Document:

Exhibit 10.66

CONFIDENTIAL
PRIVATE PLACEMENT MEMORANDUM

 

BIOXYTRAN,
INC.

 

Bioxytran,
Inc., a Nevada corporation (the “Company”, “we” or “us”), is offering (the “Offering”)
up to $1.0 million (the “Maximum Offering”) of the Company’s convertible notes (the “Convertible Notes”)
convertible into the Company’s common stock, par value $0.001 (the “Common Stock”), at the time of the Company’s
initial public offering (“IPO”), or at the holder’s option, at $1.00 per share, adjusted to reflect any stock
split, stock dividend or dilutive offering which may be made by the Company after the date of this Confidential Private Placement
Memorandum (each underlying issuable share a “Conversion Share”). The Convertible Notes shall bear interest at 6%
and have a Maturity Date of April 30, 2022. The Convertible Notes are being offered on a “best efforts” basis. There
is no minimum offering amount. Since there is no minimum offering amount of the Convertible Notes required to be sold in this
Offering, all funds received from subscriptions to the Offering will immediately become assets of the Company, and available for
use by the Company, upon acceptance of the subscriptions by the Company. The Company may increase or decrease the amount of the
Maximum Offering in its sole discretion. The Company may reject subscriptions in whole or in part, in its discretion.

 

The
proceeds shall equal the following:

	 	Price
    to Subscribers	Commissions(1)	Fees
    (2)	Proceeds
    to Company
	Maximum
    Offering	$1,000,000	$90,000	$20,000	$890,000

 

		(1)	Represents
                                         commissions of 9% of the amount paid by subscribers plus accountable expenses of 1% of
                                         the amount paid by subscribers. The Company will issue common stock equal to 5% of the
                                         Conversion Shares issued by the Company in this offering.

 

		(2)	Represents
                                         professional fees equal to $20,000.

 

THE
SECURITIES OFFERED HEREBY HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION (THE “SEC”),
ANY STATE SECURITIES COMMISSION OR ANY OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING PASSED UPON OR ENDORSED THE MERITS
OF THE OFFERING OR THE ACCURACY OR ADEQUACY OF THIS CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM (THE “MEMORANDUM”).
THE SECURITIES OFFERED HEREBY MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF BY AN INVESTOR UNLESS THEY ARE REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND WHERE REQUIRED, UNDER THE LAWS OF OTHER JURISDICTIONS,
UNLESS SUCH PROPOSED SALE, TRANSFER OR DISPOSITION IS EXEMPT FROM SUCH REGISTRATION.SUBSCRIPTIONS WILL BE ACCEPTED ONLY FROM “ACCREDITED
INVESTORS,” AS DEFINED IN RULE 501 OF REGULATION D (SEE “INVESTOR SUITABILITY STANDARDS”). THE SECURITIES OFFERED
HEREBY ARE SPECULATIVE AND INVOLVE A HIGH DEGREE OF RISK. NO INVESTMENT IN THE SECURITIES SHOULD BE MADE BY ANY PERSON WHO IS
NOT IN A POSITION TO LOSE THE ENTIRE AMOUNT OF SUCH INVESTMENT. IN MAKING ANY INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR
EXAMINATION OF US AND THE TERMS OF THIS OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. SEE THE INFORMATION SET FORTH UNDER
“RISK FACTORS” BEFORE PURCHASING SUCH SECURITIES.

 

The
date of this Memorandum is September 17, 2021 

 

    

     

    

SECURITIES
RISK FACTORS AND SUITABILITY DISCLOSURES

 

INVESTORS
SHALL BE REQUIRED TO REPRESENT THAT THEY ARE FAMILIAR WITH AND UNDERSTAND THE TERMS, RISKS AND MERITS OF THE OFFERING DESCRIBED
IN THIS MEMORANDUM AND ALL THE ATTACHMENTS HERETO. THE COMMON STOCK IS BEING OFFERED IN A PRIVATE OFFERING TO A LIMITED NUMBER
OF INDIVIDUALS OR ENTITIES MEETING CERTAIN SUITABILITY STANDARDS. THIS OFFERING INVOLVES A HIGH DEGREE OF RISK AND PROSPECTIVE
INVESTORS SHOULD BE AWARE THAT THEY MAY SUSTAIN A LOSS OF THEIR ENTIRE INVESTMENT.

 

EXCLUSIVE
NATURE OF THE PRIVATE PLACEMENT MEMORANDUM 

NO
ENTITY HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS MEMORANDUM.
ANY INFORMATION OR REPRESENTATION NOT CONTAINED HEREIN MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE COMPANY. MOREOVER,
NEITHER THE DELIVERY OF THIS MEMORANDUM NOR THE SALE OF THE COMMON STOCK SHALL UNDER ANY CIRCUMSTANCES CREATE ANY IMPLICATION
THAT THERE HAS BEEN NO CHANGE IN THE MATTERS DISCUSSED IN THIS MEMORANDUM SINCE THE DATE HEREOF; HOWEVER, IN THE EVENT OF ANY
MATERIAL CHANGE OCCURRING PRIOR TO THE COMPLETION OF THE OFFERING DESCRIBED HEREIN, THIS MEMORANDUM SHALL BE AMENDED AND REVISED
ACCORDINGLY. THE COMPANY DISCLAIMS ANY AND ALL LIABILITIES FOR REPRESENTATIONS OR WARRANTIES EXPRESSED OR IMPLIED, CONTAINED IN,
OR OMISSIONS FROM, THIS MEMORANDUM, OR ANY OTHER WRITTEN OR ORAL COMMUNICATION TRANSMITTED OR MADE AVAILABLE TO THE RECIPIENT.
EACH INVESTOR SHALL BE ENTITLED TO RELY SOLELY ON THOSE REPRESENTATIONS AND WARRANTIES WHICH MAY BE MADE TO THE INVESTOR IN ANY
FINAL PURCHASE OR SUBSCRIPTION AGREEMENT RELATING TO THE COMMON STOCK. THE DELIVERY OF THIS MEMORANDUM DOES NOT CONSTITUTE AN
OFFER IN ANY JURISDICTION TO ANY PERSON TO WHOM SUCH OFFER WOULD BE UNLAWFUL IN SUCH JURISDICTION.

 

THIS
MEMORANDUM DOES NOT PURPORT TO BE ALL-INCLUSIVE OR TO CONTAIN ALL OF THE INFORMATION THAT A PROSPECTIVE INVESTOR MAY DESIRE IN
EVALUATING AN INVESTMENT IN THE COMPANY. INVESTORS MUST CONDUCT AND RELY ON THEIR OWN EVALUATIONS OF THE COMPANY AND THE TERMS
OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED IN MAKING AN INVESTMENT DECISION WITH RESPECT TO THE COMMON STOCK. THE
RISK FACTORS DEFINED ABOVE SHOULD BE CONSIDERED IN CONNECTION WITH THE PURCHASE OF THE COMMON STOCK. NEITHER THE DELIVERY OF THIS
MEMORANDUM AT ANY TIME, NOR ANY SALE OF THE COMMON STOCK HEREUNDER, SHALL UNDER ANY CIRCUMSTANCES CREATE AN IMPLICATION THAT THE
INFORMATION CONTAINED IN THIS MEMORANDUM IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS DATE.

 

STATEMENT
REGARDING FORWARD LOOKING PROJECTIONS 

THE
STATEMENTS, PROJECTIONS AND ESTIMATES OF FUTURE PERFORMANCE OF THE COMPANY OR VARIOUS ELEMENTS OF THE COMPANY’S BUSINESS
CONTAINED IN THIS MEMORANDUM THAT ARE NOT HISTORICAL FACTS ARE FORWARD-LOOKING STATEMENTS. INVESTORS SHOULD EXPECT THAT ANTICIPATED
EVENTS AND CIRCUMSTANCES MAY NOT OCCUR, THAT UNANTICIPATED EVENTS AND CIRCUMSTANCES SHALL OCCUR, AND THAT ACTUAL RESULTS SHALL
LIKELY VARY FROM THE FORWARD-LOOKING CIRCUMSTANCES. INVESTORS SHOULD BE AWARE THAT A NUMBER OF FACTORS COULD CAUSE THE FORWARD-LOOKING
STATEMENTS CONTAINED IN THIS MEMORANDUM TO BE INCORRECT OR TO DIFFER MATERIALLY FROM ACTUAL RESULTS. SUCH FACTORS MAY INCLUDE,
WITHOUT LIMITATION, (i) THE ABILITY OF THE COMPANY TO COMPLETE THE DEVELOPMENT OF ITS PRODUCTS IN A TIMELY MANNER, (ii) THE DEMAND
FOR AND TIMING OF DEMAND FOR SUCH SERVICES AND PRODUCTS, (iii) COMPETITION FROM OTHER PRODUCTS AND COMPANIES, (iv) THE COMPANY’S
SALES, (v) THE COMPANY’S ABILITY TO SELL ITS SERVICES AND PRODUCTS PROFITABLY, (vi) AVAILABILITY OF ADEQUATE DEBT AND EQUITY
FINANCING, AND (vii) GENERAL BUSINESS AND ECONOMIC CONDITIONS. THESE IMPORTANT FACTORS AND CERTAIN OTHER FACTORS THAT MIGHT AFFECT
THE COMPANY’S FINANCIAL AND BUSINESS RESULTS ARE DISCUSSED IN THIS MEMORANDUM UNDER “RISK FACTORS.” THERE CAN
BE NO ASSURANCE THAT THE COMPANY SHALL BE ABLE TO ANTICIPATE OR RESPOND TO CHANGES IN ANY FACTORS AFFECTING THE COMPANY’S
BUSINESS.

    

     

    

SAFE
HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT

WITH
THE EXCEPTION OF THE HISTORICAL INFORMATION CONTAINED IN THIS DOCUMENT, THE MATTERS DESCRIBED HEREIN CONTAIN FORWARD-LOOKING STATEMENTS
THAT INVOLVE RISK AND UNCERTAINTIES THAT INDIVIDUALLY OR MUTUALLY IMPACT THE MATTERS HEREIN DESCRIBED INCLUDING, BUT NOT LIMITED
TO, FINANCIAL PROJECTIONS, PRODUCT DEMAND AND MARKET ACCEPTANCE, THE EFFECT OF ECONOMIC CONDITIONS, THE IMPACT OF COMPETITIVE
PRODUCTS AND PRICING, GOVERNMENTAL REGULATIONS, TECHNOLOGICAL DIFFICULTIES AND/OR OTHER FACTORS OUTSIDE THE CONTROL OF THE COMPANY.

 

DISCLAIMERS

THE
COMMON STOCK OFFERED HEREBY IN THIS OFFERING MEMORANDUM HAS NOT BEEN REGISTERED WITH, OR APPROVED, BY THE SEC, NOR HAS SUCH COMMON
STOCK OR THIS MEMORANDUM BEEN FILED WITH OR REVIEWED BY THE ATTORNEY GENERAL OF ANY STATE OR THE SECURITIES REGULATORY AUTHORITY
OF ANY STATE. THIS OFFERING IS BASED ON THE EXEMPTIONS FROM SUCH REGISTRATION AS SET FORTH IN §4(2) AND RULE 506 OF REGULATION
D OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

THE
INVESTMENT DESCRIBED IN THIS MEMORANDUM INVOLVES RISKS, AND IS OFFERED ONLY TO INDIVIDUALS WHO CAN AFFORD TO ASSUME SUCH RISK
FOR AN INDEFINITE PERIOD OF TIME AND WHO AGREE TO PURCHASE THE COMMON STOCK ONLY FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TOWARD
THE TRANSFER, RESALE, EXCHANGE OR FURTHER DISTRIBUTION THEREOF. THE RESALE OF THE COMMON STOCK IS LIMITED BY FEDERAL AND STATE
SECURITIES LAWS AND IT IS THEREFORE RECOMMENDED THAT EACH POTENTIAL INVESTOR SEEK COUNSEL FOR MORE INFORMATION.

 

NO
PERSON IS AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATION IN CONNECTION WITH THIS MEMORANDUM, EXCEPT SUCH INFORMATION
AS IS CONTAINED OR REFERENCED IN THIS MEMORANDUM. ONLY INFORMATION OR REPRESENTATIONS CONTAINED OR REFERENCED HEREIN MAY BE RELIED
UPON AS HAVING BEEN MADE BY THE COMPANY. PROSPECTIVE INVESTORS WHO HAVE QUESTIONS CONCERNING THE TERMS AND CONDITIONS OF THIS
PRIVATE OFFERING MEMORANDUM OR WHO DESIRE ADDITIONAL INFORMATION OR DOCUMENTATION TO VERIFY THE INFORMATION CONTAINED HEREIN SHOULD
CONTACT THE COMPANY. PROJECTIONS OR FORECASTS CONTAINED IN THIS MEMORANDUM, OR OTHER MATERIALS, MUST BE VIEWED ONLY AS ESTIMATES.
ALTHOUGH ANY PROJECTIONS CONTAINED IN THIS MEMORANDUM ARE BASED UPON ASSUMPTIONS WHICH THE COMPANY BELIEVES TO BE REASONABLE,
THE ACTUAL PERFORMANCE OF THE COMPANY MAY DEPEND UPON FACTORS BEYOND THE CONTROL OF THE COMPANY. NO ASSURANCE CAN BE GIVEN THAT
THE COMPANY’S ACTUAL PERFORMANCE WILL MATCH ITS INTENDED RESULTS.

 

JURISDICTIONAL
(NASAA) LEGENDS

FOR
RESIDENTS OF ALL STATES: THE PRESENCE OF A LEGEND FOR ANY GIVEN STATE REFLECTS ONLY THAT A LEGEND MAY BE REQUIRED BY THAT STATE
AND SHOULD NOT BE CONSTRUED TO MEAN AN OFFER OR SALE MAY BE MADE IN A PARTICULAR STATE. IF YOU ARE UNCERTAIN AS TO WHETHER OR
NOT OFFERS OR SALES MAY BE LAWFULLY MADE IN ANY GIVEN STATE, YOU ARE HEREBY ADVISED TO CONTACT THE COMPANY. THE SECURITIES DESCRIBED
IN THIS MEMORANDUM HAVE NOT BEEN REGISTERED UNDER ANY STATE SECURITIES LAWS (COMMONLY CALLED “BLUE SKY” LAWS). THESE
SECURITIES MUST BE ACQUIRED FOR INVESTMENT PURPOSES ONLY AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
OF SUCH SECURITIES UNDER SUCH LAWS, OR AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

THE
PRESENCE OF A LEGEND FOR ANY GIVEN STATE REFLECTS ONLY THAT A LEGEND MAY BE REQUIRED BY THE STATE AND SHOULD NOT BE CONSTRUED
TO MEAN AN OFFER OF SALE MAY BE MADE IN ANY PARTICULAR STATE. THE DISCLOSURES BELOW ARE SUBJECT TO REVISION OR MODIFICATION, AND
THE INVESTOR IS ADVISED TO SEEK INDEPENDENT LEGAL ADVICE IN THEIR JURISDICTION.

 

    

     

    

NOTICE
TO ARIZONA RESIDENTS ONLY: THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE ARIZONA SECURITIES ACT IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION PURSUANT TO A.R.S. SECTION 44-1844 (1) AND THEREFORE CANNOT BE RESOLD UNLESS THEY ARE ALSO
REGISTERED OR UNLESS AN EXEMPTION FROM REGISTRATION IS AVAILABLE.

 

FOR
CALIFORNIA RESIDENTS ONLY: THE SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS OFFERING HAS NOT BEEN QUALIFIED WITH COMMISSIONER
OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF SUCH SECURITIES OR PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION
THEREFORE PRIOR TO SUCH QUALIFICATIONS IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPTED FROM QUALIFICATION BY SECTION 25100,
25102, OR 25104 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS OFFERING ARE EXPRESSLY CONDITION UPON SUCH
QUALIFICATIONS BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT.

 

NOTICE
TO CONNECTICUT RESIDENTS ONLY: SHARES ACQUIRED BY CONNECTICUT RESIDENTS ARE BEING SOLD AS A TRANSACTION EXEMPT UNDER SECTION
36-409(b)(9)(A) OF THE CONNECTICUT, UNIFORM SECURITIES ACT. THE SHARES HAVE NOT BEEN REGISTERED UNDER SAID ACT IN THE STATE OF
CONNECTICUT. ALL INVESTORS SHOULD BE AWARE THAT THERE IS CERTAIN RESTRICTIONS AS TO THE TRANSFERABILITY OF THE SHARES.

 

NOTICE
TO DISTRICT OF COLUMBIA RESIDENTS ONLY: THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES BUREAU OF
THE DISTRICT OF COLUMBIA NOR HAS THE COMMISSIONER PASSED UPON THE ACCURACY OR ADEQUACY OF THIS DOCUMENT. ANY REPRESENTATION TO
THE CONTRARY IS UNLAWFUL.

 

NOTICE
TO FLORIDA RESIDENTS ONLY: THE SHARES DESCRIBED HEREIN HAVE NOT BEEN REGISTERED WITH THE FLORIDA DIVISION OF SECURITIES AND
INVESTOR PROTECTION UNDER THE FLORIDA SECURITIES ACT. THE SHARES REFERRED TO HEREIN WILL BE SOLD TO, AND ACQUIRED BY THE HOLDER
IN A TRANSACTION EXEMPT UNDER SECTION 517.061 OF SAID ACT. THE SHARES HAVE NOT BEEN REGISTERED UNDER SAID ACT IN THE STATE OF
FLORIDA. IN ADDITION, ALL OFFEREES WHO ARE FLORIDA RESIDENTS SHOULD BE AWARE THAT SECTION 517.061(11)(a)(5) OF THE ACT PROVIDES,
IN RELEVANT PART, AS FOLLOWS: “WHEN SALES ARE MADE TO FIVE OR MORE PERSONS IN [FLORIDA], ANY SALE IN [FLORIDA] MADE PURSUANT
TO [THIS SECTION] IS VOIDABLE BY THE PURCHASER IN SUCH SALE EITHER WITHIN 3 DAYS AFTER THE FIRST TENDER OF CONSIDERATION IS MADE
BY THE PURCHASER TO THE ISSUER, AN AGENT OF THE ISSUER OR AN ESCROW AGENT OR WITHIN 3 DAYS AFTER THE AVAILABILITY OF THAT PRIVILEGE
IS COMMUNICATED TO SUCH PURCHASER, WHICHEVER OCCURS LATER.”

 

THE
AVAILABILITY OF THE PRIVILEGE TO VOID SALES PURSUANT TO SECTION 517.061(11) IS HEREBY COMMUNICATED TO EACH FLORIDA OFFEREE. EACH
PERSON ENTITLED TO EXERCISE THE PRIVILEGE TO AVOID SALES GRANTED BY SECTION 517.061 (11) (A)(5) AND WHO WISHES TO EXERCISE SUCH
RIGHT, MUST, WITHIN 3 DAYS AFTER THE TENDER OF ANY AMOUNT TO THE COMPANY OR TO ANY AGENT OF THE COMPANY (INCLUDING THE SELLING
AGENT OR ANY OTHER DEALER ACTING ON BEHALF OF THE PARTNERSHIP OR ANY SALESMAN OF SUCH DEALER) OR AN ESCROW AGENT CAUSE A WRITTEN
NOTICE OR TELEGRAM TO BE SENT TO THE COMPANY AT THE ADDRESS PROVIDED IN THIS CONFIDENTIAL EXECUTIVE SUMMARY. SUCH LETTER OR TELEGRAM
MUST BE SENT AND, IF POSTMARKED, POSTMARKED ON OR PRIOR TO THE END OF THE AFOREMENTIONED THIRD DAY. IF A PERSON IS SENDING A LETTER,
IT IS PRUDENT TO SEND SUCH LETTER BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO ASSURE THAT IT IS RECEIVED AND ALSO TO EVIDENCE
THE TIME IT WAS MAILED. SHOULD A PERSON MAKE THIS REQUEST ORALLY, HE MUST ASK FOR WRITTEN CONFIRMATION THAT HIS REQUEST HAS BEEN
RECEIVED.

 

NOTICE
TO GEORGIA RESIDENTS ONLY: THESE SECURITIES ARE OFFERED IN A TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE
GEORGIA SECURITIES ACT PURSUANT TO REGULATION 590-4-5-04 AND -01. THE SECURITIES CANNOT BE SOLD OR TRANSFERRED EXCEPT IN A TRANSACTION
WHICH IS EXEMPT UNDER THE ACT OR PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR IN A TRANSACTION WHICH IS OTHERWISE
IN COMPLIANCE WITH THE ACT.

 

NOTICE
TO ILLINOIS RESIDENTS: THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECRETARY OF THE STATE OF ILLINOIS NOR
HAS THE STATE OF ILLINOIS PASSED UPON THE ACCURACY OR ADEQUACY OF THE OFFERING. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

    

     

    

 

NOTICE
TO INDIANA RESIDENTS ONLY: THESE SECURITIES ARE OFFERED PURSUANT TO A CLAIM OF EXEMPTION UNDER SECTION 23-2-1-2 OF THE
INDIANA SECURITIES LAW AND HAVE NOT BEEN REGISTERED UNDER SECTION 23-2-1-3. THEY CANNOT THEREFORE BE RESOLD UNLESS THEY ARE
REGISTERED UNDER SAID LAW OR UNLESS AN EXEMPTION FORM REGISTRATION IS AVAILABLE. A CLAIM OF EXEMPTION UNDER SAID LAW HAS BEEN
FILED, AND IF SUCH EXEMPTION IS NOT DISALLOWED SALES OF THESE SECURITIES MAY BE MADE. HOWEVER, UNTIL SUCH EXEMPTION IS
GRANTED, ANY OFFER MADE PURSUANT HERETO IS PRELIMINARY AND SUBJECT TO MATERIAL CHANGE.

 

NOTICE
TO MARYLAND RESIDENTS ONLY: IF YOU ARE A MARYLAND RESIDENT AND YOU ACCEPT AN OFFER TO PURCHASE THESE SECURITIES PURSUANT TO
THIS MEMORANDUM, YOU ARE HEREBY ADVISED THAT THESE SECURITIES ARE BEING SOLD AS A TRANSACTION EXEMPT UNDER SECTION 11- 602(9)
OF THE MARYLAND SECURITIES ACT. THE SHARES HAVE NOT BEEN REGISTERED UNDER SAID ACT IN THE STATE OF MARYLAND. ALL INVESTORS SHOULD
BE AWARE THAT THERE ARE CERTAIN RESTRICTIONS AS TO THE TRANSFERABILITY OF THE SHARES.

 

NOTICE
TO MASSACHUSETTS RESIDENTS ONLY: THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
THE MASSACHUSETTS UNIFORM SECURITIES ACT, BY REASON OF SPECIFIC EXEMPTIONS THEREUNDER RELATING TO THE LIMITED AVAILABILITY OF
THIS OFFERING. THESE SECURITIES CANNOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF TO ANY PERSON OR ENTITY UNLESS THEY ARE
SUBSEQUENTLY REGISTERED OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE.

 

NOTICE
TO MICHIGAN RESIDENTS ONLY: THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER SECTION 451.701 OF THE MICHIGAN UNIFORM SECURITIES
ACT (THE ACT) AND MAY BE TRANSFERRED OR RESOLD BY RESIDENTS OF MICHIGAN ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE ACT,
OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE.

 

NOTICE
TO MINNESOTA RESIDENTS ONLY: THESE SECURITIES BEING OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER CHAPTER 80A OF THE MINNESOTA
SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO REGISTRATION, OR AN EXEMPTION THEREFROM.

 

NOTICE
TO NEW JERSEY RESIDENTS ONLY: IF YOU ARE A NEW JERSEY RESIDENT AND YOU ACCEPT AN OFFER TO PURCHASE THESE SECURITIES PURSUANT
TO THIS MEMORANDUM, YOU ARE HEREBY ADVISED THAT THIS MEMORANDUM HAS NOT BEEN FILED WITH OR REVIEWED BY THE ATTORNEY GENERAL OF
THE STATE OF NEW JERSEY PRIOR TO ITS ISSUANCE AND USE. THE ATTORNEY GENERAL OF THE STATE OF NEW JERSEY HAS NOT PASSED ON OR ENDORSED
THE MERITS OF THIS OFFERING. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

 

NOTICE
TO NEW YORK RESIDENTS ONLY: THIS DOCUMENT HAS NOT BEEN REVIEWED BY THE ATTORNEY GENERAL OF THE STATE OF NEW YORK PRIOR TO
ITS ISSUANCE AND USE. THE ATTORNEY GENERAL OF THE STATE OF NEW YORK HAS NOT PASSED ON OR ENDORSED THE MERITS OF THIS OFFERING.
ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL. THE COMPANY HAS TAKEN NO STEPS TO CREATE AN AFTER MARKET FOR THE SHARES OFFERED
HEREIN AND HAS MADE NO ARRANGEMENTS WITH BROKERS OF OTHERS TO TRADE OR MAKE A MARKET IN THE SHARES. AT SOME TIME IN THE FUTURE,
THE COMPANY MAY ATTEMPT TO ARRANGE FOR INTERESTED BROKERS TO TRADE OR MAKE A MARKET IN THE SECURITIES AND TO QUOTE THE SAME IN
A PUBLISHED QUOTATION MEDIUM, HOWEVER, NO SUCH ARRANGEMENTS HAVE BEEN MADE AND THERE IS NO ASSURANCE THAT ANY BROKERS WILL EVER
HAVE SUCH AN INTEREST IN THE SECURITIES OF THE COMPANY OR THAT THERE WILL EVER BE A MARKET THEREFORE.

 

NOTICE
TO NORTH CAROLINA RESIDENTS ONLY: IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE PERSON
OR ENTITY CREATING THE SECURITIES AND THE TERMS OF THE OFFERING, INCLUDING MERITS AND RISKS INVOLVED. THESE SECURITIES HAVE NOT
BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE FORGOING AUTHORITIES
HAVE NOT CONFIRMED ACCURACY OR DETERMINED ADEQUACY OF THIS DOCUMENT. REPRESENTATION TO THE CONTRARY IS UNLAWFUL. THESE SECURITIES
ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD
BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

 

    

     

    

NOTICE
TO OHIO RESIDENTS ONLY: IF AN INVESTOR ACCEPTS AN OFFER TO PURCHASE ANY OF THE SECURITIES, THE INVESTOR IS HEREBY ADVISED
THE SECURITIES WILL BE SOLD TO AND ACQUIRED BY IT/HIM/HER IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 107.03(2) OF
THE OHIO SECURITIES LAW AND MAY NOT BE RE-OFFERED FOR SALE, TRANSFERRED, OR RESOLD EXCEPT IN COMPLIANCE WITH SUCH ACT AND APPLICABLE
RULES PROMULGATED THEREUNDER.

 

NOTICE
TO OKLAHOMA RESIDENTS ONLY: THESE SECURITIES ARE OFFERED FOR SALE IN THE STATE OF OKLAHOMA IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION FOR PRIVATE OFFERINGS. ALTHOUGH A PRIOR FILING OF THIS MEMORANDUM AND THE INFORMATION HAS BEEN MADE WITH THE OKLAHOMA
SECURITIES COMMISSION, SUCH FILING IS PERMISSIVE ONLY AND DOES NOT CONSTITUTE AN APPROVAL, RECOMMENDATION OR ENDORSEMENT, AND
IN NO SENSE IS TO BE REPRESENTED AS AN INDICATION OF THE INVESTMENT MERIT OF SUCH SECURITIES. ANY SUCH REPRESENTATION IS UNLAWFUL.

 

NOTICE
TO TENNESSEE RESIDENT ONLY: IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND
THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL
OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY
OR DETERMINED THE ADEQUACY OF THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

 

THESE
SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD. EXCEPT AS PERMITTED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.
INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISK OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF
TIME.

 

NOTICE
TO TEXAS RESIDENTS ONLY: THE SECURITIES OFFERED HEREUNDER HAVE NOT BEEN REGISTERED UNDER APPLICABLE TEXAS SECURITIES LAWS
AND, THEREFORE, ANY PURCHASER THEREOF MUST BEAR THE ECONOMIC RISK OF THE INVESTMENT FOR AN INDEFINITE PERIOD OF TIME BECAUSE THE
SECURITIES CANNOT BE RESOLD UNLESS THEY ARE SUBSEQUENTLY REGISTERED UNDER SUCH SECURITIES LAWS OR AN EXEMPTION FROM SUCH REGISTRATION
IS AVAILABLE. FURTHER, PURSUANT TO §109.13 UNDER THE TEXAS SECURITIES ACT, THE COMPANY IS REQUIRED TO APPRISE PROSPECTIVE
INVESTORS OF THE FOLLOWING: A LEGEND SHALL BE PLACED, UPON ISSUANCE, ON CERTIFICATES REPRESENTING SECURITIES PURCHASED HEREUNDER,
AND ANY PURCHASER HEREUNDER SHALL BE REQUIRED TO SIGN A WRITTEN AGREEMENT THAT HE WILL NOT SELL THE SUBJECT SECURITIES WITHOUT
REGISTRATION UNDER APPLICABLE SECURITIES LAWS, OR EXEMPTIONS THEREFROM.

 

NOTICE
TO WASHINGTON RESIDENTS ONLY: THE ADMINISTRATOR OF SECURITIES HAS NOT REVIEWED THE OFFERING OR PRIVATE PLACEMENT MEMORANDUM
AND THE SECURITIES HAVE NOT BEEN REGISTERED IN RELIANCE UPON THE SECURITIES ACT OF WASHINGTON, CHAPTER 21.20 RCW, AND THEREFORE,
CANNOT BE RESOLD UNLESS THEY ARE REGISTERED UNDER THE SECURITIES ACT OF WASHINGTON, CHAPTER 21.20 RCW, OR UNLESS AN EXEMPTION
FROM REGISTRATION IS MADE AVAILABLE.

 

NOTICE
TO WISCONSIN RESIDENTS ONLY: IN ADDITION TO THE INVESTOR SUITABILITY STANDARDS THAT ARE OTHERWISE APPLICABLE, ANY INVESTOR
WHO IS A WISCONSIN RESIDENT MUST HAVE A NET WORTH (EXCLUSIVE OF HOME, FURNISHINGS AND AUTOMOBILES) IN EXCESS OF THREE AND ONE-THIRD (3 1/3) TIMES THE AGGREGATE AMOUNT INVESTED BY SUCH INVESTOR IN THE SHARES OFFERED HEREIN.

 

    

     

    

TABLE
OF CONTENTS

 

	SUMMARY	1
	OVERVIEW	1
	CONVERTIBLE
    NOTES	1
	THE
    OFFERING	2
	TERMS
    OF OFFERING	2
	RISK
    FACTORS	3
	RISKS
    RELATED
    TO OUR
    BUSINESS	3
	RISKS
    RELATED
    TO OUR
    INTELLECTUAL
    PROPERTY	14
	RISKS
    RELATED
    TO OWNERSHIP
    OF OUR
    COMMON
    STOCK	17
	RISKS
    RELATED
    TO OWNERSHIP
    OF NOTE
    FINANCINGS	21
	USE
    OF PROCEEDS	22
	LIQUIDITY
    AND CAPITAL RESOURCES	22
	BUSINESS	23
	OVERVIEW	23
	INTELLECTUAL
    PROPERTY	25
	MANAGEMENT	27
	MARKET
    FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.	30
	DESCRIPTION
    OF CAPITAL STOCK	30
	DIVIDEND
    POLICY	31

    

     

    

SUMMARY

 

This
summary highlights selected information contained elsewhere in this Confidential Private Placement Memorandum (the “Memorandum”),
and does not contain all of the information that you should consider before investing in our Company. This summary is qualified
in its entirety by, and should be read in conjunction with, the more detailed information appearing elsewhere in this Memorandum
and in our reports filed with the Securities and Exchange Commission. You should read this entire Memorandum carefully, including
the information set forth in the section titled “Risk Factors” before making an investment decision. Unless the context
requires otherwise, references in this Memorandum to “we,” “us,” “our,” “our company,”
or similar terminology refer to Bioxytran, Inc.

 

Overview

 

Bioxytran,
Inc. (the “Company”) is a clinical stage pharmaceutical company focused on the development, manufacture and commercialization
of therapeutic drugs designed to address hypoxia in humans, which is a lack of oxygen to tissues, in a safe and efficient manner.
Our Subsidiary, Pharmalectin, Inc. (the “Subsidiary”) is a clinical stage pharmaceutical company focused on the development,
manufacture and commercialization of therapeutic drugs designed to address conditions related to Covid-19.

 

Bioxytran,
Inc. is headquartered in Needham, Massachusetts. The Company’s initial product pipeline is focused on developing and commercializing
therapeutic molecules for stroke. BXT-25 will be designed to be an injectable anti-necrosis drug specifically designed to treat
a person immediately after that person suffers an ischemic stroke. The drug is designed to be injected intravenously to travel
to the lungs to pick up oxygen molecules to carry to the brain. Like a red blood cell, the drug will cross the blood brain barrier,
which is a protective semi-permeable membrane allowing some material to cross but preventing others from crossing. BXT-25 will
be designed to diffuse oxygen into the brain tissues. We expect the BXT- 25 molecule to be 5,000 times smaller than a red blood
cell.

 

Our
Subsidiary is continuing our clinical trials with a candidate named, ProLectin-Rx a complex polysaccharide derived from galactomannan
and pectin respectively, that binds to, and blocks the activity of galectin-1 and -3, a type of galectin. Galectins are a member
of a family of proteins in the body called lectins. These proteins interact with carbohydrate sugars located in, on the surface
of, and in between cells. This interaction causes the cells to change behavior, including cell movement, multiplication, and other
cellular functions. The interactions between lectins and their target carbohydrate sugars occur via a carbohydrate recognition
domain, or CRD, within the lectin. Galectins are a subfamily of lectins that have a CRD that bind specifically to ß-galactoside
proteins. Galectins have a broad range of functions, including regulation of cell survival and adhesion, promotion of cell-to-cell
interactions, growth of blood vessels, regulation of the immune response and inflammation. During viral infections galectins are
upregulated and downregulated based on the type of virus.

 

ProLectin-M’s
clinical data shows non-toxicity and efficacy for treatment of mild to moderate COVID-19. In our initial Phase I/II clinical trial
are published as a peer-reviewed scientific report in the Journal of Vaccines & Vaccinations. The Company is currently working
on a Phase III clinical trial with the CDCSO in India, and is preparing its IND for a Phase III clinical trial with the FDA, soon
to be followed by a Phase III submission with the EMEA. The clinical trials are expected to take place in July through August,
2021. Further, the Company is also preparing an IND for a second drug candidate ProLectin-I with similar galactin blocking capabilities
as the oral drug, ProLectin-M, but IV-injectable for severe cases of COVID-19. The initial Phase I/II clinical trial is planned
for August through October, 2021. The described clinical trials are subject to additional funding.

 

Convertible
Notes

 

On
April 16, 2020, SEC ordered, pursuant to Section 12(k) of the Securities Exchange Act of 1934, that trading of BIXT is
suspended for the period April 16 through April 29, 2020. As a result of the SEC ordered suspension the Company defaulted on
ten outstanding Convertible Notes; resulting in an increase of the interest to 21% and the principal to increase to 168% of
principal loan amount. The convertible debt increased by $666,456 to $1,604,856 while the interest accrual increased to
approximately $28,563 per month. On May 2 and 3, 2021, Bioxytran, Inc. entered into nine Note Agreements for a total amount
of $3,266,846 in 1-year notes (the “New Notes”), with an interest rate of 6% convertible at the lower of (i) a
fixed price of $0.13, or (ii) 85% of the closing price of any Qualified Financing, which consist of any fundraising receiving
gross proceeds of not less than $500,000.

    1

     

    

THE
OFFERING

 

Terms
of Offering

 

	Issuer:	Bioxytran,
    Inc. is a Nevada corporation that develops branded and generic drug products for the United States market.
	Securities
    Offered:	The
    Company is offering up to $1.0 million (the “Maximum Offering”) of the Company’s convertible notes (the
    “Convertible Notes”) convertible into the Company’s common stock, par value $0.001 (the “Common Stock”),
    at the time of the Company’s initial public offering (“IPO”), or at the holder’s option, at $1.00
    per share, adjusted to reflect any stock split, stock dividend or dilutive offering which may be made by the Company after
    the date of this Confidential Private Placement Memorandum. The Convertible Notes shall bear interest at 6% and have a Maturity
    Date of April 30, 2022. The Convertible Notes are being offered on a “best efforts” basis.
	Use
    of Proceeds:	The
    gross proceeds to us from the sale of the Common Stock are estimated to be $1,000,000. Such proceeds do not include any placement
    agent fees, legal fees and other miscellaneous expenses (estimated to be $130,000). We intend to utilize the proceeds received
    from the sale of the Common Stock for research and development as well as general working capital purposes. The Company will
    have broad discretion in the application of the proceeds. There is no minimum offering amount. Since there is no minimum offering
    amount of the Convertible Notes required to be sold in this Offering, all funds received from subscriptions to the Offering
    will immediately become assets of the Company, and available for use by the Company, upon acceptance of the subscriptions
    by the Company.
	Eligible
    Investors:	The
    Common Stock offered hereby shall be sold only to “accredited investors,” as defined in Rule 501 of Regulation
    D under the Securities Act. Subscribers will be required to make certain representations with respect to their status and
    business experience and to represent, among other things, that they have received a copy of this Memorandum, understand the
    terms of this Offering and are Accredited Investors. We may accept or reject subscriptions in our sole and absolute discretion.
	Risk
                                         Factors

	The
    Common Stock offered hereby involve a high degree of risk and should be considered only by persons who can
afford the loss of their entire investment. Before investing in the Offering, prospective investors should carefully consider
the information set forth under the heading “Risk Factors.” There is no assurance that the Company will achieve its
business objectives or perform in accordance with management’s expectations.

 

The
number of shares of our Common Stock outstanding before this offering is based on 109,871,998 shares of Common Stock outstanding
as of August 11, 2021.

 

We
were incorporated on October 5, 2017 as Bioxytran, Inc. Our phone number is (617) 454-1199. Our principal executive offices are
located at 233 Needham St., Suite 300, Newton, MA 02464.

    2

     

    

RISK
FACTORS

 

Investing
in our Company involves a high degree of risk. You should carefully consider the following information about these risks, together
with the other information appearing elsewhere in this Memorandum before deciding to invest in our Company. The occurrence of
any of the following risks could have a material and adverse effect on our business, reputation, financial condition, results
of operations and future growth prospects, as well as our ability to accomplish our strategic objectives. As a result, the market
value of our Common Stock could decline and you could lose all or part of your investment. Additional risks and uncertainties
not presently known to us or that we currently deem immaterial may also impair our business operations and market value.

 

Risks
Related to Our Business

 

Our
plan relies upon our ability to obtain additional sources of capital and financing. If the amount of capital we are able to raise
from financing activities, together with our revenues from operations, is not sufficient to satisfy our capital needs, we may
be required to cease operations.

 

To
become and remain profitable, we must succeed in developing and commercializing products that generate significant income. This
will require us to be successful in a range of challenging activities, including completing preclinical testing and clinical trials
of our drug candidates, discovering additional drug candidates, obtaining regulatory approval for these drug candidates, manufacturing,
marketing and selling any products for which we may obtain regulatory approval, and establishing and managing our collaborations
at various stages of each candidate’s development. We are only in the preliminary stages of these activities. We may never
succeed in these activities and, even if we do, may never generate income that is significant enough to achieve profitability.

 

Because
of the numerous risks and uncertainties associated with pharmaceutical product development, we are unable to accurately predict
the timing or amount of increased expenses or when, or if, we will be able to achieve profitability. If we are required by the
U.S. Food and Drug Administration, or FDA, or the European Medicines Agency, or EMA, to perform studies in addition to those currently
expected, or if there are any delays in completing our clinical trials or the development of any of our drug candidates, our expenses
could increase, and revenue could be further delayed.

 

Even
if we do achieve profitability, we may not be able to sustain or increase profitability on a quarterly or annual basis. Our failure
to become and remain profitable would depress the value of our company and could impair our ability to raise capital, expand our
business, maintain the research and development efforts that will be initially funded by the proceeds of our currently effective
public offering, diversify our product offerings or even continue our operations. A decline in the value of our company could
also cause you to lose all or part of your investment.

 

We
have incurred losses since our inception and expect to incur losses for the foreseeable future and may never achieve or maintain
profitability.

 

At
June 30, 2021, the net working capital was negative $1,326,329 and the accumulated deficit of $7,240,331. Comparatively, on December
31, 2020, we had net working capital of negative $1,951,256 and an accumulated deficit of

 

$4,721,923.
We believe that we must raise not less than $3,700,000 to be able to continue our business operations for the next 15 months.
We believe that we must raise not less than $3,700,000 in addition to current cash on hand to be able to continue our business
operations for approximately the next 15 months and repay the ten convertible notes. The report of our independent registered
public accountants as of and for period ending December 31, 2020, contained an explanatory paragraph regarding substantial doubt
about our ability to continue as a going concern. Our ability to continue as a going concern is dependent upon our ability to
generate revenue and raise capital from financing transactions. Management anticipates that our cash resources are not sufficient
to continue operations until additional cash investments are secured. The future of the Company is dependent upon its ability
to obtain financing and upon future profitable operations from the development of its new business opportunities. There can be
no assurance that we will be successful in accomplishing its objectives. Without such additional capital, we may be required to
curtail or cease operations.

    3

     

    

We
have a limited operating history, which makes it difficult to evaluate our current business and future prospects.

 

We
are a company with limited operating history, and our operations are subject to all of the risks inherent in establishing a new
business enterprise. The likelihood of our success must be considered in light of the problems, expenses, difficulties, complications
and delays frequently encountered in connection with the formation of a new business, the development of new technologies or those
subject to clinical testing, and the competitive and regulatory environment in which we will operate. We may never obtain FDA
or EMA approval of our products in development and, even if we do so and are also able to commercialize our products, we may never
generate revenue sufficient to become profitable. Our failure to generate revenue and profit would likely cause our securities
to decrease in value or become worthless.

 

We
will require additional financing to implement our business plan, which may not be available on favorable terms or at all, and
we may have to accept financing terms that would place restrictions on us.

 

We
will need to continue to conduct significant research, development, testing and regulatory compliance activities for BXT-25, together
with projected general and administrative expenses, we expect will result in operating losses for the foreseeable future. We may
not be able to obtain equity or debt financing on acceptable terms or at all to implement our growth strategy. As a result, adequate
capital may not be available to finance our current development plan, take advantage of business opportunities or respond to competitive
pressures. If we are unable to raise additional funds, we may be forced to curtail or even abandon our business plan.

 

Until
such time, if ever, as we can generate substantial product income, we expect to finance our cash needs through a combination of
equity offerings, debt financings and license and collaboration agreements. To the extent that we raise additional capital through
the sale of equity or convertible debt securities, the ownership interest of existing stockholders will be diluted, and the terms
of these securities may include liquidation or other preferences that adversely affect the rights of common stockholders. In addition,
the terms of any future financings may impose restrictions on our right to declare dividends or on the manner in which we conduct
our business. Debt financing and preferred equity financing, if available, may involve agreements that include covenants limiting
or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures, declaring
dividends, or making acquisitions or significant asset sales.

 

If
we raise additional funds through collaborations, strategic alliances or marketing, distribution or licensing arrangements with
third parties, we may have to relinquish valuable rights to our technologies, future revenue streams, research programs or drug
candidates or grant licenses on terms that may not be favorable to us and/or that may reduce the value of our Common Stock.

 

Our
products are based on novel, unproven technologies.

 

Our
drug candidates in development are based on novel, unproven technologies using proprietary co-polymer compounds in combination
with similar FDA approved drug for veterinary use. Co-polymers are difficult to synthesize, and we may not be able to synthesize
co-polymer that will be usable as delivery vehicles for the anti-hypoxia drugs we are working with or other therapeutics we intend
to develop. Clinical trials are expensive, time-consuming and may not be successful. They involve the testing of potential therapeutic
agents, or effective treatments, in humans, typically in three phases, to determine the safety and efficacy of the products necessary
for an approved drug. Many products in human clinical trials fail to demonstrate the desired safety and efficacy characteristics.
Even if our products progress successfully through initial or subsequent human testing, they may fail in later stages of development.
We may engage others to conduct our clinical trials, including clinical research organizations and, possibly, government-sponsored
agencies. These trials may not start or be completed as we forecast or may not achieve desired results.

    4

     

    

Clinical
drug development involves a lengthy and expensive process, with an uncertain outcome. We may incur additional costs or experience
delays in completing, or ultimately be unable to complete, the development and commercialization of our drug candidates.

 

Our
drug candidate is unproven, and its risk of failure is high. It is impossible to predict when or if our current or any future
drug candidates will receive regulatory approval or prove effective and safe in humans. Before obtaining marketing approval from
regulatory authorities for the sale of any drug candidate, we must conduct extensive clinical trials and, in the case of BXT-25,
first complete preclinical development, to demonstrate the safety and efficacy of our drug candidates in humans. Clinical testing
is expensive, difficult to design and implement, can take many years to complete and is uncertain as to outcome. A failed clinical
trial can occur at any stage of testing. The outcome of preclinical testing and early clinical trials may not be predictive of
the success of later clinical trials, and interim results of a clinical trial do not necessarily predict final results. Moreover,
preclinical and clinical data are often susceptible to varying interpretations and analyses, and many companies that have believed
their drug candidates performed satisfactorily in preclinical studies and clinical trials have nonetheless failed to obtain marketing
approval of their products.

 

We
may experience numerous unforeseen events during, or as a result of, clinical trials that could delay or prevent our ability to
receive marketing approval or commercialize our drug candidates, including:

 

		●	regulators
                                         or institutional review boards may not authorize us or our investigators to commence
                                         a clinical trial or conduct a clinical trial at a prospective trial site;

		●	we
                                         may experience delays in reaching, or fail to reach, agreement on acceptable clinical
                                         trial contracts or clinical trial protocols with prospective trial sites;

		●	clinical
                                         trials of our drug candidates may produce negative or inconclusive results, and we may
                                         decide, or regulators may require us, to conduct additional clinical trials or abandon
                                         product development programs;

		●	the
                                         number of patients required for clinical trials of our drug candidates may be larger
                                         than we anticipate, enrollment in these clinical trials may be slower than we anticipate,
                                         or participants may drop out of these clinical trials at a higher rate than we anticipate;

		●	our
                                         third-party contractors may fail to comply with regulatory requirements or meet their
                                         contractual obligations to us in a timely manner, or at all;

		●	we
                                         may have to suspend or terminate clinical trials of our drug candidates for various reasons,
                                         including a finding that the participants are being exposed to unacceptable health risks;

		●	regulators
                                         or institutional review boards may require that we or our investigators suspend or terminate
                                         clinical research for various reasons, including noncompliance with regulatory requirements
                                         or a finding that the participants are being exposed to unacceptable health risks;

		●	the
                                         cost of clinical trials of our drug candidates may be greater than we anticipate;

		●	the
                                         supply or quality of our drug candidates or other materials necessary to conduct clinical
                                         trials of our drug candidates may be insufficient or inadequate;

		●	our
                                         drug candidates may have undesirable side effects or other unexpected characteristics,
                                         causing us or our investigators, regulators or institutional review boards to suspend
                                         or terminate the trials; and

		●	regulators
                                         may revise the requirements for approving our drug candidates, or such requirements may
                                         not be as we anticipate.

