Document:

ex10-2

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

  EXHIBIT
10.2

 

 

 

 

 

LICENSE AND COLLABORATION AGREEMENT

 

 

 

BETWEEN

 

 

 

VISTAGEN THERAPEUTICS, INC.

 

 

AND

 

 EVERINSIGHT THERAPEUTICS INC.

 

 

 

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-1-

 

 

LICENSE AND COLLABORATION AGREEMENT

 

This
LICENSE AND COLLABORATION AGREEMENT (this “Agreement”)
is made as of June 24, 2020 (“Effective Date”), by and
among VistaGen Therapeutics, Inc., a company organized under the
laws Nevada (“VistaGen”), and having an Affiliate of
the same name, and 
EverInsight Therapeutics Inc., a company
incorporated under the laws of the British Virgin Islands
(“EverInsight”) and having a registered address at
Vistra Corporate Services Centre, Wickhams Cay II, Road Town,
Tortola, VG1110, British Virgin Islands. VistaGen and EverInsight
are referred to individually as a “Party” and
collectively as the “Parties.”

 

RECITALS

 

WHEREAS,
VistaGen owns or controls certain intellectual property and
associated data and materials relating to a pharmaceutical compound
known as PH94B, which is an intranasal synthetic neuroactive
steroid product being developed for the treatment of social anxiety
disorder and other anxiety-related disorders;

 

WHEREAS,
VistaGen wishes to grant a license to EverInsight, and EverInsight
wishes to take a license, under such intellectual property and
associated items to develop, manufacture and commercialize PH94B in
certain territories in accordance with the terms and conditions set
forth below;

 

NOW,
THEREFORE, in consideration of the foregoing premises and the
mutual covenants herein contained, the receipt and sufficiency
which are hereby acknowledged, the Parties hereby agree as
follows.

 

ARTICLE 1 DEFINITIONS

 

Unless
the context otherwise requires, the terms in this Agreement with
initial letters capitalized, shall have the meanings set forth
below, or the meaning as designated in the indicated places
throughout this Agreement.

 

1.1            

“Active Pharmaceutical Ingredient”
or “API” means
any substance intended to be used in a pharmaceutical product that
when used becomes an active ingredient of that product intended to
exert a pharmacological, immunological or metabolic action with a
view to restoring, correcting or modifying physiological functions
in man or animal; but excluding formulation components such as
coatings, stabilizers, excipients or solvents, adjuvants or
controlled release technologies.

 

1.2            

“Affiliate” means, with respect to
a Party, any Person that, directly or indirectly through one or
more intermediaries, controls, is controlled by, or is under common
control with that Party, but for only so long as such control
exists. For the purpose of this definition, “control”
(including, with correlative meaning, the terms “controlled
by” and “under common control”) means (a) to
possess, directly or indirectly, the power to direct the management
or policies of an entity, whether through ownership of voting
securities, by contract relating to voting rights or corporate
governance, or otherwise; or (b) direct or indirect beneficial
ownership of more than fifty percent (50%), or such lesser
percentage which is the maximum allowed to be owned by a foreign
corporation in a particular jurisdiction, of the voting share
capital or other equity interest in such entity; provided however
that, notwithstanding the foregoing, EverInsight’s Affiliates
shall not include CBC Group or any of its portfolio
companies.

 

1.3            

“Applicable Laws” means the
applicable provisions of any and all national, supranational,
regional, federal, state and local laws, treaties, statutes, rules,
regulations, administrative codes, guidance, ordinances, judgments,
decrees, directives, injunctions, orders, permits (including MAAs)
of or from any court, arbitrator, Regulatory Authority or
Government Authority having jurisdiction over or related to the
subject item, including the FFDCA, DAL, and the Provisions for Drug
Registration of NMPA.

 

1.4            

“Auditor” has the meaning set forth
in Section 8.10 (Audit Dispute).

 

1.5            

“Business Day” means a day other
than a Saturday, Sunday or a bank or other public holiday in
Mainland China, Hong Kong or the State of California in the United
States.

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-2-

 

 

1.6            

“Calendar Quarter” means each
respective period of three (3) consecutive months ending on 31
March, 30 June, 30 September, and 31 December, except that the
first Calendar Quarter of the Term shall commence on the Effective
Date and end on the day immediately prior to the first 1 January, 1
April, 1 July or 1 October to occur after the Effective Date, and
the last Calendar Quarter shall end on the last day of the
Term.

 

1.7            

“Calendar Year” means each
successive period of 12 calendar months commencing on 1 January and
ending on 31 December except that the first Calendar Year of the
Term shall commence on the Effective Date and end on 31 December of
the year in which the Effective Date occurs and the last Calendar
Year of the Term shall commence on 1 January of the year in which
the Term ends and end on the last day of the Term.

 

1.8            

“CFR” means the U.S. Code of
Federal Regulations.

 

1.9            

“Challenge” means to contest or
assist, directly or indirectly, in the contesting of the validity
or enforceability of any of the VistaGen Patents or EverInsight
Patents (as applicable), in whole or in part, in any court,
arbitration proceeding or other tribunal, including the United
States Patent and Trademark Office and the United States
International Trade Commission. For the avoidance of doubt, the
term “contest” includes: (a) filing an action under 28
U.S.C. §§ 2201-2202 seeking a declaration of invalidity
or unenforceability of any such Patents; (b) citation to the United
States Patent and Trademark Office pursuant to 35 U.S.C. § 301
of prior art patents or printed publications or statements of the
patent owner concerning the scope of any such Patents; (c) filing a
request under 35 U.S.C. § 302 for re-examination of any such
Patents; (d) filing, or joining in, a petition under 35 U.S.C.
§ 311 to institute inter parties review of any such Patents or
any portion thereof; (e) filing, or joining in, a petition under 35
U.S.C. § 321 to institute post-grant review of such Patents or
any portion thereof; (f) provoking or becoming a party to an
interference or a derivation proceeding with an application for any
such Patents pursuant to 35 U.S.C. § 135; (g) filing or
commencing any re-examination, opposition, cancellation, nullity or
similar proceedings against any such Patents in any country; or (h)
any foreign equivalents of subsection (a) through (g) applicable in
the Territory; provided however, notwithstanding the foregoing,
“Challenge” shall not include (i) any action taken
by a Party in response to an action by the other Party to enforce
such Patents against such Party, or (ii) any argument made by
a Party in the course of patent prosecution that distinguish the
inventions claimed in such Party’s Patents from those
inventions claimed in the other Party’s Patent.

 

1.10            

“Claims” means all Third Party
demands, claims, actions, proceedings and liabilities (whether
criminal or civil, in contract, tort or otherwise) for losses,
damages, legal costs and other expenses of any nature.

 

1.11            

“CMC” means chemistry,
manufacturing, and controls.

 

1.12            

“Combination Product” means any
Licensed Product comprised of the following, either formulated
together (i.e., a fixed
dose combination), packaged together and sold for a single price,
or co-administered or jointly provided to patients, whether or not
packaged together: (a) the Compound, and (b) at least one other
API.

 

1.13            

“Commercialization” means the
conduct of all activities undertaken before and after Regulatory
Approval has been obtained relating to the promotion, marketing,
sale and distribution (including importing, exporting, transporting
for commercial sales, customs clearance, warehousing, invoicing,
handling and delivering the Licensed Product to customers) of the
Compound or the Licensed Product, including: (a) sales force
efforts, detailing, advertising, medical education, planning,
marketing, sales force training, and sales and distribution; and
(b) scientific and medical affairs. For clarity, Commercialization
does not include any Development activities, whether conducted
before or after Regulatory Approval. “Commercialize”
and “Commercializing” have correlative
meanings.

 

1.14            

“Commercialization Plan” has the
meaning set forth in Section 7.2 (Commercialization
Plan).

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-3-

 

 

1.15            

“Commercially Reasonable Efforts”
means, with respect to each Party’s obligations under this
Agreement relating to the Development, Manufacturing, and
Commercialization activities with respect to the Compound or the
Licensed Product, the carrying out of such activities using efforts
and resources that are consistent with the exercise of customary
scientific and business practices as applied in the
biopharmaceutical industry for a company of a similar stage and
size as the entity and having similar resources, for development,
regulatory, manufacturing and commercialization activities
conducted with respect to products at a similar stage of
development or commercialization and having similar commercial
potential, taking into account relative safety and efficacy,
product profile, the regulatory environment, payers’ policies
and regulations, competitiveness of the marketplace and the market
potential of such products, the nature and extent of market
exclusivity, including patent coverage and regulatory data
protection, and price and reimbursement status. The Parties hereby
agree that the level of effort may be different for different
markets and may change over time, reflecting changes in the status
of the aforementioned attributes and potential of the Compound and
the Licensed Product. When used regarding obligations under this
Agreement other than the Development, Manufacturing, and
Commercialization activities with respect to the Compound or the
Licensed Product, the term “Commercially Reasonable
Efforts” shall mean the carrying out of such activities using
commercially reasonable efforts and financial, personnel and other
resources that are consistent with the exercise of customary
business practices as applied in the carrying out of such
activities generally by and on behalf of biopharmaceutical
companies of a similar stage and size and having similar
resources.

 

1.16            

“Compound” means PH94B, and all
salt, free acid/base, solvate, hydrate, prodrug, metabolite,
stereoisomer, and enantiomer thereof, and polymorphic forms
thereof.

 

1.17            

“Confidential Information” of a
Party means all Know-How, Inventions, unpublished patent
applications and other information and data of a financial,
commercial, business, operational or technical nature of such Party
that is disclosed or made available by or on behalf of such Party
or any of its Affiliates to the other Party or any of its
Affiliates, whether made available orally, in writing or in
electronic or other form. The terms of this Agreement are the
Confidential Information of both Parties.

 

1.18            

“Control” or “Controlled” means, with respect to
any Know-How, Patents, Regulatory Documentation or other
intellectual property rights, that a Party has the legal authority
or right (whether by ownership, license or otherwise, other than by
virtue of any license granted to such Party by the other Party
pursuant to this Agreement) to grant a license, sublicense, access
or other right (as applicable) under such Know-How, Patents,
Regulatory Documentation or other intellectual property rights to
the other Party on the terms and conditions set forth herein, in
each case without breaching the terms of any agreement with a Third
Party, infringing third party intellectual property, or
misappropriating third party trade secrets.

 

1.19            

“Controlling Party” has the meaning
set forth in Section 9.6 (Invalidity or Unenforceability Defenses
or Actions).

 

1.20            

“Corporate Names” has the meaning
set forth in Section 1.81 (Licensed Trademarks).

 

1.21            

“Cost of Goods” means, with respect
to any Compound or any Licensed Product, [*****].

 

1.22            

“CTA” means a Clinical Trial
Application that is required to initiate a clinical trial for
registering a drug product under the Drug Administration Law of the
People’s Republic of China and the Provisions for Drug
Registration of NMPA, and equivalents thereof under future Chinese
laws and regulations, and the laws and regulations of other
countries and jurisdictions in the Territory, in each as the same
may be amended from time to time.

 

1.23            

“DAL” means the Drug Administration
Law of the People’s Republic of China and the equivalent laws
of other countries and jurisdictions in the Territory, in each as
the same may be amended from time to time.

 

1.24            

“Develop” or “Development” means to develop
(including clinical, non-clinical and CMC development), analyze,
test and conduct preclinical, clinical and all other regulatory
trials for the Compound or Licensed Product, including all
post-approval clinical trials, as well as all related regulatory
activities and any and all activities pertaining to new
Indications, pharmacokinetic studies and all related activities
including work on new formulations, new methods of treatment and
CMC activities including new manufacturing methods.
“Developing” and “Development” have
correlative meanings.

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-4-

 

 

1.25            

“Development Plan” has the meaning
set forth in Section 4.2 (Development Plan).

 

1.26            

“Disclosing Party” has the meaning
set forth in Section 10.1(a) (Duty of Confidence - subsection
(a)).

 

1.27            

“Dispute” has the meaning set forth
in Section 14.10(a) (Dispute Resolution - subsection
(a)).

 

1.28            

“Dollars” means U.S. dollars, and
“$” shall be interpreted accordingly.

 

1.29            

“EverInsight Development Data”
means any non-clinical or clinical data that are generated by
EverInsight through the Development, Manufacture and
Commercialization of the Compound and Licensed Product under this
Agreement, Controlled by EverInsight, and related to the Compound
or any Licensed Product or otherwise included in, or filed in
support of, the Regulatory Documentation filed by EverInsight, its
Affiliates or Sublicensees in the Territory.

 

1.30            

“EverInsight Know-How” means all
Know-How that is generated by EverInsight through the Development,
Manufacture and Commercialization of the Compound and Licensed
Product under this Agreement, Controlled by EverInsight as of the
Effective Date or during the Term, and necessary or reasonably
useful for the Development, Manufacture, Commercialization or other
Exploitation of any Compound or Licensed Product in the Licensed
Field, including EverInsight Sole Inventions, EverInsight’s
interest in any Joint Inventions, EverInsight Development Data and
EverInsight’s Regulatory Documentation.

 

1.31            

“EverInsight Indemnitees” has the
meaning set forth in Section 13.1 (Indemnification by
VistaGen).

 

1.32            

“EverInsight Patents” means
EverInsight Sole Invention Patents and EverInsight’s interest
in the Joint Patents, in each case necessary or reasonably useful
for the Development, Manufacture, Commercialization, or other
Exploitation of the Compound or any Licensed Product for use in the
Licensed Field.

 

1.33            

“EverInsight Sole Inventions” means
any Inventions that are conceived and reduced to practice solely by
employees of, or consultants or service providers to, EverInsight
and its Affiliates, at any time during the Term of this
Agreement.

 

1.34            

“EverInsight Sole Invention
Patents” means any Patents that contain one or more
claims that cover EverInsight Sole Inventions.

 

1.35            

“EverInsight Technology” means the
EverInsight Patents and the EverInsight Know-How.

 

1.36            

“Excluded Claim” has the meaning
set forth in Section 14.10(g) (Dispute Resolution - subsection
(g)).

 

1.37            

“Executive Officers” has the
meaning set forth in Section 3.3(a) (JSC Decision Making -
subsection (a)).

 

1.38            

“Exploit” means to make, have made,
import, use, sell or offer for sale, including to research,
Develop, Commercialize, register, Manufacture, have Manufactured,
hold or keep (whether for disposal or otherwise), have used,
export, transport, distribute, promote, market or have sold or
otherwise dispose of.

 

1.39            

“Exploitation” means the act of
Exploiting the Compound, product or process.

 

1.40            

“FDA” means the United States Food
and Drug Administration or any successor entity
thereto.

 

1.41            

“FFDCA” means the United States
Federal Food, Drug, and Cosmetic Act, as amended from time to time,
together with any rules, regulations and requirements promulgated
thereunder (including all additions, supplements, extensions and
modifications thereto).

 

1.42            

“First Commercial Sale” means, with
respect to any Licensed Product in any jurisdiction in the
Territory, the first arm’s length sale of such Licensed
Product by EverInsight, its Affiliates or Sublicensees to a Third
Party for monetary value for use or consumption of such Licensed
Product by the end user in the general public after Regulatory
Approval for such Licensed Product in such jurisdiction has been
granted. Sales prior to receipt of Regulatory Approval for such
Licensed Product, such as so-called “treatment IND
sales,” “named patient sales,” and
“compassionate use sales,” shall not be construed as a
First Commercial Sale.

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-5-

 

 

1.43            

“GAAP” means the then-current
Generally Accepted Accounting Principles or International Financial
Reporting Standards (IFRS), whichever is adopted as the standard
financial accounting guideline in the United States for public
companies, as consistently applied.

 

1.44            

“Generic Competition” means
[*****].

 

1.45            

“Generic Product” means, with
respect to a Licensed Product, any product that contains the same
Compound as such Licensed Product and that is sold under an
approved Marketing Authorization Application granted by a
Regulatory Authority to a Third Party that is not a Sublicensee of
EverInsight or its Affiliates and did not obtain such product in a
chain of distribution that includes any of EverInsight, its
Affiliates, or its Sublicensees.

 

1.46            

“Good Manufacturing Practices” or
“GMP” shall mean
all applicable Good Manufacturing Practices standards, including,
as applicable, those standards required by any Regulatory Authority
in the Territory.

 

1.47            

“Government Authority” means any
federal, state, national, state, provincial or local government, or
political subdivision thereof, or any multinational organization or
any authority, agency or commission entitled to exercise any
administrative, executive, judicial, legislative, police,
regulatory or taxing authority or power, any court or tribunal (or
any department, bureau or division thereof, or any governmental
arbitrator or arbitral body).

 

1.48            

“Hong Kong” means the Hong Kong
Special Administrative Region of the People’s Republic of
China.

 

1.49            

“IND” means a CTA or any other
investigational new drug application, clinical trial application,
clinical trial exemption or similar or equivalent application or
submission for approval to conduct human clinical investigation
filed with or submitted to the Regulatory Authority in the relevant
jurisdiction in conformance with the requirements of such
Regulatory Authority, including the FDA in the US and NMPA in
Mainland China.

 

1.50            

“Indemnification Claim Notice” has
the meaning set forth in Section 13.3(a) (Notice of
Claim).

 

1.51            

“Indemnified Party” has the meaning
set forth in Section 13.3(a) (Notice of Claim).

 

1.52            

“Indemnifying Party” has the
meaning set forth in Section 13.3(a) (Notice of
Claim).

 

1.53            

“Indication” means a separate and
distinct disease, disorder, illness or health condition for which a
separate MAA approval is required.

 

1.54            

“Indirect Costs” means, with
respect to a multi-regional clinical trial, all Third Party costs
and expenses incurred by VistaGen or EverInsight to conduct such
multi-regional clinical trial that are not directly allocable to a
Party’s territory (or to clinical sites within a
Party’s territory), including, without limitation, fees,
costs and expenses for data management, clinical evaluation
committees, data safety monitoring boards, physician consulting,
investigator meetings, travel, document translation and other
technology solutions and services that are not specific to a
territory or a clinical site within a territory.

 

1.55            

“Initiation” means, with respect to
a clinical trial, the first dosing (whether with investigational
drug, comparator drug or placebo) of the first subject in such
clinical trial.

 

1.56            

“Initial Supply Agreement” has the
meaning set forth in Section 6.3 (Supply Agreement).

 

1.57            

“In-License Agreement” has the
meaning set forth in Section 2.4(b) (In-License
Agreements).

 

1.58            

“Invention” means any technical,
scientific and other know-how and information, trade secrets,
knowledge, technology, means, methods, processes, practices,
formulae, instructions, skills, techniques, procedures,
experiences, ideas, technical assistance, designs, drawings,
assembly procedures, computer programs, apparatuses,
specifications, data, results and other material, including:
biological, chemical, pharmacological, toxicological,
pharmaceutical, physical and analytical, pre-clinical, clinical,
safety, manufacturing and quality control data and information,
including study designs and protocols, assays and biological
methodology process, composition of matter, article of manufacture,
discovery or finding, that is or may be patentable, that is made,
generated, conceived or otherwise invented as a result of a Party
exercising its rights or carrying out its obligations under this
Agreement, whether directly or via its Affiliates, agents or
independent contractors, including all rights, title and interest
in and to the intellectual property rights therein. For clarity,
“Invention” does not include VistaGen Development Data
or EverInsight Development Data.

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-6-

 

 

1.59            

“Joint Steering Committee” or
“JSC” has the
meaning set forth in Section 3.1 (Joint Steering
Committee).

 

1.60            

“Joint Inventions” means any
Inventions that are conceived and reduced to practice by employees
of, or consultants or service providers to, VistaGen or its
Affiliates, on the one hand, jointly with employees of, or
consultants or service providers to, EverInsight or its Affiliates,
on the other hand, at any time during the Term of this Agreement
and that are made, generated, conceived or otherwise invented as a
result of VistaGen and EverInsight exercising their rights or
carrying out their obligations under this Agreement, whether
directly or via their Affiliates, agents or independent
contractors.

 

1.61            

“Joint Patents” means any Patents
that contain one or more claims that cover Joint
Inventions.

 

1.62            

“Know-How” means any information,
including discoveries, improvements, modifications, processes,
methods, techniques, protocols, formulas, data, inventions,
know-how, trade secrets and results, patentable or otherwise,
including physical, chemical, biological, toxicological,
pharmacological, safety, and preclinical and clinical data, dosage
regimens, control assays, and product specifications, but excluding
any Patents.

 

1.63            

“Licensed Field” means all uses in
humans.

 

1.64            

“Licensed Know-How” means all
Know-How that VistaGen (or its Affiliates) Controls as of the
Effective Date or during the Term that is necessary or reasonably
useful for the Development, Manufacture, Commercialization or other
Exploitation of the Compound or any Licensed Product for use in the
Licensed Field in the Territory, including all VistaGen Sole
Inventions, VistaGen’s interest in any VistaGen Joint
Inventions in the Territory, VistaGen Development Data and
VistaGen’s Regulatory Documentation (with respect to Compound
or a Licensed Product).

 

1.65            

“Licensed Manufacturing Know-How”
has the meaning set forth in Section 6.4 (Manufacturing Technology
Transfer).

 

1.66            

“Licensed Patents” means all
Patents Controlled by VistaGen or its Affiliates as of the
Effective Date or during the Term that are necessary or reasonably
useful for the Development, Manufacture, Commercialization, or
other Exploitation of the Compound or any Licensed Product for use
in the Licensed Field in the Territory, including any VistaGen Sole
Invention Patents and VistaGen’s interest in the Joint
Patents in the Territory. [*****].

 

1.67            

“Licensed Product” means any
pharmaceutical product that contains the Compound, alone or in
combination with one or more other molecules or agents in any
dosage form or formulation. For purposes of this Agreement, with
respect to a Licensed Product that has been approved for an initial
Indication, the approval of such License Product for one or more
additional Indications shall not constitute a new and separate
Licensed Product.

 

1.68            

“Licensed Technology” means the
Licensed Patents and the Licensed Know-How.

 

1.69            

“Licensed Trademarks” means any
corporate name or corporate logo (“Corporate Names”) of VistaGen or
its or Affiliates, and any Trademark that consists of or includes
any Corporate Name of VistaGen or its Affiliates, including the
Trademarks, names and logos identified on Exhibit B hereto and such
other Trademarks, names and logos as VistaGen may designate for
Licensed Product in a writing sent to EverInsight from time to time
during the Term.

 

1.70            

“MAA” or “Marketing Authorization
Application” means an application to the appropriate
Regulatory Authority for approval to market a Licensed Product (but
excluding Pricing Approval) in any particular jurisdiction, and all
amendments, renewals and supplements thereto, including, without
limitation, an NDA filed with the FDA in the U.S. and an NDA (or
any future equivalent thereto as defined in the DAL and the
Provisions for Drug Registration) filed with the NMPA in Mainland
China.

 

1.71            

“Mainland China” means the
People’s Republic of China, including Hainan Island, but
excluding Hong Kong, the Macau Special Administrative Region of the
People’s Republic of China and Taiwan.

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-7-

 

 

1.72            

“Manufacture” and
“Manufacturing”
means all activities related to the production, manufacture,
processing, filling, finishing, packaging, labeling, in-process and
finished testing, shipping, storing, or release of a product or any
ingredient or intermediate thereof, including process development,
process qualification and validation, scale-up, pre-clinical,
clinical and commercial manufacture and analytic development,
product characterization, test method development and stability
testing, formulation, quality assurance and quality control of the
any compound, product or intermediate, and regulatory affairs with
respect to the foregoing.

 

1.73            

“Manufacturing Transfer Period” has
the meaning set forth in Section 6.2.

 

1.74            

“Milestone Event” has the meaning
set forth in Section 8.2(a) - (8.2 Development and Regulatory
Milestone Payments - clause (a)).

 

1.75            

“Milestone Payment” has the meaning
set forth in Section 8.2(a) - (8.2 Development and Regulatory
Milestone Payments - clause (a)).

 

1.76            

“NDA” means a New Drug Application
(as more fully defined in 21 C.F.R. §314.5 et seq. or successor regulation) and
all amendments and supplements thereto filed with the FDA and any
other equivalent filing(s) in the Territory.

 

1.77            

“Net Sales” means, [*****]

 

1.78            

“NMPA” means the National Medical
Products Administration of the People’s Republic of China,
formerly known as the China Food and Drug Administration, or its
successor.

 

1.79            

“Patent” means all patents and
patent applications, including all provisionals, divisionals,
reissues, reexaminations, renewals, continuations,
continuations-in-part, substitute applications, priority
applications and inventors’ certificates, extensions and
supplemental certificates and any and all foreign equivalents of
the foregoing.

 

1.80            

“Payment” has the meaning set forth
in Section 8.8(b).

 

1.81            

“Person” means any individual,
partnership, limited liability company, firm, corporation,
association, trust, unincorporated organization or other
entity.

 

1.82            

“PH94B” means the compound known as
PH94B and having the chemical structure shown in Exhibit
C.

 

1.83            

“Phase 1 Clinical Trial” means a
human clinical trial that would satisfy the requirements for a
Phase 1 study as defined in 21 CFR § 312.21(a) (or any amended
or successor regulations) or any equivalent regulations in
jurisdictions in the Territory, regardless of where such clinical
trial is conducted.

 

1.84            

“Phase 3 Clinical Trial” means a
human clinical trial that would satisfy the requirements for a
Phase 3 study as defined in 21 CFR § 312.21(c) (or any amended
or successor regulations) or any equivalent regulations in
jurisdictions in the Territory, regardless of where such clinical
trial is conducted.

 

1.85            

“Pricing Approval” means such
governmental approval, agreement, determination or decision
establishing prices for a Licensed Product that can be charged
and/or reimbursed in a regulatory jurisdiction where the applicable
Government Authority approves or determines the price and/or
reimbursement of pharmaceutical products and where such approval or
determination is necessary for the commercial sale of such Licensed
Product in such jurisdiction.

 

1.86            

“Product Infringement” has the
meaning set forth in Section 9.4(a) (Notice).

 

1.87            

“Product Trademarks” means the
Trademark(s) used or to be used by EverInsight or its Affiliates or
its or their Sublicensees for the Commercialization of Licensed
Product in the Licensed Field in the Territory and any
registrations thereof or any pending applications relating thereto
in the Territory (excluding, in any event, any Corporate Names of
EverInsight, its Affiliates or its or their Sublicensees and any
Licensed Trademarks that consist of or include any Corporate Name
of VistaGen or its Affiliates or (sub)licensees).

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-8-

 

 

1.88            

“Receiving Party” has the meaning
set forth in Section 10.1(a) (Duty of Confidence - subsection
(a)).

 

1.89            

“Regulatory Approval” means, with
respect to a jurisdiction in the Territory, any and all approvals
(including approvals of Marketing Authorization Applications),
licenses, registrations or authorizations of any Regulatory
Authority necessary to commercially distribute, sell or market a
Licensed Product in such jurisdiction, including, where applicable:
(a) pricing or reimbursement approval in such jurisdiction; (b)
pre- and post-approval marketing authorizations (including any
prerequisite Manufacturing approval or authorization related
thereto); and (c) labelling approval.

 

1.90            

“Regulatory Authority” means any
applicable Government Authority responsible for granting Regulatory
Approvals for any Licensed Product, including the FDA, the NMPA,
and any corresponding national or regional regulatory
authorities.

 

1.91            

“Regulatory Documentation” means:
all (a) applications (including all Regulatory Filings, INDs, CTAs
and Marketing Authorization Applications), registrations, licenses,
authorizations and approvals (including Regulatory Approvals); (b)
correspondence and reports submitted to or received from Regulatory
Authorities (including minutes and official contact reports
relating to any communications with any Regulatory Authority) and
all supporting documents with respect thereto, including all
adverse event files and complaint files; and (c) clinical and other
data contained or relied upon in any of the foregoing; in each case
(a), (b) and (c)) relating to the Compound or a Licensed
Product.

 

1.92            

“Regulatory Exclusivity” means any
exclusive marketing rights or data exclusivity rights conferred by
any Regulatory Authority with respect to a pharmaceutical product
other than Patents, and including, without limitation, orphan drug
exclusivity, new chemical entity exclusivity, data exclusivity or
pediatric exclusivity.

 

1.93            

“Regulatory Filings” means, with
respect to the Compound or Licensed Product, any submission to a
Regulatory Authority of any appropriate regulatory application
specific to the Compound or Licensed Product, and shall include,
without limitation, any submission to a regulatory advisory board
and any supplement or amendment thereto. For the avoidance of
doubt, Regulatory Filings shall include any IND, CTA, NDA, MAA,
Regulatory Approval or the corresponding application in any other
country or jurisdiction.

 

1.94            

“Representative” has the meaning
set forth in Section 10.1(c) (Duty of Confidence - Subsection
(c)).

 

1.95            

“Respective Territory” means, in
the case of EverInsight, the Territory, and in the case of
VistaGen, all countries of the world outside the
Territory.

 

1.96            

“Retained Rights” means, with
respect to the Compound and Licensed Product, the rights of
VistaGen, its Affiliates and its and their licensors,
(sub)licensees and contractors to:

 

(a)           perform
VistaGen’s obligations under this Agreement;

 

(b)           Manufacture
and have Manufactured (including CMC and manufacturing process
development work) the Compound or Licensed Product within the
Territory solely for Exploitation outside the
Territory;

 

(c)           Develop
and have Developed the Compound and Licensed Product in the
Territory but only as part of a global Phase 3 Clinical Trial that
EverInsight elects to participate in pursuant to Section 4.4(b);
and

 

(d)           Develop,
Manufacture, Commercialize and otherwise Exploit the Compound and
Licensed Product for any and all purposes outside the
Territory.

 

1.97            

“Royalty Term” has the meaning set
forth in Section 8.4(b) (Royalty Term).

 

1.98            

“SEC” has the meaning set forth in
Section 10.5 (Publicity/Use of Names - subsection
(a)).

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-9-

 

 

1.99            

“Sublicense” means a license or
sublicense granted by EverInsight (or a Sublicensee) to Develop,
make, use, import, promote, offer for sale or sell the Compound or
any Licensed Product, including any license given to any of the
rights granted to EverInsight under Section 2.1(Licenses to
EverInsight).

 

1.100            

“Subcontractor” has the meaning set
forth in Section 2.8 (Subcontracting).

 

1.101            

“Sublicensee” means a Third Party
to whom EverInsight or its Affiliate has granted a Sublicense in
accordance with the terms of this Agreement.

 

1.102            

“Tax” or “Taxes” means any (a) all federal,
provincial, territorial, state, municipal, local, foreign or other
taxes, imposts, rates, levies, assessments and other charges in the
nature of a tax (and all interest and penalties thereon and
additions thereto imposed by any Government Authority), including
without limitation all income, excise, franchise, gains, capital,
real property, goods and services, transfer, value added, gross
receipts, windfall profits, severance, ad valorem, personal
property, production, sales, use, license, stamp, documentary
stamp, mortgage recording, employment, payroll, social security,
unemployment, disability, escheat, estimated or withholding taxes,
and all customs and import duties, together with all interest,
penalties and additions thereto imposed with respect to such
amounts, in each case whether disputed or not; (b) any liability
for the payment of any amounts of the type described in subsection
(a) as a result of being or having been a member of an affiliated,
consolidated, combined or unitary group; and (c) any liability for
the payment of any amounts as a result of being party to any tax
sharing agreement or arrangement or as a result of any express or
implied obligation to indemnify any other person with respect to
the payment of any amounts of the type described in subsection (a)
or (b).

 

1.103            

“Term” has the meaning set forth in
Section 11.1 (Term).

 

1.104            

“Territory” means Greater China
(Mainland China, Taiwan, Hong Kong and Macau), South Korea,
Southeast Asia (Singapore, Malaysia, Thailand, Indonesia,
Philippines, and Vietnam).

 

1.105            

“Third Party” means any Person
other than a Party or an Affiliate of a Party.

 

1.106            

“Third Party Infringement Claim”
has the meaning set forth in Section 9.5 (Infringement claims by
Third Parties).

 

1.107            

“Trademark” means any word, name,
symbol, color, shape, designation or any combination thereof,
including any trademark, service mark, trade name, brand name,
sub-brand name, trade dress, product configuration rights, program
name, delivery form name, certification mark, collective mark,
logo, tagline, slogan, design or business symbol, that functions as
an identifier of source, origin or quality, whether or not
registered, and all statutory and common law rights therein and all
registrations and applications therefor, together with all goodwill
associated with, or symbolized by, any of the
foregoing.

