violation of the transfer restrictions set forth herein shall be deemed void ab initio.

     SECTION 8. Article 5 of Base Indenture. Sections 5.1, 5.2,
5.3, 5.4, 5.5, 5.6, 5.7, 5.8, 5.9 and
5.10 of the Base Indenture shall be read in their entirety as provided in the Base
Indenture. The following provisions, however, shall constitute part of Article 5 of the Indenture
solely for purposes of Series 2005-A and shall be applicable only to the Notes:

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ARTICLE 5

SERIES 2005-A SETTLEMENT ACCOUNT AND

ALLOCATION AND APPLICATION OF AMOUNTS THEREIN

     SECTION 5.11 Series 2005-A Settlement Account. The Trustee, in accordance with
Section 5.3(d) of the Base Indenture shall establish on the Closing Date and maintain, so
long as any Series 2005-A Note is Outstanding, an account be designated as the “Series 2005-A
Settlement Account”, which account shall be held by the Trustee for the benefit of the Holders of
the Series 2005-A Notes pursuant to the Indenture and this Series Supplement. All deposits of
funds by or for the benefit of the Holders of the Series 2005-A Notes shall be accumulated in, and
withdrawn from, the Series 2005-A Settlement Account in accordance with the provisions of the
Indenture and this Series Supplement.

     SECTION 5.12 Determination of Monthly Interest. The amount of monthly interest
payable on the Notes shall be determined by the Servicer as of each Determination Date and shall be
an amount equal to the product of (i)(A) a fraction, the numerator of which is the actual number of
days in the related Accrual Period and the denominator of which is 360, times (B) the Note
Rate in effect with respect to the related Accrual Period, and (ii) the average daily outstanding
principal balance of the Notes during such Accrual Period (the “Monthly Interest”);
provided, however, that in addition to Monthly Interest, an amount equal to the sum
of (i) the amount of any unpaid Deficiency Amount, as defined below, (ii) an amount equal to the
product of (A) a fraction, the numerator of which is the actual number of days in the related
Accrual Period and the denominator of which is 360, times (B) a rate equal to 2% per annum
over the Note Rate in effect with respect to the related Accrual Period, times (C) any
Deficiency Amount, as defined below (or the portion thereof which has not theretofore been paid to
Noteholders), (iii) the amount of any unpaid Fees for the related Accrual Period as determined
pursuant to the Note Purchase Agreement (the “Fee Amount”), (iv) any Additional Amounts for
the related Accrual Period as determined pursuant to the Note Purchase Agreement and (v) following
the occurrence of a Servicer Default, Early Amortization Event or Event of Default, an amount equal
to the product of the Note Principal, a fraction, the numerator of which is the actual number of
days in the related Accrual Period and the denominator of which is 365 or 366, as applicable, and a
rate equal to the difference between the 2% per annum over the Base Rate (as defined in the Note
Purchase Agreement) in effect for such period and the Note Rate in effect for such period (such sum
being herein called the “Additional Interest”) shall also be payable by the Issuer. The
“Deficiency Amount” for any Determination Date shall be equal to the excess, if any, of (x)
the sum of the Monthly Interest and the Additional Interest as determined pursuant to the preceding
sentence for the preceding Settlement Date, over (y) the amount actually paid in respect thereof on
the preceding Settlement Date.

     SECTION 5.13 Drawing Funds from the Spread Maintenance Account. In the event that the
Monthly Servicer Report with respect to any Determination Date shall state that the funds on
deposit in the Series 2005-A Settlement Account with respect to such Determination Date will not be
sufficient to make (on the related Settlement Date) payment on such Settlement Date of the Monthly
Interest then due or to make (on the Legal Final Settlement Date) payment on such Settlement Date
of the full outstanding principal balance of the Notes (the amount of such aggregate deficiency
being a “Permitted Settlement Date Withdrawal”), then the Trustee

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shall draw on the Spread Maintenance Account and deposit into the Series 2005-A Settlement
Account an amount equal to the lesser of (x) the Permitted Settlement Date Withdrawal and (y) the
amount then on deposit in the Spread Maintenance Account; provided that any withdrawal for purposes
of paying principal shall be in an amount equal to the lesser of (x) the then outstanding Note
Principal and all accrued and unpaid Monthly Interest with respect thereto and (y) the Series
2005-A pro rata share of the amount then on deposit in the Spread Maintenance Account (calculated
based on the outstanding Note Balance as a percentage of the outstanding principal balance of the
Notes of all Series). Any such funds actually received by the Trustee shall be used solely to make
payments of the Monthly Interest or the Note Principal, as the case may be.

     SECTION 5.14 Distribution from Series 2005-A Settlement Account. On each Settlement
Date, the Trustee shall distribute funds then on deposit in the Series 2005-A Settlement Account in
accordance with the provisions of either subsection (I) or (II) of this Section 5.14.

     (I) If neither an Early Amortization Event nor an Event of Default shall have occurred and be
continuing with respect to any Series:

     (1) To each Series 2005-A Noteholder (as of the related Record Date), an amount equal
to its pro rata portion of the Series 2005-A Interest Payment for such Settlement Date;

     (2) To each Series 2005-A Noteholder (as of the related Record Date), an amount equal
to its pro rata portion of the Scheduled Principal Payment Amount then due and payable to
Series 2005-A Noteholders on such Settlement Date;

     (3) To each Series 2005-A Noteholder (as of the related Record Date), an amount equal
to its pro rata portion (if any) of the Supplemental Principal Payment Amount then due and
payable to Series 2005-A Noteholders on such Settlement Date;

     (4) To the Funding Agent, any Additional Interest and Fee Amounts then due for such
Settlement Date; and

     (5) To each 2005-A Noteholder (as of the related Record Date) and each other
Indemnified Party, pro rata, an amount equal to taxes, increased costs, breakage costs,
indemnities and other amounts then due and payable to Series 2005-A Noteholders and each
Indemnified Party pursuant to the Note Purchase Agreement.

     (II) If an Early Amortization Event shall have occurred and be continuing with respect to any
Series or an Event of Default shall have occurred and be continuing with respect to any Series:

     (1) To each Series 2005-A Noteholder (as of the related Record Date), an amount equal
to its pro rata portion of the Series 2005-A Interest Payment for such Settlement Date;

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     (2) To each Series 2005-A Noteholder (as of the related Record Date), an amount equal
to its pro rata portion of the then outstanding Note Principal until the Note Principal has
been reduced to zero;

     (3) To the Funding Agent, any Additional Interest and Fee Amounts then due for such
Settlement Date; and

     (4) To each Series 2005-A Noteholder (as of the related Record Date) and each other
Indemnified Party, pro rata, an amount equal to taxes, increased costs, breakage costs,
indemnities and other amounts then due and payable to Series 2005-A Noteholders and each
other Indemnified Party pursuant to the Note Purchase Agreement.

     SECTION 5.15 Servicer’s Failure to Make a Deposit or Payment. If the Servicer fails
to make, or give instructions to make, any payment, deposit or withdrawal required to be made or
given by the Servicer at the time specified in the Base Indenture or this Series Supplement
(including applicable grace periods), the Trustee shall make such payment, deposit or withdrawal
from the applicable account in accordance with written instructions provided by the Majority
Noteholders.

     SECTION 9. Article 6 of the Base Indenture. Article 6 of the Base Indenture shall
read in its entirety as follows and shall be applicable only to the Noteholders:

ARTICLE 6

DISTRIBUTIONS AND REPORTS

     SECTION 6.1 Distributions.

     On each Settlement Date, the Trustee shall distribute (in accordance with the Monthly Servicer
Report delivered by the Servicer on or before the related Series Transfer Date pursuant to
Section 2.09(a) of the Servicing Agreement) to each Noteholder of record on the immediately
preceding Record Date (other than as provided in Section 12.5 of the Base Indenture
respecting a final distribution), such Noteholder’s pro rata share of the amounts on deposit in the
Series 2005-A Settlement Account that are payable to the Noteholders pursuant to
Section 5.14 by wire transfer to an account designated by such Holders of the Notes at
least five Business Days prior to such Settlement Date.

     SECTION 6.2 Monthly Noteholders’ Statement.

          (a) On or before each Settlement Date, the Trustee shall make available to each Noteholder,
each Rating Agency, and each Notice Person via the Trustee’s website a statement substantially in
the form of Exhibit B hereto prepared by the Servicer and delivered to the Trustee on the
preceding Determination Date and setting forth, among other things, the following information:

     (i) the total amount distributed to holders of Notes;

     (ii) the amount of such distribution allocable to principal;

12

 

     (iii) the amount of such distribution allocable to Trustee Fees and Expenses,
Custodian fees and expenses, Monthly Interest, Deficiency Amounts, Additional
Interest and the Fee Amounts, respectively;

     (iv) the aggregate Outstanding Balance of Receivables which were Delinquent
Receivables as of the end of the preceding Monthly Period;

     (v) the aggregate Outstanding Balance of Receivables which were Defaulted
Receivables as of the end of the preceding Monthly Period;

     (vi) the Spread Maintenance Reserve Required Amount and the balance on deposit
in the Spread Maintenance Account as of the end of the day on the Settlement Date;

     (vii) outstanding Note Balance, as of the end of the day on the Settlement
Date;

     (viii) increases and decreases in the Notes during the related Settlement
Period, and the average daily balance of the Notes for the related Settlement
Period;

     (ix) the amount of the Servicing Fee for the related Settlement Period;

     (x) the Note Rate for the related Settlement Period; and

     (xi) if applicable, the date on which the Rapid Amortization Period commenced.

          (b) Annual Noteholders’ Tax Statement. On or before January 31 of each calendar year,
beginning with the calendar year 2006, the Paying Agent shall distribute to each Person who at any
time during the preceding calendar year was a Noteholder, a statement prepared by the Servicer in
accordance with Section 6.02 of the Servicing Agreement containing the information required
to be contained in the regular monthly report to Series 2005-A Noteholders, as set forth in
subclauses (i), (ii) and (iii) above, aggregated for such calendar year or
the applicable portion thereof during which such Person was a Series 2005-A Noteholder, together
with such other customary information (consistent with the treatment of the Notes as debt) as is
customary on similar transactions to enable the Series 2005-A Noteholders to prepare their tax
returns. Such obligations of the Paying Agent shall be deemed to have been satisfied to the extent
that substantially comparable information shall be provided by the Paying Agent or another party
pursuant to any requirements of the Code as from time to time in effect.

     SECTION 10. Early Amortization Events. If an “Early Amortization Event” shall occur
under the Base Indenture, then the Rapid Amortization Commencement Date shall occur without any
notice or other action on the part of any party hereto immediately upon the occurrence of such
event.

     SECTION 11. [Reserved].

13

 

     SECTION 12. Redemption Provision.

          (a) The Issuer may redeem the Notes in full on the Commitment Termination Date through a
refinancing. The Issuer shall give notice of its election to pay such Notes in accordance with the
terms of the Base Indenture and the Note Purchase Agreement prior to such redemption.

          (b) The amount required to be deposited into the Series 2005-A Settlement Account in
connection with any redemption in full shall be equal to the sum of (i) the Note Principal, plus
(ii) accrued and unpaid the interest on the Notes through the Settlement Date on which the
redemption occurs, plus (iii) any other amounts (including, without limitation, accrued and unpaid
Fees) payable by the Issuer to the Series 2005-A Noteholders, the Indemnified Parties, the Trustee
and the Custodian pursuant to the Note Purchase Agreement and the other Transaction Documents, less
(iv) the amounts, if any, on deposit at such Settlement Date in the Series 2005-A Settlement
Account for the payment of the foregoing amounts. Such deposit shall be made not later than 3:00
p.m. New York City time on the Redemption Date.

     SECTION 13. Amendments and Waiver. Any amendment, waiver or other modification to the
Base Indenture or this Series Supplement Series shall be subject to the restrictions thereon, if
applicable, in the Note Purchase Agreement.

     SECTION 14. Counterparts. This Series Supplement may be executed in any number of
counterparts, and by different parties in separate counterparts, each of which so executed shall be
deemed to be an original, but all of such counterparts shall together constitute but one and the
same instrument.

     SECTION 15. Governing Law. THIS SERIES SUPPLEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS OTHER
THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. EACH OF THE
PARTIES TO THIS SERIES SUPPLEMENT AND EACH NOTEHOLDER HEREBY AGREES TO THE NON-EXCLUSIVE
JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND ANY
APPELLATE COURT HAVING JURISDICTION TO REVIEW THE JUDGMENTS THEREOF. EACH OF THE PARTIES HERETO
AND EACH NOTEHOLDER HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS AND ANY
OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY OF THE AFOREMENTIONED COURTS AND
CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.

     SECTION 16. Waiver of Trial by Jury. To the extent permitted by applicable law, each
of the parties hereto and each of the Noteholders irrevocably waives all right of trial by jury in
any action, proceeding or counterclaim arising out of or in connection with this Series Supplement
or the Transaction Documents or any matter arising hereunder or thereunder.

14

 

     SECTION 17. No Petition. The Trustee, by entering into this Series Supplement and
each Series 2005-A Noteholder, by accepting a Note hereby covenant and agree that they will not
prior to the date which is one year and one day after payment in full of the last maturing note of
any Series and termination of the Indenture institute against the Issuer, or join in any
institution against the Issuer of, any bankruptcy proceedings under any United States Federal or
state bankruptcy or similar law in connection with any obligations relating to the Notes, the Base
Indenture, this Series Supplement or the Transaction Documents. No obligation of the Issuer
hereunder shall constitute a “claim” (as defined in Section 101(5) of the Bankruptcy Code) against
the Issuer in the events that such obligations are not paid in accordance with the priority of
payments set forth in Section 5.4(c) of the Base Indenture.

     SECTION 18. Rights of the Trustee. The rights, privileges and immunities afforded to
the Trustee under the Base Indenture shall apply hereunder as if fully set forth herein.

     SECTION 19. Third-Party Beneficiaries. This Series Supplement will inure to the
benefit of and be binding upon the parties hereto, the Custodian, the Secured Parties and their
respective successors and permitted assigns. No other Person will have any right or obligations
hereunder. The Issuer agrees to perform its obligations hereunder for the benefit of the Trustee,
as agent for the Secured Parties.