 

If
we are required to conduct additional clinical trials or other testing of our drug candidates beyond those that we currently contemplate,
if we are unable to successfully complete clinical trials of our drug candidates or other testing, if the results of these trials
or tests are not positive or are only modestly positive or if there are safety concerns, we may:

 

		●	be
                                         delayed in obtaining marketing approval for our drug candidates;

		●	not
                                         obtain marketing approval at all, which would seriously impair our viability;

		●	obtain
                                         marketing approval in some countries and not in others;

		●	obtain
                                         approval for indications or patient populations that are not as broad as we intend or
                                         desire;

		●	obtain
                                         approval with labeling that includes significant use or distribution restrictions or
                                         safety warnings;

		●	be
                                         subject to additional post-marketing testing requirements; or

		●	have
                                         the product removed from the market after obtaining marketing approval.

    5

     

    

We
plan to initiate pre-clinical studies of BXT-25. However, we cannot provide any assurance that we will successfully initiate or
complete those planned trials and be able to initiate any other clinical trials for BXT-25 or any of our future drug candidates.
The results of our clinical trials could yield negative or ambiguous results. Such results could adversely affect future development
plans, collaborations and our stock price.

 

Our
product development costs will increase if we experience delays in clinical testing or marketing approvals. We do not know whether
any of our preclinical studies or clinical trials will begin as planned, will need to be restructured or will be completed on
schedule, or at all. Significant preclinical or clinical trial delays also could shorten any periods during which we may have
the exclusive right to commercialize our drug candidates or allow our competitors to bring products to market before we do, potentially
impairing our ability to successfully commercialize our drug candidates and harming our business and results of operations.

 

A
fast track, breakthrough therapy or other designation by the FDA may not actually lead to a faster development or regulatory review
or approval process.

 

We
may seek fast track, breakthrough therapy or similar designation for our drug candidates. If a drug is intended for the treatment
of a serious or life-threatening condition and the drug demonstrates the potential to address unmet medical needs for this condition,
the drug sponsor may apply for FDA fast track designation. The FDA has broad discretion whether or not to grant this designation,
and even if we believe a particular drug candidate is eligible for this designation, we cannot assure you that the FDA would decide
to grant it. Even if we do receive fast track designation, we may not experience a faster development process, review or approval
compared to conventional FDA procedures. The FDA may withdraw fast track designation if it believes that the designation is no
longer supported by data from our clinical development program.

 

Additionally,
we may in the future seek a breakthrough therapy designation for some of our product candidates that reach the regulatory review
process. A breakthrough therapy is a drug candidate that is intended, alone or in combination with one or more other drugs, to
treat a serious or life-threatening disease or condition, and that, as indicated by preliminary clinical evidence, may demonstrate
substantial improvement over existing therapies on one or more clinically significant endpoints, such as substantial treatment
effects observed early in clinical development. Drugs designated as breakthrough therapies by the FDA are eligible for accelerated
approval and increased interaction and communication with the FDA designed to expedite the development and review process.

 

As
with fast-track designation, designation as a breakthrough therapy is within the discretion of the FDA. Accordingly, even if we
believe one of our product candidates meets the criteria for designation as a breakthrough therapy, the FDA may disagree and may
determine not to grant such a designation. Even if we receive a breakthrough therapy designation for any of our product candidates,
the designation may not result in a materially faster development process, review or approval compared to conventional FDA procedures.
Further, obtaining a breakthrough therapy designation does not assure or increase the likelihood of the FDA’s approval of
the applicable product candidate. In addition, even if one or more of our product candidates qualifies as a breakthrough therapy,
the FDA could later determine that those products no longer meet the conditions for the designation or determine not to shorten
the time period for FDA review or approval.

 

We
will rely on third parties to conduct our clinical trials, and those third parties may not perform satisfactorily, including failing
to meet deadlines for the completion of such trials.

 

We
intend to use third-party clinical research organizations, or CROs, to conduct our planned clinical trials and do not plan to
independently conduct clinical trials of BXT-25 or any future drug candidates. We rely on third parties, such as CROs, clinical
data management organizations, medical institutions and clinical investigators, to conduct and manage our clinical trials. These
agreements might terminate for a variety of reasons, including a failure to perform by the third parties. If we need to enter
into alternative arrangements, that would delay our product development activities.

 

Our
reliance on these third parties for research and development activities reduces our control over these activities but does
not relieve us of our responsibilities. For example, we remain responsible for ensuring that each of our clinical trials is
conducted in accordance with the general investigational plan and protocols for the trial. Moreover, the FDA requires us to
comply with regulatory standards, commonly referred to as good clinical practices, or GCPs, for conducting, recording and
reporting the results of clinical trials to assure that data and reported results are credible and accurate and that the
rights, integrity and confidentiality of trial participants are protected. Other countries’ regulatory agencies also
have requirements for clinical trials with which we must comply. We also are required to register ongoing clinical trials and
post the results of completed clinical trials on a government-sponsored database, ClinicalTrials.gov, within specified
timeframes. Failure to do so can result in fines, adverse publicity and civil and criminal sanctions.

    6

     

    

Furthermore,
these third parties may also have relationships with other entities, some of which may be our competitors. If these third parties
do not successfully carry out their contractual duties, meet expected deadlines or conduct our clinical trials in accordance with
regulatory requirements or our stated protocols, we will not be able to obtain, or may be delayed in obtaining, marketing approvals
for our drug candidates and will not be able to, or may be delayed in our efforts to, successfully commercialize our drug candidates.

 

We
also expect to rely on other third parties to store and distribute drug supplies for our clinical trials. Any performance failure
on the part of our distributors could delay clinical development or marketing approval of our drug candidates or commercialization
of our products, producing additional losses and depriving us of potential product revenue.

 

If
we experience delays or difficulties in the enrollment of patients in clinical trials, our receipt of necessary regulatory approvals
could be delayed or prevented.

 

We
may not be able to initiate or continue clinical trials for our drug candidates if we are unable to locate and enroll a sufficient
number of eligible patients to participate in these trials as required by the FDA or similar regulatory authorities outside the
United States, such as the EMA. In addition, some of our competitors have ongoing clinical trials for drug candidates that treat
the same indications as our drug candidates, and patients who would otherwise be eligible for our clinical trials may instead
enroll in clinical trials of our competitors’ drug candidates.

 

Patient
enrollment is affected by other factors including:

 

		●	the
                                         severity of the disease under investigation;

		●	the
                                         patient eligibility criteria for the study in question;

		●	the
                                         perceived risks and benefits of the drug candidate under study;

		●	the
                                         efforts to facilitate timely enrollment in clinical trials;

		●	our
                                         payments for conducting clinical trials;

		●	the
                                         patient referral practices of physicians;

		●	the
                                         ability to monitor patients adequately during and after treatment; and

		●	the
                                         proximity and availability of clinical trial sites for prospective patients.

 

We
are unable to forecast with precision our ability to enroll patients. Our inability to enroll a sufficient number of patients
for our clinical trials would result in significant delays and could require us to abandon one or more clinical trials altogether.
Enrollment delays in our clinical trials may result in increased development costs for our drug candidates, which would cause
the value of our company to decline and limit our ability to obtain additional financing.

 

If
serious adverse or unacceptable side effects are identified during the development of our drug candidate or we observe limited
efficacy, we may need to abandon or limit our development of some of our drug candidate.

 

If
our drug candidate is associated with undesirable side effects in clinical trials, have limited efficacy or have characteristics
that are unexpected, we may need to abandon their development or limit development to more narrow uses or subpopulations in which
the undesirable side effects or other characteristics are less prevalent, less severe or more acceptable from a risk-benefit perspective.
We have not commenced pre-clinical trials of BXT-25, which even if it proves successful, may later be found to cause side effects
that will prevent further development of the compounds. 

    7

     

    

Even
if our drug candidate receives marketing approval, it may fail to achieve the degree of market acceptance by physicians, patients,
third-party payers and others in the medical community necessary for commercial success.

 

Even
if our drug candidate receives marketing approval, it may nonetheless fail to gain sufficient market acceptance by
physicians, patients, third-party payers and others in the medical community. If our drug candidate does not achieve an
adequate level of acceptance, we may not generate significant product revenues and we may not become profitable. The degree
of market acceptance of our drug candidate, if approved for commercial sale, will depend on a number of factors,
including:

 

		●	their
                                         efficacy, safety and other potential advantages compared to alternative treatments;

		●	our
                                         ability to offer them for sale at competitive prices;

		●	their
                                         convenience and ease of administration compared to alternative treatments;

		●	the
                                         willingness of the target patient population to try new therapies and of physicians to
                                         prescribe these therapies;

		●	the
                                         strength of marketing and distribution support;

		●	the
                                         availability of third-party coverage and adequate reimbursement for our drug candidate;

		●	the
                                         prevalence and severity of their side effects;

		●	any
                                         restrictions on the use of our products together with other medications;

		●	interactions
                                         of our products with other medicines patients are taking; and

		●	inability
                                         of certain types of patients to take our products.

 

If
we are unable to address and overcome these and similar concerns, our business and results of operations could be substantially
harmed.

 

If
we are unable to establish effective sales, marketing and distribution capabilities or enter into agreements with third parties
with such capabilities, we may not be successful in commercializing our drug candidate if and when they are approved.

 

We
do not have a sales or marketing infrastructure and have limited experience in the sale, marketing or distribution of our products.
To achieve commercial success for any product for which we obtain marketing approval, we will need to successfully establish and
maintain relationships with third parties to perform sales and marketing functions.

 

Factors
that may inhibit our efforts to commercialize our products on our own include:

 

		●	our
                                         inability to recruit, train and retain adequate numbers of effective sales and marketing
                                         personnel;

		●	the
                                         inability of sales personnel to obtain access to or educate physicians on the benefits
                                         of our products;

		●	the
                                         lack of complementary products to be offered by sales personnel, which may put us at
                                         a competitive disadvantage lines;

		●	unforeseen
                                         costs and expenses associated with creating an independent sales and marketing organization;

		●	inability
                                         to obtain sufficient coverage and reimbursement from third-party payors and governmental
                                         agencies; and

		●	inability
                                         to obtain sufficient coverage and reimbursement from third-party payors and governmental
                                         agencies.

 

We
will rely on third parties to sell, market and distribute our drug candidate. We may not be successful in entering into, or maintaining,
arrangements with such third parties or may be unable to do so on terms that are favorable to us. In addition, our product revenues
and our profitability, if any, may be lower if we rely on third parties for these functions than if we were to market, sell and
distribute any products that we develop ourselves. We likely will have little control over such third parties, and any of them
may fail to devote the necessary resources and attention to sell and market our products effectively. If we do not establish sales,
marketing and distribution capabilities successfully, either on our own or in collaboration with third parties, we will not be
successful in commercializing our drug candidate.

 

If
we are unable to convince physicians as to the benefits of our proposed products, we may incur delays or additional expense in
our attempt to establish market acceptance.

 

Broad
use of our proposed products may require physicians to be informed regarding our proposed products and the intended benefits.
Inability to carry out this physician education process may adversely affect market acceptance of our proposed products. We may
be unable to timely educate physicians regarding our proposed products in sufficient numbers to achieve our marketing plans or
to achieve product acceptance. Any delay in physician education may materially delay or reduce demand for our products. In addition,
we may expend significant funds toward physician education before any acceptance or demand for our proposed products is created,
if at all.

    8

     

    

We
face substantial competition, which may result in others discovering, developing or commercializing competing products before
or more successfully than we do.

 

The
development and commercialization of new drug products is highly competitive. We face competition with respect to BXT-25 and will
face competition with respect to any drug candidates that we may seek to develop or commercialize in the future, from major pharmaceutical
companies, specialty pharmaceutical companies and biotechnology companies worldwide. There are a number of large pharmaceutical
and biotechnology companies that currently market and sell products or are pursuing the development of products in the field of
oxygen therapeutics for the treatment of a variety of conditions and any of such products may target the stroke. Potential competitors
also include academic institutions, government agencies and other public and private research organizations that conduct research,
seek patent protection and establish collaborative arrangements for research, development, manufacturing and commercialization.

 

A
substantial number of the companies against which we are competing or against which we may compete in the future have significantly
greater financial resources, established presence in the market and expertise in research and development, manufacturing, preclinical
testing, conducting clinical trials, obtaining regulatory approvals and marketing approved products than we do. Mergers and acquisitions
in the pharmaceutical and biotechnology industries may result in even more resources being concentrated among a smaller number
of our competitors.

 

Smaller
and other early-stage companies may also prove to be significant competitors, particularly through collaborative arrangements
with large and established companies. These third parties compete with us in recruiting and retaining qualified scientific, sales
and marketing and management personnel, establishing clinical trial sites and patient registration for clinical trials, as well
as in acquiring technologies complementary to, or necessary for, our programs.

 

Our
commercial opportunity could be reduced or eliminated if our competitors develop and commercialize products that are more effective,
have fewer or less severe side effects, are more convenient or are less expensive than any products that we may develop. Our competitors
also may obtain FDA or other regulatory approval for their products more rapidly than we may obtain approval for ours, which could
result in our competitors establishing a strong market position before we are able to enter the market. In addition, our ability
to compete may be affected in many cases by insurers or other third-party payors seeking to encourage the use of generic products.

 

We
may be unable to compete in our target marketplaces, which could impair our ability to generate revenues, thus causing a material
adverse impact on our results of operations.

 

Our
success depends upon our ability to retain key executives and to attract, retain, and motivate qualified personnel, and the loss
of these persons could adversely affect our operations and results.

 

We
are highly dependent on the principal members of our management, scientific and clinical team, including Dr. David Platt, our
Chairman, President and Chief Executive Officer and Ola Soderquist, our Chief Financial Officer. We don’t have a “key
person” insurance for any of Dr. Platt or Mr. Soderquist and even if such policies were to be obtained, such insurance policies
may not adequately compensate us for the loss of their services.

 

The
loss of the services of any of our executive officers or of any members of our scientific and medical advisory board, could impede
the achievement of our research, development and commercialization objectives and seriously harm our ability to successfully implement
our business strategy. Furthermore, replacing executive officers and key employees may be difficult and may take an extended period
of time because of the limited number of individuals in our industry with the breadth of skills and experience required to successfully
develop, gain regulatory approval of and commercialize products. Competition to hire from this limited pool is intense, and we
may be unable to hire, train, retain or motivate these key personnel on acceptable terms given the competition among numerous
pharmaceutical and biotechnology companies for similar personnel. We also experience competition for the hiring of scientific
and clinical personnel from universities and research institutions. In addition, we rely and expect to continue to rely to a significant
degree on consultants and advisors, including scientific and clinical advisors, to assist us in formulating our research and development
and commercialization strategy. Our consultants and advisors may be employed by employers other than us and may have commitments
under consulting or advisory contracts with other entities that may limit their availability to us. If we are unable to continue
to attract and retain high quality personnel, our ability to pursue our growth strategy will be limited.

    9

     

    

Our
lack of operating experience may cause us difficulty in managing our growth which could lead to our inability to implement our
business plan.

 

We
have limited experience in marketing and the selling of pharmaceutical products. Any growth will require us to expand our management
and our operational and financial systems and controls. If we are unable to do so, our business and financial condition would
be materially harmed. If rapid growth occurs, it may strain our operational, managerial and financial resources.

 

We
will depend on third parties to manufacture and market our products and to design trial protocols, arrange for and monitor the
clinical trials, and collect and analyze data.

 

We
do not have, and do not now intend to develop, facilities for the manufacture of any of our products for clinical or commercial
production. In addition, we are not a party to any long-term agreement with any of our suppliers, and accordingly, we have our
products manufactured on a purchase-order basis from one of two primary suppliers. We will need to develop relationships with
manufacturers and enter into collaborative arrangements with licensees or have others manufacture our products on a contract basis.
We expect to depend on such collaborators to supply us with products manufactured in compliance with standards imposed by the
FDA and foreign regulators.

 

Moreover,
as we develop products eligible for clinical trials, we contract with independent parties to design the trial protocols, arrange
for and monitor the clinical trials, collect data and analyze data. In addition, certain clinical trials for our products may
be conducted by government-sponsored agencies and will be dependent on governmental participation and funding. Our dependence
on independent parties and clinical sites involves risks including reduced control over the timing and other aspects of our clinical
trials.

 

We
are exposed to product liability, pre-clinical and clinical liability risks which could place a substantial financial burden upon
us, should we be sued.

 

Our
business exposes us to potential product liability and other liability risks that are inherent in the testing, manufacturing and
marketing of pharmaceutical formulations and products. Such claims may be asserted against us. In addition, the use in our clinical
trials of pharmaceutical formulations and products that our potential collaborators may develop and the subsequent sale of these
formulations or products by us or our potential collaborators may cause us to bear a portion of or all product liability risks.
A successful liability claims, or series of claims brought against us could have a material adverse effect on our business, financial
condition and results of operations.

 

Since
we do not currently have any FDA-approved products or other formulations, we do not currently have any other product liability
insurance covering commercialized products. We may not be able to obtain or maintain adequate product liability insurance, when
needed, on acceptable terms, if at all, or such insurance may not provide adequate coverage against our potential liabilities.
Furthermore, our potential partners with whom we intend to have collaborative agreements, or our future licensees may not be willing
to indemnify us against these types of liabilities and may not themselves be sufficiently insured or have sufficient liquidity
to satisfy any product liability claims. Claims or losses in excess of any product liability insurance coverage that may be obtained
by us could have a material adverse effect on our business, financial condition and results of operations.

 

In
addition, we may be unable to obtain or to maintain clinical trial liability insurance on acceptable terms, if at all. Any inability
to obtain and/or maintain insurance coverage on acceptable terms could prevent or limit the commercialization of any products
we develop.

 

If
users of our proposed products are unable to obtain adequate reimbursement from third-party payers or if new restrictive legislation
is adopted, market acceptance of our proposed products may be limited, and we may not achieve revenues.

 

The
continuing efforts of government and insurance companies, health maintenance organizations and other payers of healthcare
costs to contain or reduce costs of health care may affect our future revenues and profitability, and the future revenues and
profitability of our potential customers, suppliers and collaborative partners and the availability of capital. For example,
in certain international markets, pricing or profitability of prescription pharmaceuticals is subject to government control.
In the U.S., given recent federal and state government initiatives directed at lowering the total cost of health care, the
U.S. Congress and state legislatures will likely continue to focus on health care reform, the cost of prescription
pharmaceuticals and on the reform of the Medicare and Medicaid systems. While we cannot predict whether any such legislative
or regulatory proposals will be adopted, the announcement or adoption of such proposals could materially harm our business,
financial condition and results of operations.

    10

     

    

Our
ability to commercialize our proposed products will depend in part on the extent to which appropriate reimbursement levels for
the cost of our proposed formulations and products and related treatments are obtained by governmental authorities, private health
insurers and other organizations, such as HMOs. Third-party payers are increasingly challenging the prices charged for medical
drugs and services. Also, the trend toward managed health care in the U.S. and the concurrent growth of organizations such as
HMOs, which could control or significantly influence the purchase of health care services and drugs, as well as legislative proposals
to reform health care or reduce government insurance programs, may all result in lower prices for or rejection of our products.

 

There
are risks associated with our reliance on third parties for marketing, sales and distribution infrastructure and channels.

 

We
intend to enter into agreements with commercial partners to engage in sales, marketing and distribution efforts around our products
in development. We may be unable to establish or maintain these third-party relationships, or establish new relationships, on
a commercially reasonable basis, if at all. In addition, these third parties may have similar or more established relationships
with our competitors. If we do not enter into or maintain relationships with third parties for the sales and marketing of our
proposed products, we will need to develop our own sales and marketing capabilities. Furthermore, even if engaged, these distributors
may:

 

		●	fail
                                         to satisfy financial or contractual obligations to us;

		●	fail
                                         to adequately market our products;

		●	cease
                                         operations with little or no notice to us; or

		●	offer,
                                         design, manufacture or promote competing formulations or products.

 

If
we fail to develop sales, marketing and distribution channels, we could experience delays in generating sales and incur increased
costs, which would harm our financial results.

 

We
will be subject to risks if we seek to develop our own sales force.

 

If
we choose at some point to develop our own sales and marketing capability, our experience in developing a fully integrated commercial
organization is limited. If we choose to establish a fully integrated commercial organization, we will likely incur substantial
expenses in developing, training and managing such an organization. We may be unable to build a fully integrated commercial organization
on a cost-effective basis, or at all. Any such direct marketing and sales efforts may prove to be unsuccessful. In addition, we
will compete with many other companies that currently have extensive and well-funded marketing and sales operations. Our marketing
and sales efforts may be unable to compete against these other companies. We may be unable to establish a sufficient sales and
marketing organization on a timely basis, if at all.

 

Risks
Related to Our Industry

 

We
will need regulatory approvals to commercialize our products as drugs.

 

In
offering BXT-25, or any other product as a drug, we are required to obtain approval from the FDA to sell our products in the
U.S. and from foreign regulatory authorities to sell our products in other countries. The FDA’s review and approval
process is lengthy, expensive and uncertain. Extensive pre-clinical and clinical data and supporting information must be
submitted to the FDA for each indication for each product candidate to secure FDA approval. Before receiving FDA clearance to
market our proposed products, we will have to demonstrate that our products are safe and effective on the patient population
and for the diseases that are to be treated. Clinical trials, manufacturing and marketing of drugs are subject to the
rigorous testing and approval process of the FDA and equivalent foreign regulatory authorities. The Federal Food, Drug and
Cosmetic Act and other federal, state and foreign statutes and regulations govern and influence the testing, manufacture,
labeling, advertising, distribution and promotion of drugs and medical devices. As a result, regulatory approvals can take a
number of years or longer to accomplish and require the expenditure of substantial financial, managerial and other resources.
The FDA could reject an application or require us to conduct additional clinical or other studies as part of the regulatory
review process. Delays in obtaining or failure to obtain FDA approvals would prevent or delay the commercialization of our
product candidates, which would prevent, defer or decrease our receipt of revenues. In addition, if we receive initial
regulatory approval, our product candidates will be subject to extensive and rigorous ongoing domestic and foreign government
regulation.

    11

     

    

Data
obtained from clinical trials are susceptible to varying interpretations, which could delay, limit or prevent regulatory clearances.

 

Data
we obtain from our planned pre-clinical studies and clinical trials will not necessarily predict the results that will be obtained
from later pre-clinical studies and clinical trials. Moreover, pre-clinical and clinical data is susceptible to varying interpretations,
which could delay, limit or prevent regulatory approval. A number of companies in the pharmaceutical industry have suffered significant
setbacks in advanced clinical trials, even after promising results in earlier trials. The failure to adequately demonstrate the
safety and effectiveness of a proposed formulation or product under development could delay or prevent regulatory clearance of
the potential drug, resulting in delays to commercialization, and could materially harm our business. Our clinical trials may
not demonstrate sufficient levels of safety and efficacy necessary to obtain the requisite regulatory approvals for our drugs,
and thus our proposed drugs may not be approved for marketing.

 

Our
competitive position depends on protection of our intellectual property.

 

Development
and protection of our intellectual property are critical to our business. All of our intellectual property has been invented and/or
developed or co-developed by Dr. David Platt; and other intellectual property that is important to the development of BXT-25 is
in the public domain. If we do not adequately protect our intellectual property, or if competitors develop technologies incorporating
the same or similar technologies that already are in the public domain, those competitors may be able to practice our technologies.
Our success depends in part on our ability to obtain patent protection for our products or processes in the U.S. and other countries,
protect trade secrets, and prevent others from infringing on our proprietary rights.

 

Since
patent applications in the U.S. are maintained in secrecy for at least portions of their pendency periods (published on U.S. patent
issuance or, if earlier, 18 months from earliest filing date for most applications) and since other publication of discoveries
in the scientific or patent literature often lags behind actual discoveries, we cannot be certain that we are or will be the first
to make the inventions to be covered by our patent applications. The patent position of biopharmaceutical firms generally is highly
uncertain and involves complex legal and factual questions. The U.S. Patent and Trademark Office has not established a consistent
policy regarding the breadth of claims that it will allow in biotechnology patents.

 

The
patent applications we file, including applications that will follow the filing of Provisionals, may not issue as patents or the
claims of any issued patents may not afford meaningful protection for our technologies or products. In addition, patents issued
to us or to any future licensors may be challenged and subsequently narrowed, invalidated or circumvented. Patent litigation is
widespread in the biotechnology industry and could harm our business. Litigation might be necessary to protect our patent position
or to determine the scope and validity of third-party proprietary rights, and we may not have the required resources to pursue
such litigation or to protect our patent rights.

 

Although
we will require our scientific and technical employees and consultants to enter into broad assignment of inventions agreements,
and all of our employees, consultants and corporate partners with access to proprietary information to enter into confidentiality
agreements, these agreements may not be honored. Currently, we do not have any scientific or technical employees.

 

Products
we develop could be subject to infringement claims asserted by others.

 

We
cannot assure that products based on our patents or intellectual property that we license from others will not be challenged by
a third-party claiming infringement of its proprietary rights. If we were not able to successfully defend patents that may be
issued to us, that we may acquire, or that we may license in the future, we may have to pay substantial damages, possibly including
treble damages, for past infringement.

    12

     

    

We
face intense competition in the biotechnology and pharmaceutical industries.

 

The
biotechnology and pharmaceutical industries are intensely competitive. We face direct competition from U.S. and foreign companies
focusing on pharmaceutical products, which are rapidly evolving. Our competitors include major multinational pharmaceutical and
chemical companies, specialized biotechnology firms and universities and other research institutions. Many of these competitors
have greater financial and other resources, larger research and development staffs and more effective marketing and manufacturing
organizations, than we do. In addition, academic and government institutions are increasingly likely to enter into exclusive licensing
agreements with commercial enterprises, including our competitors, to market commercial products based on technology developed
at such institutions. Our competitors may succeed in developing or licensing technologies and products that are more effective
or less costly than ours or succeed in obtaining FDA or other regulatory approvals for product candidates before we do. Acquisitions
of, or investments in, competing pharmaceutical or biotechnology companies by large corporations could increase such competitors’
financial, marketing, manufacturing and other resources.

 

The
market for our proposed products is rapidly changing and competitive, and new drugs and new treatments which may be developed
by others could impair our ability to maintain and grow our business and remain competitive.

 

The
pharmaceutical and biotechnology industries are subject to rapid and substantial technological change. Developments by others
may render our proposed products noncompetitive or obsolete, or we may be unable to keep pace with technological developments
or other market factors. Technological competition from pharmaceutical and biotechnology companies, universities, governmental
entities and others diversifying into the field is intense and is expected to increase.

 

As
a pre-revenue company engaged in the development of drug technologies, our resources are limited, and we may experience technical
challenges inherent in such technologies. Competitors have developed or are in the process of developing technologies that are,
or in the future may be, the basis for competition. Some of these technologies may have an entirely different approach or means
of accomplishing similar therapeutic effects compared to our proposed products. Our competitors may develop drugs that are safer,
more effective or less costly than our proposed products and, therefore, present a serious competitive threat to us.

 

The
potential widespread acceptance of therapies that are alternatives to ours may limit market acceptance of our proposed products,
even if commercialized. Many of our targeted diseases and conditions can also be treated by other medication. These treatments
may be widely accepted in medical communities and have a longer history of use. The established use of these competitive drugs
may limit the potential for our technologies, formulations and products to receive widespread acceptance if commercialized.

 

Health
care cost containment initiatives and the growth of managed care may limit our returns.

 

Our
ability to commercialize our products successfully may be affected by the ongoing efforts of governmental and third-party payers
to contain the cost of health care. These entities are challenging prices of health care products and services, denying or limiting
coverage and reimbursement amounts for new therapeutic products, and for FDA-approved products considered experimental or investigational,
or which are used for disease indications without FDA marketing approval.

 

Even
if we succeed in bringing any products to the market, they may not be considered cost-effective and third-party reimbursement
might not be available or sufficient. If adequate third-party coverage is not available, we may not be able to maintain price
levels sufficient to realize an appropriate return on our investment in research and product development. In addition, legislation
and regulations affecting the pricing of pharmaceuticals may change in ways adverse to us before or after any of our proposed
products are approved for marketing.

    13

     

    

Risks
Related to Our Intellectual Property

 

If
we are unable to obtain and maintain patent protection for our products, or if the scope of the patent protection obtained is
not sufficiently broad, competitors could develop and commercialize products similar or identical to ours, and our ability to
successfully commercialize our products may be impaired.

 

Our
plan for the development of BXT-25 is based in part on a technology developed by the Biopure Corporation which separates hemoglobin
from red blood cells. Biopure filed for bankruptcy in 2009 and the technology we use from Biopure is in the public domain. We
plan to apply our proprietary chemistry to break down and augment a bovine hemoglobin molecule producing a co-polymer-based molecule
we call BXT-25. We face competitors and other entities who are engaged in the further development of some or all of that public-domain
technology for the purpose of creating products that may compete directly with our products.

 

Among
such competitors and other entities is Boston Therapeutics, Inc. (OTCQB: BTHE). Our chairman, David Platt, was founder, and until
April 1, 2015, Chief Executive Officer of Boston Therapeutics; and that entity is a pharmaceutical company focused on developing,
manufacturing and commercializing novel compounds based on complex carbohydrate chemistry to address unmet medical needs in diabetes.
According to its website, products Boston Therapeutics seeks to develop include an anti-necrosis glyco-protein based therapeutic
agent that consists of a stabilized glycoprotein composition containing oxygen-rechargeable iron, targeting both human and animal
tissues and organ systems deprived of oxygen and in need of metabolic support. The Boston Therapeutic development efforts are,
like the efforts of the Company, based in part on Biopure technology that is now in the public domain. While Boston Therapeutics
is focused on medical conditions that are different from the conditions that will be addressed by the Company, and while the Company’s
proprietary technology is very different from the technology under development at Boston Therapeutics at the time of Dr. Platt’s
departure from that entity, a refocus of Boston Therapeutics to treat conditions that are central to the Company’s focus
may make it a direct competitor.

 

Currently
there are four drugs candidates to treat a stroke. Abciximab from Eli Lilly is a platelet aggregation inhibitor. Clinical trials
show little advantage over placebos and could lead to dangerous side effects, including more bleeding in patients. Cerovive from
AstraZeneca is a Nitrone-based neuro protectant currently in phase III clinical trials which shows no significant benefit over
placebos with respect to changes in neurological impairment as measured by the national institute of health stroke scale. Candesartan,
from AstraZeneca, is an angiotensin receptor blocker which was used to control blood pressure. Its efficacy in stroke patients
still must be proven. Ancod from Knoll Pharmaceuticals is an anti-coagulant that acts by breaking down the fibrinogen. It increases
the risk of hemorrhage similar to those associated with tPA.

 

Our
success depends in large part on our ability to obtain and maintain patent and other intellectual property protection in the United
States and other countries with respect to our proprietary products. We seek to protect our proprietary position by filing patent
applications in the United States and abroad related to our drug candidates.

 

The
patent prosecution process is expensive and time-consuming, and we may not be able to file and prosecute all necessary or desirable
patent applications at a reasonable cost, in a timely manner, or in all jurisdictions. It is also possible that we will fail to
identify patentable aspects of our research and development output before it is too late to obtain patent protection.

 

The
patent position of biotechnology and pharmaceutical companies generally is highly uncertain, involves complex legal and
factual questions and has in recent years been the subject of much litigation. In addition, the laws of foreign countries may
not protect our rights to the same extent as the laws of the United States and we may fail to seek or obtain patent
protection in all major markets. For example, European patent law restricts the patentability of methods of treatment of the
human body more than United States law does. Publications of discoveries in the scientific literature often lag behind the
actual discoveries, and patent applications in the United States and other jurisdictions are typically not published until 18
months after filing, or in some cases not at all. Therefore, we cannot know with certainty whether we were the first to make
the inventions claimed in our owned patents or pending patent applications, or that we were the first to file for patent
protection of such inventions, nor can we know whether those from whom we license patents were the first to make the
inventions claimed or were the first to file. As a result, the issuance, scope, validity, enforceability and commercial value
of our patent rights are highly uncertain. Our pending and future patent applications may not result in patents being issued
which protect our technology or products, in whole or in part, or which effectively prevent others from commercializing
competitive technologies and products. Changes in either the patent laws or interpretation of the patent laws in the United
States and other countries may diminish the value of our patents or narrow the scope of our patent protection.

    14

     

    

Recent
patent reform legislation could increase the uncertainties and costs surrounding the prosecution of our patent applications and
the enforcement or defense of our issued patents. On September 16, 2011, the Leahy-Smith America Invents Act, or the Leahy-Smith
Act, was signed into law. The Leahy-Smith Act includes a number of significant changes to United States patent law. These include
provisions that affect the way patent applications are prosecuted and may also affect patent litigation. The U.S. Patent and Trademark
Office, or U.S. PTO, recently developed new regulations and procedures to govern administration of the Leahy-Smith Act, and many
of the substantive changes to patent law associated with the Leahy-Smith Act, and in particular, the first to file provisions,
only became effective on March 16, 2013. Accordingly, it is not clear what, if any, impact the Leahy-Smith Act will have on the
operation of our business. However, the Leahy-Smith Act and its implementation could increase the uncertainties and costs surrounding
the prosecution of our patent applications and the enforcement or defense of our issued patents, all of which could have a material
adverse effect on our business and financial condition.

 

Moreover,
we may be subject to a third-party pre-issuance submission of prior art to the U.S. PTO, or become involved in opposition, derivation,
reexamination, inter partes review, post-grant review or interference proceedings challenging our patent rights or the
patent rights of others. An adverse determination in any such submission, proceeding or litigation could reduce the scope of,
or invalidate our patent rights, allow third parties to commercialize our technology or products and compete directly with us,
without payment to us, or result in our inability to manufacture or commercialize products without infringing third-party patent
rights. In addition, if the breadth or strength of protection provided by our patents and patent applications is threatened, it
could dissuade companies from collaborating with us to license, develop or commercialize current or future drug candidates.

 

Even
if our patent applications issue as patents, they may not issue in a form that will provide us with any meaningful protection,
prevent competitors from competing with us or otherwise provide us with any competitive advantage. Our competitors may be able
to circumvent our owned or licensed patents by developing similar or alternative technologies or products in a non-infringing
manner.

 

The
issuance of a patent is not conclusive as to its inventorship, scope, validity or enforceability, and our patents may be challenged
in the courts or patent offices in the United States and abroad. Such challenges may result in loss of exclusivity or freedom
to operate or in patent claims being narrowed, invalidated or held unenforceable, in whole or in part, which could limit our ability
to stop others from using or commercializing similar or identical products, or limit the duration of the patent protection of
our products. Given the amount of time required for the development, testing and regulatory review of new drug candidates, patents
protecting such candidates might expire before or shortly after such candidates are commercialized. As a result, our patent portfolio
may not provide us with sufficient rights to exclude others from commercializing products similar or identical to ours.

 

We
may become involved in lawsuits to protect or enforce our patents or other intellectual property, which could be expensive, time-consuming
and ultimately unsuccessful.

 

Competitors
may infringe our issued patents or other intellectual property. To counter infringement or unauthorized use, we may be required
to file infringement claims, which can be expensive and time-consuming. Any claims we assert against perceived infringers could
provoke these parties to assert counterclaims against us alleging that we infringe their intellectual property. In addition, in
a patent infringement proceeding, a court may decide that a patent of ours is invalid or unenforceable, in whole or in part, construe
the patent’s claims narrowly or refuse to stop the other party from using the technology at issue on the grounds that our
patents do not cover the technology in question. An adverse result in any litigation proceeding could put one or more of our patents
at risk of being invalidated or interpreted narrowly, which could adversely affect us.

    15

     

    

Third
parties may initiate legal proceedings alleging that we are infringing their intellectual property rights, the outcome of which
would be uncertain and could have a material adverse effect on the success of our business.

 

Our
commercial success depends upon our ability to develop, manufacture, market and sell our drug candidates without infringing the
proprietary rights of third parties. There is considerable intellectual property litigation in the biotechnology and pharmaceutical
industries. While no such litigation has been brought against us and we have not been held by any court to have infringed a third
party’s intellectual property rights, we cannot guarantee that our products or use of our products do not infringe third-party
patents. It is also possible that we have failed to identify relevant third-party patents or applications. For example, applications
filed before November 29, 2000 and certain applications filed after that date that will not be filed outside the United States
remain confidential until patents issue. Patent applications in the United States and elsewhere are published approximately 18
months after the earliest filing, which is referred to as the priority date. Therefore, patent applications covering our products
or technology could have been filed by others without our knowledge. Additionally, pending patent applications which have been
published can, subject to certain limitations, be later amended in a manner that could cover our technologies, our products or
the use of our products.

 

We
may become party to, or threatened with, future adversarial proceedings or litigation regarding intellectual property rights with
respect to our products and technology, including inter parties review, interference, or derivation proceedings before the U.S.
PTO and similar bodies in other countries. Third parties may assert infringement claims against us based on existing intellectual
property rights and intellectual property rights that may be granted in the future.

 

If
we are found to infringe a third party’s intellectual property rights, we could be required to obtain a license from such
third party to continue developing and marketing our products. However, we may not be able to obtain any required license on commercially
reasonable terms or at all. Even if we were able to obtain a license, it could be non-exclusive, thereby giving our competitors
access to the same technologies licensed to us. We could be forced, including by court order, to cease commercializing the infringing
technology or product. In addition, we could be found liable for monetary damages, including treble damages and attorneys’
fees if we are found to have willfully infringed a patent. A finding of infringement could prevent us from commercializing our
drug candidates or force us to cease some of our business operations, which could materially harm our business. Claims that we
have misappropriated the confidential information or trade secrets of third parties could have a similar negative impact on our
business.

 

Obtaining
and maintaining our patent protection depends on compliance with various procedural, document submission, fee payment and other
requirements imposed by governmental patent agencies, and our patent protection could be reduced or eliminated for noncompliance
with these requirements.

 

Periodic
maintenance fees on any issued patent are due to be paid to the U.S. PTO and foreign patent agencies in several stages over the
lifetime of the patent. The U.S. PTO and various foreign governmental patent agencies require compliance with a number of procedural,
documentary, fee payment and other similar provisions during the patent application process. While an inadvertent lapse can in
many cases be cured by payment of a late fee or by other means in accordance with the applicable rules, there are situations in
which noncompliance can result in abandonment or lapse of the patent or patent application, resulting in partial or complete loss
of patent rights in the relevant jurisdiction. Noncompliance events that could result in abandonment or lapse of a patent or patent
application include, but are not limited to, failure to respond to official actions within prescribed time limits, non-payment
of fees and failure to properly legalize and submit formal documents. In such an event, our competitors might be able to enter
the market, which would have a material adverse effect on our business.

 

We
may be subject to claims by third parties asserting that our employees or we have misappropriated their intellectual property,
or claiming ownership of what we regard as our own intellectual property.

 

The
employees and consultants we may hire likely will have been previously employed at universities or other biotechnology or pharmaceutical
companies, including our competitors or potential competitors. Although we will try to ensure that our employees and contractors
do not use the proprietary information or know-how of others in their work for us, we may be subject to claims that these employees
or we have used or disclosed intellectual property, including trade secrets or other proprietary information, of any such employee’s
former employer. Litigation may be necessary to defend against these claims.

    16

     

    

In
addition, while it is our policy to require our employees and contractors who may be involved in the development of intellectual
property to execute agreements assigning such intellectual property to us, we may be unsuccessful in executing such an agreement
with each party who in fact develops intellectual property that we regard as our own. Our and their assignment agreements may
not be self-executing or may be breached, and we may be forced to bring claims against third parties, or defend claims they may
bring against us, to determine the ownership of what we regard as our intellectual property.

 

If
we fail in prosecuting or defending any such claims, in addition to paying monetary damages, we may lose valuable intellectual
property rights or personnel. Even if we are successful in prosecuting or defending against such claims, litigation could result
in substantial costs and be a distraction to management.

 

Intellectual
property litigation could cause us to spend substantial resources and distract our personnel from their normal responsibilities.

 

Even
if resolved in our favor, litigation or other legal proceedings relating to intellectual property claims may cause us to incur
significant expenses and could distract our technical and management personnel from their normal responsibilities. In addition,
there could be public announcements of the results of hearings, motions or other interim proceedings or developments and if securities
analysts or investors perceive these results to be negative, it could have a substantial adverse effect on the price of our Common
Stock. Such litigation or proceedings could substantially increase our operating losses and reduce the resources available for
development activities or any future sales, marketing or distribution activities. We may not have sufficient financial or other
resources to conduct such litigation or proceedings adequately. Some of our competitors may be able to sustain the costs of such
litigation or proceedings more effectively than we can because of their greater financial resources. Uncertainties resulting from
the initiation and continuation of patent litigation or other proceedings could compromise our ability to compete in the marketplace.

 

If
we are unable to protect the confidentiality of our trade secrets, our business and competitive position would be harmed.

 

In
addition to seeking patents for some of our technology and drug candidates, we also intend to rely on trade secrets, including
unpatented know-how, technology and other proprietary information, to maintain our competitive position. We will seek to protect
these trade secrets, in part, by entering into non-disclosure and confidentiality agreements with parties who have access to them,
such as our employees, corporate collaborators, outside scientific collaborators, contract manufacturers, consultants, advisors
and other third parties. We also seek to enter into confidentiality and invention or patent assignment agreements with our employees
and consultants. Despite these efforts, any of these parties may breach the agreements and disclose our proprietary information,
including our trade secrets, and we may not be able to obtain adequate remedies for such breaches. Our trade secrets may also
be obtained by third parties by other means, such as breaches of our physical or computer security systems. Enforcing a claim
that a party illegally disclosed or misappropriated a trade secret is difficult, expensive and time-consuming, and the outcome
is unpredictable. In addition, some courts inside and outside the United States are less willing or unwilling to protect trade
secrets. If any of our trade secrets were to be lawfully obtained or independently developed by a competitor, we would have no
right to prevent them, or those to whom they communicate it, from using that technology or information to compete with us. If
any of our trade secrets were to be disclosed to or independently developed by a competitor, our competitive position would be
harmed.

 

Risks
Related to Ownership of Our Common Stock

 

Prior
to our currently effective public offering, we had a limited public market for our shares of Common Stock, and you may not be
able to resell our shares at or above the price you paid, or at all.

 

Prior
to our currently effective public offering, there was a limited public market for our Common Stock in the OTCQB market. On April
16, 2020, SEC ordered, pursuant to Section 12(k) of the Securities Exchange Act of 1934, that trading of BIXT is suspended for
the period April 16 through April 29, 2020. OTC Markets Group Inc. has discontinued the display of quotes on www.otcmarkets.com
for our Common Stock. We cannot assure you that an active public market for our Common Stock will develop or that the market
price of our shares will not decline below the public offering price. The public offering price of our shares may not be indicative
of prices that will prevail in the trading market following our currently effective public offering.

    17

     

    

Because
we are subject to the “Penny Stock” rules, the level of trading activity in our stock may be reduced.

 

The
Securities and Exchange Commission has adopted regulations which generally define “penny stock” to be any listed,
trading equity security that has a market price less than $5.00 per share or an exercise price of less than $5.00 per share, subject
to certain exemptions. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt
from the rules, to deliver a standardized risk disclosure document that provides information about penny stocks and the risks
in the penny stock market. The broker-dealer must also provide the customer with current bid and offer quotations for the penny
stock, the compensation of the broker-dealer and its salesperson in the transaction, and monthly account statements showing the
market value of each penny stock held in the customer’s account. In addition, the penny stock rules generally require that
prior to a transaction in a penny stock, the broker-dealer make a special written determination that the penny stock is a suitable
investment for the purchaser and receive the purchaser’s written agreement to the transaction. These disclosure requirements
may have the effect of reducing the level of trading activity in the secondary market for a stock that becomes subject to the
penny stock rules which may increase the difficulty Purchasers may experience in attempting to liquidate such securities.

 

We
do not expect to pay dividends in the foreseeable future. Any return on investment may be limited to the value of our Common Stock.

 

We
do not anticipate paying cash dividends on our Common Stock in the foreseeable future. The payment of dividends on our Common
Stock will depend on earnings, financial condition and other business and economic factors affecting it at such time as the board
of directors may consider relevant. If we do not pay dividends, our Common Stock may be less valuable because a return on your
investment will occur only if our stock price appreciates.

 

Provisions
in the Nevada Revised Statutes and our Bylaws could make it very difficult for an investor to bring any legal actions against
our directors or officers for violations of their fiduciary duties or could require us to pay any amounts incurred by our directors
or officers in any such actions.

 

Members
of our board of directors and our officers will have no liability for breaches of their fiduciary duty of care as a director or
officer, except in limited circumstances, pursuant to provisions in the Nevada Revised Statutes and our Bylaws as authorized by
the Nevada Revised Statutes. Specifically, Section 78.138 of the Nevada Revised Statutes provides that a director or officer is
not individually liable to the company or its shareholders or creditors for any damages as a result of any act or failure to act
in his or her capacity as a director or officer unless it is proven that (1) the director’s or officer’s act or failure
to act constituted a breach of his or her fiduciary duties as a director or officer and (2) his or her breach of those duties
involved intentional misconduct, fraud or a knowing violation of law. This provision is intended to afford directors and officers
protection against and to limit their potential liability for monetary damages resulting from suits alleging a breach of the duty
of care by a director or officer. Accordingly, you may be unable to prevail in a legal action against our directors or officers
even if they have breached their fiduciary duty of care. In addition, our Bylaws allow us to indemnify our directors and officers
from and against any and all costs, charges and expenses resulting from their acting in such capacities with us. This means that
if you were able to enforce an action against our directors or officers, in all likelihood, we would be required to pay any expenses
they incurred in defending the lawsuit and any judgment or settlement they otherwise would be required to pay. Accordingly, our
indemnification obligations could divert needed financial resources and may adversely affect our business, financial condition,
results of operations and cash flows, and adversely affect prevailing market prices for our Common Stock.

 

Future
sales of substantial amounts of the shares of Common Stock by existing shareholders could adversely affect the price of our Common
Stock.