 

1.108            

“Transfer Tax” has the meaning set
forth in Section 8.8(c) (Transfer Tax).

 

1.109            

“United States” or
“U.S.” means the
United States of America including its territories and
possessions.

 

1.110            

“Valid Claim” means, with respect
to any jurisdiction in the Territory, a claim of an issued and
unexpired Licensed Patent (as may be extended through supplementary
protection certificate or patent term extension or the like) that
has not been cancelled, revoked, held invalid or unenforceable by a
decision of a patent office or other Government Authority of
competent jurisdiction from which no appeal can be taken (or from
which no appeal was taken within the allowable time period) and
which claim has not been disclaimed, denied or admitted to be
invalid or unenforceable through reissue, re-examination or
disclaimer or otherwise; provided that in any jurisdiction in the
Territory, a Valid Claim shall cease to be a Valid Claim in such
jurisdiction if its scope is such that it does not reasonably block
or prevent the entry, or Commercialization, of Generic
Products.

 

1.111            

“VistaGen CMO” has the meaning set
forth in Section 6.2 (Manufacturing Technology
Transfer)

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-10-

 

 

1.112            

“VistaGen Development Data” means
any nonclinical or clinical data that are Controlled by VistaGen
and related to the Compound or any Licensed Product or otherwise
included in, or filed in support of, the Regulatory Documentation
filed by VistaGen, its Affiliates, licensees or sublicensees
outside of the Territory.

 

1.113            

“VistaGen Indemnitees” has the
meaning set forth in Section 13.2 (Indemnification by
EverInsight).

 

1.114            

“VistaGen Sole Inventions” means
any Inventions that are conceived and reduced to practice solely by
employees of, or consultants or service providers to, VistaGen, at
any time during the Term of this Agreement and that are made,
generated, conceived or otherwise invented as a result of a Party
exercising its rights or carrying out its obligations under this
Agreement, whether directly or via its Affiliates, agents or
independent contractors.

 

1.115            

“VistaGen Sole Invention Patents”
means any Patents that contain one or more claims that cover
VistaGen Sole Inventions.

 

1.116            

Interpretation. In
this Agreement, unless otherwise specified:

 

(a)            

“includes”
and “including” shall mean, respectively, includes
without limitation and including without limitation;

 

(b)            

words denoting the
singular shall include the plural and vice versa and words denoting
any gender shall include all genders;

 

(c)            

words such as
“herein”, “hereof”, and
“hereunder” refer to this Agreement as a whole and not
merely to the particular provision in which such words appear;
and

 

(d)            

the Exhibits and
other attachments form part of the operative provision of this
Agreement and references to this Agreement shall include references
to the Exhibits and attachments.

 

ARTICLE 2 LICENSES

 

2.1            

License to EverInsight.

 

(a)            

Subject to the
terms and conditions of this Agreement, VistaGen hereby grants to
EverInsight an exclusive (even as to VistaGen), royalty-bearing
license and sublicense, as the case may be, under the Licensed
Technology solely to Exploit Licensed Product in the Licensed Field
in the Territory, with the right to grant sublicenses in accordance
with Section 2.3 (Sublicense Rights).

 

(b)            

In addition,
VistaGen hereby grants to EverInsight a non-exclusive license and
sublicense, as the case may be, under the Licensed Technology to
Manufacture and have Manufactured the Compound and Licensed Product
outside the Territory solely for Exploitation in the Territory,
with the right to grant sublicenses in accordance with Section 2.3
(Sublicense Rights).

 

2.2            

License to VistaGen. Subject to the
terms and conditions of this Agreement, EverInsight hereby grants
to VistaGen an exclusive (even as to EverInsight), royalty-free
license under the EverInsight Technology solely to Exploit Licensed
Product in the Licensed Field outside the Territory, with the right
to grant sublicenses in accordance with Section 2.3 (Sublicense
Rights).

 

2.3            

Sublicense Rights.

 

(a)            

Affiliates. Subject to the terms of this
Section 2.3 (Sublicense Rights), EverInsight may grant a sublicense
of the license granted in Section 2.1 (License to EverInsight)
through multiple tiers to Affiliates of EverInsight without prior
notice to or the prior consent of VistaGen; provided that (i)
Licensed Know-How may only be sublicensed along with the Licensed
Patents; (ii) EverInsight shall cause each Affiliate to comply with
the applicable terms and conditions of this Agreement, as if such
Affiliate were a Party to this Agreement; and (iii) EverInsight
shall be responsible for all actions, activities and obligations to
VistaGen of such Affiliate. Subject to the terms of this Section
2.3 (Sublicense Rights), VistaGen may grant a sublicense of the
license granted in Section 2.2 (License to VistaGen) through
multiple tiers to Affiliates of VistaGen without prior notice to or
the prior consent of EverInsight; provided that (i) EverInsight
Know-How may only be sublicensed along with the EverInsight
Patents; (ii) VistaGen shall cause each Affiliate to comply with
the applicable terms and conditions of this Agreement, as if such
Affiliate were a Party to this Agreement; and (iii) VistaGen shall
be responsible for all actions, activities and obligations to
EverInsight of such Affiliate.

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-11-

 

 

(b)            

Third Parties. Upon the prior written
consent of VistaGen, such consent not to be unreasonably withheld,
conditioned, or delayed, EverInsight may grant a sublicense of the
rights granted under the license in Section 2.1 (License to
EverInsight) through multiple tiers to any Third Party; provided
that (i) Licensed Know-How may only be sublicensed along with the
Licensed Patents (other than in the case of a sublicense to a
fee-for-service Subcontractor in the context of subcontracting
pursuant to Section 2.8 (Subcontracting)); (ii) each sublicense
granted to a Third Party shall be in writing, and shall incorporate
terms and conditions that are consistent with, and expressly made
subject to, the terms and conditions of this Agreement; (iii)
VistaGen shall be provided by EverInsight with a copy of such
sublicense agreement within thirty (30) days of execution, which
copy may redact any financial or other proprietary terms; and (iv)
EverInsight shall be responsible to VistaGen for a breach of this
Agreement due to the breach by such Third Party of such sublicense
agreement. EverInsight hereby waives any requirement that VistaGen
exhaust any right, power or remedy, or proceed against any such
sublicensee for any obligation or performance under this Agreement
prior to proceeding directly against EverInsight. Upon the prior
written consent of EverInsight, such consent not to be unreasonably
withheld, conditioned, or delayed, VistaGen may grant a sublicense
of the rights granted under the license in Section 2.2 (License to
VistaGen) through multiple tiers to any Third Party; provided that
(i) EverInsight Know-How may only be sublicensed along with the
EverInsight Patents (other than in the case of a sublicense to a
fee-for-service Subcontractor pursuant to Section 2.8
(Subcontracting)); (ii) each sublicense granted to a Third Party
shall be in writing, and shall incorporate terms and conditions
that are consistent with, and expressly made subject to, the terms
and conditions of this Agreement; (iii) EverInsight shall be
provided by VistaGen with a copy of such sublicense agreement
within thirty (30) days of execution, which copy may redact any
financial or other priority terms; and (iv) VistaGen shall be
responsible to EverInsight for a breach of this Agreement due to
the breach by such Third Party of such sublicense agreement.
VistaGen hereby waives any requirement that EverInsight exhaust any
right, power or remedy, or proceed against any sublicensee for any
obligation or performance under this Agreement prior to proceeding
directly against VistaGen.

 

2.4            

VistaGen’s Retained Rights; Limitations
of License Grants.

 

(a)            

Retained Rights.

 

(i)            

Notwithstanding
anything to the contrary in this Agreement and without limitation
of any rights granted by or reserved to VistaGen pursuant to any
other term or condition of this Agreement, VistaGen hereby
expressly retains, on behalf of itself and its Affiliates (and on
behalf of its and their direct and indirect Third Party licensors
under any In-License Agreement, (sub)licensees and contractors) all
right, title and interest in and to the Licensed Patents, the
Licensed Know-How, VistaGen Development Data, VistaGen’s
interests in and to Joint Patents and Joint Know-How, Regulatory
Documentation of VistaGen and the Corporate Names of VistaGen and
their Affiliates, in each case, for purposes of performing or
exercising the Retained Rights.

 

(ii)            

Notwithstanding
anything to the contrary in this Agreement and without limitation
of any rights granted by or reserved to EverInsight pursuant to any
other term or condition of this Agreement, EverInsight hereby
expressly retains, on behalf of itself and its Affiliates (and on
behalf of its and their direct and indirect Third Party licensors
under any In-License Agreement, (sub)licensees and contractors) all
right, title and interest in and to the EverInsight Patents, the
EverInsight Know-How, EverInsight Development Data,
EverInsight’s interests in and to Joint Patents and Joint
Know-How, Regulatory Documentation of EverInsight and the Corporate
Names of EverInsight and their Affiliates, in each case, for
purposes of performing its obligations or exercising its rights
under this Agreement, and also for purposes of Manufacturing or
having Manufactured the Compound and Licensed Product outside the
Territory solely for Exploitation in the Territory.

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-12-

 

 

(b)            

In-License Agreements.

 

(1)            

If VistaGen or any
of its Affiliates negotiates with a Third Party at arms’
length to obtain a license to any Know-How or Patent that are
necessary or reasonably useful for the Development, Manufacture,
Commercialization or other Exploitation of the Compound or any
Licensed Product (such Know-How or Patent, “VistaGen Third Party IP”, such
license, an “In-License
Agreement”), then VistaGen shall promptly notify
EverInsight and identify the relevant VistaGen Third Party IP, with
a copy to the JSC. The applicable VistaGen Third Party IP shall be
included in the license granted to EverInsight under Section 2.1
(License to EverInsight) and considered VistaGen Patents and
VistaGen Know-How, respectively, only if VistaGen discloses the
substantive terms of the In-License Agreement to EverInsight, which
VistaGen hereby agrees to do, and EverInsight agrees in writing to
(A) comply with all the relevant obligations of such In-License
Agreement, and (B) pay [*****] of the portion
of all upfront, milestone, royalty and other payments under the
In-License Agreement that are allocable to the Development,
Manufacture or Commercialization of the Compound or any Licensed
Product in the Licensed Field in the Territory; provided, however,
that, such upfront, milestone, royalty and other payments should be
(x) at fair market value for such a license in the Territory; and
(y) directly attributable to the Development, Manufacture or
Commercialization of the Compound or any Licensed Product in the
Licensed Field in the Territory by EverInsight or any of its
Affiliates or any Sublicensees; and (z) for any such payment that
is applicable to the Respective Territories of both Parties (such
as upfront payment), such payment shall be allocated between the
Parties’ Respective Territories based on the relative value
of the market for the Licensed Product in each Party’s
Respective Territory, and EverInsight shall pay [*****] of the portion
allocable to the Territory (for clarity, VistaGen shall be solely
responsible for, and EverInsight shall have no obligation to pay
any portion of, all such payment that is not allocable to the
Territory, such as royalty payment for the sale of Licensed Product
outside the Territory). For the avoidance of doubt, if EverInsight
reasonably determines that such VistaGen Third Party IP under the
In-License Agreement is not necessary for the Development,
Manufacture or Commercialization of the Compound or any Licensed
Product in the Licensed Field in the Territory, EverInsight has the
right not to pay any costs associated with such In-License
Agreement, in which case such VistaGen Third Party IP shall not be
included in the license granted to EverInsight under Section 2.1
(License to EverInsight) and shall not be considered to be VistaGen
Patents and VistaGen Know-How.

 

(2)            

If EverInsight or
any of its Affiliates or Sublicensees negotiates with a Third Party
at arms’ length to obtain a license to any Know-How or Patent
that are necessary or reasonably useful for the Development,
Manufacture, Commercialization or other Exploitation of the
Compound or any Licensed Product and actually applies such Know-How
or Patent in the Development, Manufacture, Commercialization or
other Exploitation of the Compound or any Licensed Product (such
Know-How or Patent, “EverInsight Third Party IP”, such license, an
“EverInsight
In-License
Agreement”), then EverInsight shall promptly notify
VistaGen and identify the relevant EverInsight Third Party IP, with
a copy to the JSC. The applicable EverInsight Third Party IP shall
be included in the license granted by EverInsight to VistaGen under
Section 2.2 (License to VistaGen) and considered EverInsight
Patents and EverInsight Know-How, respectively, only if EverInsight
discloses the substantive terms of such EverInsight In-License
Agreement to VistaGen, which EverInsight hereby agrees to do, and
VistaGen agrees in writing to (A) comply with all the relevant
obligations of such EverInsight In-License Agreement; (B) pay
[*****] of
the portion of all upfront, milestone, royalty and other payments
under the EverInsight In-License Agreement that are allocable to
the Development, Manufacture or Commercialization of the Compound
or any Licensed Product in the Licensed Field in the Territory,
which VistaGen hereby agrees to do; and (C) pay [*****] of the portion
of all upfront, milestone, royalty and other payments applicable to
the Development, Manufacture or Commercialization of the Compound
or any Licensed Product in the Licensed Field outside the
Territory; provided, however, that, such upfront, milestone,
royalty and other payments under clause (B) above should be (x) at
fair market value for such a license in the Territory; and (y)
directly attributable to the Development, Manufacture or
Commercialization of the Compound or any Licensed Product in the
Licensed Field in the Territory by EverInsight or any of its
Affiliates or any Sublicensees; and (z) for any such payment that
is applicable to the Respective Territories of both Parties (such
as upfront payment), such payment shall be allocated between the
Parties’ Respective Territories based on the relative value
of the market for the Licensed Product in each Party’s
Respective Territory, and VistaGen shall pay [*****] of the portion
allocable to the Territory (for clarity, pursuant to clause (C)
above, VistaGen shall be solely responsible for, and shall
reimburse EverInsight for, all such payment that is not allocable
to the Territory, such as royalty payment for the sale of Licensed
Product outside the Territory). For the avoidance of doubt, if
VistaGen reasonably determines that such EverInsight Third Party IP
is not necessary for the Development, Manufacture or
Commercialization of the Compound or any Licensed Product in the
Licensed Field outside the Territory, VistaGen has the right not to
pay the costs associated with such EverInsight In-License Agreement
outside the Territory under clause (C) above (for further clarity,
VistaGen shall remain obligated to pay its share of the costs
associated with such EverInsight In-License Agreement in the
Territory under clause (B) above), in which case such EverInsight
Third-Party IP shall not be included in the license granted to
VistaGen under Section 2.2 (License to VistaGen) and shall not be
considered to be EverInsight Patents and EverInsight Know-How. In
the event that VistaGen does agree to accept such Third-Party
license outside of the Territory, the provisions of clauses (3),
(4) and (5) of this Section 2.4(b) (In-License Agreements) shall
apply, mutatis mutandis, to any such Third Party
license.

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-13-

 

 

(3)            

Subject to this
Section 2.4(b) (In-License Agreements), the licenses granted by
VistaGen in Section 2.1 (License to EverInsight) include
sublicenses solely under the applicable license rights granted to
VistaGen or its Affiliates by Third Parties under the In-License
Agreements. Any Sublicense with respect to Know-How or Patents of a
Third Party hereunder and any right of EverInsight (if any) to
grant a further sublicense thereunder, shall be subject and
subordinate to the terms and conditions of the In-License Agreement
under which such sublicense is granted and shall be effective
solely to the extent permitted under the terms of such agreement.
Without limitation of the foregoing, in the event and to the extent
that any In-License Agreement requires that particular terms or
conditions of such In-License Agreement be contained or
incorporated in any agreement granting a sublicense thereunder,
such terms and conditions are hereby deemed to be incorporated
herein by reference and made applicable to the sublicense granted
herein under such In-License Agreement.

 

(4)            

The Parties shall
cooperate with each other in good faith to support each other in
negotiating rights under EverInsight Third Party IP in order for
VistaGen to obtain such rights outside of the Territory and in
complying with VistaGen’s and its Affiliates’
obligations under each In-License Agreement. Without limitation to
the foregoing, (A) the Parties shall, from time to time, upon the
reasonable request of either Party, discuss the terms of an
In-License Agreement and agree upon, to the extent reasonably
possible, a consistent interpretation of the terms of such
In-License Agreement in order to, as fully as possible, allow
VistaGen and its Affiliates to comply with the terms of such
In-License Agreement; (B) to the extent there is a conflict between
any terms of this Agreement and any terms of any In-License
Agreement (including with respect to sublicensing rights, diligence
obligations, prosecution, maintenance, enforcement, defense, any
obligations for a counterparty to such In-License Agreement to
maintain a Party’s information as confidential and any
obligations for a Party to maintain as confidential the information
of a counterparty to such In-License Agreement), the terms of such
In-License Agreement shall control with respect to the relevant
Know-How, Patents or other rights granted to EverInsight hereunder;
and (C) EverInsight and its Affiliates and Sublicensees shall
comply with any applicable reporting and other requirements under
the In-License Agreements, and the provisions regarding currency
conversion, international payments and late payments, and any other
relevant definitions and provisions, of the relevant In-License
Agreements shall apply to the calculation of the payments due under
the relevant In-License Agreements.

 

(5)            

On an In-License
Agreement-by-In-License Agreement basis, from and after the date on
which EverInsight agrees in writing pursuant to Section 2.4(b)(1)
to accept the Patents and Know-How covered by such In-License
Agreement as Licensed Technology under this Agreement, VistaGen
shall maintain such In-License Agreement in full force and effect,
shall not enter into any subsequent agreement with any other party
to such In-License Agreement that modifies or amends such
In-License Agreement in any way that would materially adversely
affect EverInsight’s rights or interest under this Agreement
without EverInsight’s prior written consent, which shall not
be unreasonably withheld, conditioned or delayed, and shall provide
EverInsight with a copy of all modifications to or amendments of
such In-License Agreement, regardless of whether
EverInsight’s consent was required with respect
thereto.

 

2.5            

Transfer of Know-How. Within
[*****] days
following the Effective Date, VistaGen shall commence disclosing
and making available to EverInsight the Licensed Know-How
(including the VistaGen Development Data therein) necessary or
reasonably required for EverInsight to file a CTA covering a
Licensed Product and to Develop the Compound and Licensed Product
in the Licensed Field in the Territory. In addition, throughout the
Term of this Agreement, VistaGen shall promptly disclose and make
available to EverInsight any Licensed Know-How (including the
VistaGen Development Data therein) that has not previously been
provided to EverInsight, or is developed or generated or otherwise
comes into VistaGen’s Control after the Effective Date. Such
disclosure and transfer shall be made at no additional cost to
EverInsight and according to a timeline mutually agreed by
EverInsight and VistaGen, each of which shall cooperate with each
other in good faith to enable a smooth transfer of the Licensed
Know-How from VistaGen to EverInsight. Upon EverInsight’s
reasonable request during such transfer, VistaGen shall provide
reasonable technical assistance, at no additional cost to
EverInsight, including making appropriate employees available to
EverInsight at reasonable times, places and frequency, and upon
reasonable prior notice, for the purpose of assisting EverInsight
to understand and use the Licensed Know-How in connection with
EverInsight’s filing of such CTA covering such Licensed
Product and the Development of the Compound and Licensed Product in
the Licensed Field in the Territory.

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-14-

 

 

2.6            

No Implied Licenses; Negative Covenant.
Except as set forth herein, no Party shall acquire any license or
other intellectual property interest, by implication or otherwise,
under any Know-How, Patents, trademarks or other intellectual
property rights owned or Controlled by any other Party. EverInsight
hereby covenants not to practice, and not to permit or cause any of
its Affiliates or any Third Party to practice, any Licensed
Technology for any purpose other than as expressly authorized in
this Agreement.

 

2.7            

Non-Diversion.

(a)            

EverInsight hereby
covenants and agrees that it will not, and will ensure that its
Affiliates will not, and will ensure its Sublicensees and
subcontractors are bound by contractual obligations not to, either
directly or indirectly, promote, market, solicit, distribute,
import, sell or have sold Licensed Product outside the Territory.
In furtherance of the foregoing, EverInsight shall not and will
ensure that its Affiliates do not, and shall use Commercially
Reasonable Efforts to ensure that its or their Sublicensees or
distributors do not knowingly distribute, market, promote, offer
for sale or sell the Compound or any Licensed Product directly or
indirectly to any Person outside the Territory or to any Person
inside the Territory that EverInsight or any of its Affiliates or
any of its or their Sublicensees or distributors knows has directly
or indirectly distributed, marketed, promoted, offered for sale or
sold, or has reasonable grounds to believe intends to directly or
indirectly distribute, market, promote, offer for sale or sell, the
Compound or any Licensed Product for use outside the Territory. If
EverInsight or any of its Affiliates receives or becomes aware of
the receipt by it or any Sublicensee or distributor of any orders
for the Compound or any Licensed Product for use outside the
Territory, such Person shall refer such orders to
VistaGen.

 

(b)            

VistaGen hereby
covenants and agrees that it will not, and shall ensure that its
Affiliates will not, and will ensure its licensees and sublicensees
(other than EverInsight, its Affiliates and Sublicensees) and
subcontractors are bound by contractual obligations not to, either
directly or indirectly, promote, market, solicit, distribute,
import, sell or have sold Licensed Product in the Territory. In
furtherance of the foregoing, VistaGen shall not and will ensure
that its Affiliates do not, and shall use Commercially Reasonable
Efforts to ensure that its or their licensees and sublicensees
(other than EverInsight, its Affiliates and Sublicensees) or
distributors do not knowingly distribute, market, promote, offer
for sale or sell the Compound or any Licensed Product directly or
indirectly to any Person in the Territory or to any Person outside
the Territory that VistaGen or any of its Affiliates or any of its
or their licensees or sublicensees (other than EverInsight, its
Affiliates and Sublicensees) or distributors knows has directly or
indirectly distributed, marketed, promoted, offered for sale or
sold, or has reasonable grounds to believe intends to directly or
indirectly distribute, market, promote, offer for sale or sell, the
Compound or any Licensed Product for use in the Territory. If
VistaGen or any of its Affiliates receives or becomes aware of the
receipt by it or any licensees, sublicensee (other than
EverInsight, its Affiliates and Sublicensees) or distributor of any
orders for the Compound or any Licensed Product for use in the
Territory, such Person shall refer such orders to
EverInsight.

 

2.8            

Non-Compete. During the Term of this
Agreement, neither Party shall, and each Party shall cause its
Affiliates and their respective Sublicensees not to, directly or
indirectly, enable or assist any Person that is not a Party to this
Agreement to, Develop, Manufacture or Commercialize any intra-nasal
formulation of Androstadienol in the Territory for the treatment of
social anxiety disorder, other than the Compound and the Licensed
Product in accordance with this Agreement (the “Competing Product”). If
EverInsight requests a waiver of this Section with regard to a
particular product and/or a particular transaction, VistaGen will
in good faith give due consideration to such request.
Notwithstanding the foregoing, if EverInsight is acquired by or
merges or consolidates with a Third Party that, at the time of such
acquisition, is actively Developing, Manufacturing and/or
Commercializing a Competing Product in the Territory, then the
activities of EverInsight, its Affiliates and their respective
Sublicensees under and in accordance with the terms of such license
agreement and the activities of such Third Party acquirer for the
continued development, manufacturing and/or commercialization of
the Competing Product, respectively, shall not be deemed to breach
this Section 2.8.

 

2.9            

Subcontracting. Notwithstanding Section
2.3 (Sublicense Rights), each Party may, without the other
Party’s consent, subcontract on a fee-for-service basis with
a Third Party to perform any or all of its obligations hereunder (a
“Subcontractor”), including by
appointing one or more distributors, and grant a sublicense to the
Subcontractor solely to the extent necessary to perform such
subcontracted obligations; provided that (a) no such permitted
subcontracting shall relieve the subcontracting Party of any
obligation hereunder (except to the extent satisfactorily performed
by such Subcontractor) or any liability and the subcontracting
Party shall be and remain fully responsible and liable therefor;
(b) the agreement pursuant to which the subcontracting Party
engages any Subcontractor must be consistent in all material
respects with this Agreement, including terms consistent with the
confidentiality, restrictions on use and intellectual property
provisions of this Agreement, and (c) the subcontracting Party
shall be responsible to the other Party for the breach of this
Agreement due to breach of any subcontracting agreement by its
Subcontractors. The subcontracting Party hereby waives any
requirement that the other Party exhaust any right, power or
remedy, or proceed against any Subcontractor for any obligation or
performance under this Agreement prior to proceeding directly
against the subcontracting Party.

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-15-

 

 

2.10            

Statements and Compliance with Applicable
Laws. Each Party shall and shall cause its Affiliates and
its and their respective licensees and Sublicensees to comply with
all Applicable Laws with respect to the Exploitation of Licensed
Product, including the extranational application of U.S. laws and
regulations as related, for example, to regulatory matters, export
controls and transfer of technology to certain countries and to
foreign corrupt practices. Each Party shall, and shall cause its
Affiliates to, and shall use Commercially Reasonable Efforts to
cause its and their licensees, Sublicensees, employees,
representatives, agents, and distributors to avoid taking, or
failing to take, any actions that such Party knows or reasonably
should know would jeopardize the goodwill or reputation of the
other Party or its Affiliates or the Licensed Product or any
Trademark associated therewith. Without limitation to the
foregoing, each Party shall in all material respects conform its
practices and procedures relating to the Commercialization of the
Licensed Product and educating the medical community in its
Respective Territory with respect to the Licensed Product to any
applicable industry association regulations, policies and
guidelines, as the same may be amended from time to time, and
Applicable Laws. Each Party agrees that in performing its
obligations under this Agreement, it will not employ or engage any
Person who has been debarred or disqualified by any Regulatory
Authority, or, to its knowledge, is the subject of debarment or
disqualification proceedings by a Regulatory
Authority.

 

2.11            

Section 365(n). All rights and licenses
granted under or pursuant to this Agreement by VistaGen or
EverInsight are, and will otherwise be deemed to be, for the
purposes of Section 365(n) of the U.S. Bankruptcy Code, and any
similar law in the Territory, licenses of rights to
“intellectual property” as defined under Section 101 of
the U.S. Bankruptcy Code or any similar law in the Territory. The
Parties agree that each Party, as licensees of such rights under
this Agreement, will retain and may fully exercise all of its
rights and elections under the U.S. Bankruptcy Code or any similar
law in the Territory. The Parties further agree that, in the event
of the commencement of a bankruptcy proceeding by or against either
Party under the U.S. Bankruptcy Code or any similar law in the
Territory, the Party that is not a party to such proceeding will be
entitled to a complete duplicate of (or complete access to, as
appropriate) any such intellectual property and all embodiments of
such intellectual property, and same, if not already in their
possession, will be promptly delivered to them (a) upon any such
commencement of a bankruptcy proceeding upon their written request
therefor, unless the Party subject to such proceeding elects to
continue to perform all of its obligations under this Agreement, or
(b) if not delivered under (a) above, following the rejection of
this Agreement by or on behalf of the Party subject to such
proceeding upon written request therefor by the non-subject
party.

 

2.12            

Technology Escrow. Promptly after the
Effective Date, VistaGen shall deposit all existing Licensed
Know-How (for clarity, including all Licensed Manufacturing
Know-How) with an escrow agent selected by EverInsight and
reasonably acceptable to VistaGen and pursuant to an escrow
agreement that requires the escrow agent to release the Licensed
Know-How to EverInsight upon the commencement of a bankruptcy
proceeding by or against VistaGen under the U.S. Bankruptcy Code or
any similar law in the Territory. Throughout the term of this
Agreement, VistaGen shall periodically (no less than annually)
update such technology escrow to include any new Licensed Know-How
that is developed or generated or otherwise comes into
VistaGen’s Control after the Effective Date. The Parties
shall share equally the cost of establishing and maintaining such
technology escrow.

 

ARTICLE 3 GOVERNANCE

 

3.1            

Joint Steering Committee. As soon as
practicable after the Effective Date, the Parties shall establish a
joint steering committee (the “Joint Steering Committee” or the
“JSC”), composed
of equal number of representatives of VistaGen and representatives
of EverInsight, to coordinate the Development and Commercialization
of the Compound and Licensed Product in the Licensed Field in the
Territory. Each JSC representative shall have appropriate knowledge
and expertise and sufficient seniority within the applicable Party
to make decisions arising within the scope of the JSC’s
responsibilities. The JSC shall:

 

(a)            

serve as a forum
for discussing Development of the Compound and Licensed Product in
the Licensed Field in the Territory, including by reviewing the
Development Plan and coordinating the conduct of the Development
activities;

 

(b)            

serve as a forum
for discussing the Manufacture and supply of Compound and Licensed
Product in the Licensed Field in the Territory, including by
reviewing the Development strategy and Commercialization strategy
for the Territory and coordinating the conduct of the Manufacturing
and supply activities;

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-16-

 

 

(c)            

serve as a forum
for discussing Development of the Compound and Licensed Product in
the Licensed Field in the Territory, including by (i) providing
EverInsight with a forum at each meeting to disclose
EverInsight’s, or its Affiliates’ or
Sublicensees’ activities with respect to achieving Regulatory
Approvals of Licensed Product in the Territory; material clinical
study results; and the Marketing Authorization Applications that
EverInsight or any of its Affiliates reasonably expect to make,
seek or attempt to obtain in the Territory; (ii) reviewing the
current Development Plan and, with the JSC’s approval, making
any amendments or updates to the Development Plan; and (iii)
coordinating the conduct of the Development
activities;

 

(d)            

serve as a forum to
keep EverInsight updated on the Development of the Compound and
Licensed Product in the Licensed Field outside the Territory,
including material clinical study results and any Marketing
Authorization Application for the Licensed Product filed outside
the Territory;

 

(e)            

coordinate the
activities of VistaGen and EverInsight under this
Agreement;

 

(f)            

establish a Joint
Manufacturing Committee to enable regular information exchange on
CMC issues, discuss possible costs reductions and review potential
CMOs and prepare joint manufacturing plans, transfers and
selections of joint manufacturing partners, and a Joint
Commercialization Committee for discussing and coordinating the
launch activities for the Licensed Product (for clarity, neither
such subcommittee nor the JSC shall have any decision making
authority over commercialization of the Licensed Product anywhere
in the Territory); and

 

(h)            

perform such other
functions as are set forth herein or as the Parties may mutually
agree in writing, except where in conflict with any provision of
this Agreement.

 

The JSC
shall have only such powers as are expressly assigned to it in this
Agreement, and such powers shall be subject to the terms and
conditions of this Agreement. For clarity, the JSC shall not have
any right, power or authority: (i) to determine any issue in a
manner that would conflict with the express terms and conditions of
this Agreement; or (ii) to modify or amend the terms and conditions
of this Agreement.

3.2            

JSC Membership and
Meetings.

 

(a)            

JSC Members. Each Party will designate
equal number (at least two) of representatives to the JSC within
thirty (30) days after the Effective Date. Each Party may replace
its JSC representatives on written notice to the other Party, but
each Party shall strive to maintain continuity. The Alliance
Managers shall jointly prepare and circulate the meeting agenda at
least five (5) Business Days in advance of each meeting, and shall
also promptly, but in no event later than thirty (30) days after
such meeting, prepare and circulate for review and approval of the
Parties the minutes of such meeting.

 

(b)            

JSC Meetings. The JSC will hold its
first meeting within thirty (30) days of establishment of the JSC
pursuant to Section 3.1 (Joint Steering Committee). At this first
meeting, the JSC will address the initial transfer of Licensed
Know-How provided for in Section 2.5 (Transfer of Know-How) and any
other topics the Parties deem appropriate. Thereafter, the JSC
shall hold meetings at such times as it elects to do so, but in no
event shall such meetings be held less frequently than once per
Calendar Quarter. Meetings may be held in person, or by audio or
video teleconference; provided, that unless otherwise agreed by
VistaGen and EverInsight, at least one (1) meeting per year shall
be held in person, and all in-person JSC meetings shall be held at
locations mutually agreed upon by VistaGen and EverInsight. Each
Party shall be responsible for all of its own expenses of
participating in JSC meetings.