15

 

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

	 	 	 	 	 
	 	COFINA FUNDING, LLC, as Issuer

 	 
	 	By:  	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee

 	 
	 	By:  	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

Supplement to Base Indenture

 

 

EXHIBIT A

FORM OF

SERIES 2005-A NOTE

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY OTHER JURISDICTION. THIS
NOTE MAY BE RESOLD, PLEDGED OR TRANSFERRED ONLY (1) TO THE ISSUER, (2) TO A PERSON THE TRANSFEROR
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT (“RULE 144A”)) THAT PURCHASES FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF
OTHERS) OR AS A FIDUCIARY OR AGENT FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A OR (3) IN A TRANSACTION OTHERWISE EXEMPT FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE SECURITIES LAWS OF ANY STATE OF THE
UNITED STATES AND ANY OTHER JURISDICTION AND BASED ON AN OPINION OF COUNSEL IF THE ISSUER OR
TRANSFER AGENT AND REGISTRAR SO REQUEST, IN EACH SUCH CASE, IN COMPLIANCE WITH THE INDENTURE AND
ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION. THE
HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY TRANSFEREE FROM IT OF THE RESALE
RESTRICTIONS SET FORTH ABOVE.

     EACH PERSON ACQUIRING OR HOLDING THIS NOTE SHALL BE DEEMED TO (1) REPRESENT AND WARRANT FOR
THE BENEFIT OF THE ISSUER, THE SELLERS, THE SERVICER AND THE TRUSTEE THAT EITHER (A) IT IS NOT AN
EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA, A “PLAN” DESCRIBED IN SECTION 4975 OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY DEEMED TO HOLD THE ASSETS OF ANY SUCH PLAN OR A
GOVERNMENTAL PLAN (AS DEFINED IN SECTION 3(32) OF ERISA) OR A CHURCH PLAN (AS DEFINED IN SECTION
3(33) OF ERISA FOR WHICH NO ELECTION HAS BEEN MADE UNDER SECTION 410(D) OF THE CODE) SUBJECT TO
APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR
(B) ITS PURCHASE AND HOLDING OF THE NOTE WILL NOT, THROUGHOUT THE TERM OF HOLDING, CONSTITUTE A
NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT
OF 1974, AS AMENDED, OR SECTION 4975 OF THE CODE (OR, IN THE CASE OF A GOVERNMENTAL PLAN OR A
NON-ELECTING CHURCH PLAN (AS DESCRIBED ABOVE), ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW) BY REASON
OF THE APPLICATION OF ONE OR MORE STATUTORY OR ADMINISTRATIVE EXEMPTIONS FROM SUCH PROHIBITED
TRANSACTION RULES OR OTHERWISE, AND (2) AGREE THAT IT SHALL NOT SELL OR OTHERWISE TRANSFER THIS
NOTE OR ANY INTEREST THEREIN TO ANY OTHER PERSON WITHOUT ACQUIRING THE SAME REPRESENTATION AND

Supplement to Base Indenture

 

 

WARRANTY FROM SUCH OTHER PERSON AND THE SAME OBLIGATION WITH RESPECT TO SALES OR OTHER
TRANSFERS.

THE INDENTURE (AS DEFINED BELOW) CONTAINS FURTHER RESTRICTIONS ON THE TRANSFER AND RESALE OF THIS
NOTE. EACH TRANSFEREE OF THIS NOTE, BY ACCEPTANCE HEREOF, IS DEEMED TO HAVE ACCEPTED THIS NOTE,
SUBJECT TO THE FOREGOING RESTRICTIONS ON TRANSFERABILITY. IN ADDITION, EACH TRANSFEREE OF THIS
NOTE, BY ACCEPTANCE HEREOF, IS DEEMED TO HAVE MADE THE REPRESENTATIONS AND AGREEMENTS SET FORTH IN
THE INDENTURE.

BY ACCEPTANCE HEREOF, THE HOLDER OF THIS NOTE AGREES TO THE TERMS AND CONDITIONS SET FORTH IN THE
INDENTURE AND HEREIN.

Supplement to Base Indenture

 

 

			
	 	 	 
	REGISTERED	 	 
	 	 	 
	No. R-1
	 	$150,000,000

SEE REVERSE FOR CERTAIN DEFINITIONS

          THE PRINCIPAL OF THIS NOTE MAY BE INCREASED AND DECREASED AS SPECIFIED IN THE SERIES 2005-A
SUPPLEMENT AND IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING
PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

COFINA FUNDING, LLC

SERIES 2005-A COFINA VARIABLE FUNDING ASSET-BACKED NOTES

          COFINA FUNDING, LLC, a limited liability company organized and existing under the laws of the
State of Delaware (herein referred to as the “Issuer”), for value received, hereby promises
to pay Bank Hapoalim B.M., as the Funding Agent for the Purchasers party to the Note Purchase
Agreement, or registered assigns, the principal sum of ONE HUNDRED FIFTY MILLION DOLLARS (U.S.
$150,000,000), or if less is due in whole or in part, the unpaid principal amount of all
outstanding amounts borrowed by the Issuer when due as shown on the reverse hereof or an attachment
hereto and recorded in the Note Register by the Transfer Agent and Registrar, payable on each
Settlement Date in the amounts and at the times specified in the Series 2005-A Supplement, dated as
of August 10, 2005 (as amended, supplemented or otherwise modified from time to time, the
“Series 2005-A Supplement”), between the Issuer and the Trustee to the Base Indenture;
provided, however, that the entire unpaid principal amount of this Note shall be
due and payable on the Legal Final Settlement Date (as defined in the Series 2005-A Supplement).
The Issuer will pay interest on this Note on each Settlement Date at the Note Rate (as defined in
the Series 2005-A Supplement) until the principal of this Note is paid or made available for
payment, on the average daily outstanding principal balance of this Note during the related
Settlement Period (as defined in the Series 2005-A Supplement). Interest will be computed on the
basis set forth in the Indenture. Such principal of and interest on this Note shall be paid in the
manner specified on the reverse hereof.

          The principal of and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private
debts.

          Issuer hereby irrevocably authorizes the Funding Agent to enter on the reverse hereof or on an
attachment hereto the date and amount of each borrowing and principal payment under and in
accordance with the Indenture. Issuer agrees that this Note, upon each such entry being duly made,
shall evidence the indebtedness of Issuer with the same force and effect as if set forth in a
separate Note executed by Issuer; provided that such entry is recorded by the Transfer
Agent and Registrar in the Note Register.

Supplement to Base Indenture

 

 

          Reference is made to the further provisions of this Note set forth on the reverse hereof and
to the Indenture, which shall have the same effect as though fully set forth on the face of this
Note.

          Unless the certificate of authentication hereon has been executed by the Trustee whose name
appears below by manual signature, this Note shall not be entitled to any benefit under the
Indenture referred to on the reverse hereof, or be valid or obligatory for any purpose.

Supplement to Base Indenture

 

 

          IN WITNESS WHEREOF, the Issuer, has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer as of the date set forth below.

	 	 	 	 	 
	 	COFINA FUNDING, LLC

 	 
	 	By:  	 	 
	 	Authorized Officer 	 
	 	 	 	 
	 

Date:

CERTIFICATE OF AUTHENTICATION

          This is one of the Notes referred to in the within mentioned Series 2005-A Supplement.

	 	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION,

not in its individual capacity, but solely as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Officer	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 

Supplement to Base Indenture

 

 

[REVERSE OF NOTE]

          This Note is one of a duly authorized issue of Notes of the Issuer, designated as its Series
2005-A Cofina Variable Funding Asset-Backed Notes (herein called the “Notes”), all issued
under the Series 2005-A Supplement to the Base Indenture dated as of August 10, 2005 (such Base
Indenture, as supplemented by the Series 2005-A Supplement and supplements relating to other series
of notes, as supplemented or amended, is herein called the “Indenture”), between the Issuer
and U.S. BANK NATIONAL ASSOCIATION, as trustee (the “Trustee”, which term includes any
successor Trustee under the Indenture), to which Indenture reference is hereby made for a statement
of the respective rights and obligations thereunder of the Issuer, the Trustee and the Holders of
the Notes. The Notes are subject to all terms of the Indenture. All terms used in this Note that
are defined in the Indenture shall have the meanings assigned to them in or pursuant to the
Indenture.

          The Note is one of a Series of Notes which are and will be equally and ratably secured by the
collateral pledged as security therefor as and to the extent provided in the Indenture.

          Principal of the Notes will be payable on each Settlement Date as set forth in the Indenture.

          All principal payments on the Notes shall be made pro rata to the Noteholders
entitled thereto.

          Subject to certain limitations set forth in the Indenture, payments of interest on this Note
due and payable on each Settlement Date, together with the installment of principal, if any, to the
extent not in full payment of this Note, shall be made by wire transfer in immediately available
funds to the Person whose name appears as the Holder of this Note on the Note Register as of the
close of business on each Record Date without requiring that this Note be submitted for notation of
payment. Any reduction in the principal amount of this Note effected by any payments made on any
Settlement Date or date of prepayment shall be binding upon all future Holders of this Note and of
any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof,
whether or not noted hereon.

          As provided in the Indenture and subject to certain limitations set forth therein, the
transfer of this Note may be registered on the Note Register upon surrender of this Note for
registration of transfer at the office or agency designated by the Issuer pursuant to the Base
Indenture, (i) duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Issuer and the Trustee duly executed by the Holder hereof or its attorney, duly
authorized in writing, and (ii) accompanied by such other documents as the Trustee may require, and
thereupon one or more new Notes of authorized denominations and in the same aggregate principal
amount will be issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Note, but the transferor may be
required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any such registration of transfer or exchange.

Supplement to Base Indenture

 

 

          Each Noteholder, by acceptance of a Note, covenants and agrees that by accepting the benefits
of the Indenture that such Noteholder will not prior to the date which is one year and one day
after the payment in full of the last maturing note of any Series and the termination of the
Indenture institute against the Issuer or join in any institution against the Issuer of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings, under any United Stated Federal or state bankruptcy or similar law in connection with
any obligations relating to the Notes, the Indenture or the Transaction Documents.

          Each Noteholder, by acceptance of a Note, covenants and agrees that by accepting the benefits
of the Indenture that such Noteholder will treat such Note as indebtedness for all Federal, state
and local income and franchise tax purposes.

          Prior to the due presentment for registration of transfer of this Note, the Issuer, the
Trustee and any agent of the Issuer or the Trustee may treat the Person in whose name this Note (as
of the day of determination or as of such other date as may be specified in the Indenture) is
registered as the owner hereof for all purposes, whether or not this Note be overdue, and none of
the Issuer, the Trustee or any such agent shall be affected by notice to the contrary.

          The Indenture permits the amendments thereof and modifications of the rights and obligations
of the Issuer and the rights of the Holders of the Notes under the Indenture and waivers of
compliance by the Issuer with provisions of the Indenture as provided in the Indenture. Any such
amendment, modification or waiver shall be conclusive and binding upon the Holder of this Note and
upon all future Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is
made upon this Note.

          As provided in the Indenture, no recourse may be taken, directly or indirectly, with respect
to the obligations of the Issuer under the Indenture, including this Note, against any Seller, the
Servicer, the Trustee or any partner, owner, incorporator, beneficiary, beneficial owner, agent,
officer, director, employee, shareholder or agent of the Issuer, any Seller, the Servicer or the
Trustee except as any such Person may have expressly agreed.

          The term “Issuer” as used in this Note includes any successor to the Issuer under the
Base Indenture.

          The Issuer is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Trustee and the Holders of Notes under the Indenture.

          The Notes are issuable only in registered form as provided in the Indenture in denominations
as provided in the Indenture, subject to certain limitations therein set forth.

          This Note and the Indenture shall be construed in accordance with the laws of the State of New
York (without reference to its conflict of law provisions other than Section 5-1401 of the New York
General Obligations Law), and the obligations, rights and remedies of the parties hereunder and
thereunder shall be determined in accordance with such laws.

Supplement to Base Indenture

 

 

          No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Note.

Supplement to Base Indenture

 

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

     FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto                                                        
     

(name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
                    , attorney, to transfer said Note on the books kept for registration thereof, with full
power of substitution in the premises.

	 	 	 	 	 
	Dated:
	 	 	 	1
	 

	 	 
	 	 
	 

	 	 	 	Signature Guaranteed:  

 

 

 

			
	1	 	NOTE: The signature to this assignment must correspond
with the name of the registered owner as it appears on the face of the within
Note in every particular, without alteration, enlargement or any change
whatsoever.

Supplement to Base Indenture

 

 

The following are borrowings and payments made under this Note of the Issuer
dated                     :

	 	 	 	 	 	 	 	 	 
	Loan	 	Amount	 	Date	 	Amount Paid
	Date	 	Borrowed	 	Prin. Paid	 	Principal	 	Interest
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 

Supplement to Base Indenture

 

 

EXHIBIT B

FORM OF MONTHLY NOTEHOLDERS’ STATEMENT

Supplement to Base Indenture

 

 

COFINA FUNDING LLC

MONTHLY NOTEHOLDERS’ STATEMENT

Reporting Date:

Statement Date:

Information provided in the Supplement Base Indenture Article 6

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Number	 	 	Amount	 	 	Percent	 
	 	 	 
	1. Total amount distributed to holders of Notes
	 	 	 	 	 	$	2,210,000.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	2. Amounts of distribution allocable to:
	 	 	 	 	 	 	 	 	 	 	 	 
	Principal
	 	 	 	 	 	$	500,000.00	 	 	 	 	 
	Trustee Fees and Expenses
	 	 	 	 	 	$	1,500,000.00	 	 	 	 	 
	Monthly Interest
	 	 	 	 	 	$	—	 	 	 	 	 
	Deficiency Amounts
	 	 	 	 	 	$	—	 	 	 	 	 
	Additional Interest
	 	 	 	 	 	$	—	 	 	 	 	 
	Fee Amount
	 	 	 	 	 	$	210,000.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Total	 	$	2,210,000.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	3. Aggregate outstanding balance of delinquent
receivables as of [prior month end]
	 	 	 	 	 	$	50,000.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	4. Aggregate outstanding balance of defaulted
receivables as of [Prior month end]
	 	 	 	 	 	$	50,000.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	5. (i) Spread Maintenance Reserve Required Amount
	 	 	 	 	 	$	1,000,000.00	 	 	 	 	 
	(ii) Spread Maintenance Account Balance at end of
day on [settlement date]
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	6. Total outstanding note balance at end of day on
[settlement date]
	 	 	 	 	 	$	1,000,000.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	7. Note Activity during [settlement period]:
	 	 	 	 	 	 	 	 	 	 	 	 
	Increases in Notes
	 	 	 	 	 	$	1,000,000.00	 	 	 	 	 
	Decreases in Notes
	 	 	 	 	 	$	1,000,000.00	 	 	 	 	 
	Average daily balance of Notes
	 	 	 	 	 	$	1,000,000.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	8. Servicing fee for [settlement period]
	 	 	 	 	 	$	1,000,000.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	9. Note rate for [settlement period]
	 	 	 	 	 	$	1,000,000.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	10. Date on which rapid amortization period commenced
	 	 	 	 	 	[Date]	 	 	 	 

Supplement to Base Indenture

 

EXHIBIT C

FORM OF TRANSFER CERTIFICATE

CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR REGISTRATION OF TRANSFER OF DEFINITIVE SECURITIES

			
	To:	 	U.S. Bank National Association, as Trustee

60 Livingston Avenue

St. Paul, MN 55107

			
	Re:	 	Cofina Funding, LLC — Cofina Variable Funding Asset-Backed Notes

     This Certificate relates to $                             principal amount of Series 2005-A Cofina Variable
Funding Asset-Backed Notes held in definitive form by                                     
(the “Transferor”) issued pursuant to the Base Indenture dated as of August 10, 2005
between Cofina Funding, LLC, as Issuer, and U.S. Bank National Association, as Trustee, as
supplemented by the Series 2005-A Supplement dated as of August 10, 2005 (the “Series
Supplement”) (as amended, supplemented or otherwise modified from time to time, the
“Indenture”). Capitalized terms used herein and not otherwise defined, shall have the
meanings given thereto in the Indenture.