 

If
our existing shareholders sell substantial amounts of the shares following our currently effective public offering, the market
price of our Common Stock could fall. Such sales by our existing shareholders might make it more difficult for us to issue new
equity or equity-related securities in the future at a time and place we deem appropriate. The shares of Common Stock offered
in our currently effective public offering will be eligible for immediate resale in the public market without restrictions. All
remaining shares, which are currently held by our existing shareholders, may be sold in the public market in the future subject
to the lock-up agreements and the restrictions contained in Rule 144 under the Securities Act. If any existing shareholders sell
a substantial amount of shares, the prevailing market price for our shares could be adversely affected.

    18

     

    

The
market price of our Common Stock may be subject to fluctuation and you could lose all or part of your investment.

 

Our
currently effective public offering price has been arbitrarily determined by us and may not be indicative of prices that will
prevail in the trading market. The price of our shares may decline following our currently effective public offering. The stock
market in general has been, and the market price of our ordinary shares in particular will likely be, subject to fluctuation,
whether due to, or irrespective of, our operating results and financial condition. The market price of our shares may fluctuate
as a result of a number of factors, some of which are beyond our control, including, but not limited to:

 

		●	actual
                                         or anticipated variations in our and our competitors’ results of operations and
                                         financial condition;

		●	market
                                         acceptance of our products;

		●	the
                                         mix of products that we sell and related services that we provide;

		●	changes
                                         in earnings estimates or recommendations by securities analysts, if our shares are covered
                                         by analysts;

		●	development
                                         of technological innovations or new competitive products by others;

		●	announcements
                                         of technological innovations or new products by us;

		●	failure
                                         by us to achieve a publicly announced milestone;

		●	delays
                                         between our expenditures to develop and market new or enhanced products and the generation
                                         of sales from tho

		●	developments
                                         concerning intellectual property rights, including our involvement in litigation;

		●	regulatory
                                         developments and the decisions of regulatory authorities as to the approval or rejection
                                         of new or modified

		●	changes
                                         in the amounts that we spend to develop, acquire or license new products, technologies
                                         or businesses;

		●	changes
                                         in our expenditures to promote our products;

		●	our
                                         sale or proposed sale, or the sale by our significant shareholders, of our shares or
                                         other securities in the future;

		●	changes
                                         in key personnel;
	 	 	 

	 	●	success
                                         or failure of our research and development projects or those of our competitors;

		●	the
                                         trading volume of our Shares; and

		●	general
                                         economic and market conditions and other factors, including factors unrelated to our
                                         operating performance.

 

These
factors and any corresponding price fluctuations may materially and adversely affect the market price of our shares and result
in substantial losses being incurred by our investors. In the past, following periods of market volatility, public company shareholders
have often instituted securities class action litigation. If we were involved in securities litigation, it could impose a substantial
cost upon us and divert the resources and attention of our management from our business.

 

The
financial and operational projections that we may make from time to time are subject to inherent risks.

 

The
projections that we provide herein or our management may provide from time to time (including, but not limited to, those relating
to potential peak sales amounts, clinical and regulatory timelines, production and supply matters, commercial launch dates, and
other financial or operational matters) reflect numerous assumptions made by management, including assumptions with respect to
our specific as well as general business, regulatory, economic, market and financial conditions and other matters, all of which
are difficult to predict and many of which are beyond our control. Accordingly, there is a risk that the assumptions made in preparing
the projections, or the projections themselves, will prove inaccurate. There may be differences between actual and projected results,
and actual results may be materially different from than those contained in the projections. The inclusion of the projections
in this Annual Report on Form 10-K should not be regarded as an indication that we, our management, or their representatives considered
or consider the projections to be a guaranteed prediction of future events, and the projections should not be relied upon as such.

 

An
investment in our company may involve tax implications, and you are encouraged to consult your own advisors as neither we nor
any related party is offering any tax assurances or guidance regarding our company or your investment.

 

The
formation of our company, as well as an investment in our company generally, involves complex federal, state and local
income tax considerations. Neither the Internal Revenue Service nor any State or local taxing authority has reviewed the
transactions described herein, and may take different positions than the ones contemplated by management. You are strongly
urged to consult your own tax and other advisors prior to investing, as neither we nor any of our officers, directors or
related parties is offering you tax or similar advice, nor are any such persons making any representations and warranties
regarding such matters.

    19

     

    

Our
ability to use our net operating loss carry-forwards and certain other tax attributes may be limited.

 

Under
Section 382 of the Internal Revenue Code of 1986, as amended, referred to as the Internal Revenue Code, if a corporation undergoes
an “ownership change” (generally defined as a greater than 50% change (by value) in its equity ownership over a three-year
period), the corporation’s ability to use its pre-change net operating loss carry-forwards and other pre-change tax attributes
(such as research tax credits) to offset its post-change income may be limited. We may also experience ownership changes in the
future as a result of subsequent shifts in our stock ownership, including as a result of the completion of our currently effective
public offering when it is taken together with other transactions we may consummate in the succeeding three-year period. As a
result, if we earn net taxable income, our ability to use our pre-change net operating loss carry-forwards to offset U.S. federal
taxable income may be subject to limitations, which potentially could result in increased future tax liability to us.

 

Our
Certificate of Incorporation permits “blank check” preferred stock, which can be designated by our Board of Directors
without stockholder approval.

 

We
have 50,000,000 authorized shares of preferred stock. The shares of our preferred stock may be issued from time to time in one
or more series, each of which shall have a distinctive designation or title as is determined by our Board of Directors prior to
the issuance of any shares thereof. The preferred stock may have such voting powers, full or limited, or no voting powers, and
such preferences and relative, participating, optional or other special rights and such qualifications, limitations or restrictions
thereof as adopted by the Board of Directors. Because the Board of Directors is able to designate the powers and preferences of
the preferred stock without the vote of a majority of our stockholders, stockholders will have no control over what designations
and preferences our preferred stock will have. If preferred stock is designated and issued, then depending upon the designation
and preferences, the holders of the preferred stock may exercise voting control over us. As a result, our stockholders will have
no control over the designations and preferences of the preferred stock and as a result the operations of our company.]

 

Our
management collectively owns a substantial majority of our Common Stock.

 

Collectively,
our officers, our directors and 5 other stockholders own or exercise voting and investment control of approximately 98% of our
outstanding Common Stock. As a result, investors may be prevented from affecting matters involving our company, including:

 

		●	the
                                         composition of our Board of Directors and, through it, any determination with respect
                                         to our business direction and policies, including the appointment and removal of officers;

		●	any
                                         determinations with respect to mergers or other business combinations;

		●	our
                                         acquisition or disposition of assets; and

		●	our
                                         corporate financing activities.

 

Furthermore,
this concentration of voting power could have the effect of delaying, deterring or preventing a change of control or other business
combination that might otherwise be beneficial to our stockholders. This significant concentration of share ownership may also
adversely affect the trading price for our Common Stock because investors may perceive disadvantages in owning stock in a company
that is controlled by a small number of stockholders.

 

If
we fail to establish and maintain an effective system of internal control or disclosure controls and procedures are not effective,
we may not be able to report our financial results accurately and timely or to prevent fraud. Any inability to report and file
our financial results accurately and timely could harm our reputation and adversely impact the trading price of our Common Stock.

 

Effective
internal controls are necessary for us to provide reliable financial reports and effectively prevent fraud. Section 404 of
the Sarbanes-Oxley Act of 2002 requires us to evaluate and report on our internal controls over financial reporting and,
depending on our future growth, may require our independent registered public accounting firm to annually attest to our
evaluation, as well as issue their own opinion on our internal controls over financial reporting. The process of implementing
and maintaining proper internal controls and complying with Section 404 is expensive and time consuming. We cannot be certain
that the measures we will undertake will ensure that we will maintain adequate controls over our financial processes and
reporting in the future. Furthermore, if we are able to rapidly grow our business, the internal controls that we will need
may become more complex, and significantly more resources will be required to ensure our internal controls remain effective.
Failure to implement required controls, or difficulties encountered in their implementation, could harm our operating results
or cause us to fail to meet our reporting obligations. If our auditors or we discover a material weakness in our internal
controls, the disclosure of that fact, even if the weakness is quickly remedied, could diminish investors’ confidence
in our financial statements and harm our stock price. In addition, non-compliance with Section 404 could subject us to a
variety of administrative sanctions, including the suspension of trading, ineligibility for future listing on one of the
Nasdaq Stock Markets or national securities exchanges, and the inability of registered broker-dealers to make a market in our
Common Stock, which may reduce our stock price.

    20

     

    

If
securities or industry analysts do not publish research or reports about us, our business or our market, or if they make and then
change their recommendations regarding our Common Stock adversely, the price of our Common Stock and trading volume could decline.

 

The
trading market for our Common Stock, should it develop, may be influenced by the research and reports that securities or industry
analysts may publish about us, our business, our market or our competitors. If any of the analysts who may cover us change their
recommendation regarding our Common Stock adversely, or provide more favorable relative recommendations about our competitors,
the price of our Common Stock would likely decline. If any analyst who may cover us was to cease coverage of our company or fail
to regularly publish reports on us, we could lose visibility in the financial markets, which in turn could cause the price of
our Common Stock or trading volume to decline.

 

In
making your investment decision, you should understand that we have not authorized any other party to provide you with information
concerning us or our currently effective public offering.

 

You
should carefully evaluate all of the information in this Annual Report on Form 10-K before investing in our company. We may receive
media coverage regarding our company, including coverage that is not directly attributable to statements made by our officers,
that incorrectly reports on statements made by our officers or employees, or that is misleading as a result of omitting information
provided by us, our officers or employees. We have not authorized any other party to provide you with information concerning us
or our currently effective public offering, and you should not rely on this information in making an investment decision.

 

Risks
Related to Ownership of Note Financings

 

Common
Stock that we issue upon conversion of the promissory note will dilute our existing stockholders and depress the market price
of our Common Stock.

 

On
April 16, 2020, SEC ordered, pursuant to Section 12(k) of the Securities Exchange Act of 1934, that trading of BIXT is
suspended for the period April 16 through April 29, 2020. As a result of the SEC ordered suspension the Company defaulted on
outstanding Convertible Notes; resulting in an increase of the interest to 21% and the principal to increase to 168% of
principal loan amount. The convertible debt increased by $666,456 to $1,604,856 while the interest accrual increased to
approximately $28,563/month, amounting to $175,543 at date of September 30, 2020. At the default date, April 16, 2020,
remaining debt discount of $76,265 was amortized to interest expense and the remaining debt premium of $856,560 was
accredited to additional paid-in capital.

 

On
May 2 and 3, 2021, we entered into nine Note Agreements for a total amount of $3,266,846 in 1-year notes (the “New Notes”),
with an interest rate of 6% convertible at the lower of (i) a fixed price of $0.13, or (ii) 85% of the closing price of any Qualified
Financing, which consist of any fundraising receiving gross proceeds of not less than $500,000.

 

The
shares of Common Stock issuable under these New Notes will dilute our existing stockholders and depress the market price of our
Common Stock

    21

     

    

The
price of the Common Stock we are selling under our currently effective public offering is significantly higher than the conversion
price of the Convertible Notes and warrant and the price of our Common Stock would likely drop to or below the conversion price
of the Notes upon conversion.

 

In
the event that the Notes convert into Common Stock, the conversion price is significantly lower than the price at which we are
selling our Common Stock in our currently effective public offering. As a result, the sale by the Note Holders of our Common Stock
could drive the market price down to the conversion price as determined at the date of conversion or lower. This could result
in the purchaser of our Common Stock in our currently effective public offering to immediately loose a substantial portion of
his or her investment.

 

If
our stock price materially declines, the convertible note holders will have the right to a large number of shares of Common Stock
upon exchange of amounts due under the notes, which may result in significant dilution.

 

The
notes have a conversion feature which is based upon 65% of the lowest trading price during the twenty days prior to a conversion
notice on the applicable trading market or the closing bid price on the applicable trading market. If our Common Stock price materially
declines, we will be obligated to issue a large number of shares upon conversion. This will likely materially dilute existing
shareholders. The potential for such dilutive issuances upon conversion of outstanding notes may depress the price of Common Stock
regardless of our business performance, and could encourage short selling by market participants, especially if the trading price
of our Common Stock begins to decrease.

 

USE
OF PROCEEDS

 

The
gross proceeds to us from the sale of all of the Shares offered hereby, assuming all of the Shares offered herewith are sold,
are estimated to be $1,000,000. Such proceeds do not include placement fees, legal, transfer agent and other miscellaneous expenses
estimated to be an aggregate of $130,000. We intend to utilize the proceeds for research and development and general working capital
purposes.

 

LIQUIDITY
AND CAPITAL RESOURCES

 

We
do not currently have sufficient capital resources to fund operations. To stay in business and to continue the development of
our products, we will need to raise additional capital through public or private sales of our securities, debt financing or short-term
bank loans, or a combination of the foregoing. The future of the Company is dependent upon its ability to obtain financing to
develop its new business opportunities and support the cost of the drug development including clinical trials and regulatory submission
to the FDA.

 

At
June 30, 2021, the net working capital was negative $1,326,329 and the accumulated deficit of $7,240,331. Comparatively, on December
31, 2020, we had net working capital of negative $1,951,256 and an accumulated deficit of

 

$4,721,923.
We believe that we must raise not less than $3,700,000 to be able to continue our business operations for the next 15 months.
We believe that we must raise not less than $3,700,000 in addition to current cash on hand to be able to continue our business
operations for approximately the next 15 months and repay the ten convertible notes. The report of our independent registered
public accountants as of and for period ending December 31, 2020, contained an explanatory paragraph regarding substantial doubt
about our ability to continue as a going concern. Our ability to continue as a going concern is dependent upon our ability to
generate revenue and raise capital from financing transactions. Management anticipates that our cash resources are not sufficient
to continue operations until additional cash investments are secured. The future of the Company is dependent upon its ability
to obtain financing and upon future profitable operations from the development of its new business opportunities. There can be
no assurance that we will be successful in accomplishing its objectives.

 

On
April 16, 2020, SEC ordered, pursuant to Section 12(k) of the Securities Exchange Act of 1934, that trading of BIXT is
suspended for the period April 16 through April 29, 2020. As a result of the SEC ordered suspension the Company defaulted on
ten outstanding Convertible Notes; resulting in an increase of the interest to 21% and the principal to increase to 168% of
principal loan amount. The convertible debt increased by $666,456 to $1,604,856 while the interest accrual increased to
approximately $28,563 per month. On May 2 and 3, 2021, Bioxytran, Inc. entered into nine Note Agreements for a total amount
of $3,266,846 in 1-year notes (the “New Notes”), with an interest rate of 6% convertible at the lower of (i)
a fixed price of $0.13, or (ii) 85% of the closing price of any Qualified Financing, which consist of any fundraising
receiving gross proceeds of not less than $500,000.

    22

     

    

We
have no current commitment from our officers and directors or any of our shareholders, to supplement our operations or provide
us with financing in the future. If we are unable to raise additional capital from conventional sources and/or additional sales
of stock in the future, we may be forced to curtail or cease our operations. Even if we are able to continue our operations, the
failure to obtain financing could have a substantial adverse effect on our business and financial results. In the future, we may
be required to seek additional capital by selling debt or equity securities, selling assets, or otherwise be required to bring
cash flows in balance when we approach a condition of cash insufficiency. The sale of additional equity or debt securities, if
accomplished, may result in dilution to our then shareholders. We provide no assurance that financing will be available in amounts
or on terms acceptable to us, or at all.

 

Contractual
Obligations

 

Our
contractual obligations include four convertible notes, for a total of $2,165,000 and of accrued interest for these notes mounting
to $20,735, as at December 31, 2020 there were ten defaulted notes due for an amount of $1,875,491. At May 26, 2021, the defaulted
notes were returned in exchange for a $1,000,000 note.

 

Off-Balance
Sheet Arrangements

 

We
do not have any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect
on our consolidated financial condition, results of operations, liquidity, capital expenditures or capital resources.

 

BUSINESS

 

Overview

 

Business
Operations

 

Bioxytran,
Inc. (the “Company”) is a clinical stage pharmaceutical company focused on the development, manufacture and commercialization
of therapeutic drugs designed to address hypoxia in humans, which is a lack of oxygen to tissues, in a safe and efficient manner.
Our Subsidiary, Pharmalectin, Inc. (the “Subsidiary”) is a clinical stage pharmaceutical company focused on the development,
manufacture and commercialization of therapeutic drugs designed to address conditions related to Covid-19.

 

Bioxytran,
Inc. is headquartered in Needham, Massachusetts. The Company’s initial product pipeline is focused on developing and commercializing
therapeutic molecules for stroke. BXT-25 will be designed to be an injectable anti-necrosis drug specifically designed to treat
a person immediately after that person suffers an ischemic stroke. The drug is designed to be injected intravenously to travel
to the lungs to pick up oxygen molecules to carry to the brain. Like a red blood cell, the drug will cross the blood brain barrier,
which is a protective semi-permeable membrane allowing some material to cross but preventing others from crossing. BXT-25 will
be designed to diffuse oxygen into the brain tissues. We expect the BXT- 25 molecule to be 5,000 times smaller than a red blood
cell.

 

Our
Subsidiary is continuing our clinical trials with a candidate named, ProLectin-Rx a complex polysaccharide derived from galactomannan
and pectin respectively, that binds to, and blocks the activity of galectin-1 and -3, a type of galectin. Galectins are a member
of a family of proteins in the body called lectins. These proteins interact with carbohydrate sugars located in, on the surface
of, and in between cells. This interaction causes the cells to change behavior, including cell movement, multiplication, and other
cellular functions. The interactions between lectins and their target carbohydrate sugars occur via a carbohydrate recognition
domain, or CRD, within the lectin. Galectins are a subfamily of lectins that have a CRD that bind specifically to ß-galactoside
proteins. Galectins have a broad range of functions, including regulation of cell survival and adhesion, promotion of cell-to-cell
interactions, growth of blood vessels, regulation of the immune response and inflammation. During viral infections galectins are
upregulated and downregulated based on the type of virus.

 

ProLectin-M’s
clinical data shows non-toxicity and efficacy for treatment of mild to moderate COVID-19. In our initial Phase I/II clinical
trial are published as a peer-reviewed scientific report in the Journal of Vaccines & Vaccinations. The Company is
currently working on a Phase III clinical trial with the CDCSO in India, and is preparing its IND for a Phase III clinical
trial with the FDA, soon to be followed by a Phase III submission with the EMEA. The clinical trials are expected to take
place in July through August, 2021. Further, the Company is also preparing an IND for a second drug candidate ProLectin-I
with similar galactin blocking capabilities as the oral drug, ProLectin-M, but IV-injectable for severe cases of COVID-19.
The initial Phase I/II clinical trial is planned for August through October, 2021. The described clinical trials are subject
to additional funding.

    23

     

    

Stroke

 

Stroke,
also known as cerebrovascular accident (CVA), or brain attack, occurs when poor flow to the brain results in necrosis and cell
death. Strokes can be classified into two major categories: ischemic and hemorrhagic. Ischemic strokes are caused by interruption
of the blood supply to the brain; hemorrhagic strokes result from the rupture of a blood vessel or an abnormal vascular structure.
According to the Center for Disease Control, approximately 87% of all strokes are ischemic strokes. An ischemic stroke may be
thrombotic, which occurs when diseased or damaged cerebral arteries become blocked by the formation of a blood clot within the
brain, or embolic, which occurs when a clot formed originally somewhere in the body outside the brain - typically in the heart
- travels in a cerebral artery. Whether thrombotic or embolic, an ischemic stroke restricts the flow of blood to the brain and
results in near-immediate physical and neurological deficits.

 

According
to the Center for Disease Control, there are about 795,000 new or recurrent cases of stroke in the United States each year, of
which 610,000 are new cases and 185,000 recurrent cases. One hundred thirty thousand (130,000) Americans are killed by stroke
each year, or one very four minutes. Stroke is a leading cause of serious long-term disability and costs the United States an
estimated $34 Billion each year, according to the Center for Disease Control, a figure which includes the cost of health care
services, medications to treat the stroke, and missed days of work.

 

Hemoglobin
and Complex Co-Polymer Science

 

Oxygen
therapeutics describe generally a class of agents that will be administered intravenously to enhance the oxygen delivery capability
of blood. These oxygen transporting agents may be perfluorcarbon (PFC) emulsions or modified hemoglobin solutions. Our technology
involves the development of hemoglobin-based oxygen carriers. To produce BXT- 25, we will take red blood cells (RBCs) from bovine
sources, isolate hemoglobin from the RBCs and, by applying our proprietary co-polymer chemistry, stabilize and modify the hemoglobin.
Our novel, complex co-polymer molecules can be produced at specific molecular weights and with other pharmaceutical properties;
and in the production of BXT-25.

 

The
BXT-25 co-polymer hemoglobin molecule will be designed to be 5,000 times smaller than an RBC, which we believe will enable that
small molecule to reach hypoxic tissue more effectively than RBCs. BXT-25 will be designed to be administered as an injectable
IV drug that will circulate in the blood collecting oxygen from the lungs and releasing the oxygen molecules where tissue has
developed ischemia, or lack of oxygen. BXT-25 will be designed to have oxygen affinity that mimics RBCs, minimize adverse effects,
and be compatible with all blood types. BXT will be designed to have a shelf life of two years at room temperature.

 

With
regard to compatibility with all blood types, we believe that the differences between a BXT-25 molecule and a red blood cell will
not limited to differences in size. Surfaces of red blood cells include different antigens which determine the blood type as A,
B, AB or O. We believe that BXT-25 will be found to be compatible with all blood types because it is a single, modified hemoglobin
molecule stabilized with a co-polymer which, unlike a red blood cell, has neither antigens nor a Rh factor.

 

Certain
regulatory issues relating to our use of bovine hemoglobin as a raw material

 

Our
products include as a raw material commercially available bovine hemoglobin that has been purified, chemically modified and cross-linked
for stability. It is sourced from controlled herds of U.S. cattle raised for beef production. Those herds are subject to and meet
the requirements of a herd management program that assures the origin, health, feed and quality of the cattle used as a raw material
source. Our suppliers will contract to maintain traceable records on animal origin, health, feed and care as part of our effort
to assure the use of known, healthy animals in compliance with applicable laws and regulations.

 

    24

     

    

Bovine
whole blood will be collected in individual pre-sanitized containers. The containers will be shipped to separation facility.
Prior to collection of the blood, the animals undergo live inspection. Then, following blood collection, the animal carcass
undergoes U.S. Department of Agriculture (USDA) inspection for use as beef for human consumption. If an animal carcass is
retained for further inspection for final disposition by the USDA veterinarian, we reject the corresponding container of
whole blood. We have validated and tested the processes described below for removal of potential pathogens in our raw
material. Potential pathogens include bacteria, viruses such as those leading to hepatitis and AIDS, and the transmissible
spongiform encephalopathies that cause rare neurological disorders such as “mad cow disease” and its human
equivalent. The validation of a process means that it has been tested and documented and that it performs adequately. Health
and regulatory authorities have given guidance directed at three factors to control these diseases: source of animals, the
nature of tissue used and manufacturing process. We will comply with, and believe we will exceed, all current guidelines
regarding such risks for human pharmaceutical products.

 

There
will be four major steps in the manufacture of BXT-25: (1) hemoglobin separation; (2) hemoglobin purification; (3) polymerization/size
selection and (4) synthesizing with our co-polymer. More specifically, bovine blood that has been collected in an aseptic fashion
is processed to first remove plasma and then to remove at high concentration the hemoglobin protein from red blood cells. The
hemoglobin is then purified of other red cell proteins by anion exchange chromatography. The purified hemoglobin is then stabilized
by the addition of a cross-linking agent to form hemoglobin polymers. There is an additional sizing step to remove the higher
hemoglobin molecules. The final step, co-polymer synthesis, takes place on the stabilized hemoglobin. The combination polymers
will be filled with a solution suitable for infusion. The product is then run through sterilizing filters into sterile product
bags.

 

BX-10

 

The
Company is also pursuing their work with a second drug candidate, BXT-10, a complex polysaccharide derived from pectin that binds
to, and blocks the activity of galectin-1, a type of galectin. Galectins are a member of a family of proteins in the body called
lectins. These proteins interact with carbohydrate sugars located in, on the surface of, and in between cells. This interaction
causes the cells to change behavior, including cell movement, multiplication, and other cellular functions. The interactions between
lectins and their target carbohydrate sugars occur via a carbohydrate recognition domain, or CRD, within the lectin. Galectins
are a subfamily of lectins that have a CRD that bind specifically to ß-galactoside sugar molecules. Galectins have a broad
range of functions, including regulation of cell survival and adhesion, promotion of cell-to-cell interactions, growth of blood
vessels, regulation of the immune response and inflammation. During viral infections galectins are upregulated and downregulated
based on the type of virus.

 

The
Company plans to file a pre-investigational new drug application for BXT-10 for the treatment of mild to moderate COVID-19 patients.
However, we cannot provide any assurance that we will successfully initiate or complete those planned trials and be able to initiate
any other clinical trials for BXT-10 or any of our future drug candidates.

 

Intellectual
Property

 

We
have licensed certain rights in a patent to a patent for the use of Ultra Small Lipid Structures. Our license imposes various
obligations on us, and provides the licensor the right to terminate the license in the event of our material breach of the license
agreement, our failure to initiate or complete development of a licensed product, or our commencement of an action seeking to
have a licensed patent right declared invalid. We may enter into additional licenses to third-party intellectual property that
are necessary or useful to our business.

 

Key
Strengths

 

We
believe that our key differentiating elements include:

 

Focus
on novel therapeutic opportunities provided by co-polymer: We are focused on development of co-polymer compounds to stabilize
the modified hemoglobin molecule. The Co-polymer method of chemical stabilization has not received as much scientific attention
as nucleic acids and proteins, but the Company believes that it is a viable alternative to these other materials.

 

		●	Experienced
                                         management

		●	Our
                                         President, Chief Executive Officer and Chairman, David Platt, Ph.D., is a chemical engineer,
                                         a pioneer in designing than 30 years of experience in the development of therapeutic
                                         drugs. We are the fourth biotechnology company founded Therapeutics Inc. (OTC: BTHE).
                                         The first two are International Gene Group, which later became Prospect Therapeutics,
                                         (Nasdaq: LJPC), and Pro-Pharmaceuticals (now Galectin Therapeutics) (Nasdaq: GALT). Their
                                         core technologies were

    25

     

    

 

		●	Our
                                         CFO Ola Soderquist has more than 30 years of senior international entrepreneurial management
                                         experience experience portfolio includes; Start-ups, Private, Public, Venture Capital
                                         and Private Equity ownership. He has multiple industry sectors and companies. Ola is
                                         a multi-lingual senior finance professional poised to work globally projects involving
                                         change management, business integration, systems implementation, continuous improvement,
                                         and in Accounting from Stockholm School of Economics and an MBA from Babson College.

		●	We
                                         have assembled a scientific and medical advisory board consisting of leading physicians
                                         and key opinion leaders and who will guide us through ongoing clinical trial programs.
                                         Our scientific and medical advisory boards consist and professionals in the ischemia
                                         or hypoxia fields. 

		●	Products
                                         are differentiated and address significant unmet needs: Our lead product candidate,
                                         BXT-25 and any additional unmet medical needs. Oxygen therapy management, including stroke,
                                         other hypoxia management and treatment of diseases remain a critical area of unmet need.
                                         Increasingly, patients, physicians and the media are highlighting the deficiencies growing
                                         population of individuals adversely affected by ischemia, unhealed wounds, or traumatic
                                         brain injury.

		●	Efficient
                                         development strategy: We believe that our regulatory development pathway is a standard
                                         generic pathway approval

		●	Risks
                                         Associated with Our Business

 

Our
business is subject to numerous significant risks, as more fully described in the section entitled “Risk Factors”.
You should read and carefully consider these risks, together with the risks set forth under the section entitled “Risk Factors”
and all of the other information in this Annual Report on Form 10-K, including the financial statements and the related notes
included elsewhere in this Annual Report on Form 10-K, before deciding whether to invest in our Common Stock. If any of the risks
discussed in this Annual Report on Form 10-K actually occur, our business, financial condition or operating results could be materially
and adversely affected. In particular, our risks include, but are not limited to, the following:

 

		●	We
                                         expect to incur losses for the foreseeable future and may never achieve or maintain profitability.

		●	We
                                         are a company with limit operating history which makes it difficult to evaluate our current
                                         business and future prospects.

		●	We
                                         will require additional financing to implement our business plan, which may not be available
                                         on favorable terms or at all, and we may have to accept financing terms that would adversely
                                         affect our stockholders.

		●	Raising
                                         additional capital may cause dilution to our stockholders, restrict our operations or
                                         require us to relinquish rights to our drug candidates.

		●	Our
                                         products are based on novel, unproven technologies.

		●	Clinical
                                         drug development involves a lengthy and expensive process, with an uncertain outcome.
                                         We may incur additional costs or experience delays in completing, or ultimately be unable
                                         to complete, the development and commercialization of our drug candidates.

		●	We
                                         may be unable to commercialize our drug candidates or expand awareness.

		●	Our
                                         success depends upon our ability to retain key executives and to attract, retain, and
                                         motivate qualified personnel and direction and the loss of these persons could adversely
                                         affect our operations and results.

		●	our
                                         competitive position depends on protection of our intellectual property. We intend to
                                         submit more patents and provisional patents in the near future to strengthen our intellectual
                                         property.

		●	The
                                         market for our proposed products is rapidly changing and competitive, and new drugs and
                                         new treatments which may be developed by others could impair our ability to maintain
                                         and grow our business and remain competitive.

		●	We
                                         may become involved in lawsuits to protect or enforce patents that may issue to us, that
                                         we may acquire, or may license in the future or other intellectual property, which could
                                         be expensive, time-consuming and ultimately unsuccessful.

		●	The
                                         market price of our Common Stock may be highly volatile, and you could lose all or part
                                         of your investment.

		●	We
                                         have a limited market for our Common Stock, which makes our securities very speculative.

		●	You
                                         will experience immediate and substantial dilution as a result of our currently effective
                                         public offering and may experience additional dilution in the future.

		●	Our
                                         management will have broad discretion in how we use the net proceeds of our currently
                                         effective public offering.

 

Corporate
Information

 

We
were incorporated on October 5, 2017 as Bioxytran, Inc. Our principal executive offices are located at 233 Needham St., Suite
300, Newton, MA 02464.

    26

     

    

MANAGEMENT

 

Our
board of directors, executive officers and key employees are as follows:

 

	Name 
	 	Age
                                         as of

        

        December
        31, 2020

        
	 	Position       

	David
    Platt, Ph.D.	 	67	 	Chief
    Executive Officer, Chairman and Director
	Ola
    Soderquist, MBA, CPA, CMA	 	59	 	Chief
    Financial Officer, Treasurer, Secretary
	Mike
    Sheikh	 	51	 	VP
    Business Development
	Dale
    H. Conaway, D.V.M.	 	66	 	Director
	Alan
    M. Hoberman. Ph.D.	 	67	 	Director
	Henry
    J. Esber, Ph.D.	 	82	 	Director
	Anders
    Utter, MBA	 	53	 	Director

 

David
Platt, Ph.D. is the Chief Executive Officer and Chairman of our Board of Directors. Dr. Platt is a world-renowned expert
in carbohydrate chemistry and has founded three publicly traded companies, creating nearly $1B for investors. He has raised $150M
directly in public markets in the U.S. and has led development of two drug candidates from concept through phase II clinical trials.
Prior to Bioxytran, Inc. Dr. Platt founded Boston Therapeutics Inc. in 2010 (OTC: BTHE) where he served as chief executive officer
from 2010 to April 1, 2015 and as a director from March 2015 to June 8, 2016. From 2001 to 2009, Dr. Platt was a founder, Chief
Executive Officer and Chairman of the Board at Pro-Pharmaceuticals, Inc. (OTC: PRWP and AMEX: PRW, now NASDAQ: GALT). From 1995
to 2000 Dr. Platt was the founder of International Gene Group (NASDAQ: IGGI, GLGS now LPJC). Dr. Platt received a Ph.D. in Chemistry
in 1988 from Hebrew University in Jerusalem. In 1989, Dr. Platt was a research fellow at the Weizmann Institute of Science, Rehovot,
Israel, and from 1989 to 1991, was a research fellow at the Michigan Foundation (re-named Barbara Ann Karmanos Institute). From
1991 to 1992, Dr. Platt was a research scientist with the Department of Internal Medicine at the University of Michigan. Dr. Platt
has published peer-reviewed articles and holds many patents, primarily in the field of carbohydrate chemistry. Our board of directors
believes that Dr. Platt’s expertise and experience with public biotech companies, his perspective, depth and background
in chemistry and finance, the capital formation process and leadership experience in public companies provide him with the qualifications
and skills to serve on our board of directors.

 

Ola
Soderquist, MBA, CPA, CMA, CM&AA has more than 30 years of senior international entrepreneurial management experience
within technology companies. Ola’s managerial experience portfolio includes; Start-ups, Private, Public, Venture Capital
and Private Equity ownership. He has served in CFO and other managerial capacities in multiple industry sectors and companies.
His public company tenures include companies in the Wallenberg Sphere (1986-1996): Industrivarden (OMX:INDU), Electrolux (OMX:ELUX),
Ericsson (NASDAQ:ERIC), Swedish Match (OMX:SWMA) and SKF AB (OMX:SKF), and most recently in Traction (OMX:TRAC) (1996-2001) and
Belden (NYSE: BDC) (2006-2011). His private company experience includes CFO and CAO positions in Proditec, Inc. (2001-2006), LFA
Corp. (2012-2014) and Faria Beede Instruments, Inc. (2014-2016). Ola is a multi-lingual senior finance professional poised to
work globally and cross-functionally, particularly with complex projects involving change management, business integration, systems
implementation, continuous improvement, and process excellence. He obtained a BS and an MSA rom Stockholm School of Economics
and an MBA from Babson College.

 

Mike
Sheikh, is a US Air Force Academy graduate and pilot. He has a Bachelor’s of Science in Economics and flew KC-135
tankers and worked as a budget officer in the comptroller’s squadron. He has prior experience as a broker and research analyst.
After the brokerage industry, he was a business development officer for a variety of specialty finance companies. He is a long-time
Biotech Consultant expert for public or private biotech companies with disruptive technologies. Mr. Sheikh the founder of Falcon
Strategic Research, which focuses on companies that are not covered by traditional analysts on Wall Street. He is also the founder
of an Investor Relations Firm.

 

Dale
H. Conaway, D.V.M., is a Director of the Company. He is the Chief Veterinary Medical Officer for the Office of
Research Oversight, an office within the Veterans Health Administration under the U.S. Department of Veterans Affairs. From
2001 to 2006, Dr. Conaway was the Deputy Regional Director (Southern Region). From 2010 to September 15, 2016, Dr. Conaway
served as a member of the board of directors of Boston Therapeutics, Inc.. From 1998 to 2001, Dr. Conaway served as Manager
of the Equine Drug Testing and Animal Disease Surveillance Laboratories for the Michigan Department of Agriculture. From 1994
to 1998, he was Regulatory Affairs Manager for the Michigan Department of Public Health Vaccine Production Division.
Dr. Conaway received a D.V.M. degree from Tuskegee Institute and an M.S. degree in pathology from the College of Veterinary
Medicine at Michigan State University. Our board of directors believes that Dr. Conway’s expertise and experience as a
director in a public biotech company, his perspective, depth and background in testing and the development of biologic
compounds, and his leadership in management provide him with the qualifications and skills to serve on our board of
directors.

    27

     

    

Alan
M. Hoberman, Ph.D. is president and CEO of Argus International, Inc., overseeing a staff of scientists and other professionals
who provide consulting services for industry, government agencies, law firms and other organizations, both in the U.S. and internationally.
From 2014 to September 15, 2016 Dr. Hoberman served as a member of the board of directors of Boston Therapeutics, Inc. Between
1991 and 2013 he held a series of positions of increasing responsibility at Charles River Laboratories Preclinical Services (formerly,
Argus Research Laboratories, Inc.), most recently as Executive Director of Site Operations and Toxicology. He currently works
with that organization to design, supervise and evaluate reproductive and developmental toxicity, neurotoxicity, inhalation and
photobiology studies. Dr. Hoberman holds a PhD in toxicology from Pacific Western University, an MS in interdisciplinary toxicology
from the University of Arkansas and a BS in biology from Drexel University. Our board of directors believes that Dr. Hoberman’s
expertise and experience as a director in a public biotech company, his perspective, depth and background in consulting and advising
clients and his experience in the testing and development of biologic compounds, and his leadership in management provide him
with the qualifications and skills to serve on our board of directors.

 

Henry
J. Esber, Ph.D., a Director of the Company, has been a Principal in Esber D&D consulting since 2005. From 2003 to
2005, Dr. Esber was a Senior Consultant, Business Development at Charles River Labs, Discovery and Development Services. From
2010 to September 11, 2016, Dr. Esber served as a member of the board of directors of Boston Therapeutics, Inc. Dr. Esber has
more than 35 years of experience in the areas of oncology/tumor immunology and immunotherapy as well as strong knowledge in the
field of toxicology and regulatory affairs. Dr. Esber received a B.S. degree in biology/pre-med from the College of William and
Mary, an M.S. degree in public health and parasitology from the University of North Carolina, and a Ph.D. in immunology/microbiology
from West Virginia University Medical Center. Our board of directors believes that Dr. Esber’s expertise and experience
as a director in a public biotech company, his perspective, depth and background in immunology and immunotherapy and toxicology,
and his leadership in business development provide him with the qualifications and skills to serve on our board of directors.

 

Anders
N. Utter, has more than 25 years of finance, accounting and management experience in medical devices, consulting and manufacturing
industries in capacities as CFO, Controller and Managing Director. He had progressively increased management experience in the
European Nolato Group and later on in the Amplex Group. Mr. Utter has had a broad business exposure with IFRS and GAAP reporting
as well as with SOX compliance. He has also worked with M&A evaluations, financing and integration as well as more hands-on
manufacturing cost accounting and reporting. He is currently in charge of the finance control at one of General Cable’s
entities. Mr. Utter is and has been serving as a director on boards in both profit as well as non-profit organizations. Mr. Utter
holds an MBA from Babson College and a BA from Uppsala University in Sweden. Our board of directors believes that Mr. Utter’s
expertise and experience as a chief financial officer, his perspective, depth and background in GAAP reporting and SOX compliance,
and his finance, management and accounting experience provide him with the qualifications and skills to serve on our board of
directors.

 

Our
Directors are elected annually and each holds office until the annual meeting of the shareholders of the Company and until their
respective successors are elected and qualified. Our officers, including any officers we may elect moving forward, will hold their
positions at the pleasure of the Board of Directors, absent any employment agreement. In the event, we employ any additional officers
or directors of the Company, they may receive compensation as determined by the Company from time to time by vote of the Board
of Directors. Vacancies in the Board will be filled by majority vote of the remaining directors or in the event that a sole remaining
Director vacates his position, by our majority shareholders. Our Directors may be reimbursed by the Company for expenses incurred
in attending meetings of the Board of Directors.

 

Scientific
Advisory Board

 

We
are establishing a scientific advisory board to advise our management regarding our clinical and regulatory development
programs and other customary matters. Our scientific advisors are experts in various areas of medicine including
diabetes and other diseases. We believe the advice of our scientific advisors is important to the research, development and
clinical testing of our products. Our scientific advisory board is comprised of the following individuals.

    28

     

    

Prof.
Avraham Mayevsky, Ph.D. is a worldwide authority in the field of minimal invasive monitoring of tissue and organ physiology.
Prof. Mayevsky is a professor at the Faculty of Life Sciences, Bar-Ilan University, Israel. He founded Vital Medical Ltd. He served
as Head of the Department of Life Sciences and Dean of the Faculty of Natural Sciences at Bar-Ilan University, where he established
a center of tissue physiology. He served as Visiting professor at University of Pennsylvania and Johns Hopkins Medical School
World-recognized expert in tissue physiology, especially in brain metabolism. He published over 150 papers and patents. He has
published over 170 papers in scientific journals and is the author of five patents. Prof. Mayevsky completed PhD from Weizmann
Institute of Science, Rehovot, Israel.

 

Dr.
Hana Chen-Walden, M.D. is an Endocrinologist and has specialized in regulatory affairs in the pharmaceutical industry
in the US and Europe. Dr. Chen-Walden has more than 35 years of regulatory experience with the EMEA and in individual European
countries. Since 2004 to present, Dr. Chen-Walden consulted for European Clinical and Regulatory Consultancy in medical monitoring,
quality assurance and regulatory input for clinical studies in the fields of oncology, cardiology, diabetes, neurology, respiratory
diseases and medical devices. Dr. Chen Walden received her Doctorate of Medicine from University of Tel Aviv, Israel. Dr. Chen-Walden
has practiced medicine in Germany and France.

 

Dr.
Juan Carlos Lopez-Talavera, M.D., PhD. has over 20 years of experience in the biopharma industry, with extensive expertise
in liver and gastrointestinal diseases. Most recently, Dr. Lopez-Talavera was Senior Vice President, Head of Medical Affairs and
member of the Executive Team at Intercept Pharmaceuticals. Previously he held positions at AbbVie as Head of Medical Affairs,
Global Research and Development, Bristol Myers Squibb, as Vice President and Global Development Lead, and Roche Laboratories as
Senior Medical Director. Before moving into the industry, Dr. Lopez-Talavera was an Assistant Professor with the Divisions of
Gastroenterology and Hepatology, and Endocrinology and Pathology at the University of Pittsburgh Medical Center, Associate Professor
of Medicine with the Universidad Autónoma de Barcelona and Attending Physician of the Liver Unit at the Hospital General
Universitari Vall D’Hebron in Barcelona.

 

Medical
Advisory Board

 

We
are evaluating a Medical Advisory Board that will be comprised of Clinicians and Clinical Research professionals who are interested
in the field of Diabetes or in other subjects related to our product pipeline. The board will provide leadership and expertise
to assist us in designing, executing and implementing our clinically oriented activities in a safe, efficient and professional
manner.

 

Executive
Compensation

 

The
following table sets forth information concerning all cash all cash and non-cash compensation awarded to, earned by or paid to
the Company’s chief executive officer and chief financial officer, regardless of compensation level. The Company’s
chief executive officer and Chief Financial Officer are the only officers of the Company for whom compensation disclosure is required
pursuant to instruction 1 to Item 402(m)(2) of Regulation S-K.

 

Summary
Compensation Table

 

	Name
                                         and Principal Position
 
	 	Year 
	 	Salary 
	 	Total
 
 Compensation        

	David Platt, Chairman of the Board,	 	 	2020	 	 	$	72,000	 	 	$	72,000	 
	Chief Executive Officer and President	 	 	2019	 	 	$	72,000	 	 	$	72,000	 
	Ola Soderquist, Chief Financial Officer	 	 	2020	 	 	$	72,000	 	 	$	72,000	 
	 	 	 	2019	 	 	$	72,000	 	 	$	72,000	 

 

Director
Compensation

 

All
compensation paid to our employee directors is set forth in the table summarizing executive officer compensation above. Our
non-employee directors currently are entitled to receive 1,000 shares of our Common Stock for each board and/or committee
meeting that they attend per quarter in arrears. There were 27,000 shares, at a fair market value of $21,668, issued
as compensation to the board in 2019, no stock compensation was issued in 2018. Except for the foregoing, there are currently
no agreements in effect entitling them to compensation.

    29

     

    

Employment
Contracts

 

Our
executive officers have entered into employment contracts and confidentiality, non-disclosure and assignment of invention agreements.
Except for a commitment to pay David Platt and Ola Soderquist $6,000 in monthly compensation, starting in October 2018, the employment
agreements do not provide for the payment of any compensation to our executive officers but provide for the payment of $100,000
(subject to upward adjustment in certain circumstances) in severance upon termination of employment without cause and make no
provisions for any payment upon a change of control. The employment agreements also prohibit the sale of any Common Stock owned
by our executive officers in the 180 days following the effective date of the Registration Statement initially filed on November
30, 2018. There are no arrangements or plans in which we provide pension, retirement or similar benefits for any of executive
officers or directors. Our executive officers and directors may receive stock options at the discretion of our board of directors
in the future. We do not have any bonus or profit-sharing plans pursuant to which cash or non-cash compensation is or may be paid
to any of our executive officers or directors, except that stock options may be granted at the discretion of our board of directors
from time to time.

 

MARKET
FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

 

Our
Common Stock is traded under the symbol “BIXT” on the OTCQB operated by OTC Markets Group, Inc. Only a limited market
exists for our securities. On April 16, 2020, SEC ordered, pursuant to Section 12(k) of the Securities Exchange Act of 1934, that
trading of BIXT is suspended for the period April 16 through April 29, 2020. OTC Markets Group Inc. has discontinued the display
of quotes on www.otcmarkets.com for our Common Stock. There is no assurance that a regular
trading market will develop, or if developed, that it will be sustained. Therefore, a shareholder may be unable to resell his
securities in our company.

 

The
following tables set forth the range of high and low bid prices for our Common Stock for the each of the periods indicated as
reported by the OTCQB. These quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not
necessarily represent actual transactions.

 

	Quarter Ended	 	 	High	 	 	Low	 
	December 31, 2020	 	 	$	0.29	 	 	$	0.11	 
	September 30, 2020	 	 	$	0.20	 	 	$	0.02	 
	June 30, 2020	 	 	$	0.31	 	 	$	0.03	 
	 	March 31, 2020	 	 	$	0.80	 	 	$	0.22	 

 

	Quarter Ended	 	 	High	 	 	Low	 
	December 31, 2019	 	 	$	0.82	 	 	$	0.24	 
	September 30, 2019	 	 	$	1.30	 	 	$	0.65	 
	June 30, 2019	 	 	$	1.75	 	 	$	0.31	 
	 	March 31, 2019	 	 	$	0.55	 	 	$	0.20	 

 

DESCRIPTION OF CAPITAL STOCK

Common
Stock Our authorized Common Stock consists of 300,000,000 shares, par value $0.001.

 

Preferred
Stock Our authorized preferred stock consists of 50,000,000 shares, par value $0.001. There are no shares of preferred stock
outstanding

 

Warrants
and Options

 

Common
Stock Warrants

 

As
of June 30, 2021, the Company had 272,000 warrants outstanding at $2.00 per share.

    30

     

    

Common
Stock Options

 

The
following table summarizes the Company’s Common Stock option as of June 30, 2021:

 

	 	 	 	Number
                                         of 

Shares

	 	 	Fair
                                         Value 

per Share

	 	 	Weighted
                                         Average Market Value per Share

	 
	Issued as of December 31, 2020	 	 	 	11,002,000	 	 	$	 0.003 – 1.49	 	 	 	$0.10	 
	Issued	 	 	 	3,899,200	 	 	 	0.001 – 0.24	 	 	 	0.21	 
	 	Shares Issued as of June 30, 2021	 	 	 	15,001,200	 	 	$	 0.001 – 1.49	 	 	 	$0.13	 

 

DIVIDEND
POLICY

 

We
have never declared or paid any cash dividends on our capital stock. We do not anticipate paying cash dividends on our Common
Stock in the foreseeable future. We currently intend to retain all available funds and any future earnings to support our operations
and finance the growth and development of our business. Any future determination related to our dividend policy will be made at
the discretion of our board of directors and will depend upon, among other factors, our results of operations, financial condition,
capital requirements, contractual restrictions, business prospects, the requirements of current or then-existing debt instruments
and other factors our board of directors may deem relevant.