 

(c)            

Non-Member Attendance. Each of VistaGen
and EverInsight may from time to time invite a reasonable number of
participants, in addition to its representatives, to attend JSC
meetings in a non‐voting capacity; provided, that if either
VistaGen or EverInsight intends to have any Third Party (including
any consultant) attend such a meeting, such Party shall provide at
least five (5) Business Days’ prior written notice to the
other Party and obtain the other Party’s approval for such
Third Party to attend such meeting, which approval shall not be
unreasonably withheld or delayed. Such Party shall ensure that such
Third Party is bound by confidentiality and non-use obligations
consistent with the terms of this Agreement. The Party inviting any
such Third Party shall be responsible for all of such Third
Party’s costs and expenses of participating in JSC meetings,
unless such invitation is mutually made by VistaGen and
EverInsight, in which case they shall equally share such costs and
expenses.

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-17-

 

 

3.3            

JSC Decision-Making. All decisions of
the JSC shall be made by unanimous vote, with VistaGen’s
representatives and EverInsight’s representatives each
collectively having one (1) vote. If after reasonable discussion
and good faith consideration of each of their views on a particular
matter before the JSC, the representatives of VistaGen and
EverInsight cannot reach an agreement as to such matter within
thirty (30) calendar days after such matter was brought to the JSC
for resolution, such disagreement shall:

 

(a)            

be referred to the
Chief Executive Officer of VistaGen (or his or her designee) and
the Chief Executive Officer of EverInsight (or his or her designee)
(collectively, the “Executive
Officers”) for resolution, who shall use good faith
efforts to resolve such matter within forty-five (45) calendar days
after it is referred to them and, if such matter is resolved by the
Executive Officers, such resolution shall be implemented by and
binding on the Parties.

 

(b)            

If the Executive
Officers are unable to reach consensus on any such matter during
such forty-five (45) calendar day period, then

 

(i) the
Chief Executive Officer of EverInsight shall have the right to make
the final decision if such matter (A) involves the Development of,
Regulatory Approval for, Commercialization or other Exploitation of
the Compound or a Licensed Product in the Territory and (B) is not
reasonably expected to have a material adverse effect on the
Development of, Regulatory Approval for, Commercialization or
Exploitation of the Compound or a Licensed Product outside the
Territory;

 

(ii)
the Chief Executive Officer of VistaGen shall have the right to
make the final decision if such matter (A) involves the Development
of, Regulatory Approval for, Commercialization or other
Exploitation of the Compound or a Licensed Product outside the
Territory, and (B) is not reasonably expected to have a material
adverse effect on the Development of, Regulatory Approval for, or
Commercialization or Exploitation of the Compound or a Licensed
Product in the Territory; or

 

(iii)
in all other cases, such matter will be resolved in accordance with
Section 14.10 (Dispute Resolution).

 

(c)            

If the Parties
dispute whether a matter subject to the decision making mechanism
set forth above is reasonably expected to have a material adverse
effect on the Development of, Regulatory Approval for, or
Commercialization or Exploitation of the Compound or a Licensed
Product in a Party’s Respective Territory, such dispute shall
be resolved by an independent, impartial and conflicts-free Third
Party expert, who shall be experienced in the global aspects of the
development, manufacture and commercialization of pharmaceutical
products similar to the Licensed Product (the “Expert”). For clarity, such
dispute shall not be subject to the dispute resolution mechanism
set forth in Section 14.10. Within fifteen (15) days after a Party
alleges material adverse impact in its Respective Territory as set
forth above and the other Party disagrees with such allegation, the
Parties shall mutually agree upon the Expert and, as promptly as
possible thereafter, the Parties shall jointly retain the Expert.
If the Parties are unable to agree on a mutually acceptable Expert
within such fifteen (15) day period, each Party will select one (1)
Expert and those two (2) Party selected Experts will select a third
Expert within ten (10) days thereafter, and such third Expert shall
be the sole Expert to resolve such dispute in accordance with this
Section 3.3(c). Each Party shall bear its own costs associated such
Expert decision and share the costs of the Expert equally. The
determination of the Expert shall be binding on the Parties and the
Parties shall act in accordance with the Expert’s
decision.

 

3.4            

Alliance Manager. Each Party will assign
an Alliance Manager, who will be a non-voting member of the JSC and
the primary contact for all non-technical matters of governance,
who will organize JSC meetings as reasonably necessary and lead the
drafting of minutes. Either Alliance Manager may also call for
ad-hoc meetings if one of the Parties deems that
necessary.

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-18-

 

 

ARTICLE 4 DEVELOPMENT

 

4.1            

General. Subject to the terms and
conditions of this Agreement (including without limitation the
Retained Rights), EverInsight shall be solely responsible for the
Development of the Compound and Licensed Product in the Licensed
Field in the Territory, including the performance of preclinical
and clinical studies of any Compound or any Licensed Product in the
Licensed Field in the Territory. Notwithstanding the foregoing,
VistaGen shall be solely responsible for conducting a six (6) month
rat toxicology study in China, which study will be conducted by
[*****] at
VistaGen’s own cost and expense.

 

4.2            

Development Plan. EverInsight’s
initial plan for the Development of the Compound and Licensed
Product (the “Development
Plan”) is attached hereto as Exhibit D. The
Development Plan will include, among other things, critical
activities to be undertaken, certain timelines, go/no go decision
points and relevant decision criteria and certain allocations of
responsibilities between the Parties to facilitate the
registration, launch, and Commercialization of the Compound and
Licensed Product in the Territory. The Development Plan will be
focused on efficiently obtaining Regulatory Approval for a Licensed
Product in the Licensed Field in the Territory, with an emphasis on
Mainland China and South Korea. EverInsight shall conduct all
Development of the Compound and Licensed Product in the Licensed
Field in the Territory in accordance with the Development Plan. The
Development Plan also shall take into consideration Development,
Regulatory Approval, or commercial impacts on the Licensed Product
outside the Licensed Field and Territory. From time to time, but at
least once per Calendar Year, EverInsight will, with the assistance
of the JSC, update the Development Plan and submit such updated
plan to the JSC for review, discussion, and approval. Any
disagreement or dispute in the JSC regarding the Development Plan
shall be resolved in the manner set forth in Section 3.3 (JSC
Decision-Making). If any updated or new terms of the Development
Plan contradict, or create inconsistencies or ambiguities with, the
terms of this Agreement, then the terms of this Agreement shall
govern.

 

4.3            

Diligence.

 

(a)            

Commercially Reasonable Efforts by
EverInsight. EverInsight, directly and/or with or through
its Affiliates or Sublicensees, shall use Commercially Reasonable
Efforts to Develop and obtain Regulatory Approval for the Compound
and the Licensed Product in the Licensed Field in Mainland China
and South Korea in accordance with the Development
Plan.

 

(b)            

Commercially Reasonable Efforts by
VistaGen. VistaGen, directly and/or with or through its
Affiliates or Sublicensees, shall use Commercially Reasonable
Efforts to Develop and obtain Regulatory Approval for the Compound
and the Licensed Product in the Licensed Field in the
U.S.

 

4.4            

Development Costs.

 

(a)            

As between the
Parties, EverInsight shall be solely responsible for the cost for
the Development of the Compound and the Licensed Product in the
Licensed Field in the Territory and VistaGen shall be solely
responsible for the cost for the Development of the Compound and
the Licensed Product in the Licensed Field outside the Territory,
except as otherwise provided in Section 4.1 and 4.4(b). For
clarity, VistaGen shall be responsible for the cost of the
toxicology study to be conducted in China as described in Section
4.1.

(b)            

EverInsight shall
have the option, but not the obligation, to participate in global
Phase 3 Clinical Trial and long-term safety study in social anxiety
disorder conducted by VistaGen (or its Affiliates or
(sub)licensees) to support Regulatory Approval in the Territory.
VistaGen shall keep EverInsight informed on its global development
plan for the Compound and Licensed Product. Before initiating any
global Phase 3 Clinical Trial and long-term safety study for the
Licensed Product, VistaGen shall notify EverInsight and provide
EverInsight with relevant study plan and protocol for review and
consideration. If EverInsight elects to participate in such global
Phase 3 Clinical Trial or long-term safety study, then the Parties
shall ensure that sufficient number of subjects in the Territory
are enrolled in such clinical trial in order to support Regulatory
Approval in the Territory, and EverInsight shall (i) be responsible
for the conduct of, and all direct costs and expenses of
conducting, such clinical trial in the Territory (provided however
that if VistaGen requests in writing that EverInsight enrolls in
the Territory more subjects than the minimum number required for
Regulatory Approval in the Territory, then the Parties shall
discuss such request in good faith, and if EverInsight agrees to
enroll such excess subjects, VistaGen shall reimburse EverInsight
for the clinical trial cost for such excess subjects); and (ii) pay
or reimburse VistaGen for a pro
rata portion (based on the number of subject enrolled in the
Territory vs worldwide in such clinical trial) of all of the
Indirect Costs of such global clinical trial outside of the
Territory, not to exceed [*****] of the total
Indirect Costs of such global clinical trial. VistaGen shall
provide EverInsight with reasonable supporting documents (including
Third Party invoices) for the Indirect Costs of such global
clinical trial. For clarity and notwithstanding the foregoing, the
cost sharing in this subsection (b) shall not apply to the first
U.S. Phase 3 Clinical Trial, the cost of which shall be solely born
by VistaGen.

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-19-

 

 

4.5            

Development Records and
Reports.

 

(a)            

EverInsight shall,
and shall cause its Affiliates and its and their Sublicensees to,
maintain, in good scientific manner, complete and accurate records
and reports pertaining to Development of Licensed Product
hereunder, in sufficient detail for VistaGen to verify
EverInsight’s compliance with its obligations under this
Agreement. Such records and reports shall (i) be summarized in
English in sufficient detail for VistaGen to verify
EverInsight’s compliance with its obligations under this
Agreement and for VistaGen to properly use such records and reports
for patent and regulatory purposes, (ii) be appropriate for patent
and regulatory purposes; (iii) be in compliance with Applicable
Laws; (iv) properly reflect all work done and results achieved in
the performance of its Development activities hereunder; (v) record
only such activities and not include or be commingled with records
of activities outside the scope of this Agreement; and (vi) be
retained by EverInsight for at least five (5) years after the
expiration or termination of this Agreement in its entirety or for
such longer period as may be required by Applicable
Laws.

 

(b)            

Starting on
[*****],
EverInsight shall provide VistaGen with an annual written report
summarizing in sufficient detail for VistaGen to verify
EverInsight’s compliance with its obligations under this
Agreement (i) the Development activities conducted in the preceding
Calendar Year by it and its Affiliates and Sublicensees, and (ii)
the Development activities planned to be conducted in such Calendar
Year by it and its Affiliates and Sublicensees. If at any time
VistaGen’s representatives on the JSC are not fully able to
perform their rights and duties on the JSC in the absence of a
review of any of such books and records, EverInsight shall, upon
reasonable written request from such JSC representative, provide a
copy of such records to the JSC.

 

ARTICLE 5 REGULATORY

 

5.1            

Regulatory Responsibilities. EverInsight
shall be responsible, at its cost and subject to the Retained
Rights and except as set forth in this ARTICLE 5, for all
regulatory activities necessary to prepare, obtain and maintain
Marketing Authorization Applications, Regulatory Filings and other
Regulatory Approvals for the Compound and Licensed Product in the
Licensed Field in the Territory. EverInsight shall keep VistaGen
informed of regulatory developments related to the Compound or
Licensed Product in the Licensed Field in the Territory via the
JSC.

 

5.2            

Regulatory Reports. Starting on
[*****],
EverInsight shall provide VistaGen with an annual written report
summarizing the clinical data and safety results generated from the
regulatory activities performed in the preceding Calendar Year by
it and its Affiliates and Sublicensees, in sufficient detail for
VistaGen to verify EverInsight’s compliance with its
obligations under this Agreement and for VistaGen to properly use
data and results for patent and regulatory purposes.

 

5.3            

Regulatory Cooperation.

 

(a)            

EverInsight. EverInsight shall notify
VistaGen of all material Regulatory Documentation submitted or
received by EverInsight or its Affiliates or Sublicensees that are
related to any Licensed Product in the Territory reasonably prior
to such submission or reasonably after receipt. Moreover, with
respect to Regulatory Filings in the Territory, EverInsight will
provide VistaGen with the draft of such Regulatory Filings and an
English summary thereof reasonably prior to submission so that
VistaGen may have reasonable opportunity to review and comment on
them. EverInsight shall consider all comments of VistaGen in good
faith, taking into account the best interests of the Development,
Regulatory Approval and/or Commercialization of the Licensed
Product, but has no obligation to accept any comments of VistaGen,
except to the extent that ignoring such comment could reasonably be
expected to have a material adverse effect on the Development of,
Regulatory Approval for, or Commercialization or Exploitation of
the Compound or a Licensed Product outside the Territory. Material
submissions made by EverInsight to, or correspondence with,
Regulatory Authorities will be provided to VistaGen reasonably in
advance to enable translation by VistaGen, if any such submissions
or correspondence are not available in English. VistaGen shall not
provide any Regulatory Documentation of EverInsight, its
Affiliates, or Sublicensees to any of VistaGen’s sublicensees
who does not agree pursuant to Section 5.3(b) (VistaGen) to permit
its Regulatory Documentation to be shared with EverInsight, its
Affiliates, and its Sublicensees.

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-20-

 

 

(b)            

VistaGen. VistaGen shall provide or make
available to EverInsight copies of all material Regulatory
Documentation submitted or received by VistaGen or its Affiliates
that are related to any Licensed Product outside the Territory
reasonably after such submission or receipt. VistaGen shall use
Commercially Reasonable Efforts to negotiate an agreement with each
sublicensee to make available to EverInsight copies of all material
Regulatory Documentation that are related to any Licensed Product
outside the Territory that are Controlled by its such sublicensee.
Upon reasonable request, VistaGen will support EverInsight’s
regulatory filing efforts, as necessary, and in alignment with
VistaGen’s formal role as the global study sponsor. This may
include participation in certain meetings with regulatory
authorities, if requested by EverInsight, and signing or co-signing
the clinical study site contracts, if global sponsor’s
signature is required by the study site in the Territory. Due to
requirement by many leading clinical trial hospitals in China that
the global sponsor listed on the protocol is a party to the site
contracts, VistaGen agrees to accept this responsibility.
EverInsight shall indemnify VistaGen for such contractual
liabilities in the Territory.

 

(c)            

Confidentiality. Any information of a
Party to which the other Party obtains access pursuant to this
Section 5.3 (Regulatory Cooperation) shall, subject to ARTICLE 10
(Confidentiality; Publication), be deemed the Confidential
Information of such first Party.

 

5.4            

Rights of Reference.

 

(a)            

Without any
additional consideration to VistaGen, VistaGen hereby grants to
EverInsight and its Affiliates and Sublicensees a Right of
Reference and Use, as that term is defined in 21 C.F.R. §
314.3(b) and any foreign counterpart to such regulation, to all
VistaGen Regulatory Documentation and the VistaGen Development Data
to the extent necessary or reasonably useful for EverInsight to
Exploit the Compound or Licensed Product in the Licensed Field in
the Territory.

 

(b)            

Without any
additional consideration to EverInsight, EverInsight hereby grants
to VistaGen and its Affiliates, and any current or future direct or
indirect (sub)licensee of VistaGen with respect to the Compound or
a Licensed Product, a Right of Reference and Use, as that term is
defined in 21 C.F.R. § 314.3(b) and any foreign counterpart to
such regulation, to the EverInsight Development Data to the extent
necessary or reasonably useful for VistaGen to Exploit the
Compound, Licensed Product(s) in the Licensed Field outside of the
Territory.

 

(c)            

Promptly after a
Party, its Affiliate or its or their licensees or Sublicensees
generate(s) any VistaGen Development Data or EverInsight
Development Data (as applicable), such Party shall provide the
other Party with copies of such data, and the other Party may use
such data pursuant to the license granted to it under Section 2.1
or 2.2 (as applicable).

 

(d)            

Each Party will
provide a signed statement to this effect, if requested by the
other Party, that is consistent with the requirements of 21 C.F.R.
§ 314.50(g)(3) or any foreign counterpart to such regulation,
in the case of a request by either Party, for the limited purpose
described in this Section 5.4 (Rights of Reference).

 

(e)            

Other than as
expressly set forth in this Section 5.4 (Rights of Reference),
nothing in this Section 5.4 shall require either Party to take, or
forbear to take, any action.

 

(f)            

Any information of
a Party to which the other Party obtains access pursuant to this
Section 5.4 (Rights of Reference) shall, subject to Sections 10.1
(Duty of Confidence) and 10.2 (Exceptions), be deemed the
Confidential Information of such first Party. For avoidance of
doubt, a Party’s submission of information of the other Party
to which such Party obtains access pursuant to this Section 5.4
(Rights of Reference) to a Regulatory Authority shall be governed
by and subject to the terms of ARTICLE 10 (Confidentiality;
Publication).

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-21-

 

 

5.5            

Recalls, Suspensions or Withdrawals.
Each Party shall notify the other Party promptly following its
determination that any event, incident or circumstance has occurred
that would reasonably be expected to result in the need for a
recall, market suspension or market withdrawal of a Licensed
Product in the Licensed Field and shall include in such notice the
reasoning behind such determination and any supporting facts. As
between the Parties, EverInsight shall have the right to make the
final determination whether to voluntarily implement any such
recall, market suspension or market withdrawal in the Licensed
Field in the Territory; provided that prior to any implementation
of such a recall, market suspension or market withdrawal,
EverInsight shall consult with VistaGen and shall consider
VistaGen’s comments in good faith. If a recall, market
suspension or market withdrawal is mandated by a Regulatory
Authority in the Territory, as between the Parties, EverInsight
shall initiate such a recall, market suspension or market
withdrawal in compliance with Applicable Laws. For all recalls,
market suspensions or market withdrawals undertaken pursuant to
this Section 5.5 (Recalls, Suspensions or Withdrawals), as between
the Parties, EverInsight shall be solely responsible for the
execution thereof. Subject to ARTICLE 13 (Indemnification;
Liability), EverInsight shall be responsible for all costs and
expenses of any such recall, market suspension or market
withdrawal. Notwithstanding the foregoing, any recall, market
suspension or market withdrawal that relates to the Manufacture and
supply of a Compound or Licensed Product by VistaGen to EverInsight
shall be governed by the terms and conditions of the Initial Supply
Agreement.

 

5.6            

Pharmacovigilance Agreement; Global Safety
Database. The Parties shall enter into a pharmacovigilance
agreement at least [*****] days prior to
the Initiation of any Clinical Trial of Licensed Product(s) by
EverInsight in the Territory providing for the terms pursuant to
which (i) VistaGen shall establish, hold and maintain (at
VistaGen’s sole cost and expense) the global safety database
for Licensed Product and (ii) the Parties will establish a mutually
agreed procedure for safety data sharing, adverse event reporting
and prescription events monitoring related to the Licensed
Product(s), which procedure shall be in accordance with, and enable
the Parties to fulfill, their respective regulatory reporting
obligations under, all applicable laws. Each Party shall be
responsible for reporting safety data, adverse events, quality
complaints related to the Products to the global safety database
and to the applicable Regulatory Authorities in its Respective
Territory, as well as responding to safety issues and to all
requests of Regulatory Authorities related to the Licensed Product
in its Respective Territory, in each case at its own cost. VistaGen
shall provide EverInsight with access to the global safety database
to allow EverInsight to comply with its regulatory reporting
obligations under applicable laws in the Territory.

 

5.7            

Regulatory Inspections. If any
Regulatory Authority (i) contacts a Party, its Affiliates or their
respective licensees or Sublicensees with respect to the alleged
improper Development, Manufacture or Commercialization of any
Licensed Product; (ii) conducts, or gives notice of its intent to
conduct, an inspection at such Party’s, its Affiliate’s
or licensee’s or Sublicensee’s facilities used in the
Development or Manufacturing of Licensed Product or (iii) takes, or
gives notice of its intent to take, any other regulatory action
with respect to any activity of such Party, its Affiliates or
licensees or Sublicensees that could reasonably be expected to
materially adversely affect any Development, Manufacture or
Commercialization activities with respect to the Licensed Product,
whether in or outside the Territory, then such will promptly notify
the other Party of such contact, inspection or notice and shall
provide the other Party with copies of all materials,
correspondence, statements, forms and records filed with or
received from the Regulatory Authority in connection
therewith.

 

 

ARTICLE 6 SUPPLY

 

6.1            

Supply. Subject to the first sentence of
Section 6.2(a), before the completion of the manufacturing
technology transfer under Section 6.2(b), EverInsight shall
exclusively obtain its supply of Licensed Product from VistaGen,
and VistaGen shall supply to EverInsight all the Licensed Product
requested by EverInsight for Development in the Territory
[*****].
Nothing will prevent VistaGen from manufacturing or having
manufactured all or any portion of the Licensed Product in the
Territory.

 

6.2            

Potential Alternative
Suppliers.

 

(a)            

The Parties will
collaborate and jointly explore opportunities for identification
and qualification of alternative suppliers of the Licensed Product
with the mutual intent of reducing substantially the Cost of Goods
for the supply of the Licensed Product, for EverInsight, its
Affiliates, licensees and sublicensees after Regulatory Approval in
the Territory and for VistaGen and its Affiliates, licensees and
sublicensees outside the Territory after Regulatory Approval. Upon
mutual identification and qualification of such alternative
supplier(s) capable of reducing substantially the Cost of Goods for
the supply of the Licensed Product, VistaGen shall, pursuant to
Section 6.4, conduct a technology transfer of all relevant
manufacturing process it possesses to such alternative supplier(s)
to allow the Parties to obtain supply of Licensed Product from such
alternative supplier(s) at reduced Cost of Goods.

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-22-

 

 

(b)            

If the Parties are
unable to agree on the alternative supplier(s) under Section 6.2(a)
before the [*****], then, at
EverInsight’s option and at no additional cost, VistaGen
will, pursuant to Section 6.4, conduct a technology transfer of all
relevant manufacturing processes it possesses to EverInsight or a
Third Party manufacturer(s) that has been chosen by EverInsight for
commercial supply in the Territory. VistaGen shall make a good
faith effort to complete such technology transfer within
[*****] days
of EverInsight’s selection of the manufacturer(s)
(“Manufacturing Transfer
Period”). The Parties agree on a timely and proactive
sharing of manufacturing data to facilitate such manufacture
technology transfer. This data sharing might be done through the
JSC or through a Joint Manufacturing Committee that may be
established by the Parties.

 

6.3            

Supply Agreement.

 

(a)            

Initial Supply Agreement. VistaGen and
EverInsight agree to negotiate in good faith within [*****] days after the
Effective Date a separate agreement concerning the short-term
supply of the Compound and Licensed Product for EverInsight’s
Development use (including preclinical and/or clinical use) (the
“Initial Supply
Agreement”), [*****]. Under this
Initial Supply Agreement, EverInsight shall provide written notice
to VistaGen with rolling forecasts (at least quarterly) promptly
following its decision on initiating preclinical experiments or
clinical trials. Notwithstanding the foregoing, nothing in this
Agreement nor the Initial Supply Agreement shall restrict, impair
or otherwise limit VistaGen’s ability to manufacture the
Compound or Licensed Product in the Territory for use outside the
Territory. The Initial Supply Agreement shall include language on
VistaGen’s Commercially Reasonable Efforts to reduce the
manufacturing costs and an audit right for EverInsight to review
such manufacturing costs

 

(b)            

Commercial Supply Agreement. Upon
EverInsight’s request, VistaGen shall introduce EverInsight
to VistaGen’s contract manufacturer(s) and reasonably
cooperate with EverInsight in its negotiation of a commercial
supply agreement for the Licensed Product directly with such
contract manufacturer(s).

 

(c)            

Quality Agreement. In connection with
negotiation of the Initial Supply Agreement, VistaGen and
EverInsight agree to negotiate in good faith a separate agreement
concerning the quality of the Compound and Licensed Product
supplied by VistaGen to EverInsight (the “Quality
Agreement”). The Quality Agreement might either be an
attachment of the Initial Supply Agreement or a
stand-alone-agreement. Such Quality Agreement will include language
about the acceptance criteria and ways to handle failures of the
quality criteria among other terms.

 

6.4            

Manufacturing Technology Transfer. In
order to enable the Parties to have Manufactured the Compound and
Licensed Product by the mutually-designated Third-Party
manufacturer(s) consistent with the terms of Section 6.2(a)
(Potential Alternative Suppliers), or if such mutually agreed
Third-Party manufacturer cannot be found by the [*****], to enable
EverInsight to Manufacture or have Manufactured the Compound and
Licensed Product for the Territory pursuant to Section 6.2(b),
VistaGen shall (a) perform or facilitate technology transfer to
such mutually-designated Third Party manufacturer, EverInsight or
the Third Party manufacturer selected by EverInsight (the
“Designated
Manufacturer(s)”) as is necessary or reasonably useful
in the Manufacture of the Compound and Licensed Product and as of
such date are being used by VistaGen or VistaGen CMO (as defined
below) to Manufacture the Compound and Licensed Product (the
“Licensed Manufacturing
Know-How”) solely for the Designated Manufacturer(s)
to Manufacture the Compound and Licensed Products in accordance
with the terms and conditions of this Agreement; (b) identify in
writing all Subcontractors who Manufacture Compounds or Licensed
Product for VistaGen (each, an “VistaGen CMO”); and (c) provide
technical assistance (both on site and otherwise) in the transfer
and demonstration of the Licensed Manufacturing Know-How that is
necessary to Manufacture the Compound and Licensed Product. To the
extent that any Licensed Manufacturing Know-How is in the Control
of VistaGen but is in the possession of a VistaGen CMO (and is not
in VistaGen’s possession), then during the Manufacturing
Transfer Period, VistaGen will use Commercially Reasonable Efforts
to facilitate the transfer of such Licensed Manufacturing Know-How
from such VistaGen CMO to the Designated Manufacturer(s), and/or
cause such VistaGen CMO to make such Licensed Manufacturing
Know-How available to the Designated Manufacturer(s). VistaGen
shall be solely responsible for the cost and expense of such
technology transfer and no payment shall be due from EverInsight to
VistaGen or any Third Party (including VistaGen CMO) for such
technology transfer.

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-23-

 

 

ARTICLE 7 COMMERCIALIZATION

 

7.1            

General. Subject to the terms and
conditions of this Agreement and the Commercialization Plan,
EverInsight shall be responsible for all aspects of the
Commercialization of the Licensed Product in the Licensed Field in
the Territory, including: (a) developing and executing a commercial
launch and pre-launch plan, (b) negotiating with applicable
Government Authorities regarding the price and reimbursement status
of the Licensed Product and obtaining and maintaining Pricing
Approvals; (c) marketing, medical affairs, and promotion; (d)
booking sales and distribution and performance of related services;
(e) subject to the provisions of Section 5.5 (Recalls, Suspensions
or Withdrawals) handling all aspects of order processing, invoicing
and collection, inventory and receivables; (f) providing customer
support, including handling medical queries, and performing other
related functions; and (g) conforming its practices and procedures
to Applicable Laws relating to the marketing, detailing and
promotion of Licensed Product in the Licensed Field in the
Territory. As between the Parties, EverInsight shall be solely
responsible for the costs and expenses of Commercialization of the
Licensed Product in the Licensed Field in the
Territory.

 

7.2            

Commercialization Plan. EverInsight
shall conduct all Commercialization of Compound and Licensed
Product in the Licensed Field in the Territory in accordance with a
commercialization plan (as amended from time to time in accordance
with this Agreement, the “Commercialization Plan”), the
initial version of which EverInsight will prepare and provide to
the JSC no later than [*****] prior to the
anticipated First Commercial Sale of Licensed Product in the
Licensed Field in the Territory and which initial Commercialization
Plan shall be subject to the review (but not approval) of the
Parties through the JSC. From time to time, but at least once every
Calendar Year, EverInsight will update the Commercialization Plan
and submit such updated plan to the JSC for review and discussion.
If any updated Commercialization Plan omits details that a VistaGen
representative reasonably believes is necessary for (i) the proper
functioning of the JSC or (ii) to verify EverInsight’s
compliance with its obligations under this Agreement, then
EverInsight shall take into reasonable consideration such comments
and, if necessary, further update such Commercialize Plan. If the
terms of the Commercialization Plan contradict, or create
inconsistencies or ambiguities with, the terms of this Agreement,
then the terms of this Agreement shall govern.

 

7.3            

Commercial Diligence. Upon Regulatory
Approval of a Licensed Product in mainland China or South Korea,
EverInsight, directly and/or with or through Affiliates or
Sublicensees, shall use Commercially Reasonable Efforts to
Commercialize such Licensed Product in the Licensed Field in such
jurisdiction.

 

ARTICLE 8 FINANCIAL PROVISIONS

 

8.1            

Upfront Payment.

 

(a)            

As partial
consideration of the rights granted by VistaGen to EverInsight
hereunder, within thirty (30) Business Days after the Effective
Date, EverInsight shall pay to VistaGen a one-time, non-refundable
and non-creditable upfront payment of five million Dollars
($5,000,000).

 

8.2            

Regulatory Milestone
Payments.

 

(a)            

As additional
consideration of the rights granted by VistaGen to EverInsight
hereunder, within [*****] calendar days
after the first achievement of the regulatory milestone events
below (“Regulatory
Milestone Events”) by
or on behalf of EverInsight or any of its Affiliates or
Sublicensees, EverInsight or its Affiliate or Sublicensee shall
notify VistaGen of the achievement of such Regulatory Milestone
Event. The Regulatory Milestone Event triggers the corresponding
milestone payment due to VistaGen (“Milestone Payment”) and VistaGen
shall invoice EverInsight for the applicable non-refundable,
non-creditable Milestone Payment corresponding to the Regulatory
Milestone Event as shown below, and EverInsight shall remit payment
within [*****] Business Days of
the receipt of such invoice, as described in Section 8.6 (Currency;
Exchange Rate; Payments). For clarity, each Regulatory Milestone
Payment set forth above shall be due and payable only once upon the
first achievement of the corresponding Regulatory Milestone Event,
regardless of how many times such Regulatory Milestone Event is
achieved in the Territory.

 

●

Regulatory
Milestone Event for Licensed Product Regulatory Milestone Payment
(in U.S. Dollars):

 

(1)
[*****].

 

(2)
[*****].

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-24-

 

 

8.3            

Commercial Milestones.

 

(a)            

Within [*****] calendar days
after the end of the first Calendar Year in which aggregate annual
Net Sales for that Calendar Year for the Licensed Product in the
Territory reach any threshold indicated in the Commercial Milestone
Events listed below, EverInsight shall notify VistaGen of the
achievement of such Commercial Milestone Event and VistaGen shall
invoice EverInsight for the corresponding non-refundable,
non-creditable Milestone Payment set forth below and EverInsight
shall remit payment to VistaGen within [*****] Business Days
after the receipt of the invoice, as described in Section 8.6
(Currency; Exchange Rate; Payments).

 

Annual
Net Sales Milestones for Licensed Product Milestone Payments (in
Dollars) (each a “Commercial
Milestone Event”):

 

(1).
[*****]

 

(2).
[*****]

 

(3).
[*****]

 

(4).
[*****]

 

(5).
[*****]

 

(b)            

For the purposes of
determining whether a Net Sales Milestone Event has been achieved,
Net Sales of Licensed Product(s) in the Territory shall be
aggregated. For clarity, the annual Net Sales Milestone Payments
set forth in this Section 8.3 (Commercial Milestones) shall be
payable only once, upon the first achievement of the applicable
Commercial Milestone Event, regardless of how many times such
Commercial Milestone Event is achieved.

 

(c)            

If a Commercial
Milestone Event in Section 8.3 (Commercial Milestones) is achieved
and payment with respect to any previous Commercial Milestone Event
in Section 8.3 has not been made, then such previous Commercial
Milestone Event shall be deemed achieved and EverInsight shall
notify VistaGen within fifteen (15) calendar days of such
achievement. VistaGen shall then invoice EverInsight for such
unpaid previous Commercial Milestone Event(s) and EverInsight shall
pay VistaGen such unpaid previous milestone payment(s) within
thirty (30) Business Days of receipt of such invoice.