     The Transferor (i) has requested the Trustee by written order to exchange or register the
transfer of a Note or Notes and (ii) has reviewed the transfer restrictions set forth in Section
7(c) of the Series Supplement and hereby makes the acknowledgments, representations and agreements
set forth in Section 7(c)(ii) of the Series Supplement.

     In connection with such request and in respect of each such Note, the Transferor does hereby
certify as follows:

               o Such Note is being transferred to a qualified institutional buyer (for its own account and not
for the account of others) or to a fiduciary or agent for the account of a qualified institutional
buyer (as defined in Rule 144A under the Securities Act of 1933, as amended (the “Securities
Act”)) in reliance on Rule 144A.

               o Such Note is being transferred in reliance on and in compliance with an exemption from the
registration requirements of the Securities Act, other than Rule 144A and in compliance with other
applicable state and federal securities laws and, if requested by the Issuer or the Transfer Agent
and Registrar, an opinion of counsel is being furnished simultaneously with the delivery of this
Certificate as required under Section 7(c)(i) of the Series Supplement.

	 	 	 	 	 
	 	[INSERT NAME OF TRANSFEROR]

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

Date:

Supplement to Base Indenture

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	PRELIMINARY STATEMENT
	 	 	1	 
	SECTION 1. Designation
	 	 	1	 
	SECTION 2. Definitions
	 	 	1	 
	SECTION 3. Article 3 of the Base Indenture
	 	 	4	 
	SECTION 4. Principal Payments on the Notes
	 	 	5	 
	SECTION 5. Cleanup Call
	 	 	6	 
	SECTION 6. Delivery and Payment for the Notes
	 	 	6	 
	SECTION 7. Form of Delivery of the Notes; Denominations; Transfer Restrictions
	 	 	6	 
	SECTION 8. Article 5 of Base Indenture
	 	 	9	 
	SECTION 9. Article 6 of the Base Indenture
	 	 	12	 
	SECTION 10. Early Amortization Events
	 	 	13	 
	SECTION 11. [Reserved]
	 	 	13	 
	SECTION 12. Redemption Provision
	 	 	14	 
	SECTION 13. Amendments and Waiver
	 	 	14	 
	SECTION 14. Counterparts
	 	 	14	 
	SECTION 15. Governing Law
	 	 	14	 
	SECTION 16. Waiver of Trial by Jury
	 	 	14	 
	SECTION 17. No Petition
	 	 	15	 
	SECTION 18. Rights of the Trustee
	 	 	15	 
	SECTION 19. Third-Party Beneficiaries
	 	 	15	 
	 
	 	 	 	 
	EXHIBIT A            Form of Note
	 	 	 	 
	EXHIBIT B            Form of Monthly Noteholders’ Statement
	 	 	 	 
	EXHIBIT C            Form of Transfer Certificate
	 	 	 	 

-i-exv10w10

EXECUTION COPY

NOTE PURCHASE AGREEMENT

among

COFINA FUNDING, LLC,

as Issuer,

BANK HAPOALIM B.M.,

as Funding Agent for the Purchasers and as the Swingline Purchaser,

and

THE FINANCIAL INSTITUTIONS FROM TIME TO TIME PARTIES HERETO,

as Committed Purchasers

dated as of August 10, 2005

 

 

     NOTE PURCHASE AGREEMENT (“Note Purchase Agreement”) dated as of August 10, 2005, among
COFINA FUNDING, LLC (the “Issuer”), BANK HAPOALIM B.M., as Funding Agent (the “Funding
Agent”) and as the Swingline Purchaser (the “Swingline Purchaser”) and the Committed
Purchasers from time to time party hereto.

     The parties hereto agree as follows:

RECITALS

     WHEREAS, the Issuer will issue the variable funding notes pursuant to a Base Indenture, dated
as of the date hereof (as amended, supplemented or otherwise modified from time to time, the
“Base Indenture”), between the Issuer and U.S. Bank National Association, as trustee (in
such capacity, together with its successors and assigns in such capacity, the “Trustee”),
as supplemented by the Series 2005-A Supplement, dated as of the date hereof, between the Issuer
and the Trustee (as amended, supplemented or otherwise modified from time to time, the “Series
Supplement,” and together with the Base Indenture, the “Indenture”); and

     WHEREAS, the Purchasers desire to acquire the variable funding notes and make advances from
time to time hereunder.

     NOW, THEREFORE, for full and fair consideration, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

          SECTION 1.01 Certain Defined Terms. Capitalized terms used herein without definition
shall have the meanings set forth in the Indenture. Additionally, the following terms shall have
the following meanings:

          “Accrual Period” means, with respect to any Settlement Date, the period from and
including the prior Settlement Date (or the Closing Date in the case of the initial Accrual Period)
to but excluding such Settlement Date.

          “Additional Amounts” means all amounts owed by the Issuer pursuant to
Section 2.11 and Article VIII, plus Breakage Amounts.

          “Affected Party” has the meaning specified in Section 8.02.

          “Aggregate Purchaser Funded Amount” means, on any date of determination, an amount
equal to (a) the Initial Purchase Price, plus (b) the aggregate amount of all Increases
made prior to such date of determination, minus (c) the aggregate amount of principal
payments in respect of the VFN made to and received by or on behalf of the Purchasers prior to such
date.

          “Applicable Margin” shall have the meaning specified in the Fee Letter.

 

 

          “Assignment and Acceptance” means an assignment and acceptance agreement entered into
by a Purchaser, a permitted assignee thereof and the Funding Agent pursuant to which such assignee
may become a party to this Note Purchase Agreement.

          “Base Rate” shall mean, with respect to any Funding Tranche funded or maintained by
any Purchaser other than by reference to the LIBOR Rate, a rate per annum equal to the sum of (x)
the greater of (i) the prime rate of interest announced by the Funding Agent from time to time,
changing when and as said prime rate changes (such rate not necessarily being the lowest or best
rate charged by the Funding Agent) and (ii) the rate equal to the weighted average of the rates on
overnight federal funds transactions with members of the Federal Reserve System arranged by federal
funds brokers, as published for such day (or, if such day is not a Business Day, for the next
preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average of the quotations for such day for such
transactions received by the Funding Agent from three (3) federal funds brokers of recognized
standing selected by it and (y) the Applicable Margin.

          “Breakage Amount” has the meaning specified in Section 2.08.

          “Closing” has the meaning specified in Section 3.01.

          “Closing Date” has the meaning specified in Section 3.01.

          “Cofina Entity” means the Issuer, any Seller, the Servicer and any other Person party
to the Transaction Documents that is an Affiliate of the Issuer, any Seller or Cofina.

          “Committed Purchasers” means Bank Hapoalim B.M. and each of its assigns (with respect
to its commitment to make Increases) that shall become a party to this Note Purchase Agreement
pursuant to Section 10.04.

          “Commitment” means, with respect to any Committed Purchaser, an amount equal to such
Purchaser’s Purchaser Percentage multiplied by the Maximum Funded Amount.

          “Eurodollar Rate” shall mean, with respect to any Funding Tranche funded or maintained
by any Purchaser, by reference to the LIBOR Rate, the Applicable Margin plus a rate per annum equal
to the sum (rounded upwards, if necessary, to the next higher 1/100 of 1%) of (i) the rate obtained
by dividing (A) the applicable LIBOR Rate by (B) a percentage equal to 100% minus the
reserve percentage used for determining the maximum reserve requirement as specified in Regulation
D (including, without limitation, any marginal, emergency, supplemental, special or other reserves)
that is applicable to the Funding Agent during the related Fixed Period in respect of eurocurrency
or eurodollar funding, lending or liabilities (or, if more than one percentage shall be so
applicable, the daily average of such percentage for those days in such Fixed Period during which
any such percentage shall be applicable) plus (ii) the then daily net annual assessment
rate (rounded upwards, if necessary, to the nearest 1/100 of 1%) as estimated by the Funding Agent
for determining the current annual assessment payable by the Funding Agent to the Federal Deposit
Insurance Corporation in respect of eurocurrency or eurodollar funding, lending or liabilities.

2

 

          “Federal Bankruptcy Code” means the bankruptcy code of the United States of America
codified in Title 11 of the United States Code.

          “Federal Reserve Board” means the Board of Governors of the Federal Reserve System, or
any entity succeeding to any of its principal functions.

          “Fee Letter” means the letter or letters dated as of the Closing Date between the
Issuer and the Funding Agent setting forth certain fees payable by the Issuer in connection with
the purchase of the VFN by the Funding Agent for the benefit of the Purchasers.

          “Fixed Period” means, (i) with respect to a new Funding Tranche, a period beginning on
and including the date of funding and ending on and excluding the immediately succeeding Settlement
Date (or such other date requested by the Issuer (or the Servicer on the behalf) and agreed to by
the applicable Purchaser) and (ii) with respect to any existing Funding Tranche (to the extent not
paid in full on a Settlement Date), a period beginning on and including such Settlement Date and
ending on and excluding the immediately succeeding Settlement Date (or such other date requested by
the Issuer (or the Servicer on the behalf) and agreed to by the applicable Purchaser);
provided, that

     (i) any Fixed Period with respect to any Funding Tranche which would otherwise
end on a day which is not a Business Day shall be extended to the next succeeding
Business Day; provided, however, if interest in respect of such
Fixed Period is computed by reference to the Eurodollar Rate, and such Fixed Period
would otherwise end on a day which is not a Business Day, and there is no subsequent
Business Day in the same calendar month as such day, such Fixed Period shall end on
the next preceding Business Day; and

     (ii) any Fixed Period will not be for a term of more than 31 days.

          “Funding Agent” means Bank Hapoalim B.M., in its capacity as Funding Agent for the
Purchasers.

          “Funding Tranche” means one or more portions of the Aggregate Purchaser Funded Amount
used to fund or maintain the VFN that accrue interest by reference to different interest rates.

          “Governmental Actions” means any and all consents, approvals, permits, orders,
authorizations, waivers, exceptions, variances, exemptions or licenses of, or registrations,
declarations or filings with, any Official Body required under any Governmental Rules.

          “Governmental Rules” means any and all laws, statutes, codes, rules, regulations,
ordinances, orders, writs, decrees and injunctions of any Official Body and any and all legally
binding conditions, standards, prohibitions, requirements and judgments of any Official Body.

          “Guaranty Agreement” means that certain Guaranty, dated the date hereof, by Cenex
Finance Association, Inc. in favor of the Funding Agent on behalf of the Purchasers, the Trustee
and the Secured Parties.

3

 

          “Increase” shall have the meaning assigned to such term in the Series Supplement.

          “Increase Amount” means the amount requested by the Issuer to be funded by the
Purchasers on an Increase Date.

          “Increase Date” means the date on which an Increase occurs.

          “Indemnified Party” means any Purchaser, each entity providing credit or liquidity
support to any Purchaser in connection with the VFN, the Funding Agent or any of their officers,
directors, employees, agents, representatives, assignees or Affiliates.

          “Initial Purchase Price” has the meaning specified in Section 2.02.

          “Issuer Indemnified Amounts” has the meaning specified in Section 8.01(a).

          “LIBOR Rate” shall mean, with respect to any Funding Tranche, the rate at which
deposits in dollars are offered to the Funding Agent, in the London interbank market at
approximately 11:00 A.M. (London time) two (2) Business Days before the first day of the related
Fixed Period in an amount approximately equal to the applicable Funding Tranche to which the
Eurodollar Rate is to apply and for a period of time approximately equal to the applicable Fixed
Period, as determined by the Funding Agent in its reasonable discretion.

          “Maximum Funded Amount” means $150,000,000.

          “Notice of Increase” means a written notice of an Increase in the form of
Exhibit A.

          “Purchase Expiration Date” means the date which is 60 days following the Initial
Closing Date (as such date may be extended from time to time pursuant to Section 2.04).

          “Purchaser Percentage” of any Committed Purchaser means (a) the percentage set forth
on the signature page to this Note Purchase Agreement as changed by each Assignment and Acceptance
entered into with an assignor or assignee, as the case may be, or (b) with respect to a Committed
Purchaser that has entered into an Assignment and Acceptance, the percentage set forth therein as
such Purchaser’s Purchaser Percentage, or such percentage as changed by each Assignment and
Acceptance entered into between such Committed Purchaser and an assignor or assignee.

          “Purchasers” means the Swingline Purchaser and the Committed Purchasers.

          “Reduction” has the meaning specified in Section 2.05.

          “Required VFN Series Holders” means the “Committed Purchasers” under all VFN Series
whose aggregate commitment amounts under each such series equals at least 662/3% of the aggregate of
the commitment amounts under all of the VFN Series.

          “Swingline Facility Limit” means $150,000,000.

4

 

          “Swingline Purchaser” means Bank Hapoalim B.M.

          “Transfer Supplement” has the meaning specified in Section 10.4(b).

          “Variable Noteholders” means each holder of a variable funding note relating to any
VFN Series issued from time to time pursuant to the terms of the Indenture.