 

WHERE
YOU CAN FIND MORE INFORMATION

 

We
file reports, proxy statements and other information with the Securities and Exchange Commission. You may read and copy these
reports, proxy statements and other information at http://www.sec.gov that contains reports
and information statements and other information regarding issuers that file electronically with the SEC.

    31EX-10.1

 Exhibit 10.1 

AMENDMENT NO. 11 TO 
 AMENDED AND
RESTATED RECEIVABLES PURCHASE AGREEMENT 
 This AMENDMENT NO. 11, dated as of November 12, 2021 (this
“Amendment”), is made with respect to that certain Amended and Restated Receivables Purchase Agreement, dated as of November 18, 2011 (as amended, restated, supplemented or otherwise modified, the
“Agreement”), among LPAC CORP., a Delaware corporation ( the “Seller”), LENNOX INDUSTRIES INC., a Delaware corporation, as master servicer thereunder (in such capacity, the “Master
Servicer”), VICTORY RECEIVABLES CORPORATION, a Delaware corporation, as a Purchaser, MUFG BANK, LTD. (formerly known as The Bank of Tokyo-Mitsubishi UFJ, Ltd.), as administrative agent for the Investors (in such capacity, the
“Administrative Agent”), the purchaser agent for the MUFG Purchaser Group (in such capacity, the “MUFG Purchaser Agent”) and a MUFG Liquidity Bank, WELLS FARGO BANK, NATIONAL ASSOCIATION
(“WFB”), as the purchaser agent for the WFB Purchaser Group (in such capacity, the “WFB Purchaser Agent”) and a WFB Liquidity Bank (the “WFB Liquidity Bank”), and PNC BANK,
NATIONAL ASSOCIATION (“PNC”), as the purchaser agent for the PNC Purchaser Group (in such capacity, the “PNC Purchaser Agent”) and a PNC Liquidity Bank (the “PNC Liquidity
Bank”). Capitalized terms used and not otherwise defined in this Amendment shall have the meanings given to such terms in the Agreement. 

Preliminary Statement 

Each of the parties to the Agreement desires to amend the Agreement on the conditions set forth herein. 

NOW, THEREFORE, the signatories hereto agree as follows: 

SECTION 1. Amendment to the Agreement . Effective as of the date hereof in accordance with Section 2 of this Amendment, the
Agreement is hereby amended to read as set forth in Annex A. 
 SECTION 2. Effectiveness . This Amendment shall become effective
as of the date hereof at such time that: 
 (a) each of the Administrative Agent, the MUFG Purchaser Agent, the WFB Purchaser Agent and the
PNC Purchaser Agent shall have received, in form and substance satisfactory to it, executed counterparts of this Amendment; 
 (b) the MUFG
Purchaser Agent, the WFB Purchaser Agent and the PNC Purchaser Agent shall have received an executed Eighth Amended and Restated Fee Letter (the “Eighth A&R Fee Letter”); 

(c) the MUFG Purchaser Agent, the WFB Purchaser Agent and the PNC Purchaser Agent shall have received payment of the Up-Front Fee, in accordance with the terms of, and as such term is defined in, the Eighth A&R Fee Letter; and 

(d) the Administrative Agent and each Purchaser Agent shall have received, in form and substance satisfactory to it, a copy of the resolutions
of the board of directors (or similar governing body) of the Seller and the Master Servicer approving this Amendment and the transactions contemplated hereby, certified by its secretary or any other authorized person. 

 SECTION 3. Transaction Document . This Amendment shall be a Transaction Document
under the Agreement. 
 SECTION 4. Representations and Warranties . Each of the Seller and the Master Servicer makes, as to
itself (except where specifically provided otherwise therein), each of the representations and warranties contained in Section 6.1 of the Agreement (after giving effect to this Amendment). 

SECTION 5. Confirmation of Agreements; No Other Modifications . Each reference in the Agreement to “this Agreement” or
“the Agreement”, or “hereof,” “hereunder” or words of like import, and each reference in any other Transaction Document to the Agreement, shall mean the Agreement as amended by this Amendment, and as hereafter amended
or restated. Except as herein expressly amended, the Agreement is ratified and confirmed in all respects and shall remain in full force and effect in accordance with its terms. 

SECTION 6. Affirmation and Consent of Lennox International . Lennox International hereby consents to this Amendment and hereby
affirms and agrees that the Assurance Agreement is, and shall continue to be, in full force and effect and is hereby ratified and affirmed in all respects. Upon the effectiveness of, and on and after the date of, the Amendment, each reference in the
Assurance Agreement to the Agreement, “thereunder”, “thereof” or words of like import shall mean and be a reference to the Agreement as amended by this Amendment, and as hereafter amended or restated. 

SECTION 7. Costs and Expenses . The Seller agrees to pay on demand all reasonable costs and expenses in connection with the
preparation, execution and delivery of this Amendment, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Administrative
Agent with respect thereto. 
 SECTION 8. GOVERNING LAW . THIS AMENDMENT, INCLUDING THE RIGHTS AND DUTIES OF THE PARTIES
HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF LAW (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW). 
 SECTION 9. Execution in Counterparts . This Amendment may be executed in any number of counterparts and
by the different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same Amendment. Delivery of an executed counterpart of a
signature page to this Amendment by facsimile or by electronic mail in portable document format (.pdf) shall be as effective as delivery of a manually executed counterpart of a signature page of this Amendment. 

  
 2 

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

			
	 LPAC CORP., as Seller

		
	 By:
	 	/s/ Theresa McCray
		 	 Name: Theresa McCray

		 	 Title: President

  

			
	 LENNOX INDUSTRIES INC., as Master Servicer

		
	 By:
	 	 /s/ Theresa McCray

		 	 Name: Theresa McCray

		 	 Title: VP Corp. Tax & Treasurer

  

			
	 LENNOX INTERNATIONAL INC.

		
	 By:
	 	/s/ Theresa McCray
		 	 Name: Theresa McCray

		 	Title: VP Corp. Tax & Treasurer

  
 [Amendment No. 11 to
A&R RPA] 

  

			
	VICTORY RECEIVABLES CORPORATION, as a Purchaser
		
	 By:
	 	/s/ Kevin J. Corrigan
		 	 Name: Kevin J. Corrigan

		 	 Title: Vice President

  

			
	 MUFG BANK, LTD., as Administrative Agent

		
	 By:
	 	/s/ Eric Williams
		 	 Name: Eric Williams

		 	 Title: Managing Director

  

			
	 MUFG BANK, LTD., as MUFG Purchaser Agent

		
	 By:
	 	/s/ Eric Williams
		 	 Name: Eric Williams

		 	 Title: Managing Director

  

			
	 MUFG BANK, LTD., as a Liquidity Bank

		
	 By:
	 	/s/ Eric Williams
		 	 Name: Eric Williams

		 	 Title: Managing Director

  
 [Amendment No. 11 to
A&R RPA] 

 
			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as WFB Purchaser Agent
		
	By:	 	/s/ Darrell Cole
		 	Name: Darrell Cole
		 	Title: Vice President

  

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Liquidity Bank
		
	By:	 	/s/ Darrell Cole
		 	Name: Darrell Cole
		 	Title: Vice President

  
 [Amendment No. 11 to
A&R RPA] 

  

			
	 PNC BANK, NATIONAL ASSOCIATION,
 as
PNC Purchaser Agent

		
	By:	 	/s/ Imad Naja
		 	Name: Imad Naja
		 	Title: Senior Vice President

  

			
	 PNC BANK, NATIONAL ASSOCIATION,
 as
a Liquidity Bank

		
	By:	 	/s/ Imad Naja
		 	Name: Imad Naja
		 	Title: Senior Vice President

  
 [Amendment No. 11 to
A&R RPA] 

 ANNEX A TO AMENDMENT NO. 11 

TO AMENDED AND RESTATED 

RECEIVABLES PURCHASE AGREEMENT 
  

 
  

AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT 

Dated as of November 18, 2011 

Among 
 LPAC CORP., 

as the Seller 
 and 

LENNOX INDUSTRIES INC., 
 as the
Master Servicer 
 and 
 VICTORY
RECEIVABLES CORPORATION, 
 as a Purchaser 

and 
 MUFG BANK, LTD., 

as a Liquidity Bank 
 and 

MUFG BANK, LTD., 
 as
Administrative Agent and the MUFG Purchaser Agent 
 and 

WELLS FARGO BANK, NATIONAL ASSOCIATION, 

as a Liquidity Bank and the WFB Purchaser Agent 

and 
 PNC BANK, NATIONAL
ASSOCIATION, 
 as a Liquidity Bank and the PNC Purchaser Agent 
  

 
  

 TABLE OF CONTENTS 
  

 

							
	 	 	 	  	Page	 
	 Article I. Purchases and Reinvestments
	  	 	3	 
	 Section 1.1
	 	Commitments to Purchase; Limits on Purchasers’ Obligations	  	 	3	 
	 Section 1.2
	 	Purchase Procedures; Assignment of the Investors’ Interests	  	 	4	 
	 Section 1.3
	 	Reinvestments of Certain Collections; Payment of Remaining Collections	  	 	6	 
	 Section 1.4
	 	Asset Interest	  	 	9	 
		
	 Article II. Computational Rules
	  	 	10	 
	 Section 2.1
	 	Selection, Dividing or Combining of Asset Tranches	  	 	10	 
	 Section 2.2
	 	Computation of Invested Amount and Purchaser Group’s Tranche Investment	  	 	10	 
	 Section 2.3
	 	Computation of Concentration Limits and Unpaid Balance	  	 	11	 
	 Section 2.4
	 	Computation of Earned Discount	  	 	11	 
	 Section 2.5
	 	Estimates of Earned Discount Rate, Fees, etc.	  	 	11	 
	 Section 2.6
	 	Replacement LIBOR	  	 	12	 
		
	 Article III. Settlements
	  	 	20	 
	 Section 3.1
	 	Settlement Procedures	  	 	20	 
	 Section 3.2
	 	Deemed Collections; Reduction of Invested Amount, Etc.	  	 	24	 
	 Section 3.3
	 	Payments and Computations, Etc.	  	 	26	 
	 Section 3.4
	 	Treatment of Collections and Deemed Collections	  	 	28	 
	 Section 3.5
	 	Sharing of Payments	  	 	28	 
	 Section 3.6
	 	Repurchase of Asset Interest	  	 	29	 
		
	 Article IV. Fees and Yield Protection
	  	 	29	 
	 Section 4.1
	 	Fees	  	 	29	 
	 Section 4.2
	 	Yield Protection	  	 	29	 
	 Section 4.3
	 	Funding Losses	  	 	31	 
		
	 Article V. Conditions of Purchases
	  	 	31	 
	 Section 5.1
	 	Closing Date; Conditions Precedent to Initial Purchase	  	 	31	 
	 Section 5.2
	 	Conditions Precedent to All Purchases and Reinvestments	  	 	33	 
		
	 Article VI. Representations and Warranties
	  	 	34	 
	 Section 6.1
	 	Representations and Warranties of the Seller Parties	  	 	34	 
		
	 Article VII. General Covenants of the Seller Parties
	  	 	40	 
	 Section 7.1
	 	Affirmative Covenants of the Seller Parties	  	 	40	 
	 Section 7.2
	 	Reporting Requirements of the Seller Parties	  	 	42	 
	 Section 7.3
	 	Negative Covenants of the Seller Parties	  	 	44	 
	 Section 7.4
	 	Separate Corporate Existence of the Seller	  	 	47	 

  
 i 

							
	 Article VIII. Administration and Collection
	  	 	50	 
	 Section 8.1
	 	Designation of Master Servicer	  	 	50	 
	 Section 8.2
	 	Duties of Master Servicer	  	 	51	 
	 Section 8.3
	 	[Reserved]	  	 	52	 
	 Section 8.4
	 	Servicer Defaults	  	 	52	 
	 Section 8.5
	 	Rights of the Administrative Agent	  	 	53	 
	 Section 8.6
	 	Responsibilities of the Seller Parties	  	 	54	 
	 Section 8.7
	 	Further Action Evidencing Purchases and Reinvestments	  	 	54	 
	 Section 8.8
	 	Application of Collections	  	 	55	 
		
	 Article IX. Security Interest
	  	 	56	 
	 Section 9.1
	 	Grant of Security Interest	  	 	56	 
	 Section 9.2
	 	Further Assurances	  	 	56	 
	 Section 9.3
	 	Remedies	  	 	56	 
		
	 Article X. Liquidation Events
	  	 	57	 
	 Section 10.1
	 	Liquidation Events	  	 	57	 
	 Section 10.2
	 	Remedies	  	 	59	 
		
	 Article XI. The Administrative Agent
	  	 	60	 
	 Section 11.1
	 	Administrative Agent Authorization and Action	  	 	60	 
	 Section 11.2
	 	Administrative Agent’s Reliance, Etc.	  	 	60	 
	 Section 11.3
	 	MUFG and Affiliates	  	 	61	 
	 Section 11.4
	 	Liquidity Bank’s Purchase Decision	  	 	61	 
	 Section 11.5
	 	Indemnification of Agent	  	 	61	 
	 Section 11.6
	 	Purchaser Agent Authorization and Action	  	 	61	 
	 Section 11.7
	 	Purchaser Agent’s Reliance, Etc.	  	 	62	 
		
	 Article XII. Assignments
	  	 	62	 
	 Section 12.1
	 	Restrictions on Assignments	  	 	62	 
	 Section 12.2
	 	Rights of Assignee	  	 	63	 
	 Section 12.3
	 	Terms and Evidence of Assignment	  	 	64	 
	 Section 12.4
	 	Rights of Liquidity Banks	  	 	64	 
		
	 Article XIII. Indemnification
	  	 	64	 
	 Section 13.1
	 	Indemnities by the Seller	  	 	64	 
	 Section 13.2
	 	Indemnities by Master Servicer	  	 	67	 
		
	 Article XIV. Miscellaneous
	  	 	68	 
	 Section 14.1
	 	Amendments, Etc.	  	 	68	 
	 Section 14.2
	 	Notices, Etc.	  	 	68	 
	 Section 14.3
	 	No Waiver; Remedies	  	 	68	 
	 Section 14.4
	 	Binding Effect; Survival	  	 	69	 
	 Section 14.5
	 	Costs, Expenses and Taxes	  	 	69	 
	 Section 14.6
	 	No Proceedings	  	 	70	 
	 Section 14.7
	 	Confidentiality of Seller Information	  	 	70	 
	 Section 14.8
	 	Captions and Cross References	  	 	72	 
	 Section 14.9
	 	Integration	  	 	72	 
	 Section 14.10
	 	Governing Law	  	 	73	 

  
 ii 

							
	 Section 14.11
	 	Waiver Of Jury Trial	  	 	73	 
	 Section 14.12
	 	Consent To Jurisdiction; Waiver Of Immunities	  	 	73	 
	 Section 14.13
	 	Execution in Counterparts	  	 	73	 
	 Section 14.14
	 	No Recourse Against Other Parties	  	 	74	 
	 Section 14.15
	 	Severability of Provisions	  	 	74	 
	 Section 14.16
	 	Amendment and Restatement	  	 	74	 
	 Section 14.17
	 	Erroneous Payment	  	 	75	 

 APPENDIX 
  

			
	Appendix A	  	Definitions

 SCHEDULES 
  

			
	Schedule 6.1(n)	  	List of Offices of the Master Servicer and the Seller where Records are Kept
	Schedule 6.1(o)	  	List of Lockbox Banks and Lockbox Accounts
	Schedule 6.1(u)	  	Capitalization of Seller
	Schedule 14.2	  	Notice Addresses

 EXHIBITS 
  

			
	Exhibit 1.2(a)	  	Form of Purchase Request
	Exhibit 3.1(a)	  	Form of Information Package
	Exhibit 3.1(a)-2	  	Form of Weekly Report
	Exhibit A-1	  	Form of Lockbox Agreement
	Exhibit B	  	Form of Certificate of Financial Officer
	Exhibit C	  	Credit and Collection Policy of Lennox Industries Inc.
	Exhibit D	  	Form of Assignment and Acceptance

  
 iii 

 AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT 

Dated as of November 18, 2011 

AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT (the “Agreement”) among: 

(1) LPAC CORP., a Delaware corporation (together with its successors and permitted assigns, the “Seller”), 

(2) LENNOX INDUSTRIES INC., a Delaware corporation (together with its successors, “Lennox”), as master servicer
hereunder (in such capacity, together with any successor master servicer appointed pursuant to Section 8.1, the “Master Servicer”, Lennox in its capacity as the Master Servicer, together with the
Seller, each a “Seller Party” and collectively the “Seller Parties”), 
 (3) VICTORY
RECEIVABLES CORPORATION, a Delaware corporation, as a Purchaser (in such capacity, together with any successors and assigns thereto in such capacity, the “MUFG Purchaser”), 

(4) MUFG BANK, LTD. (formerly known as The Bank of Tokyo-Mitsubishi UFJ, Ltd.) (“MUFG”), as (a) administrative
agent for the Investors (in such capacity, together with any successors and assigns thereto in such capacity, the “Administrative Agent”), (b) the purchaser agent for the MUFG Purchaser Group (in such capacity, together
with any successors and assigns thereto in such capacity, the “MUFG Purchaser Agent”) and (c) a MUFG Liquidity Bank, 

(5) WELLS FARGO BANK, NATIONAL ASSOCIATION (“WFB”), as (a) the purchaser agent for the WFB Purchaser Group (in
such capacity, together with any successors and assigns thereto in such capacity, the “WFB Purchaser Agent”) and (b) a WFB Liquidity Bank, and 

(6) PNC BANK, NATIONAL ASSOCIATION (“PNC”), as (a) the purchaser agent for the PNC Purchaser Group (in such
capacity, together with any successors and assigns thereto in such capacity, the “PNC Purchaser Agent”) and (b) a PNC Liquidity Bank. 

Unless otherwise indicated, capitalized terms used in this Agreement are defined in Appendix A. 

Background 
 1. As of the
date hereof, Lennox owns 100% of the issued and outstanding capital stock of the Seller, a special purpose corporation. 
 2. The
Originators are engaged in the heating, ventilating, air conditioning and refrigeration businesses. 

 3. On June 19, 2000, Lennox, Heatcraft Inc. and the Seller entered into a
“Purchase and Sale Agreement” (as amended, modified or supplemented prior to the date of the A&R Sale Agreement (as defined below), the “Initial Sale Agreement”) under which Lennox and Heatcraft Inc. transferred
certain Receivables and Related Rights (each as defined in the Initial Sale Agreement) to the Seller as part of the capitalization of the Seller and thereafter Lennox and Heatcraft Inc. sold and contributed to the Seller, and the Seller purchased
and accepted as contributions from Lennox and Heatcraft Inc., Receivables and Related Rights (each as defined in the Initial Sale Agreement). On November 25, 2009, Lennox and the Seller agreed to amend and restate the Initial Sale Agreement
pursuant to the “Amended and Restated Purchase and Sale Agreement” (as amended, modified or supplemented prior to the date hereof, the “A&R Sale Agreement”) under which Lennox continued to sell and contribute to the
Seller, and the Seller continued to purchase and accept as contributions from Lennox, Receivables and Related Rights (each as defined in the A&R Sale Agreement). Concurrently with the execution of this Agreement, Lennox, Allied, Heatcraft
Refrigeration, Lennox Hearth and the Seller agreed to amend and restate the A&R Sale Agreement pursuant to the Sale Agreement under which each of Lennox, Allied, Heatcraft Refrigeration and Lennox Hearth sell and contribute to the Seller, and
the Seller purchases and accepts as contributions from Lennox, Allied, Heatcraft Refrigeration and Lennox Hearth, all of their respective right, title and interest in and to the Pool Receivables and certain related property in accordance with the
terms and subject to the conditions set forth in the Sale Agreement. In March, 2012, Lennox Hearth was removed as an Originator. 
 4. On
November 25, 2009, the Seller, the Master Servicer, the MUFG Purchaser, the MUFG Purchaser Agent, the MUFG Liquidity Bank and the Administrative Agent entered into a Receivables Purchase Agreement (as amended, modified or supplemented prior to
the date hereof, the “Prior RPA”) under which the Seller has sold, and the Purchasers (as defined in the Prior RPA) (or to the extent any such Purchaser declines, each Liquidity Bank (as defined in the Prior RPA) in such
Purchaser’s Purchaser Group (as defined in the Prior RPA)) has purchased, from time to time, undivided percentage ownership interests, referred to therein as the Asset Interest (as defined in the Prior RPA), in the Pool Receivables (as defined
in the Prior RPA) and related property. 
 5. The Seller has requested the Purchasers, and the Purchasers (or to the extent any Purchaser in
a Purchaser Group declines or any Purchaser Group has no Purchasers, each Liquidity Bank in such Purchaser Group party hereto) have agreed, subject to the terms and conditions contained in this Agreement, to continue to purchase from the Seller from
time to time undivided percentage ownership interests, referred to herein as the Asset Interest, in the Pool Receivables and related property. 

6. The Seller and the Investors also desire that, subject to the terms and conditions of this Agreement, certain of the daily Collections in
respect of the Asset Interests be reinvested in Pool Receivables, which reinvestment shall constitute part of the Asset Interests. 
 7. The
parties to this Agreement also desire that, pursuant to the terms hereof, Lennox be appointed, and act, as the initial Master Servicer of the Pool Receivables and related property. 

  
 2 

 8. MUFG has been requested, and is willing, to act as the Administrative Agent and the MUFG
Purchaser Agent under this Agreement. On November 13, 2017, WFB has been requested, and is willing, to act as the WFB Purchaser Agent under this Agreement. On August 17, 2018 (the “Eighth Amendment Date”), PNC has
been requested, and is willing, to act as the PNC Purchaser Agent under this Agreement. 
 9. The parties hereto wish to amend and restate
the Prior RPA in its entirety. 
 NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained, the parties
hereto hereby agree that the Prior RPA shall be amended and restated in its entirety as follows: 
 Article I. 

Purchases and Reinvestments 

Section 1.1 Commitments to Purchase; Limits on Purchasers’ Obligations. 

Upon the terms and subject to the conditions of this Agreement (including, without limitation, Article V), from time to time prior
to the Termination Date, (i) with respect to the Committed Tranche, the Seller may request that the Investors purchase from the Seller undivided percentage ownership interests in Pool Receivables and Related Assets, and (a) the Purchasers
may, in their sole discretion, make such purchase, or (b) if (x) any Purchaser in a Purchaser Group shall decline to make such Purchase or (y) any Purchaser Group has no Purchasers, one or more Liquidity Banks party to this Agreement in
such Purchaser Group shall make such purchase (in any such case, each being a “Committed Purchase”) and (ii) with respect to the Uncommitted Tranche, the Seller may request that the Investors purchase from
the Seller undivided percentage ownership interests in Pool Receivables and Related Assets, and (a) the Purchasers may, in their sole discretion, make such purchase, or (b) if (x) any Purchaser in a Purchaser Group shall decline to make
such Purchase or (y) any Purchaser Group has no Purchasers, one or more Liquidity Banks party to this Agreement in such Purchaser Group may, in their sole discretion, make such purchase (in any such case, each being an “Uncommitted
Purchase”, and each Uncommitted Purchase and Committed Purchase, each being a “Purchase”); provided that no Purchase shall be made by any Investor if, after giving effect thereto (and after giving effect
to any reductions in the Invested Amount or any Purchaser Group Invested Amount to be made on the date of such Purchase (whether from the distributions of Collections or otherwise)), (i) the Invested Amount would exceed the Purchase Limit in
effect at such time, (ii) the Purchaser Group Invested Amount of such Investor’s Purchaser Group would exceed such Purchaser Group’s Purchaser Group Limit in effect at such time or (iii) the Asset Interest would exceed 100% (the
“Allocation Limit”); provided, further that Seller may only make a Purchase request with respect to the Uncommitted Tranche in the event the Committed Tranche is fully drawn; provided, further that
any increase in the Purchase Limit when Invested Amounts under the Uncommitted Tranche are outstanding shall constitute a deemed Purchase request in an amount equal to the lesser of (i) such increased Purchase Limit and (ii) the
outstanding Uncommitted Tranche Invested Amounts, and the proceeds of such deemed Purchase shall be applied in reduction, in whole or in part, of such Uncommitted Tranche Invested Amounts; and provided, further that each Purchase made
pursuant to this Section 1.1 shall have a purchase price equal to 

  
 3 

 
at least $1,000,000 and shall be an integral multiple of $100,000. Notwithstanding anything to the contrary herein, the amount available for any Purchase hereunder shall be calculated based on
the most recently delivered Information Package and not based on the most recently delivered Interim Information Package; provided, however that no Purchases shall be permitted hereunder if the calculations in any Interim Information
Package delivered after the most recently delivered Information Package show that (either before or after giving effect to such Purchase) (i) the Invested Amount would exceed the Purchase Limit in effect at such time, (ii) the Purchaser
Group Invested Amount of any Purchaser Group would exceed the Purchaser Group Limit of such Purchaser Group in effect at such time, or (iii) the Asset Interest would exceed the Allocation Limit. 

Section 1.2 Purchase Procedures; Assignment of the Investors’ Interests. 

(a) Purchase Request. 

(i) Each Purchase from the Seller by the Purchasers or the Liquidity Banks, as applicable, shall be made on notice from the
Seller to the Administrative Agent and each Purchaser Agent (on behalf of the Investors in such Purchaser Agent’s Purchaser Group) received by the Administrative Agent and each such Purchaser Agent not later than 12:00 noon (New York City time)
on the first (1st) Business Day preceding the date of such proposed Purchase, with respect to the Committed Tranche, and the fifth (5th)
Business Day preceding the date of such proposed Purchase, with respect to the Uncommitted Tranche. Each such notice of a proposed Purchase shall be substantially in the form of Exhibit 1.2(a) and shall specify, among other items, the desired
amount to be paid to the Seller and the date of such Purchase. The Administrative Agent shall promptly forward such notice, together with the Administrative Agent’s determination of the Pro Rata Share of such desired purchase amount for each
Purchaser Group, to each Purchaser Agent (on behalf of the Investors in such Purchaser Agent’s Purchaser Group) by telecopier or e-mail. Each Purchaser Agent which has a Purchaser in its Purchaser Group
shall promptly upon receipt notify such Purchaser of any such notice. 
 (ii) With respect to the Committed Tranche, if
(x) any Purchaser in a Purchaser Group has determined not to make the proposed purchase or (y) any Purchaser Group has no Purchaser, the Purchaser Agent of such Purchaser Group shall promptly send notice of the proposed purchase to each
Liquidity Bank in such Purchaser Group by telecopier or e-mail specifying the date of such proposed purchase, and such Liquidity Bank’s Percentage multiplied by the Pro Rata Share with respect to such
Purchaser Group of the amount of such Purchase. 
 (iii) With respect to the Uncommitted Tranche, if any Investor in a
Purchaser Group has determined to make the proposed purchase, the Purchaser Agent of such Purchaser Group shall notify Seller and Administrative Agent in writing no later than 12:00 noon (New York City time) on the third (3rd) Business Day preceding the date of such proposed Purchase whether or not any Investors in its Purchaser Group have determined, in their sole discretion, to make the requested Uncommitted Purchase,
in whole or in part, pursuant to the related Purchase request and subject to the conditions set forth in this Agreement (each such written acceptance of the related Purchase request 

  
 4 

 
with respect to any Purchaser Group, a “Purchase Acceptance”); provided, however, that the failure of any Purchaser Agent to so notify Seller and Administrative Agent, by 12:00
noon (New York City time) on the third (3rd) Business Day preceding the date of such proposed Purchase, of the determination of the Investors in its Purchaser Group, shall be deemed a rejection by
the Investors in such Purchaser Group to make such requested Uncommitted Purchase. In the event that one or more Purchaser Groups reject (or is deemed to have rejected) any requested Uncommitted Purchase (any such Purchaser Group, solely with
respect to the related Purchase request, a “Rejecting Purchaser Group”), Seller may send a written request (each such request, a “Supplemental Purchase Request”) to the Administrative Agent and the Purchaser Agents
for each of the Purchaser Groups that delivered a Purchase Acceptance (any such Purchaser Group, solely with respect to the related Purchase Request, an “Accepting Purchaser Group”), no later than 12:00 noon (New York City time) on
the first (1st) Business Day preceding the date of such proposed Purchase, requesting that each Accepting Purchaser Group makes an additional purchase on the date of such proposed Purchase in
accordance with the Supplemental Purchase Request in an amount equal to such Accepting Purchaser Group’s Pro Rata Share (Secondary Allocation). Each Purchaser Agent for an Accepting Purchaser Group shall notify Seller and Administrative Agent
in writing no later than 12:00 noon (New York City time) on the date of such proposed Purchase whether or not any Investors in its Accepting Purchaser Group have determined, in their sole and absolute discretion, to make the requested Uncommitted
Purchase, in whole or in part, pursuant to the Supplemental Purchase Request and subject to the conditions set forth in this Agreement (each such written acceptance of a Supplemental Purchase Request with respect to any Accepting Purchaser Group, a
“Supplemental Purchase Acceptance”); provided, however, that the failure of any Purchaser Agent to so notify Seller and Administrative Agent, by 12:00 noon (New York City time) on the date of such proposed Purchase, of the
determination of the Investors in its Accepting Purchaser Group, shall be deemed a rejection by the Investors in such Accepting Purchaser Group to make such requested Uncommitted Purchase set forth in such Supplemental Purchase Request. 

(iv) The Seller shall not request more than one Purchase in any calendar week; provided that any Supplemental Purchase Request
shall not constitute an additional Purchase request. 
 (b) Funding of Purchase. 

(i) On the date of each Purchase, (i) with respect to the Committed Tranche, the Investors in each Purchaser Group shall,
upon satisfaction of the applicable conditions set forth in Article V, make available to the Seller (through the Purchaser Agent of such Investors’ Purchaser Group) its applicable Pro Rata Share of the amount of the
Purchase and (ii) with respect to the Uncommitted Tranche, the Investors in each Purchaser Group may, upon satisfaction of the applicable conditions set forth in Article V, make available to the Seller (through the
Purchaser Agent of such Investors’ Purchaser Group) those amounts such Investors have agreed to fund in accordance with Section 1.2(a)(iii), in each case, in same day funds by wire transfer to the Seller’s
Account. 

  
 5 

 (ii) Each Liquidity Bank’s obligation shall be several, such that the
failure of any Liquidity Bank to make available to the Seller any funds in connection with any purchase shall not relieve any other Liquidity Bank of its obligation, if any, hereunder to make funds available on the date of such purchase, but no
Liquidity Bank shall be responsible for the failure of any other Liquidity Bank to make funds available in connection with any purchase. 

(iii) No Investor in any Purchaser Group shall (x) be obligated to make any Uncommitted Purchase, (y) be obligated to
make any commitment with respect to any Uncommitted Purchase or (z) be responsible for the failure of any other Investor or Purchaser Group to make funds available in connection with any Uncommitted Purchase. 

(c) Assignment of Asset Interests. The Seller hereby sells, assigns and transfers to the Administrative Agent, for the benefit of the
applicable Investors in each Purchaser Group making each Purchase, effective on and as of the date of such Purchase and each Reinvestment hereunder, an undivided percentage ownership interest, to the extent of the portion of the Asset Interest then
being purchased, in the Pool Receivables and the Related Assets with respect thereto. 
 Section 1.3 Reinvestments of Certain
Collections; Payment of Remaining Collections. 
 (a) On the close of business on each day during the period from the date of the
first Purchase to the Final Payout Date, the Master Servicer will, out of all Collections received on such day: 
 (i)
determine the portion of the Collections attributable to the Asset Interest by multiplying (A) the amount of such Collections times (B) the lesser of (i) the Asset Interest and (ii) 100%; 

(ii) out of the portion of such Collections allocated to the Asset Interest pursuant to clause (i)
above, identify and hold in trust for the Purchaser Agents on behalf and for the benefit of their respective Purchaser Groups (provided that unless otherwise requested by any Purchaser Agent, on behalf of such Purchaser Agent’s Purchaser
Group, such Collections shall not be required to be held in a separate account) an amount equal to the sum of the estimated amount of Earned Discount and CP Costs accrued in respect of each Asset Tranche (based on the rate information provided by
each Agent pursuant to Section 2.5), all other amounts due to the Investors or the Agents hereunder and the Investors’ Share of the Servicing Fee allocable pursuant to Section 3.1(d) (in each
case, accrued through such day) and not so previously identified; and 
 (iii) apply the Collections allocated to the Asset
Interest pursuant to clause (i) above and not required to be identified and held in trust pursuant to clause (ii) above to the purchase from the Seller of undivided percentage ownership interests
in Pool Receivables and the Related Assets with respect to such Pool Receivables (each such purchase being a “Reinvestment”); provided that: 

  
 6 

 (A) if, after giving effect to such Reinvestment, (i) the Asset
Interest would exceed the Allocation Limit, (ii) the Purchaser Group Invested Amount of any Purchaser Group would exceed such Purchaser Group’s Purchaser Group Limit in effect at such time or (iii) the Invested Amount would exceed the
Purchase Limit in effect at such time, then the Master Servicer shall not make such Reinvestment, but shall identify and hold in trust for the benefit of the Investors, a portion of such Collections which, together with other Collections previously
identified and then so held, shall equal the amount necessary to reduce (x) the Invested Amount to the Purchase Limit in effect at such time, (y) any Purchaser Group’s Purchaser Group Invested Amount to such Purchaser Group’s
Purchaser Group Limit in effect at such time and (z) the Asset Interest to the Allocation Limit; and 
 (B) if any of
the conditions precedent to Reinvestment in Section 5.2, subject to the proviso set forth in Section 5.2, are not satisfied, then the Master Servicer shall not reinvest any of such remaining
Collections, but shall identify them and hold them in trust for the benefit of the Investors; and 
 (C) if the Seller has
commenced an optional reduction in the Invested Amount pursuant to Section 3.2(b), then the Master Servicer shall not reinvest any such remaining Collections until the amount not reinvested shall equal the desired reduction
amount; 
 (iv) out of the portion of Collections not allocated to the Asset Interest pursuant to
clause (i) above, pay to the Master Servicer or set aside (at the option of the Master Servicer) the Seller’s Share of the Servicing Fee accrued through such day and not previously paid; and 

(v) pay to the Seller (A) the remaining portion of Collections not allocated to the Asset Interest pursuant to
clause (i) above and (B) the Collections applied to Reinvestment pursuant to clause (iii) above. 

(b) Unreinvested Collections. The Master Servicer shall identify and hold in trust for the benefit of the Investors, all Collections
which, pursuant to clause (iii) of Section 1.3(a), may not be reinvested in the Pool Receivables and the Related Assets, provided that unless otherwise requested by any Agent, such
Collections need not be held in a segregated account. If, prior to the date when such Collections are required to be paid to any Purchaser Agent pursuant to Section 1.3(c)(iv), the amount of Collections so identified
exceeds the amount, if any, necessary to reduce (i) the Invested Amount to the Purchase Limit in effect at such time, (ii) the Purchaser Group Invested Amount of each Purchaser Group to the Purchaser Group Limit of such Purchaser Group in
effect at such time and (iii) the Asset Interest to the Allocation Limit, and the conditions precedent to Reinvestment set forth in Section 5.2, subject to the proviso set forth in
Section 5.2, are satisfied, then the Master Servicer shall apply such Collections (or, if less, a portion of such Collections equal to the amount of such excess) to the making of a Reinvestment. 

  
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 (c) Payment of Amounts. 

(i) The Master Servicer shall pay all amounts of Collections identified pursuant to Section 1.3(a)(ii) in respect of
Earned Discount on an Asset Tranche funded by a Liquidity Funding to the Purchaser Agent of each applicable Purchaser Group, on behalf of each Investor which funded such Liquidity Funding, on (x) other than with respect to the WFB Purchaser
Group and the PNC Purchaser Group, the last day of the then current Yield Period for such Asset Tranche and (y) with respect to the WFB Purchaser Group and the PNC Purchaser Group, on the Settlement Date following the last day of each Yield
Period for such Asset Tranche, in each case, as provided in Section 3.1. 
 (ii) The Master
Servicer shall pay all amounts of Collections identified pursuant to Section 1.3(a)(ii) in respect of CP Costs on an Asset Tranche funded by Commercial Paper Notes, to the Purchaser Agent of each applicable Purchaser Group,
on behalf of the applicable Purchaser in such Purchaser Agent’s Purchaser Group, on the Settlement Date following the last day of each CP Accrual Period for such Asset Tranche, as provided in Section 3.1. 

(iii) The Master Servicer shall pay all amounts of Collections identified pursuant to
Section 1.3(a)(ii) and not applied pursuant to clauses (i) or (ii) above to each Purchaser Agent, on behalf of such Purchaser Agent’s Purchaser Group, on each Settlement Date for
each Collection Period, as provided in Section 3.1. 
 (iv) The Master Servicer shall pay all
amounts of Collections identified pursuant to Section 1.3(b) to the Administrative Agent, for prompt distribution to each Purchaser Agent, (A) on the last day of the then current Yield Period for any Asset Tranche of
such Purchaser Agent’s Purchaser Group funded by a Liquidity Funding, as provided in Section 3.1(b), in an amount not exceeding such Purchaser Group’s Tranche Investment of such Asset Tranche, and (B) on the
last day of the then current CP Accrual Period for any Asset Tranche of such Purchaser Agent’s Purchaser Group funded by Commercial Paper Notes, as provided in Section 3.1(b), in an amount not exceeding such Purchaser
Group’s Tranche Investment of such Asset Tranche. 
 (d) Funds Under Sale Agreement. Upon the written request of the
Administrative Agent, at the request of any Purchaser Agent, given at any time when (i) based on the most recent Information Package, or Interim Information Package, as the case may be, either (A) the Asset Interest would exceed the
Allocation Limit, (B) any Purchaser Group’s Purchaser Group Invested Amount would exceed such Purchaser Group’s Purchaser Group Limit in effect at such time or, (C) the Invested Amount would exceed the Purchase Limit in effect at
such time, or (ii) a Liquidation Event or Unmatured Liquidation Event shall have occurred and be continuing, the Seller shall identify all funds that under the Sale Agreement would be applied to repay principal of the Initial Seller Notes (as
defined in the Sale Agreement) owing to the Originators. The Seller may make withdrawals of such funds only for the purposes of (x) at any time, purchasing Receivables from an Originator in accordance with the Sale Agreement; (y) on the
Settlement Date for any Collection Period, making payments in accordance with the last sentence of Section 3.1(c)(ii), and (z) on the Settlement Date for any Collection Period, if, on the basis of the most recent
Information Package or Interim Information Package, as the case may be, and 

  
 8 

 
after giving effect to any payment made to the Master Servicer on such date pursuant to the last sentence of Section 3.1(c)(ii), (I) the Invested Amount does not
exceed the Purchase Limit in effect at such time, (II) no Purchaser Group Invested Amount exceeds the related Purchaser Group Limit in effect at such time and (III) the Asset Interest does not exceed the Allocation Limit, and
provided that no Liquidation Event or Unmatured Liquidation Event shall have occurred and be continuing, repaying principal of the Initial Seller Notes in accordance with this Agreement and the Sale Agreement. 

Section 1.4 Asset Interest. 

(a) Components of Asset Interest. On any date the Asset Interest will represent the Investors’ undivided percentage ownership
interest in all then outstanding Pool Receivables and all Related Assets with respect to such Pool Receivables as at such date. 
 (b)
Computation of Asset Interest. On any date, the Asset Interest will be equal to the percentage equivalent of the following fraction: 

IA+RR 
 NPB 

where: 
 IA    
=     the Invested Amount on the date of such computation; 
 RR     =     the
Required Reserve on the date of such computation; and 
 NPB     =     the Net Pool Balance on the
date of such computation; 
 provided, however, that the Asset Interest during the Liquidation Period shall equal 100%. 

(c) Frequency of Computation. The Asset Interest shall be computed (i) as provided in Section 3.1, as of
the Cut-Off Date for each Collection Period, and (ii) on the Settlement Date following each Reporting Date, after giving effect to the payments made pursuant to Section 3.1. In
addition, at any time, the Administrative Agent, at the request of any Purchaser Agent, may require the Master Servicer to provide an interim report (an “Interim Information Package”), based on the information then available
to the Master Servicer, for purposes of computing the Asset Interest, any Purchaser Group Invested Amount or the Invested Amount as of any other date, and the Master Servicer agrees to do so within five (5) (or three (3), if a Liquidation
Event, Unmatured Liquidation Event or a Credit Event has occurred and is continuing) Business Days of its receipt of the Administrative Agent’s request (such date, the “Interim Reporting Date”). 

  
 9 

 Article II. 

Computational Rules 

Section 2.1 Selection, Dividing or Combining of Asset Tranches. 

Each Purchaser Agent shall, from time to time for purposes of computing Earned Discount on that portion of the Asset Interest funded with
Liquidity Fundings made by such Purchaser Agent’s Purchaser Group, divide any Asset Interest into Asset Tranches or combine two or more Asset Tranches into one Asset Tranche. The applicable Earned Discount Rate may be different for each Asset
Tranche funded by a Liquidity Funding. The Purchaser Group Invested Amount of such Purchaser Agent’s Purchaser Group shall be allocated to each Asset Tranche by such Purchaser Agent, on behalf of the Investors in such Purchaser Agent’s
Purchaser Group, to reflect the funding sources for the Asset Interest, so that: 
 (a) there will be a single Asset Tranche equal to the
excess of the applicable Purchaser Group Invested Amount over the aggregate amount allocated at such time pursuant to clause (b) below, which Asset Tranche shall reflect the portion of the Asset Interest funded by
Commercial Paper Notes of the Purchasers in such Purchaser Group, if any; and 
 (b) there may be one or more Asset Tranches, selected by
such Purchaser Agent, on behalf of the Liquidity Banks in such Purchaser Agent’s Purchaser Group, reflecting the portion or portions of the Asset Interest funded by outstanding Liquidity Fundings of such Purchaser Group. 

Section 2.2 Computation of Invested Amount and Purchaser Group’s Tranche Investment. 

In making any determination of the Invested Amount, any Purchaser Group Invested Amount and any Purchaser Group’s Tranche Investment, the
following rules shall apply: 
 (a) the Invested Amount and each Purchaser Group Invested Amount, as the case may be, shall not be
considered reduced by any allocation, setting aside or distribution of any portion of Collections unless such Collections shall have been actually delivered hereunder to the appropriate Purchaser Agent, on behalf of the Investors in such Purchaser
Agent’s Purchaser Group; 
 (b) the Invested Amount and each Purchaser Group Invested Amount, as the case may be, shall not be
considered reduced by any distribution of any portion of Collections if at any time such distribution is rescinded or must otherwise be returned for any reason; and 

(c) if there is any reduction in the Invested Amount or any Purchaser Group Invested Amount, as the case may be, there shall be a
corresponding reduction to each applicable Purchaser Group’s Tranche Investment with respect to one or more Asset Tranches selected by each Purchaser Agent, on behalf of such Purchaser Agent’s Purchaser Group, in its discretion. 

  
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 Section 2.3 Computation of Concentration Limits and Unpaid Balance. 

The Obligor Concentration Limits and the aggregate Unpaid Balance of Pool Receivables of any Obligor and its Affiliated Obligors (if any)
shall be calculated as if such Obligor and its Affiliated Obligors were one Obligor. 
 Section 2.4 Computation of Earned
Discount. 
 In making any determination of Earned Discount, the following rules shall apply: 

(a) each Purchaser Agent, on behalf of the Liquidity Banks in such Purchaser Agent’s Purchaser Group, shall determine the Earned Discount
accruing with respect to each Asset Tranche funded by a Liquidity Funding of such Purchaser Group for each Yield Period, in accordance with the definition of Earned Discount; 

(b) no provision of this Agreement shall require the payment or permit the collection of Earned Discount in excess of the maximum permitted by
applicable law; and 
 (c) the Earned Discount for any Asset Tranche shall not be considered paid by any distribution if at any time such
distribution is rescinded or must otherwise be returned for any reason. 
 It is the intent of the Purchasers to fund their portion of the Asset Interest by
the issuance of Commercial Paper Notes. If, for any reason, any Purchaser is unable, or determines that it is undesirable, to issue Commercial Paper Notes to fund its portion of the Asset Interest, or is unable to repay such Commercial Paper Notes
upon the maturity thereof, either such Purchaser will draw on Liquidity Fundings by a Liquidity Bank in such Purchaser’s Purchaser Group or such Liquidity Bank will make a Purchase directly, to the extent available. If any Purchaser makes such
a Liquidity Funding, the Earned Discount will be payable by the Seller based on the Bank Rate with respect to such portion of the Asset Interest funded by such Liquidity Funding. 

Section 2.5 Estimates of Earned Discount Rate, Fees, etc. 

For purposes of determining the amounts required to be identified by Master Servicer pursuant to Section 1.3, each
Purchaser Agent, on behalf of the Investors in such Purchaser Agent’s Purchaser Group, shall notify (x) the Master Servicer (and, if Lennox is not the Master Servicer, the Seller) and the Administrative Agent from time to time of such
Purchaser Group’s Tranche Investment of each Asset Tranche and the Earned Discount Rate applicable to each Asset Tranche funded by a Liquidity Funding of such Purchaser Group and (y) the Master Servicer (and, if Lennox is not the Master
Servicer, the Seller) and, solely to the extent requested by it in its reasonable discretion, the Administrative Agent, the CP Costs applicable to each Asset Tranche funded by Commercial Paper Notes of such Purchaser Group and the rates at which
fees and other amounts are accruing hereunder. It is understood and agreed that (a) the CP Costs for any Asset Tranche funded by the issuance of Commercial Paper Notes for any Purchaser Group are determined in arrears and may change from one
applicable CP Accrual Period to the next, (b) the Earned Discount Rate for any Asset Tranche funded by a Liquidity Funding of any Purchaser Group may change from one applicable Yield Period to the next, and the Bank Rate, the WFB LIBO Rate and
the PNC LIBO Rate used to calculate the Earned 

  
 11 

 
Discount Rate may change from time to time during an applicable Yield Period, (c) certain rate information provided by any Purchaser Agent to the Master Servicer and the Administrative Agent
shall be based upon such Purchaser Agent’s good faith estimate, (d) the amount of Earned Discount actually accrued with respect to an Asset Tranche funded by a Liquidity Funding of any Purchaser Group during any Yield Period may exceed, or
be less than, the amount identified with respect thereto by Master Servicer, and (e) the amount of fees or other amounts payable by the Seller hereunder which have accrued hereunder with respect to any Collection Period may exceed, or be less
than, the amount identified with respect thereto by the Master Servicer. Failure to identify any amount so accrued shall not relieve the Master Servicer of its obligation to remit Collections to each Purchaser Agent, on behalf of the Investors in
such Purchaser Agent’s Purchaser Group, with respect to such accrued amount, as and to the extent provided in Section 3.1. 