 

(d)            

In the event that,
VistaGen believes any Commercial Milestone Event under Section
8.3(a) has occurred but EverInsight has not given VistaGen the
notice of the achievement of such Commercial Milestone Event, it
shall so notify EverInsight in writing and shall provide to
EverInsight data, documentation or other information that supports
its belief. Any dispute under this Section 8.3(d) (Commercial
Milestones - subsection (d)) that relates to whether or not a
Commercial Milestone Event has occurred shall be referred to the
JSC to be resolved in accordance with ARTICLE 3 (Governance) and
shall be subject to resolution in accordance with Section 14.10
(Dispute Resolution). The Milestone Payments made for each
Commercial Milestone Event shall be non-creditable and
non-refundable.

 

8.4            

Royalty Payments.

 

(a)            

Royalty Rate. Subject to the terms and
conditions of this Agreement (including Section 8.5), in partial
consideration of the rights granted by VistaGen to EverInsight
hereunder, EverInsight shall pay to VistaGen non-refundable,
non-creditable royalties based on the aggregate Net Sales of all
Licensed Product sold by EverInsight, its Affiliates and/or its or
their respective Sublicensees in the Territory during a Calendar
Year at the rates set forth in the table below. The obligation to
pay royalties will be imposed only once with respect to the same
unit of a Licensed Product.

 

Calendar Year Net
Sales (in Dollars) for all Licensed Product in the Territory
Royalty Rates as a Percentage (%) of Net Sales

 

(1).
[*****]

 

(2).
[*****]

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-25-

 

 

(b)            

Royalty Term. Royalties under this
Section 8.4 (Royalty Payments) shall be payable on a
jurisdiction-by-jurisdiction and Licensed Product-by-Licensed
Product basis from the First Commercial Sale of a Licensed Product
in a jurisdiction until the latest to occur of: (i) expiration of
the last‐to‐expire Valid Claim that effectively
provides market exclusivity of such Licensed Product in such
jurisdiction in the Territory; (ii) expiration of Regulatory
Exclusivity for such Licensed Product in such Jurisdiction in the
Territory; and (iii) ten (10) years after the First Commercial Sale
of the Licensed Product in such jurisdiction in the Territory (the
“Royalty Term”
for the Licensed Product in the relevant jurisdiction). After
expiration of the Royalty Term for a particular Licensed Product in
a particular jurisdiction, the license granted by VistaGen to
EverInsight hereunder shall continue and shall become fully
paid-up, royalty free, perpetual and irrevocable with respect to
such Licensed Product in such jurisdiction.

 

(c)            

Royalty Reports and Payment. Within
ninety (90) calendar days after each Calendar Quarter of each
Calendar Year, commencing with the Calendar Quarter during which
the First Commercial Sale of any Licensed Product is made anywhere
in the Territory, EverInsight shall provide VistaGen with a report
that contains the following information for the applicable Calendar
Quarter, on a jurisdiction-by-jurisdiction basis: (A) Net Sales in
the Territory; (B) a calculation of the royalty payment due on Net
Sales in the Territory; and (C) the exchange rates used. After the
receipt of such royalty report, VistaGen shall invoice EverInsight
for the royalty payment set forth in such royalty report. Within
thirty (30) Business Days after the receipt of the invoice,
EverInsight will pay VistaGen all royalties owed with respect to
Net Sales for such Calendar Quarter. If, during the following
Calendar Quarter, EverInsight discovers that it reported an
incorrect amount of Net Sales in the Territory and/or the amounts
payment due on such Net Sales in the immediately preceding Calendar
Quarter, then EverInsight may, subject to review by VistaGen,
adjust and reconcile any such calculation of Net Sales and/or any
such underpayment or overpayment of royalty payments due, and shall
timely report the same within thirty (30) calendar days after such
following Calendar Quarter.

 

8.5            

Royalty Adjustments. Except as otherwise
set forth in this Agreement, royalties due hereunder are subject to
adjustment as set forth below (such adjustments to be prorated for
the Calendar Quarter in which the adjustment becomes
applicable):

 

(a)            

Royalty Adjustment for Patent
Expiration. In the event that in any jurisdiction in the
Territory in any Calendar Quarter during the Royalty Term for a
Licensed Product, there is no Valid Claim that provides effective
market exclusivity for such Licensed Product (or the Compound
contained in such Licensed Product) in such jurisdiction in such
Calendar Quarter, then the royalty rate set forth in Section 8.4(a)
(Royalty Rate) with respect to such Licensed Product in such
jurisdiction in such Calendar Quarter shall be reduced by
[*****];

 

(b)            

Royalty Adjustment for Generic
Competition. In the event that in any jurisdiction in the
Territory in any Calendar Quarter during the Royalty Term for a
Licensed Product, there is Generic Competition for such Licensed
Product in such jurisdiction in such Calendar Quarter, then the
royalty rate set forth in Section 8.4(a) (Royalty Rate) with
respect to such Licensed Product in such jurisdiction in such
Calendar Quarter shall be reduced by [*****] (provided
however that the royalty reduction under Section 8.5(a) shall not
apply to such Licensed Product in such jurisdiction in such
Calendar Quarter if the royalty reduction under Section 8.5(b)
applies).

 

8.6            

Currency; Exchange Rate; Payments. All
payments required to be made by EverInsight under this Agreement
shall be made in Dollars. All payments payable to, or invoiced from
or on behalf of, VistaGen shall be paid bank wire transfer in
immediately available funds to one or more bank accounts of
VistaGen as designated in written notice from VistaGen. If any
currency conversion shall be required in connection with any
payment hereunder, such conversion shall be made by using the
exchange rates at the closing on the last Business Day of the
Calendar Quarter to which such payment relates as reported in The
Wall Street Journal on the following day.

 

8.7            

Late Payments. Any payments or portions
thereof due hereunder that are not paid on the date such payments
are due under this Agreement shall bear interest at an annual rate
equal to two (2) percentage points above the prime rate as
published by The Wall Street Journal or any successor thereto on
the first day of each Calendar Quarter in which such payments are
overdue calculated on the number of days such payment is
delinquent.

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-26-

 

 

8.8            

Taxes.

 

(a)            

Taxes on Income. Notwithstanding
anything else set forth in this Section 8.8 (Taxes), each Party
shall solely bear and pay all Taxes imposed on such Party’s
net income or gain (however denominated) arising directly or
indirectly from the activities of the Parties under this
Agreement.

 

(b)            

Tax Payments. The upfront payment,
milestone payments, royalties, and any other payment payable by
EverInsight to VistaGen pursuant to this Agreement (each, a
“Payment”) shall
be paid free and clear of any and all Taxes (which, for clarity,
shall be the responsibility of EverInsight), except for any Taxes
required by Applicable Laws to be withheld or deducted. The Parties
agree to cooperate with one another and use reasonable efforts to
avoid or reduce Tax withholding or similar obligations in respect
of the payments made under this Agreement. To the extent
EverInsight is required to deduct and withhold Taxes on any payment
to VistaGen, EverInsight shall deduct those Taxes from the
remittable payment, pay the Taxes to the proper tax authority in a
timely manner, and promptly send proof of payment to VistaGen.
VistaGen shall provide EverInsight any tax forms that may be
reasonably necessary in order for EverInsight to not withhold tax
or to withhold tax at a reduced rate under an applicable bilateral
income tax treaty. VistaGen shall use reasonable efforts to provide
any such tax forms to EverInsight in advance of the due
date.

 

8.9            

Financial Records and Audit. EverInsight
shall (and shall ensure that its Affiliates and Sublicensees will)
maintain complete and accurate books and records pertaining to the
Commercialization of Licensed Product hereunder, including books
and records of invoiced sales and Net Sales of Licensed Product, in
sufficient detail to calculate and verify all amounts payable
hereunder and in sufficient detail to permit VistaGen to confirm
the accuracy of any royalty payments, other amounts paid or payable
under this Agreement and to verify the achievement of Milestone
Events under this Agreement. EverInsight shall and shall cause its
Affiliates and its and their Sublicensees to, retain such books and
records until the later of (a) three (3) years after the end of the
period to which such books and records pertain; (b) the expiration
of the applicable tax statute of limitations (or any extensions
thereof); and (c) for such period as may be required by Applicable
Laws. Upon at least thirty (30) Business Days’ prior notice,
such records shall be open for examination, during regular business
hours, for a period of three (3) Calendar Years from the end of the
Calendar Year to which such records pertain, and not more often
than once each Calendar Year, by an independent and internationally
recognized certified public accountant selected by VistaGen and
reasonably acceptable to EverInsight, for the sole purpose of
verifying for VistaGen the accuracy of the financial reports
furnished by EverInsight under this Agreement or of any payments
made, or required to be made, by EverInsight to VistaGen pursuant
to this Agreement. The independent public accountant shall disclose
to VistaGen only (x) the accuracy of Net Sales reported and the
basis for royalty, Milestone Payments and any other payments made
to VistaGen under this Agreement and (y) the difference, if any, by
which such reported and paid amounts vary from amounts determined
as a result of the audit and the details concerning such
difference. Except as required by Applicable Laws, no other
information shall be provided to VistaGen. No record may be audited
more than once. VistaGen shall bear the full cost of such audit
unless such audit reveals an underpayment by EverInsight of more
than one hundred thousand Dollars ($100,000) or five percent (5%)
of the amount actually due (whichever is greater) for any Calendar
Year being audited, in which case EverInsight shall reimburse
VistaGen for the reasonable costs and expenses for such audit.
Unless disputed pursuant to Section 8.10 (Audit Dispute),
EverInsight shall pay to VistaGen any underpayment discovered by
such audit within thirty (30) days after the accountant’s
report, plus interest (as set forth in Section 8.7 (Late Payments))
from the original due date. If the audit reveals an overpayment by
EverInsight, then EverInsight may take a credit for such
overpayment against any future payments due to VistaGen and, if
there will be no future payment due, VistaGen shall promptly refund
such overpayment to EverInsight.

 

8.10            

Audit Dispute. If EverInsight disputes
the results of any audit conducted pursuant to Section 8.9
(Financial Records and Audit), the Parties shall work in good faith
to resolve the disagreement. If the Parties are unable to reach a
mutually acceptable resolution of any such dispute within thirty
(30) days, the dispute shall be submitted for resolution to a
certified public accounting firm jointly selected by each
Party’s certified public accountants or to such other Person
as the Parties shall mutually agree (the “Auditor”). The decision of the
Auditor shall be final and the costs of such procedure shall be
borne between the Parties in such manner as the Auditor shall
determine. If the Auditor determines that there has been an
underpayment by EverInsight, EverInsight shall pay to VistaGen the
underpayment within thirty (30) days after the Auditor’s
decision, plus interest (as set forth in Section 8.7 (Late
Payments)) from the original due date. If the Auditor determines
that there has been an overpayment by EverInsight, then EverInsight
may take a credit for such overpayment against any future payments
due to VistaGen and, if there will be no future payment due,
VistaGen shall promptly refund such overpayment to
EverInsight.

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-27-

 

 

ARTICLE 9 INTELLECTUAL PROPERTY RIGHTS

 

9.1            

Ownership
of Intellectual Property

 

(a)            

Ownership of Technology. As between the
Parties:

 

(1)            

VistaGen shall
solely own on a worldwide basis all right, title and interest in
and to any and all VistaGen Sole Inventions, whether or not
patented or patentable, and any and all VistaGen Sole Invention
Patents; and

 

(2)            

EverInsight shall
solely own on a worldwide basis all right, title and interest in
and to any and all EverInsight Sole Inventions, whether or not
patented or patentable, and any and all EverInsight Sole Invention
Patents.

 

For
clarity, each Party shall own on a worldwide basis and retain all
right, title and interest in and to any and all Know-How,
Inventions, Patents and other intellectual property rights that are
owned or otherwise Controlled (other than pursuant to the license
grants set forth in Section 2.1 (Licenses to EverInsight) and 2.2
(License to VistaGen)) by such Party or its Affiliates or its or
their (sub)licensees (or Sublicensees) (as applicable) outside of
this Agreement.

 

(b)            

Ownership of Joint Patents and Joint
Inventions. As between the Parties:

 

(1)            

Each of VistaGen
and EverInsight shall own an equal, undivided interest in any and
all Joint Inventions and Joint Invention Patents; and

 

(2)            

Each of VistaGen
and EverInsight shall promptly disclose to the other in writing,
and shall cause its Affiliates and its and their respective
Sublicensees to so disclose, the development, making, conception or
reduction to practice of any Joint Inventions. Subject to the
licenses granted under Section 2.1 (License to EverInsight) and
Section 2.2 (License to VistaGen), each of VistaGen and EverInsight
shall have the right to Exploit the Joint Inventions and Joint
Invention Patents without the duty of accounting or seeking consent
from the other Party.

 

(c)            

United States Law. The determination of
whether Inventions, Know-How and other intellectual property rights
are conceived, discovered, developed or otherwise made by a Party
for the purpose of allocating proprietary rights (including Patent,
copyright or other intellectual property rights) therein, shall,
for purposes of this Agreement, be made in accordance with
Applicable Laws in the United States as such law exists as of the
Effective Date irrespective of where or when such conception,
discovery, development or making occurs; provided that if the
application of such United States Applicable Laws prevents or
materially impairs the proper prosecution or maintenance of Patent
Rights in any jurisdiction in the Territory, then the Parties shall
mutually agree to the application of an appropriate Applicable Laws
in order to best advance and maintain the prosecution and
maintenance of such Patents in such jurisdiction in the Territory.
Each of VistaGen and EverInsight shall, and does hereby, assign,
and shall cause its Affiliates and its and their (sub)licensees and
Sublicensees to so assign, to the other Party, without additional
compensation, such right, title and interest in and to any
Inventions, Know-How, Patents and other intellectual property
rights with respect thereto, as is necessary to fully effect, as
applicable, the sole or joint ownership as provided for in Section
9.1(a) (Ownership of Technology) or 9.1(b) (Ownership of Joint
Patents and Joint Inventions); subject to the license granted under
this Agreement.

 

(d)            

Assignment Obligation. Each Party shall
cause all Persons who perform Development activities, Manufacturing
activities or regulatory activities for such Party under this
Agreement or who conceive, discover, develop or otherwise make any
Inventions, Know-How or other intellectual property rights by or on
behalf of either Party or its Affiliates or its or their
(sub)licensees (or Sublicensees) under or in connection with this
Agreement to be under an obligation to assign to such Party their
rights in any Inventions, Know-How, Patents and other intellectual
property to the extent related to the Compound or Licensed Product,
except where Applicable Laws requires otherwise and except in the
case of governmental, not-for-profit and public institutions that
have standard policies against such an assignment and except in the
case of generally applicable (i.e., applicable generally to
products other than the Licensed Product) Inventions, Know-How,
Patents and other intellectual property (in each case, a suitable
license or right to obtain such a license, shall be
obtained).

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-28-

 

 

(e)            

Ownership of Product Trademarks. Subject
to Section 11.3 (Effect of Termination), as between the Parties,
(i) EverInsight shall own all right, title and interest in and to
the Product Trademarks in the Territory, (ii) EverInsight shall
have the right to market the Licensed Product in the Licensed Field
in the Territory under the Product Trademarks and all goodwill
associated therewith will inure to the benefit of EverInsight and
(iii) VistaGen may not use the Product Trademarks without obtaining
a proper trademark license from EverInsight (except to the extent
necessary to perform its obligations under this
Agreement).

 

(f)            

Ownership of Corporate Names. As between
the Parties, each Party shall retain all right, title and interest
in and to its Corporate Names.

 

(g)            

Ownership of Development Data. Subject
to ARTICLE 2 (Licenses) and Section 11.3 (Effect of Termination),
EverInsight shall own EverInsight Development Data and VistaGen
shall own VistaGen Development Data.

 

9.2            

Patent Prosecution and
Maintenance.

 

(a)            

VistaGen shall have
the first right, but not the obligation, to control the
preparation, filing, prosecution (including any interferences,
reissue proceedings and reexaminations) and maintenance of all
Licensed Patents and Joint Patents, both in and outside the
Territory, by counsel of its own choice, except that such counsel
in the Territory shall be reasonably acceptable to EverInsight
(such acceptance not to be unreasonably withheld, delayed or
conditioned). VistaGen shall consult with EverInsight and keep
EverInsight informed of the status of such Patents in the Territory
and also in the US and EU, and shall promptly provide EverInsight
with all material correspondence received from any patent authority
in the Territory and also in the US and EU in connection therewith.
In addition, VistaGen shall promptly provide EverInsight with
drafts of all proposed material filings and correspondence to any
patent authority in the Territory and also in the US and EU with
respect to such Patents for EverInsight’s review and comment
at least thirty (30) days prior to the submission of such proposed
filings and correspondence. VistaGen shall confer with EverInsight
and consider in good faith EverInsight’s comments prior to
submitting such filings and correspondence, provided that
EverInsight provides such comments within fifteen (15) days (or a
shorter period reasonably designated by VistaGen if fifteen (15)
days is not practicable given the filing deadline) of receiving the
draft filings and correspondence from VistaGen. VistaGen shall also
keep EverInsight informed as to the payment schedule for patent
maintenance fee for the Licensed Patents and Joint Patents.
VistaGen shall be responsible for the costs and expenses incurred
by VistaGen for the preparation, filing, prosecution and
maintenance of the Licensed Patents and Joint Patents both in and
outside the Territory. For the avoidance of doubt, VistaGen shall
be responsible for all costs incurred prior to the Effective Date
with respect to the prosecution and maintenance of any Licensed
Patents. If EverInsight reasonably determines that a Licensed
Patent added after the Effective Date (other than Patent Rights
added by an In-License Agreement that EverInsight has accepted
pursuant to Section 2.4(b)(1) (In-License Agreements)) or Joint
Patent that EverInsight subsequently determines is of low value to
EverInsight, then EverInsight has the right upon at least sixty
(60) days’ prior written notice to remove such Licensed
Patent or Joint Patent from the Licensed Technology hereunder, in
which case, following delivery of such notice to VistaGen, (1) the
license of Licensed Technology to EverInsight under Section 2.1
(License to EverInsight) as to such Licensed Patent or Joint Patent
shall be terminated; (2) the claims of such Licensed Patent or
Joint Patent, as the case may be, shall be excluded from Valid
Claim; and (3) if requested by VistaGen, EverInsight shall assign,
and shall cause its Affiliates and its and their (sub)licensees and
Sublicensees to so assign, to VistaGen, without additional
compensation, EverInsight’s right, title and interest in and
to the relevant Joint Patent (provided that EverInsight shall
retain a non-exclusive, fully paid, royalty free, sublicenseable
(through multiple tiers), perpetual and irrevocable license and
right under the Joint Patent assigned to VistaGen).

 

(b)            

In the event that
VistaGen desires to abandon or cease prosecution or maintenance of
any Licensed Patent in the Territory (or any jurisdiction therein)
or any Joint Patent anywhere in the world, VistaGen shall provide
reasonable prior written notice to EverInsight of such intention to
abandon (which notice shall, to the extent possible, be given no
later than thirty (30) days prior to the next deadline for any
action that must be taken with respect to any such Patent in the
relevant patent office). In such case, upon EverInsight’s
written election provided no later than twenty (20) days after such
notice from VistaGen, EverInsight shall have the right to assume
prosecution and maintenance of such Licensed Patent or Joint Patent
at EverInsight’s sole cost and expense. If EverInsight does
not provide such election within twenty (20) days after such notice
from VistaGen, VistaGen may, in its sole discretion, abandon or
cease prosecution and maintenance of such Patent in the Territory
(or the relevant jurisdiction).

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-29-

 

 

(c)            

EverInsight shall
have the sole right, but not the obligation, to control the
preparation, filing, prosecution (including any interferences,
reissue proceedings and reexaminations) and maintenance of all
EverInsight Patents throughout the world, at EverInsight’s
own cost and expense.

 

9.3            

Cooperation of the Parties. Each Party
agrees to cooperate fully in the preparation, filing, prosecution
and maintenance of Patents under Section 9.2 (Patent Prosecution
and Maintenance), at its own cost. Such cooperation includes: (a)
executing all papers and instruments, or requiring its employees or
contractors, to execute such papers and instruments, so as enable
the applicable Party to apply for and to prosecute patent
applications in any country as permitted by Section 9.2 (Patent
Prosecution and Maintenance); and (b) promptly informing the other
Party of any matters coming to such Party’s attention that
may affect the preparation, filing, prosecution or maintenance of
any such patent applications.

 

9.4            

Infringement by Third
Parties.

 

(a)            

Notice. In the event that either
VistaGen or EverInsight becomes aware of any infringement or
threatened infringement by a Third Party of any Licensed Patent or
Joint Patent in and/or outside the Territory, which infringing
activity involves the using, making, importing, offering for sale
and/or selling of a Licensed Product or any product that falls
within the scope of the Licensed Patents (regardless of whether or
not EverInsight and/or VistaGen is currently Developing using,
making, importing, offering for sale, selling, and/or otherwise
Commercializing the same Licensed Product), or the submission to a
Party or a Regulatory Authority in and/or outside the Territory of
an application for a product referencing a Licensed Product, or any
declaratory judgment or equivalent action challenging any Licensed
Patent or Joint Patent in and/or inside the Territory in connection
with any such infringement (each, a “Product Infringement”), it will
promptly notify the other Party in writing to that effect. Any such
notice shall include evidence to support an allegation of
infringement or threatened infringement, or declaratory judgment or
equivalent action, by such Third Party.

 

(b)            

Enforcement of Licensed Patents and Joint
Patents. To the extent permitted by the Pherin License,
EverInsight shall have the first right, as between VistaGen and
EverInsight, but not the obligation, to bring an appropriate suit
or take other action against any Person or entity engaged in, or to
defend against, such Product Infringement in the Territory of any
Licensed Patent or Joint Patent, at its own expense and by counsel
of its own choice. VistaGen shall have the right, at its own
expense, to be represented in any such action in the Territory by
counsel of its own choice, and EverInsight and its counsel will
reasonably cooperate with VistaGen and its counsel in strategizing,
preparing and prosecuting any such action or proceeding. If
EverInsight fails to bring an action or proceeding in the Territory
with respect to such Product Infringement of any Licensed Patent or
Joint Patent within (A) ninety (90) days following the notice of
alleged infringement or declaratory judgment or (B) sixty (60) days
before the time limit, if any, set forth in the Applicable Laws for
the filing of such actions, whichever comes first, VistaGen shall
have the right, but not the obligation, to bring and control any
such action in the Territory at its own expense and by counsel of
its own choice, and EverInsight shall have the right, at its own
expense, to be represented in any such action by counsel of its own
choice. Except as otherwise agreed by the Parties as part of a
cost-sharing arrangement, any recovery or damages realized as a
result of such action or proceeding with respect to Product
Infringement of any Licensed Patent or Joint Patent, or settlement
of the same, shall be used (A) first, to reimburse the
Parties’ documented out-of-pocket legal expenses relating to
the action or proceeding; and (B) any remainder after such
reimbursement is made shall be retained by the enforcing Party,
provided, that if EverInsight is the enforcing Party, then to the
extent that any award or settlement (whether by judgment or
otherwise) with respect to any Licensed Patent or Joint Patent is
attributable to loss of sales or profits with respect to a Licensed
Product in the Licensed Field in the Territory, such amounts
(except punitive damages) that may be recovered or realized by
EverInsight after reimbursement of enforcement cost shall be
considered Net Sales and subject to the royalty obligations under
Section 8.4 (Royalty Payments) and the commercial Milestone Payment
obligations under Section 8.3 (Commercial Milestones) (provided
that such amount shall be evenly spread (on Calendar Quarterly
basis) over the time period during which the lost sales or profits
occurred for the purpose of determine aggregate annual Net Sales,
royalty tiers and achievement of commercial milestones).
Notwithstanding anything to the contrary in this Article 9, in the
event that patent enforcement or patent defense litigation
regarding the Licensed Patents occurs in multiple countries, within
or outside the Territory, then VistaGen shall have the first right
but not the obligation to bring an appropriate suit or take other
appropriate action.

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-30-

 

 

(c)            

Cooperation. In the event a Party brings
an action in accordance with this Section 9.4 (Infringement by
Third Parties), the other Party shall cooperate fully at its own
expense, including, if required to bring such action, and providing
access to relevant documents and other evidence including, without
limitation, making its employees available at reasonable business
hours to the Party’s counsel for all pre-trial and trial
proceedings, as well as the furnishing of a power of attorney or
being named as a party to such action as may reasonably be
necessary.

 

(d)            

Other Infringement. VistaGen shall have
the sole right, but not the obligation, to bring and control, at
its own cost and expense, any legal action in connection with any
Product Infringement of any Licensed Patent or Joint Patent outside
the Territory and any legal action in connection with any
infringement of any Licensed Patent that is not a Product
Infringement; provided, however, that such legal action is not
combined with a legal action involving a Product Infringement. The
Parties shall jointly control any legal action in connection with
any infringement of any Joint Patent anywhere in the world that is
not a Product Infringement and is not combined with a Product
Infringement legal action. Any recovery or damages realized as a
result of such action or proceeding with respect to Product
Infringement of any Licensed Patent or Joint Patent shall be used
(A) first, but only if a Joint Patent was the subject of such legal
action, to reimburse the Parties’ documented out-of-pocket
legal expenses relating to such action or proceeding; and (B) any
remainder after such reimbursement, if applicable, shall be
retained by the Party initiating such action or proceeding (or, in
the case of Joint Patent, shared by the Parties
equally).

 

(e)            

Effect of Pherin License. The Parties
acknowledge that provisions of the Pherin License may affect the
standing and ability of a Party to bring and control infringement
litigation, notwithstanding the contemplated allocation of
litigation-related enforcement rights as between the Parties in
this Agreement.

 

9.5            

Infringement Claims by Third Parties. If
the Exploitation of a Licensed Product in the Licensed Field in the
Territory pursuant to this Agreement results in, or is reasonably
expected to result in, any claim, suit or proceeding by a Third
Party against EverInsight or any of its Affiliates or Sublicensees
alleging infringement by EverInsight or any of its Affiliates or
its or their Sublicensees, distributors or customers (a
“Third Party Infringement
Claim”), including any defense or counterclaim in
connection with a Product Infringement action initiated pursuant to
Section 9.4(b) (Enforcement of Licensed Patents and Joint Patents),
the Party first becoming aware of such alleged infringement shall
promptly notify the other Party thereof in writing. As between the
Parties, subject to ARTICLE 13 (Indemnification; Liability): (a)
VistaGen shall be responsible for defending any such claim, suit or
proceeding at its sole cost and expense, using counsel of
VistaGen’s choice; (b) EverInsight may participate in any
such claim, suit or proceeding with counsel of its choice at its
sole cost and expense; provided that VistaGen shall retain the
right to control such claim, suit or proceeding; (c)EverInsight
shall, and shall cause its Affiliates to, assist and co-operate
with VistaGen, as VistaGen may reasonably request from time to
time, in connection with its activities set forth in this Section
9.5 (Infringement Claims by Third Parties), including where
necessary, furnishing a power of attorney solely for such purpose
or joining in, or being named as a necessary party to, such action,
providing access to relevant documents and other evidence and
making its employees available at reasonable business hours;
provided that VistaGen shall reimburse EverInsight for its
reasonable and verifiable out-of-pocket costs and expenses incurred
in connection therewith; (d) VistaGen shall keep EverInsight
reasonably informed of all material developments in connection with
any such claim, suit or proceeding; (e) VistaGen agrees to provide
EverInsight with copies of all material pleadings filed in such
action and to allow EverInsight reasonable opportunity to
participate in the defense of the Claims; and (f) any damages, or
awards, including royalties, incurred or awarded in connection with
any Third Party Infringement Claim defended under this Section 9.5
(Infringement Claims by Third Parties) shall be borne by VistaGen,
and VistaGen shall indemnify and hold EverInsight Indemnitee
harmless from such Third Party Infringement Claim pursuant Section
13.1(d).

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-31-

 

 

9.6            

Invalidity or Unenforceability Defenses or
Actions. Each Party shall promptly notify the other Party in
writing of any alleged or threatened assertion of invalidity or
unenforceability of any of the Licensed Patents, Joint Patents or
EverInsight Patents worldwide, by a Third Party and of which such
Party becomes aware. As between the Parties: (a) VistaGen and
EverInsight shall coordinate with each other to defend and control
the defense of the validity and enforceability of any Joint Patents
in the Territory and share the cost and expense thereof; (b)
VistaGen shall have the first right, but not the obligation, to
defend and control the defense of the validity and enforceability
of any Licensed Patents, at its sole cost and expense, using
counsel of VistaGen’s choice; (c) EverInsight shall have the
first right, but not the obligation, to defend and control the
defense of the validity and enforceability of any EverInsight
Patents, at its sole cost and expense, using counsel of
EverInsight’s choice; provided however that, notwithstanding
the foregoing, Section 9.4 shall control with respect to any such
claim that is a Product Infringement or is a counter claim in an
enforcement action against a Project Infringement. For purposes of
this Section 9.6 (Invalidity or Unenforceability Defenses or
Actions), the Party defending and controlling the defense of the
validity and enforceability pursuant to the foregoing sentence with
respect to a Patent shall be the “Controlling Party”.
With respect to any such claim, suit or proceeding in the Territory
under this Section 9.6 (Invalidity or Unenforceability Defenses or
Actions), the non-Controlling Party may participate in such claim,
suit or proceeding with counsel of its choice at its sole cost and
expense; provided that the Controlling Party shall retain control
of the defense in such claim, suit or proceeding. If the
Controlling Party elects not to defend the applicable Patents in a
suit, then the Controlling Party shall notify the non-Controlling
Party of such election at least sixty (60) days before the time
limit, if any, set forth in Applicable Laws for defending such
actions, with the proviso that if the Controlling Party is
VistaGen, then, to the extent permitted under the Pherin License,
EverInsight shall have the right, but not the obligation, for any
such Invalidity or Unenforceability Defenses or Actions, to assume
control of the defense of any such claim, suit or proceeding at its
sole cost and expense. The non-Controlling Party in such an action
shall, and shall cause its Affiliates to, assist and co-operate
with the Controlling Party, as such Controlling Party may
reasonably request from time to time. in connection with its
activities set forth in this Section 9.6 (Invalidity or
Unenforceability Defenses or Actions), including where necessary,
furnishing a power of attorney solely for such purpose or joining
in, or being named as a necessary party to, such action, providing
access to relevant documents and other evidence and making its
employees available at reasonable business hours; provided that the
Controlling Party shall reimburse the non-Controlling Party for its
reasonable and verifiable out-of-pocket costs and expenses incurred
in connection therewith. In connection with any activities with
respect to a defense, claim or counterclaim relating to the
Licensed Patents, EverInsight Patents or Joint Patents licensed
under Section 2.1 (License to EverInsight) or Section 2.2 (License
to VistaGen), the Controlling Party shall (i) consult with the
non-Controlling Party as to the strategy for such activities, (ii)
consider in good faith any comments from the non-Controlling Party
and (iii) keep the non-Controlling Party reasonably informed of any
material steps taken and provide copies of all material documents
filed, in connection with such defense, claim or
counterclaim.

 

9.7            

Consent for Settlement. Neither Party
shall unilaterally enter into any settlement or compromise of any
action or proceeding under this ARTICLE 9 (Intellectual Property
Rights) that would in any manner alter, diminish, or be in
derogation of the other Party’s rights under this Agreement
or otherwise without the prior written consent of such other Party,
which shall not be unreasonably withheld, conditioned or
delayed.

 

9.8            

Common Ownership under Joint Research
Agreement. Notwithstanding anything to the contrary in this
ARTICLE 9, no Party shall have the right to make an election under
35 U.S.C. 102(c) when exercising its rights under this ARTICLE 9
without the prior written consent of the other Party. With respect
to any such permitted election, the Parties shall co-ordinate their
activities with respect to any submissions, filings or other
activities in support thereof. The Parties acknowledge and agree
that this Agreement is a “joint research agreement” as
defined in 35 U.S.C. 100(h).

 

9.9            

Patent Extensions. VistaGen and
EverInsight shall jointly, following consultation with each other,
have decision making authority regarding, and they shall cooperate
with each other, in obtaining, patent term restoration,
supplemental protection certificates or their equivalents, and
patent term extensions with respect to the Licensed Patents, Joint
Patents, and EverInsight Patents in the Territory where applicable.
If mutually agreed, EverInsight shall file for such extensions at
the Parties’ shared cost and expense. If the Parties cannot
agree, the matter will be referred to the JSC for decision pursuant
to Section 3.3 (JSC Decision Making).