          “VFN” means the Cofina Variable Funding Asset-Backed Note Series 2005-A in the maximum
aggregate principal amount of $150,000,000 to be issued by the Issuer pursuant to the Indenture in
the name of the Funding Agent on behalf of the Purchasers.

          “VFN Financing Costs” or “Series 2005-A Financing Costs” means, with respect to any
Accrual Period, the VFN Interest Component for such Accrual Period.

          “VFN Interest Component” means, with respect to any Accrual Period, the result
obtained by multiplying:

     (x) the weighted average of the rates applicable to all Funding Tranches
outstanding during all or part of such Accrual Period (determined as of each day in
such Accrual Period but estimated by the Funding Agent for the period from the
Determination Date related to the applicable Settlement Date through such Settlement
Date, with any adjustments to be made with respect to the VFN Interest Component for
the next Accrual Period), each such rate being a rate per annum
(expressed as a percentage and an interest yield equivalent and calculated on the
basis of a 360-day year and the actual days elapsed) equal to the Eurodollar Rate or
Base Rate, as applicable with respect to such Funding Tranche (as determined in the
sole discretion of the Funding Agent); provided, however, that
interest for any Funding Tranche shall not be considered paid by any distribution to
the extent that all or a portion of such distribution is rescinded or must otherwise
be returned for any reason; times

     (y) the average daily Aggregate Purchaser Funded Amount for such Accrual
Period; times

     (z) a fraction, the numerator of which is the number of days in such Accrual
Period and the denominator of which is 360 (or, if such VFN Interest Component is
calculated by reference to the Base Rate, 365 or 366, as applicable).

          SECTION 1.02 Other Definitional Provisions. (a) Capitalized terms used but not
defined herein shall have the meanings given to such terms in the Indenture. All terms defined in
this Note Purchase Agreement shall have the meanings given herein when used in any certificate or
other document made or delivered pursuant hereto unless otherwise defined therein.

          (b) As used herein and in any certificate or other document made or delivered pursuant hereto
or thereto, accounting terms not defined in Section 1.01, and accounting terms partially
defined in Section 1.01 to the extent not defined, shall have the respective meanings given
to them under GAAP. To the extent that the definitions of accounting terms herein are

5

 

inconsistent with the meanings of such terms under generally accepted accounting principles,
the definitions contained herein shall control.

          (c) The words “hereof,” “herein” and “hereunder” and words of similar import when used in this
Note Purchase Agreement shall refer to this Note Purchase Agreement as a whole and not to any
particular provision of this Note Purchase Agreement; and Section, subsection, Schedule and Exhibit
references contained in this Note Purchase Agreement are references to Sections, subsections, the
Schedules and Exhibits in or to this Note Purchase Agreement unless otherwise specified.

ARTICLE II

PURCHASE AND SALE

          SECTION 2.01 Purchase and Sale of the VFN. On the terms and subject to the conditions
set forth in this Note Purchase Agreement, and in reliance on the covenants, representations,
warranties and agreements herein set forth, the Issuer hereby offers to sell to the Funding Agent,
on behalf of the Purchasers, and the Funding Agent shall, on behalf of the Committed Purchasers,
purchase at the Closing the VFN in an initial outstanding principal amount equal to the Initial
Note Principal.

          SECTION 2.02 Initial Purchase Price. The VFN is to be purchased at a price (the
“Initial Purchase Price”) equal to 100% of the Initial Note Principal.

          SECTION 2.03 Increases. (a) Subject to the terms and conditions of this Note
Purchase Agreement and the Series Supplement, from time to time prior to the Purchase Expiration
Date upon receipt by the Trustee and the Funding Agent of a Notice of Increase, each Committed
Purchaser (or, pursuant to the last sentence of the Section 2.03(a), the Swingline
Purchaser) severally agrees to fund its respective Purchaser Percentages of such Increase (or, in
the case of the Swingline Purchaser, the entire Increase); provided, however, that
no Committed Purchaser shall be required to fund a portion of any Increase if, after giving effect
thereto, the portion of the Aggregate Purchaser Funded Amount funded by such Committed Purchaser
hereunder plus the aggregate amount funded by such Committed Purchaser as a Liquidity Purchaser
under the Asset Purchase Agreement would exceed its Purchaser Percentage times the Maximum Funded
Amount; and provided, further, that the Swingline Purchaser shall not be required
to fund any Increase if, after giving effect thereto, the aggregate amount funded by the Swingline
Purchaser would exceed the Swingline Facility Limit. Each Increase requested later than 2:00
p.m. (New York time) one (1) Business Day prior to the proposed date of such Increase shall be
deemed to be both (A) a request for funding from the Swingline Purchaser on the specified date of
funding and (B) a request for an Increase from the Committed Purchasers on the second
(2nd) Business Day following the date of the Increase funded by the Swingline Purchaser
(the proceeds of such Increase to be used solely to repay the Increase funded by the Swingline
Purchaser).

          (b) Each Increase hereunder shall be subject to the further conditions precedent that:

6

 

          (i) The Funding Agent and the applicable Notice Persons shall have received copies of
the Monthly Noteholders’ Statement most recently required to have been delivered under the
Indenture;

          (ii) Each of the representations and warranties of each Cofina Entity made in the
Transaction Documents to which it is a party shall be true and correct in all material
respects as of the applicable Increase Date (except to the extent they expressly relate to
an earlier or later time);

          (iii) Each Cofina Entity shall be in compliance in all material respects with all of
its respective covenants contained in the Transaction Documents to which it is a party;

          (iv) No Early Amortization Event, Potential Early Amortization Event, Default, Event of
Default or Servicer Default shall have occurred and be continuing;

          (v) The Purchase Expiration Date shall not have occurred;

          (vi) After giving effect to such Increase, no Borrowing Base Deficiency shall exist;

          (vii) The Funding Agent and the applicable Notice Persons shall have received a
completed Notice of Increase with respect to such proposed Increase, not later than 2:00
p.m. (New York time) on the proposed date of such Increase;

          (c) Each Increase of the VFN shall be requested in an aggregate principal amount of $250,000
and integral multiples of $1,000 in excess thereof; provided, that an Increase may be
requested in the entire remaining Maximum Funded Amount.

          (d) The purchase price of each Increase shall be equal to 100% of the Increase Amount, and
shall be paid not later than 3:00 p.m. New York City time on the Increase Date by wire transfer of
immediately available funds to such account as may from time to time be specified by the Issuer in
a notice to the Funding Agent and the applicable Notice Persons (or to the Swingline Purchaser, in
the case of an Increase deemed requested from the other Purchasers pursuant to the last sentence of
Section 2.03(a)).

          (e) All conditions set forth in Section 3.1(b) of the Series Supplement, to the extent
applicable, shall have been satisfied at such time.

          (f) No condition to funding shall be applicable to an Increase made solely to reimburse the
Swingline Purchaser pursuant to the last sentence of Section 2.03(a).

     Each “Increase” with respect to all VFN Series shall be allocated to each respective VFN
Series as instructed by the Issuer; provided, that (i) the Issuer shall not (unless
necessary in order to comply with the requirements of clause (ii) of this paragraph)
disproportionately allocate Increases to the same VFN Series for two or more consecutive Increases
and (ii) shall at all times use its reasonable best efforts to allocate Increases to the respective
VFN Series so that the aggregate of the “Aggregate Purchaser Funded Amounts” under (and as defined
in) each VFN

7

 

Series is at all times ratably allocated among each such VFN Series according to their
respective Maximum Funded Amounts (as defined in each such series).

          SECTION 2.04 Extension of Purchase Expiration Date. The Issuer may advise the Funding
Agent in writing of its desire to extend the Purchase Expiration Date for an additional period.
The Funding Agent shall notify the Issuer in writing, within 5 days after its receipt of such
request by the Issuer, whether the Purchasers or any of them agree to such extension (it being
understood that the Purchasers may accept or decline such a request in their sole discretion and on
such terms as they may elect and, if the Purchasers so agree, the Issuer, the Funding Agent and the
Purchasers shall enter into such documents as the Purchasers may deem necessary or appropriate to
reflect such extension, and all reasonable costs and expenses incurred by the Purchasers and the
Funding Agent in connection therewith (including reasonable attorneys’ fees and expenses) shall be
paid by the Issuer); it being understood, that the failure of the Funding Agent to so notify the
Issuer as set forth above shall not be deemed to be a consent to such request for extension.

          SECTION 2.05 Reduction of Maximum Funded Amount. On any Settlement Date prior to the
Rapid Amortization Commencement Date, upon the written request of the Issuer, the Maximum Funded
Amounts (as defined for each VFN Series) may be permanently reduced (a “Reduction”), on a
ratable basis with respect to each VFN Series, by the Issuer; provided that the Issuer
shall have given each applicable Funding Agent irrevocable written notice (effective upon receipt)
of the amount of such Reduction prior to 10:00 a.m., New York time on a Business Day that is at
least thirty (30) days prior to such Reduction; provided, further, that any such
Reduction shall be in an amount equal to $10,000,000, in the aggregate for all VFN Series or
integral multiples of $5,000,000 in excess thereof; and provided, further, that no
Reduction may cause the aggregate of the “Maximum Funded Amounts” under all VFN Series to be lower
than $100,000,000.

          SECTION 2.06 Calculation of Monthly Interest. (a) On the Business Day prior to each
Determination Date, the Funding Agent shall calculate, for the applicable Accrual Period, the
aggregate Monthly Interest for each Funding Tranche.

          (b) The Issuer agrees to pay, and the Issuer agrees to instruct the Servicer and the Trustee
to pay, all amounts payable by it with respect to the VFN, this Note Purchase Agreement and the
Series Supplement to the account designated by the applicable Purchaser. All such amounts shall be
paid no later than 12:00 noon, New York City time, on the day when due as determined in accordance
with this Note Purchase Agreement, the Indenture and the other Transaction Documents, in Dollars in
immediately available funds.

          SECTION 2.07 Benefits of Indenture. The Issuer hereby acknowledges and confirms that
each representation, warranty, covenant and agreement made pursuant to the Indenture by the Issuer
to the Trustee is (unless such representation, warranty, covenant or agreement specifically states
otherwise) also made herein for the benefit and security of the Purchasers and the Funding Agent.

          SECTION 2.08 Broken Funding. In the event of (i) the payment of any principal of any
Funding Tranche (other than a Funding Tranche on which the interest is computed by

8

 

reference to the Base Rate) other than on the last day of the Fixed Period applicable thereto
(including as a result of the occurrence of the Rapid Amortization Commencement Date or an optional
prepayment of a Funding Tranche), or (ii) any failure to borrow, continue or prepay any Funding
Tranche on the date specified in any notice delivered pursuant hereto, then, in any such event, the
Issuer shall compensate the applicable Purchaser for the loss, cost and expense attributable to
such event. Such loss, cost or expense to any such Purchaser shall be deemed to include an amount
(the “Breakage Amount”) determined by such Purchaser (or the Funding Agent) to be the
excess, if any, of (i) the amount of interest which would have accrued on the principal amount of
such Funding Tranche had such event not occurred, at the interest rate that would have been
applicable to such Funding Tranche, for the period from the date of such event to the last day of
the applicable Fixed Period (or, in the case of a failure to borrow for the period that would have
been the related Fixed Period), over (ii) the amount of interest which would be obtainable upon
redeployment or reinvestment of an amount of funds equal to such Funding Tranche for such period.
A certificate of any Purchaser incurring any loss, cost or expense as a result of any of the events
specified in this Section 2.08 and setting forth any amount or amounts that such Purchaser
is entitled to receive pursuant to this Section 2.08 and the reasons therefor shall be
delivered to the Issuer by the Funding Agent and shall include reasonably detailed calculations and
shall be conclusive absent manifest error. The Issuer shall pay to the related Funding Agent on
behalf of each such Purchaser the amount shown as due on any such certificate on the first
Settlement Date which is not less than three Business Days after receipt of notice thereof.

          SECTION 2.09 Illegality. Notwithstanding anything in this Note Purchase Agreement or
any other Transaction Document to the contrary, if, after the Closing Date, the adoption of any Law
or bank regulatory guideline or any amendment or change in the interpretation of any existing or
future Law or bank regulatory guideline by any Official Body charged with the administration,
interpretation or application thereof, or the compliance with any directive of any Official Body
(in the case of any bank regulatory guideline, whether or not having the force of Law), shall make
it unlawful for any Purchaser (or its liquidity and credit support providers, if applicable) to
acquire or maintain a Funding Tranche by reference to the Eurodollar Rate as contemplated by this
Note Purchase Agreement (or the applicable Asset Purchase Agreement), (i) the Funding Agent on
behalf of such Purchaser (or any liquidity and/or credit support provider of any such Purchaser, as
the case may be) shall, within forty-five (45) days after receiving actual knowledge thereof,
deliver a certificate to the Issuer (with a copy to the applicable Funding Agent) setting forth the
basis for such illegality, which certificate shall be conclusive absent manifest error, and (ii)
such Purchaser’s portion of any Funding Tranche maintained by reference to the Eurodollar Rate then
outstanding shall be converted automatically to a Funding Tranche maintained by reference to the
Base Rate.

          SECTION 2.10 Inability to Determine Eurodollar Rate. If, prior to the first day of
any Fixed Period relating to any Funding Tranche maintained by reference to the Eurodollar Rate:

     (1) the Funding Agent shall have determined (which determination in the absence
of manifest error shall be conclusive and binding upon the Issuer) that, by reason
of circumstances affecting the relevant market, adequate and

9

 

reasonable means do not exist for ascertaining the Eurodollar Rate for such
Fixed Period; or

     (2) the Funding Agent shall have received notice from one or more Purchasers
(or any liquidity and/or credit support provider of any such Purchaser, as the case
may be) that the Eurodollar Rate determined or to be determined for such Fixed
Period will not adequately and fairly reflect the cost to such Purchasers (or any
liquidity and/or credit support provider of any such Purchaser, as the case may be)
(as conclusively certified by such Person) of purchasing or maintaining their
affected portions of such Funding Tranches during such Fixed Period;

then, in either such event, the Funding Agent shall give telecopy or telephonic notice thereof
(confirmed in writing) to the Issuer as soon as practicable (but, in any event, within thirty (30)
days after such determination or notice, as applicable) thereafter. Until such notice has been
withdrawn by the Funding Agent, no further Funding Tranches shall be funded or maintained at the
Eurodollar Rate. The Funding Agent agrees to withdraw any such notice as soon as reasonably
practicable after the Funding Agent is notified of a change in circumstances which makes such
notice inapplicable.