Section 2.6 Replacement LIBOR. 

(a) Benchmark Replacement. 

(i) Notwithstanding anything to the contrary herein or in any other Transaction Document, if a Benchmark Transition Event, an
Early Opt-in Election or an Other Benchmark Rate Election, as applicable, and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current
Benchmark, then (x) if a Benchmark Replacement is determined in accordance with clause (a)(1) or (a)(2) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such
Benchmark for all purposes hereunder and under any Transaction Document in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Agreement or any other
Transaction Document and (y) if a Benchmark Replacement is determined in accordance with clause (a)(3) or clause (c) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement
will replace such Benchmark for all purposes hereunder and under any Transaction Document in respect of any Benchmark setting at or after 5:00 p.m. (New York City time) on the fifth (5th) Business
Day after the date notice of such Benchmark Replacement is provided to the Purchaser Agents without any amendment to, or further action or consent of any other party to, this Agreement or any other Transaction Document so long as the Administrative
Agent has not received, by such time, written notice of objection to such Benchmark Replacement from any Purchaser Agent. 

(ii) Notwithstanding anything to the contrary herein or in any other Transaction Document, if a Term SOFR Transition Event and
its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then the applicable Benchmark Replacement will replace the then-current Benchmark for all purposes hereunder or
under any Transaction Document in respect of such Benchmark setting and subsequent Benchmark settings, without any amendment to, or further action or consent of any other party to, this Agreement or any other Transaction Document; provided that this
clause (ii) shall not be effective unless the Administrative Agent has delivered to the Purchaser Agents and the Seller a Term SOFR Notice. For the avoidance of doubt, the Administrative Agent shall not be required to deliver a Term SOFR Notice
after a Term SOFR Transition Event and may elect or not elect to do so in its sole discretion. 

  
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 (b) Benchmark Replacement Conforming Changes. In connection with the implementation
of a Benchmark Replacement, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Transaction Document, any amendments
implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Transaction Document. 

(c) Notices; Standards for Decisions and Determinations. The Administrative Agent will promptly notify the Seller and the Purchaser
Agents of (i) any occurrence of a Benchmark Transition Event, a Term SOFR Transition Event, an Early Opt-in Election or an Other Benchmark Rate Election, as applicable, and its related Benchmark
Replacement Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes, (iv) the removal or reinstatement of any tenor of a Benchmark pursuant to clause
(d) below and (v) the commencement or conclusion of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Administrative Agent or, if applicable, any Purchaser Agent pursuant to this
Section 2.6, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take
or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Agreement or any other Transaction Document,
except, in each case, as expressly required pursuant to this Section 2.6. 
 (d) Unavailability of Tenor of
Benchmark. Notwithstanding anything to the contrary herein or in any other Transaction Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate
(including Term SOFR or USD LIBOR) and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable
discretion or (B) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is or will be no longer representative, then the
Administrative Agent may modify the definition of “Yield Period” for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (ii) if a tenor that
was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is
or will no longer be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify the definition of “Yield Period” for all Benchmark settings at or after such time to reinstate such
previously removed tenor. 
 (e) Benchmark Unavailability Period. Upon the Seller’s receipt of notice of the commencement of a
Benchmark Unavailability Period, yield will be computed at the Base Rate. 

  
 13 

 (f) London Interbank Offered Rate Benchmark Transition Event. On March 5, 2021,
the ICE Benchmark Administration (the “IBA”), the administrator of the London interbank offered rate, and the Financial Conduct Authority (the “FCA”), the regulatory supervisor of the IBA, announced in
public statements (the “Announcements”) that the final publication or representativeness date for (i) 1-week and 2-month London interbank offered
rate tenor settings will be December 31, 2021 and (ii) overnight, 1-month, 3-month, 6-month and 12-month London interbank offered rate tenor settings will be June 30, 2023. No successor administrator for the IBA was identified in such Announcements. The parties hereto agree and acknowledge that the
Announcements resulted in the occurrence of a Benchmark Transition Event with respect to the London interbank offered rate pursuant to the terms of this Agreement and that any obligation of the Administrative Agent to notify any parties of such
Benchmark Transition Event pursuant to clause (c) of this Section 2.6 shall be deemed satisfied. 
 (g)
Certain Defined Terms. As used in this Section 2.6:  
 Available Tenor: As of any date
of determination and with respect to the then-current Benchmark, as applicable, (x) if the then-current Benchmark is a term rate, any tenor for such Benchmark or (y) otherwise, any payment period for interest calculated with reference to
such Benchmark, as applicable, that is or may be used for determining the length of an Yield Period pursuant to this Agreement as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the
definition of “Yield Period” pursuant to clause (d) of this Section 2.6. 
 Benchmark:
Initially, USD LIBOR; provided that if a Benchmark Transition Event, a Term SOFR Transition Event, an Early Opt-in Election or an Other Benchmark Rate Election, as applicable, and its related Benchmark
Replacement Date have occurred with respect to USD LIBOR or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate
pursuant to clause (a) of this Section 2.6. 
 Benchmark Replacement: For any Available Tenor, 

 

	 	(a)	 with respect to any Benchmark Transition Event or Early Opt-in
Election, the first alternative set forth in the order below that can be determined by the Administrative Agent for the applicable Benchmark Replacement Date: 

 

	 	(1)	 the sum of: (A) Term SOFR and (B) the related Benchmark Replacement Adjustment;

  

	 	(2)	 the sum of: (A) Daily Simple SOFR and (B) the related Benchmark Replacement Adjustment;

  

	 	(3)	 the sum of: (A) the alternate benchmark rate that has been selected by the Administrative Agent and the
Seller as the replacement for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the
Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement for the then-current Benchmark for U.S. dollar-denominated syndicated credit facilities at such time and
(B) the related Benchmark Replacement Adjustment; 

  
 14 

	 	(b)	 with respect to any Term SOFR Transition Event, the sum of (i) Term SOFR and (ii) the related
Benchmark Replacement Adjustment; or 

  

	 	(c)	 with respect to any Other Benchmark Rate Election, the sum of: (i) the alternate benchmark rate that has
been selected by the Administrative Agent and the Seller as the replacement for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to any evolving or then-prevailing market convention for determining a
benchmark rate as a replacement for the then-current Benchmark for U.S. dollar-denominated syndicated credit facilities at such time and (ii) the related Benchmark Replacement Adjustment; 

provided that, in the case of clause (a)(1) or clause (b), the applicable Unadjusted Benchmark Replacement is displayed on a screen or
other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion. If the Benchmark Replacement as determined pursuant to clause (a)(1), (a)(2) or (a)(3), clause (b) or
clause (c) above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Transaction Documents. 

Benchmark Replacement Adjustment: With respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement
for any applicable Yield Period and Available Tenor for any setting of such Unadjusted Benchmark Replacement: 
  

	 	(1)	 for purposes of clauses (a)(1) and (a)(2) of the definition of “Benchmark Replacement,” the first
alternative set forth in the order below that can be determined by the Administrative Agent: 

  

	 	(a)	 the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a
positive or negative value or zero) as of the Reference Time such Benchmark Replacement is first set for such Yield Period that has been selected or recommended by the Relevant Governmental Body for the replacement of such Available Tenor of such
Benchmark with the applicable Unadjusted Benchmark Replacement; 

  

	 	(b)	 the spread adjustment (which may be a positive or negative value or zero) as of the Reference Time such
Benchmark Replacement is first set for such Yield Period that would apply to the fallback rate for a derivative transaction referencing the ISDA Definitions to be effective upon an index cessation event with respect to such Available Tenor of such
Benchmark; 

  

	 	(2)	 for purposes of clause (a)(3) of the definition of “Benchmark Replacement,” the spread adjustment, or
method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Seller giving due consideration to (i) any selection or

  
 15 

	 	
recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Available Tenor of such Benchmark with the applicable
Unadjusted Benchmark Replacement by the Relevant Governmental Body on the applicable Benchmark Replacement Date or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or
determining such spread adjustment, for the replacement of such Available Tenor of such Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated syndicated credit facilities; 

 

	 	(3)	 for purposes of clause (b) of the definition of “Benchmark Replacement,” the spread adjustment,
or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) as of the Reference Time such Benchmark Replacement is first set for such Yield Period that has been selected or recommended by the
Relevant Governmental Body for the replacement of such Available Tenor of USD LIBOR with a SOFR-based rate; and 

  

	 	(4)	 for purposes of clause (c) of the definition of “Benchmark Replacement,” the spread adjustment,
or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Seller giving due consideration to any evolving or then-prevailing market
convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Available Tenor of such Benchmark with the applicable Unadjusted Benchmark Replacement for U.S.
dollar-denominated syndicated credit facilities; 

 provided that, (x) in the case of clause (1) above,
such adjustment is displayed on a screen or other information service that publishes such Benchmark Replacement Adjustment from time to time as selected by the Administrative Agent in its reasonable discretion and (y) if the then-current
Benchmark is a term rate, more than one tenor of such Benchmark is available as of the applicable Benchmark Replacement Date and the applicable Unadjusted Benchmark Replacement that will replace such Benchmark in accordance with this
Section 2.6 will not be a term rate, the Available Tenor of such Benchmark for purposes of this definition of “Benchmark Replacement Adjustment” shall be deemed to be, with respect to each Unadjusted Benchmark
Replacement having a payment period for interest calculated with reference thereto, the Available Tenor that has approximately the same length (disregarding business day adjustments) as such payment period. 

Benchmark Replacement Conforming Changes: With respect to any Benchmark Replacement, any technical, administrative or operational
changes (including changes to the definition of “MUFG LIBO Rate”, “PNC LIBO Rate”, “WFB LIBO Rate”, “Bank Rate”, or “Yield Period,” timing and frequency of determining rates and making payments of
interest, timing of borrowing requests or prepayment, conversion or continuation notices, length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that the Administrative Agent
decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative 

  
 16 

 
Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or
if the Administrative Agent determines that no market practice for the administration of such Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the
administration of this Agreement and the other Transaction Documents). 
 Benchmark Replacement Date: The earliest to occur of the
following events with respect to the then-current Benchmark: 
  

	 	(1)	 in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of
(a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely
ceases to provide all Available Tenors of such Benchmark (or such component thereof); 

  

	 	(2)	 in the case of clause (3) of the definition of “Benchmark Transition Event,” the date of the
public statement or publication of information referenced therein; 

  

	 	(3)	 in the case of a Term SOFR Transition Event, the date that is thirty (30) days after the Administrative
Agent has provided a Term SOFR Notice to the Purchaser Agents and the Seller pursuant to clause (a)(ii) of this Section 2.6; or 

  

	 	(4)	 in the case of an Early Opt-in Election or an Other Benchmark Rate
Election, the sixth (6th) Business Day after the date notice of such Early Opt-in Election or Other Benchmark Rate Election, as applicable, is provided to
the Purchaser Agents, so long as the Administrative Agent has not received, by 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Early Opt-in Election or Other Benchmark Rate Election, as applicable, is provided to the Purchaser Agents, written notice of objection to such Early Opt-in Election or Other
Benchmark Rate Election, as applicable, from Purchaser Agents comprising the Required Purchaser Agents. 

 For the
avoidance of doubt, (i) if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred
prior to the Reference Time for such determination and (ii) the “Benchmark Replacement Date” will be deemed to have occurred in the case of clause (1) or (2) with respect to any Benchmark upon the occurrence of the applicable
event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof). 

  
 17 

 Benchmark Transition Event: The occurrence of one or more of the following events
with respect to the then-current Benchmark: 
  

	 	(1)	 a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the
published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely, provided that, at the
time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); 

 

	 	(2)	 a public statement or publication of information by the regulatory supervisor for the administrator of such
Benchmark (or the published component used in the calculation thereof), the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark
(or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such
component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the
time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or 

 

	 	(3)	 a public statement or publication of information by the regulatory supervisor for the administrator of such
Benchmark (or the published component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are no longer representative. 

For the avoidance of doubt, a “Benchmark Transition Event” will be deemed to have occurred with respect to any Benchmark if a public
statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof). 

Benchmark Unavailability Period: The period (if any) (x) beginning at the time that a Benchmark Replacement Date pursuant to
clauses (1) or (2) of that definition has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Transaction Document in accordance with this
Section 2.6 and (y) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Transaction Document in accordance with this
Section 2.6. 
 Corresponding Tenor: With respect to any Available Tenor means, as applicable, either a
tenor (including overnight) or an interest payment period having approximately the same length (disregarding business day adjustment) as such Available Tenor. 

Daily Simple SOFR: For any day, SOFR, with the conventions for this rate (which will include a lookback) being established by the
Administrative Agent in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining “Daily Simple SOFR” for syndicated business loans; provided, that if the Administrative
Agent decides that any such convention is not administratively feasible for the Administrative Agent, then the Administrative Agent may establish another convention in its reasonable discretion. 

  
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 Early Opt-in Election: If the then-current
Benchmark is USD LIBOR, the occurrence of: 
  

	 	(1)	 a notification by the Administrative Agent to (or the request by the Seller to the Administrative Agent to
notify) each of the other parties hereto that at least five (5) currently outstanding U.S. dollar-denominated syndicated credit facilities at such time contain (as a result of amendment or as originally executed) a SOFR-based rate (including
SOFR, a term SOFR or any other rate based upon SOFR) as a benchmark rate (and such syndicated credit facilities are identified in such notice and are publicly available for review), and 

 

	 	(2)	 the joint election by the Administrative Agent and the Seller to trigger a fallback from USD LIBOR and the
provision by the Administrative Agent of written notice of such election to the Purchaser Agents. 

 Floor: The
greater of (1) 0% and (2) the benchmark rate floor, if any, provided in this Agreement initially (as of the execution of this Agreement, the modification, amendment or renewal of this Agreement or otherwise) with respect to the applicable
Benchmark. 
 ISDA Definitions: The 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or
any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time by the International Swaps and Derivatives Association, Inc. or such successor
thereto. 
 Other Benchmark Rate Election: If the then-current Benchmark is USD LIBOR, the occurrence of: 

 

	 	(1)	 a notification by the Administrative Agent to (or the request by the Seller to the Administrative Agent to
notify) each of the other parties hereto that at least five (5) currently outstanding U.S. dollar-denominated syndicated credit facilities at such time contain (as a result of amendment or as originally executed), in lieu of a USD LIBOR-based
rate, a term benchmark rate that is not a SOFR-based rate as a benchmark rate (and such syndicated credit facilities are identified in such notice and are publicly available for review), and 

 

	 	(2)	 the joint election by the Administrative Agent and the Seller to trigger a fallback from USD LIBOR and the
provision by the Administrative Agent of written notice of such election to the Purchaser Agents. 

 Reference Time:
With respect to any setting of the then-current Benchmark means (1) if such Benchmark is USD LIBOR, 11:00 a.m. (London time) on the day that is two London banking days preceding the date of such setting, and (2) if such Benchmark is not
USD LIBOR, the time determined by the Administrative Agent in its reasonable discretion. 

  
 19 

 Relevant Governmental Body: The Board of Governors of the Federal Reserve
System or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New York, or any successor thereto. 

SOFR: With respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published
by the SOFR Administrator on the SOFR Administrator’s Website on the immediately succeeding Business Day. 
 SOFR Administrator:
The Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate). 
 SOFR
Administrator’s Website: The website of the Federal Reserve Bank of New York, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR
Administrator from time to time. 
 Term SOFR: For the applicable Corresponding Tenor as of the applicable Reference Time, the
forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body. 
 Term SOFR Notice:
A notification by the Administrative Agent to the Purchaser Agents and the Seller of the occurrence of a Term SOFR Transition Event. 

Term SOFR Transition Event: The determination by the Administrative Agent that (a) Term SOFR has been recommended for use by the
Relevant Governmental Body, (b) the administration of Term SOFR is administratively feasible for the Administrative Agent and (c) a Benchmark Transition Event, an Early Opt-in Election or an Other
Benchmark Rate Election, as applicable, has previously occurred resulting in the replacement of the then-current Benchmark for all purposes hereunder and under any Transaction Document in accordance with this Section 2.6
with a Benchmark Replacement the Unadjusted Benchmark Replacement component of which is not Term SOFR. 
 Unadjusted Benchmark
Replacement: The applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment. 
 USD LIBOR: The London
interbank offered rate for U.S. dollars. 
 Article III. 

Settlements 

Section 3.1 Settlement Procedures. 

The parties hereto will take the following actions with respect to each Collection Period: 

(a) Information Package. On each Reporting Date the Master Servicer shall deliver to the Administrative Agent and each Purchaser Agent,
on behalf of such Purchaser Agent’s Purchaser Group, the relevant Information Package. 

  
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 (b) Earned Discount and CP Costs; Other Amounts Due. Not later than 12:00 noon (New
York, New York time) on: 
 (i) the Business Day before the last day of each Yield Period, each Purchaser Agent (other than
the WFB Purchaser Agent and the PNC Purchaser Agent) shall notify the Master Servicer and the Administrative Agent of the amount of Earned Discount accrued with respect to any Asset Tranche funded by a Liquidity Funding by such Purchaser
Agent’s Purchaser Group corresponding to such Yield Period; 
 (ii) the fifth (5th) Business Day before each Reporting Date, (x) each Purchaser Agent shall notify the Master Servicer of the CP Costs accrued during the most recently ended CP Accrual Period (if any) with
respect to any Asset Tranche funded with Commercial Paper Notes by such Purchaser Agent’s Purchaser Group during all or any portion of such CP Accrual Period and (y) the WFB Purchaser Agent and the PNC Purchaser Agent shall notify the
Master Servicer and the Administrative Agent of the amount of Earned Discount accrued during the most recently ended Yield Period with respect to each Asset Tranche funded by the WFB Purchaser Group and the PNC Purchaser Group (respectively) during
all or any portion of such Yield Period; 
 (iii) the last day of each Yield Period, the Master Servicer shall pay to each
Purchaser Agent (other than the WFB Purchaser Agent and the PNC Purchaser Agent) for the benefit of the Liquidity Banks in such Purchaser Agent’s Purchaser Group the amount of the Earned Discount accrued on the Asset Tranches of such Purchaser
Group funded by Liquidity Fundings; 
 (iv) each Settlement Date, the Master Servicer shall pay to (x) each Purchaser
Agent for the benefit of the Purchaser in such Purchaser Agent’s Purchaser Group the amount of the CP Costs accrued for the related CP Accrual Period (if any) on the Asset Tranches of such Purchaser Group funded with Commercial Paper Notes,
(y) the WFB Purchaser Agent for the benefit of the WFB Liquidity Banks the amount of the Earned Discount accrued for the related Yield Period on the Asset Tranches of the WFB Purchaser Group and (z) the PNC Purchaser Agent for the benefit
of the PNC Liquidity Banks the amount of the Earned Discount accrued for the related Yield Period on the Asset Tranches of the PNC Purchaser Group; 

(v) the Business Day before each Reporting Date, each Purchaser Agent, on behalf of such Purchaser Agent’s Purchaser
Group, shall notify the Master Servicer and the Administrative Agent of all Broken Funding Costs, fees and other amounts accrued and payable by the Seller under this Agreement to any Investor during the prior calendar month (other than amounts
described in clause (c) below); and 
 (vi) each Settlement Date, the Master Servicer shall pay to
each Purchaser Agent, for the benefit of such Purchaser Agent’s Purchaser Group, the amount of any Broken Funding Costs, fees and other amounts (to the extent of Collections attributable to the Asset Interest funded by such Purchaser Group
during such Collection Period) for such Collection Period. 

  
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 Such payments shall be made out of amounts identified pursuant to
Section 1.3 for such payment; provided, however, that to the extent Collections attributable to the Asset Interest funded by such Purchaser Group during such Collection Period are not sufficient to make such
payment, such payment shall be made out of funds paid by the Master Servicer to the Seller (which amounts the Seller hereby agrees to pay to the Master Servicer), up to the aggregate amount of Collections applied to Reinvestments under
Section 1.3(a) or (b) during the related Reporting Period. 
 (c) Asset Interest Computations.

 (i) On each Reporting Date, the Master Servicer shall compute, as of the related
Cut-Off Date and based upon the assumptions in the next sentence, (A) the Asset Interest, (B) the amount of the reduction or increase (if any) in the Asset Interest since the most recently preceding Cut-Off Date, (C) the excess (if any) of the Asset Interest over the Allocation Limit, (D) the excess (if any) of the Purchaser Group Invested Amount of any Purchaser Group over such Purchaser Group’s
Purchaser Group Limit in effect at such time and (E) the excess (if any) of the Invested Amount over the Purchase Limit in effect at such time. Such calculations shall be based upon the assumptions that the (i) information in the most
recently delivered Information Package is correct, and (ii) Collections identified pursuant to Section 1.3(b) will be paid to each Purchaser Agent, for the benefit such Purchaser Agent’s Purchaser Group, on the
Settlement Date for such Collection Period. 
 (ii) If, according to the computations made pursuant to
clause (i) above, (A) the Asset Interest exceeds the Allocation Limit, (B) the Purchaser Group Invested Amount of any Purchaser Group exceeds such Purchaser Group’s Purchaser Group Limit in effect at such
time or (C) the Invested Amount exceeds the Purchase Limit in effect at such time, then on the related Settlement Date, the Master Servicer shall pay to the applicable Purchaser Agent, for the benefit of each Investor in such Purchaser
Agent’s Purchaser Group (to the extent of Collections attributable to the Asset Interest funded by such Purchaser Group and not previously paid to such Purchaser Agent) the amount necessary to reduce (i) the Invested Amount to the Purchase
Limit in effect at such time, (ii) the Purchaser Group Invested Amount of each Purchaser Group to such Purchaser Group’s Purchaser Group Limit in effect at such time and (iii) the Asset Interest to the Allocation Limit. Such payment
shall be made out of amounts identified pursuant to Section 1.3 for such purpose and, to the extent such amounts were not so identified, the Seller hereby agrees to pay such amounts to the Master Servicer to the extent of
Collections applied to Reinvestment under Section 1.3 during the relevant Collection Period. 

(iii) In addition to the payments described in clause (ii) above and
clause (iv) below, during the Liquidation Period, the Master Servicer shall pay to each Purchaser Agent, for the benefit of the applicable Investors in such Purchaser Agent’s Purchaser Group and for application to the
reduction of the Invested Amount, all amounts identified pursuant to Section 1.3 on (A) the last day of the current Yield Period for any Asset Tranche funded by a Liquidity Funding of such Purchaser Group, in an amount
not exceeding such Purchaser Group’s Tranche Investment of such Asset Tranche, and (B) the last day of the each CP Accrual Period for any Asset Tranche funded by Commercial Paper Notes of such Purchaser Group, in an amount not exceeding
such Purchaser Group’s Tranche Investment of such Asset Tranche. 

  
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 (iv) On the Interim Reporting Date for each Interim Reporting Period, the
Master Servicer shall compute, as of the related Interim Cut-Off Date and based upon the assumptions in the next sentence, (A) the Asset Interest, (B) the amount of the reduction or increase (if any)
in the Asset Interest since the most recently preceding Cut-Off Date or Interim Cut-Off Date, (C) the excess (if any) of the Asset Interest over the Allocation
Limit, (D) the excess (if any) of the Purchaser Group Invested Amount of any Purchaser Group over such Purchaser Group’s Purchaser Group Limit in effect at such time and (E) the excess (if any) of the Invested Amount over the Purchase
Limit in effect at such time. Such calculations shall be based upon the assumptions that (i) the information in the most recently delivered Interim Information Package is correct, and (ii) Collections identified pursuant to
Section 1.3(b) will be paid to each Purchaser Agent, for the benefit of such Purchaser Agent’s Purchaser Group, on the Settlement Date for such Collection Period. 

(v) If, according to the computations made pursuant to clause (iv) above, (A) the Asset Interest
exceeds the Allocation Limit, (B) the Purchaser Group Invested Amount of any Purchaser Group exceeds such Purchaser Group’s Purchaser Group Limit in effect at such time or (C) the Invested Amount exceeds the Purchase Limit in effect
at such time, then on the Interim Settlement Date for such Interim Reporting Period, the Master Servicer shall pay to the applicable Purchaser Agent, for the benefit of the Investors in such Purchaser Agent’s Purchaser Group (to the extent of
Collections during the related Interim Reporting Period attributable to the Asset Interest funded by the such Purchaser Group and not previously paid to such Purchaser Agent) the amount necessary to reduce (i) the Invested Amount to the
Purchase Limit in effect at such time, (ii) the Purchaser Group Invested Amount of any Purchaser Group to such Purchaser Group’s Purchaser Group Limit in effect at such time and (iii) the Asset Interest to the Allocation Limit. Such
payment shall be made out of amounts identified pursuant to Section 1.3 for such purpose and, to the extent such amounts were not so identified, the Seller hereby agrees to pay such amounts to the Master Servicer to the
extent of Collections applied to Reinvestment under Section 1.3 during the relevant Interim Reporting Period. 

(d) Order of Application. Upon receipt by each Purchaser Agent of funds distributed pursuant to this
Section 3.1, such Purchaser Agent shall apply them to the items specified in the subclauses below, in the order of priority of such subclauses: 

(i) to accrued Earned Discount, CP Costs and Broken Funding Costs, plus any previously accrued Earned Discount, CP Costs and
Broken Funding Costs not paid, to the extent owing to such Purchaser Group; 
 (ii) to the Investors’ Share of such
Purchaser Agent’s Purchaser Group of the accrued and unpaid Servicing Fee (if the Master Servicer is not Lennox or its Affiliate); 

  
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 (iii) to such Purchaser Agent’s Purchaser Group’s Pro Rata Share
of the Program Fee and the Unused Fee accrued during such Collection Period, plus any previously accrued Program Fee and Unused Fee not paid on a prior Settlement Date; 

(iv) to the reduction of the Invested Amount on a pro-rata basis, to the extent such
reduction is required under Section 3.1(c), (and a corresponding reduction to each applicable Purchaser Group’s Purchaser Group Invested Amount); 

(v) to other accrued and unpaid amounts owing to any Investor or any Agent hereunder (except Earned Discount on any Asset
Tranche funded by a Liquidity Funding of any Purchaser Group which has accrued but is not yet overdue under Section 1.3(c)); 

(vi) to the Investors’ Share of such Purchaser Agent’s Purchaser Group of the accrued and unpaid Servicing Fee (if
the Master Servicer is Lennox or its Affiliate); and 
 (vii) to purchase newly originated Receivables prior to the
Termination Date; 
 provided, however, that all amounts received on any Interim Settlement Date or Weekly Settlement Date shall be applied
(x) with respect to amounts received on any Weekly Settlement Date, as provided in Section 3.1(c)(ii) and (y) with respect to amounts received on any Interim Settlement Date, as provided in
Section 3.1(c)(v). 
 (e) Non-Distribution of Servicing Fee. Each
Purchaser Agent hereby consents (which consent may be revoked at any time), to the retention by the Master Servicer of the amounts (if any) identified pursuant to Section 1.3 in respect of the Servicing Fee, in which case
no distribution shall be made in respect of the Servicing Fee pursuant to clause (d)(ii) or (vi) above. 

(f) Delayed Payment. If on any day described in this Section 3.1 (or in
Section 1.3(c) in respect of accrued Earned Discount on Asset Tranches funded by Liquidity Fundings of any Purchaser Group, or accrued CP Costs on Asset Tranches funded by the issuance of Commercial Paper Notes issued by
any Purchaser Group) the Master Servicer shall not make any payment otherwise required because Collections during the relevant CP Accrual Period or Yield Period were less than the aggregate amounts payable, the next available Collections in respect
of the Asset Interest shall be applied to such payment, and no Reinvestment shall be permitted hereunder until such amount payable has been paid in full. 

Section 3.2 Deemed Collections; Reduction of Invested Amount, Etc. 

(a) Deemed Collections. If on any day: 

(i) the Unpaid Balance of any Pool Receivable is: 

(A) reduced as a result of any defective, rejected or returned merchandise or services, any cash discount, or any other
adjustment by any Seller Party or any Affiliate thereof, or as a result of any tariff or other governmental or regulatory action, or 

  
 24 

 (B) reduced or canceled as a result of a setoff in respect of any claim by
the Obligor thereof (whether such claim arises out of the same or a related or an unrelated transaction, including without limitation, any setoff or claim arising as a result of any amount at any time owed by any Originator in connection with any
account receivable owed by any such Originator to such Obligor), or 
 (C) reduced on account of the obligation of any Seller
Party or any Affiliate thereof to pay to the related Obligor any rebate or refund, or 
 (D) less than the amount included
with respect to such Pool Receivable in calculating the Net Pool Balance for purposes of any Information Package or Interim Information Package, as the case may be (for any reason other than such Receivable becoming a Defaulted Receivable), or 

(ii) any of the representations or warranties of the Seller set forth in Sections 6.1(j), (l)
or (p) were not true when made with respect to any Pool Receivable, or any of the representations or warranties of the Seller set forth in Section 6.1(l) are no longer true with respect to any Pool Receivable,
or any Pool Receivable is repurchased by an Originator pursuant to the Sale Agreement, 
 then, on such day, the Seller shall be deemed to have received a
Collection of such Pool Receivable 
 (A) in the case of clause (i) above, in the amount of such
reduction or cancellation or the difference between the actual Unpaid Balance and the amount included in calculating such Net Pool Balance, as applicable; and 

(B) in the case of clause (ii) above, in the amount of the Unpaid Balance of such Pool Receivable.

 Collections deemed received by the Seller under this Section 3.2(a) are herein referred to as “Deemed
Collections.” 
 (b) Seller’s Optional Reduction of the Invested Amount. The Seller may at any time elect to reduce
the Invested Amount and each Purchaser Group Invested Amount as follows: 
 (i) the Seller shall give the Administrative
Agent and each Purchaser Agent, on behalf of such Purchaser Agent’s Purchaser Group, at least one (1) Business Day’s prior written notice of such reduction (including the aggregate amount of such proposed reduction and the proposed
date on which such reduction will commence), and the Administrative Agent shall promptly forward such notice, together with the Administrative Agent’s determination (in accordance with clause (D) of the proviso below) of the amount of such
proposed reduction to be allocated to each Purchaser Group, to each Purchaser Agent on behalf of such Purchaser Agent’s Purchaser Group by telecopier or e-mail, 

(ii) on the proposed date of commencement of such reduction and on each day thereafter, the Master Servicer shall refrain from
reinvesting Collections pursuant to Section 1.3 until the amount thereof not so reinvested shall equal the desired amount of reduction, and 

  
 25 

 (iii) the Master Servicer shall hold such Collections in trust for each
Purchaser Agent, on behalf and for the benefit of the Investors in such Purchaser Agent’s Purchaser Group, pending payment to such Purchaser Agent, as provided in Section 1.3; 

provided that: 
 (A) the
amount of any such reduction shall be in (i) an amount of $1,000,000, (ii) an integral multiple thereof or (iii) an amount equal to the remaining Invested Amount, 

(B) the Seller shall use reasonable efforts to attempt to choose a reduction amount, and the date of commencement thereof, so
that such reduction shall commence and conclude in the same Collection Period, 
 (C) unless the Invested Amount shall be
reduced to zero, after giving effect to such reduction, the Invested Amount will be at least $1,000,000, and 
 (D) each
reduction of the Invested Amount shall be done on a pro rata basis, applied first to any Invested Amount under the Uncommitted Tranche and second to any Invested Amount under the Committed Tranche, and shall result in a corresponding
reduction in each Purchaser Group Invested Amount (and a corresponding reduction to each applicable Purchaser Group’s Tranche Investment pursuant to Section 2.2(c)). 

Section 3.3 Payments and Computations, Etc. 

(a) Payments. All amounts to be paid to any Purchaser Agent or any other Person or deposited by the Seller or the Master Servicer
hereunder (other than amounts payable under Section 4.2) shall be paid or deposited in accordance with the terms hereof no later than 12:00 noon (New York, New York time) on the day when due in lawful money of the United
States of America in same day funds to such Purchaser Agent’s Purchaser Agent Account, or to such other account at the bank named therein or at such other bank as such Purchaser Agent may designate by written notice to the Person making such
payment. 
 (b) Late Payments. The Seller or the Master Servicer, as applicable, shall, to the extent permitted by law, pay to the
Person to whom payment is due interest on all amounts not paid or deposited when due hereunder at a rate per annum equal to 2% plus the Base Rate, payable on demand, provided, however, that such interest rate shall not at
any time exceed the maximum rate permitted by applicable law. 
 (c) Method of Computation. All computations of interest, CP Costs,
Broken Funding Costs, Earned Discount, any fees payable under Section 4.1 and any other fees payable by the Seller to any Investor or any Agent hereunder shall be made on the basis of a year of 360 days for the actual
number of days (including the first day but excluding the last day) elapsed. Whenever any payment or deposit to be made hereunder shall be due on a day other than a Business Day, such payment or deposit shall be made on the next succeeding Business
Day and such extension of time shall be included in the computation of such payment or deposit. 

  
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 (d) Taxes. 

(i) Any and all payments and deposits required to be made hereunder or under any other Transaction Document by any Seller Party
shall be made free and clear of and without deduction for any and all present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto, excluding net income taxes that are imposed by the United
States and franchise taxes and net income taxes that are imposed on an Affected Party by the state or foreign jurisdiction under the laws of which such Affected Party is organized or any political subdivision thereof (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities being hereinafter referred to as “Taxes”). If any Seller Party shall be required by law to deduct any
Taxes from or in respect of any sum payable hereunder to any Affected Party, (i) the Seller shall make an additional payment to such Affected Party, in an amount sufficient so that, after making all required deductions (including deductions
applicable to additional sums payable under this Section 3.3(d) and Section 14.5), such Affected Party receives an amount equal to the sum it would have received had no such deductions been made,
(ii) the applicable Seller Party shall make such deductions and (iii) the applicable Seller Party shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law. Within 30 days
after the date of any such payment of Taxes, the applicable Seller Party will furnish to such Affected Party the original or a certified copy of a receipt evidencing payment thereof. 

(ii) Any Affected Party which is organized outside the United States and which is entitled to an exemption from, or reduction
of, withholding tax under the laws of the United States as in effect on the date hereof (or, in the case of any Person which becomes an Affected Party after the date hereof, on the date on which it so becomes an Affected Party with respect to any
payments under this Agreement) shall, on or prior to the date hereof (or, in the case of any Person who becomes an Affected Party after the date hereof, on or prior to the date on which it so becomes an Affected Party), deliver to the Administrative
Agent and the Seller such certificates, documents or other evidence, as required by the Internal Revenue Code of 1986, as amended or Treasury Regulations issued pursuant thereto, including Internal Revenue Service Form
W-8BEN or Form W-8ECI and any other certificate or statement of exemption required by Treasury Regulation
Section 1.1441-1(a) or Section 1.1441-6(c) or any subsequent version thereof, properly completed and duly executed by such Affected Party as will permit such
payments to be made without withholding or at a reduced rate. Each such Affected Party shall from time to time thereafter, upon written request from the Seller, deliver to the Seller and the Administrative Agent any new certificates, documents or
other evidence as described in the preceding sentence as will permit payments under this Agreement to be made without withholding or at a reduced rate (but only so long as such Affected Party is legally able to do so). The Seller shall not be
required to pay any amounts to any Affected Party in respect of Taxes and Other Taxes pursuant to paragraph (d)(i) above or Section 14.5(b) or (c) if the obligation to pay such amounts
is attributable to the failure by such Affected Party to comply with the provisions of this paragraph; provided, however, that should an Affected Party become subject to Taxes because of its failure to deliver a form required hereunder, the Seller
shall take such steps as such Affected Party shall reasonably request to assist such Affected Party to recover such Taxes. 

  
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 Section 3.4 Treatment of Collections and Deemed Collections. 

The Seller shall forthwith deliver to the Master Servicer all Deemed Collections, and the Master Servicer shall hold or distribute such Deemed
Collections as Earned Discount, CP Costs, accrued Servicing Fee, repayment of the Invested Amount or any Purchaser Group Invested Amount and to other accrued amounts owing hereunder to the same extent as if such Deemed Collections had actually been
received on the date of such delivery to the Master Servicer. If Collections are then being paid to any Purchaser Agent, on behalf of such Purchaser Agent’s Purchaser Group, or its designee, or to lock boxes or accounts directly or indirectly
owned or controlled by the Administrative Agent, on behalf of the Investors, the Master Servicer shall forthwith cause such Deemed Collections to be paid to each Purchaser Agent, on behalf of such Purchaser Agent’s Purchaser Group, or its
designee or to such lock boxes or accounts, as applicable, or as each applicable Purchaser Agent shall request. So long as the Seller shall hold any Collections (including Deemed Collections) required to be paid to the Master Servicer or any Agent,
it shall hold such Collections in trust on behalf and for the benefit of the Agents, on behalf of themselves and the Investors, and shall clearly mark its records to reflect such trust; provided that unless the Administrative Agent shall have
requested it in writing to do so, the Seller shall not be required to hold such Collections in a separate deposit account containing only such Collections. 

Section 3.5 Sharing of Payments. 

If any Investor (for purposes of this Section only, referred to as a “Recipient”) shall obtain payment (whether
voluntary, involuntary, through the exercise of any right of setoff, or otherwise) on account of the Invested Amount (or portion thereof) of, or Earned Discount or CP Costs accrued in respect of, the Asset Interest or portion thereof owned by it in
excess of its ratable share of payments made on account of the Invested Amount of, or Earned Discount or CP Costs accrued in respect of, the Asset Interest owned by all the Investors (other than as a result of different methods for calculating
Earned Discount or CP Costs), such Recipient shall forthwith purchase from the applicable Investors which received less than their ratable share participations in the portions of the Asset Interest owned by such Persons as shall be necessary to
cause such Recipient to share the excess payment ratably with each such other Person; provided, however, that if all or any portion of such excess payment is thereafter recovered from such Recipient, such purchase from each such other Person shall
be rescinded and each such other Person shall repay to the Recipient the purchase price paid by such Recipient for such participation to the extent of such recovery, together with an amount equal to such other Person’s ratable share (according
to the proportion of (a) the amount of such other Person’s required payment to (b) the total amount so recovered from the Recipient) of any interest or other amount paid or payable by the Recipient in respect of the total amount so
recovered. 

  
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 Section 3.6 Repurchase of Asset Interest. 

In addition to Seller’s rights pursuant to Section 3.2(b), the Seller shall have the right, upon thirty days
prior written notice to the Administrative Agent and Purchaser Agents, to repurchase from the Investors all, but not less than all, of the Asset Interest. The purchase price in respect thereof shall be an amount equal to the sum of the Invested
Amount, all accrued and unpaid Earned Discount, CP Costs, Broken Funding Costs, fees and other amounts payable to the Investors and the Agents through the date of repurchase, payable in immediately available funds. Such repurchase shall be without
representation, warranty or recourse of any kind by, on the part of, or against any Investor or any Agent. 
 Article IV. 

Fees and Yield Protection 

Section 4.1 Fees. 

The Seller shall pay to the Administrative Agent and each Purchaser Agent for the benefit of the Administrative Agent and such Purchaser
Agent’s Purchaser Group the fees and other amounts set forth in the Fee Letter, all such fees and other amounts to be paid from time to time in the amounts set forth in each the Fee Letter. 

Section 4.2 Yield Protection. 

(a) If (i) Regulation D or (ii) any Regulatory Change: 

(A) shall subject an Affected Party to any Tax, duty or other charge with respect to the portion of the Asset Interest owned by
or funded by it, or any obligations or right to make Purchases or Reinvestments or to provide funding therefor, or shall change the basis of taxation of payments to the Affected Party of any portion of the Invested Amount, CP Costs or Earned
Discount owned by, owed to or funded in whole or in part by it or any other amounts due under this Agreement in respect of the portion of the Asset Interest owned by or funded by it or its obligations or rights, if any, to make Purchases or
Reinvestments or to provide funding therefor; or 
 (B) shall impose, modify or deem applicable any reserve (including,
without limitation, any reserve imposed by the Federal Reserve Board, but excluding any reserve included in the determination of Earned Discount), special deposit or similar requirement against assets of any Affected Party, deposits or obligations
with or for the account of any Affected Party or with or for the account of any affiliate (or entity deemed by the Federal Reserve Board to be an affiliate) of any Affected Party, or credit extended by any Affected Party; or 

(C) shall change the amount of capital maintained or required or requested or directed to be maintained by any Affected Party;
or 

  
 29 

 (D) shall impose any other condition affecting any Asset Interest owned or
funded in whole or in part by any Affected Party, or its obligations or rights, if any, to make Purchases or Reinvestments or to provide funding therefor; or 

(E) shall change the rate for, or the manner in which the Federal Deposit Insurance Corporation (or a successor thereto)
assesses, deposit insurance premiums or similar charges; 
 and the result of any of the foregoing is or would be 

(A) to increase the cost to or to impose a cost on (1) an Affected Party funding or making or maintaining any Purchases
or Reinvestments, any purchases, reinvestments, or loans or other extensions of credit under any Liquidity Agreement, or any commitment of such Affected Party with respect to any of the foregoing, or (2) any Agent for continuing its or the
Seller’s relationship with any Investor, 
 (B) to reduce the amount of any sum received or receivable by an Affected
Party under this Agreement or under any Liquidity Agreement, or 
 (C) in the reasonable determination of such Affected
Party, to reduce the rate of return on the capital of an Affected Party as a consequence of its obligations hereunder or arising in connection herewith to a level below that which such Affected Party could otherwise have achieved, 

then, within thirty days after demand by such Affected Party (which demand shall be accompanied by a certificate setting forth, in reasonable detail, the
basis of such demand and the methodology for calculating, and the calculation of, the amounts claimed by the Affected Party), the Seller shall pay directly to such Affected Party such additional amount or amounts as will compensate such Affected
Party for such additional or increased cost or such reduction. 
 (b) Each Affected Party will promptly notify the Seller, the
Administrative Agent and the Purchaser Agent for the Purchaser Group of such Affected Party, if applicable, of any event of which it has knowledge (including any future event that, in the judgment of such Affected Party, is reasonably certain to
occur) which will entitle such Affected Party to compensation pursuant to this Section 4.2; provided, however, no failure to give or delay in giving such notification shall adversely affect the rights of any
Affected Party to such compensation. 
 (c) In determining any amount provided for or referred to in this
Section 4.2, an Affected Party may use any reasonable averaging and attribution methods (consistent with its ordinary business practices) that it (in its reasonable discretion) shall deem applicable. Any Affected Party when
making a claim under this Section 4.2 shall submit to the Seller the certificate (referred to in subsection (a) above) as to such increased cost or reduced return (including calculation thereof in
reasonable detail), which statement shall, in the absence of demonstrable error, be conclusive and binding upon the Seller. 

  
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 (d) For the avoidance of doubt, (w) any interpretation of FAS 166 or FAS 167 (or any
successor Accounting Standards Codification Subtopic) by the Financial Accounting Standards Board and any pronouncement, interpretation or release by the International Accounting Standards Board, (x) any request, rule, guideline or directive
under or issued in connection with the Dodd-Frank Wall Street Reform and Consumer Protection Act (whether or not having the force of law), regardless of the date enacted, adopted or issued, or (y) any request, rule, guideline or directive
promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or United States regulatory authorities, in each case pursuant to Basel III, regardless of the date enacted,
adopted or issued, shall, in each such case, constitute an adoption, change, request or directive subject to this Section 4.2. 

Section 4.3 Funding Losses. 

In the event that any Purchaser or any Liquidity Bank shall actually incur any loss or expense (including any loss or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired by such Purchaser through the issuance of Commercial Paper Notes to fund any Purchase or such Liquidity Bank to make any Liquidity Funding or maintain any Liquidity
Funding) as a result of (a) any settlement with respect to such Investor’s Purchaser Group’s Tranche Investment of all or any portion of any Asset Tranche being made by such Purchaser Group on any day other than the scheduled last day
of an applicable CP Accrual Period or Yield Period with respect thereto (it being understood that the foregoing shall not apply to any portion of the Invested Amount that is accruing Earned Discount calculated by reference to the Base Rate), or
(b) any Purchase not being made in accordance with a request therefor under Section 1.2, then, upon written notice from any Purchaser Agent to the Seller and the Master Servicer, the Seller shall pay to the Master
Servicer, and the Master Servicer shall pay to such Investor’s Purchaser Agent for the account of such Investor, the amount of such loss or expense. Such written notice (which shall include the methodology for calculating, and the calculation
of, the amount of such loss or expense, in reasonable detail) shall, in the absence of demonstrable error, be conclusive and binding upon the Seller and the Master Servicer. 

Article V. 
 Conditions
of Purchases 
 Section 5.1 Closing Date; Conditions Precedent to Initial Purchase. 