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-32-

 

 

9.10            

Trademarks. VistaGen and EverInsight
shall provide to the other Party prompt written notice of any
actual or threatened infringement of the Product Trademarks or
Licensed Trademarks in the Territory and of any actual or
threatened Claim that the use of the Product Trademarks or Licensed
Trademarks in the Territory violates the rights of any Third Party,
in each case, of which such Party becomes aware. EverInsight shall
have the right to select and register, and shall own and be
responsible for, at its expense, all Product Trademarks, trade
names, branding or logos related to the Compound or Licensed
Product in the Licensed Field in the Territory. EverInsight shall
have the sole right to take such action as EverInsight deems
necessary against a Third Party based on any alleged, threatened or
actual infringement, dilution, misappropriation or other violation
of or unfair trade practices or any other like offense relating to,
the Product Trademarks by a Third Party in the Territory at its
sole cost and expense and using counsel of its own choice and
EverInsight shall retain any damages or other amounts collected in
connection therewith.

 

9.11            

Licensed Trademarks. If EverInsight is lawfully
required by any Regulatory Authority or otherwise desires to use
any of the Licensed Trademarks or any other Trademark used by
VistaGen (either in connection with or in lieu of Product
Trademarks selected by EverInsight) to market, promote, distribute
and/or sell any Licensed Product in the Licensed Field outside the
Territory for the purpose of Commercialization of the relevant
Licensed Product in a jurisdiction in the Territory, EverInsight
shall promptly notify VistaGen, and VistaGen shall immediately
grant EverInsight an exclusive, fully-paid, royalty-free and
sublicensable license to use such Licensed Trademark or such other
Trademark solely in connection with the Commercialization of the
relevant Licensed Product in the Licensed Field in such
jurisdiction in the Territory; provided that any such license shall
automatically terminate upon the expiration or termination of this
Agreement with respect to such Licensed Product in such
jurisdiction.

 

ARTICLE 10 CONFIDENTIALITY; PUBLICATION

 

10.1            

Duty of Confidence. Subject to the other
provisions of this ARTICLE 10 (Confidentiality;
Publication):

 

(a)            

all Confidential
Information disclosed by a Party (the “Disclosing Party”) or its
Affiliates under this Agreement will be maintained in confidence
and otherwise safeguarded by the recipient Party (the
“Receiving
Party”) and its Affiliates using at least the same
standard of care as the Receiving Party uses to protect its own
proprietary or Confidential Information (but in no event less than
reasonable care);

 

(b)            

the Receiving
Party, its Affiliates and Representatives may only use any such
Confidential Information for the purposes of performing its
obligations or exercising its rights under this Agreement;
and

 

(c)            

the Receiving Party
may disclose Confidential Information of the Disclosing Party only
to: (i) the Receiving Party’s Affiliates; and (ii) employees,
directors, agents, contractors, Subcontractors, consultants and
advisers of the Receiving Party and its Affiliates and, in the case
of EverInsight as the Receiving Party, its Sublicensees, in each
case to the extent reasonably necessary for the purposes of, and
for those matters undertaken pursuant to, this Agreement
(collectively, the “Representatives”); provided, that
such Representatives are bound to maintain the confidentiality, and
not to make any unauthorized use, of the Confidential Information
in a manner consistent with this ARTICLE 10 (Confidentiality;
Publication).

 

10.2            

Exceptions. The foregoing obligations as
to particular Confidential Information of a Disclosing Party shall
not apply to the extent that the Receiving Party can demonstrate by
competent evidence that such Confidential Information:

 

(a)            

is known by the
Receiving Party at the time of its receipt, and not through a prior
disclosure by the Disclosing Party, as demonstrated by
documentation or other competent proof of the Receiving Party, but
excluding Joint Inventions or the terms of this
Agreement;

 

(b)            

is in the public
domain by use and/or publication before its receipt from the
Disclosing Party, or thereafter enters the public domain through no
fault of, or breach of this Agreement by, the Receiving
Party;

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-33-

 

 

(c)            

is subsequently
disclosed to the Receiving Party on a non-confidential basis by a
Third Party who, to the Receiving Party’s knowledge after
reasonable inquiry, may lawfully do so and is not under an
obligation of confidentiality to the Disclosing Party;
or

 

(d)            

is developed by the
Receiving Party independently and without use of or reference to
any Confidential Information disclosed to, or materials provided
to, it by or on behalf of the Disclosing Party, as shown by
contemporaneous written documents of the Receiving
Party.

 

10.3            

Authorized Disclosures. Notwithstanding
the obligations set forth in Section 10.1 (Duty of Confidence), the
Receiving Party may disclose Confidential Information of the
Disclosing Party and the terms of this Agreement to the extent such
disclosure is reasonably necessary for such Disclosing Party to
perform its obligations or exercise its rights under this
Agreement, in the following instances:

 

(a)            

filing or
prosecuting of Patents as permitted by this Agreement;

 

(b)            

enforcing the
Receiving Party’s rights under this Agreement or performing
the Receiving Party’s obligations under this
Agreement;

 

(c)            

in Regulatory
Filings for Licensed Product that such Party has the right to file
under this Agreement;

 

(d)            

prosecuting or
defending litigation as permitted by this Agreement;

 

(e)            

to the Receiving
Party’s Representatives and actual or potential Sublicensees
(in the case of EverInsight), in each case, who have a need to know
such Confidential Information in order for the Receiving Party to
exercise its rights or fulfill its obligations under this
Agreement; provided, in each case, that any such Person agrees to
be bound by terms of confidentiality and non-use (or, in the case
of the Receiving Party’s attorneys and independent
accountants, such Person is obligated by applicable professional or
ethical obligations) at least as restrictive as those set forth in
this ARTICLE 10 (Confidentiality; Publication);

 

(f)            

to actual or
potential investors, investment bankers, lenders, other financing
sources or acquirers (and attorneys and independent accountants
thereof) in connection with potential investment, acquisition,
collaboration, merger, public offering, due diligence or similar
investigations by such Third Parties or in confidential financing
documents; provided, in each case, that any such Third Party agrees
to be bound by terms of confidentiality and non-use (or, in the
case of the Receiving Party’s attorneys and independent
accountants, such Third Party is obligated by applicable
professional or ethical obligations) that are no less stringent
than those contained in this Agreement (except to the extent that a
shorter confidentiality period is customary in the industry);
and

 

(g)            

such disclosure is
required by court order, judicial or administrative process or
Applicable Laws; provided that in such event the Receiving Party
shall promptly inform the Disclosing Party of such required
disclosure and provide the Disclosing Party an opportunity to
challenge or limit the disclosure obligations. Confidential
Information that is disclosed as required by court order, judicial
or administrative process or Applicable Laws shall remain otherwise
subject to the confidentiality and non-use provisions of this
ARTICLE 10 (Confidentiality; Publication), and the Receiving Party
shall take all steps reasonably necessary, including seeking of
confidential treatment or a protective order, to ensure the
continued confidential treatment of such Confidential
Information.

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-34-

 

 

10.4            

Publication. Prior to publishing or
presenting the results of any studies carried out under this
Agreement or otherwise related to the Compound or Licensed Product,
the publishing or presenting Party shall submit the draft of the
publication or presentation to the other Party no later than
forty-five (45) calendar days prior to the planned submission for
publication or presentation for the other Party’s review and
comment. The publishing or presenting Party shall: (a) consider in
good faith any comments thereto provided by the other Party within
such review period; and (b) remove any Confidential Information of
the other Party if requested by the other Party. The other Party
shall be deemed to have consented to such publication or
presentation if it has not sent any response to the publishing or
presenting Party’s request within thirty (30) calendar days
of receipt of the draft publication or presentation from the
publishing or presenting Party. The other Party may reasonably
request a reasonable delay in publication or presentation in order
to protect patentable information. If the other Party reasonably
requests a delay, then the publishing or presenting Party shall,
and shall ensure that its Affiliate(s) or the Sublicensee(s) shall,
delay submission or presentation for a period of sixty (60)
calendar days (or such shorter period as may be mutually agreed by
the Parties) to enable the other Party to file patent applications
protecting the other Party’s rights in such
information.

 

10.5            

Publicity/Use of Names. The Parties
intend to agree upon the content of one (1) or more press releases,
the release of which the Parties shall coordinate in order to
accomplish such release promptly upon execution of this Agreement.
Other than as set forth in the prior sentence, no other disclosure
of the existence, or the terms, of this Agreement may be made by
either Party or its Affiliates, and neither Party shall use the
name, trademark, trade name or logo of the other Party, its
Affiliates or their respective employee(s) in any publicity,
promotion, news release or disclosure relating to this Agreement or
its subject matter, without the prior express written permission of
the other Party, except as may be required by Applicable Laws.
Notwithstanding the above, each Party and its Affiliates may
disclose on its website, in news releases, its promotional
materials and other disclosures relating to this Agreement that the
other Party is a development and commercialization partner of such
Party for the Licensed Product in the Territory and may use the
other Party’s name and logo in conjunction with such
disclosure. Notwithstanding the foregoing:

 

(a)            

A Party may
disclose this Agreement and its terms, and material developments or
material information generated under this Agreement, in news
releases and securities filings with the U.S. Securities and
Exchange Commission (“SEC”) (or equivalent foreign
agency) to the extent required by Applicable Laws after complying
with the procedure set forth in this Section 10.5 (Publicity/Use of
Names). In such event, the Party seeking to make such disclosure
will prepare a draft of such disclosure together with, if
applicable, a confidential treatment request to request
confidential treatment for this Agreement and proposed redacted
version of this Agreement, and the other Party agrees to promptly
(and in any event, no less than three (3) Business Days after
receipt of such request for disclosure required for 8-K and no less
than five (5) Business Days for other disclosure, including, if
applicable, proposed redactions) give its input in a reasonable
manner in order to allow the Party seeking disclosure to file its
request within the time lines prescribed by applicable SEC
regulations. The Party seeking such disclosure shall exercise
Commercially Reasonable Efforts to obtain confidential treatment of
this Agreement from the SEC as represented by the redacted version
reviewed and agreed upon in good faith by the other
Party.

 

(b)            

Further, each Party
acknowledges that the other Party may be legally required, or may
be required by the listing rules of any exchange on which the other
Party’s or its Affiliate’s securities are traded or
advised by its counsel, to make public disclosures (including in
filings with the SEC or other agency) of certain material
developments or material information generated under this Agreement
and agrees that each Party may make such disclosures as required by
law, listing rules or advice; provided that the Party seeking such
disclosure shall provide the other Party with a copy of the
proposed text of such disclosure sufficiently in advance of the
scheduled release to afford such other Party a reasonable
opportunity to review and comment thereon.

 

(c)            

If either Party
desires to issue a press release or make a public announcement
concerning the material terms of this Agreement or the Development,
Commercialization or Exploitation of the Compound or the Licensed
Product under this Agreement, such as the achievement of Regulatory
Approvals of the Licensed Product or data from a clinical trial,
such Party shall provide the other Party with the proposed text of
such announcement for prior review and, except to the extent such
press release or public announcement is permitted by subsection (a)
or (b) above, approval by such other Party.

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-35-

 

 

(d)            

The Parties agree
that after a public disclosure has been made or a press release or
other public announcement has been issued in compliance with
subsection (a), (b) or (c) hereof, each Party may make subsequent
public disclosures or issue press releases or other public
announcements disclosing the same content without having to obtain
the other Party’s prior consent and approval.

 

10.6            

Reporting of Financial Information. From
and after the Effective Date, to the extent required by the SEC (or
equivalent foreign agency) in connection with EverInsight or an
Affiliate of EverInsight registering securities in a public
offering, VistaGen shall (a) cooperate with EverInsight or its
Affiliates and their respective accountants and auditors by
providing copies of books, and records related to the Licensed
Product as EverInsight may reasonably request in connection with
the preparation by EverInsight or its Affiliates of historical and
pro forma financial statements related to the Licensed Product as
may be required to be included in any filing made by EverInsight or
any of its Affiliates under the Securities Act of 1933, as amended,
or the Securities Exchange Act of 1934, as amended, and the
regulations promulgated thereunder, including Regulation S-X (or
equivalent foreign laws and regulations) and (b) without limiting
the foregoing, shall provide EverInsight with such information as
is required for EverInsight or its Affiliates to prepare audited
“carve out” financial statements related to the
Licensed Product, for the three (3) Calendar Years prior to the
Effective Date (or such shorter period as agreed to by EverInsight)
and information requested by EverInsight and reasonably necessary
to prepare any applicable pro forma financial information required
to be filed by EverInsight with the SEC (or equivalent foreign
agency). EverInsight may also derive such “carve out”
financial statements from VistaGen’s historical financial
statements and accurately present in all material respects the
financial position of the Licensed Product in the Licensed Field in
the Territory as of the dates thereof. EverInsight shall (i) submit
to VistaGen any proposed filing containing or incorporating by
reference any financial statements provided to EverInsight under
this Section 10.6 (Reporting of Financial Information) as far in
advance as reasonably practicable (and in no event, unless
inconsistent with Applicable Laws, less than fifteen (15) days
prior to the anticipated date of filing) so as to provide VistaGen
a reasonable opportunity to comment thereon and (ii) in good faith
consider incorporating such comments. All information of VistaGen
obtained by or on behalf of EverInsight under this Section 10.6
(Reporting of Financial Information) shall be deemed Confidential
Information of VistaGen.

 

10.7            

Privileged Communications. In
furtherance of this Agreement, it is expected that the Parties may,
from time to time, disclose to one another privileged
communications with counsel, including opinions, memoranda, letters
and other written, electronic and verbal communications. Such
disclosures are made with the understanding that they shall remain
confidential in accordance with this ARTICLE 10 (Confidentiality;
Publication), that they will not be deemed to waive any applicable
attorney-client or attorney work product or other privilege and
that they are made in connection with the shared community of legal
interests existing between VistaGen and EverInsight, including the
community of legal interests in avoiding infringement of any valid,
enforceable patents of Third Parties and maintaining the validity
of the Licensed Patents, EverInsight Patents and Joint Patents. In
the event of any litigation (or potential litigation) with a Third
Party related to this Agreement or the subject matter hereof, the
Parties shall, upon either Party’s request, enter into a
reasonable and customary joint defense or common interest
agreement. In any event, each Party shall consult in a timely
manner with the other Party before engaging in any conduct (e.g.,
producing Information or documents) in connection with litigation
or other proceedings that could conceivably implicate privileges
maintained by the other Party. Notwithstanding anything contained
in this Section 10.7 (Privileged Communications), nothing in this
Agreement shall prejudice a Party’s ability to take discovery
of the other Party in disputes between them relating to the
Agreement and no information otherwise admissible or discoverable
by a Party shall become inadmissible or immune from discovery
solely by this Section 10.7 (Privileged
Communications).

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-36-

 

 

ARTICLE 11 TERM AND TERMINATION

 

11.1            

Term. Unless earlier terminated as
permitted by this Agreement, the term of this Agreement will
commence upon the Effective Date and continue in full force and
effect, on a jurisdiction-by-jurisdiction and Licensed
Product-by-Licensed Product basis, until expiration of the Royalty
Term for such Licensed Product in such jurisdiction the Territory
(the “Term”).
Following the expiration (but not the earlier termination) of the
Royalty Term for a Licensed Product in a jurisdiction in the
Territory, the grants in Section 2.1 (Licenses to EverInsight)
shall continue and become exclusive, fully-paid, royalty-free, and
irrevocable for such Licensed Product (existing at the time of such
expiration) in such jurisdiction. For clarity, (a) upon the
expiration (but not the earlier termination) of the Term, the
grants in Section 2.1 (Licenses to EverInsight) shall become
exclusive, fully-paid, royalty-free, and irrevocable in their
entirety solely as to the Licensed Product in the Territory at the
time of such expiration and (b) upon the expiration (but not the
earlier termination) of the Term, the grant in Section 2.2 (License
to VistaGen) shall become an exclusive, perpetual, fully- paid,
royalty-free and irrevocable license under the EverInsight
Technology to Exploit the Licensed Product (existing at the time of
such expiration) in the Licensed Field outside the Territory, in
each case with the right to grant sublicenses.

 

11.2            

Termination.

 

(a)            

Automatic Termination for Nonpayment of Upfront
Payment. If EverInsight fails to pay VistaGen the upfront
payment set forth in Section 8.1 (Upfront Payment) within thirty
(30) Business Days after the Effective Date; then, in any such
case, this Agreement will automatically and immediately
terminate.

 

(b)            

Termination by EverInsight for Convenience. At any
time, EverInsight may terminate this Agreement (either in its
entirety or on a Licensed Product-by-Licensed Product and
jurisdiction-by-jurisdiction basis), at its sole discretion and for
any reason or no reason, by providing written notice of termination
to VistaGen, which notice includes an effective date of termination
at least [*****] after the date
of the notice.

 

(c)            

Termination for Cause. If either
VistaGen or EverInsight believes that the other Party is in
material breach of its obligations hereunder, then the
non-breaching Party may deliver notice of such breach to the other
Party. The allegedly breaching Party shall have (i) [*****] Business Days in
the case of a payment breach and or (ii) [*****] Business Days in
the case of a non-payment breach, to cure such breach from the
receipt of the notice. If the allegedly breaching Party fails to
cure that breach within the applicable period set forth above, or
has not undertaken reasonable steps to cure the breach if a
complete cure is not reasonably to be expected within such period,
then the Party originally delivering the notice of breach may
terminate this Agreement on written notice of termination. Any
right to terminate this Agreement under this Section 11.2(c)
(Termination for Cause) shall be stayed and the applicable cure
period tolled in the event that, during such cure period, the Party
alleged to have been in material breach shall have initiated
dispute resolution in accordance with Section 14.10 (Dispute
Resolution) with respect to the alleged breach, which stay and
tolling shall continue until such dispute has been resolved in
accordance with Section 14.10 (Dispute Resolution). If a Party is
determined to be in material breach of this Agreement, the other
Party may terminate this Agreement if the breaching Party fails to
cure the breach within thirty (30) Business Days after the
conclusion of the dispute resolution procedure (and such
termination shall then be effective upon written notification from
the notifying Party to the breaching Party).

 

(d)            

Termination for Patent Challenge.
VistaGen may terminate this Agreement immediately upon prior
written notice to EverInsight if EverInsight or its Affiliates or
its or their Sublicensees, individually or in association with any
other person or entity, directly or indirectly, commences or
participates in a Challenge to the validity or enforceability of
any Licensed Patents, unless EverInsight, such Affiliate or
Sublicensee dismisses or withdraws such Challenge within
[*****]
days, or in the case of a Challenge by a Sublicensee, EverInsight
terminates the sublicense agreement with such Sublicensee within
[*****]
days. EverInsight may terminate the license granted by EverInsight
to VistaGen this Agreement (but retain the license granted by
VistaGen to EverInsight hereunder) immediately upon prior written
notice to VistaGen if VistaGen or its Affiliates or its or their
Sublicensees, individually or in association with any other person
or entity, directly or indirectly, commences or participates in a
Challenge to the validity or enforceability of any EverInsight
Patents, unless VistaGen, such Affiliate or Sublicensee dismisses
or withdraws such Challenge within [*****] days, or in the
case of a Challenge by a Sublicensee, VistaGen terminates the
sublicense agreement with such Sublicensee within [*****]
days.

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-37-

 

 

(e)            

Termination for Bankruptcy. This
Agreement may be terminated at any time during the Term by either
Party upon the other Party’s filing or institution of
bankruptcy, reorganization, liquidation or receivership
proceedings, or upon an assignment of a substantial portion of the
assets for the benefit of creditors by the other Party; provided
that in the case of any involuntary bankruptcy proceeding such
right to terminate shall only become effective if the Party
consents to the involuntary bankruptcy or such proceeding is not
dismissed within [*****] days after the
filing thereof.

 

11.3            

Effect of Termination. Upon termination
of this Agreement by either Party, the following consequences shall
apply and shall be effective as of the effective date of such
termination (if this Agreement is terminated on a Licensed
Product-by-Licensed Product and jurisdiction-by-jurisdiction basis,
then this Section 11.3 shall only apply to the terminated Licensed
Product in the terminated jurisdiction):

 

(a)            

EverInsight’s
license under Section 2.1 (License to EverInsight) shall terminate
and all milestone and any other payments accruing prior to the
effective date of termination will be paid by EverInsight on or
before the termination date and all reports and accountings that
are due prior to the effective date of termination shall be
submitted by EverInsight on or before the termination
date.

 

(b)            

If this Agreement
is terminated in its entirety by VistaGen pursuant to Section
11.2(c) (Termination for Cause), 11.2(d) (Termination for Patent
Challenge), or 11.2(e) (Termination for Bankruptcy), or if this
Agreement is terminated by EverInsight in its entirety pursuant to
Section 11.2(b) (Termination by EverInsight for Convenience), then
EverInsight hereby grants to VistaGen, effective only upon such
termination, an exclusive (even as to EverInsight), royalty-free,
fully-paid, perpetual and irrevocable license, with the right to
grant sublicenses through multiple tiers, under the EverInsight
Technology, EverInsight Development Data and EverInsight Regulatory
Documentation, to Develop, make, have made, use, import, offer for
sale, sell and otherwise Commercialize or Exploit the Compound and
any product containing the Compound anywhere in the world in all
fields of use. During a reasonable period of time (but no more than
six (6) months) after termination, EverInsight shall reasonably
cooperate with VistaGen to facility the transfer of the Development
and regulatory activities for the Compound and Licensed Product to
VistaGen.

 

(c)            

If this Agreement
is terminated by EverInsight pursuant to Section 11.2(c)
(Termination for Cause), or 11.2(e) (Termination for Bankruptcy),
then VistaGen may request, within [*****] days of such
termination, that EverInsight enter into good faith negotiations
for no more than [*****] days concerning
the terms of an agreement with EverInsight granting to VistaGen an
exclusive (even as to EverInsight) license under the EverInsight
Technology, EverInsight Development Data and EverInsight Regulatory
Documentation. If no agreement is reached, then the license to
VistaGen under Section 2.2 (License to VistaGen) shall
terminate.

 

(d)            

If this Agreement
is terminated in its entirety, VistaGen shall be solely responsible
for all future worldwide Development, Manufacture and
Commercialization of the Compound and Licensed Product in the
Licensed Field, at its sole cost and expense.

 

(e)            

If this Agreement
is terminated in its entirety, each Party shall return to the other
Party or destroy, at the other Party’s election, all
Confidential Information of the other Party, including all copies
thereof and all materials, substances and compositions delivered or
provided by or on behalf of the other Party; except that (i) each
Party may retain one copy of the other Party’s Confidential
Information for legal archival purpose, and neither Party shall be
required to delete or destroy any electronic back-up tapes or other
electronic back-up files that have been created solely by automatic
or routine archiving and back-up procedures; and (ii) if the
Parties reach agreement with respect to a license grant by
EverInsight to VistaGen under clause (c) or VistaGen has license
rights under clause (b), then VistaGen shall not be required to
return or destroy EverInsight’s Confidential Information to
the extent VistaGen has the right to use such Confidential
Information solely as necessary to practice such
license.

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-38-

 

 

(f)            

If VistaGen
automatically has license rights under clause 11.3(b) or the
Parties reach agreement with respect to a license grant by
EverInsight to VistaGen under clause 11.3(c) then:

 

(i)            

EverInsight shall
deliver to VistaGen all Regulatory Filings and Regulatory Approvals
for the Compound and any Licensed Product, all EverInsight
Development Data and all EverInsight Know-How.

 

(ii)            

EverInsight shall
(1) disclose to VistaGen all EverInsight Know-How, EverInsight
Development Data and all Joint Inventions to the extent not already
known to VistaGen, which may be necessary or reasonably useful for
VistaGen to continue to Develop, Manufacture and Commercialize the
Compound and Licensed Product in the Licensed Field; and (2), at
VistaGen’s request, provide reasonable technical assistance
and transfer all EverInsight Know-How, EverInsight Development Data
and Joint Inventions necessary to Manufacture the Compound or
Licensed Product to VistaGen or its designee; provided that
VistaGen shall reimburse EverInsight for the reasonable cost and
expense of such technical assistance.

 

(iii)            

EverInsight shall,
at VistaGen’s request and election, introduce VistaGen to
EverInsight’s Third Party providers of clinical research,
manufacturing and/or distribution services and assign any contracts
with such entities to VistaGen to the extent such contracts (or
portions thereof, such as a work order under a master services
agreement) relate solely to the Licensed Product and are assignable
to VistaGen.

 

(iv)            

EverInsight shall
transfer to VistaGen all units of the Compound and the Licensed
Product in its possession, provided that VistaGen shall reimburse
EverInsight for the Cost of Goods of such units.

 

(v)            

EverInsight shall,
and hereby does, effective on such termination, assign to VistaGen
all of EverInsight’s and its Affiliates’ right, title
and interest in and to any and all Product Trademarks and other
trademarks used by EverInsight and its Affiliates in the Territory
in connection with its Development, Manufacture or
Commercialization of Licensed Product (excluding any such
trademarks that include, in whole or part, any corporate name or
logo of EverInsight or its Affiliates), including all goodwill
therein, and EverInsight shall promptly take such actions and
execute such instruments, assignments and documents as may be
necessary to effect, evidence, register and record such
assignment.

 

11.4            

Survival. Expiration or termination of
this Agreement shall not relieve any Party of any obligation
accruing prior to such expiration or termination, nor shall
expiration or any termination of this Agreement preclude either
Party from pursuing all rights and remedies it may have under this
Agreement, at law or in equity, with respect to breach of this
Agreement. In addition, the provisions of ARTICLE 1 (Definitions),
subclauses (b) through (d) of Section 5.4 (Rights of Reference),
Section 8.8 (Taxes), Section 8.9 (Financial Records and Audit),
Section 8.10 (Audit Dispute), Section 9.1 (Ownership of
Intellectual Property); ARTICLE 10 (Confidentiality; Publicity),
Section 11.3 (Effect of Termination), this Section 11.4 (Survival),
ARTICLE 13 (Indemnification; Liability), and ARTICLE 14 (General
Provisions) hereof shall survive the expiration or termination of
this Agreement. In addition, in the event that the this Agreement
is terminated by EverInsight pursuant to Section 11.2(c)
(Termination for Cause) and, pursuant to Section 11.3 (Effect of
Termination), either VistaGen does not timely request that
EverInsight enter into good faith negotiations concerning the terms
of an agreement with VistaGen granting VistaGen a license under the
EverInsight Technology and EverInsight Development Data, or if no
agreement is timely reached, then the provisions of Sections 9.2
through 9.9 of ARTICLE 9 (Intellectual Property), solely with
respect to Joint Inventions, shall also survive the expiration or
termination of this Agreement.

 

11.5            

Termination Not Sole Remedy. Termination
is not the sole remedy under this Agreement and, whether or not
termination is effected, and notwithstanding anything contained in
this Agreement to the contrary, all other remedies will remain
available except as agreed to otherwise herein.

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-39-

 

 

11.6            

Alternative Remedy for VistaGen’s
Breach. In the event EverInsight would be entitled to
terminate this Agreement pursuant Section 11.2(c) for
VistaGen’s uncured material breach, but if EverInsight does
not desire to exercise such termination right, then, EverInsight
may, in its sole discretion and without waiving or releasing any
right, claim or remedy for such breach, elect to maintain this
Agreement in full force and effect and reduce all future payments
due to VistaGen hereunder by [*****].

 

ARTICLE 12 REPRESENTATIONS AND WARRANTIES

 

12.1            

Representations and Warranties of Each
Party. Each Party represents and warrants to each other
Parties as of the Effective Date that:

 

(a)            

it has the full
right, power and authority to enter into this Agreement, to perform
its obligations hereunder;

 

(b)            

this Agreement has
been duly executed by it and is legally binding upon it,
enforceable in accordance with its terms, and does not conflict
with any agreement, instrument or understanding, oral or written,
to which it is a party or by which it may be bound, nor violate any
material law or regulation of any court, governmental body or
administrative or other agency having jurisdiction over
it;

 

(c)            

this Agreement is a
legal, valid and binding obligation of such Party enforceable
against it in accordance with its terms and conditions, subject to
the effects of bankruptcy, insolvency or other laws of general
application affecting the enforcement of creditor rights, judicial
principles affecting the availability of specific performance and
general principles of equity (whether enforceability is considered
a proceeding at law or equity);

 

(d)            

it is not under any
obligation, contractual or otherwise, to any Person that conflicts
with or is inconsistent in any material respect with the terms of
this Agreement or that would impede the diligent and complete
fulfillment of its obligations hereunder; and

 

12.2            

Mutual Covenants.

 

(a)            

Employees, Consultants and Contractors.
Each Party covenants that it has obtained or will obtain written
agreements from each of its employees, consultants and contractors
who perform Development activities pursuant to this Agreement,
which agreements will obligate such persons to obligations of
confidentiality and non-use and to assign Inventions in a manner
consistent with the provisions of this Agreement.

 

(b)            

Debarment. Each Party represents,
warrants and covenants to the other Parties that it is not debarred
or disqualified under the FFDCA, as may be amended, or comparable
laws in any country or jurisdiction other than the U.S., and it has
not employed or used, does not, and will not during the Term,
employ or use the services of any person who is debarred or
disqualified, in connection with activities relating to the
Compound or any Licensed Product. In the event that any Party
becomes aware of the debarment or disqualification or threatened
debarment or disqualification of any person providing services to
such Party, including the Party itself or its Affiliates, that
directly or indirectly relate to activities contemplated by this
Agreement, such Party shall immediately notify the other Parties in
writing and such Party shall cease employing, contracting with, or
retaining any such person to perform any such
services.

 

(c)            

Compliance. Each Party covenants as
follows:

 

(1)            

In the performance
of its obligations under this Agreement, such Party shall comply
and shall cause its and its Affiliates’ employees and
contractors to comply with all Applicable Laws, including all
export control, anti-corruption and anti-bribery laws and
regulations, and shall not cause such other Party to be in
violation of any Applicable Laws.

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-40-

 

 

(2)            

Such Party and its
and its Affiliates’ employees and contractors shall not, in
connection with the performance of their respective obligations
under this Agreement, directly or indirectly through Third Parties,
pay, promise or offer to pay, or authorize the payment of, any
money or give any promise or offer to give, or authorize the giving
of anything of value to a Public Official or Entity or other person
for purpose of obtaining or retaining business for or with, or
directing business to, any person, including, without limitation,
either Party. Each Party represents and warrants that as of the
Effective Date, such Party, and to its knowledge, its and its
Affiliates’ employees and contractors, have not directly or
indirectly promised, offered or provided any corrupt payment,
gratuity, emolument, bribe, kickback, illicit gift or hospitality
or other illegal or unethical benefit to a Public Official or
Entity or any other person in connection with the performance of
such Party’s obligations under this Agreement, and each Party
covenants that it and its Affiliates’ employees and
contractors shall not, directly or indirectly, engage in any of the
foregoing.

 

(3)            

Each Party shall
have the right to suspend or terminate this Agreement in its
entirety where there is a credible finding, after a reasonable
investigation, that the other Party, in connection with performance
of such other Party’s obligations under this Agreement, has
materially violated any anti-corruption or anti-bribery laws or
regulations.

 

(4)            

Each Party shall
not, during the Term, assign, transfer, convey or otherwise
encumber its right, title and interest in (A) Licensed Technology,
in the case of VistaGen, in a manner that is inconsistent with the
exclusive license granted to EverInsight under Section 2.1
(Licenses to EverInsight) or (B) EverInsight Technology, in the
case of EverInsight, in a manner that is inconsistent with the
exclusive license granted to VistaGen under Section 2.2 (License to
VistaGen), in each case without the prior written consent of the
other Party (which consent shall not be unreasonably withheld,
conditioned or delayed)

 

(5)            

Each Party shall
not grant any right to any Third Party under the (A) Licensed
Technology (in the case of VistaGen) that would conflict with the
rights granted to EverInsight hereunder, or (B) EverInsight
Technology (in the case of EverInsight) that would conflict with
the rights granted to VistaGen hereunder.