          SECTION 2.11 Fees. The Issuer shall pay to the Funding Agent for the benefit of the
applicable Purchasers as and when due and in accordance with the provisions for payment set forth
in Article 5 of the Series Supplement, each of the fees specified in the Fee Letter.

ARTICLE III

CLOSING

          SECTION 3.01 Closing. The closing (the “Closing”) of the purchase and sale of
the VFN shall take place on or about 10:00 a.m. on August 10, 2005, or if the conditions to closing
set forth in Article IV of this Note Purchase Agreement shall not have been satisfied or
waived by such date, as soon as practicable after such conditions shall have been satisfied or
waived, or at such other time, date and place as the parties shall agree upon (the date of the
Closing being referred to herein as the “Closing Date”).

          SECTION 3.02 Transactions to be Effected at the Closing. At the Closing (a) the
Funding Agent will (to the extent received from the Purchasers) deliver to the Issuer funds in an
amount equal to the Initial Purchase Price by wire transfer of immediately available funds to a
bank account designated by the Issuer to the Funding Agent at least two Business Days prior to the
Closing Date; and (b) the Issuer shall deliver the VFN to the Funding Agent in satisfaction of the
Issuer’s obligation to the Funding Agent hereunder.

ARTICLE IV

CONDITIONS PRECEDENT TO

PURCHASE ON THE CLOSING DATE

10

 

          The purchase by the Funding Agent on behalf of the Purchasers of the VFN is subject to the
satisfaction at the time of the Closing of the following conditions (any or all of which may be
waived by the Funding Agent in its sole discretion):

          SECTION 4.01 Performance by Cofina Entities. All the terms, covenants, agreements and
conditions of the Transaction Documents to which each Cofina Entity is a party to be complied with
and performed by the Cofina Entities at or before the Closing shall have been complied with and
performed in all material respects.

          SECTION 4.02 Representations and Warranties. Each of the representations and
warranties of each Cofina Entity made in the Transaction Documents to which it is a party shall be
true and correct in all material respects as of the time of the Closing (except to the extent they
expressly relate to an earlier or later time).

          SECTION 4.03 Corporate Documents. The Funding Agent shall have received copies of the
(i) certificate of incorporation or certificate of formation, as applicable, good standing
certificate and by-laws or limited liability company agreement, as applicable, of each Cofina
Entity, (ii) board of directors resolutions or resolutions of the managing member, as applicable,
of each Cofina Entity with respect to the Transaction Documents to which it is a party, and
(iii) incumbency certificate of each Cofina Entity, each certified by appropriate corporate or
limited liability company authorities.

          SECTION 4.04 Opinions of Counsel. The Funding Agent shall have received favorable
opinions from counsel to the Sellers, the Servicer and the Issuer dated as of the Closing Date and
reasonably satisfactory in form and substance to the Funding Agent and its counsel, as to such
matters as the Funding Agent and its counsel may reasonably request.

          SECTION 4.05 Reports. The Funding Agent shall have received a copy of the most recent
Monthly Servicer Report prior to Closing.

          SECTION 4.06 Financing Statements. The Funding Agent shall have received evidence
satisfactory to it of the completion of all recordings, registrations, notices and filings as may
be necessary or, in the opinion of the Funding Agent, desirable to perfect or evidence the sale and
assignment by each Seller to the Issuer of their respective ownership interests in the Receivables,
Related Security and other collateral in the Trust Estate and the proceeds thereof and the security
interest granted to the Trustee for the benefit of the Secured Parties pursuant to the granting
clauses of the Indenture:

          SECTION 4.07 Documents. The Funding Agent shall have received a duly executed
counterpart of the Guaranty Agreement and each of the Transaction Documents and each and every
document or certification delivered by any party in connection with any of such agreements, and
each such document shall be in full force and effect.

          SECTION 4.08 VFN. The Funding Agent shall have received an executed VFN being
purchased by the Purchasers, registered in the name of the Funding Agent, as agent for the
Purchasers.

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          SECTION 4.09 No Actions or Proceedings. No action, suit, proceeding or investigation
by or before any Official Body shall have been instituted to restrain or prohibit the consummation
of, or to invalidate, the transactions contemplated by the Transaction Documents and the documents
related thereto in any material respect.

          SECTION 4.10 Approvals and Consents. All Governmental Actions of all Official Bodies
required with respect to the transactions contemplated by the Transaction Documents and the other
documents related thereto shall have been obtained or made.

          SECTION 4.11 Officer’s Certificates. The Funding Agent shall have received a
certificate of a Responsible Officer from each Cofina Entity (each, an “Officer’s
Certificate”) in form and substance reasonably satisfactory to the Funding Agent and its
counsel, dated as of the Closing Date, certifying as to the satisfaction of the conditions set
forth in Sections 4.01 and 4.02 with respect to such Cofina Entity.

          SECTION 4.12 Accounts. The Funding Agent shall have received evidence that the
Collection Account, Series 2005-A Settlement Account and the Spread Maintenance Account have been
established in accordance with the terms of the Indenture.

          SECTION 4.13 Expenses. Costs and expenses of the Funding Agent and the Purchasers
accrued and payable under Section 8.04, including all accrued attorneys’ fees and expenses
shall have been paid.

          SECTION 4.14 Liens. The Funding Agent shall have received UCC search reports showing
that no Liens exist on the Receivables, Related Security or any other assets or collateral in the
Trust Estate, other than (i) Liens in favor of (or appropriately assigned to) the Trustee,
(ii) Permitted Encumbrances, and (iii)  Liens for which releases or acceptable assignments or other
amendments have been delivered to the Trustee.

          SECTION 4.15 Other Documents. The Cofina Entities shall have furnished to the Funding
Agent such other information, certificates and documents as the Funding Agent may reasonably
request.

          SECTION 4.16 Payment of Fees. The fees due on the Closing Date (as specified in the
Fee Letter) shall have been paid.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF THE ISSUER

          SECTION 5.01 Representations and Warranties of the Issuer. The representations and
warranties made by the Issuer in the other Transaction Documents are hereby remade by the Issuer on
each date to which they are made in such Transaction Documents as if such representations and
warranties were set forth herein. For purposes of this Section 5.01, such representations
and warranties are incorporated by reference herein in their entirety.

          SECTION 5.02 Reaffirmation of Representations and Warranties by the Issuer. On the
Closing Date and on each day that an Increase is made hereunder, the Issuer, by accepting

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the proceeds thereof, shall be deemed to have certified that all of its representations and
warranties contained in the Transaction Documents are true and correct on and as of such day as
though made on and as of such day (except to the extent they relate to an earlier date or later
time, and then as of such earlier date or later time).

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

WITH RESPECT TO THE FUNDING AGENT AND THE PURCHASERS

          The Funding Agent and each Purchaser hereby makes with respect to itself the following
representations and warranties to the Issuer on which the Issuer shall rely in entering into this
Note Purchase Agreement:

          SECTION 6.01 Securities Laws; Transfer Restrictions. The Funding Agent and each of
the Purchasers represents and warrants to the Issuer, as of the date hereof (or as of a subsequent
date on which a successor or assign of any Purchaser shall become a party hereto), and agrees that:

          (a) it is an “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or (7) of
Regulation D under the Securities Act and has sufficient knowledge and experience in financial and
business matters to be capable of evaluating the merits and risks of investing in, and it is able
and prepared to bear the economic risk of investing in, the VFN;

          (b) it is purchasing the VFN for its own account, or for the account of one or more
“accredited investors” within the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under
the Securities Act that meet the criteria described in subsection (a) and for which it is
acting with complete investment discretion, for investment purposes only and not with a view to
distribution;

          (c) it understands that (i) the VFN has not been and will not be registered or qualified under
the Securities Act or any applicable state securities laws or the securities laws of any other
jurisdiction and is being offered only in a transaction not involving any public offering within
the meaning of the Securities Act, (ii) the Issuer is not required to so register or qualify the
VFN, and (iii) the VFN may be resold, pledged or otherwise transferred only (A) to the Issuer,
(B) to a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act) in a
transaction meeting the requirements of Rule 144A under the Securities Act, or (C) in a transaction
otherwise exempt from the registration requirements of the Securities Act, in each case in
accordance with the provisions of the Indenture and any applicable securities laws of any state of
the United States or any other jurisdiction;

          (d) it understands that upon original issuance thereof, and until such time as the same may no
longer be required under the applicable requirements of the Securities Act, the certificate
evidencing the VFN (and all securities issued in exchange therefor or substitution thereof) shall
bear a restrictive legend substantially in the form set forth in the form of VFN included as an
exhibit to the Series Supplement; and

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          (e) it will obtain from any transferee of the VFN (or any interest therein) substantially the
same representations, warranties and agreements contained in this Section 6.01.

          SECTION 6.02 Enforceability. This Note Purchase Agreement has been duly authorized,
executed and delivered by each Purchaser and the Funding Agent, and is the valid and legally
binding obligation of such Person, enforceable against such Person in accordance with its terms,
subject as to enforcement to bankruptcy, insolvency, reorganization, moratorium and other similar
laws of general applicability relating to or affecting creditors’ rights and to general principles
of equity.

ARTICLE VII

COVENANTS

          SECTION 7.01 Covenants. The Issuer hereby covenants that, until the termination of
the Transaction Documents, unless the Purchasers shall otherwise consent in writing:

          (a) Monthly Noteholders’ Statement; Notice of Adverse Effect. (1) The Issuer will
cause each Monthly Noteholders’ Statement pertaining to the Series Supplement to be delivered to
each Purchaser, contemporaneously with the delivery thereof to the Trustee.

          (b) Notice of Default. As soon as possible, and in any event within one (1) day after
the occurrence thereof, the Issuer shall (or shall cause the Servicer to) give each Purchaser
written notice of each Early Amortization Event, Potential Early Amortization Event, Default, Event
of Default or Servicer Default.

          (c) Further Assurances. The Issuer agrees to take any and all acts and to create any
and all further instruments necessary or reasonably requested by the Funding Agent to fully effect
the purposes of this Note Purchase Agreement.

          (d) Notice of Modifications to Transaction Documents and Credit Manual. The Issuer
shall (or shall cause the Servicer to) give the Funding Agent written notice of any proposed
amendment, modification or waiver of any provision of the Transaction Documents. In addition, the
Issuer shall not amend (or consent to the amendment of) the Credit Manual without the prior written
consent of the Funding Agent.

          (e) Expenses. Whether or not the Closing takes place, except as otherwise expressly
provided herein or in the Fee Letter, all reasonable costs and expenses incurred by the Purchasers
or the Funding Agent in connection with this Note Purchase Agreement and the transactions
contemplated hereby shall be paid by the Issuer.

          SECTION 7.02 Incorporation. The covenants of the Issuer in the other Transaction
Documents are hereby incorporated herein in their entirety and the Issuer hereby covenants and
agrees to perform such covenants as though such covenants were set forth in full herein.

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ARTICLE VIII

INDEMNIFICATION

          SECTION 8.01 Indemnification. Without limiting any other rights which the Funding
Agent or the Purchasers may have hereunder or under applicable law, the Issuer hereby agrees to
indemnify each Indemnified Party from and against any and all damages, losses, claims, liabilities,
costs and expenses, including, without limitation, reasonable attorneys’ fees and disbursements
(all of the foregoing being collectively referred to as “Issuer Indemnified Amounts”)
awarded against or incurred by any of them arising out of or as a result of this Note Purchase
Agreement, the other Transaction Documents, the ownership, either directly or indirectly, of any
interest in the VFN or any of the other transactions contemplated hereby or thereby, excluding,
however, Indemnified Amounts to the extent resulting from gross negligence or willful misconduct on
the part of such Indemnified Party. Without limiting the generality of the foregoing, and subject
to the exclusions set forth in the preceding sentence, the Issuer shall indemnify each Indemnified
Party for Issuer Indemnified Amounts relating to or resulting from:

          (a) any representation or warranty made by the Issuer under this Note Purchase Agreement, in
any of the other Transaction Documents, in any Monthly Servicer Report or in any other written
information or report delivered by the Issuer pursuant hereto or thereto, which shall have been
false or incorrect in any respect when made or deemed made;

          (b) the failure by the Issuer to comply with any applicable Requirement of Law with respect to
any portion of the Trust Estate, or the nonconformity of any portion of the Trust Estate with any
applicable Requirement of Law;

          (c) any dispute, claim, offset or defense (other than discharge in bankruptcy) of an Obligor
to the payment of any Receivable (including, without limitation, a defense based on such Receivable
or the related Loan not being the legal, valid and binding obligation of such Obligor enforceable
against it in accordance with its terms);

          (d) the failure by the Issuer to comply with any term, provision or covenant contained in this
Note Purchase Agreement or any of the other Transaction Documents to which it is a party or to
perform any of its respective duties under the Trust Estate;

          (e) the failure of the Issuer to pay when due any taxes, including without limitation, sales,
excise or personal property taxes payable in connection with any portion of the Trust Estate;

          (f) any reduction in the aggregate outstanding principal balance of the VFN or any Funding
Tranche with respect to any Purchaser as a result of the distribution of Collections pursuant to
Article V of the Indenture and/or the Series Supplement, if all or a portion of such distributions
shall thereafter be rescinded or otherwise must be returned for any reason;

          (g) the commingling by the Issuer of Collections at any time with other funds;

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          (h) any investigation, litigation or proceeding related to this Note Purchase Agreement, any
of the other Transaction Documents, the use of proceeds by the Issuer, the ownership directly or
indirectly of the VFN or any interest in the Trust Estate;

          (i) any failure of the Issuer to give reasonably equivalent value to any Seller in
consideration of the purchase by the Issuer from such Seller of any Receivable, or any attempt by
any Person to void, rescind or set aside any such transfer under statutory provisions or common law
or equitable action, including, without limitation, any provision of the Bankruptcy Code;

          (j) any action taken by the Issuer in the enforcement or collection of any portion of the
Trust Estate;

          (k) the failure of any Receivable included in any Monthly Servicer Report or other periodic
report as an Eligible Receivable for purposes of any calculation based on Eligible Receivables or
otherwise to be an Eligible Receivable at the time of such calculation;

          (l) the failure to vest in the Trustee (for the benefit of the Purchasers and the other
Secured Parties) (i) to the extent the perfection of a security interest in such property is
governed by the UCC, a valid and enforceable first priority perfected security interest in such
Receivables, Related Security and other related rights or (ii) if the perfection of such security
interest is not governed by the UCC, a valid and enforceable lien or security interest in such
Receivables, Related Security and other related rights, in each case, free and clear of any Adverse
Claim; or

          (m) the failure to have filed, or any delay in filing, financing statements or other similar
instruments or documents under the UCC of any applicable jurisdiction or other applicable laws with
respect to the Receivables, Related Security and other related rights transferred or purported to
be transferred hereunder whether at the time of any purchase or at any subsequent time.