(a) This Agreement shall become effective on the date on which all of the below conditions in this Section 5.1(a)
have been satisfied; the effectiveness of this Agreement is subject to the condition precedent that each Agent shall have received the following, each (unless otherwise indicated) dated such date or another recent date acceptable to each Agent and
in form and substance satisfactory to each Agent: 
 (i) a copy of the resolutions of the board of directors (or similar
governing body) of each Seller Party, Lennox International and each Originator approving each Transaction Document to be delivered by it hereunder and the transactions contemplated hereby and thereby, certified by its secretary or any other
authorized person; 

  
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 (ii) good standing certificates for each Seller Party, Lennox International
and each Originator issued as of a recent date by the Secretary of State (or the equivalent) of the jurisdiction in which each such entity is organized and the Secretary of State (or the equivalent) of the state of its principal place of business;

 (iii) a certificate of the secretary or assistant secretary of each Seller Party, Lennox International and each Originator
certifying the names and true signatures of the officers authorized on its behalf to sign this Agreement and the other Transaction Documents to be delivered by it hereunder (on which certificate each Agent and each Investor may conclusively rely
until such time as Agents shall receive from a Seller Party a revised certificate meeting the requirements of this subsection (iii)); 

(iv) [intentionally omitted]; 

(v) the certificates of incorporation (or the equivalent) of each Seller Party, Lennox International and each Originator and
all amendments thereto (including the amendment referred to in subsection (iv) above) duly certified as of a recent date by the Secretary of State (or the equivalent) of the jurisdiction in which each such entity is organized as of a
recent date acceptable to each Agent, together with a copy of the by-laws (or the equivalent) of each Seller Party and each Originator duly certified by the secretary or an assistant secretary of each entity;

 (vi) acknowledgment copies of proper financing statements (form UCC-1) or
amendments to already filed financing statements (form UCC-3), filed on or prior to the date of the initial Purchase, naming (x) each Originator as the debtor and seller of Receivables, (y) Seller as
secured party and purchaser and (z) Administrative Agent as assignee; and/or other similar instruments or documents, as may be necessary or, in the opinion of Administrative Agent, desirable under the UCC or any comparable law of all
appropriate jurisdictions to perfect Seller’s and Investors’ interests in the Pool Receivables and the Related Assets; 

(vii) acknowledgment copies of proper financing statements (Form UCC-1), filed on or
prior to the date of the initial Purchase, naming (x) Seller as the debtor and seller of Receivables or any undivided percentage ownership interest therein, and (y) Administrative Agent as the secured party; or other, similar instruments
or documents, as may be necessary or, in the opinion of Administrative Agent, desirable under the UCC or any comparable law of all appropriate jurisdictions to perfect (A) Investors’ undivided percentage ownership interests and
(B) the security interest referred to in Section 9.1, in each case in the Pool Receivables and the Related Assets; 

(viii) a search report by a nationally recognized search firm provided in writing to Administrative Agent listing all effective
financing statements, state and federal tax or ERISA liens and judgments that name Seller or any Originator as debtor and that are filed in the jurisdictions in which filings were made pursuant to subsections (vi) and
(vii) above and in such other jurisdictions and from such other Persons that Agent shall reasonably request, together with copies of such financing statements (none of which shall cover any Receivables or Related Assets); 

  
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 (ix) duly executed copies of Lockbox Agreements with each of the Lockbox
Banks with respect to each of the Lockbox Accounts; 
 (x) favorable opinions of Jones Day LLP, counsel for the Seller, the
Master Servicer, Lennox International and the 
 Originators, as to such matters as the Administrative Agent may reasonably
request; 
 (xi) duly executed copies of the Sale Agreement, confirmation of the Assurance Agreement and each Fee Letter;

 (xii) completion of satisfactory due diligence by Administrative Agent and its counsel; 

(xiii) a pro forma Information Package, prepared in respect of the proposed initial Purchase, assuming a Cut-Off Date of October 31, 2011; 
 (xiv) written notice provided by the Seller
setting forth the Seller’s Account 
 (xv) such other agreements, instruments, certificates, opinions and other
documents as Administrative Agent may reasonably request. 
 (b) Each party hereto agrees and acknowledges that, in connection with
Amendment No. 8 to this Agreement, dated as of the Eighth Amendment Date, the MUFG Purchaser Group Limit is being changed to the amount set forth herein and the PNC Purchaser Group Limit is being added hereto. As a result thereof, the
applicable Investors in the MUFG Purchaser Group which own the Asset Interest as of the date hereof shall transfer and assign a portion of the Asset Interest to the Investors in the PNC Purchaser Group so that after giving effect thereto, each
Purchaser Group shall hold its Pro Rata Share (as determined pursuant to clause (b) of the definition thereof) of the Invested Amount outstanding at such time. On the Eighth Amendment Date, the applicable Investors in the PNC Purchaser Group
making such purchase agree to make a cash payment to such Investors in the MUFG Purchaser Group in an amount equal to the aggregate Invested Amount so transferred. 

Section 5.2 Conditions Precedent to All Purchases and Reinvestments. 

Each Purchase and each Reinvestment shall be subject to the conditions precedent that on the date of such Purchase or Reinvestment the
following statements shall be true (and the Seller, by accepting the amount of such Purchase or by receiving the proceeds of such Reinvestment, and each other Seller Party, upon such acceptance or receipt by the Seller, shall be deemed to have
certified that): 
 (a) the representations and warranties contained in Section 6.1 are correct in all material
respects on and as of such day as though made on and as of such day and shall be deemed to have been made on such day, 
 (b) no event has
occurred and is continuing, or would result from such Purchase or Reinvestment, that constitutes a Liquidation Event or Unmatured Liquidation Event, 

  
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 (c) after giving effect to each proposed Purchase or Reinvestment, the Invested Amount will
not exceed the Purchase Limit in effect at such time, no Purchaser Group’s Purchaser Group Invested Amount will exceed such Purchaser Group’s Purchaser Group Limit in effect at such time and the Asset Interest will not exceed the
Allocation Limit, 
 (d) the Termination Date shall not have occurred, 

(e) in the case of a Purchase, each Purchaser Agent shall have timely received an appropriate notice of the proposed Purchase in accordance
with Section 1.2(a), 
 (f) a completed Information Package or Interim Information Package (if applicable) shall
have been delivered by the Master Servicer to the Administrative Agent and each Purchaser Agent, on behalf of such Purchaser Agent’s Purchaser Group, as of the applicable Reporting Date or Interim Reporting Date, as the case may be, 

(g) both prior to and after giving effect to each proposed Purchase or Reinvestment, the requirements of the Credit Agreement and any other
agreement evidencing any Material Indebtedness of Lennox International with respect to transfers of assets and creation of liens shall not have been violated, 

(h) after giving effect to each proposed Purchase or Reinvestment, the Weighted Average Term (with respect to Receivables included in the Net
Pool Balance) shall not exceed 45 days, 
 (i) such other agreements, instruments, certificates, opinions and other documents as the
Administrative Agent may reasonably request have been delivered, and 
 (j) each Originator shall have sold or contributed to the Seller,
pursuant to the Sale Agreement, all Receivables arising on or prior to such date; 
 provided, however, the absence of the occurrence and
continuance of an Unmatured Liquidation Event shall not be a condition precedent to any Reinvestment or any Purchase on any day which does not cause the Invested Amount, after giving effect to such Reinvestment or Purchase, to exceed the Invested
Amount as of the opening of business on such day. 
 Article VI. 

Representations and Warranties 

Section 6.1 Representations and Warranties of the Seller Parties. 

Each Seller Party represents and warrants as to itself, except when specifically provided, in which case, the specified Seller Party
represents and warrants as follows: 
 (a) Organization and Good Standing. Its jurisdiction of organization is correctly set forth in
the preamble to this Agreement. It is duly organized and is a “registered organization” as defined in the UCC under the laws of that jurisdiction and no other state or jurisdiction. It is validly existing as a corporation in good standing
under the laws of its state of organization, with 

  
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power and authority to own its properties and to conduct its business as such properties are presently owned and such business is presently conducted. The Seller had at all relevant times, and
now has, all necessary power, authority, and legal right to acquire and own the Pool Receivables and Related Assets. All of the issued and outstanding capital stock of the Seller is held by wholly-owned Subsidiaries of Lennox International. The
Seller has no subsidiaries. 
 (b) Due Qualification. It is duly qualified to do business as a foreign corporation in good standing,
and has obtained all necessary licenses and approvals, in all jurisdictions in which the ownership or lease of property or the conduct of its business requires such qualification, licenses or approvals, except where the failure to be so qualified or
have such licenses or approvals would not have a Material Adverse Effect. 
 (c) Power and Authority; Due Authorization. It
(i) has all necessary power, authority and legal right (A) to execute and deliver this Agreement and the other Transaction Documents to which it is a party, (B) to carry out the terms of the Transaction Documents to which it is a
party, (C) in the case of the Master Servicer, to service the Receivables and the Related Assets in accordance with this Agreement and the Sale Agreement, and (D) in the case of the Seller, sell and assign the Asset Interest on the terms
and conditions herein provided, and (ii) has duly authorized by all necessary corporate action the execution, delivery and performance of this Agreement and the other Transaction Documents and, in the case of the Seller, the sales and
assignments described in clause (i)(D) above. It has duly executed and delivered each of the Transaction Documents to which it is a party. 

(d) Valid Sale; Binding Obligations. (i) This Agreement constitutes a valid sale, transfer, and assignment of the Asset Interest
to the applicable Investors, enforceable against creditors of, and purchasers from, the Seller, and (ii) this Agreement and each other Transaction Document signed by such Seller Party constitutes, a legal, valid and binding obligation of such
Seller Party, enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, or other similar laws from time to time in effect affecting the enforcement of creditors’ rights
generally and by general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law. 

(e) No Violation. The execution, delivery and performance by it of this Agreement and the other Transaction Documents to which it is a
party and the consummation by it of the transactions contemplated hereby and thereby will 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 or both) a
default under, its articles or certificate of incorporation or by-laws, or any material indenture, loan agreement, receivables purchase agreement, mortgage, deed of trust, or other agreement or instrument to
which it is a party or by which it or any of its properties is bound (including, but not limited to, those agreements or instruments evidencing Material Indebtedness of Lennox International), (ii) result in the creation or imposition of any
Lien upon any its properties pursuant to the terms of any such material indenture, loan agreement, receivables purchase agreement, mortgage, deed of trust, or other agreement or instrument, other than this Agreement and the other Transaction
Documents, or (iii) violate any law or any order, rule, or regulation applicable to it of any court or of any federal or state regulatory body, administrative agency, or other governmental instrumentality having jurisdiction over it or any of
its properties. 

  
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 (f) No Proceedings. There are no actions, proceedings or investigations pending, or,
to its knowledge, threatened, before any Governmental Authority (i) asserting the invalidity of this Agreement or any other Transaction Document, (ii) seeking to prevent the sale and assignment of the Receivables under the Sale Agreement
or of the Asset Interest under this Agreement or the consummation of any of the other transactions contemplated by this Agreement or any other Transaction Document, or (iii) that would have a Material Adverse Effect. 

(g) Bulk Sales Act. No transaction contemplated hereby requires compliance with any bulk sales act or similar law. 

(h) Government Approvals. No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority
or regulatory body is required for the due execution, delivery and performance by it of this Agreement and each other Transaction Document to which it is a party, except, in the case of the Seller, for (i) the filing of the UCC financing
statements referred to in Article V, and (ii) the filing of any UCC continuation statements and amendments from time to time required in relation to any UCC financing statements filed in connection with this Agreement,
as provided in Section 8.7, all of which, at the time required in Article V or Section 8.7, as applicable, shall have been duly made and shall be in full force and effect.

 (i) Financial Condition. (i) The consolidated and consolidating balance sheets of Lennox International and its consolidated
subsidiaries as at December 31, 2010, and the related statements of income and shareholders’ equity of Lennox International and its consolidated subsidiaries for the fiscal year then ended, certified by KPMG LLP, independent certified
public accountants, copies of which have been furnished to the Agents, fairly present in all material respects the consolidated financial condition of Lennox International and its consolidated subsidiaries as at such date and the consolidated
results of the operations of Lennox International and its consolidated subsidiaries for the period ended on such date, all in accordance with GAAP consistently applied, (ii) since December 31, 2010 there has been no material adverse change
in any such financial condition, business or operations, (iii) the balance sheet of the Seller as at September 30, 2011, certified by the chief financial officer or treasurer of the Seller by means of a Certificate of Financial Officer in
the form attached hereto as Exhibit B, copies of which have been furnished to the Agents, fairly present in all material respects the financial condition, assets and liabilities of the Seller as at such date, all in accordance with GAAP
consistently applied, and (iv) since December 31, 2009 there has been no material adverse change in the Seller’s financial condition, business or operations. 

(j) Nature of Receivables. Each Receivable constitutes an “account” as such term is defined in the UCC. 

(k) Margin Regulations. The use of all funds obtained by such Seller Party under this Agreement or any other Transaction Document will
not conflict with or contravene any of Regulation T, U and X promulgated by the Federal Reserve Board from time to time or be used to acquire any equity security of a class which is registered pursuant to Section 12 of the Securities Exchange
Act of 1934. 

  
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 (l) Quality of Title. (i) This Agreement creates a valid and continuing security
interest (as defined in the applicable UCC) in the Collateral in favor of the Administrative Agent for the benefit of the Secured Parties, which security interest is prior to all other Liens and is enforceable as such against creditors of and
purchasers from the Seller, (ii) the Seller owns and has good and marketable title to the Pool Receivables, Related Assets and the other Collateral free and clear of any Lien (other than any Lien arising solely as the result of any action taken
by any Secured Parties (or any assignee thereof) or by the Administrative Agent in connection with the Transaction Documents); (iii) when any Purchaser makes a Purchase or Reinvestment, it shall have acquired and shall at all times thereafter
continuously maintain a valid and perfected first priority undivided percentage ownership interest to the extent of the portion of the Asset Interest funded by the related Purchaser Group in the Pool Receivables and Related Assets, free and clear of
any Lien (other than any Lien arising as the result of any action taken by any Secured Party (or any assignee thereof) or by the Administrative Agent in connection with the Transaction Documents); (iv) other than the security interest granted
to the Administrative Agent for the benefit of the Secured Parties pursuant to this Agreement, the Seller has not pledged, assigned, sold or granted a security interest in, or otherwise conveyed any of the Collateral; (v) the Seller has not
authorized the filing of, and is not aware of any financing statements against the Seller that include a description of collateral covering the Pool Receivables, Related Assets or any other Collateral except such as may be filed (A) in favor of
the Originators in accordance with the Contracts, (B) in favor of the Seller in connection with the Sale Agreement or (C) in favor of the Secured Parties or the Administrative Agent in accordance with this Agreement or in connection with
any Lien arising solely as the result of any action taken by the Secured Parties (or any assignee thereof) or by the Administrative Agent in connection with the Transaction Documents, and (vi) with respect to each Pool Receivable, the Seller
(A) shall have received such Pool Receivable as a contribution to the capital of the Seller by the applicable Originator or (B) shall have purchased such Pool Receivable from the applicable Originator in exchange for payment (made by the
Seller to the Originator in accordance with the provisions of the Sale Agreement) of cash, an increase in the principal amount of the Initial Seller Note and/or an increase in the preferred stock of the Seller held by such Originator, in all cases
in an amount which constitutes fair consideration and reasonably equivalent value. Each such sale referred to in clause (vi) of the preceding sentence shall not have been made for or on account of an antecedent debt owed by any
Originator to the Seller and no such sale is or may be voidable or subject to avoidance under applicable law. 
 (m) Accurate
Reports. No Information Package or Interim Information Package (if prepared by such Seller Party, or to the extent information therein was supplied by such Seller Party) or other information, exhibit, financial statement, document, book, record
or report furnished or to be furnished by or on behalf of such Seller Party to any Agent or any Investor pursuant to this Agreement was or will be inaccurate in any material respect as of the date it was or will be dated or (except as otherwise
disclosed to such Agent or Purchaser at such time) as of the date so furnished, or contained or (in the case of information or other materials to be furnished in the future) will contain any material misstatement of fact or omitted or (in the case
of information or other materials to be furnished in the future) will omit to state a material fact or any fact necessary to make the statements contained therein not materially misleading in light of the circumstances made or presented. 

  
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 (n) Offices. The principal places of business and chief executive offices of the
Master Servicer and the Seller are located at the respective addresses set forth on Schedule 14.2, and the offices where the Master Servicer and the Seller keep all their books, records and documents evidencing Pool
Receivables, the related Contracts and all purchase orders and other agreements related to such Pool Receivables are located at the addresses specified in Schedule 6.1(n) (or at such other locations, notified to each Agent
in accordance with Section 7.1(f), in the United States). 
 (o) Lockbox Accounts. The names and addresses
of all the Lockbox Banks, together with the account numbers of the Lockbox Accounts of the Seller at each Lockbox Bank and the post office box numbers of the lockboxes, are listed on Schedule 6.1(o) (or have been notified
to and approved by the Agents in accordance with Section 7.3(d)) and are the only post office boxes and accounts into which Collections of Receivables are deposited or remitted. The Seller has not granted any Person, other
than the Administrative Agent for the benefit of the Secured Parties as contemplated by this Agreement, control of any lockbox or Lockbox Account, or the right to take control of any such lockbox or Lockbox Account at a future time. 

(p) Eligible Receivables. Each Receivable characterized in any Information Package, Interim Information Package or other written
statement made by or on behalf of the Seller as an Eligible Receivable or as included in the Net Pool Balance is, as of the date of such Information Package, Interim Information Package or other written statement and on the date of any Purchase,
Reinvestment or computation of Net Pool Balance, an Eligible Receivable on such date and properly included in the Net Pool Balance on such date. On the date of each Purchase and Reinvestment (and after giving effect thereto and to any payments made
pursuant to Section 3.1(c)), the Asset Interest is not greater than 100%. 
 (q) Servicing Programs. No
license or approval is required for any Agent’s use of any program used by the Master Servicer in the servicing of the Receivables, other than those which have been obtained and are in full force and effect. 

(r) Compliance with Credit and Collection Policy. With respect to each Eligible Receivable, it has complied in all material respects
with the Credit and Collection Policy. 
 (s) Solvency. (i) The fair value of the property of the Seller is greater than the
total amount of liabilities, including contingent liabilities, of the Seller, (ii) the present fair salable value of the assets of the Seller is not less than the amount that will be required to pay all probable liabilities of the Seller on its
debts as they become absolute and matured, (iii) the Seller does not intend to, and does not believe that it will, incur debts or liabilities beyond the Seller’s abilities to pay such debts and liabilities as they mature and (iv) the
Seller is not engaged in a business or a transaction, and is not about to engage in a business or a transaction, for which the Seller’s property would constitute unreasonably small capital. 

(t) Names. Since the date of its incorporation, the Seller has not used any corporate names, trade names or assumed names other than
the name in which it has executed this Agreement. 

  
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 (u) Ownership of the Seller. 100% of the issued and outstanding capital stock of the
Seller is held by wholly-owned Subsidiaries of Lennox International, free and clear of any Lien. Such capital stock is validly issued, fully paid and nonassessable, and there are no options, warrants or other rights to acquire securities of the
Seller. As of the date of this Agreement, the identity of all holders of capital stock of the Seller and the Initial Seller Notes, the type of capital stock and the amounts of all such capital stock and Initial Seller Notes held by such holders is
as set forth on Schedule 6.1(u). 
 (v) Investment Company. The Seller (i) is not a “covered fund” under the
Volcker Rule and (ii) is not, and after giving effect to the transactions contemplated hereby, will not be required to register as, an “investment company” within the meaning of the Investment Company Act of 1940, as amended from time
to time, or any successor statute. In determining that the Seller is not a covered fund, the Seller either does not rely solely on the exemption from the definition of “investment company” set forth in Section 3(c)(1) and/or 3(c)(7)
of the Investment Company Act of 1940, as amended from time to time, or any successor statute, or is entitled to the benefit of the exclusion for loan securitizations in the Volcker Rule under 17 C.F.R. 75.10(c)(8). 

(w) Taxes. Each Seller Party has filed all material tax returns and reports required by law to have been filed by it and has paid all
taxes and governmental charges thereby shown to be owing, except for immaterial amounts, unless such immaterial amounts give rise to a Lien, and except for any such taxes which are not yet delinquent or are being diligently contested in good faith
by appropriate proceedings and for which adequate reserves in accordance with GAAP shall have been set aside on its books. The Seller is not aware of any judgment or tax lien filings against it. 

(x) Compliance with Laws. Each Seller Party is in compliance with all applicable laws, rules, regulations and orders, including those
with respect to the Pool Receivables and related Contracts, except where the failure to so comply would not individually or in the aggregate have a Material Adverse Effect. 

(y) Liquidation Event. No event has occurred and is continuing that constitutes a Liquidation Event, Unmatured Liquidation Event or
Credit Event. 
 (z) Prior Seller Activities. The Seller was incorporated on June 9, 2000, and since such date it has not
engaged in any business activities other than the transactions contemplated by and permitted by its certificate of incorporation. 
 (aa)
Anti-Corruption Laws and Sanctions. Policies and procedures have been implemented and maintained by or on behalf of each of the Seller Parties that are designed to achieve compliance by the Seller Parties and their respective Subsidiaries,
directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, giving due regard to the nature of such Person’s business and activities, and each of the Seller Parties, their respective Subsidiaries and their
respective officers and employees and, to the knowledge of each of the Seller Parties, their respective officers, employees, directors and agents acting in any capacity in connection with or directly benefitting from the facility established hereby,
are in compliance with Anti-Corruption Laws and applicable Sanctions, in each case in all material respects. None 

  
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of (i) the Seller Parties or any of their respective Subsidiaries or, to the knowledge of the Seller Parties, as applicable, any of their respective directors, officers, employees, or agents
that will act in any capacity in connection with or directly benefit from the facility established hereby, is a Sanctioned Person, and (ii) the Seller Parties nor any of their respective Subsidiaries is organized or resident in a Sanctioned
Country. No Asset Interests purchased hereunder, amounts paid by the Purchasers and/or the Liquidity Banks hereunder to the Seller, or use of proceeds thereof by Seller in any manner, will violate Anti-Corruption Laws or applicable Sanctions. 

Article VII. 
 General
Covenants of the Seller Parties 
 Section 7.1 Affirmative Covenants of the Seller Parties. 

Until the Final Payout Date, unless each Agent shall otherwise consent in writing: 

(a) Compliance With Laws, Etc. Each Seller Party will comply in all material respects with all applicable laws, rules, regulations and
orders, including those with respect to the Pool Receivables and related Contracts, except where the failure to so comply would not individually or in the aggregate have a Material Adverse Effect. 

(b) Preservation of Corporate Existence. Each Seller Party will preserve and maintain its corporate existence, status as a
“registered organization”, rights, franchises and privileges in the jurisdiction of its incorporation, and qualify and remain qualified in good standing as a foreign corporation in each jurisdiction where the failure to preserve and
maintain such existence, rights, franchises, privileges and qualification would have a Material Adverse Effect. 
 (c) Audits. Each
Seller Party will (i) at any time and from time to time upon not less than five (5) Business Days’ notice (unless a Liquidation Event has occurred and is continuing (or any Agent believes in good faith that a Liquidation Event has
occurred and is continuing), in which case no such notice shall be required) during such Seller Party’s regular business hours, permit the Administrative Agent along with each Purchaser Agent, on behalf of such Purchaser Agent’s Purchaser
Group, or any of its agents or representatives, (A) to conduct audits of the Pool Receivables and examine and make copies of and abstracts from all books, records and documents (including, without limitation, computer tapes and disks) in the
possession or under the control of such Seller Party relating to Pool Receivables and the Related Assets, including, without limitation, the related Contracts and purchase orders and other agreements, and (B) to visit the offices and properties
of such Seller Party for the purpose of examining such materials described in clause (i)(A) next above, and to discuss matters relating to Pool Receivables and the Related Assets or such Seller Party’s performance
hereunder with any of the officers or employees (with notification to and coordination with the treasurer of such Seller Party or his designee) of such Seller Party having knowledge of such matters; (ii) permit each Purchaser Agent or any of
its respective agents or representatives, upon not less than five (5) Business Days’ notice from such Purchaser Agent and the consent (which consent shall not unreasonably be withheld or delayed) of such Seller Party (unless a Liquidation
Event has occurred and is continuing (or such Purchaser Agent believes in good faith that a Liquidation Event has occurred 

  
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and is continuing) in which case no such notice or consent shall be required), to meet with the independent auditors of such Seller Party, to review such auditors’ work papers and otherwise
to review with such auditors the books and records of such Seller Party with respect to the Pool Receivables and the Related Assets; and (iii) without limiting the provisions of clause (i) or (ii) next
above, from time to time, at the expense of such Seller Party, permit certified public accountants or other auditors acceptable to each Purchaser Agent to conduct a review of such Seller Party’s books and records with respect to the Pool
Receivables and the Related Assets; provided, that, so long as no Liquidation Event has occurred and is continuing, (I) such reviews shall not be done more than two (2) times in any one calendar year and (II) the Seller Parties
shall be responsible for the costs and expenses of one such review in any one calendar year. 
 (d) Keeping of Records and Books of
Account. The Master Servicer will maintain and implement administrative and operating procedures (including, without limitation, an ability to recreate records evidencing Pool Receivables in the event of the destruction of the originals
thereof), and keep and maintain, all documents, books, records and other information reasonably necessary or advisable for the collection of all Pool Receivables (including, without limitation, records adequate to permit the daily identification of
outstanding Unpaid Balances by Obligor and related debit and credit details of the Pool Receivables). 
 (e) Performance and Compliance
with Receivables and Contracts. Each Seller Party will, at its expense, timely and fully perform and comply with all material provisions, covenants and other promises, if any, required to be observed by it under the Contracts related to the Pool
Receivables and all agreements related to such Pool Receivables. 
 (f) Location of Records. Each Seller Party will keep its chief
place of business and chief executive office, and the offices where it keeps its records concerning the Pool Receivables, the Related Assets, including all related Contracts and all agreements related to such Pool Receivables (and all original
documents relating thereto), at the address(es) of the Master Servicer and the Seller referred to in Section 6.1(n) or, upon 30 days’ prior written notice to the Administrative Agent, at other locations in the United
States. 
 (g) Credit and Collection Policies. Each Seller Party will comply in all material respects with the Credit and Collection
Policy in regard to each Pool Receivable and the related Contract. 
 (h) Sale Agreement. The Seller will perform and comply in all
material respects with all of its covenants and agreements set forth in the Sale Agreement, and will enforce the performance by the Originators of their respective obligations under the Sale Agreement. 

(i) Deposit to Lockbox Accounts. The Seller and the Master Servicer shall instruct all Obligors to deposit all Collections to the
Lockbox Accounts. Upon the establishment of the Collection Account, if any, the Master Servicer shall instruct each Lockbox Bank to deposit all Collections to the Collection Account. The Seller and the Master Servicer will not give any contrary or
conflicting instructions, and will, upon the request of the Master Servicer or the Administrative Agent, confirm such instructions by the Master Servicer or take such other action as may be reasonably required to give effect to such instructions. If
the Seller shall receive any Collections directly, it shall immediately (and in any event within two (2) Business Days) deposit the same to a lockbox connected to a Lockbox Account, a Lockbox Account or the Collection Account in the same form
received. 

  
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 (j) Anti-Corruption Laws and Sanctions. Policies and procedures will be maintained
and enforced (i) by or on behalf of the Seller that are designed in good faith and in a commercially reasonable manner to promote and achieve compliance, in the reasonable judgment of the Seller, by the Seller and its directors, officers,
employees and agents with Anti-Corruption Laws and applicable Sanctions, in each case giving due regard to the nature of such Person’s business and activities and (ii) by or on behalf of each of the Master Servicer and each Originator that
are designed in good faith and in a commercially reasonable manner to promote and achieve compliance, in the reasonable judgment of the Master Servicer and each Originator, by the Master Servicer and each Originator and each of their respective
Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, in each case giving due regard to the nature of such Person’s business and activities. 

Section 7.2 Reporting Requirements of the Seller Parties. 

From the date hereof until the Final Payout Date, unless each Agent shall otherwise consent in writing: 

(a) Quarterly Financial Statements—Lennox International. The Master Servicer will furnish to each Agent, as soon as available and
in any event within 45 days after the end of each of the first three quarters of each fiscal year of Lennox International, copies of its consolidated, and, to the extent otherwise available, consolidating balance sheets and related statements
of income and statements of cash flow, showing the financial condition of Lennox International and its consolidated Subsidiaries as of the close of such fiscal quarter and the results of its operations and the operations of such Subsidiaries during
such fiscal quarter and the then elapsed portion of the fiscal year, together with a Certificate of Financial Officer in the form attached hereto as Exhibit B executed by the chief financial officer or treasurer of Lennox International; 

(b) Annual Financial Statements—Lennox International. The Master Servicer will furnish to each Agent, as soon as available and in
any event within 90 days after the end of each fiscal year of Lennox International, copies of its consolidated and consolidating balance sheets and related statements of income and statements of cash flow, showing the financial condition of Lennox
International and its consolidated Subsidiaries as of the close of such fiscal year and the results of its operations and the operations of such Subsidiaries during such year, all audited by KPMG LLP or other independent public accountants of
recognized national standing acceptable to each Agent and accompanied by an opinion of such accountants (which shall not be qualified in any material respect) to the effect that such consolidated financial statements fairly present the financial
condition and results of operations of Lennox International on a consolidated basis (except as noted therein) in accordance with GAAP consistently applied; 

(c) [Reserved]; 
 (d)
Annual Financial Statements—Seller. The Seller will furnish to each Agent, as soon as available and in any event within 90 days after the end of each fiscal year of the Seller, copies of the financial statements of the Seller, consisting
of at least a balance sheet of the Seller for such year and statements of earnings, cash flows and shareholders’ equity, setting forth in each case in comparative form corresponding figures from the preceding fiscal year, together with a
Certificate of Financial Officer in the form attached hereto as Exhibit B executed by the chief financial officer or treasurer of the Seller; 

  
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 (e) Reports to Holders and Exchanges. In addition to the reports required by
subsections (a), (b) and (d) above, promptly upon any Agent’s request, the Master Servicer will furnish or cause to be furnished to each Agent, copies of any reports specified in such request which
the Master Servicer sends to any of its securityholders, and any reports, final registration statements (excluding exhibits), and each final prospectus and all amendments thereto that the Master Servicer files with the Securities and Exchange
Commission or any national securities exchange other than registration statements relating to employee benefit plans and registrations of securities for selling securities; 

(f) ERISA. Promptly after the filing or receiving thereof, each Seller Party will furnish to each Agent, copies of all reports and
notices with respect to any Reportable Event defined in Article IV of ERISA which any Seller Party or ERISA Affiliate thereof files under ERISA with the Internal Revenue Service, the Pension Benefit Guaranty Corporation or the U.S. Department of
Labor or which such Seller Party or ERISA Affiliate thereof receives from the Pension Benefit Guaranty Corporation, which Reportable Event(s) individually or in the aggregate could have a Material Adverse Effect; 

(g) Liquidation Events, Etc. As soon as possible and in any event within three (3) Business Days after obtaining knowledge of the
occurrence of any Liquidation Event, any Unmatured Liquidation Event, or any Credit Event, each Seller Party will furnish to each Agent, a written statement of the chief financial officer, treasurer or chief accounting officer of such Seller Party
setting forth details of such event and the action that such Seller Party will take with respect thereto; 
 (h) Litigation. As soon
as possible and in any event within ten (10) Business Days of any Seller Party’s knowledge thereof, such Seller Party will furnish to each Agent, notice of (i) any litigation, investigation or proceeding which may exist at any time
which could reasonably be expected to have a Material Adverse Effect and (ii) any development in previously disclosed litigation which development could reasonably be expected to have a Material Adverse Effect; 

(i) Sale Agreement. (i) Promptly after receipt thereof, the Seller will furnish to each Agent, copies of all notices received by
the Seller from any Originator under the Sale Agreement and (ii) as soon as possible and in any event no later than the day of occurrence thereof, the Seller will furnish to each Agent notice that any Originator has stopped selling or
contributing to the Seller, pursuant to the Sale Agreement, all newly arising Receivables; 
 (j) Change in Credit and Collection
Policy. Prior to its effective date, each Seller Party will furnish to each Agent, notice of (i) any material change in the character of such Seller Party’s business, and (ii) any material change in the Credit and Collection
Policy; 

  
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 (k) Change of Independent Director. At least 10 days prior to the effectiveness of
any removal of the Independent Director, and within three Business Days after the death, incapacity or resignation of the Independent Director, the Seller shall furnish to each Agent notice of such event and the date of occurrence thereof, together
with the name and background of the replacement Independent Director; 
 (l) Other. Promptly, from time to time, each Seller Party
will furnish to each Agent such other information, documents, records or reports respecting the Receivables or the condition or operations, financial or otherwise, of such Seller Party as such Agent may from time to time reasonably request in order
to protect the interests of such Agent or the Investors under or as contemplated by this Agreement. 
 Promptly upon receipt thereof, each Purchaser Agent
agrees to send to each Investor in such Purchaser Agent’s Purchaser Group copies of all financial statements, reports, notices, certificates or other items received by such Purchaser Agent under this Section 7.2. 

Documents required to be delivered pursuant to clauses (a), (b) or (e) of this Section 7.2 (to the extent any
such documents are included in reports otherwise filed with the SEC, or any Governmental Authority succeeding to any or all of the functions of the SEC) shall be deemed to have been delivered to each Agent on the date Lennox International has filed
such reports with the SEC via the EDGAR filing system and the Master Servicer has notified each Agent in writing of such posting. 

Section 7.3 Negative Covenants of the Seller Parties. 

From the date hereof until the Final Payout Date, unless each Agent shall otherwise consent in writing: 

(a) Sales, Liens, Etc. (i) The Seller will not, except as otherwise provided herein and in the other Transaction Documents, sell,
assign (by operation of law or otherwise) or otherwise dispose of, or create or suffer to exist any Lien upon or with respect to, any Pool Receivable or any Related Asset, or any interest therein, or any account to which any Collections of any Pool
Receivable are sent, or any right to receive income or proceeds from or in respect of any of the foregoing, and (ii) the Master Servicer will not assert any interest in the Receivables or any other Collateral, except as Master Servicer. 

(b) Extension or Amendment of Receivables. No Seller Party will, except as otherwise permitted in
Section 8.2(c), extend, amend or otherwise modify the terms of any Pool Receivable, or amend, modify or waive any material term or condition of any Contract related thereto in any way that adversely affects the
collectibility of any Pool Receivable or the Investors’ rights therein. 
 (c) Change in Credit and Collection Policy. No Seller
Party will make or permit to be made any material change in the Credit and Collection Policy, which change would impair the collectibility of any significant portion of the Pool Receivables or otherwise adversely affect the interests or remedies of
any Agent or Investor under this Agreement or any other Transaction Document. 

  
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 (d) Change in Payment Instructions to Obligors. No Seller Party will add or terminate
any lockbox or account as a Lockbox Account or bank as a Lockbox Bank from those listed in Schedule 6.1(o) (unless, prior to such addition or termination, the Administrative Agent shall have received an updated
Schedule 6.1(o) and a fully executed Lockbox Agreement with each new Lockbox Bank or with respect to each new lockbox or account) or, make any change in its instructions to Obligors regarding payments to be made to the
Seller or Master Servicer or payments to be made to any Lockbox Bank (except for a change in instructions solely for the purpose of directing Obligors to make such payments to another existing Lockbox Bank). 

(e) Deposits to Collection Account. No Seller Party will deposit or otherwise credit, or cause or permit to be so deposited or
credited, to the Collection Account or any Lockbox Account, any cash or cash proceeds other than Collections of Pool Receivables. 
 (f)
Changes to Other Documents. The Seller will not enter into any amendment or modification of, waiver to, or supplement to, the Sale Agreement or the Seller’s certificate of incorporation. 

(g) Distributions, Etc. The Seller will not declare or make any dividend payment or other distribution of assets, properties, cash,
rights, obligations or securities on account of any shares of any class of capital stock of the Seller, or return any capital to its shareholders as such, or purchase, retire, defease, redeem or otherwise acquire for value or make any payment in
respect of any shares of any class of capital stock of the Seller or any warrants, rights or options to acquire any such shares, now or hereafter outstanding; provided, however, that the Seller may declare and pay cash dividends on its capital stock
to its shareholders so long as (i) no Liquidation Event or Unmatured Liquidation Event shall then exist or would occur as a result thereof, (ii) such dividends are in compliance with all applicable law including the corporate law of the
state of Seller’s incorporation, and (iii) such dividends have been approved by all necessary and appropriate corporate action of the Seller. 

(h) Seller Indebtedness. The Seller will not incur or permit to exist any Indebtedness or liability on account of deposits or advances
or for borrowed money or for the deferred purchase price of any property or services, except (i) indebtedness of the Seller to the Originators incurred in accordance with the Sale Agreement, (ii) current accounts payable arising under the
Transaction Documents and not overdue and (iii) other current accounts payable arising in the ordinary course of business and not overdue, in an aggregate amount at any time outstanding not to exceed $75,000. 

(i) Negative Pledges. No Seller Party will enter into or assume any agreement (other than this Agreement and the other Transaction
Documents) prohibiting the creation or assumption of any Lien upon any Pool Receivables or Related Assets, whether now owned or hereafter acquired, except as contemplated by the Transaction Documents, or otherwise prohibiting or restricting any
transaction contemplated hereby or by the other Transaction Documents. 

  
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 (j) Change of Name; Jurisdiction of Organization; Offices and Records. No Seller
Party shall change (i) its name as it appears in official filings in the jurisdiction of its organization, (ii) its status as a “registered organization” (within the meaning of Article 9 of any applicable enactment of the UCC),
(iii) its organizational identification number, if any, issued by its jurisdiction of organization, or (iv) its jurisdiction of organization unless it shall have: (A) given the Agents at least twenty (20) days’ prior written
notice thereof; (B) at least ten (10) days prior to such change, delivered to the Agents all financing statements, instruments and other documents requested by the Agents in connection with such change or relocation and (C) caused an
opinion of counsel acceptable to the Agents and their respective assigns to be delivered to the Agents and such assigns that Administrative Agent’s security interest (for the benefit of the Secured Parties) is perfected and of first priority
and other corporate matters related to such change, such opinion to be in form and substance acceptable to the Agents and such assigns in their sole discretion. 

(k) Anti-Corruption Laws and Sanctions. (i) The Seller will not request any purchase hereunder, and shall procure that its
directors, officers, employees and agents shall not use, the proceeds of any such purchase (A) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in
violation of any Anti-Corruption Laws, (B) for the purpose of funding or financing any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, in each case to the extent doing so would violate any
applicable Sanctions, or (C) in any other manner that would result in liability to any party hereto under any applicable Sanctions or the violation of any applicable Sanctions by any such Person and (ii) the Master Servicer and each
Originator shall not use, and each of the Master Servicer and each Originator shall procure that its respective Subsidiaries and its or their respective directors, officers, employees and agents shall not use, the proceeds of any purchase made
hereunder (A) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (B) for the purpose of funding or
financing any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, in each case to the extent doing so would violate any applicable Sanctions, or (C) in any other manner that would result in the
violation of any applicable Sanctions by any such Person. 
 (l) Mergers, Consolidations and Acquisitions. 

(i) The Master Servicer will not, nor will it permit any subservicer, to merge into or consolidate with any other Person, or
permit any other Person to merge into or consolidate with it, or purchase, lease or otherwise acquire (in one transaction or a series of transactions) all or substantially all of the assets of any other Person (whether directly by purchase, lease or
other acquisition of all or substantially all of the assets of such Person or indirectly by purchase or other acquisition of all or substantially all of the capital stock of such other Person) other than acquisitions in the ordinary course of their
business, except that if at the time thereof and immediately after giving effect thereto no Liquidation Event or Unmatured Liquidation Event shall have occurred and be continuing (A) the Master Servicer or such subservicer may merge or
consolidate with any Subsidiary (other than Seller) in a transaction in which such Master Servicer or such subservicer is the surviving corporation, and (B) the Master Servicer or such subservicer may purchase, lease or otherwise acquire from
any Subsidiary (other than Seller) all or substantially all of its assets and may purchase or otherwise acquire all or substantially all of the capital stock of any Person who immediately thereafter is a Subsidiary. 

  
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 (ii) Seller will not merge into or consolidate with any other Person, or
permit any other Person to merge into or consolidate with it, or purchase, lease or otherwise acquire (in one transaction or a series of transactions) all or substantially all of the assets of any other Person (whether directly by purchase, lease or
other acquisition of all or substantially all of the assets of such Person or indirectly by purchase or other acquisition of all or substantially all of the capital stock of such other Person) other than the acquisition of the Receivables and
Related Assets pursuant to the Sale Agreement and the sale of an interest in the Pool Receivables and Related Assets hereunder. 
 (m)
[Reserved]. 
 (n) Change in Business. No Seller Party will make or permit to be made any material change in the character of its
business, which change would impair the collectibility of any significant portion of the Pool Receivables or otherwise adversely affect the interests or remedies of the Investors or the Agents under this Agreement or any other Transaction Document.

 Section 7.4 Separate Corporate Existence of the Seller. 

Each Seller Party hereby acknowledges that each Investor and each Agent are entering into the transactions contemplated hereby in reliance
upon the Seller’s identity as a legal entity separate from the Master Servicer and its other Affiliates. Therefore, each Seller Party shall take all steps specifically required by this Agreement or reasonably required by the Agents to continue
the Seller’s identity as a separate legal entity and to make it apparent to third Persons that the Seller is an entity with assets and liabilities distinct from those of its Affiliates, and is not a division of the Master Servicer or any other
Person. Without limiting the foregoing, each Seller Party will take such actions as shall be required in order that: 
 (a) The Seller will
be a limited purpose corporation whose primary activities are restricted in its Certificate of Incorporation to purchasing or otherwise acquiring from the Originators, owning, holding, granting security interests, or selling interests, in
Receivables in the Receivables Pool and Related Assets, entering into agreements for the selling and servicing of the Receivables Pool, and conducting such other activities as it deems necessary or appropriate to carry out such activities; 

(b) At least one member of the Seller’s Board of Directors shall be an Independent Director. The certificate of incorporation of the
Seller shall provide that (i) at least one member of the Seller’s Board of Directors shall be an Independent Director, (ii) the Seller’s Board of Directors shall not approve, or take any other action to cause the filing of, a
voluntary bankruptcy petition with respect to the Seller unless the Independent Director shall approve the taking of such action in writing prior to the taking of such action, (iii) the Independent Director shall be employed by a nationally
recognized provider of corporate or structured finance services, (iv) the Independent Director may not be removed by the Seller’s stockholders or the Seller’s Board of Directors except (w) for cause, (x) in the event the
Independent Director ceases to be employed by the service provider which is his or her employer on the date the Independent Director first becomes an Independent Director or (y) with the consent of the Administrative Agent, not to be
unreasonably withheld or delayed, and that any such removal pursuant to clause (w) or (x) shall not be effective until at least ten days after written notice to the Independent 

  
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Director and the Administrative Agent of such removal and the grounds therefor, and (v) the provisions requiring an Independent Director and the provisions described in
clauses (i), (ii), (iii) and (iv) of this paragraph (b) cannot be amended without the prior written consent of the Independent Director; 

(c) The Independent Director shall not at any time serve as a trustee in bankruptcy for the Seller or any Affiliate thereof; 

(d) Any employee, consultant or agent of the Seller will be compensated from the Seller’s funds for services provided to the Seller. The
Seller will not engage any agents other than its attorneys, auditors and other professionals, and a servicer and any other agent contemplated by the Transaction Documents for the Receivables Pool (the parties acknowledge that the Master Servicer
will be fully compensated for its services by payment of the Servicing Fee), and certain organizational expenses in connection with the formation of the Seller; 

(e) The Seller will contract with the Master Servicer to perform for the Seller all operations required on a daily basis to service the
Receivables Pool. The Seller will pay the Master Servicer the Servicing Fee pursuant hereto. The Seller will not incur any material indirect or overhead expenses for items shared with the Master Servicer (or any other Affiliate thereof) which are
not reflected in the Servicing Fee. To the extent, if any, that the Seller (or any other Affiliate thereof) shares items of expenses not reflected in the Servicing Fee, for legal, auditing and other professional services and directors’ fees,
such expenses will be allocated to the extent practical on the basis of actual use or the value of services rendered, and otherwise on a basis reasonably related to the actual use or the value of services rendered, it being understood that Lennox
shall pay or cause to be paid all expenses relating to the preparation, negotiation, execution and delivery of the Transaction Documents, including, without limitation, legal, rating agency and other fees; 

(f) The Seller shall at all times be adequately capitalized in light of its contemplated business and the Seller’s operating expenses
will not be paid by any other Seller Party or other Affiliate of the Seller; 
 (g) The Seller will have its own stationery; 

(h) The books of account, financial reports and corporate records of the Seller will be maintained separately from those of the Master
Servicer and each other Affiliate of the Seller; 
 (i) Any financial statements of any Seller Party or Affiliate thereof which are
consolidated to include the Seller will contain detailed notes clearly stating that (i) all of the Seller’s assets are owned by the Seller, and (ii) the Seller is a separate corporate entity with its own separate creditors that will
be entitled to be satisfied out of the Seller’s assets prior to any value in the Seller becoming available to the Seller’s equity holders; and the accounting records and the published financial statements of the Originators will clearly
show that, for accounting purposes, the Pool Receivables and Related Assets have been sold by the Originators to the Seller; 
 (j) The
Seller’s assets will be maintained in a manner that facilitates their identification and segregation from those of the Master Servicer and the other Affiliates; 

  
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 (k) Each Affiliate of the Seller will strictly observe corporate formalities in its dealings
with the Seller, and, except as permitted pursuant to this Agreement with respect to Collections, funds or other assets of the Seller will not be commingled with those of any of its Affiliates; 

(l) No Affiliate of the Seller will maintain joint bank accounts with the Seller or other depository accounts with the Seller to which any
such Affiliate (other than in its capacity as the Master Servicer hereunder or under the Sale Agreement) has independent access, provided that prior to the occurrence of a Credit Event, Collections may (following receipt in the Lockbox
Accounts) be deposited into general accounts of the Master Servicer, subject to the obligations of the Master Servicer hereunder; 
 (m) No
Affiliate of the Seller shall, directly or indirectly, name the Seller or enter into any agreement to name the Seller as a direct or contingent beneficiary or loss payee on any insurance policy covering the property of any Affiliate of the Seller;

 (n) Each Affiliate of the Seller will maintain arm’s length relationships with the Seller, and each Affiliate of the Seller that
renders or otherwise furnishes services or merchandise to the Seller will be compensated by the Seller at market rates for such services or merchandise; 

(o) No Affiliate of the Seller will be, nor will it hold itself out to be, responsible for the debts of the Seller or the decisions or actions
in respect of the daily business and affairs of the Seller. The Seller shall not (i) guarantee or become obligated for the debts of any other entity or hold out its credit as being available to satisfy the obligations of others,
(ii) acquire obligations of its shareholders, (iii) pledge its assets for the benefit of any other entity or make any loans or advances to any other entity or (iv) make any payment or distribution of assets with respect to any
obligation of any Affiliate of Seller. The Master Servicer and the Seller will immediately correct any known misrepresentation with respect to the foregoing and they will not operate or purport to operate as an integrated single economic unit with
respect to each other or in their dealing with any other entity; 
 (p) The Seller will hold regular duly noticed meetings of its board of
directors and keep correct and complete books and records of account and minutes of the meetings and other proceedings of its stockholder and board of directors, as applicable, and the resolutions, agreements and other instruments of the Seller will
be continuously maintained as official records by the Seller; 
 (q) The Seller will not participate in the management of any other Seller
Party or any Affiliate thereof; and 
 (r) The Seller, on the one hand, and each Originator, on the other hand, will hold itself out to the
public and conduct its business solely in its own corporate name and in such a separate manner so as not to mislead others with whom they are dealing. 

  
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 Article VIII. 

Administration and Collection 

Section 8.1 Designation of Master Servicer. 