 

12.3            

Representations and Warranties by
VistaGen. VistaGen represents and warrants to EverInsight as
of the Effective Date that:

 

(a)            

The patents and
patent applications listed on Exhibit A constitute all Licensed
Patents existing as of the Effective Date (the “Existing Licensed
Patents”);

 

(b)            

Except for
[*****],
VistaGen is the sole and exclusive owner of all Licensed
Technology, free and clear from any mortgages, pledges, liens,
security interests, conditional and installment sales agreements,
encumbrances, charges or claims of any kind, and has the right to
grant the license to EverInsight as purported to be granted under
this Agreement;

 

(c)            

The Licensed
Technology is complete, accurate, effective and capable of
achieving the Development and Manufacturing of the Compound and the
Licensed Product. The Parties hereby irrevocably agree that the
Licensed Technology shall be deemed to be complete, accurate,
effective and capable of achieving the Development and
Manufacturing of the Compound and the Licensed Product (and the
foregoing representation and warranty shall be satisfied) if, after
the completion of relevant technology transfer, EverInsight (or its
contractor) is able to produce the Compound or the Licensed
Products (as the case may be) in a manner that (1) complies with
the specifications contained in (i) the technical documents
VistaGen provided to EverInsight for evaluation and (ii) IND(s)
submitted to the applicable Regulatory Authority(ies) and (2) does
not infringe or misappropriate any intellectual property of any
Third Party.

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-41-

 

 

(d)            

VistaGen has not
received any notice from a Third Party that the Development or
Manufacture of the Compound or any Licensed Product conducted by or
on behalf of VistaGen prior to the Effective Date has infringed any
Patents of any Third Party or infringed or misappropriated any
other intellectual property of any Third Party. Based on
VistaGen’s understanding as of the Effective Date of the
Compound and the Licensed Product and their intended use as
disclosed to EverInsight as of the Effective Date, the Development,
Manufacture, use or sale of any Compound or any Licensed Product
pursuant to this Agreement does not and will not, to the knowledge
of VistaGen, (y) infringe any Patents of any Third Party or (z)
infringe or misappropriate any other intellectual property of any
Third Party.

 

(e)            

To the knowledge of
VistaGen, the use of Licensed Trademark in connection with
Commercialization of the Licensed Product will not violate the
rights of any Third Party. No claim or action has been brought or,
to VistaGen’s knowledge, threatened in writing, by any
Governmental Authority or Third Party (i) that any Licensed
Trademark violates the rights of a Third Party or (ii) currently
challenging the enforceability or validity of any Licensed
Trademark;

 

(f)            

VistaGen has not as
of the Effective Date granted any right to any Third Party under
the Licensed Technology or Licensed Trademark that would conflict
with the rights granted to EverInsight hereunder;

 

(g)            

VistaGen has no
knowledge as of the Effective Date of any Third Party that is
infringing or misappropriating any of the Licensed Technology or
Licensed Trademark;

 

(h)            

no claim or action
has been brought or, to VistaGen’s knowledge, threatened in
writing by any Third Party involving any Compound, Licensed Product
and/or Licensed Technology, including any claim or action alleging
that the issued patents in the Licensed Patent Rights are invalid
or unenforceable, and any interference, opposition, cancellation or
other protest proceeding involving any Licensed Patents anywhere in
the world;

 

(i)            

to VistaGen’s
knowledge, as of the Effective Date, there is no Know-How owned or
controlled by VistaGen that is necessary for the Development of the
Compound that is not within the Licensed Know-How; and

 

(j)            

to VistaGen’s
knowledge, (x) all development works for the Compound and Licensed
Product, including clinical trials, conducted by VistaGen or its
Affiliates (including their contractors) prior to the Effective
Date have been in compliance in all material respects with all
Applicable Laws, and (y) no data or other information generated or
otherwise received from such clinical trials conducted up to the
Effective Date has, or is reasonably expected to have, any
materially negative impact on the Exploitation of any Licensed
Product in the Territory.

 

(k)            

To the knowledge of
VistaGen, VistaGen has obtained all necessary government approvals
required for the grant of the license and the transfer of the
Licensed Know-How to EverInsight, including such approvals required
by applicable technology export control laws, and VistaGen will do
and execute or procure to be done and executed all such further
acts, things, agreements and other documents as may be necessary to
give effect to the terms of this Agreement, including to comply
with the applicable technology import and export laws and
regulations in the United States and the Territory;

 

(l)            

Except for the
Pherin License, there is no agreement between VistaGen or its
Affiliates and any Third Party pursuant to which VistaGen or its
Affiliates have obtained any right or license to the Compound,
Licensed Product or Licensed Technology. VistaGen has provided
EverInsight with a copy of the Pherin License that is complete with
regard to the relevant provisions of this Agreement. The Pherin
License is in full force and effect. No notice of default or
termination has been received or given under the Pherin License.
There is no act or omission by VistaGen that would provide a right
to terminate the Pherin License;

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-42-

 

 

(m)            

During the Term of
this Agreement, VistaGen shall maintain [*****] each In-License
Agreement in full force and effect and shall not terminate, amend,
waive or otherwise modify (or consent to any of the foregoing) its
rights under [*****] any In-License
Agreement in any manner that materially diminishes the rights or
licenses granted to EverInsight hereunder, without
EverInsight’s express written consent, which shall not be
unreasonably withheld, conditioned or delayed, and VistaGen shall
provide EverInsight with a copy of all modifications to or
amendments thereto, regardless of whether EverInsight’s
consent was required with respect thereto. In the event of any
notice of breach of [*****] any In-License
Agreement by VistaGen, VistaGen shall immediately notify
EverInsight in writing, and if VistaGen fails to cure such breach
in a timely manner, EverInsight shall have the right, but not the
obligation, to cure such breach and to seek reimbursement of or
offset any reasonable amount incurred or paid by EverInsight in
connection with the cure against amount payable to VistaGen
hereunder. In the event of any notice of breach of [*****] any In-License
Agreement by the applicable Third Party in a manner that will or is
likely to materially affect EverInsight’s rights or
obligations under this Agreement, VistaGen shall immediately notify
EverInsight in writing and take such actions as reasonably
requested by EverInsight to enforce the [*****] In-License
Agreement; and

 

(n)            

All information
provided by VistaGen to EverInsight for due diligence purposes in
relation to this Agreement is complete and accurate in all material
respects. Without limiting the foregoing, VistaGen has disclosed or
made available to EverInsight for review all material non-clinical
and clinical data for the Compound and Licensed Product, and all
other material information (including relevant correspondence with
the FDA and other Regulatory Authorities) relating to the Compound
and Licensed Product, in each case that would be material for
EverInsight to assess the safety and efficacy of the Compound and
Licensed Product.

 

12.4            

Representations and Warranties by
EverInsight. EverInsight represents and warrants to VistaGen
as of the Effective Date that:

 

(a)            

EverInsight has not
previously assigned, transferred, conveyed or otherwise encumbered
its right, title and interest in EverInsight Technology in a manner
that is inconsistent with the exclusive license granted to VistaGen
under Section 2.2 (License to VistaGen);

 

(b)            

EverInsight has not
as of the Effective Date, and will not during the Term, grant any
right to any Third Party under the EverInsight Technology that
would conflict with the rights granted to VistaGen
hereunder;

 

(c)            

EverInsight has no
knowledge as of the Effective Date of any Third Party that is
infringing or misappropriating any of the EverInsight
Technology;

 

(d)            

no claim or action
has been brought or, to EverInsight’s knowledge, threatened
in writing by any Third Party alleging that the EverInsight Patents
are invalid or unenforceable, and no EverInsight Patent is the
subject of any interference, opposition, cancellation or other
protest proceeding; and

 

(e)            

as of the Effective
Date, EverInsight reasonably believes it has or will have the
capability and sufficient access to the financial resources
necessary to perform its obligations under this Agreement,
including without limitation, its obligations to (i) use
Commercially Reasonable Efforts to Develop, Exploit, Commercialize
and obtain Regulatory Approval for the Compounds and each Licensed
Product in the Licensed Field in the Territory and (ii) make the
required payments to VistaGen hereunder.

 

12.5            

No Other Warranties. EXCEPT AS EXPRESSLY
SET FORTH IN THIS AGREEMENT, NO PARTY MAKES, AND EACH PARTY
EXPRESSLY DISCLAIMS, ANY AND ALL WARRANTIES OF ANY KIND, EXPRESS OR
IMPLIED, INCLUDING THE WARRANTIES OF DESIGN, MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, VALIDITY OF PATENTS,
NON-INFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF THIRD
PARTIES, OR ARISING FROM A COURSE OF DEALING, USAGE OR TRADE
PRACTICES.

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-43-

 

 

ARTICLE 13 INDEMNIFICATION; LIABILITY

 

13.1            

Indemnification by VistaGen. VistaGen
shall indemnify, defend and hold EverInsight, its Affiliates, and
their respective officers, directors, agents and employees
(“EverInsight
Indemnitees”) harmless from and against any Claims
against them to the extent arising or resulting from:

 

(a)            

the material breach
by VistaGen of this Agreement;

 

(b)            

the gross
negligence or willful misconduct on the part of VistaGen or its
Affiliates or its or their respective officers, directors, agents
or employees in performing its obligations under this Agreement;
or

 

(c)            

the Exploitation by
VistaGen or any of its Affiliates or its or their sublicensees or
its or their distributors or contractors of the Compound or the
Licensed Product outside the Territory; or

 

(d)            

any Third Party
Infringement Claim that VistaGen is responsible for defending
pursuant to Section 9.5;

 

except,
in each case (a), (b) and (c) above, for those Claims for which
EverInsight has an obligation to indemnify VistaGen pursuant to
Section 13.2 (Indemnification by EverInsight) hereof or, to the
extent such Claims result from the material breach by EverInsight
of any covenant, representation, warranty or other agreement made
by EverInsight in this Agreement or the negligence or willful
misconduct of any EverInsight Indemnitee. Notwithstanding the
above, VistaGen will have no obligation to defend or indemnify
EverInsight or its Affiliates for any claim brought by a
shareholder or a class of shareholders of EverInsight or its
Affiliates including, but not limited to, securities fraud claims,
shareholder direct claims, and shareholder derivative claims,
except to the extent resulting from the gross negligence or willful
misconduct on the part of VistaGen or any Affiliate.

 

13.2            

Indemnification by EverInsight.
EverInsight shall indemnify, defend and hold VistaGen, its
Affiliates, and their respective officers, directors, agents and
employees (“VistaGen
Indemnities”) harmless from and against any Claims
arising under or related to this Agreement against them to the
extent arising or resulting from:

 

(a)            

the material breach
by EverInsight of this Agreement;

 

(b)            

the gross
negligence or willful misconduct on the part of EverInsight or its
Affiliates or its or their respective officers, directors, agents
or employees in performing its obligations under this Agreement;
or

 

(c)            

the Exploitation by
EverInsight or any of its Affiliates or its or their Sublicensees
or its or their distributors or contractors of the Compound or the
Licensed Product in the Territory;

 

except,
in each case (a), (b) and (c) above, those Claims for which
VistaGen has an obligation to indemnify EverInsight pursuant to
Section 13.1 (Indemnification by VistaGen) hereof or, to the extent
such Claims result from the material breach by VistaGen of any
covenant, representation (other than the representation set forth
in Section 12.3(d), warranty or other agreement made by VistaGen in
this Agreement or the negligence or willful misconduct of any
VistaGen Indemnitee. Notwithstanding the above, EverInsight will
have no obligation to defend or indemnify VistaGen or its
Affiliates for any claim brought by a shareholder or a class of
shareholders of VistaGen or its Affiliates including, but not
limited to, securities fraud claims, shareholder direct claims, and
shareholder derivative claims, except to the extent resulting from
the gross negligence or willful misconduct on the part of
EverInsight or any Affiliate.

 

13.3            

Indemnification
Procedure.

 

(a)            

Notice of Claim. All indemnification
claims in respect of a Party, its Affiliates or their respective
directors, officers, employees and agents shall be made solely by
such Party to this Agreement (the “Indemnified Party”). The
Indemnified Party shall give the other Party (the
“Indemnifying
Party”) a prompt written notice (an
“Indemnification Claim
Notice”) of any Claims or discovery of fact upon which
such Indemnified Party intends to base a request for
indemnification under this ARTICLE 13 (Indemnification; Liability)
within [*****] days from
written receipt of such Claim or discovery of facts that that might
give rise to such Claim. Each Indemnification Claim Notice must
contain a description of the Claim and the nature and amount of
such Claim (to the extent that the nature and amount of such Claim
is known at such time).

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-44-

 

 

(b)            

Control of Defense. The Indemnifying
Party shall have the right to assume the defense of any Claim by
giving written notice to the Indemnified Party within [*****] days
after the Indemnifying Party’s receipt of an Indemnification
Claim Notice. The assumption of the defense of a Claim by the
Indemnifying Party shall not be construed as an acknowledgment that
the Indemnifying Party is liable to indemnify the Indemnified Party
in respect of the Claim, nor shall it constitute a waiver by the
Indemnifying Party of any defenses it may assert against the
Indemnified Party’s claim for indemnification. Upon assuming
the defense of a Claim, the Indemnifying Party may appoint as lead
counsel in the defense of the Claim any legal counsel selected by
the Indemnifying Party; provided that it obtains the prior written
consent of the Indemnified Party (which consent shall not be
unreasonably withheld, conditioned or delayed). In the event the
Indemnifying Party assumes the defense of a Claim, upon the
Indemnifying Party’s relevant notice the Indemnified Party
shall immediately deliver to the Indemnifying Party all original
notices and documents (including court papers) received by the
Indemnified Party in connection with the Claim. Should the
Indemnifying Party assume the defense of a Claim, except as
provided in Section 13.3(c) (Right to Participate in Defense), the
Indemnifying Party shall not be liable to the Indemnified Party for
any legal expenses subsequently incurred by such Indemnified Party
in connection with the analysis, defense or settlement of the Claim
unless specifically requested and approved in writing by the
Indemnifying Party. In the event that it is ultimately determined
that the Indemnifying Party is not obligated to indemnify, defend
or hold harmless the Indemnified Party from and against the Claim,
the Indemnified Party shall reimburse the Indemnifying Party for
any and all reasonable and verifiable out-of-pocket costs and
expenses (including attorneys’ fees and costs of suit)
incurred by the Indemnifying Party in accordance with this ARTICLE
13 (Indemnification; Liability) in its defense of the
Claim.

 

(c)            

Right to Participate in Defense. Any
Indemnified Party shall be entitled to participate in the defense
of such Claim and to employ counsel of its choice for such purpose;
provided, however, that such employment shall be at the Indemnified
Party’s sole cost and expense unless (i) the employment
thereof has been specifically authorized in writing in advance by
the Indemnifying Party (in which case, the defense shall be
controlled as provided in Section 13.3(b) (Control of Defense),
with such provisions applying mutatis mutandis; (ii) the
Indemnifying Party has failed to assume the defense and employ
counsel in accordance with Section 13.3(b) (Control of Defense) (in
which case the Indemnified Party shall control the defense, with
the reasonable out-of-pocket expense with respect thereto borne by
the Indemnifying Party); or (iii) the interests of the indemnitee
and the Indemnifying Party with respect to such Claim are
sufficiently adverse to prohibit the representation by the same
counsel of both Parties under Applicable Laws, ethical rules or
equitable principles (in which case, the Indemnified Party shall
control its defense, with the reasonable out-of-pocket expense with
respect thereto borne by the indemnifying Party).

 

(d)            

Settlement. With respect to any Claims
relating solely to the payment of money damages in connection with
a Claim that shall not result in the applicable indemnitee(s)
becoming subject to injunctive or other relief or otherwise
adversely affect the business or interests of the Indemnified Party
in any manner and as to which the Indemnifying Party shall have
acknowledged in writing the obligation to indemnify the applicable
indemnitee hereunder, the Indemnifying Party shall have the sole
right to consent to the entry of any judgment, enter into any
settlement or otherwise dispose of such Claim, on such terms as the
Indemnifying Party, in its sole discretion, shall deem appropriate.
With respect to all other Claims in connection with Claims, where
the Indemnifying Party has assumed the defense of the Claim in
accordance with Section 13.3(b) (Control of Defense), the
Indemnifying Party shall have authority to consent to the entry of
any judgment, enter into any settlement or otherwise dispose of
such Claim; provided, it obtains the prior written consent of the
Indemnified Party (which consent shall not be unreasonably
withheld, conditioned or delayed). If the Indemnifying Party does
not assume and conduct the defense of a Claim as provided above,
the Indemnified Party may defend against such Claim; provided, that
the Indemnified Party shall not settle any Claim without the prior
written consent of the Indemnifying Party (which consent shall not
be unreasonably withheld, conditioned or delayed).

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-45-

 

 

(e)            

Cooperation. If the Indemnifying Party
chooses to defend or prosecute any Claim, the Indemnified Party
shall and shall cause each indemnitee to, cooperate in the defense
or prosecution thereof and furnish such records, information and
testimony, provide such witnesses and attend such conferences,
discovery proceedings, hearings, trials and appeals as may be
reasonably requested by the indemnifying Party in connection
therewith. Such cooperation shall include access during normal
business hours afforded to the Indemnifying Party to and reasonable
retention by the Indemnified Party of, records and information that
are reasonably relevant to such Claim and making the Indemnified
Party, the indemnitees and other employees and agents available on
a mutually convenient basis to provide additional information and
explanation of any material provided hereunder and the Indemnifying
Party shall reimburse the Indemnified Party for all of its, its
Affiliates’ and its and their sublicensees’ or their
respective directors’, officers’, employees’ and
agents’, as applicable, reasonable and verifiable
out-of-pocket expenses in connection therewith.

 

(f)            

Expenses. Except as provided above, the
costs and expenses, including fees and disbursements of counsel,
incurred by the Indemnified Party and its Affiliates and its and
their sublicensees and their respective directors, officers,
employees and agents, as applicable, in connection with any Claim
shall be reimbursed on a Calendar Quarter basis by the Indemnifying
Party, without prejudice to the Indemnifying Party’s right to
contest the Indemnified Party’s right to indemnification and
subject to refund in the event the Indemnifying Party is ultimately
held not to be obligated to indemnify the Indemnified
Party.

 

13.4            

Mitigation of Loss. Each Indemnified
Party will take and will procure that its Affiliates take all such
reasonable steps and actions as are reasonably necessary or as the
Indemnifying Party may reasonably require in order to mitigate any
Claims (or potential losses or damages) under this ARTICLE 13
(Indemnification; Liability). Nothing in this Agreement shall or
shall be deemed to relieve any Party of any common law or other
duty to mitigate any losses incurred by it.

 

13.5            

Special, Indirect and Other Losses.
EXCEPT IN THE EVENT OF A BREACH OF SECTION 2.7 (NON-DIVERSION),
SECTION 2.8 (NON-COMPETE) OR ARTICLE 10 (CONFIDENTIALITY;
PUBLICATION), NEITHER PARTY SHALL BE ENTITLED TO RECOVER FROM THE
OTHER PARTY ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE
DAMAGES IN CONNECTION WITH THIS AGREEMENT OR ANY LICENSE GRANTED
HEREUNDER; provided, however, that this Section 13.5 shall not be
construed to limit either Party’s indemnification obligations
under Section 13.1 (Indemnification by VistaGen) or Section 13.2
(Indemnification by EverInsight), as applicable.

 

13.6            

Insurance. Each Party, at its own
expense, shall maintain product liability and other appropriate
insurance in an amount consistent with sound business practice and
reasonable in light of its obligations under this Agreement during
the Term. Each Party shall provide a certificate of insurance
evidencing such coverage to the other Party upon
request.

 

ARTICLE 14 GENERAL PROVISIONS

 

14.1            

Governing Law. This Agreement shall be
governed by and construed in accordance with the law of Hong Kong
without reference to its conflicts of laws principles.

 

14.2            

Assignment.

 

(a)            

Except as expressly
provided hereunder, neither this Agreement nor any rights or
obligations hereunder may be assigned or otherwise transferred by
either Party without the prior written consent of the other Party
(which consent shall not be unreasonably withheld); provided that
either Party may assign or otherwise transfer this Agreement and
its rights and obligations hereunder without the other
Party’s consent: (a) in connection with the transfer or sale
of all or substantially all of the business or assets of such Party
to which this Agreement relates to a Third Party, whether by
merger, consolidation, divesture, restructure, sale of stock, sale
of assets or otherwise; provided that in the event of any such
transaction (whether this Agreement is actually assigned or is
assumed by the acquiring party by operation of law (e.g., in the
context of a reverse triangular merger)), intellectual property
rights of the acquiring party to such transaction (if other than
one of the Parties to this Agreement) and its Affiliates existing
prior to the transaction shall not be included in the technology
licensed hereunder; or (b) to an Affiliate, provided that the
assigning Party shall remain liable and responsible to the
non-assigning Party hereto for the performance and observance of
all such duties and obligations by such Affiliate; and provided,
further, that in any such case the assigning Party shall provide
written notice to the other Party within five (5) calendar days
after such assignment or transfer. The rights and obligations of
the Parties under this Agreement shall be binding upon and inure to
the benefit of the successors and permitted assigns of the Parties,
and the name of a Party appearing herein will be deemed to include
the name of such Party’s successors and permitted assigns to
the extent necessary to carry out the intent of this section. Any
assignment not in accordance with this Section 14.2 (Assignment)
shall be null and void.

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-46-

 

 

(b)            

The rights to
Information, materials and intellectual property, shall, in each of
cases (1) and (2) below, be automatically excluded from the rights
licensed or granted to the other Party under this
Agreement:

 

(1)            

Rights to
Information, materials and intellectual property controlled by a
Third Party permitted assignee of a Party that immediately prior to
such assignment (other than as a result of a license or other grant
of rights, covenant or assignment by such Party or its Affiliates
to, or for the benefit of, such Third Party); or

 

(2)            

Rights to
Information, materials and intellectual property controlled by an
Affiliate of a Party that becomes an Affiliate through any Change
of Control of such Party that was Controlled by such Affiliate (and
not such Party) immediately prior to such Change of Control (other
than as a result of a license or other grant of rights, covenant or
assignment by such Party or its other Affiliates to, or for the
benefit of, such Affiliate).

 

14.3            

Entire Agreement; Modification. This
Agreement is both a final expression of the Parties’
agreement and a complete and exclusive statement with respect to
all of its terms. This Agreement supersedes all prior and
contemporaneous agreements and communications, whether oral,
written or otherwise, concerning any and all matters contained
herein. No amendment, modification, release or discharge shall be
binding on the Parties unless in writing and duly executed by
authorized representatives of each of VistaGen and EverInsight;
provided that, pursuant to the definition of “Licensed
Trademarks” herein, VistaGen may designate in a writing to
EverInsight from time to time such other Trademarks, names and
logos as VistaGen may reasonably determine. In the event of any
inconsistencies between this Agreement and any schedules or other
attachments hereto, the terms of this Agreement shall
control.

 

14.4            

Relationship among the Parties. The
Parties’ relationship with one another, as established by
this Agreement, is solely that of independent contractors. This
Agreement does not create any partnership, joint venture or similar
business relationship between the Parties. Neither Party is a legal
representative of the other Party. Neither Party can assume or
create any obligation, representation, warranty or guarantee,
express or implied, on behalf of the other Party for any purpose
whatsoever. All persons employed by a Party shall be employees of
such Party and not of the other Party and all costs and obligations
incurred by reason of any such employment shall be for the account
and expense of such first Party.

 

14.5            

Non-Waiver. The failure of a Party to
insist upon strict performance of any provision of this Agreement
or to exercise any right arising out of this Agreement shall
neither impair that provision or right nor constitute a waiver of
that provision or right, in whole or in part, in that instance or
in any other instance. Any waiver by a Party of a particular
provision or right shall be in writing, shall be as to a particular
matter and, if applicable, for a particular period of time and
shall be signed by such Party. The rights and remedies provided
herein are cumulative and do not exclude any other right or remedy
provided by Applicable Law or otherwise available except as
expressly set forth herein.

 

14.6            

Force Majeure. Neither Party shall be
held liable or responsible to the other Party or be deemed to have
defaulted under or breached this Agreement for failure or delay in
fulfilling or performing any term of this Agreement (other than an
obligation to make payments unless the force majeure event affects
the payment process itself, such as bank closure or government
closure that affects the review and approval of the payment) when
such failure or delay is caused by or results from events beyond
the reasonable control of the non- performing Party, including
fires, floods, earthquakes, hurricanes, embargoes, shortages,
epidemics, quarantines, war, acts of war (whether war be declared
or not), terrorist acts, insurrections, riots, civil commotion,
strikes, lockouts or other labor disturbances (whether involving
the workforce of the non-performing Party or of any other Person),
acts of God or acts, omissions or delays in acting by any
governmental authority (including expropriation, seizure of works,
requisition, nationalization, exercise of march-in rights or
compulsory licensing, except to the extent such delay results from
the breach by the non-performing Party or any of its Affiliates of
any term or condition of this Agreement) and any material change in
the Applicable Laws of a Regulatory Authority that results in a
development, clinical or regulatory delay [*****]. The
non-performing Party shall notify the other Party of such force
majeure within thirty (30) days after such occurrence by giving
written notice to the other Party stating the nature of the event,
its anticipated duration and any action being taken to avoid or
minimize its effect. The suspension of performance shall be of no
greater scope and no longer duration than is necessary and the
non-performing Party shall use Commercially Reasonable Efforts to
remedy its inability to perform.

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-47-

 

 

14.7            

Export Control. This Agreement is made
subject to any restrictions concerning the export of products or
technical information from the United States or other countries
that may be imposed on the Parties from time to time. Each Party
agrees that it will not export, directly or indirectly, any
technical information acquired from the other Party under this
Agreement or any products using such technical information to a
location or in a manner that at the time of export requires an
export license or other governmental approval, without first
obtaining the written consent to do so from the appropriate agency
or other governmental entity in accordance with Applicable Laws.
VistaGen hereby undertakes to use Commercially Reasonable Efforts
to obtain necessary licenses (if required) for exporting the
Compound, the Licensed Product and the Licensed Technology from the
United States or other countries.

 

14.8            

Severability. If any provision of this
Agreement is held to be illegal, invalid or unenforceable under any
present or future law and if the rights or obligations of either
Party under this Agreement will not be materially and adversely
affected thereby: (a) such provision shall be fully severable; (b)
this Agreement shall be construed and enforced as if such illegal,
invalid or unenforceable provision had never comprised a part
hereof; (c) the remaining provisions of this Agreement shall remain
in full force and effect and shall not be affected by the illegal,
invalid or unenforceable provision or by its severance herefrom;
and (d) in lieu of such illegal, invalid or unenforceable
provision, there shall be added automatically as a part of this
Agreement a legal, valid and enforceable provision as similar in
terms to such illegal, invalid or unenforceable provision as may be
possible and reasonably acceptable to the Parties. To the fullest
extent permitted by Applicable Laws, each Party hereby waives any
provision of law that would render any provision hereof illegal,
invalid or unenforceable in any respect.

 

14.9            

Notices. Any notice to be given under
this Agreement must be in writing and delivered either (a) in
person or (b) by overnight courier, to the Party to be notified at
its address(es) given below for convenience, or at any address such
Party may designate by prior written notice to the other. Notice
shall be deemed sufficiently given for all purposes upon the date
of actual receipt.

 

If to
VistaGen:

 

VistaGen
Therapeutics, Inc.

343
Allerton Avenue

South
San Francisco, CA 94080

United
States of America

 

Attention:
CEO

 

with a
mandatory copy (which shall not constitute notice) to:

 

Reid
Adler, J.D.

Capital
Technology Law Group

5335
Wisconsin Ave., N.W., Suite 440

Washington, DC
20015

United
States of America

 

If to
EverInsight:

 

EverInsight
Therapeutics Inc.

Vistra
Corporate Services Centre

Wickhams
Cay II, Road Town

Tortola,
VG1110

British
Virgin Islands

ATTN:
CEO / General Counsel

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-48-

 

 

with a
mandatory copy to (which shall not constitute notice)
to:

 

Cooley
LLP

3175
Hanover Street

Palo
Alto, CA  94304-1130

ATTN:                       

Lila Hope,
Ph.D.

 

14.10            

Dispute Resolution.

 

(a)            

Except as provided
in Section 3.3(b)(i), (b)(ii), (c) or Excluded Claims as set forth
in subsection 14.10(g) below, if a dispute arises within the JSC
with respect to any decision under the jurisdiction of the JSC that
remains unresolved pursuant to Section 3.3 (JSC Decision-Making) or
otherwise between the Parties in connection with or relating to
this Agreement or any document or instrument delivered in
connection herewith (collectively, a “Dispute”), then either Party shall
have the right to refer such Dispute to the Executive Officers for
attempted resolution by good faith negotiations during a period of
forty-five (45) days. Any final decision mutually agreed to in
writing by the Executive Officers shall be conclusive and binding
on the Parties.

 

(b)            

The Executive
Officers shall negotiate in good faith and use reasonable efforts
to settle any Dispute arising from or related to this Agreement or
the breach thereof within such forty-five (45) day period. Subject
to Section 14.10(h) (Dispute Resolution - subsection (h)), in the
event the Executive Officers cannot fully resolve or settle such
Dispute within such period, and a Party wishes to pursue the matter
further, each such Dispute that is not an Excluded Claim (defined
in Section 14.10(g) (Dispute Resolution - subsection (g)) below)
shall be finally resolved by binding arbitration administered by
the Hong Kong International Arbitration Centre (“HKIAC”) in accordance with its
arbitration rules then in effect.

 

(c)            

The arbitration
shall be conducted by a panel of three (3) neutral arbitrators
experienced in the pharmaceutical business, none of whom shall be a
current or former employee or director, or a current stockholder,
of either Party or any of their respective Affiliates or any
Sublicensee. Within thirty (30) days after initiation of
arbitration, each Party shall select one (1) person to act as
arbitrator and the two (2) Party-selected arbitrators shall select
a third arbitrator within thirty (30) days of their appointment. If
the arbitrators selected by the Parties are unable or fail to agree
upon the third arbitrator, the third arbitrator shall be appointed
by the HKIAC (or its successor entity) in accordance with the
then-current HKIAC arbitration rules, except as modified in this
Agreement. The place of arbitration shall be in Hong Kong, and all
proceedings and communications shall be in English. The procedures
for the taking of evidence shall be governed by the HKIAC. The
decision or award rendered by the arbitrators shall be final,
binding, conclusive and non-appealable, and judgment may be entered
upon it in accordance with Applicable Laws in the Hong Kong or any
other court of competent jurisdiction.

 

(d)            

Either Party may
apply to the arbitrators for interim injunctive relief until the
arbitration award is rendered or the controversy is otherwise
resolved. The arbitrators’ authority to award punitive or any
other type of damages not measured by a Party’s compensatory
damages shall be subject to the limitation set forth in Section
13.5 (Special, Indirect and Other Losses). Each Party shall bear
its own costs and expenses and attorneys’ fees and an equal
share of the arbitrators’ fees and any administrative fees of
arbitration.

 

(e)            

Except to the
extent necessary to confirm or enforce an award or as may be
required by law, neither Party nor an arbitrator may disclose the
existence, content, or results of an arbitration without the prior
written consent of the other Party. In no event shall an
arbitration be initiated after the date when commencement of a
legal or equitable proceeding based on the dispute, controversy or
claim would be barred by the applicable Hong Kong statute of
limitations.

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-49-

 

 

(f)            

The Parties agree
that, in the event of a dispute over the nature or quality of
performance under this Agreement, neither Party may terminate this
Agreement until final resolution of the dispute through arbitration
or other judicial determination. The Parties further agree that any
payments made pursuant to this Agreement pending resolution of the
dispute shall be refunded if an arbitrator or court determines that
such payments are not due.

 

(g)            

As used in this
Section, the term “Excluded Claim” means a dispute,
controversy or claim that concerns the construction, scope,
validity, enforceability, inventorship or infringement of a patent,
patent application, trademark or copyright.