     If for any reason the indemnification provided in this Section 8.01 is unavailable to
an Indemnified Party or is insufficient to hold an Indemnified Party harmless for the Issuer
Indemnified Amounts, then the indemnifying party shall (subject to the exclusions set forth in the
first sentence of this Section 8.01) contribute to the maximum amount payable or paid to
such Indemnified Party as a result of the applicable claim, damage, expense, loss or liability in
such proportion as is appropriate to reflect not only the relative benefits received by such
Indemnified Party on the one hand and the indemnifying party on the other hand, but also the
relative fault of such Indemnified Party (if any) and the indemnifying party and any other relevant
equitable considerations. The parties hereto acknowledge and agree that all amounts payable under
this Section 8.01 shall be payable by the Issuer solely to the extent funds are available
therefor in accordance with the priority of payments set forth in Article V of the Base Indenture.

          SECTION 8.02 Indemnity for Reserves and Expenses. (a)  If after the date hereof, the
adoption of any law or bank regulatory guideline or any amendment or change in the interpretation
of any existing or future law or bank regulatory guideline by any Official Body

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charged with the administration, interpretation or application thereof, or the compliance with
any directive of any Official Body (whether or not having the force of law), other than laws,
interpretations, guidelines or directives relating to Taxes:

          (i) shall impose, modify or deem applicable any reserve, special deposit or similar
requirement (including, without limitation, any such requirement imposed by the Board of
Governors of the Federal Reserve System) against assets of, deposits with or for the account
of, or credit extended by, the Funding Agent, any Purchaser or any other liquidity and/or
credit support provider of any Purchaser (each, an “Affected Party”) or shall impose
on any Affected Party or on the United States market for certificates of deposit or the
London interbank market any other condition affecting this Note Purchase Agreement, the
other Transaction Documents, the ownership, maintenance or financing of the VFN, the
Receivables, the Trust Estate or payments of amounts due hereunder or its obligation to
advance funds hereunder or under the other Transaction Documents; or

          (ii) imposes upon any Affected Party any other expense deemed by such Affected Party to
be material (including, without limitation, reasonable attorneys’ fees and expenses, and
expenses of litigation or preparation therefor in contesting any of the foregoing) with
respect to this Note Purchase Agreement, the other Transaction Documents, the ownership,
maintenance or financing of the VFN, the Receivables, the Trust Estate, or payments of
amounts due hereunder or its obligation to advance funds hereunder or otherwise in respect
of this Note Purchase Agreement or the other Transaction Documents,

and the result of any of the foregoing is to increase the cost to such Affected Party with respect
to this Note Purchase Agreement, the other Transaction Documents, the ownership, maintenance or
financing of the VFN, the Receivables, the Trust Estate, the obligations hereunder or the funding
of any Increases hereunder or under the other Transaction Documents, by an amount reasonably deemed
by such Affected Party to be material, then, on the first Settlement Date which is not less than
ten (10) Business Days after demand by such Affected Party through the Funding Agent, the Issuer
shall pay to such Affected Party such additional amount or amounts as will compensate such Affected
Party for such increased cost or reduction. In making demand hereunder, the applicable Affected
Party shall submit to the Issuer a certificate as to such increased costs incurred which shall
provide in detail the basis for such claim which certificate shall be conclusive and binding for
all purposes absent manifest error; provided, however, that no such Affected Party
shall be required to disclose any confidential or tax planning information in any such certificate.
The parties hereto acknowledge and agree that all amounts payable under this Section
8.02(a) shall be payable by the Issuer solely to the extent funds are available therefor in
accordance with the priority of payments set forth in Article V of the Base Indenture.

          (b) If any Affected Party shall have determined that after the Closing Date, the adoption of
any applicable law or bank regulatory guideline regarding capital adequacy, or any change therein,
or any change in the interpretation thereof by any Official Body, or any directive regarding
capital adequacy (in the case of any bank regulatory guideline, whether or not having the force of
law) of any such Official Body, has or would have, due to an increase in the amount of capital
required to be maintained by such Affected Party, the effect of reducing the

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rate of return on capital of such Affected Party as a consequence of such Affected Party’s
obligations hereunder or with respect hereto to a level below that which such Affected Party could
have achieved but for such adoption, change, request or directive (taking into consideration its
policies with respect to capital adequacy) by an amount reasonably deemed by such Affected Party to
be material, then from time to time, on the first Settlement Date which is not less than ten (10)
Business Days after demand by such Affected Party through the Funding Agent, the Issuer shall pay
to such Affected Party such additional amount or amounts as will compensate such Affected Party for
such reduction. For avoidance of doubt, any interpretation of Accounting Research Bulletin No. 51
by the Financial Accounting Standards Board shall constitute an adoption, change, request or
directive subject to this Section 9.2(b). In making demand hereunder, the applicable
Affected Party shall submit to the Issuer a certificate as to such increased costs incurred which
shall provide in detail the basis for such claim which certificate shall be conclusive and binding
for all purposes absent manifest error; provided, however, that no such Affected
Party shall be required to disclose any confidential or tax planning information in any such
certificate. The parties hereto acknowledge and agree that all amounts payable under this
Section 8.02(b) shall be payable by the Issuer solely to the extent funds are available
therefor in accordance with the priority of payments set forth in Article V of the Base Indenture.

          SECTION 8.03 Indemnity for Taxes. (a)  All payments made by the Issuer to the Funding
Agent for the benefit of the Purchasers under this Note Purchase Agreement or any other Transaction
Document shall be made free and clear of, and without deduction or withholding for or on account
of, any present or future stamp or similar taxes, levies, imposts, duties, charges, fees,
deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by
any Official Body, excluding (i) taxes that would not have been imposed if the Affected Party had
timely complied with the requirements of Section 8.03(b), and (ii) taxes imposed on the net
income of the Funding Agent or any other Affected Party, in each case imposed by any jurisdiction
under the laws of which the Funding Agent or such Affected Party is organized or any political
subdivision or taxing authority thereof or therein (all such nonexcluded taxes, levies, imposts,
duties, charges, fees, deductions or withholdings, collectively or individually, “Taxes”).
If any such Taxes are required to be withheld from any amounts payable to the Funding Agent or any
Affected Party hereunder, the amounts so payable to the Funding Agent or such Affected Party shall
be increased to the extent necessary to yield to the Funding Agent or such Affected Party (after
payment of all Taxes) all amounts payable hereunder at the rates or in the amounts specified in
this Note Purchase Agreement and the other Transaction Documents. The Issuer shall indemnify the
Funding Agent or any such Affected Party for the full amount of any such Taxes on the first
Settlement Date which is not less than ten (10) days after the date of written demand therefor by
the Funding Agent.

          (b) Each Affected Party that is a Non-United States Person shall:

          (i) deliver to the Issuer and the Funding Agent two duly completed copies of IRS Form
W-8 BEN or Form W-8 ECI, or successor applicable form, as the case may be;

          (ii) deliver to the Issuer and the Funding Agent two (2) further copies of any such
form or certification on or before the date that any such form or certification

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expires or becomes obsolete and after the occurrence of any event requiring a change in
the most recent form previously delivered by it to the Issuer; and

          (iii) obtain such extensions of time for filing and complete such forms or
certifications as may reasonably be requested by the Issuer or the Funding Agent;

unless, in any such case, an event (including, without limitation, any change in treaty, law or
regulation) has occurred prior to the date on which any such delivery would otherwise be required
which, regardless of the identity of the Affected Party, renders all such forms inapplicable or
which, regardless of the identity of the Affected Party, would prevent such Affected Party from
duly completing and delivering any such form with respect to it, and such Affected Party so advises
the Issuer and the Funding Agent. Each such Affected Party so organized shall certify in the case
of an IRS Form W-8 BEN or IRS Form W-8 ECI (or successor applicable form), that it is entitled to
receive payments under this Note Purchase Agreement and the other Transaction Documents without
deduction or withholding of any United States federal income taxes. Each Affected Party which is a
Non-United States Person represents and warrants to the Issuer and the Funding Agent that, as of
the date of this Note Purchase Agreement (or the date such Person otherwise becomes an Affected
Party, as the case may be), (i) it is entitled to receive all payments hereunder without deduction
or withholding for or on account of any United States federal Taxes and (ii) it is permitted to
take the actions described in the preceding sentence under the laws and any applicable double
taxation treaties of the jurisdiction of its head office or any booking office used in connection
with this Note Purchase Agreement. Each Affected Party which is a Non-United States Person further
agrees that, to the extent any form claiming complete or partial exemption from withholding and
deduction of United States federal Taxes delivered under this clause (b) is found to be
incomplete or incorrect in any material respect, such Affected Party shall (to the extent it is
permitted to do so under the laws and any double taxation treaties of the United States, the
jurisdiction of its organization and the jurisdictions in which its relevant booking offices are
located) execute and deliver to each of the Funding Agent and the Issuer a complete and correct
replacement form.

          (c) Limitations. Each Affected Party agrees to use reasonable efforts to mitigate the
imposition of any Taxes referred to in this Section 8.03, including changing the office of
such Affected Party from which any Funding Tranche (or portion thereof) funded or maintained by
such Affected Party or this Note Purchase Agreement is booked; provided that such
reasonable efforts would not be disadvantageous to such Affected Party or result in the imposition
of any additional Taxes upon such Affected Party or cause such Affected Party, in its good faith
judgment, to violate one or more of its policies in order to avoid such imposition of Taxes. The
parties hereto acknowledge and agree that all amounts payable under this Section 8.03 shall
be payable by the Issuer solely to the extent funds are available therefor in accordance with the
priority of payments set forth in Article V of the Base Indenture.

          SECTION 8.04 Other Costs, Expenses and Related Matters. (a)  The Issuer agrees, upon
receipt of a written invoice, to pay or cause to be paid, and to hold the Funding Agent and the
Purchasers harmless against liability for the payment of, all reasonable out-of-pocket expenses
(including, without limitation, reasonable attorneys’, accountants’ and other third parties’ fees
and expenses, any filing fees and expenses incurred by officers or employees of the Funding Agent
and/or the Purchasers) or intangible, documentary or recording

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taxes incurred by or on behalf of the Funding Agent and the Purchasers (i) in connection with
the negotiation, execution, delivery and preparation of this Note Purchase Agreement, the other
Transaction Documents and any documents or instruments delivered pursuant hereto and thereto and
the transactions contemplated hereby or thereby (including, without limitation, the perfection or
protection of the Purchasers’ interest in the Trust Estate) and (ii) (A) relating to any
amendments, waivers or consents under this Note Purchase Agreement, any Asset Purchase Agreement
and the other Transaction Documents, (B) arising in connection with the Funding Agent’s or such
Purchaser’s enforcement or preservation of rights (including the perfection and protection of the
Purchasers’ interest in the Trust Estate under this Note Purchase Agreement and the other
Transaction Documents), or (C) arising in connection with any audit, dispute, disagreement,
litigation or preparation for litigation involving this Note Purchase Agreement or any of the other
Transaction Documents. The parties hereto acknowledge and agree that all amounts payable under
this Section 8.04 shall be payable by the Issuer solely to the extent funds are available
therefor in accordance with the priority of payments set forth in Article V of the Base Indenture.

          (b) The Funding Agent will notify the Issuer and the Servicer in writing of any event
occurring after the date hereof which will entitle an Indemnified Party or Affected Party to
compensation pursuant to this Article VIII. Any notice by the Funding Agent claiming
compensation under this Article VIII and setting forth the additional amount or amounts to
be paid to it hereunder shall be conclusive in the absence of manifest error. In determining such
amount, the Funding Agent or any applicable Indemnified Party or Affected Party may use any
reasonable averaging and attributing methods.

          (c) If the Issuer is required to pay any additional amount to any Purchaser pursuant to
Section 8.02 or 8.03, then such Purchaser shall use reasonable efforts (which shall
not require such Purchaser to incur an unreimbursed loss or unreimbursed cost or expense or
otherwise take any action inconsistent with its internal policies or legal or regulatory
restrictions or suffer any disadvantage or burden reasonably deemed by it to be significant) to
assign its rights and delegate and transfer its obligations hereunder to another of its offices,
branches or affiliates, if such filing or assignment would reduce amounts payable pursuant to
Section 8.02 or 8.03, as the case may be, in the future.

ARTICLE IX

THE FUNDING AGENT

          SECTION 9.01 Authorization and Action. Each Purchaser hereby accepts the appointment
of and authorizes the Funding Agent to take such action as agent on its behalf and to exercise such
powers as are delegated to the Funding Agent by the terms hereof, together with such powers as are
reasonably incidental thereto. The Purchasers hereby authorize the Funding Agent, in its sole
discretion, to take any actions and exercise any rights or remedies under this Note Purchase
Agreement and any permitted related agreements and documents. Except for actions which the Funding
Agent is expressly required to take pursuant to this Note Purchase Agreement or the applicable
Asset Purchase Agreement, the Funding Agent shall not be required to take any action which exposes
the Funding Agent to personal liability or which is contrary to applicable law unless the Funding
Agent shall receive further assurances to its satisfaction from

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the Purchasers of the indemnification obligations under Section 9.04 against any and
all liability and expense which may be incurred in taking or continuing to take such action. The
Funding Agent agrees to give to the Purchasers prompt notice of each notice and determination given
to it by the Issuer, the Servicer or the Trustee, pursuant to the terms of this Note Purchase
Agreement or the other Transaction Documents. Subject to Section 9.06, the appointment and
authority of the Funding Agent hereunder shall terminate upon the later of (i) the payment to (a)
the Purchasers of all amounts owing to the Purchasers hereunder and (b) the Funding Agent of all
amounts due hereunder and (ii) the Series 2005-A Termination Date.