(a) Lennox as Initial Master Servicer. The servicing, administering and collection of the Pool Receivables shall be conducted by the
Person designated as Master Servicer hereunder from time to time in accordance with this Section 8.1. Until the Administrative Agent at the direction of the Purchaser Agents, on the Investors’ behalf, gives to Lennox a
Successor Notice (as defined in Section 8.1(b)), Lennox is hereby designated as, and hereby agrees to perform the duties and obligations of, the Master Servicer pursuant to the terms hereof. Each of the Originators named in
the Sale Agreement, has agreed to act as subservicer for the purpose of performing certain duties and obligations with respect to all Receivables purchased by the Seller from such Originator pursuant to the terms of the Sale Agreement. In so acting
as subservicer, each of the Originators has agreed to comply with, and be bound by, all of the terms and provisions of this Agreement applicable to such Originator in the performance of its duties as subservicer; provided, however,
that each such Originator (i) shall cease to act as subservicer upon the Administrative Agent’s delivery of a Successor Notice to Lennox, and (ii) shall not be entitled to receive any Servicing Fee provided for herein (except that the
Master Servicer may agree to pay to the subservicers a proportional share of the Servicing Fee which obligation shall be that of the Master Servicer). 

(b) Successor Notice; Master Servicer Transfer Events. Upon Lennox’s receipt of a notice from the Administrative Agent of the
Administrative Agent’s designation at the direction of the Purchaser Agents, on the Investors’ behalf, of a new Master Servicer (a “Successor Notice”), Lennox agrees that it will terminate its activities as Master
Servicer hereunder in a manner that the Agents believe will facilitate the transition of the performance of such activities to the new Master Servicer, and the Administrative Agent (or its designee) shall assume each and all of Lennox’s
obligations to service and administer such Receivables, on the terms and subject to the conditions herein set forth, and Lennox shall use its best efforts to assist the Administrative Agent (or its designee) in assuming such obligations. Without
limiting the foregoing, Lennox agrees, at its expense, to take all actions necessary to provide the new Master Servicer with access to all computer software necessary or useful in collecting, billing or maintaining records with respect to the
Receivables. 
 (c) Subcontracts. The Master Servicer may, with the prior consent of the Agents, subcontract with any other Person
for servicing, administering or collecting the Pool Receivables, provided that the Master Servicer shall remain liable for the performance of the duties and obligations of the Master Servicer pursuant to the terms hereof and such subservicing
arrangement may be terminated at the Administrative Agent’s request, at any time after a Successor Notice has been given. 

  
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 Section 8.2 Duties of Master Servicer. 

(a) Appointment; Duties in General. Each of the Seller, the Investors and the Agents hereby appoints as its agent the Master Servicer,
as from time to time designated pursuant to Section 8.1, to enforce its rights and interests in and under the Pool Receivables and the Related Assets and the related Contracts. The Master Servicer shall take or cause to be
taken all such actions as may be necessary or advisable to collect each Pool Receivable from time to time, all in accordance with applicable laws, rules and regulations, with reasonable care and diligence, and in accordance with the Credit and
Collection Policy. In performing its duties as Master Servicer, the Master Servicer shall exercise the same care and apply the same policies as it would exercise and apply if it owned such Receivables and shall act in the best interests of the
Seller and the Investors. 
 (b) Allocation of Collections; Segregation. The Master Servicer shall identify for the account of the
Seller and Investors their respective allocable shares of the Collections of Pool Receivables in accordance with Section 1.3 but shall not be required (unless otherwise requested by the Administrative Agent or any Purchaser
Agent, on behalf of such Purchaser Agent’s Purchaser Group) to segregate the funds constituting such portions of such Collections prior to the remittance thereof in accordance with said Section. If instructed by the Administrative Agent or any
Purchaser Agent, the Master Servicer shall segregate and deposit into the Collection Account, the Investors’ Share of Collections of Pool Receivables, on the second Business Day following receipt by the Master Servicer of such Collections in
immediately available funds. The Master Servicer shall, from time to time after the occurrence and during the continuance of an Unmatured Liquidation Event or a Liquidation Event, at the request of any Purchaser Agent, furnish to such Purchaser
Agent (promptly after any such request) a calculation of the amounts set aside for the Investors in such Purchaser Agent’s Purchaser Group pursuant to Section 3.1. 

(c) Modification of Receivables. So long as no Credit Event, no Liquidation Event and no Unmatured Liquidation Event shall have
occurred and be continuing, Lennox, while it is Master Servicer, may, in accordance with the applicable Credit and Collection Policy, (i) extend the maturity or adjust the Unpaid Balance of any Defaulted Receivable as the Master Servicer may
reasonably determine to be appropriate to maximize Collections thereof, and (ii) adjust the Unpaid Balance of any Receivable to reflect the reductions or cancellations described in the first sentence of Section 3.2(a);
provided that such extension or adjustment shall not alter the status of such Receivables as Delinquent Receivables or Defaulted Receivables or limit the rights of any Agent or any Investor with respect thereto. 

(d) Documents and Records. Each Seller Party shall deliver to the Master Servicer, and the Master Servicer shall hold in trust for the
Seller and the Purchaser Agents, on behalf of the Investors, in accordance with their respective interests, all documents, instruments and records (including, without limitation, computer tapes or disks) that evidence or relate to Pool Receivables.

 (e) Certain Duties to the Seller. The Master Servicer shall, as soon as practicable following receipt, turn over to the Seller
(i) that portion of Collections of Pool Receivables representing its undivided percentage ownership interest therein, less the Seller’s Share of the Servicing Fee, and, in the event that neither Lennox nor any other Seller Party or
Affiliate thereof is the Master Servicer, all reasonable and appropriate out-of-pocket costs and expenses of the Master Servicer of servicing, collecting and
administering the Pool Receivables to the extent not covered by the Servicing Fee received by it, and (ii) the Collections of any Receivable which is not a Pool Receivable. The Master Servicer, if other than Lennox or any other Seller Party or

  
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Affiliate thereof, shall, as soon as practicable upon demand, deliver to the Seller all documents, instruments and records in its possession that evidence or relate to Receivables of the Seller
other than Pool Receivables, and copies of documents, instruments and records in its possession that evidence or relate to Pool Receivables. 

(f) Termination. The Master Servicer’s authorization under this Agreement shall terminate upon the Final Payout Date. 

(g) Power of Attorney. The Seller hereby grants to the Master Servicer an irrevocable power of attorney, with full power of
substitution, coupled with an interest, to take in the name of the Seller all steps which are necessary or advisable to endorse, negotiate or otherwise realize on any writing or other right of any kind held or transmitted by the Seller or
transmitted or received by the Master Servicer (whether or not from the Seller) in connection with any Receivable. 
 Section 8.3
[Reserved]. 
 Section 8.4 Servicer Defaults. 

Each of the following events shall constitute a “Servicer Default”: 

(a) any failure by the Master Servicer to make any payment, transfer or deposit or to give instructions or notice to any Agent as required by
this Agreement including, without limitation, delivery of any Information Package or Interim Information Package or any failure to make any payment or deposit required to be made in order to reduce the Asset Interest to the Allocation Limit and,
(i) in the case of failure to deliver an Information Package or Interim Information Package, as the case may be, such failure shall remain unremedied for two (2) Business Days after the earliest to occur of (A) written notice thereof
shall have been given by any Agent to the Master Servicer or (B) the Master Servicer shall have otherwise become aware of such failure and (ii) except with respect to any payment or deposit required to be made in order to reduce the Asset
Interest to the Allocation Limit which shall be made when due, in the case of failure to make any payment or deposit to be made by the Master Servicer such failure shall remain unremedied for three (3) Business Days after the due date thereof;

 (b) any failure on the part of the Master Servicer duly to observe or perform in any material respect any other covenants or agreements
of the Master Servicer set forth in this Agreement or any other Transaction Document to which the Master Servicer is a party, which failure continues unremedied for a period of 30 days after the first to occur of (i) the date on which written
notice of such failure requiring the same to be remedied shall have been given to the Master Servicer by any Agent and (ii) the date on which the Master Servicer becomes aware thereof; 

(c) any representation, warranty or certification made by the Master Servicer in this Agreement or in any certificate delivered pursuant to
this Agreement shall prove to have been false or incorrect in any material respect when made, which continues to be unremedied for a period of 30 days after the first to occur of (i) the date on which written notice of such incorrectness
requiring the same to be remedied shall have been given to the Master Servicer by any Agent and (ii) the date on which the Master Servicer becomes aware thereof; provided, however, that in the case of any representation, warranty
or certification that was not made in writing, a Servicer Default shall occur hereunder only if such representation, warranty or certification was reasonably relied upon by any Agent and/or the Investors; 

  
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 (d) a Credit Event shall occur or any bankruptcy, insolvency or similar event occurs with
respect to the Master Servicer; or 
 (e) any change in the control of the Master Servicer which takes the form of either a merger or
consolidation in which the Master Servicer is not the surviving entity. 
 Notwithstanding anything herein to the contrary, so long as any such Servicer
Default shall not have been remedied, the Administrative Agent (at the direction of any Purchaser Agent), by written notice to the Master Servicer (a “Termination Notice”), may terminate all of the rights and obligations of
the Master Servicer as Master Servicer under this Agreement and appoint a successor Master Servicer satisfactory to the Administrative Agent (in the Administrative Agent’s sole discretion). 

Section 8.5 Rights of the Administrative Agent. 

(a) Notice to Obligors. At any time when a Liquidation Event has occurred and is continuing, the Administrative Agent, at the request
of the Purchaser Agents, may notify the Obligors of Pool Receivables, or any of them, of the ownership of the Asset Interest by the Investors. 

(b) Notice to Lockbox Banks. At any time, the Administrative Agent is hereby authorized to give notice to the Lockbox Banks, as
provided in the Lockbox Agreements, directing disposition of the funds in the Lockbox Accounts. 
 (c) Rights on Servicer Transfer
Event. At any time following the designation of a Master Servicer other than Lennox pursuant to Section 8.1: 

(i) The Administrative Agent may, or at the request of the Purchaser Agents, shall, direct the Obligors of Pool Receivables, or
any of them, to pay all amounts payable under any Pool Receivable directly to the Collection Account, or otherwise to the Administrative Agent or its designee. 

(ii) Any Seller Party shall, at the Administrative Agent’s request and at such Seller Party’s expense, give notice of
the Investors’ ownership and security interests in the Pool Receivables to each Obligor of Pool Receivables and direct that payments be made directly to the Collection Account or otherwise to the Administrative Agent or its designee. 

(iii) Each Seller Party shall, at the Administrative Agent’s request (at the direction of any Purchaser Agent),
(A) assemble all of the documents, instruments and other records (including, without limitation, computer programs, tapes and disks) which evidence the Pool Receivables, the Related Assets, and the related Contracts, or which are otherwise
necessary or desirable to collect such Pool Receivables, and make the same available to the successor Master Servicer at a place selected by such Agent, and 

  
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(B) segregate all cash, checks and other instruments received by it from time to time constituting Collections of Pool Receivables in a manner acceptable to the Agents and promptly upon
receipt, remit all such cash, checks and instruments, duly endorsed or with duly executed instruments of transfer, to the successor Master Servicer. 

(iv) Each Seller Party hereby authorizes the Administrative Agent, and grants to the Administrative Agent an irrevocable power
of attorney (which shall terminate on the Final Payout Date), to take any and all steps in such Seller Party’s name and on behalf of the Seller Parties which are necessary or desirable, in the determination of the Administrative Agent, to
collect all amounts due under any and all Pool Receivables, including, without limitation, endorsing any Seller Party’s name on checks and other instruments representing Collections and enforcing such Pool Receivables and the related Contracts.

 Section 8.6 Responsibilities of the Seller Parties. 

Anything herein to the contrary notwithstanding: 

(a) Contracts. Each Seller Party shall remain responsible for performing all of its obligations (if any) under the Contracts related to
the Pool Receivables and under the related agreements to the same extent as if the Asset Interest had not been sold hereunder, and the exercise by the Administrative Agent or its designee of its rights hereunder shall not relieve any Seller Party
from such obligations. 
 (b) Limitation of Liability. No Agent or Investor shall have any obligation or liability with respect to
any Pool Receivables, Contracts related thereto or any other related agreements, nor shall any of them be obligated to perform any of the obligations of any Seller Party or any Originator thereunder. 

Section 8.7 Further Action Evidencing Purchases and Reinvestments. 

(a) Further Assurances. Each Seller Party agrees that from time to time, at its expense, it will promptly execute and deliver all
further instruments and documents, and take all further action that the Administrative Agent or its designee may reasonably request in order to perfect, protect or more fully evidence the Purchases hereunder and the resulting Asset Interest, or to
enable the Secured Parties or the Agents or any of their respective designees to exercise or enforce any of their respective rights hereunder or under any Transaction Document in respect thereof. Without limiting the generality of the foregoing,
each Seller Party will: 
 (i) upon the request of the Administrative Agent in its discretion or at the direction of the
Purchaser Agents, on behalf of the Investors, execute and file such financing or continuation statements, or amendments thereto or assignments thereof, and such other instruments or notices, as may be necessary or appropriate, in accordance with the
terms of this Agreement; 
 (ii) upon the request of the Administrative Agent at the direction of any Purchaser Agent, after
the occurrence and during the continuance of a Liquidation Event, mark conspicuously each Contract evidencing each Pool Receivable with a legend, acceptable to the Agents, evidencing that the Asset Interest has been sold in accordance with this
Agreement; and 

  
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 (iii) mark its master data processing records evidencing the Pool
Receivables and related Contracts with a legend, acceptable to the Agents, evidencing that the Asset Interest has been sold in accordance with this Agreement. 

(b) Additional Financing Statements; Performance by Administrative Agent. Each Seller Party hereby authorizes the Administrative Agent,
on behalf of the Secured Parties, or its designee, to file one or more financing or continuation statements, and amendments thereto and assignments thereof, relative to all or any of the Pool Receivables and the Related Assets now existing or
hereafter arising in the name of any Seller Party, which financing statements filed against the Seller may describe the collateral covered thereby as “all assets of the Seller,” “all personal property of the Seller” or words of
similar effect. If any Seller Party fails to perform any of its agreements or obligations under this Agreement, the Administrative Agent or its designee may (but shall not be required to) itself perform, or cause performance of, such agreement or
obligation, and the reasonable expenses of the Administrative Agent or its designee incurred in connection therewith shall be payable by the Seller Parties as provided in Section 14.5. 

(c) Continuation Statements; Opinion. Without limiting the generality of subsection (a), the Seller will, not
earlier than six (6) months and not later than three (3) months prior to the fifth anniversary of the date of filing of the financing statements referred to in Section 5.1(a) or any other financing statement filed
pursuant to this Agreement or in connection with any Purchase hereunder, if the Final Payout Date shall not have occurred: 

(i) if necessary, deliver and file or cause to be filed an appropriate continuation statement with respect to such financing
statement; and 
 (ii) deliver or cause to be delivered to each Agent an opinion of the counsel for the Seller Parties (which
may be an opinion of in-house counsel for the Seller Parties), in form and substance reasonably satisfactory to each Agent, confirming and updating the opinion delivered pursuant to
Section 5.1(a) to the effect that the Asset Interest hereunder continues to be a valid and perfected ownership or security interest, subject to no other Liens of record except as provided herein or otherwise permitted
hereunder. 
 Section 8.8 Application of Collections. 

Any payment by an Obligor in respect of any indebtedness owed by it to any Originator or Seller shall, except as otherwise specified by such
Obligor or required by the underlying Contract or law, be applied, first, as a Collection of any Pool Receivable or Receivables then outstanding of such Obligor in the order of the age of such Pool Receivables, starting with the oldest of such Pool
Receivables and, second, to any other indebtedness of such Obligor. 

  
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 Article IX. 

Security Interest 

Section 9.1 Grant of Security Interest. 

To secure all obligations of the Seller arising in connection with this Agreement and each other Transaction Document, whether now or
hereafter existing, due or to become due, direct or indirect, or absolute or contingent, including, without limitation, all Indemnified Amounts, payments on account of Collections received or deemed to be received and fees, the Seller hereby assigns
and pledges to the Administrative Agent, as agent for and for the benefit of the Secured Parties and their respective successors and assigns, and hereby grants to the Administrative Agent, as agent for and for the benefit of the Secured Parties, a
security interest in, all of the Seller’s right, title and interest now or hereafter existing in, to and under all assets of the Seller, including, without limitation, (a) all the Pool Receivables and Related Assets (and including
specifically any undivided percentage ownership interest therein retained by the Seller hereunder), (b) the Sale Agreement and the other Transaction Documents, including, without limitation, (i) all rights of the Seller to receive moneys
due or to become due under or pursuant to the Sale Agreement or the Assurance Agreement, (ii) all security interests and property subject thereto from time to time purporting to secure payment of monies due or to become due under or pursuant to
the Sale Agreement or the Assurance Agreement, (iii) all rights of the Seller to receive proceeds of any insurance, indemnity, warranty or guaranty with respect to the Sale Agreement or the Assurance Agreement, (iv) claims of the Seller
for damages arising out of or for breach of or default under the Sale Agreement or the Assurance Agreement, and (v) the right of the Seller to compel performance and otherwise exercise all remedies thereunder, (c) each lockbox related to a
Lockbox Account, each Lockbox Account and the funds deposited therein, and (d) all proceeds of any of the foregoing (collectively, the “Collateral”). 

Section 9.2 Further Assurances. 

The provisions of Section 8.7 shall apply to the security interest granted under
Section 9.1 as well as to the Purchases, Reinvestments and all the Asset Interests hereunder. 

Section 9.3 Remedies. 

Upon the occurrence of a Liquidation Event, the Administrative Agent, on behalf of the Secured Parties shall have, with respect to the
Collateral granted pursuant to Section 9.1, and in addition to all other rights and remedies available to any Investor or Agent under this Agreement and the other Transaction Documents or other applicable law, all the
rights and remedies of a secured party upon default under the UCC. 

  
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 Article X. 

Liquidation Events 

Section 10.1 Liquidation Events. 

The following events shall be “Liquidation Events” hereunder: 

(a) The Master Servicer (if any Seller Party or Affiliate thereof is the Master Servicer) or the Seller (in the case of
clause (ii) below) (i) shall fail to perform or observe any term, covenant or agreement that is an obligation of the Master Servicer hereunder (other than as referred to in clause (ii) or (iii) below
or in other paragraphs of this Section 10.1), and such failure shall remain unremedied for fifteen (15) days after written notice thereof shall have been given by the Administrative Agent to the Master Servicer or the
Master Servicer shall have otherwise become aware, or (ii) shall fail to make any payment or deposit to be made by it hereunder when due which failure shall continue for one (1) Business Day, if such payment or deposit is in connection
with the reduction of the Invested Amount or for two (2) Business Days for any other payment, or (iii) shall fail to deliver any Information Package or Interim Information Package when due and such failure shall remain unremedied for two
(2) Business Days after the earliest to occur of (A) written notice thereof shall have been given by any Agent to the Master Servicer or (B) the Master Servicer shall have otherwise become aware of such failure; or 

(b) Any representation or warranty made or deemed to be made by any Seller Party, any Originator or Lennox International (or any of its
officers) under this Agreement or any other Transaction Document or any Information Package, Interim Information Package or other information or report delivered pursuant hereto shall prove to have been false or incorrect in any material respect
when made provided, however, that in the case of any representation, warranty or information that was not made or provided in writing, a Liquidation Event shall occur hereunder only if such representation, warranty or information was
reasonably relied upon by any Agent and/or any Investor; or 
 (c) Any Seller Party or any Originator shall fail to perform or observe
(i) any other term, covenant or agreement contained in this Agreement (other than as referred to in clause (ii) below) or any of the other Transaction Documents on its part to be performed or observed and any such failure shall
remain unremedied for fifteen (15) days (or with respect to Section 7.1(c) hereof, five (5) days) after written notice thereof shall have been given by any Agent to any Seller Party or such Seller Party shall have
otherwise become aware or (ii) any covenant applicable to such Person contained in Section 7.3 hereof or Section 6.3 of the Sale Agreement; or 

(d) Any Seller Party, any Originator or Lennox International shall (A) fail to pay any principal or interest, regardless of amount, due
in respect of any Indebtedness (including, without limitation, any such Indebtedness relating to the purchase of receivables or under any asset securitization agreement or arrangement) when the aggregate unpaid principal amount is in excess of in
the case of the Seller, $25,000, or in the case of Lennox International, any Originator or the Master Servicer $75,000,000 when and as the same shall become due and payable (after 

  
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expiration of any applicable grace period) or (B) fail to observe or perform any other term, covenant, condition or agreement (after expiration of any applicable grace period) contained in
any agreement or instrument evidencing or governing any such Indebtedness if the effect of any failure referred to in this clause (B) is to cause such Indebtedness to become due prior to its stated maturity; or 

(e) An Event of Bankruptcy shall have occurred and remain continuing with respect to Lennox International, any Originator or any Seller Party;
or 
 (f) The Seller shall become an “investment company” within the meaning of the Investment Company Act of 1940; or 

(g) The rolling 3 month average Dilution Ratio at any Cut-Off Date exceeds 12.00%; or 

(h) The rolling 3 month average Default Ratio at any Cut-Off Date exceeds 3.00%; or 

(i) The rolling 3 month average Delinquency Ratio at any Cut-Off Date exceeds 4.50%; or 

(j) On any Settlement Date, after giving effect to the payments made under Section 3.1(c), (i) the Asset
Interest exceeds 100%, (ii) the Invested Amount exceeds the Purchase Limit in effect at such time; or (iii) the Purchaser Group Invested Amount of any Purchaser Group exceeds such Purchaser Group’s Purchaser Group Limit in effect at
such time, and, in the case of any failure to make a timely payment or deposit with respect thereto solely by reason of any mechanical delay in or malfunction of the Fedwire system or due to an error on the part of the initiating or receiving bank
such failure shall continue for more than one (1) Business Day; or 
 (k) There shall have occurred any event which materially
adversely impairs the ability of the Originators to originate Receivables of a credit quality which are at least of the credit quality of the Receivables included in the first Purchase hereunder, or any other event occurs that is reasonably likely
to have a Material Adverse Effect; or 
 (l) Any Seller Party, Originator or Lennox International is subject to a Change in Control; or 

(m) The Internal Revenue Service shall file notice of a lien pursuant to Section 6323 of the Code with regard to any of the Receivables
or Related Assets and such lien shall not have been released within seven (7) days, or the Pension Benefit Guaranty Corporation shall, or shall indicate its intention to, file notice of a lien pursuant to Section 4068 of the Employee
Retirement Income Security Act of 1974 with regard to any of the Receivables or Related Assets; or 
 (n) Any Seller Party or any Originator
shall make any material change in the policies as to origination of Receivables or in its Credit and Collection Policy without prior written notice to and consent of the Agents; or 

  
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 (o) The Administrative Agent for the benefit of the Secured Parties, for any reason, does
not have a valid, perfected first priority undivided percentage ownership interest in the Pool Receivables and the Related Assets; or the security interest created pursuant to Section 9.1 shall for any reason cease to be a
valid and perfected first priority security interest in the Collateral; or 
 (p) A final judgment or judgments shall be rendered against
Lennox International, the Master Servicer, the Seller, any Originator or any combination thereof for the payment of money with respect to which an aggregate amount in excess of $25,000 with respect to the Seller and $75,000,000 with respect to
Lennox International, any Originator or the Master Servicer is not covered by insurance and the same shall remain undischarged for a period of 30 consecutive days during which execution shall not be effectively stayed, or any action shall be legally
taken by a judgment creditor to levy upon assets or properties of Lennox International, the Master Servicer, any Originator or the Seller to enforce any such judgment; or 

(q) A Reportable Event or Reportable Events, or a failure to make a required installment or other payment (within the meaning of
Section 412(n)(1) of the Code), shall have occurred with respect to any Plan or Plans that reasonably could be expected to result in liability of any Master Servicer or any ERISA Affiliate to the Pension Benefit Guaranty Corporation
(“PBGC”) or to a Plan in an aggregate amount exceeding $5,000,000 and, within 30 days after the reporting of any such Reportable Event to the Agents, the Administrative Agent shall have notified the Master Servicer in writing
that (i) it or any other Agent has made a determination that, on the basis of such Reportable Event or Reportable Events or the failure to make a required payment, there are reasonable grounds (A) for the termination of such Plan or Plans
by the PBGC, (B) for the appointment by the appropriate United States District Court of a trustee to administer such Plan or Plans or (C) for the imposition of a lien in favor of a Plan and (ii) as a result thereof a Liquidation Event
exists hereunder; or a trustee shall be appointed by a United States District Court to administer any such Plan or Plans; or the PBGC shall institute proceedings to terminate any Plan or Plans; 

(r) The occurrence of a Servicer Default; 

(s) The Seller’s Net Worth shall be less than the Threshold Amount; 

(t) the Sale Agreement or the Assurance Agreement shall cease for any reason to be in full force and effect; or 

(u) An Event of Default (as defined in the Credit Agreement) shall have occurred, regardless of whether such Event of Default has been waived
by the parties to the Credit Agreement. 
 Section 10.2 Remedies. 

(a) Optional Liquidation. Upon the occurrence of a Liquidation Event (other than a Liquidation Event described in
subsection (e) of Section 10.1), the Administrative Agent shall, at the request, or may with the consent, of any Purchaser Agent, by notice to the Seller declare the Funding Termination Date to
have occurred and the Liquidation Period to have commenced. 

  
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 (b) Automatic Liquidation. Upon the occurrence of a Liquidation Event described in
subsection (e) of Section 10.1, the Funding Termination Date shall occur and the Liquidation Period shall commence automatically. 

(c) Additional Remedies. Upon the occurrence of the Termination Date, no Purchases or Reinvestments thereafter will be made, and the
Administrative Agent, on behalf of the Secured Parties, shall have, in addition to all other rights and remedies under this Agreement or otherwise, all other rights and remedies provided under the UCC of each applicable jurisdiction and other
applicable laws, which rights shall be cumulative. 
 Article XI. 

The Administrative Agent 

Section 11.1 Administrative Agent Authorization and Action. 

Each Investor and Purchaser Agent hereby appoints and authorizes the Administrative Agent (or its designees) to take such action as agent on
its behalf and to exercise such powers under this Agreement as are delegated to the Administrative Agent by the terms hereof, together with such powers as are reasonably incidental thereto. As to any matters not expressly provided for by this
Agreement or the other Transaction Documents (including, without limitation, enforcement of this Agreement or the other Transaction Documents), the Administrative Agent shall not be required to exercise any discretion or take any action, but shall
be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the instructions of any Purchaser Agent and such instructions shall be binding upon all Investors; provided, however, that the
Administrative Agent shall not be required to take any action which exposes the Administrative Agent to personal liability or which is contrary to this Agreement, the other Transaction Documents or applicable law. 

Section 11.2 Administrative Agent’s Reliance, Etc. 

The Administrative Agent and its directors, officers, agents or employees shall not be liable for any action taken or omitted to be taken by
it or them in good faith under or in connection with the Transaction Documents (including, without limitation, the servicing, administering or collecting Pool Receivables as Master Servicer pursuant to Section 8.1), except
for its or their own breach of the applicable terms of the Transaction Documents or its or their own gross negligence or willful misconduct. Without limiting the generality of the foregoing, the Administrative Agent: (a) may consult with legal
counsel (including counsel for the Seller), independent certified public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such
counsel, accountants or experts; (b) makes no warranty or representation to the Investors or any other holder of any interest in Pool Receivables and shall not be responsible to the Investors or any such other holder for any statements,
warranties or representations made by any Seller Party in or in connection with any Transaction Document; (c) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of
any Transaction Document on the part of any Seller Party or to inspect the property (including the books and records) of any Seller Party; (d) shall not be responsible to the Investors or any 

  
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other holder of any interest in Pool Receivables for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of any Transaction Document; and (e) shall incur
no liability under or in respect of this Agreement by acting upon any notice (including notice by telephone where permitted herein), consent, certificate or other instrument or writing (which may be by facsimile) in good faith believed by it to be
genuine and signed or sent by the proper party or parties. 
 Section 11.3 MUFG and Affiliates. 

MUFG and any of its Affiliates may generally engage in any kind of business with Seller, Master Servicer, any Originator or any Obligor, any
of their respective Affiliates and any Person who may do business with or own securities of Seller, Master Servicer, Originator or any Obligor or any of their respective Affiliates, all as if MUFG were not the Administrative Agent and without any
duty to account therefor to any Investor or any other holder of an interest in Pool Receivables. 
 Section 11.4
Liquidity Bank’s Purchase Decision. 
 Each Liquidity Bank acknowledges that it has,
independently and without reliance upon any Agent, any of its Affiliates or any other Liquidity Bank and based on such documents and information as it has deemed appropriate, made its own evaluation and decision to enter into this Agreement. Each
Liquidity Bank also acknowledges that it will, independently and without reliance upon any Agent, any of its Affiliates or any other Liquidity Bank and based on such documents and information as it shall deem appropriate at the time, continue to
make its own decisions in taking or not taking action under this Agreement. 
 Section 11.5 Indemnification of Agent.

 Each Liquidity Bank agrees to indemnify the Administrative Agent (to the extent not reimbursed by the Seller or the Master Servicer),
ratably according to its Percentage of the Pro Rata Share of its Purchaser Group, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever which may be imposed on, incurred by, or asserted against the Administrative Agent in any way relating to or arising out of this Agreement or the other Transaction Documents or any action taken or omitted by the Administrative Agent under
this Agreement or the other Transaction Documents, provided that no Liquidity Bank shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from the Administrative Agent’s breach of the applicable terms of the Transaction Documents or its own gross negligence or willful misconduct. 

Section 11.6 Purchaser Agent Authorization and Action. 

Pursuant to agreements entered into with the MUFG Purchaser Agent, the MUFG Purchaser has appointed and authorized the MUFG Purchaser Agent
(or its designees), to take such action as agent on its behalf and to exercise such powers under this Agreement as are delegated to the MUFG Purchaser Agent by the terms hereof, together with such powers as are reasonably incidental thereto. 

  
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 Section 11.7 Purchaser Agent’s Reliance, Etc.

 (a) Each Purchaser Agent and its directors, officers, agents or employees shall not be liable for any action taken or omitted to be
taken by it or them in good faith under or in connection with the Transaction Documents (including, without limitation, the servicing, administering or collecting Pool Receivables as Master Servicer pursuant to
Section 8.1), except for its or their own breach of the applicable terms of the Transaction Documents or its or their own gross negligence or willful misconduct. Without limiting the generality of the foregoing, each
Purchaser Agent: (a) may consult with legal counsel (including counsel for the Seller), independent certified public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken in good faith
by it in accordance with the advice of such counsel, accountants or experts; (b) makes no warranty or representation to any Investor or any other holder of any portion of its respective Purchaser Group’s interest in Pool Receivables and
shall not be responsible to any Investor or any such other holder for any statements, warranties or representations made by any Seller Party in or in connection with any Transaction Document; (c) shall not have any duty to ascertain or to
inquire as to the performance or observance of any of the terms, covenants or conditions of any Transaction Document on the part of any Seller Party or to inspect the property (including the books and records) of any Seller Party; (d) shall not
be responsible to any Investor or any other holder of any of the its respective Purchaser Group’s interest in Pool Receivables for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of any Transaction
Document; and (e) shall incur no liability under or in respect of this Agreement by acting upon any notice (including notice by telephone where permitted herein), consent, certificate or other instrument or writing (which may be by facsimile)
in good faith believed by it to be genuine and signed or sent by the proper party or parties. 
 Article XII. 

Assignments 

Section 12.1 Restrictions on Assignments. 

(a) No Seller Party may assign its rights, or delegate its duties hereunder or any interest herein without the prior written consent of the
Agents (except a Seller Party may delegate certain administrative duties to an Affiliate, such as payroll, financial reporting, tax and the like, so long as such Seller Party remains liable for performance of such duties). 

(b) This Agreement and the Purchasers’ rights and obligations herein (including ownership of the Asset Interest) shall be assignable by
the Purchasers and their successors and assigns to any Eligible Assignee (including, without limitation, pursuant to a Liquidity Agreement). Each assignor of an Asset Interest or any interest therein shall notify the Administrative Agent, the
Purchaser Agent of such assignor’s Purchaser Group and the Seller of any such assignment. Each assignor of a Asset Interest or any interest therein may, in connection with any such assignment, disclose to the assignee or potential assignee any
information relating to any Seller Party or any Originator, furnished to such assignor by or on behalf of such Seller Party or by any Agent; provided that, prior to any the disclosure of any Seller Information, the assignee or potential assignee
agrees to preserve the confidentiality of any such information which is confidential in accordance with the provisions of Section 14.7 hereof. 

  
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 (c) Each Liquidity Bank may assign to any Eligible Assignee or to any other Liquidity Bank
all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of any Asset Interest therein owned by it); provided, however, that (i) each such assignment shall be of a
constant, and not a varying, percentage of all rights and obligations under this Agreement, (ii) the amount being assigned pursuant to each such assignment (determined as of the date of the Assignment and Acceptance Agreement with respect to
such assignment) shall in no event be less than the lesser of (x) $10,000,000 and (y) such Liquidity Bank’s Percentage of its Purchaser Group’s Purchaser Group Limit in effect at such time, (iii) the parties to each
such assignment shall execute and deliver to the Administrative Agent and the Purchaser Agent in such Liquidity Bank’s Purchaser Group, an Assignment and Acceptance Agreement, and (iv) to the extent applicable, concurrently with such
assignment, such assignor Liquidity Bank shall assign to such assignee Liquidity Bank or other Eligible Assignee an equal percentage of its rights and obligations under any Liquidity Agreement. 

(d) Notwithstanding any other provision of this Section 12.1, (i) any Liquidity Bank may at any time pledge or
grant a security interest in all or any portion of its rights (including, without limitation, rights to payment of Earned Discount) under this Agreement or under any Liquidity Agreement to secure obligations of such Liquidity Bank to a Federal
Reserve Bank, without notice to or consent of the Seller or any Agent; provided that no such pledge or grant of a security interest shall release a Liquidity Bank from any of its obligations hereunder or under such Liquidity Agreement, as the case
may be, or substitute any such pledgee or grantee for such Liquidity Bank as a party hereto or to such Liquidity Agreement, as the case may be; and (ii) each Purchaser may assign and grant a security interest in all of its rights in the
Transaction Documents, together with all of its rights and interest in the Asset Interest, to secure such Purchaser’s obligations under or in connection with the Commercial Paper Notes, the related Liquidity Agreement, and certain other
obligations of such Purchaser incurred in connection with the funding of the Purchases and Reinvestments hereunder, which assignment and grant of a security interest shall not be considered an “assignment” prior to the enforcement of such
security interest, for purposes of any provision of this Agreement. 
 Section 12.2 Rights of
Assignee. 
 (a) Upon the execution and delivery and effectiveness of an Assignment and Acceptance Agreement, (x) the assignee
Liquidity Bank thereunder shall be a party to this Agreement and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such Assignment and Acceptance Agreement, have the rights and obligations of a Liquidity Bank
hereunder and (y) the assigning Liquidity Bank shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to such Assignment and Acceptance Agreement, relinquish such rights and be released from such
obligations under this Agreement (and, in the case of an Assignment and Acceptance Agreement covering all or the remaining portion of an assigning Liquidity Bank’s rights and obligations under this Agreement, such Liquidity Bank shall cease to
be a party hereto). 

  
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 (b) Upon the assignment by a Purchaser in accordance with this
Article XII, the assignee receiving such assignment shall have all of the rights of the related Purchaser with respect to the Transaction Documents and the Asset Interest (or such portion thereof as has been assigned) and
the assigning Purchaser shall, to the extent that rights and obligations hereunder have been assigned by it, relinquish such rights and be released from such obligations under this Agreement. 

Section 12.3 Terms and Evidence of Assignment. 

Any assignment of the Asset Interest (or any portion thereof) or any commitment hereunder to any Person which is otherwise permitted under
this Article XII shall be upon such terms and conditions as the related assignor and the assignee may mutually agree, and may be evidenced by such instrument(s) or document(s) as may be satisfactory to the assignor, the
related Purchaser Agent, the Administrative Agent and the assignee, which shall include, with respect to any assignment by a Liquidity Bank, an Assignment and Acceptance Agreement. 

Section 12.4 Rights of Liquidity Banks. 

The Seller hereby agrees that, upon notice to the Seller, the Liquidity Banks may exercise all the rights of the Purchaser Agent and Purchaser
in such Liquidity Bank’s Purchaser Group, with respect to the portion of the Asset Interest funded by such Purchaser Group (or any portions thereof), and Collections with respect thereto, which are owned by such Purchaser, and all other rights
and interests of such Purchaser in, to or under this Agreement or any other Transaction Document. Without limiting the foregoing, upon such notice or at any time thereafter (but subject to any conditions applicable to the exercise of such rights by
the Agents), the Liquidity Banks may request the Master Servicer to segregate such Purchaser’s allocable shares of Collections from the Seller’s allocable share, may require the Administrative Agent to give a Successor Notice pursuant to
and in accordance with Section 8.1(b), may require the Administrative Agent to give notice to the Lockbox Banks as referred to in Section 8.5(b) and may direct the Administrative Agent to direct
the Obligors of Pool Receivables to make payments in respect thereof directly to an account designated by them, in each case, to the same extent as such Purchaser Agent might have done. 

Article XIII. 

Indemnification 

Section 13.1 Indemnities by the Seller. 

(a) General Indemnity. Without limiting any other rights which any such Person may have hereunder or under applicable law, the Seller
hereby agrees to indemnify MUFG, both individually and as the Administrative Agent and the MUFG Purchaser Agent, the WFB Purchaser Agent, the PNC Purchaser Agent, the Purchasers, the Liquidity Banks, the Liquidity Agents, each of their respective
Affiliates, and all successors, transferees, participants and assigns and all officers, directors, shareholders, controlling persons, and employees of any of the foregoing, and any successor servicer and subservicer not affiliated with Lennox (each
an “Indemnified Party”), forthwith on demand, from and against any and all damages, losses, 

  
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claims, liabilities and related costs and expenses, including attorneys’ fees and disbursements (all of the foregoing being collectively referred to as “Indemnified
Amounts”) awarded against or incurred by any of them arising out of or relating to the Transaction Documents or the ownership or funding of the Asset Interest or in respect of any Receivable or any Contract, excluding, however,
(x) Indemnified Amounts to the extent determined by a court of competent jurisdiction to have resulted from gross negligence or willful misconduct on the part of such Indemnified Party or (y) recourse (except as otherwise specifically
provided in this Agreement) for Defaulted Receivables; the Seller further agrees to indemnify any agent (which is not otherwise an Indemnified Party) of any of MUFG, WFB, PNC, the Agents, the Purchasers, the Liquidity Banks, and the Liquidity Agents
forthwith on demand, from and against any and all Indemnified Amounts awarded against or incurred by any of them arising out of or caused by the gross negligence or willful misconduct of the Seller. Without limiting the foregoing, the Seller shall
indemnify each Indemnified Party for Indemnified Amounts arising out of or relating to: 
 (i) the transfer by any Seller
Party of any interest in any Receivable other than the transfer of Receivables and related property by the Originators to the Seller pursuant to the Sale Agreement, the transfer of an Asset Interest to the Investors pursuant to this Agreement and
the grant of a security interest to the Secured Parties pursuant to Section 9.1; 
 (ii) any
representation or warranty made by the Seller in the last sentence of Section 6.1(p) shall have been false, incorrect or misleading in any respect when made or deemed made, or any other representation or warranty made in
writing by any Seller Party (or any of its officers) under or in connection with any Transaction Document, any Information Package, Interim Information Package or any other information or report delivered by or on behalf of any Seller Party pursuant
hereto, which shall have been false, incorrect or misleading in any material respect when made or deemed made or delivered, as the case may be; provided, however, that in the case of any representation, warranty or information that was
not made or delivered in writing, indemnification shall be available to an Indemnified Party hereunder only if such representation, warranty or information was reasonably relied upon by such Indemnified Party; 

(iii) the failure by any Seller Party to comply with any applicable law, rule or regulation with respect to any Pool Receivable
or the related Contract, or the nonconformity of any Pool Receivable or the related Contract with any such applicable law, rule or regulation or the failure of the Seller to perform its duties or obligations in accordance with the provisions hereof
or to perform its duties or obligations under the Contracts; 
 (iv) the failure to vest and maintain vested in (A) the
Investors an undivided percentage ownership interest, to the extent of the Asset Interest, in the Receivables in, or purporting to be in, the Receivables Pool, or (B) the Secured Parties a security interest in the Collateral, in each case free
and clear of any Lien, other than a Lien arising solely as a result of an act of any Investor or the Administrative Agent, whether existing at the time of any Purchase or Reinvestment of such Asset Interest or at any time thereafter; 

  
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 (v) the failure to file, or any delay in filing, financing statements or
other similar instruments or documents under the UCC of any applicable jurisdiction or other applicable laws with respect to any Receivables in, or purporting to be in, the Receivables Pool, whether at the time of any Purchase or Reinvestment or at
any time thereafter; 
 (vi) any dispute, claim, offset or defense (other than discharge in bankruptcy) of the Obligor to the
payment of any Receivable in, or purporting to be in, the Receivables Pool (including, without limitation, a defense based on such Receivables or the related Contract not being a legal, valid and binding obligation of such Obligor enforceable
against it in accordance with its terms), or any other claim resulting from the sale of the merchandise or services related to such Receivable or the furnishing or failure to furnish such merchandise or services; 

(vii) any matter described in clause (i) or (ii) of
Section 3.2(a); 
 (viii) any failure of any Seller Party, as the Master Servicer or otherwise, to
perform its duties or obligations in accordance with the provisions of Article III or Article VIII; 

(ix) any product liability claim arising out of or in connection with merchandise or services that are the subject of any Pool
Receivable; 
 (x) any claim of breach by any Seller Party of any related Contract with respect to any Pool Receivable; 

(xi) any Tax or Other Taxes, all interest and penalties thereon or with respect thereto, and all
out-of-pocket costs and expenses, including the reasonable fees and expenses of counsel in defending against the same, which may arise by reason of the purchase or
ownership of any Asset Interest, or any other interest in the Pool Receivables or in any goods which secure any such Pool Receivables; or 

(xii) the commingling of Collections of Pool Receivables at any time with other funds. 

(b) Contest of Tax Claim; After-Tax Basis. If any Indemnified Party shall have written notice
of any attempt to impose or collect any Tax or Other Taxes for which indemnification will be sought from Seller under Section 13.1(a)(xi), such Indemnified Party shall give prompt and timely notice of such attempt to the
Seller. Indemnification hereunder shall be in an amount necessary to make the Indemnified Party whole after taking into account any tax consequences to the Indemnified Party of the payment of any of the aforesaid taxes (including any deduction) and
the receipt of the indemnity provided hereunder or of any refund of any such tax previously indemnified hereunder, including the effect of such tax, deduction or refund on the amount of tax measured by net income or profit which is or was payable by
the Indemnified Party. 

  
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 (c) Contribution. If for any reason the indemnification provided above in this
Section 13.1 (and subject to the exceptions set forth therein) is unavailable to an Indemnified Party or is insufficient to hold an Indemnified Party harmless, then the Seller shall contribute to the amount paid or payable
by such Indemnified Party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect not only the relative benefits received by such Indemnified Party on the one hand and the Seller on the other hand but
also the relative fault of such Indemnified Party as well as any other relevant equitable considerations. 
 Section 13.2
Indemnities by Master Servicer. 
 Without limiting any other rights which any Indemnified Party may have hereunder or under
applicable law, the Master Servicer hereby agrees to indemnify each of the Indemnified Parties forthwith on demand, from and against any and all Indemnified Amounts awarded against or incurred by any of them arising out of or relating to
(i) the Master Servicer’s performance of, or failure to perform, any of its obligations under or in connection with any Transaction Document, or (ii) any representation or warranty made by the Master Servicer in the last sentence of
Section 6.1(p) shall have been false, incorrect or misleading in any respect when made or deemed made, or (iii) any other representation or warranty made by the Master Servicer (or any of its officers) under or in
connection with any Transaction Document, any Information Package, Interim Information Package or any other information or report delivered by or on behalf of the Master Servicer, which shall have been false, incorrect or misleading in any material
respect when made or deemed made or delivered, as the case may be, or (iv) the failure of the Master Servicer to comply with any applicable law, rule or regulation with respect to any Pool Receivable or the related Contract, or (v) the
commingling of Collections of Pool Receivables at any time with other funds, or (vi) any claim brought by any Person (other than an Indemnified Party) arising from any activity by the Master Servicer or its subservicers in servicing,
administering or collecting any Pool Receivable; provided, however, that in the case of any representation, warranty or information that was not made or delivered in writing, indemnification shall be available to an Indemnified Party
hereunder only if such representation, warranty or information was reasonably relied upon by such Indemnified Party. Notwithstanding the foregoing, in no event shall any Indemnified Party be awarded any Indemnified Amounts (a) to the extent
determined by a court of competent jurisdiction to have resulted from gross negligence or willful misconduct on the part of such Indemnified Party or (b) recourse for Defaulted Receivables. The Master Servicer further agrees to indemnify any
agent (which is not otherwise an Indemnified Party) of any of MUFG, WFB, PNC, the Agents, the Purchasers, the Liquidity Banks, and the Liquidity Agents forthwith on demand, from and against any and all Indemnified Amounts awarded against or incurred
by any of them arising out of or caused by the gross negligence or willful misconduct of the Master Servicer. 
 If for any reason the
indemnification provided above in this Section 13.2 (and subject to the exceptions set forth therein) is unavailable to an Indemnified Party or is insufficient to hold an Indemnified Party harmless, then the Master Servicer
shall contribute to the amount paid or payable by such Indemnified Party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect not only the relative benefits received by such Indemnified Party on the
one hand and the Master Servicer on the other hand but also the relative fault of such Indemnified Party as well as any other relevant equitable considerations. 

  
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 Article XIV. 

Miscellaneous 

Section 14.1 Amendments, Etc. 

No amendment or waiver of any provision of this Agreement nor consent to any departure by any Seller Party therefrom shall in any event be
effective unless the same shall be in writing and signed by (a) each Seller Party, the Agents and the Investors party hereto (with respect to an amendment), or (b) the Agents and the Investors party hereto (with respect to a waiver or
consent by them) or any Seller Party (with respect to a waiver or consent by it), as the case may be, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. The parties
acknowledge that, before entering into such an amendment or granting such a waiver or consent, any Purchaser may also be required to obtain the approval of some or all of the Liquidity Banks in such Purchaser’s Purchaser Group or to obtain
confirmation from certain rating agencies that such amendment, waiver or consent will not result in a withdrawal or reduction of the ratings of the Commercial Paper Notes (to the extent that any Purchaser is required to obtain any confirmation from
any rating agency, such confirmation shall be in writing with respect to any material amendment, modification, waiver or consent). 

Section 14.2 Notices, Etc. 