 

(h)            

Nothing contained
in this Agreement shall deny either Party the right to seek
injunctive or other equitable relief from a court of competent
jurisdiction in the context of a bona fide emergency or prospective
irreparable harm, and such an action may be filed and maintained
notwithstanding any ongoing discussions between the Parties or any
ongoing arbitration proceeding. In addition, either Party may bring
an action in any court of competent jurisdiction to resolve
disputes pertaining to the construction, scope, validity,
enforceability, inventorship or infringement of a patent, patent
application, trademark or copyright, and no such claim shall be
subject to arbitration pursuant to subsections (b) and (c) of this
Section 14.10 (Dispute Resolution). Both Parties agree to waive any
requirement that the other (i) post a bond or other security as a
condition for obtaining any such relief; or (ii) show irreparable
harm, balancing of harms, consideration of the public interest or
inadequacy of monetary damages as a remedy.

 

14.11            

Performance by Affiliates. Each Party
may discharge any obligations and exercise any rights hereunder
through any of its Affiliates. Each Party hereby guarantees the
performance by its Affiliates of such Party’s obligations
under this Agreement and shall cause its Affiliates to comply with
the provisions of this Agreement in connection with such
performance. Any breach by a Party’s Affiliate of any of such
Party’s obligations under this Agreement shall be deemed a
breach by such Party, and the other Party may proceed directly
against such Party without any obligation to first proceed against
such Party’s Affiliate.

 

14.12            

Headings. The captions to the several
Articles, Sections and subsections hereof are not a part of this
Agreement but are merely for convenience to assist in locating and
reading the several Articles and Sections hereof.

 

14.13            

Waiver of Rule of Construction. Each
Party has had the opportunity to consult with counsel in connection
with the review, drafting and negotiation of this Agreement.
Accordingly, the rule of construction that any ambiguity in this
Agreement shall be construed against the drafting Party shall not
apply.

 

14.14            

Business Day Requirements. In the event
that any notice or other action or omission is required to be taken
by a Party under this Agreement on a day that is not a Business Day
then such notice or other action or omission shall be deemed to
require to be taken on the next occurring Business
Day.

 

14.15            

English Language. This Agreement has
been prepared in the English language, and the English language
shall control its interpretation. In addition, all notices required
or permitted to be given hereunder, and all written, electronic,
oral or other communications between the Parties regarding this
Agreement shall be in the English language

 

14.16            

No Benefit to Third Parties. Except as
provided in ARTICLE 13 (Indemnification; Liability), the covenants
and agreements set forth in this Agreement are for the sole benefit
of the Parties hereto and their successors and permitted assigns
and they shall not be construed as conferring any rights on any
other Persons.

 

14.17            

Further Assurances. Each Party shall
duly execute and deliver, or cause to be duly executed and
delivered, such further instruments and do and cause to be done
such further acts and things, including the filing of such
assignments, agreements, documents and instruments, as may be
necessary or as the other Party may reasonably request in
connection with this Agreement or to carry out more effectively the
provisions and purposes hereof or to better assure and confirm unto
such other Party its rights and remedies under this
Agreement.

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-50-

 

 

14.18            

Counterparts. This Agreement may be
executed in two or more counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the
same instrument.

 

IN WITNESS WHEREOF, the Parties intending to be bound have
caused this License Agreement to be executed by their duly
authorized representatives.

 

	
	
 EverInsight
Therapeutics Inc.       

	
 

	
VistaGen
Therapeutics, Inc. 

	
	
  

	
 

	
 

	By:	
/s/ Wei
Fu  

	
By:

	
/s/ Shawn K.
Singh

	
Name:

	
Wei
Fu 

	
Name:

	
Shawn K. Singh,
J.D.

	
Title:

	
Director of
EverInsight Therapeutics Inc. 

	
Title

	
Chief Executive
Officer

 

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-51-

 

 LIST
OF EXHIBITS

 

Exhibit
A:           

Licensed Patents
Existing as of the Effective Date

 

Exhibit
B:         

Licensed
Trademarks

 

Exhibit
C:         

PH94B Chemical
Structure

 

Exhibit
D:           

Initial Development
Plan

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-52-

 

 

Exhibit
A: Licensed Patents in the
Territory as of the Effective Date

 

 

[*****]

 

 

 

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-53-

 

 

Exhibit
B: Licensed Trademarks as
of the Effective Date

 

 

VISTAGEN®,
United States Registration # 2787886 and international counterparts
in the Territory to be obtained in due course

 

 

 

 

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-54-

 

 

 

Exhibit
C: PH94B Chemical
Structure

 

 

 

(3b)-androsta-4,16-dien-3-ol

     

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-55-

 

 

Exhibit
D

Initial
Development Plan for Acute Treatment of SAD in the
Territory

 

[*****]

 

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY [*****], HAS BEEN OMITTED BECAUSE VISTAGEN THERAPEUTICS, INC.
HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD
LIKELY CAUSE COMPETITIVE HARM TO VISTAGEN THERAPEUTICS,
INC. IF PUBLICLY DISCLOSED.

 

 

-56-EXHIBIT 4.1

 

 

 

SALE AND SERVICING AGREEMENT

 

among

 

WORLD OMNI AUTO RECEIVABLES TRUST 2020-C

Issuing Entity,

 

WORLD OMNI AUTO RECEIVABLES LLC,

Depositor,

 

and

 

WORLD OMNI FINANCIAL CORP.,

Servicer

 

Series 2020-C

 

Dated as of August 19, 2020

 

 

 

    

     

    

 

	TABLE OF CONTENTS	 

 

	 	 	Page
	 	 	 
	ARTICLE I DEFINITIONS	4
	Section 1.01	Definitions	4
	 	 	 
	ARTICLE II CONVEYANCE OF RECEIVABLES	5
	Section 2.01	Conveyance of Receivables	5
	Section 2.02	Intention of Parties	5
	 	 	 
	ARTICLE III THE RECEIVABLES	6
	Section 3.01	Representations and Warranties of World Omni with Respect to each Receivable and the Pool of Receivables	6
	Section 3.02	Repurchase upon Breach; Dispute Resolution	9
	Section 3.03	Custody of Receivable Files	13
	Section 3.04	Duties of Servicer as Custodian	14
	Section 3.05	Instructions; Authority To Act	15
	Section 3.06	Custodian’s Indemnification	15
	Section 3.07	Effective Period and Termination	15
	 	 	 
	ARTICLE IV ADMINISTRATION AND SERVICING OF RECEIVABLES	16
	Section 4.01	Duties of Servicer	16
	Section 4.02	Collection and Allocation of Receivable Payments	16
	Section 4.03	Realization upon Receivables	17
	Section 4.04	Physical Damage Insurance	17
	Section 4.05	Maintenance of Security Interests in Financed Vehicles	17
	Section 4.06	Covenants of Servicer	17
	Section 4.07	Purchase of Receivables Upon Breach or Extension Beyond Final Scheduled Payment Date	18
	Section 4.08	Servicing Fee	18
	Section 4.09	Servicer’s Certificate	18
	Section 4.10	Annual Statement as to Compliance; Item 1122 Servicing Criteria Assessment; Notice of Default	19
	Section 4.11	Annual Independent Certified Public Accountants’ Report	19
	Section 4.12	Access to Certain Documentation and Information Regarding Receivables	20
	Section 4.13	Servicer Expenses	20
	Section 4.14	Appointment of Subservicer	20
	Section 4.15	Communications Between Noteholders	20
	Section 4.16	Exchange Act Certifications	20
	 	 	 
	ARTICLE V TRUST ACCOUNTS; DISTRIBUTIONS; STATEMENTS TO CERTIFICATEHOLDERS AND NOTEHOLDERS	21
	Section 5.01	Establishment of Trust Accounts	21
	Section 5.02	Collections	24
	Section 5.03	Application of Collections	24

 

    i

     

    

 

	Section 5.04	[Reserved]	24
	Section 5.05	Additional Deposits	24
	Section 5.06	Distributions	25
	Section 5.07	Reserve Account	27
	Section 5.08	Statements to Noteholders and Certificateholders	27
	Section 5.09	Net Deposits	29
	Section 5.10	Transfer of Certificates	29
	 	 	 
	ARTICLE VI THE DEPOSITOR	29
	Section 6.01	Representations of Depositor	29
	Section 6.02	Limited Liability Company Existence	31
	Section 6.03	Liability of Depositor; Indemnities	31
	Section 6.04	Merger or Consolidation of, or Assumption of Obligations of Depositor	33
	Section 6.05	Limitation on Liability of Depositor and Others	33
	Section 6.06	Depositor May Own Notes	34
	Section 6.07	Security Interest	34
	 	 	 
	ARTICLE VII THE SERVICER	34
	Section 7.01	Representations of Servicer	34
	Section 7.02	Indemnities of Servicer	35
	Section 7.03	Merger or Consolidation of, or Assumption of Obligations of, Servicer	36
	Section 7.04	Limitation on Liability of Servicer and Others	37
	Section 7.05	World Omni Not To Resign as Servicer	37
	 	 	 
	ARTICLE VIII DEFAULT	37
	Section 8.01	Servicer Default	37
	Section 8.02	Appointment of Successor	39
	Section 8.03	Notification to Noteholders and Certificateholders	39
	Section 8.04	Waiver of Past Defaults	40
	Section 8.05	Payment of Servicing Fees	40
	 	 	 
	ARTICLE IX TERMINATION	40
	Section 9.01	Optional Purchase of All Receivables	40
	 	 	 
	ARTICLE X MISCELLANEOUS	41
	Section 10.01	Amendment	41
	Section 10.02	Protection of Title to Trust	42
	Section 10.03	Notices	44
	Section 10.04	Assignment by the Depositor or the Servicer	44
	Section 10.05	Limitations on Rights of Others	44
	Section 10.06	Severability	44
	Section 10.07	Separate Counterparts; Electronic Signatures	44
	Section 10.08	Headings	45
	Section 10.09	Governing Law	45
	Section 10.10	Assignment by Issuing Entity	45

 

    ii

     

    

 

	Section 10.11	Nonpetition Covenants	45
	Section 10.12	Limitation of Liability of Owner Trustee and Indenture Trustee	46
	Section 10.13	Regulation AB	46
	Section 10.14	Notices to the Rating Agencies	46

 

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

 

    iii

     

    

 

SALE AND SERVICING AGREEMENT

 

This SALE AND SERVICING
AGREEMENT is dated as of August 19, 2020, among WORLD OMNI AUTO RECEIVABLES TRUST 2020-C, a Delaware statutory trust (the
“Issuing Entity”), WORLD OMNI AUTO RECEIVABLES LLC, a Delaware limited liability company (the “Depositor”),
as depositor, and WORLD OMNI FINANCIAL CORP., a Florida corporation (“World Omni” or the “Servicer”).

 

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

 

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

 

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

 

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

 

ARTICLE I

DEFINITIONS

 

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

 

    

     

    

 

 

ARTICLE II

CONVEYANCE OF RECEIVABLES

 

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

 

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

 

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

 

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

 

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

 

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

 

(f)             the
Receivables Purchase Agreement;

 

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

 

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

 

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

 

    5

     

    

 

ARTICLE III

THE RECEIVABLES 

 

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

 

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

 

(i)            Characteristics
of Receivables. Each Receivable (1) (A) was originated in the United States of America by a Dealer for the retail
sale of a Financed Vehicle in the ordinary course of such Dealer’s business, was fully and properly executed or electronically
authenticated by the parties thereto, and was purchased by World Omni from such Dealer under an existing dealer agreement, (B) was
originated by World Omni, or (C) was originated by an independent third party and acquired by World Omni, (2) contains
customary and enforceable provisions such that the rights and remedies of the holder thereof are adequate for realization against
the collateral of the benefits of the security, and (3) provides for level monthly payments after the Cutoff Date (provided,
that the payment in the first or last month in the life of the Receivable may vary from the level monthly payments) that fully
amortize the Amount Financed by maturity and yield interest at the Annual Percentage Rate.

 

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

 

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

 

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

 

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

 

    6

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    7

     

    

 

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

 

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

 

(xvi)        Maturity
of Receivables. Each Receivable has a scheduled maturity date not later than October 19, 2026.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    8

     

    

 

(ii)           Title.
Immediately prior to the transfer and assignment contemplated in the Receivables Purchase Agreement, World Omni had good and marketable
title to the Receivables free and clear of all Liens, encumbrances, security interests and rights of others and, immediately upon
the transfer thereof, the Depositor shall have good and marketable title to the Receivables, free and clear of all Liens, encumbrances,
security interests and rights of others; and the transfer has been perfected under the UCC (to the extent a security interest
in such property may be perfected by filing under the applicable UCC) except, in each case, for liens and encumbrances that will
be released concurrent with the transfer of Receivables pursuant to the Receivables Purchase Agreement. Immediately prior to the
transfer and assignment herein contemplated, the Depositor had good and marketable title to the property conveyed to the Issuing
Entity pursuant to Section 2.01 or 2.02 of this Agreement, as applicable, free and clear of all Liens, encumbrances,
security interests and rights of others and, immediately upon the transfer thereof, the Issuing Entity shall have good and marketable
title to the Receivables, free and clear of all Liens, encumbrances, security interests and rights of others; and the transfer
has been perfected under the UCC (to the extent a security interest in such property may be perfected by filing under the applicable
UCC).

 

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

 

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

 

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

 

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

 

Section 3.02           Repurchase
upon Breach; Dispute Resolution.

 

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

 

    9

     

    

 

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

 

(c)            Dispute
Resolution.

 

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

 

    10

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    11

     

    

 

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

 

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

 

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

 

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

 

    12

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    13

     

    

 

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

 

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

 

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

 

Section 3.04           Duties
of Servicer as Custodian.

 

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

 

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

 

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

 

    14

     

    

  

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

 

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

 

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

 

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

 

    15

     

    

 

ARTICLE IV

ADMINISTRATION AND SERVICING OF RECEIVABLES

 

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

 

Section 4.02           Collection
and Allocation of Receivable Payments. The Servicer shall make reasonable efforts to collect all payments called for
under the terms and provisions of the Receivables as and when the same shall become due and shall follow such collection procedures
as it follows with respect to all comparable automotive receivables that it services for itself or others. The Servicer shall
allocate collections as set forth in Section 5.03. The Servicer may grant extensions, rebates or adjustments on a
Receivable, which shall not, for the purposes of this Agreement, modify the day of the month on which payment is due (except in
connection with a limited number of accommodations for Obligors of occasional requests in accordance with the Servicer’s
customary servicing procedures) or change the method under which scheduled payments of interest are computed on such Receivable;
provided, however, that if the Servicer extends the date for final payment by the Obligor of any Receivable beyond
the month immediately preceding the month in which the Final Scheduled Payment Date for the Class C Notes occurs, the Servicer
shall purchase any such Receivable as of the earlier of (a) the last day of the second Collection Period following the date
of such extension (or, at the Servicer’s election, the last day of the first following Collection Period) and (b) the
last day of the month immediately preceding the month in which the Final Scheduled Payment Date for the Class C Notes occurs,
in each case in accordance with the terms of Section 4.07(b). The Servicer shall not retain any fees in connection
with any extension of a Receivable but shall instead deposit such fees into the Collection Account within two Business Days of
receipt (including receipt of proper instructions regarding where to allocate such payment) unless the Servicer is making deposits
on a monthly basis as permitted under Section 5.02. The Servicer may in its discretion waive any late payment charge
or any other fees that may be collected in the ordinary course of servicing a Receivable. The Servicer shall not agree to any
alteration of the interest rate or the originally scheduled payments on any Receivable, other than as provided herein or as required
by law.

 

    16

     

    

 

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

 

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

 

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

 

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

 

    17

     

    

 

Section 4.07           Purchase
of Receivables Upon Breach or Extension Beyond Final Scheduled Payment Date.

 

(a)            The
Servicer or the Trust shall inform the other party and the Indenture Trustee and the Depositor promptly, in writing, upon the
discovery of any breach pursuant to Section 4.02, 4.05, 4.06 or 7.01. Unless the breach shall
have been cured by the last day of the second Collection Period following such discovery or written notice (or, at the Servicer’s
election, the last day of the first following Collection Period), the Servicer shall purchase any Receivable materially and adversely
affected by such breach as of such last day.

 

(b)            In
consideration of the purchase of any Receivable pursuant to Section 4.02 or Section 4.07(a), the Servicer
shall remit the Purchase Amount in the manner specified in Section 5.05, and the Servicer shall deliver a revised
Schedule of Receivables to the Depositor and the Trust, which shall reflect the repurchase of such Receivables. Subject to Section 7.02,
the sole remedy of the Issuing Entity, the Owner Trustee, the Indenture Trustee, the Certificateholders or the Noteholders with
respect to a breach pursuant to Section 4.02, 4.05, 4.06 or 7.01 or the extension of a Receivable
beyond the month immediately preceding the month in which the Final Scheduled Payment Date for the Class C Notes occurs under
Section 4.02 shall be to require the Servicer to purchase such Receivables. None of the Servicer, the Issuing Entity,
the Owner Trustee, the Indenture Trustee, the Asset Representations Reviewer, the Seller, the Depositor or the Administrator will
have an obligation to investigate whether a breach, extension or other event has occurred that would require the purchase of any
Receivable under Section 4.02 or Section 4.07(a) or whether any Receivable is required to be purchased
under Section 4.02 or Section 4.07(a).

 

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

 

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

 

    18

     

    

 

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

 

(a)            To
the extent required by Regulation AB, the Servicer shall deliver (and shall cause each of its Reporting Subcontractors, if any,
to deliver) to the Owner Trustee and the Indenture Trustee on or before the date that is 90 days after the end of each calendar
year, commencing with the calendar year ended December 31, 2020, an Officer’s Certificate as required under Item 1123
of Regulation AB, dated as of December 31 of the preceding year, stating that (i) a review of the activities of the
Servicer during the preceding calendar year (or such shorter period as shall have elapsed since the Closing Date) and of its performance
under this Agreement has been made under such officer’s supervision and (ii) to the best of such officer’s knowledge,
based on such review, the Servicer has fulfilled all its obligations under this Agreement in all material respects throughout
such reporting period, or, if there has been a failure to fulfill any such obligation in any material respect, specifying each
such failure known to such officer and the nature and status thereof. The Servicer shall send a copy of such certificate and the
report referred to in Section 4.11 to the Rating Agencies. A copy of such certificate and the report referred to in
Section 4.11 may be obtained by any Certificateholder or Noteholder by a request in writing to the Indenture Trustee
addressed to the Corporate Trust Office. Upon the request of the Owner Trustee, the Indenture Trustee will promptly furnish the
Owner Trustee a list of Noteholders as of the date specified by the Owner Trustee.

 

(b)            The
Servicer shall deliver to the Owner Trustee and the Indenture Trustee, on or before the date that is 90 days after the end of
each calendar year, commencing with the calendar year ended December 31, 2020, a report, dated as of December 31 (or
other applicable date) of the preceding year, regarding the Servicer’s assessment of compliance with the Servicing Criteria
during the immediately preceding calendar year, including disclosure of any material instance of non-compliance identified by
the Servicer, as described in Rule 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB. Deliveries pursuant
to this Section 4.10(b) may be delivered by electronic mail.

 

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

 

Section 4.11           Annual
Independent Certified Public Accountants’ Report. The Servicer shall cause a firm of independent certified public
accountants, who may also render other services to the Servicer or to its Affiliates, to deliver to the Servicer (who shall promptly
provide the assessment described in this Section 4.11 to the Rating Agencies), the Indenture Trustee and the Owner
Trustee and, on or before the date that is 90 days after the end of the Servicer’s fiscal year, commencing with the fiscal
year ended December 31, 2020, a report, dated as of December 31 of the preceding fiscal year, addressed to the board
of directors of the Servicer, providing its assessment of compliance with the Servicing Criteria during the preceding fiscal year,
including disclosure of any material instance of non-compliance, as described in Rule 13a-18 or Rule 15d-18 under the
Exchange Act and Item 1122(b) of Regulation AB. Such attestation shall be in accordance with Rule 1-02(a)(3) and
2-02(g) of Regulation S-X under the Securities Act and the Exchange Act. Deliveries pursuant to this Section 4.11
may be delivered by electronic mail.

 

    19

     

    

 

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

 

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

 

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

 

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

 

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

 

    20

     

    

 

ARTICLE V

TRUST ACCOUNTS; DISTRIBUTIONS; STATEMENTS TO CERTIFICATEHOLDERS AND NOTEHOLDERS

 

Section 5.01           Establishment
of Trust Accounts.

 

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

 

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

 

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

 

(b)            Funds
on deposit in the Collection Account, the Note Distribution Account and the Reserve Account (collectively the “Trust
Accounts”) shall be invested by the Indenture Trustee in Eligible Investments, selected by the Servicer; provided,
that, funds on deposit in the Reserve Account shall be invested only in Eligible Investments meeting the requirements of
§246.4(b)(2) of Regulation RR, as determined solely by the Servicer. In the absence of written direction from the Servicer,
such funds shall be invested, in accordance with Section 8.04 of the Indenture, in Eligible Investments specified in clause
(i) of the definition thereof; provided, that, in the absence of such direction, funds on deposit in the Reserve
Account shall be invested in accordance with the most recent written direction received from the Servicer for such account. All
such Eligible Investments shall be held by the Indenture Trustee for the benefit of the Noteholders, the Certificateholders and
the Issuing Entity, as applicable; provided, that on each Payment Determination Date all interest and other Investment
Earnings on funds on deposit in the Trust Accounts shall be deposited into the Collection Account and shall be deemed to constitute
a portion of Available Funds for the related Payment Date. Other than as permitted by the Rating Agencies, funds on deposit in
the Collection Account, the Reserve Account and the Note Distribution Account shall be invested in Eligible Investments that will
mature (A) not later than the Business Day immediately preceding the next Payment Date or (B) on or before 10:00 a.m. on
such next Payment Date if such investment is held in the corporate trust department of the institution with which the Collection
Account, the Reserve Account and the Note Distribution Account, as applicable, is then maintained and is invested either (i) in
a time deposit of the Indenture Trustee rated at least A-1 by S&P Global Ratings and F1 or A by Fitch (such account being
maintained within the corporate trust department of the Indenture Trustee), (ii) in the Indenture Trustee’s common
trust fund so long as such fund is rated in the highest applicable rating category by S&P Global Ratings and Fitch or (iii) in
Eligible Investments specified in clauses (g) or (i) of the definition thereof; and provided that Eligible
Investments shall be available for redemption and use by the Indenture Trustee on the relevant Payment Date. In no event shall
the Indenture Trustee be held liable for investment losses in Eligible Investments pursuant to this Section 5.01,
except in its capacity as obligor thereunder. Except as otherwise provided hereunder or agreed in writing among the parties hereto,
the Servicer shall retain the authority to institute, participate and join in any plan of reorganization, readjustment, merger
or consolidation with respect to the issuer of any Eligible Investments held hereunder, and, in general, to exercise each and
every other power or right with respect to each such asset or investment as individuals generally have and enjoy with respect
to their own assets and investment, including power to vote upon any securities.

 

    21

     

    

 

(c)            (i)           The
Indenture Trustee shall possess all right, title and interest in all funds on deposit from time to time in the Trust Accounts
and in all proceeds thereof (including all income thereon) and all such funds, investments, proceeds and income shall be part
of the Trust Estate. The Trust Accounts (other than the Reserve Account) shall be under the sole dominion and control of the Indenture
Trustee for the benefit of the Noteholders and the Certificateholders, as the case may be. The Reserve Account shall be under
the sole dominion and control of the Indenture Trustee in the name of and for the benefit of the Issuing Entity which such Reserve
Account has been pledged by the Issuing Entity to the Indenture Trustee for the benefit of the Noteholders. All of the Depositor’s
right, title and interest to the Reserve Account has been conveyed by the Depositor to the Issuing Entity pursuant to Section 2.01(e) hereof,
including, all funds on deposit from time to time, and all investments, proceeds and income thereof. The Depositor hereby grants
to the Indenture Trustee on the Closing Date, as Indenture Trustee for the benefit of the Noteholders, all of the Depositor’s
right, title and interest in, to and under, whether now owned or existing or hereafter acquired or arising, the Reserve Account
and all proceeds thereof. If, at any time, any of the Trust Accounts ceases to be an Eligible Deposit Account, the Indenture Trustee
(or the Servicer on its behalf) shall within 10 Business Days (or such longer period, not to exceed 30 calendar days, as to which
each Rating Agency may consent) establish a new Trust Account as an Eligible Deposit Account and shall transfer any cash and/or
any investments to such new Trust Account. The Indenture Trustee or the other Person holding the Trust Accounts as provided in
this Section 5.01(c)(i) shall be the “Securities Intermediary.” If the Securities Intermediary
shall be a Person other than the Indenture Trustee, the Servicer shall obtain the express agreement of such Person to the obligations
of the Securities Intermediary set forth in this Section 5.01.

 

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

 

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

 

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

 

    22

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    23

     

    

 

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

 

Section 5.02          Collections.
The Servicer shall remit to the Collection Account (and post such amounts to its records) within two Business Days of receipt
and identification of payment (including receipt of proper instructions regarding where to allocate such payment) all payments
by or on behalf of the Obligors with respect to the Receivables (other than Purchased Receivables) and all Recoveries, both as
collected during the Collection Period. Notwithstanding the foregoing, for so long as the Monthly Remittance Condition is satisfied,
the Servicer shall not be required to remit such collections on a daily basis, but may retain such collections without segregation
and remit such collections with respect to the preceding calendar month to the Collection Account on the Payment Determination
Date immediately preceding the related Payment Date. In the event that the Servicer is remitting collections on a monthly basis
and the Monthly Remittance Condition shall no longer be satisfied, within 14 Business Days after such event (the Servicer shall
be permitted to continue monthly remittances during such 14-Business Day period), the Servicer shall resume remitting such collections
to the Collection Account within two Business Days after receipt and identification of payment (including proper instructions
regarding where to allocate such payment), unless the Servicer shall satisfy the Rating Agency Condition with respect to continuing
monthly remittances. For purposes of this Article V the phrase “payments by or on behalf of Obligors” shall mean
payments made with respect to the Receivables by Persons other than the Servicer or the Depositor.

 

Section 5.03           Application
of Collections

 

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

 

Section 5.04           [Reserved].

 

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

 

    24

     

    

 

 

Section 5.06         Distributions. 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(F)            to
the Note Distribution Account, the Class C Noteholders’ Interest Distributable Amount;

 

(G)            to
the Note Distribution Account, the Noteholders’ Third Priority Principal Distributable Amount;

 

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

 

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

 

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

 

    25

     

    

 

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

 

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

 

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

 

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

 

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

 

(C)            to
the Holders of the Class A-1 Notes, the aggregate Outstanding Amount of such Notes, and then to the Holders of the Class A-2
Notes, the Class A-3 Notes and the Class A-4 Notes, pro rata, the aggregate Outstanding Amount of such Notes;

 

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

 

(E)            to
the Holders of the Class B Notes, the aggregate Outstanding Amount of the Class B Notes;

 

(F)            to
the Holders of the Class C Notes, the accrued and unpaid interest on the Class C Notes;

 

(G)            to
the Holders of the Class C Notes, the aggregate Outstanding Amount of the Class C Notes; and

 

(H)            to
the Certificateholders, any remaining amounts.

 

    26

     

    

 

Section 5.07         Reserve
Account.

 

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

 

(b)         If
the amount on deposit in the Reserve Account on any Payment Date (after giving effect to all deposits thereto or withdrawals therefrom
on such Payment Date) is greater than the Required Reserve Amount for such Payment Date, the Servicer, based on the information
contained in the Servicer’s Certificate delivered on the related Payment Determination Date pursuant to Section 4.09
hereof, shall instruct the Indenture Trustee in writing to withdraw such amount from the Reserve Account and apply it as Available
Funds for such Payment Date; provided that, amounts withdrawn from the Reserve Account shall only be used in the manner
permitted under §246.4(b)(3) of Regulation RR, as determined solely by the Servicer.

 

(c)          In
the event that the Total Available Funds for a Payment Date are not sufficient to make the full amount of the payments and deposits
required pursuant to Sections 5.06(ii)(A), (B), (C), (D), (E), (F) and (G) on
such Payment Date, the Servicer, based on the information contained in the Servicer’s Certificate delivered on the related
Payment Determination Date pursuant to Section 4.09 hereof, shall instruct the Indenture Trustee to withdraw from
the Reserve Account on such Payment Date an amount equal to such shortfall, to the extent of funds available therein, and pay
or deposit such amount according to the priorities set forth in Section 5.06(ii). In addition, amounts will be withdrawn
from the Reserve Account as provided in Section 8.02(c) and (d) of the Indenture. Amounts withdrawn
from the Reserve Account shall only be used in the manner permitted under §246.4(b)(3) of Regulation RR, as determined
solely by the Servicer.

 

(d)          Subject
to Section 9.01, amounts will continue to be applied pursuant to Section 5.06 following payment in full
of the Outstanding Amount of the Notes until the Pool Balance is reduced to zero. Following the payment in full of the aggregate
Outstanding Amount of the Notes and of all other amounts owing or to be distributed hereunder or under the Indenture or the Trust
Agreement to Noteholders, and the final distribution to the Certificateholders, in accordance with the instructions of the Servicer
(based on the information contained in the Servicer’s Certificate delivered on the related Payment Determination Date pursuant
to Section 4.09 hereof), the Indenture Trustee shall distribute any remaining funds in the Reserve Account to the
Depositor.

 

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

 

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

 

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

 

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

 

    27

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

(j)           the
Class C Noteholders’ Interest Carryover Shortfall;

 

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

 

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

 

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

 

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

 

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

 

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

 

(q)          the
Noteholders’ Third Priority Principal Distributable Amount;

 

(r)           the
Noteholders’ Principal Distributable Amount;

 

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

 

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

 

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

 

    28

     

    

 

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

 

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

 

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

 

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

 

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

 

Each amount set forth on the Servicer’s
Certificate under clauses (a), (b), (h), (i), (j), (o), (p), (q) and
(r) above shall be expressed as a dollar amount per $1,000 of original principal amount of a Note. Deliveries pursuant
to this Section 5.08 may be delivered by electronic mail.

 

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

 

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

 

ARTICLE VI

THE DEPOSITOR

 

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

 

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

 

    29

     

    

 

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

 

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

 

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

 

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

 

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

 

    30

     

    

 

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

 

Section 6.02         Limited
Liability Company Existence.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    31

     

    

 

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

 

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

 

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

 

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

 

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

 

    32

     

    

 

Section 6.04         Merger
or Consolidation of, or Assumption of Obligations of Depositor. Any Person (a) into which the Depositor may be
merged or consolidated, (b) which may result from any merger or consolidation to which the Depositor shall be a party or
(c) which may succeed to the properties and assets of the Depositor substantially as a whole, which Person in any of the
foregoing cases executes an agreement of assumption to perform every obligation of the Depositor under this Agreement, shall be
the successor to the Depositor hereunder without the execution or filing of any document or any further act by any of the parties
to this Agreement; provided, however, that (i) immediately after giving effect to such transaction, no representation
or warranty made pursuant to Section 3.01(a) or (b) shall have been breached and no Servicer Default
in respect of the Depositor under Section 8.01(b) or (c) shall have occurred and be continuing, and
no event that, after notice or lapse of time, or both, would become a Servicer Default in respect of the Depositor under Section 8.01(b) or
(c) shall have occurred and be continuing, (ii) the Depositor shall have delivered to the Owner Trustee and the
Indenture Trustee an Officers’ Certificate stating that such consolidation, merger or succession and such agreement of assumption
comply with this Section and that all conditions precedent, if any, provided for in this Agreement relating to such transaction
have been complied with, (iii) the Rating Agency Condition shall have been satisfied with respect to such transaction and
(iv) the Depositor shall have delivered to the Owner Trustee and the Indenture Trustee an Opinion of Counsel either (A) stating
that, in the opinion of such counsel, all financing statements and continuation statements and amendments thereto have been filed
that are necessary fully to preserve and protect the interest of the Owner Trustee and Indenture Trustee, respectively, in the
Receivables and reciting the details of such filings, or (B) stating that, in the opinion of such counsel, no such action
shall be necessary to preserve and protect such interests. Notwithstanding anything herein to the contrary, (a) the execution
of the foregoing agreement of assumption and compliance with clauses (i), (ii), (iii) and (iv) above
shall be conditions to the consummation of the transactions referred to in clause (a), (b) or (c) above
and (b) the Depositor may transfer its rights under this Agreement in accordance with Section 10.04 hereof.