          SECTION 9.02 Funding Agent’s Reliance, Etc. Neither the Funding Agent nor any of its
directors, officers, agents who are natural persons or employees shall be liable for any action
taken or omitted to be taken by it or them as Funding Agent under or in connection with this Note
Purchase Agreement or any related agreement or document, except for its or their own gross
negligence or willful misconduct. Without limiting the foregoing, the Funding Agent: (i) may
consult with legal counsel, independent public accountants and other experts selected by it and
shall not be liable for any action taken or omitted to be taken in good faith by it in accordance
with the advice of such counsel, accountants or experts; (ii) makes no warranty or representation
to the Purchasers and shall not be responsible to the Purchasers for any statements, warranties or
representations made by any other Person in connection with any Transaction Document; (iii) shall
not have any duty to ascertain or to inquire as to the performance or observance of any of the
terms, covenants or conditions of any Transaction Document on the part of any Person or to inspect
the property (including the books and records) of any Person; (iv) shall not be responsible to any
Purchaser for the due execution, legality, validity, enforceability, genuineness, sufficiency or
value of any Transaction Document or any other instrument or document furnished pursuant hereto or
thereto; and (v) shall incur no liability under or in respect of any Transaction Document by acting
upon any notice (including notice by telephone), consent, certificate or other instrument or
writing (which may be by facsimile) believed by it in good faith to be genuine and signed or sent
by the proper party or parties.

          SECTION 9.03 Funding Agent and Affiliates. The Funding Agent and its respective
Affiliates may generally engage in any kind of business with the Issuer, the Servicer, any Obligor,
any of their respective Affiliates and any Person who may do business with or own securities of the
Issuer, any Seller, the Servicer, any Obligor or any of their respective Affiliates, all as if such
entities were not the Funding Agent and without any duty to account therefor to the Purchasers.

          SECTION 9.04 Indemnification. Each Purchaser severally agrees to indemnify the
Funding Agent (to the extent not reimbursed by any Cofina Entity), from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted
against the Funding Agent in any way relating to or arising out of any Transaction Document or any
action taken or omitted by the Funding Agent under any Transaction Document; provided, that
(i) no Purchaser shall be liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements resulting or arising from
the Funding Agent’s gross negligence or willful misconduct and (ii) no Purchaser shall be liable
for any amount in respect of any compromise or settlement or any of the foregoing unless such
compromise or settlement is approved by the

21

 

majority of the Purchasers (based on Purchaser Percentages). Without limitation of the
generality of the foregoing, each Purchaser, agrees to reimburse the Funding Agent, promptly upon
demand, for any reasonable out-of-pocket expenses (including reasonable counsel fees) incurred by
the Funding Agent in connection with the administration, modification, amendment or enforcement
(whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under, any Transaction Document; provided, that no Purchaser
shall be responsible for the costs and expenses of the Funding Agent in defending itself against
any claim alleging the gross negligence or willful misconduct of the Funding Agent to the extent
such gross negligence or willful misconduct is determined by a court of competent jurisdiction in a
final and non-appealable decision.

          SECTION 9.05 Purchase Decision. Each Purchaser acknowledges that it has,
independently and without reliance upon the Funding Agent, and based on such documents and
information as it has deemed appropriate, made its own evaluation and decision to enter into this
Note Purchase Agreement and to purchase an interest in the VFN. Each Purchaser also acknowledges
that it will, independently and without reliance upon the Funding Agent or any of its Affiliates,
and based on such documents and information as it shall deem appropriate at the time, continue to
make its own decisions in taking or not taking action under this Note Purchase Agreement or any
related agreement, instrument or other document.

          SECTION 9.06 Successor Funding Agent. The Funding Agent may resign at any time by
giving thirty (30) days’ written notice thereof to the Purchasers, the Issuer and the Trustee.
Upon any such resignation, the Purchasers shall have the right to appoint a successor Funding
Agent. If no successor Funding Agent shall have been so appointed and shall have accepted such
appointment, within thirty days after the retiring Funding Agent’s giving of notice of resignation,
then the retiring Funding Agent may, on behalf of the Purchasers, appoint a successor Funding
Agent. Upon the acceptance of any appointment as Funding Agent hereunder by a successor Funding
Agent, such successor Funding Agent shall thereupon succeed to and become vested with all of the
rights, powers, privileges and duties of the retiring Funding Agent, and the retiring Funding Agent
shall be discharged from its duties and obligations under this Note Purchase Agreement and the
other Transaction Documents (other than obligations arising or to have been performed prior to such
retirement). After any retiring Funding Agent’s resignation hereunder as Funding Agent, the
provisions of this Article IX shall inure to its benefit as to any actions taken or omitted
to be taken by it while it was an Funding Agent under this Note Purchase Agreement and the other
Transaction Documents.

ARTICLE X

MISCELLANEOUS

          SECTION 10.01 Amendments. No amendment or waiver of any provision of this Note
Purchase Agreement shall in any event be effective unless the same shall be signed by each of the
parties hereto, and then such amendment, waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.

          SECTION 10.02 Notices. All notices and other communications provided for hereunder
shall, unless otherwise stated herein, be in writing and mailed, telefaxed (receipt

22

 

confirmed) or hand delivered, as to each party hereto, at its address set forth in
Schedule I hereto or at such other address as shall be designated by such party in a
written notice to the other party hereto. All such notices and communications shall be effective
upon receipt by the addressee.

          SECTION 10.03 No Waiver; Remedies. No failure on the part of any party hereto to
exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise of any right hereunder preclude any other or further exercise
thereof or the exercise of any other right. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law.

          SECTION 10.04 Binding Effect; Assignability. (a) This Note Purchase Agreement shall
be binding on the parties hereto and their respective successors and assigns; provided,
however, that the Issuer may not assign any of its rights or delegate any of its duties
hereunder or under any of the other Transaction Documents to which it is a party without the prior
written consent of the Funding Agent. No provision of this Note Purchase Agreement or any other
Transaction Document shall in any manner restrict the ability of any Purchaser to assign,
participate, grant security interests in, or otherwise transfer any portion of its interest in the
VFN (and its rights to receive any payments in respect thereof, including in connection with any
collateral securing payment with respect to such VFN); provided, that any such transfer,
participation or assignment shall only be made in compliance with the transfer restrictions set
forth herein and in the Indenture; provided, further, that unless otherwise
consented to by the Issuer, such transferee, participant or assignee shall have executed and
delivered to the Issuer, the Trustee and the Funding Agent a Transfer Supplement (as defined in
subsection (b) below), with such changes as shall be reasonably acceptable to the Issuer.

          (b) Each Committed Purchaser may assign to one or more Persons (each an “Assignee
Committed Purchaser”), reasonably acceptable to the Issuer and the Funding Agent a portion of
such Purchaser’s commitment in respect of its Purchaser Percentage of the Maximum Funded Amount
(for each such Purchaser, the “Commitment”) pursuant to a supplement hereto, substantially
in the form of Exhibit C with any changes as have been approved by the parties thereto (a
“Transfer Supplement”), executed by each such Assignee Committed Purchaser, the assignor
Committed Purchaser, and the Funding Agent; provided, that any such transfer, participation
or assignment shall only be made in compliance with the transfer restrictions set forth herein and
in the Indenture. Any such assignment by a Committed Purchaser pursuant to this paragraph cannot
be for an amount less than $10,000,000. Upon (i) the execution of the Transfer Supplement, (ii)
delivery of an executed copy thereof to the Issuer and the Funding Agent and (iii) solely to the
extent such assignor Committed Purchaser has any portion of the Aggregate Purchaser Funded Amount
outstanding, payment by the Assignee Committed Purchaser to the assignor Committed Purchaser of the
agreed purchase price, such assignor Committed Purchaser shall be released from its obligations
hereunder to the extent of such assignment and such Assignee Committed Purchaser shall for all
purposes herein be a Committed Purchaser party hereto and shall have all the rights and obligations
of a Committed Purchaser hereunder to the same extent as if it were an original party hereto. The
amount of the Commitment of the assignor Committed Purchaser allocable to such Assignee Committed
Purchaser shall be equal to the amount of the portion of the Commitment of the assignor Committed
Purchaser transferred, regardless of the purchase price paid therefor. The Transfer Supplement
shall be an amendment hereof only to the extent necessary to reflect the addition of

23

 

such Assignee Committed Purchaser as an “Committed Purchaser” and any resulting adjustment of
the assignor Committed Purchaser’s Commitment.

          (c) Any Purchaser may, in the ordinary course of its business and in accordance with
applicable law, at any time sell to one or more Persons (each, a “Participant”)
participating interests in all or a portion of its rights and obligations under this Note Purchase
Agreements; provided, that any such transfer, participation or assignment shall only be
made in compliance with the transfer restrictions set forth herein and in the Indenture.
Notwithstanding any such sale by a Purchaser of participating interests to a Participant, such
Purchaser’s rights and obligations under this Note Purchase Agreement shall remain unchanged, such
Purchaser shall remain solely responsible for the performance thereof, and the other parties hereto
shall continue to deal solely and directly with such Purchaser in connection with such Purchaser’s
rights and obligations under this Note Purchase Agreement. Each Participant shall be entitled to
the benefits of Article VIII; provided, however, that all amounts payable
to any such Participant shall be limited to the amounts which would have been payable to the
Purchaser selling such participating interest had such interest not been sold.

          (d) This Note Purchase Agreement shall create and constitute the continuing obligation of the
parties hereto in accordance with its terms, and shall remain in full force and effect until such
time as all amounts payable with respect to the VFN or hereunder shall have been paid in full.

          SECTION 10.05 Confidentiality. The Issuer shall maintain, and shall cause each
officer, employee and agent of itself and its Affiliates to maintain, the confidentiality of the
Transaction Documents and all other confidential proprietary information with respect to the
Funding Agent and the Purchasers and each of their respective businesses obtained by them in
connection with the structuring, negotiation and execution of the transactions contemplated herein
and in the other Transaction Documents, except for information that has become publicly available
or information disclosed (i) to legal counsel, accountants and other professional advisors to the
Issuer and its Affiliates, (ii) as required by law, regulation, the requirements of the any
self-regulating organization such as a stock exchange or legal process or (iii) in connection with
any legal or regulatory proceeding to which the Issuer or any of its Affiliates is subject; it
being understood, that solely with respect to the Base Indenture, the Issuer may distribute such
Base Indenture to the holders of any Notes issued pursuant thereto from time to time. The Issuer
hereby consents to the disclosure of any nonpublic information with respect to it received by the
Funding Agent or any Purchaser from the Issuer or the Servicer to (i) any of the Purchasers or the
Funding Agent, (ii) legal counsel, accountants and other professional advisors to the Funding
Agent, the Purchasers or their Affiliates, (iii) as required by law, regulation or legal process,
(iv) in connection with any legal or regulatory proceeding to which the Funding Agent, any
Purchaser or any of their Affiliates is subject, (v) any potential Committed Purchaser or (vi) any
participant or potential participant of the Commitment of any Committed Purchaser, the Trustee, any
Enhancement Provider, or any Secured Party; provided, that the Funding Agent and the
Purchasers, as the case may be, shall advise any such recipient of information that the information
they receive is nonpublic information and may not be disclosed or used for any other purposes other
than that for which it is disclosed to such recipient without the prior written consent of the
Issuer.

24

 

          SECTION 10.06 GOVERNING LAW; JURISDICTION. THIS NOTE PURCHASE AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE
TO ITS CONFLICT OF LAW PROVISIONS. EACH OF THE PARTIES TO THIS NOTE PURCHASE AGREEMENT HEREBY
AGREES TO THE NON-EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK AND ANY APPELLATE COURT HAVING JURISDICTION TO REVIEW THE JUDGMENTS THEREOF.
EACH OF THE PARTIES HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS AND ANY
OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY OF THE AFOREMENTIONED COURTS AND
CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.

          SECTION 10.07 Wavier of Trial by Jury. To the extent permitted by applicable law,
each of the parties hereto irrevocably waives all right of trial by jury in any action, proceeding
or counterclaim arising out of or in connection with this Note Purchase Agreement or any matter
arising hereunder.

          SECTION 10.08 Execution in Counterparts. This Note Purchase Agreement may be executed
in any number of counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which when taken together shall
constitute one and the same agreement.

          SECTION 10.09 Survival. All representations, warranties, covenants, guaranties and
indemnifications contained in this Note Purchase Agreement, and in any document, certificate or
statement delivered pursuant hereto or in connection herewith shall survive the sale, transfer or
repayment of the VFN.

          SECTION 10.10 Funding Instructions. The Issuer hereby instructs the Funding Agent to
wire the funds associated with the acquisition of the Note hereunder to CoBank, ACB in accordance
with the wire instructions provided by CoBank, ACB in that certain Payoff Letter, dated the date
hereof, between CoBank, ACB and Cenex Finance Association, Inc.

25

 

     IN WITNESS WHEREOF, the parties have caused this Note Purchase Agreement to be executed by
their respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 
	 	COFINA FUNDING, LLC, as Issuer,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BANK HAPOALIM B.M., 

as Funding Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BANK HAPOALIM B.M., 

as a Committed Purchaser and as the Swingline Purchaser

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:
Purchaser Percentage: 100%  
	 

Note Purchase Agreement

 

 

EXHIBIT A

Form of Notice of

Increase

	 	 	 	 	 
	1.

	 	Proposed Increase Date:                     	 	 
	 
	 	 	 	 
	2.

	 	Amount of requested Increase
(lesser of minimum amount of
$                     or remaining
Maximum Funded Amount)
	 	$                     
	 
	 	 	 	 
	3.

	 	Purchase Price
	 	$                     
	 
	 	 	 	 
	4.

	 	Remaining Maximum Funded
Amount (after giving effect
to the requested Increase)
	 	$                     
	 
	 	 	 	 
	5.

	 	Certifications:	 	 

	 	(a)	 	The representations and
warranties of Cofina Funding,
LLC ( the “Issuer”) in the
Base Indenture dated as of
August 10, 2005 (as amended)
between the Issuer and U.S.
Bank National Association, as
trustee (the “Trustee”); the
Series 2005-A Supplement,
dated as of August 10, 2005,
between the Issuer and the
Trustee; and the Note
Purchase Agreement dated as
of August 10, 2005 (the “Note
Purchase Agreement”), among
the Issuer, Swingline
Purchaser, the Funding Agent
and the Purchasers named
therein, are true and correct
in all material respects on
the date hereof (except to
the extent they expressly
relate to an earlier or later
time and then as of such
earlier or later time).
	 
	 	(b)	 	The conditions to the
Increase specified in Section
2.03 of the Note Purchase
Agreement have been satisfied
and will be satisfied as of
the applicable Increase Date.

	 	 	 	 	 	 	 
	 	 	COFINA FUNDING, LLC, as Issuer	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Officer	 	 

Date of Notice:                     

Note Purchase Agreement

 

 

EXHIBIT B

Series 2005-A Officer’s Certificate

          Cofina Funding, LLC (the “Issuer”), pursuant to Section 4.12 of the Note Purchase
Agreement dated as of August 10, 2005 (the “Note Purchase Agreement”), among the Issuer,
Bank Hapoalim B.M., as Funding Agent and Swingline Purchaser and the Purchasers party thereto, the
Issuer hereby certifies that, to the best of its knowledge, after reasonable investigation: (a) all
of the terms, covenants, agreements and conditions of the Transaction Documents to be complied with
and performed by Issuer on or before the date hereof have been complied with and performed in all
material respects; and (b) the representations and warranties of Issuer made in the Transaction
Documents to which it is a party are true and correct in all material respects on and as of the
date hereof (except to the extent they expressly relate to an earlier or later time and then as of
such earlier or later time).

          Capitalized terms used and not defined herein shall have the meanings ascribed to them in the
Note Purchase Agreement.

          IN
WITNESS WHEREOF, I have hereunto set my hand as of this ___ day of                     , 20___.

	 	 	 	 	 
	 	COFINA FUNDING, LLC, as Issuer,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Note
Purchase Agreement

 

 

EXHIBIT C

FORM OF TRANSFER SUPPLEMENT

 

 

FORM OF TRANSFER SUPPLEMENT

     Reference is made in this Transfer Supplement (this “Transfer Supplement”) to (i) that
certain Note Purchase Agreement dated August 10, 2005 (as amended, modified, extended or restated
from time to time, the “Note purchase Agreement”)
among Cofina Funding, LLC, as Issuer (the
“Issuer”), Bank Hapoalim B.M., as Funding Agent for the Purchasers (in such capacity, the “Funding
Agent”) and as Swingline Purchaser, and the financial institutions from time to time party
thereto, as Committed Purchasers, and (ii) that certain Base Indenture, dated August 10, 2005 (as
amended, modified, extended or restated from time to time, the “Base Indenture”), between the
Issuer and U.S. Bank National Association, as Trustee (the “Trustee”), and that certain Series
2005-A Supplement, dated August 10, 2005 (as amended, modified, extended or restated from time to
time, the “Series Supplement” and together with the Base Indenture, the “Indenture”), All
capitalized terms used but not defined herein shall have the meanings provided in the Note
Purchase Agreement and Indenture.

     1. [                    ]
(the “Assignor Committed Purchaser”) hereby sells and
assigns, without recourse and without representation or warranty except as expressly set forth
herein, to [                    ]
(the “Assignee Committed Purchaser”), and the Assignee
Committed Purchaser hereby purchases and assumes, without recourse, from the Assignor Committed
Purchaser, effective as of effective date of the assignment specified in Section 6 (the “Effective
Date”), the interest set forth below (the
“Assigned interest”) in the Assignor Committed
Purchaser’s rights and obligations under the Note Purchase Agreement and the Indenture, including,
without limitation: (a) the interests set forth below in its Purchaser Percentage of the Maximum
Funded Amount on the Effective Date; and (b) the Aggregate Purchaser Funded Amount owing to the
Assignor Committed Purchaser in connection with the Assigned Interest which is outstanding on the
Effective Date. Periodic payments made with respect to the Assigned Interest which: (i) accrued
prior to the Effective Date shall be remitted to the Assignor
Committed Purchaser; and (ii) accrue
from and after the Effective Date shall be remitted to the Assignee
Committed Purchaser. From and
after the Effective Date, the Assignee Committed Purchaser, if it is not already a Committed
Purchaser under the Note Purchase Agreement and the Indenture, shall become a Committed Purchaser
for all purposes of the Note Purchase Agreement, the Indenture and the other Transaction Documents
and, to the extent of such assignment, the Assignor Committed Purchaser shall be relieved of its
obligations under the Note Purchase Agreement, the Indenture and the other Transaction
Documents.

     2. The Assignor Committed Purchaser: (a) represents and warrants to the Assignee
Committed Purchaser that it is legally authorized to enter into this Transfer Supplement and
that
it is the legal and beneficial owner of the Assigned Interest free and clear of any adverse
claim
and it has not previously transferred or encumbered such Assigned Interest; (b) makes no
representation or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Transaction Documents or any
other instrument or document furnished pursuant thereto or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Transaction Documents or any other
instrument or document furnished pursuant thereto; and (c) makes no representation or
warranty
and assumes no responsibility with respect to the financial condition of the Issuer or the

Transfer Supplement

 

 

performance or observance by the Issuer of any of its obligations under the Transaction
Documents or any other instrument or document furnished pursuant thereto.

     3. The Assignee Committed Purchaser: (a) confirms that it has received a copy of the
Transaction Documents, and such other documents and information as it has deemed appropriate to
make its own credit analysis and decision to enter into this Transfer Supplement; (b) agrees that
it will, independently and without reliance upon the Funding Agent, the Assignor Committed
Purchaser or any other Person and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in
taking or not taking action
under the Note Purchase Agreement, the Indenture or the other Transaction Documents; (c) warrants
that it is legally authorized to enter into this Transfer Supplement; (d) appoints and authorizes
the Funding Agent and the Trustee to take such action as agent on its behalf and to exercise such
powers and discretion under the Transaction Documents as are delegated to the Funding Agent and the
Trustee by the terms thereof, together with such powers and discretion as are reasonably
incidental thereto; and (e) agrees that it will perform in accordance with their terms all of the
obligations that by the terms of the Note Purchase Agreement, the Indenture and the other
Transaction Documents are required to be performed by it as a
Committed Purchaser.

     4. This Transfer Supplement
shall be effective only upon: (a) the consent of the Issuer
and Funding Agent; (b) receipt by the Funding Agent and Issuer of an executed copy of this
Transfer Supplement together with payment of all costs and expenses incurred by the Funding Agent
in connection with such assignment; (c) solely to the extent such Assignor Committed Purchaser has
any portion of the Aggregate Purchaser Funded Amount outstanding, payment by the Assignee
Committed Purchaser to the Assignor Committed Purchaser of the agreed purchase price; and (d)
satisfaction of all other conditions set forth in Section 10.04 of the Note Purchase Agreement.

     5. This Transfer Supplement shall be governed by and construed in accordance with
the laws of the State of New York.

     6. Terms of Transfer Supplement.

	 	 	 	 	 	 	 
	(a)
	 	Effective Date of Assignment:	 	 	[_______ ] [__], 200[__]	 
	(b)
	 	Legal Name of Assignor Committed Purchaser:	 	 	 	 
	 
	 	[                    ]	 	 	 	 
	(c)
	 	Legal Name of Assignee Committed
Purchaser:	 	 	 	 
	 
	 	[                    ]	 	 	 	 

Transfer Supplement

 

 

	 	 	 	 	 	 	 
	(d)
	 	Notice address of Assignee Committed Purchaser:	 	 	 	 
	 
	 	[Address.]	 	 	 	 
	(e)
	 	Assignor Committed Purchaser’s Total Commitment:	 	 	[         ]	%
	(f)
	 	Assignor Committed Purchaser’s
Purchaser Percentage of the Maximum
Funded Amount:	 	$	[                    ]	 
	(g)
	 	Assignor Committed Purchaser’s Aggregate Purchaser Funded Amount:	 	$	[                    ]	 
	(h)
	 	Percentage of the Maximum Funded
Amount assigned to Assignee Committed Purchaser:	 	 	[         ]	%
	(i)
	 	Commitment amount assigned:	 	$	[                    ]	 
	(j)
	 	Aggregate Purchaser Funded Amount assigned:	 	$	[                    ]	 

     7. This Transfer Supplement may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed shall be
deemed to be an original and all of which when taken together shall constitute one and the
same
agreement. Delivery by facsimile of an executed signature page of this Transfer Supplement
shall be effective as delivery of an executed counterpart hereof.

     8. This Transfer Supplement shall be binding on the parties hereto and their
respective successors and assigns.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK,

SIGNATURE PAGES FOLLOW.

Transfer Supplement

 

 

The terms
set forth above are hereby agreed to:

[                    ],

as Assignor Committed Purchaser

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[                    ],

as Assignee Committed Purchaser

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Transfer Supplement

 

 

Acknowledged and Agreed to:

BANK
HAPOALIM B.M.,

as Funding Agent

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

COFINA FUNDING, LLC,

as Issuer

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

SCHEDULE I

Addresses for Notices

If to:

Issuer:

Cofina Funding, LLC

5500 Cenex Drive

St. Paul, Minnesota 55077

Attn: Sharon Barber

Telephone: (651) 355-6974

Facsimile: (651) 451-4917

Funding Agent:

Bank Hapoalim

1777 Avenue of the Americas

New York, New York 10036

Attn: Brian W. James

Telephone: (212) 782-2343

Facsimile: (212) 782-2345

Committed Purchaser:

Bank Hapoalim

1777 Avenue of the Americas

New York, New York 10036

Attn: Brian W. James

Telephone: (212) 782-2343

Facsimile: (212) 782-2345

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	SECTION 1.01 Certain Defined Terms
	 	 	1	 
	 
	SECTION 1.02 Other Definitional Provisions
	 	 	5	 
	 
	ARTICLE II PURCHASE AND SALE
	 	 	6	 
	 
	SECTION 2.01 Purchase and Sale of the VFN
	 	 	6	 
	 
	SECTION 2.02 Initial Purchase Price
	 	 	6	 
	 
	SECTION 2.03 Increases
	 	 	6	 
	 
	SECTION 2.04 Extension of Purchase Expiration Date
	 	 	8	 
	 
	SECTION 2.05 Reduction of Maximum Funded Amount
	 	 	8	 
	 
	SECTION 2.06 Calculation of Monthly Interest
	 	 	8	 
	 
	SECTION 2.07 Benefits of Indenture
	 	 	8	 
	 
	SECTION 2.08 Broken Funding
	 	 	8	 
	 
	SECTION 2.09 Illegality
	 	 	9	 
	 
	SECTION 2.10 Inability to Determine Eurodollar Rate
	 	 	9	 
	 
	SECTION 2.11 Fees
	 	 	10	 
	 
	ARTICLE III CLOSING
	 	 	10	 
	 
	SECTION 3.01 Closing
	 	 	10	 
	 
	SECTION 3.02 Transactions to be Effected at the Closing
	 	 	10	 
	 
	ARTICLE IV CONDITIONS PRECEDENT TO PURCHASE ON THE CLOSING DATE
	 	 	10	 
	 
	SECTION 4.01 Performance by Cofina Entities
	 	 	11	 
	 
	SECTION 4.02 Representations and Warranties
	 	 	11	 
	 
	SECTION 4.03 Corporate Documents
	 	 	11	 
	 
	SECTION 4.04 Opinions of Counsel
	 	 	11	 
	 
	SECTION 4.05 Reports
	 	 	11	 
	 
	SECTION 4.06 Financing Statements
	 	 	11	 
	 
	SECTION 4.07 Documents
	 	 	11	 
	 
	SECTION 4.08 VFN
	 	 	11	 
	 
	SECTION 4.09 No Actions or Proceedings
	 	 	12	 
	 
	SECTION 4.10 Approvals and Consents
	 	 	12	 
	 
	SECTION 4.11 Officer’s Certificates
	 	 	12	 
	 
	SECTION 4.12 Accounts
	 	 	12	 

i

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	SECTION 4.13 Expenses
	 	 	12	 
	 
	SECTION 4.14 Liens
	 	 	12	 
	 
	SECTION 4.15 Other Documents
	 	 	12	 
	 
	SECTION 4.16 Payment of Fees
	 	 	12	 
	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES OF THE ISSUER
	 	 	12	 
	 
	SECTION 5.01 Representations and Warranties of the Issuer
	 	 	12	 
	 
	SECTION 5.02 Reaffirmation of Representations and Warranties by the Issuer
	 	 	12	 
	 
	ARTICLE VI REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE FUNDING AGENT AND THE PURCHASERS
	 	 	13	 
	 
	SECTION 6.01 Securities Laws; Transfer Restrictions
	 	 	13	 
	 
	SECTION 6.02 Enforceability
	 	 	14	 
	 
	ARTICLE VII COVENANTS
	 	 	14	 
	 
	SECTION 7.01 Covenants
	 	 	14	 
	 
	SECTION 7.02 Incorporation
	 	 	14	 
	 
	ARTICLE VIII INDEMNIFICATION
	 	 	15	 
	 
	SECTION 8.01 Indemnification
	 	 	15	 
	 
	SECTION 8.02 Indemnity for Reserves and Expenses
	 	 	16	 
	 
	SECTION 8.03 Indemnity for Taxes
	 	 	18	 
	 
	SECTION 8.04 Other Costs, Expenses and Related Matters
	 	 	19	 
	 
	ARTICLE IX THE FUNDING AGENT
	 	 	20	 
	 
	SECTION 9.01 Authorization and Action
	 	 	20	 
	 
	SECTION 9.02 Funding Agent’s Reliance, Etc
	 	 	21	 
	 
	SECTION 9.03 Funding Agent and Affiliates
	 	 	21	 
	 
	SECTION 9.04 Indemnification
	 	 	21	 
	 
	SECTION 9.05 Purchase Decision
	 	 	22	 
	 
	SECTION 9.06 Successor Funding Agent
	 	 	22	 
	 
	ARTICLE X MISCELLANEOUS
	 	 	22	 
	 
	SECTION 10.01 Amendments
	 	 	22	 
	 
	SECTION 10.02 Notices
	 	 	22	 
	 
	SECTION 10.03 No Waiver; Remedies
	 	 	23	 
	 
	SECTION 10.04 Binding Effect; Assignability
	 	 	23	 

ii

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	SECTION 10.05 Confidentiality
	 	 	24	 
	 
	SECTION 10.06 GOVERNING LAW; JURISDICTION
	 	 	25	 
	 
	SECTION 10.07 Wavier of Trial by Jury
	 	 	25	 
	 
	SECTION 10.08 Execution in Counterparts
	 	 	25	 
	 
	SECTION 10.09 Survival
	 	 	25	 
	 
	 	 	 	 
	EXHIBIT A            Form of Notice of Increase
	 	 	 	 
	 
	EXHIBIT B            Series 2005-A Officer’s Certificate
	 	 	 	 
	 
	EXHIBIT C            Form of Transfer Supplement
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE I        Addresses for Notices
	 	 	 	 

iii

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