 

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

 

    33

     

    

 

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

 

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

 

ARTICLE VII

THE SERVICER

 

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

 

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

 

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

 

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

 

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

 

    34

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

    35

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

    36

     

    

 

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

 

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

 

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

 

ARTICLE VIII

DEFAULT

 

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

 

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

 

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

 

    37

     

    

 

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

 

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

 

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

 

    38

     

    

 

Section 8.02         Appointment
of Successor.

 

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

 

(b)          Upon
appointment, the successor Servicer (including the Indenture Trustee acting as successor Servicer) shall be the successor in all
respects to the predecessor Servicer and shall be subject to all the responsibilities, duties and liabilities arising thereafter
relating thereto placed on the predecessor Servicer and shall be entitled to the Servicing Fee and all the rights granted to the
predecessor Servicer by the terms and provisions of this Agreement. The successor Servicer shall not be liable for any actions
or inactions of the predecessor Servicer. Notwithstanding anything to the contrary contained herein or in the Basic Documents,
if the Indenture Trustee shall act as Successor Servicer, it shall not, in any event have obligations (i) with respect to
the repurchase of the Receivables, (ii) to pay any fees, expenses and other amounts owing to the Administrator, or (iii) to
pay any indemnities owed by the Servicer to another party under the Basic Documents (other than those resulting from the actions
or inactions of the Indenture Trustee as successor Servicer).

 

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

 

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

 

    39

     

    

 

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

 

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

 

ARTICLE IX

TERMINATION

 

Section 9.01         Optional
Purchase of All Receivables.

 

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

 

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

 

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

 

    40

     

    

 

ARTICLE X

MISCELLANEOUS

 

Section 10.01       Amendment.

 

(a)          This
Agreement may be amended by the Depositor, the Servicer and the Issuing Entity, with the consent of the Indenture Trustee, but
without the consent of any of the Noteholders or the Certificateholders, to cure any ambiguity or to correct or supplement any
provisions in this Agreement (including to further prevent or help avoid the application to the Notes or Certificates of the Treasury
Regulations (or other interpretive guidance) issued under Section 385 of the Code) or for the purpose of adding any provisions
to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of
the Noteholders or the Certificateholders; provided that such amendments require: (i) satisfaction of the Rating Agency
Condition or (ii) an Officer’s Certificate of the Servicer delivered to the Issuing Entity, the Owner Trustee and the
Indenture Trustee stating that the amendment will not materially and adversely affect the interest of any Noteholder or Certificateholder.

 

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

 

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

 

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

 

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

 

    41

     

    

 

Section 10.02       Protection
of Title to Trust.

 

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

 

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

 

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

 

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

 

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

 

    42

     

    

 

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

 

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

 

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

 

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

 

(B)            on
or before March 31, in each calendar year, beginning in 2021, an Opinion of Counsel, dated as of a date during such 90-day
period, stating that, in the opinion of such counsel, either (1) all financing statements and continuation statements have
been filed that are necessary fully to preserve and protect the interest of the Trust and the Indenture Trustee in the Receivables,
and reciting the details of such filings or referring to prior Opinions of Counsel in which such details are given, or (2) no
such action shall be necessary to preserve and protect such interest other than any action necessary (as of the date of such opinion)
to be taken in the following year to preserve and protect such interest.

 

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

 

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

 

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

 

 

    43

     

    

 

Section 10.03       Notices.
All demands, deliveries, notices, communications and instructions upon or to the Depositor, the Servicer, the Owner Trustee, the
Indenture Trustee or the Rating Agencies under this Agreement shall be by facsimile, in writing, personally delivered or mailed
by certified mail, return receipt requested, and shall be deemed to have been duly given upon receipt or by electronic mail (if
designated by such party to the other parties) (a) in the case of the Depositor, to World Omni Auto Receivables LLC, 190
Jim Moran Boulevard, Deerfield Beach, Florida 33442, Telecopy: (954) 429-2685, Attention: Treasurer, (b) in the case of the
Servicer, World Omni Financial Corp., 190 Jim Moran Boulevard, Deerfield Beach, Florida 33442, Telecopy: (954) 429-2685, Attention:
Treasurer, (c) in the case of the Issuing Entity or the Owner Trustee, at its Corporate Trust Office, Telecopy: (866) 807-8670,
Email: christopher.nuxoll@usbank.com, (d) in the case of the Indenture Trustee, at its Corporate Trust Office, Telecopy:
(646) 452-2001, Email: CTNY1@unionbank.com, and (e) in the case of the Rating Agencies, to the Depositor who promptly shall
post such notice to the website maintained by the Depositor for notifications to nationally recognized statistical rating organizations;
or, as to each of the foregoing, at such other address or electronic mail address as shall be designated by written notice to
the other parties; provided, that, so long as World Omni is the Servicer, the Servicer’s obligation to deliver
or provide any demand, delivery, notice, communication or instruction (including the Servicer’s Certificate) to any Person
other than a Noteholder shall be satisfied by the Servicer making such demand, delivery, notice, communication or instruction
available at https://via.intralinks.com/, or such other website or distribution service or provider as the Servicer shall designate
by written notice to the other parties.

 

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

 

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

 

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

 

Section 10.07       Separate
Counterparts; Electronic Signatures. This Agreement may be executed by the parties hereto in separate counterparts,
each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one
and the same instrument. Each of the parties agree that this Agreement and any other documents to be delivered in connection herewith
may be electronically signed, that any digital or electronic signatures (including pdf, facsimile or electronically imaged signatures
provided by DocuSign or any other digital signature provider) appearing on this Agreement or such other documents are the same
as handwritten signatures for the purposes of validity, enforceability and admissibility, and that delivery of any such electronic
signature to, or a signed copy of, this Agreement and such other documents may be made by facsimile, email or other electronic
transmission.

 

    44

     

    

 

 

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

 

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

 

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

 

Section
10.11    Nonpetition Covenants.

 

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

 

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

 

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

 

    45

     

    

 

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

 

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

 

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

 

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

 

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

 

    46

     

    

 

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

 

	 	WORLD OMNI AUTO RECEIVABLES TRUST 2020-C
	 	 
	 	By: U.S. BANK TRUST NATIONAL
    ASSOCIATION, not in its individual capacity but solely as Owner Trustee
	 	 
	 	By:  	                                    
	 	Name:
	 	Title:
	 	 
	 	WORLD OMNI AUTO RECEIVABLES
    LLC, as Depositor
	 	 
	 	By:  	 
	 	Name:
	 	Title:
	 	 
	 	WORLD OMNI FINANCIAL CORP., as Servicer, and, with respect to Sections 3.01 and 3.02, individually
	 	 
	 	By:  	 
	 	Name:
	 	Title:

 

     

     

    

 

	Acknowledged and agreed to
    as of the day and year first above written:	 
	 	 
	MUFG UNION BANK, N.A.,	 
	not in its individual capacity but
    solely as Indenture Trustee	 
	 	 
	By:  	                                     	 
	Name:	 
	Title:	 

 

    48

     

    

 

SCHEDULE A

 

Schedule of Receivables

 

Documents on file at:

 

Kirkland & Ellis LLP

300 North LaSalle Street

Chicago, Illinois 60654

 

    Sch. A

     

    

 

SCHEDULE B

 

Location of Receivable Files

 

World Omni Financial Corp.

6150 Omni Park Drive

Mobile, AL 36609

 

RecordMax LLC

2051 West I-65 Service Rd. N.

Mobile, AL 36618

 

HP Enterprise Services LLC

5400 Legacy Dr

Plano, TX 75024

 

RouteOne LLC

31500 Northwestern Hwy Ste 200

Farmington Hills, MI 48334

 

    Sch. B

     

    

 

EXHIBIT A

Form of Distribution Statement to Noteholders 

 

World Omni Financial Corp.

 

World Omni Auto Receivables Trust 2020-C Payment Date Statement
to Noteholders

 

Total Available Funds

 

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

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

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

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

	Class B Notes: 	($_______ per $1,000 original principal amount)

	Class C Notes: 	($_______ per $1,000 original principal amount)

 

Outstanding Amount

Class A-1 Notes

Class A-2 Notes

Class A-3 Notes

Class A-4 Notes

Class B Notes

Class C Notes

Note Pool Factor

Class A-1 Notes

Class A-2 Notes

Class A-3 Notes

Class A-4 Notes

Class B Notes

Class C Notes

Servicing Fee

Servicing Fee Per $1,000 Note

Reserve Account Balance

 

    Ex. A

     

    

 

EXHIBIT B

Form of Servicer’s Certificate

 

World Omni Financial Corp.

World Omni Auto Receivables Trust 2020-C Monthly Servicer’s Certificate

 

	World Omni Auto Receivables Trust 2020-C	 	 
	Monthly Servicer Certificate	 	 
	mm/dd/yyyy	 	 
	 	 	 
	Dates Covered	 	 
	Collections Period	 	 
	Interest Accrual Period	 	 
	30/360 Days	 	 
	Actual/360 Days	 	 
	Distribution Date	 	 
	 	 	 
	Collateral Pool Balance Data	$ Amount	# of Accounts
	Pool Balance at mm/dd/yy	 	 
	Yield Supplement Overcollateralization Amount at mm/dd/yy	 	 
	Receivables Balance at mm/dd/yy	 	 
	Principal Payments	 	 
	Defaulted Receivables	 	 
	Repurchased Accounts	 	 
	Yield Supplement Overcollateralization Amount at mm/dd/yy	 	 
	Pool Balance at mm/dd/yy	 	 
	 	 	 
	Pool Statistics	$ Amount	# of Accounts
	Pool Factor	 	 
	Prepayment ABS Speed	 	 
	Aggregate Starting Principal Balance	 	 
	Pre-Funding Contracts added mm/dd/yy	 	 
	 	 	 
	Delinquent Receivables:	 	 
	Past Due 31-60 days	 	 
	Past Due 61-90 days	 	 
	Past Due 91-120 days	 	 
	Past Due 121 + days	 	 
	Total     	 	 

 

    Ex. B-1

     

    

 

	Total 31+ Delinquent as % Ending Pool Balance	 	 
	Total 61+ Delinquent as % Ending Pool Balance	 	 
	Delinquency Trigger Occurred	 	[Yes/No]
	 	 	 
	Recoveries	 	 
	 	 	 
	Aggregate Net Losses/(Gains) - mm/yyyy	 	 
	
        Ratio of Net Loss to the Receivables Balance

        as of beginning of Collection period (Annualized)
	 	 
	Current Net Loss Ratio	 	 
	Prior Period Net Loss Ratio	 	 
	Second Prior Period Net Loss Ratio	 	 
	Third Prior Period Net Loss Ratio	 	 
	Four Month Average	 	 
	 	 	 
	Cumulative Net Loss as a % of Aggregate Starting Principal Balance	 	 
	 	 	 
	Overcollateralization Target Amount	 	 
	Actual Overcollateralization	 	 
	Weighted Average APR	 	 
	Weighted Average APR, Yield Adjusted	 	 
	Weighted Average Remaining Term 	 	 
	 	 	 
	Flow of Funds	$ Amount	 
	 	 	 
	Collections	 	 
	Investment Earnings on Cash Accounts	 	 
	Servicing Fee	 	 
	Transfer to Collection Account	 	 
	Available Funds	 	 
	 	 	 
	Distributions of Available Funds	 	 
	    (1) Asset Representation Reviewer Amounts (up to $150,000 per calendar year)	 	 
	    (2)  Class A Interest	 	 
	    (3)  Noteholders’ First Priority Principal Distributable Amount	 	 
	    (4)  Class B Interest	 	 
	    (5)  Noteholders’ Second Priority Principal Distributable Amount	 	 
	   (6)  Class C Interest	 	 
	   (7)  Noteholders’ Third Priority Principal Distributable Amount	 	 
	   (8)  Required Reserve Amount	 	 
	   (9)  Noteholders’ Principal Distributable Amount	 	 
	   (10)  Asset Representation Reviewer Amounts (in excess of 1)	 	 
	   (11)  Distribution to Certificateholders	 	 
	 	 	 
	Total Distributions of Available Funds	 	 

 

    Ex. B-2

     

    

 

	Servicing Fee	 	 
	Unpaid Servicing Fee	 	 
	Change in amount of Unpaid Servicing Fee from the prior period	 	 
	 	 	 
	Note Balances & Note Factors	$ Amount	 
	 	 	 
	Original Class A	 	 
	Original Class B	 	 
	Original Class C	 	 
	 	 	 
	Total Class A, B & C	 	 
	Note Balance @ mm/dd/yy 	 	 
	Principal Paid	 	 
	Note Balance @ mm/dd/yy	 	 
	 	 	 
	Class A-1	 	 
	Note Balance @ mm/dd/yy 	 	 
	Principal Paid	 	 
	Note Balance @ mm/dd/yy	 	 
	Note Factor @ mm/dd/yy	 	 
	 	 	 
	Class A-2	 	 
	Note Balance @ mm/dd/yy 	 	 
	Principal Paid	 	 
	Note Balance @ mm/dd/yy	 	 
	Note Factor @ mm/dd/yy	 	 
	 	 	 
	Class A-3	 	 
	Note Balance @ mm/dd/yy 	 	 
	Principal Paid	 	 
	Note Balance @ mm/dd/yy	 	 
	Note Factor @ mm/dd/yy	 	 

 

    Ex. B-3

     

    

 

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

 

    Ex. B-4

     

    

 

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

 

    Ex. B-5

     

    

 

	A-2 Interest Distribution Amount	 	 
	A-2 Interest Carryover Shortfall	 	 
	A-2 Principal Distribution Amount	 	 
	
        Total A-2 Distribution Amount

         
	 	 
	A-3 Interest Distribution Amount	 	 
	A-3 Interest Carryover Shortfall	 	 
	A-3 Principal Distribution Amount	 	 
	Total A-3 Distribution Amount	 	 
	 	 	 
	A-4 Interest Distribution Amount	 	 
	A-4 Interest Carryover Shortfall	 	 
	A-4 Principal Distribution Amount	 	 
	Total A-4 Distribution Amount	 	 
	 	 	 
	B Interest Distribution Amount	 	 
	B Interest Carryover Shortfall	 	 
	B Principal Distribution Amount	 	 
	Total B Distribution Amount	 	 
	 	 	 
	C Interest Distribution Amount	 	 
	C Interest Carryover Shortfall	 	 
	C Principal Distribution Amount	 	 
	Total C Distribution Amount	 	 
	 	 	 
	Noteholders’ First Priority Principal Distributable Amount	 	 
	
        Noteholders’ Second Priority Principal Distributable Amount

        Noteholders’ Third Priority Principal Distributable Amount
	 	 
	Noteholders’ Principal Distributable Amount	 	 
	 	 	 
	Account Balances	$ Amount	 
	 	 	 
	Reserve Account	 	 
	Balance as of mm/dd/yy	 	 
	Investment Earnings	 	 
	Investment Earnings paid	 	 
	Deposit (Withdrawal)	 	 
	Balance as of mm/dd/yy	 	 
	Change	 	 
	Required Reserve Amount	 	 

 

    Ex. B-6

     

    

 

EXHIBIT
C

Form of SSA Assignment

 

As of August 19, 2020,
for value received, in accordance with the Sale and Servicing Agreement, dated as of the date hereof (the “Sale and Servicing
Agreement”), among World Omni Auto Receivables LLC, a Delaware limited liability company (the “Depositor”),
World Omni Auto Receivables Trust 2020-C (the “Issuing Entity”) and World Omni Financial Corp., a Florida corporation
(the “Servicer”), as acknowledged and accepted by MUFG Union Bank, N.A., as Indenture Trustee, the Depositor
does hereby sell, assign, transfer and otherwise convey unto the Issuing Entity, without recourse, all right, title and
interest of the Depositor in, to and under (a) the Receivables identified on the Schedule of Receivables attached hereto having
an Aggregate Starting Principal Balance of $1,318,405,815.29 and all monies received thereon and in respect thereof after the Cutoff
Date; (b) the security interests in, and the liens on, the Financed Vehicles granted by Obligors in connection with the Receivables
and any other interest of the Depositor in such Financed Vehicles; (c) any proceeds with respect to the Receivables from claims
on any physical damage, credit life or disability insurance policies covering such Financed Vehicles or Obligors; (d) any Financed
Vehicle that shall have secured an Receivable and shall have been acquired by or on behalf of the Depositor, the Servicer or the
Trust; (e) all funds on deposit in, and “financial assets” (as such term is defined in the Uniform Commercial Code
as from time to time in effect) credited to, the Trust Accounts, including the Reserve Account, from time to time, including the
Reserve Account Initial Deposit, and in all investments and proceeds thereof (including all income thereon); (f) the Receivables
Purchase Agreement; (g) all “accounts,” “chattel paper,” “general intangibles” and “promissory
notes” (as such terms are defined in the Uniform Commercial Code as from time to time in effect) constituting or relating
to the foregoing; and (h) the proceeds of any and all of the foregoing; provided, however, that the foregoing
items (a) through (h) shall not include the Notes and Certificates.

 

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

 

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

 

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

 

* * * * *

 

    Ex. C-1

     

    

 

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

 

	 	WORLD OMNI AUTO RECEIVABLES LLC
	 	 
	 	By:  	                                       
	 	Name:
	 	Title:

 

    Ex. C-2

     

    

 

APPENDIX A

PART I - DEFINITIONS

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Applicable
Law” shall have the meaning assigned to such term in Section 6.02(m) of the Indenture.

 

    App. A-1

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

“Book-Entry
Notes” means, to the extent they are not Definitive Notes, a beneficial interest in the Class A-1 Notes, Class A-2 Notes,
Class A-3 Notes, Class A-4 Notes, Class B Notes and Class C Notes, ownership and transfers of which shall be made through book
entries by a Clearing Agency as described in Section 2.11 of the Indenture.

 

    App. A-2

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    App. A-3

     

    

 

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

 

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

 

		·	the related Interest Rate; and

 

		·	30 (or, in the case of the initial Payment Date, 26) divided by 360.

 

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

 

		·	the Outstanding Principal Balance of the Class A-1 Notes;

 

		·	the Class A-1 Interest Rate; and

 

		·	the actual number of days from and including the previous Payment Date (or, in the case of the
initial Payment Date, since the Closing Date) to but excluding the current Payment Date divided by 360.

 

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

 

“Class A-1
Final Scheduled Payment Date” means the August 2021 Payment Date.

 

“Class A-1
Interest Rate” means 0.20684% per annum computed on the basis of the actual number of days elapsed and on a 360 day year.

 

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

 

“Class A-1
Notes” means the Class A-1 0.20684% Asset-Backed Notes, substantially in the form of Exhibit A-1 to
the Indenture.

 

“Class A-2
Final Scheduled Payment Date” means the December 2023 Payment Date.

 

“Class A-2
Interest Rate” means 0.35% per annum computed on the basis of a 360 day year of twelve 30 day months.

 

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

 

“Class A-2
Notes” means the Class A-2 0.35% Asset-Backed Notes, substantially in the form of Exhibit A-2 to the Indenture.

 

“Class A-3
Final Scheduled Payment Date” means the November 2025 Payment Date.

 

“Class A-3
Interest Rate” means 0.48% per annum computed on the basis of a 360 day year of twelve 30 day months.

 

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

 

    App. A-4

     

    

 

“Class A-3
Notes” means the Class A-3 0.48% Asset-Backed Notes, substantially in the form of Exhibit A-3 to the
Indenture.

 

“Class A-4
Final Scheduled Payment Date” means the October 2026 Payment Date.

 

“Class A-4
Interest Rate” means 0.61% per annum computed on the basis of a 360 day year of twelve 30 day months.

 

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

 

“Class A-4
Notes” means the Class A-4 0.61% Asset-Backed Notes, substantially in the form of Exhibit A-4 to the
Indenture.

 

“Class B
Final Scheduled Payment Date” means the October 2026 Payment Date.

 

“Class B
Interest Rate” means 0.87% per annum computed on the basis of a 360 day year of twelve 30 day months.

 

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

 

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

 

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

 

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

 

		·	the Outstanding Principal Balance of the Class B Notes;

 

		·	the Class B Interest Rate; and

 

		·	30 (or, in the case of the initial Payment Date, 26) divided by 360.

 

    App. A-5

     

    

 

“Class B
Notes” means the Class B 0.87% Asset-Backed Notes substantially in the form of Exhibit B to the Indenture.

 

“Class C
Final Scheduled Payment Date” means the May 2027 Payment Date.

 

“Class C
Interest Rate” means 1.39% per annum computed on the basis of a 360 day year of twelve 30 day months.

 

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

 

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

 

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

 

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

 

		·	the Outstanding Principal Balance of the Class C Notes;

 

		·	the Class C Interest Rate; and

 

		·	30 (or, in the case of the initial Payment Date, 26) divided by 360.

 

“Class C
Notes” means the Class C 1.39% Asset-Backed Notes substantially in the form of Exhibit C to the Indenture.

 

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

 

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

 

    App. A-6

     

    

 

“Closing Date”
shall mean August 19, 2020.

 

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

 

“Code of Ethics
for Arbitrators in Commercial Disputes” means the The Code of Ethics for Arbitrators in Commercial Disputes of 1977,
as revised in 2003, and otherwise revised, modified, amended or supplemented from time to time.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Corporate
Trust Office” means:

 

(a)            with
respect to the Indenture Trustee, 1251 Avenue of the Americas, 19th Floor, New York, New York 10020, or at such other address or
electronic mail address as the Indenture Trustee may designate from time to time by notice to the Noteholders and the Issuing Entity,
or the principal corporate trust office of any successor Indenture Trustee at the address or electronic mail address designated
by such successor Indenture Trustee by notice to the Noteholders and the Issuing Entity; and

 

    App. A-7

     

    

 

(b)            with
respect to the Owner Trustee, the corporate trust office of the Owner Trustee located at U.S. Bank Trust National Association,
1011 Centre Road, Suite 203, Wilmington, Delaware 19805, Attn: World Omni Auto Receivables Trust 2020-C, with a copy to U.S.
Bank Trust National Association, Mail Code MK-IL-SL7R, 190 S. LaSalle Street, 7th Floor, Chicago, Illinois 60603, Attention:
Global Corp. Trust and Custody - World Omni Auto Receivables Trust 2020-C, Telecopy: (866) 807-8670, or at such other address or
electronic mail address as the Owner Trustee may designate by notice to the Certificateholders and the Depositor, or the principal
corporate trust office of any successor Owner Trustee at the address or electronic mail address designated by such successor Owner
Trustee by notice to the Certificateholders and the Depositor.

 

“Cutoff Date”
means the close of business on July 23, 2020.

 

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

 

“Debt Opinion”
has the meaning specified in Section 2.04(b) of the Indenture.

 

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

 

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

 

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

 

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

 

“Delinquency
Trigger” means 4.70%.

 

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

 

    App. A-8

     

    

 

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

 

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

 

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

 

    App. A-9

     

    

 

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

 

“Depositor”
means World Omni Auto Receivables LLC, a Delaware limited liability company, or its successors, in its capacity as Depositor under
certain of the Basic Documents.

 

“Eligible
Deposit Account” means either (a) a segregated account with an Eligible Institution or (b) a segregated trust
account with the corporate trust department of a depository institution organized under the laws of the United States of America
or any one of the states thereof or the District of Columbia (or any domestic branch of a foreign bank), having corporate trust
powers and acting as trustee for funds deposited in such account, so long as any of the securities of such depository institution
shall have a credit rating of BBB or better by S&P Global Ratings and of each Rating Agency (if rated by Fitch) in one of its
generic rating categories that signifies investment grade, except if rated by Fitch, the long-term unsecured debt of such depository
institution shall have a credit rating of F1 or A. Any such trust account may be maintained with the Owner Trustee, the Indenture
Trustee or any of their respective Affiliates, if such accounts meet the requirements described in clause (b) of the preceding
sentence.

 

“Eligible
Institution” means

 

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

 

(b) a depository
institution or trust company organized under the laws of the United States of America or any one of the states thereof, or the
District of Columbia (or any domestic branch of a foreign bank), which at all times (i) has either (A) a long-term unsecured
debt rating of F1 or A or better by Fitch, and AA or better by S&P Global Ratings, or such other rating that is acceptable
to each Rating Agency or (B) a certificate of deposit rating of F1 or A by Fitch, and A-1+ by S&P Global Ratings, or such
other rating that is acceptable to each Rating Agency and (ii) whose deposits are insured by the FDIC.

 

    App. A-10

     

    

 

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

 

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

 

(b)            money
market deposit accounts, certificates of deposit, demand or time deposits, savings deposits, bankers acceptances, or federal funds,
in each case as defined in Regulation D of the Board of Governors of the Federal Reserve System and issued by or sold by or offered
by, any domestic office of any commercial bank or any depository institution or trust company (including the Indenture Trustee
or the Owner Trustee or their successors) incorporated or organized under the laws of the United States or any State thereof which
has a combined capital and surplus and undivided profits of not less than $250,000,000 and the deposits of which are insured by
the FDIC to the full extent legally permitted, so long as at the time of such investment or contractual commitment providing for
such investment either such depository institution or trust company is an Eligible Institution (or has a rating on commercial paper
or other short term unsecured debt obligations of F1 or A by Fitch so long as Fitch is a Rating Agency) or as to which the Rating
Agency Condition is satisfied;

 

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

 

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

 

    App. A-11

     

    

 

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

 

(f)            guaranteed
reinvestment agreements issued by any bank, insurance company or other corporation, so long as at the time of such investment or
contractual commitment providing for such investment either such bank, insurance company or other corporation is an Eligible Institution
(or has a rating on commercial paper or other short term unsecured debt obligations of F1 or A by Fitch so long as Fitch is a Rating
Agency) or as to which the Rating Agency Condition is satisfied;

 

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

 

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

 

(i)             funds
classified as money market funds; provided, however, that the fund shall be rated with the highest available
credit rating of Fitch (if rated by Fitch or, if not rated by Fitch, an equivalent rating by Moody’s Investors Service, Inc.)
and S&P Global Ratings, and redemptions shall be permitted on a daily or next business day basis;

 

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

 

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

 

    App. A-12

     

    

 

(l)             for
the purposes of funds held in the Reserve Account only, in addition to the above requirements, such funds may only be invested
in Eligible Investments meeting the requirements of §246.4(b)(2) of Regulation RR, as determined solely by the Servicer.

 

Notwithstanding anything
to the contrary contained in the foregoing definition:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    App. A-13

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“FDIC”
means the Federal Deposit Insurance Corporation.

 

“Final Prospectus”
shall mean the prospectus dated August 11, 2020, relating to the Notes.

 

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

 

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

 

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

 

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

 

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

 

    App. A-14

     

    

 

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

 

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

 

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

 

“Indenture
Trustee” means MUFG Union Bank, N.A., not in its individual capacity but solely as Indenture Trustee under the Indenture,
or any successor Indenture Trustee under the Indenture.

 

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

 

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

 

“Initial Aggregate
Starting Principal Balance” means $1,318,405,815.29.

 

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

 

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

 

    App. A-15

     

    

 

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

 

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

 

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

 

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

 

“Issuing Entity”
means World Omni Auto Receivables Trust 2020-C until a successor replaces it and, thereafter, means the successor and, for purposes
of any provision contained in the Indenture and required by the TIA, each other obligor on the Notes.

 

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

 

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

 

“Monthly Remittance
Condition” means each of the following conditions has been satisfied: (i) World Omni is the Servicer, (ii) no
Servicer Default shall have occurred and is continuing, and (iii) (a) World Omni’s long-term unsecured debt obligations
rating by S&P is BBB or better and (b) World Omni’s unsecured debt obligations rating by any other Rating Agency
is acceptable to such other Rating Agency.

 

    App. A-16

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Noteholders”
shall mean the holders of the Notes.

 

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

 

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

 

    App. A-17

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    App. A-18

     

    

 

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

 

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

 

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

 

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

 

“Overcollateralization
Target Amount” means, with respect to any Payment Date, an amount equal to 1.15% of the aggregate Principal Balance
of the Receivables as of the end of the related Collection Period less the Yield Supplement Overcollateralization Amount of those
Receivables as of the last day of the related Collection Period, but not less than the result of 0.50% of the Aggregate Starting
Principal Balance of the Receivables minus the Yield Supplement Overcollateralization Amount as of the Closing Date.

 

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

 

“Owner Trustee”
shall mean U.S. Bank Trust National Association, not in its individual capacity but solely as owner trustee under the Trust Agreement,
and any successor Owner Trustee thereunder.

 

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

 

    App. A-19

     

    

 

“Payment Date”
means, with respect to each Collection Period, the fifteenth day of the following month or, if such day is not a Business Day,
the immediately following Business Day. The initial Payment Date will be September 15, 2020.

 

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

 

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

 

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

 

“Personally
Identifiable Information” means information in any format about an identifiable individual, including name, address,
phone number, e-mail address, account number(s), identification number(s), any other actual or assigned attribute associated with
or identifiable to an individual and any information that when used separately or in combination with other information could identify
an individual.

 

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

 

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

 

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

 

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

 

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

 

    App. A-20

     

    

 

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

 

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

 

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

 

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

 

“Purchased
Receivable” means a Receivable purchased as of the close of business on the last day of a Collection Period by the Servicer
pursuant to Section 4.02 or Section 4.07 of the Sale and Servicing Agreement or by World Omni pursuant
to Section 3.02(b) of the Sale and Servicing Agreement.

 

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

 

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

 

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

 

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

 

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

 

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

 

    App. A-21

     

    

 

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

 

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

 

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

 

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

 

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

 

“Regulation
RR or Credit Risk Retention Rules” means risk retention regulations in 17 C.F.R. Part 246 as such regulation may
be amended from time to time and subject to such clarification and interpretation as have been provided by the Commission in an
adopting release or by the staff of the Commission, or as may be provided in writing by the Commission or its staff from time to
time.

 

“Reporting
Officer” means, with respect to the Owner Trustee, any officer, employee or other person within the Corporate Trust Office
of the Owner Trustee having direct responsibility for the administration of the Trust Agreement.

 

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

 

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

 

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

 

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

 

    App. A-22

     

    

 

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

 

“Required
Rate” means (i) with respect to the Cutoff Date, 5.50% per annum, and (ii) with respect to the initial Payment
Date and each period thereafter, 5.25% per annum; or, in each case, such other percentage approved by the Rating Agencies.

 

“Required
Rating” means a rating on commercial paper or other short term unsecured debt obligations of F1 or A by Fitch so long
as Fitch is a Rating Agency and A-1+ by S&P Global Ratings so long as S&P Global Ratings is a Rating Agency; and any requirement
that deposits or debt obligations have the “Required Rating” shall mean that such deposits or debt obligations have
the foregoing required ratings from Fitch and S&P Global Ratings.

 

“Required
Reserve Amount” means, with respect to any Payment Date, 1.00% (or such other higher percentage as may be determined
by the Depositor, in its sole discretion, on or prior to the Closing Date) of the difference of the Aggregate Starting Principal
Balance less the Yield Supplement Overcollateralization Amount as of the Cutoff Date of all Receivables transferred to the Trust.

 

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

 

“Reserve
Account Initial Deposit” means cash or Eligible Investments having a value of $12,588,844.52.

 

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

 

“Retained
Notes” means [RESERVED].

 

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

 

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

 

    App. A-23

     

    

 

“Review Receivable”
has the meaning designated in Section 1.02 of the Asset Representations Review Agreement.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Servicing
Fee Rate” means 1.00% per annum.

 

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

 

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

 

    App. A-24

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    App. A-25

     

    

 

“Trust”
means World Omni Auto Receivables Trust 2020-C, a Delaware statutory trust.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Trustee Bank”
means U.S. Bank Trust National Association, in its individual capacity, each bank appointed as successor Owner Trustee under the
Trust Agreement in its individual capacity and each bank appointed as co-trustee under and to the extent provided in the Trust
Agreement in its individual capacity.

 

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

 

    App. A-26

     

    

 

“U.S. Person”
means:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

APPENDIX A

 

PART II - RULES OF CONSTRUCTION

 

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

 

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

 

    App. A-27

     

    

 

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

 

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

 

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

 

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

 

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

 

    App. A-28

     

    

 

APPENDIX B

 

Additional Representations and Warranties

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    App. B

     

    

 

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

 

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

 

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

 

    App. B-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00312-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00312-of-00352.parquet"}]]