All notices and other communications provided for hereunder shall, unless otherwise stated herein, be in writing (including facsimile
communication) and shall be personally delivered or sent by express mail or courier or by certified mail, postage prepaid, or by facsimile or e-mail, to the intended party at the address or facsimile number of
such party set forth on Schedule 14.2 or at such other address or facsimile number as shall be designated by such party in a written notice to the other parties hereto. All such notices and communications shall be
effective, (a) if personally delivered or sent by express mail or courier or if sent by certified mail, when received, and (b) if transmitted by facsimile or e-mail, when sent, receipt confirmed by
telephone or electronic means; provided, however, that the financial statements required to be delivered by Sections 7.2(a), 7.2(b) and 7.2(d) shall be deemed delivered on the date such financial
statements are deposited in the United States mail with first class postage prepaid, addressed to the intended party at the address as set forth on Schedule 14.2 or at such other address as shall be designated by such party
in a written notice to the other parties hereto. 
 Section 14.3 No Waiver; Remedies. 

No failure on the part of the Administrative Agent, any Affected Party, any Indemnified Party, any Purchaser or any other holder of the Asset
Interest (or any portion thereof) to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the
exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. Without limiting the foregoing, MUFG, individually and as an Agent, WFB, individually and as an Agent, PNC, individually and
as an Agent, and the Liquidity Banks are each hereby authorized by Seller and Lennox (as Master Servicer and as an 

  
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Originator) at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any
time held and other indebtedness at any time owing by MUFG, WFB, PNC or such Liquidity Bank to or for the credit or the account of the Seller or Lennox against any and all of the obligations of the Seller or Lennox, now or hereafter existing under
this Agreement or any other Transaction Document, to any Agent, any Affected Party, any Indemnified Party or any Investor, or their respective successors and assigns. For avoidance of doubt, the right of setoff set forth in this
Section 14.3 does not permit setoff of deposits and indebtedness held or owing by one Person to or for the account of a second Person against amounts owing by any Person other than such second Person. 

Section 14.4 Binding Effect; Survival. 

This Agreement shall be binding upon and inure to the benefit of each Seller Party, the Agents, the Investors and their respective successors
and assigns, and the provisions of Section 4.2 and Article XIII shall inure to the benefit of the Affected Parties and the Indemnified Parties, respectively, and their respective successors and
assigns; provided, however, nothing in the foregoing shall be deemed to authorize any assignment not permitted by Section 12.1. This Agreement shall create and constitute the continuing obligations of the
parties hereto in accordance with its terms, and shall remain in full force and effect until the Final Payout Date. The rights and remedies with respect to any breach of any representation and warranty made by the Seller pursuant to
Article VI and the indemnification and payment provisions of Article XIII and Sections 4.2, 14.5, 14.6, 14.7 14.11, 14.12 and
14.14 shall be continuing and shall survive any termination of this Agreement. 
 Section 14.5 Costs, Expenses and
Taxes. 
 In addition to its obligations under Article XIII, the Seller Parties jointly and severally
agree to pay on demand: 
 (a) all costs and expenses incurred by the Agents, any Liquidity Bank, any Investor and their respective
Affiliates in connection with: 
 (i) the negotiation, preparation, execution and delivery of this Agreement, the other
Transaction Documents or a Liquidity Agreement, any amendment of or consent or waiver under any of the Transaction Documents which is requested or proposed by any Seller Party (whether or not consummated), or the enforcement by any of the foregoing
Persons of, or any actual or claimed breach of, this Agreement or any of the other Transaction Documents, including, without limitation, the reasonable fees and expenses of counsel to any of such Persons incurred in connection with any of the
foregoing or in advising such Persons as to their respective rights and remedies under any of the Transaction Documents in connection with any of the foregoing, and 

(ii) the administration (including periodic auditing as provided for herein) of this Agreement and the other Transaction
Documents, including, without limitation, all reasonable out-of-pocket expenses (including reasonable fees and expenses of independent accountants), incurred in
connection with any review of any Seller Party’s books and records either prior to the execution and delivery hereof or pursuant to Section 7.1(c), subject to the limitations set forth in such
Section 7.1(c); 

  
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 (b) all stamp and other taxes and fees payable or determined to be payable in connection
with the execution, delivery, filing and recording of this Agreement or the other Transaction Documents (and the Seller Parties, jointly and severally agree to indemnify each Indemnified Party against any liabilities with respect to or resulting
from any delay in paying or omission to pay such taxes and fees) (“Other Taxes”); and 
 (c) all losses, costs and
expenses incurred by the Investors or the Agents in connection with or as a result of any failure to make a timely payment or deposit, including, without limitation, by reason of any mechanical delay in or malfunction of the Fedwire system or due to
an error on the part of the initiating or receiving bank. 
 Section 14.6 No Proceedings. 

The Master Servicer hereby agrees that it will not institute against the Seller, or join any Person in instituting against the Seller, and
each Seller Party, the Master Servicer, MUFG (individually, as Administrative Agent and as MUFG Purchaser Agent), WFB (individually and as WFB Purchaser Agent), PNC (individually and as PNC Purchaser Agent), each Liquidity Bank and each Purchaser,
as to each other Purchaser, hereby agrees that it will not institute against any Purchaser, or join any other Person in instituting against any Purchaser, any insolvency proceeding (namely, any proceeding of the type referred to in the definition of
Event of Bankruptcy) so long as any Commercial Paper Notes issued by such Purchaser shall be outstanding or there shall not have elapsed one year plus one day since the last day on which any such Commercial Paper Notes shall have been outstanding.

 Section 14.7 Confidentiality of Seller Information. 

(a) Confidential Seller Information. Each party hereto (other than Seller Parties) acknowledges that certain of the information
provided to such party by or on behalf of the Seller Parties in connection with this Agreement and the transactions contemplated hereby is or may be confidential, and each such party severally agrees that, unless the Master Servicer shall otherwise
agree in writing, and except as provided in subsection (b), such party will not disclose to any other person or entity: 

(i) any information regarding, or copies of, any nonpublic financial statements, reports, schedules and other information
furnished by any Seller Party to any Investor or any Agent (A) prior to the date hereof in connection with such party’s due diligence relating to the Seller Parties and the transactions contemplated hereby, or (B) pursuant to this
Agreement, including without limitation, Section 3.1, 5.1, 6.1(i), 7.1(c) or 7.2, or 

(ii) any other information regarding any Seller Party which is designated by any Seller Party to such party in writing as
confidential 

  
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 (the information referred to in clauses (i) and (ii) above, whether
furnished by any Seller Party or any attorney for or other representative thereof (each a “Seller Information Provider”), is collectively referred to as the “Seller Information”); provided,
however, Seller Information shall not include any information which is or becomes generally available to the general public or to such party on a nonconfidential basis from a source other than any Seller Information Provider, or which was
known to such party on a nonconfidential basis prior to its disclosure by any Seller Information Provider. 
 (b) Disclosure.
Notwithstanding subsection (a), each party may disclose any Seller Information: 
 (i) to any of
such party’s independent attorneys, consultants and auditors, and to any dealer or placement agent for such Purchaser’s Commercial Paper Notes, who (A) in the good faith belief of such party, have a need to know such Seller
Information, and (B) are informed by such party of the confidential nature of the Seller Information and the terms of this Section 14.7 and has agreed, verbally or otherwise, to be bound by the provisions of this
Section 14.7, 
 (ii) to any Liquidity Bank, any actual or potential assignees of, or participants
in, any rights or obligations of any Purchaser, any Liquidity Bank or the Purchaser Agent of such Purchaser’s or Liquidity Bank’s Purchaser Group under or in connection with this Agreement who has agreed to be bound by the provisions of
this Section 14.7, 
 (iii) to any rating agency, 

(iv) to any other party to this Agreement (and any independent attorneys, consultants and auditors of such party), for the
purposes contemplated hereby, 
 (v) as may be required by any municipal, state, federal or other regulatory body having or
claiming to have jurisdiction over such party, in order to comply with any law, order, regulation, regulatory request or ruling applicable to such party, 

(vi) subject to subsection (c), in the event such party is legally compelled (by interrogatories,
requests for information or copies, subpoena, civil investigative demand or similar process) to disclose such Seller Information, or 

(vii) in connection with the enforcement of this Agreement or any other Transaction Document. 

In addition, each Purchaser and each Agent may disclose on a “no name” basis to any actual or potential investor in or credit enhancer for such
Purchaser’s Commercial Paper Notes information regarding the nature of this Agreement, the basic terms hereof (including without limitation the amount and nature of such Purchaser’s commitment and Invested Amount with respect to the Asset
Interest funded by such Purchaser Group and any other credit enhancement provided by any Seller Party hereunder), the nature, amount and status of the Pool Receivables, and the current and/or historical ratios of losses to liquidations and/or
outstandings with respect to the Receivables Pool. 

  
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 (c) Legal Compulsion. In the event that any party hereto (other than any Seller
Party) or any of its representatives is requested or becomes legally compelled (by interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process) to disclose any of the Seller Information, such party
will (or will cause its representative to): 
 (i) provide the Master Servicer with prompt written notice so that
(A) the Master Servicer may seek a protective order or other appropriate remedy, or (B) the Master Servicer may, if it so chooses, agree that such party (or its representatives) may disclose such Seller Information pursuant to such request
or legal compulsion; and 
 (ii) unless the Master Servicer agrees that such Seller Information may be disclosed, make a
timely objection to the request or compulsion to provide such Seller Information on the basis that such Seller Information is confidential and subject to the agreements contained in this Section 14.7. 

In the event such protective order or remedy is not obtained, or the Master Servicer agrees that such Seller Information may be disclosed, such party will
furnish only that portion of the Seller Information which (in such party’s good faith judgment) is legally required to be furnished and will exercise reasonable efforts to obtain reliable assurance that confidential treatment will be afforded
the Seller Information. 
 (d) Notwithstanding anything herein to the contrary, any party to this Agreement (and any employee,
representative, or other agent of any party to this Agreement) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the transactions contemplated by this Agreement and all materials of any kind
(including opinions and other tax analyses) that are provided to it relating to such tax treatment and tax structure. However, any such information relating to the tax treatment or tax structure is required to be kept confidential to the extent
necessary to comply with any applicable federal or state securities laws. 
 (e) This Section 14.7 shall survive
termination of this Agreement. 
 Section 14.8 Captions and Cross References. 

The various captions (including, without limitation, the table of contents) in this Agreement are provided solely for convenience of reference
and shall not affect the meaning or interpretation of any provision of this Agreement. Unless otherwise indicated, references in this Agreement to any Section, Appendix, Schedule or Exhibit are to such Section of or Appendix, Schedule or Exhibit to
this Agreement, as the case may be, and references in any Section, subsection, or clause to any subsection, clause or subclause are to such subsection, clause or subclause of such Section, subsection or clause. 

Section 14.9 Integration. 

This Agreement and the other Transaction Documents contain a final and complete integration of all prior expressions by the parties hereto
with respect to the subject matter hereof and shall constitute the entire understanding among the parties hereto with respect to the subject matter hereof, superseding all prior oral or written understandings. 

  
 72 

 Section 14.10 Governing Law. 

THIS AGREEMENT, INCLUDING THE RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL
LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF LAW (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW). 

Section 14.11 Waiver Of Jury Trial. 

EACH PARTY HERETO HEREBY EXPRESSLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS
AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR UNDER ANY AMENDMENT, INSTRUMENT OR DOCUMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR ARISING FROM ANY BANKING OR OTHER RELATIONSHIP EXISTING IN CONNECTION WITH THIS
AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL NOT BE TRIED BEFORE A JURY. 

Section 14.12 Consent To Jurisdiction; Waiver Of Immunities. 

EACH PARTY HERETO HEREBY ACKNOWLEDGES AND AGREES THAT: 

(a) IT IRREVOCABLY (i) SUBMITS TO THE JURISDICTION, FIRST, OF ANY UNITED STATES FEDERAL COURT, AND SECOND, IF FEDERAL JURISDICTION IS NOT
AVAILABLE, OF ANY NEW YORK STATE COURT, AS APPROPRIATE, IN EITHER CASE SITTING IN NEW YORK COUNTY, NEW YORK, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, (ii) AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED ONLY IN SUCH NEW YORK STATE OR FEDERAL COURT AND NOT IN ANY OTHER COURT, AND (iii) WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH
ACTION OR PROCEEDING. 
 (b) TO THE EXTENT THAT IT HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM THE JURISDICTION OF ANY COURT OR FROM ANY
LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID TO EXECUTION, EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, IT HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS
UNDER OR IN CONNECTION WITH THIS AGREEMENT. 
 Section 14.13 Execution in Counterparts. 

This Agreement may be executed in any number of counterparts and by the different parties hereto in separate counterparts, each of which when
so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same Agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or by electronic mail in portable
document format (.pdf) shall be as effective as delivery of a manually executed counterpart of a signature page of this Agreement. 

  
 73 

 Section 14.14 No Recourse Against Other Parties. 

The obligations of each Purchaser under this Agreement are solely the corporate obligations of such Purchaser. No recourse shall be had for
the payment of any amount owing by any Purchaser under this Agreement or for the payment by such Purchaser of any fee in respect hereof or any other obligation or claim of or against such Purchaser arising out of or based upon this Agreement,
against MUFG or against any employee, officer, director, incorporator or stockholder of such Purchaser. For purposes of this Section 14.14, the term “MUFG” shall mean and include MUFG Bank, Ltd. (formerly known as
The Bank of Tokyo-Mitsubishi UFJ, Ltd.), and all affiliates thereof and any employee, officer, director, incorporator, stockholder or beneficial owner of any of them; provided, however, for the purposes of this paragraph, no Purchaser
shall be considered to be an affiliate of its respective Purchaser Agent. Each of the Seller, the Master Servicer and the Agents agree that each Purchaser shall be liable for any claims that such party may have against such Purchaser only to the
extent such Purchaser has excess funds and to the extent such assets are insufficient to satisfy the obligations of such Purchaser hereunder, such Purchaser shall have no liability with respect to any amount of such obligations remaining unpaid and
such unpaid amount shall not constitute a claim against such Purchaser. Any and all claims against any Purchaser or any Purchaser Agent shall be subordinate to the claims of the holders of Commercial Paper Notes and the related Liquidity Banks. 

Section 14.15 Severability of Provisions. 

Any provision of this Agreement which 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 or affecting the validity or enforceability of such provisions in any other jurisdiction. 

Section 14.16 Amendment and Restatement. 

This Agreement constitutes an amendment and restatement in its entirety of the Prior RPA. Each party hereto acknowledges that the amendment
and restatement of the Prior RPA on the terms and conditions set forth herein shall not in any way affect any sales, transfers, assignments or security interest grants effected pursuant to the Prior RPA or any representations, warranties or
covenants made by any Seller Party with respect to such sales, transfers, assignments or security interest grants, any indemnities made by any Seller Party, or any rights or remedies of the Administrative Agent or the Investors with respect thereto.
Each Seller Party hereby confirms all sales, transfers, assignments and security interests effected pursuant to the Prior RPA. 

  
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 Section 14.17 Erroneous Payment. 

(a) If the Administrative Agent (x) notifies a Purchaser, Purchaser Agent or Liquidity Bank, or any Person who has received funds on
behalf of a Purchaser, Purchaser Agent or Liquidity Bank (any such Purchaser, Purchaser Agent or Liquidity Bank or other recipient (and each of their respective successors and assigns), a “Payment Recipient”) that the Administrative Agent
has determined in its sole discretion (whether or not after receipt of any notice under immediately succeeding clause (b)) that any funds (as set forth in such notice from the Administrative Agent) received by such Payment Recipient from the
Administrative Agent or any of its Affiliates were erroneously or mistakenly transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Purchaser, Purchaser Agent, Liquidity Bank or other
Payment Recipient on its behalf) (any such funds, whether transferred or received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an “Erroneous Payment”) and
(y) demands in writing the return of such Erroneous Payment (or a portion thereof) , such Erroneous Payment shall at all times remain the property of the Administrative Agent pending its return or repayment as contemplated below in this
Section 14.17 and held in trust for the benefit of the Administrative Agent, and such Purchaser, Purchaser Agent or Liquidity Bank shall (or, with respect to any Payment Recipient who received such funds on its behalf,
shall cause such Payment Recipient to) promptly, but in no event later than two (2) Business Days thereafter (or such later date as the Administrative Agent may, in its sole discretion, specify in writing), return to the Administrative Agent
the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon in respect of each day from and including the date such Erroneous
Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the Administrative Agent in same day funds at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation from time to time in effect. A notice of the Administrative Agent to any Payment Recipient under this clause (a) shall be conclusive, absent manifest error. 

(b) Without limiting immediately preceding clause (a), each Purchaser, Purchaser Agent, Liquidity Bank or any Person who has received funds on
behalf of a Purchaser, Purchaser Agent or Liquidity Bank (and each of their respective successors and assigns), agrees that if it receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of principal,
interest, fees, distribution or otherwise) from the Administrative Agent (or any of its Affiliates) (x) that is in a different amount than, or on a different date from, that specified in this Agreement or in a notice of payment, prepayment or
repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative
Agent (or any of its Affiliates), or (z) that such Purchaser, Purchaser Agent or Liquidity Bank, or other such recipient, otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part), then in each such
case: 
 (i) it acknowledges and agrees that (A) in the case of immediately preceding clauses (x) or (y), an error and mistake
shall be presumed to have been made (absent written confirmation from the Administrative Agent to the contrary) or (B) an error and mistake has been made (in the case of immediately preceding clause (z)), in each case, with respect to such
payment, prepayment or repayment; and 
 (ii) such Purchaser, Purchaser Agent or Liquidity Bank shall (and shall cause any other recipient
that receives funds on its respective behalf to) promptly (and, in all events, within one (1) Business Day of its knowledge of the occurrence of any of the circumstances described in immediately preceding clauses (x), (y) and (z)) notify the
Administrative Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this Section 14.17(b). 

  
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 For the avoidance of doubt, the failure to deliver a notice to the Administrative Agent
pursuant to this Section 14.17(b) shall not have any effect on a Payment Recipient’s obligations pursuant to Section 14.17(a) or on whether or not an Erroneous Payment has been made. 

(c) Each Purchaser, Purchaser Agent or Liquidity Bank hereby authorizes the Administrative Agent to set off, net and apply any and all amounts
at any time owing to such Purchaser, Purchaser Agent or Liquidity Bank under any Transaction Document, or otherwise payable or distributable by the Administrative Agent to such Purchaser, Purchaser Agent or Liquidity Bank under any Transaction
Document with respect to any payment of principal, interest, fees or other amounts, against any amount that the Administrative Agent has demanded to be returned under immediately preceding clause (a). 

(d) (i) In the event that an Erroneous Payment (or portion thereof) is not recovered by the Administrative Agent for any reason, after demand
therefor in accordance with immediately preceding clause (a), from any Purchaser, Purchaser Agent or Liquidity Bank that has received such Erroneous Payment (or portion thereof) (and/or from any Payment Recipient who received such Erroneous Payment
(or portion thereof) on its respective behalf) (such unrecovered amount, an “Erroneous Payment Return Deficiency”), upon the Administrative Agent’s notice to such Purchaser, Purchaser Agent or Liquidity Bank at any time, then
effective immediately (with the consideration therefor being acknowledged by the parties hereto), (A) the Purchaser or Liquidity Bank, as applicable, shall be deemed to have assigned its Purchases and related Asset Interests (but not any amount
available under its respective Purchaser Group Limit) with respect to which such Erroneous Payment was made in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may specify) (such
assignment of the Purchases and the related Asset Interests (but not any amount available under its respective Purchaser Group Limit), the “Erroneous Payment Deficiency Assignment”) (on a cashless basis and such amount calculated at par
plus any accrued and unpaid interest (with the assignment fee to be waived by the Administrative Agent in such instance)), and is hereby (together with the Seller) deemed to execute and deliver an Assignment and Acceptance Agreement with respect to
such Erroneous Payment Deficiency Assignment, (B) the Administrative Agent as the assignee shall be deemed to have acquired the Erroneous Payment Deficiency Assignment, (C) upon such deemed acquisition, the Administrative Agent as the
assignee shall become an Investor hereunder with respect to such Erroneous Payment Deficiency Assignment and the assigning Purchaser or Liquidity Bank, as applicable, shall cease to be a Purchaser or Liquidity Bank, as applicable, hereunder with
respect to such Erroneous Payment Deficiency Assignment, excluding, for the avoidance of doubt, its obligations under the indemnification provisions of this Agreement and the amount available for Purchase hereunder, which shall survive as to such
assigning Purchaser or Liquidity Bank, as applicable, (D) the Administrative Agent and the Seller shall each be deemed to have waived any consents required under this Agreement to any such Erroneous Payment Deficiency Assignment, and
(E) the Administrative Agent will reflect in the register its ownership interest in the Purchases and the related Asset Interests subject to the Erroneous Payment Deficiency Assignment. For the avoidance of doubt, no Erroneous Payment
Deficiency Assignment will reduce the amount available for Purchase hereunder and such amounts shall remain available in accordance with the terms of this Agreement. 

  
 76 

 (ii) Subject to Article XII (but excluding, in all events, any assignment consent or
approval requirements (whether from the Seller or otherwise)), the Administrative Agent may, in its discretion, sell any Purchases and the related Asset Interests acquired pursuant to an Erroneous Payment Deficiency Assignment and upon receipt of
the proceeds of such sale, the Erroneous Payment Return Deficiency owing by the applicable Investor shall be reduced by the net proceeds of the sale of such Purchases and the related Asset Interests (or portion thereof), and the Administrative Agent
shall retain all other rights, remedies and claims against such Investor (and/or against any recipient that receives funds on its respective behalf). In addition, an Erroneous Payment Return Deficiency owing by the applicable Investor (x) shall
be reduced by the proceeds of prepayments or repayments of principal and interest, or other distribution in respect of principal and interest, received by the Administrative Agent on or with respect to any such Purchases and the related Asset
Interests acquired from such Investor pursuant to an Erroneous Payment Deficiency Assignment (to the extent that any such Purchases and the related Asset Interests are then owned by the Administrative Agent) and (y) may, in the sole discretion
of the Administrative Agent, be reduced by any amount specified by the Administrative Agent in writing to the applicable Investor from time to time. 

(e) The parties hereto agree that (x) irrespective of whether the Administrative Agent may be equitably subrogated, in the event that an
Erroneous Payment (or portion thereof) is not recovered from any Payment Recipient that has received such Erroneous Payment (or portion thereof) for any reason, the Administrative Agent shall be subrogated to all the rights and interests of such
Payment Recipient (and, in the case of any Payment Recipient who has received funds on behalf of a Purchaser, Purchaser Agent or Liquidity Bank, to the rights and interests of such Purchaser, Purchaser Agent or Liquidity Bank, as the case may be)
under the Transaction Documents with respect to such amount (the “Erroneous Payment Subrogation Rights”) (provided that the Seller’s obligations under the Transaction Documents in respect of the Erroneous Payment Subrogation Rights
shall not be duplicative of such Seller obligations in respect of Purchases and the related Asset Interests that have been assigned to the Administrative Agent under an Erroneous Payment Deficiency Assignment) and (y) an Erroneous Payment shall
not pay, prepay, repay, discharge or otherwise satisfy any Seller obligations owed by the Seller; provided that this Section 14.17 shall not be interpreted to increase (or accelerate the due date for), or have the effect of
increasing (or accelerating the due date for), the Seller obligations relative to the amount (and/or timing for payment) of the Seller obligations that would have been payable had such Erroneous Payment not been made by the Administrative Agent;
provided, further, that for the avoidance of doubt, immediately preceding clauses (x) and (y) shall not apply to the extent any such Erroneous Payment is, and solely with respect to the amount of such Erroneous Payment that is, comprised of
funds received by the Administrative Agent from the Seller for the purpose of making such Erroneous Payment. 
 (f) To the extent permitted
by applicable law, no Payment Recipient shall assert any right or claim to an Erroneous Payment, and hereby waives, and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment
with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payment received, including, without limitation, any defense based on “discharge for value” or any similar doctrine. 

  
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 (g) Each party’s obligations, agreements and waivers under this
Section 14.17 shall survive the resignation or replacement of the Administrative Agent, any transfer of rights or obligations by, or the replacement of, a Purchaser, Purchaser Agent or Liquidity Bank, the termination of the
commitments and/or the repayment, satisfaction or discharge of all Seller obligations (or any portion thereof) under any Transaction Document. 

[remainder of page intentionally left blank] 

  
 78 

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

			
	 LPAC CORP.,

as Seller

		
	 By:
	 	 
	 Name:
	 	
	 Title:
	 	

  

			
	 LENNOX INDUSTRIES INC.,

as Master Servicer

		
	 By:
	 	 
	 Name:
	 	
	Title:	 	

  
 [AMENDED AND RESTATED
RECEIVABLES PURCHASE AGREEMENT] 

 
			
	 VICTORY RECEIVABLES CORPORATION,

as a Purchaser

		
	 By:
	 	 
	Name:	 	 
	Title:	 	 

  

			
	 MUFG BANK, LTD.,
 as Administrative
Agent and MUFG Purchaser Agent

		
	 By:
	 	 
	Name:	 	 
	Title:	 	 

  

			
	 MUFG BANK, LTD.,

as a Liquidity Bank

		
	 By:
	 	 
	Name:	 	 
	Title:	 	 

  

			
	 Percentage: The fraction equal to 170,000,000/

	 400,000,000 (expressed as a percentage)

  
 [AMENDED AND RESTATED
RECEIVABLES PURCHASE AGREEMENT] 

 
			
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,

as WFB Purchaser Agent and as a Liquidity Bank

		
	 By:
	 	 
	 Name:
	 	
	 Title:
	 	

  

	
	Percentage: The fraction equal to 115,000,000/
	 400,000,000 (expressed as a percentage)

  
 [AMENDED AND RESTATED
RECEIVABLES PURCHASE AGREEMENT] 

 
			
	 PNC BANK, NATIONAL ASSOCIATION,

as PNC Purchaser Agent and as a Liquidity Bank

		
	 By:
	 	 
	 Name:
	 	
	 Title:
	 	

  

	
	Percentage: The fraction equal to 115,000,000/
	400,000,000 (expressed as a percentage)

  
 [AMENDED AND RESTATED
RECEIVABLES PURCHASE AGREEMENT] 

 APPENDIX A 

DEFINITIONS 
 This is Appendix
A to the Amended and Restated Receivables Purchase Agreement dated as of November 18, 2011, among LPAC Corp., as the Seller, Lennox Industries, Inc., as the Master Servicer, Victory Receivables Corporation, as a Purchaser, MUFG, as the
Administrative Agent, the MUFG Purchaser Agent and a Liquidity Bank, WFB, as the WFB Purchaser Agent and a Liquidity Bank, and PNC, as the PNC Purchaser Agent and a Liquidity Bank (as amended, supplemented or otherwise modified from time to time,
this “Agreement”). Each reference in this Appendix A to any Section, Appendix or Exhibit refers to such Section of or Appendix or Exhibit to this Agreement. 

(A) Defined Terms. As used in this Agreement, unless the context requires a different meaning, the following terms have the meanings
indicated below: 
 A&R Sale Agreement: As defined in the Background. 

Adjusted Dilution Ratio: The 12-month rolling average of the Dilution Ratio. 

Administrative Agent: As defined in the preamble. 

Affected Party: Each Purchaser, each Liquidity Bank, any assignee or participant of any Purchaser or any Liquidity Bank, MUFG, any successor to MUFG,
as Administrative Agent or MUFG Purchaser Agent, WFB, any successor to WFB, as WFB Purchaser Agent, PNC, any successor to PNC, as PNC Purchaser Agent, or any sub-agent of any Agent. 

Affiliate: With respect to any Person, any other Person controlling, controlled by, or under common control with, such Person. 

Affiliated Obligor: In relation to any Obligor, an Obligor that is an Affiliate of such Obligor. 

Agent: Any Purchaser Agent or the Administrative Agent. 

Allied: Allied Air Enterprises LLC (f/k/a Allied Air Enterprises Inc.), a Delaware limited liability company. 

Allocation Limit: As defined in Section 1.1. 

Anti-Corruption Laws: All laws, rules, and regulations of any jurisdiction applicable to the Seller Parties, the Originators or their respective
Subsidiaries from time to time concerning or relating to bribery or corruption, including, without limitation, the Foreign Corrupt Practices Act of 1977, as amended, and any applicable law or regulation implementing the OECD Convention on Combating
Bribery of Foreign Public Officials in International Business Transactions. 
 Asset Interest: An undivided percentage ownership interest, determined
from time to time as provided in Section 1.4(b), in (i) all then outstanding Pool Receivables and (ii) all Related Assets. 

  
 A-1 

 Asset Tranche: At any time, a portion of the Asset Interest funded by any Purchaser Group selected by
such Purchaser Group’s Purchaser Agent pursuant to and subject to the terms of Section 2.1. 
 Assignment and Acceptance: An
assignment and acceptance agreement entered into by a Liquidity Bank, an Eligible Assignee, the Purchaser Agent of such Liquidity Bank’s Purchaser Group, and the Administrative Agent, pursuant to which such Eligible Assignee may become a party
to this Agreement, in substantially the form of Exhibit D hereto. 
 Assurance Agreement: The Assurance Agreement dated as of
November 25, 2009 made by Lennox International, as the same may be amended, restated, supplemented or modified from time to time in accordance with its terms. 

Bank Rate: For any day falling in a particular Yield Period with respect to any Asset Tranche means an interest rate per annum equal to
the sum of the MUFG LIBO Rate (Reserved), the WFB LIBO Rate (Reserved) or the PNC LIBO Rate (Reserved), as applicable, for such day or such Yield Period (as applicable) plus the Bank Rate Spread; provided, that in the case of (A) any
Yield Period with respect to which any Purchaser or any Liquidity Bank shall have notified the Purchaser Agent of such Person’s Purchaser Group that (i) the introduction of or any change in or in the interpretation of any law or regulation
makes it unlawful, or any central bank or other Governmental Authority asserts that it is unlawful, for such Person to fund such Asset Tranche at the rate described above, or (ii) due to market conditions affecting the interbank eurodollar
market, funds are not reasonably available to such Person in such market in order to enable it to fund such Asset Tranche at the rate described above (and in the case of subclause (i) or (ii) above, such Person shall not have
subsequently notified such Purchaser Agent that such circumstances no longer exist), or (B) other than with respect to a Yield Period for the WFB Purchaser Group or the PNC Purchaser Group, any Yield Period as to which any Purchaser Agent does
not receive notice or determine, by no later than 12:00 noon (New York, New York time) on the third Business Day preceding the first day of such Yield Period, that the related Asset Tranche will be funded by Liquidity Fundings, and not by the
issuance of Commercial Paper Notes, in either case, the “Bank Rate” shall mean an interest rate per annum equal to the Base Rate in effect from time to time during such Yield Period; it being understood that, in the case of
paragraph (A) above, such rate shall only apply to the Persons affected by the circumstances described in such paragraph (A). 
 Bank Rate
Spread: As defined in the Fee Letter. 
 Base Rate: For any day, the rate per annum equal to the sum of the Bank Rate Spread plus
the higher as of such day of (i) the Prime Rate, or (ii) the Federal Funds Rate most recently determined by Administrative Agent, plus 1.00%; provided that for purposes of calculating the Yield Reserve in accordance with the defined term
thereof “Base Rate” shall be calculated without including the Bank Rate Spread in such calculation. For purposes of determining the Base Rate for any day, changes in the Prime Rate or the Federal Funds Rate shall be effective on the date
of each such change. The Base Rate is not necessarily intended to be the lowest rate of interest determined by MUFG in connection with extensions of credit. 

  
 A-2 

 Broken Funding Costs: Any loss or expense of the type described in
Section 4.3 incurred by any Purchaser. 
 Business Day: A day on which commercial banks in Atlanta, Chicago or New York
City are not authorized or required to be closed for business; provided, that, when used with respect to the Earned Discount Rate or associated Asset Tranche based on MUFG LIBO Rate, WFB LIBO Rate or PNC LIBO Rate, “Business Day”
means any Business Day on which banks are open for domestic and international business (including dealings in Dollar deposits) in London, England. 

Capital Lease: At any time, a lease with respect to which the lessee is required concurrently to recognize the acquisition of an asset and the
incurrence of a liability in accordance with GAAP. 
 Change in Control: 

(i) in relation to Lennox International, the acquisition after the date hereof by any person or group of persons (within the
meaning of Section 13 or 14 of the Exchange Act), of beneficial ownership (within the meaning of Rule 13d-3 promulgated by the Securities and Exchange Commission under the Exchange Act) of issued and
outstanding shares of the capital stock of such Person entitled (without regard to the occurrence of any contingency) to vote for the election of members of the board of directors of such Person and having a then present right to exercise 50% or
more of the voting power for the election of members of the board of directors of such Person attached to all such outstanding shares of capital stock of such Person, unless otherwise agreed in writing by the Agents; and 

(ii) in relation to the Master Servicer, the Seller or any Originator, the failure of Lennox International to own (directly or
through wholly-owned Subsidiaries of Lennox International) 100% of the issued and outstanding shares of the capital stock (including all warrants, options, conversion rights, and other rights to purchase or convert into such stock) of the Master
Servicer, the Seller or such Originator, as applicable, on a fully diluted basis. 
 Code: The Internal Revenue Code of 1986, as the same may be
amended from time to time. 
 Collateral: As defined in Section 9.1. 

Collection Account: The segregated account that may be established and maintained in the name of the Seller with JPMorgan Chase Bank, N.A., or another
commercial bank reasonably approved by the Agents. 
 Collection Period: 

(i) the period from the date of the initial Purchase to the last day of the calendar month in which such date occurs; and 

(ii) thereafter, each period from the last day of the next preceding Collection Period to the last day of the next following
calendar month; 

  
 A-3 

 provided, however, that during any period during which Weekly Reports are required to be
delivered, the Collection Period related to each related Settlement Date shall be the related Weekly Reporting Period; provided, further, however, that the last Collection Period shall end on the Final Payout Date. 

Collections: With respect to any Receivable, (i) all funds which either are received by the Seller, the Originators or the Master Servicer
from or on behalf of the related Obligor in payment of any amounts owed (including, without limitation, purchase prices, finance charges, interest and all other charges) in respect of such Receivable, or applied to such amounts owed by such Obligor
(including, without limitation, cash proceeds of Related Security with respect to such Receivable, including, without limitation, insurance payments that the Seller, the Originator or the Master Servicer applies in the ordinary course of its
business to amounts owed in respect of such Receivable and net proceeds of sale or other disposition of repossessed goods or other collateral or property of the Obligor or any other party directly or indirectly liable for payment of such Receivable
and available to be applied thereon), and (ii) all Deemed Collections; provided that, prior to such time as Lennox shall cease to be the Master Servicer, late payment charges, collection fees, extension fees and any other similar fees or
expenses billed to and collected from an Obligor shall be paid to the Master Servicer as additional compensation for the performance of its duties as Master Servicer hereunder. 

Commercial Paper Notes: The commercial paper promissory notes issued by any Purchaser in the commercial paper market. 

Committed Tranche: With respect to the MUFG Purchaser Group, the amount set forth in the “MUFG Purchaser Group Limit (Committed Tranche)”
column of the definition of MUFG Purchaser Group, (ii) with respect to the WFB Purchaser Group, the amount set forth in the “WFB Purchaser Group Limit (Committed Tranche)” column of the definition of WFB Purchaser Group, and
(iii) with respect to the PNC Purchaser Group, the amount set forth in the “PNC Purchaser Group Limit (Committed Tranche)” column of the definition of PNC Purchaser Group. 

Contract: A contract between the Seller or the Originator and any Person, or an invoice sent or to be sent by the Seller or the Originator, pursuant to
or under which a Receivable shall arise or be created, or which evidences a Receivable. A ‘related Contract’ or similar reference means rights to payment, collection and enforcement, and other rights under a Contract to the extent directly
related to a Receivable in the Receivables Pool, but not any other rights under such Contract. 
 CP Accrual Period: Each Collection Period during
which any Asset Tranche is funded with Commercial Paper Notes. 
 CP Costs: The MUFG CP Costs. 

Credit Agreement: That certain Fourth Amended and Restated Revolving Credit Facility Agreement dated as of October 21, 2011 by and among Lennox
International Inc. as the borrower, certain financial institutions, as the lenders, and JPMorgan Chase Bank, National Association, as administrative agent for the lenders, as such agreement may be further amended, restated, substituted or replaced
from time to time. 

  
 A-4 

 Credit and Collection Policy: Collectively, those credit and collection policies and practices of the
Originators and the Master Servicer relating to Contracts and Receivables as in effect on the date of this Agreement in the form of Exhibit C hereto, as may hereafter be modified without violating Section 7.3(c), but
subject to compliance with applicable state regulations in effect from time to time. 
 Credit Event: The earliest of (i) an Event of Bankruptcy
with respect to Lennox International, (ii) an Event of Bankruptcy with respect to Lennox or (iii) any event described in subsection (d) of Section 10.1 hereof. 

Cut-Off Date: The last day of each fiscal month of the Master Servicer. 

Days Sales Outstanding or DSO: As of any day, an amount equal to the product of (i) 91 and (ii) a fraction the numerator of which is
the aggregate Unpaid Balance of Pool Receivables as of the most recent Cut-Off Date and the denominator of which is the aggregate dollar amount of Receivables generated by the Originators during the three
Collection Periods including and immediately preceding such Cut-Off Date. 
 Deemed Collections: As defined
in Section 3.2(a). 
 Default Horizon Ratio: As of any Cut-Off Date, the ratio
(expressed as a percentage) of (i) the aggregate sales of the Originators during the immediately preceding Default Horizon Test Period (defined below) ending on such Cut-Off Date, divided by (ii) the
Net Pool Balance on such Cut-Off Date. For the purposes of this definition, as of any Cut-Off Date, the “Default Horizon Test Period” shall mean a period equal
to (A) 2.5 calendar months, plus (B) a period equal to the Weighted Average Term as of such Cut-Off Date. 

Default Ratio: At any time, an amount (expressed as a percentage) equal to a fraction (i) the numerator of which is equal to the sum of the Unpaid
Balances of Receivables, during the immediately preceding Collection Period, as to which, without duplication, (A) any payment, or part thereof, remains unpaid for more than 150 days, but less than 181 days, from the original due date for such
payment or (B) any portion of the Unpaid Balance (including amounts related to an Event of Bankruptcy) or other payment due in respect thereof was (or should have been) written off and (ii) the denominator of which is the amount of sales
generated during the Collection Period six months prior to the immediately preceding Collection Period. 
 Defaulted Receivable: A Receivable as to
which, without duplication, (i) any payment, or part thereof, remains unpaid for more than 120 days from the original due date for such payment, (ii) any portion of the Unpaid Balance or other payment due in respect thereof was (or should
have been) written off prior to the 120th day following the original due date for such payment, or (iii) an Event of Bankruptcy shall have occurred with respect to the Obligor thereof or any other Person obligated thereon or owning any Related
Security in respect thereof. 

  
 A-5 

 Delinquency Ratio: At any time, the ratio (expressed as a percentage) computed as of the Cut-Off Date for the most recently preceding Collection Period by dividing (i) the aggregate Unpaid Balance of all Pool Receivables that are Delinquent Receivables on such
Cut-Off Date by (ii) the aggregate Unpaid Balance of Pool Receivables on such Cut-Off Date. 

Delinquent Receivable: A Pool Receivable (i) that is not a Defaulted Receivable and (ii) as to which any payment, or part thereof, remains
unpaid for 61 days or more from the original due date for such payment. 
 Dilution: The amount of any reduction or cancellation of the Unpaid
Balance of a Pool Receivable as described in Section 3.2(a), but excluding any Specified Annual Rebate processed during the applicable Collection Period, if applicable. 

Dilution Horizon: For any day, the weighted average credit memo lag, in days, set forth in the most recent review conducted pursuant to the provisions
of Section 7.1(c). 
 Dilution Horizon Ratio: As of any date, the product (calculated as of the most recent Reporting Date)
of (a) the decimal equivalent of a fraction, the numerator of which is the aggregate dollar amount of all Receivables generated by the Originators during the most recent Collection Period and the denominator of which is the Net Pool Balance as
of the most recent Cut-Off Date and (b) the decimal equivalent of a fraction the numerator of which is the then current Dilution Horizon and the denominator of which is 31. 

Dilution Ratio: As of any Cut-Off Date, the percentage equivalent of a fraction, the numerator of which is the
aggregate dollar amount of Dilutions that occurred during the Collection Period ending on such date and the denominator of which is the aggregate dollar amount of all Receivables originated by the Originators during such Collection Period. 

Dilution Reserve: The product of (i) the sum of (A) the product of (x) 2 and (y) the Adjusted Dilution Ratio plus (B) the
Dilution Volatility Component and (ii) the Dilution Horizon Ratio. 
 Dilution Volatility Component: The product of (i) the positive
excess, if any, of (A) the highest three month rolling average Dilution Ratio over the past 12 months over (B) the Adjusted Dilution Ratio and (ii) a fraction, the numerator of which is the highest three month rolling average Dilution
Ratio over the past 12 months and the denominator of which is the Adjusted Dilution Ratio. 
 Dollars: Means dollars in lawful money of the United
States of America. 
 Downgraded Liquidity Bank: A Liquidity Bank with respect to which a Downgrading Event shall have occurred. 

Downgrading Event: With respect to any Person means the lowering of the rating with regard to the short-term securities of such Person to below (i) A-1 by Standard & Poor’s Ratings Group, or (ii) P-1 by Moody’s. 

  
 A-6 

 Earned Discount: For each day during any Yield Period for any Asset Tranche funded with a Liquidity
Funding by any Purchaser Group: 
 IA x ER x ED + LF 

360 
 where: 

IA = such Purchaser Group’s Purchaser Group Invested Amount in such Asset Tranche on such day during such Yield Period, 

ER = the applicable Earned Discount Rate for such Yield Period, 

ED = the actual number of days elapsed during such Yield Period, and 

LF = the Liquidation Fee, if any, during such Yield Period. 

Earned Discount Rate: For any Yield Period for any Asset Tranche funded by a Liquidity Funding, the Bank Rate for such Asset Tranche and such Yield
Period; 
 provided, however, on any day when any Liquidation Event or an Unmatured Liquidation Event shall have occurred and
be continuing, the Earned Discount Rate for each Asset Tranche shall mean a rate per annum equal to the Base Rate plus 2% per annum. 

Eighth Amendment Date: As defined in the preamble. 

Eligible Assignee: (i) MUFG or any of its Affiliates, (ii) any Person managed by MUFG or any of its Affiliates, (iii) WFB or any of its
Affiliates, (iv) any Person managed by WFB or any of its Affiliates, (v) PNC or any of its Affiliates, (vi) any Person managed by PNC or any of its Affiliates, or (vii) any financial or other institution acceptable to the
Administrative Agent, and approved by the Seller (which approval by the Seller shall not be unreasonably withheld, delayed or conditioned and shall not be required if a Liquidation Event, Unmatured Liquidation Event or Credit Event has occurred and
is continuing). 
 Eligible Receivable: At any time, a Receivable: 

(i) which is a Pool Receivable arising out of the sale by an Originator in the ordinary course of its business that has been
sold or contributed to the Seller pursuant to the Sale Agreement in a “true sale” transaction; 
 (ii) as to which
the perfection of the Investors’ undivided percentage ownership interest therein is governed by the laws of a jurisdiction where the UCC is in force, and which constitutes an “account” as defined in the UCC as in effect in such
jurisdiction; 
 (iii) the Obligor of which is (A) a resident of the United States, or any of its possessions or
territories; provided, however, that a Receivable that is otherwise an “Eligible Receivable” but for this clause (iii)(A) shall be an Eligible Receivable if (a) the

  
 A-7 

 
Obligor of such Receivable is domiciled in Canada, or any of its provinces or territories, and the Unpaid Balance of such Receivable, when added to the Unpaid Balance of all other Receivables as
to which the Obligors are residents of Canada, or any of its provinces or territories, classified at such time as Eligible Receivables pursuant to this clause (a), would not exceed 5% of the aggregate Unpaid Balance of all Eligible Receivables at
such time; and (b) the Unpaid Balance of such Receivable, when added to the Unpaid Balance of all other Receivables as to which the Obligors are not residents of the United States or Canada, or any of its possessions, provinces or territories,
classified at such time as Eligible Receivables pursuant to this clause (b), would not exceed 6% of the aggregate Unpaid Balance of all Eligible Receivables at such time; provided, further, that at no time shall (x) a Receivable
as to which the Obligor is domiciled in a non-OECD member country, and that is otherwise classified at such time as an “Eligible Receivable”, be an Eligible Receivable if the Unpaid Balance of such
Receivable, when added to the Unpaid Balance of all other Receivables as to which the Obligors are domiciled in non-OECD member countries, and that are otherwise classified at such time as Eligible
Receivables, would exceed 3% of the aggregate Unpaid Balance of all Eligible Receivables at such time, and (y) any Receivable the Obligor of which is domiciled in Venezuela be classified as an Eligible Receivable, (B) not an Affiliate or
employee of any Seller Party, and (C) not a Sanctioned Person nor organized or resident in a Sanctioned Country; 
 (iv)
which is neither a Defaulted Receivable nor a Delinquent Receivable; 
 (v) with regard to which the representations and
warranties of the Seller set forth in Section 6.1(l) are true and correct; 
 (vi) the sale of an
undivided interest in which does not contravene or conflict with any law; 
 (vii) which is denominated and payable only in
Dollars in the United States; 
 (viii) which arises under a Contract that has been duly authorized and that, together with
such Receivable, is in full force and effect and constitutes the legal, valid and binding obligation of the Obligor of such Receivable enforceable against such Obligor in accordance with its terms and is not subject to any dispute, offset,
counterclaim or defense whatsoever, provided, however, that if such dispute, offset, counterclaim or defense affects only a portion of the Unpaid Balance of such Receivable then such Receivable may be deemed an Eligible Receivable to
the extent of the portion of such Unpaid Balance which is not so affected; 
 (ix) which, together with the Contract related
thereto, does not contravene in any material respect any laws, rules or regulations applicable thereto (including, without limitation, laws, rules and regulations relating to usury, truth in lending, fair credit billing, fair credit reporting, equal
credit opportunity, fair debt collection practices and privacy) and with respect to which no party to the Contract related thereto is in violation of any such law, rule or regulation in any material respect if such violation would impair the
collectibility of such Receivable; 

  
 A-8 

 (x) which satisfies in all material respects all applicable requirements of
the applicable Originator’s Credit and Collection Policy; 
 (xi) which, according to the Contract related thereto, is
due and payable within 120 days from the invoice date of such Receivable; provided, however, that on any day when the Weighted Average Term shall exceed 60 days, such Receivable, pursuant to the Contract related thereto, shall be due
and payable within 90 days from the invoice date of such Receivable; provided, further that a Receivable that is otherwise an “Eligible Receivable” and is due and payable within 91-120
days from its invoice date shall not be an Eligible Receivable, if the Unpaid Balance of such Receivable when added to the Unpaid Balance of all other Receivables that are due and payable within 91-120 days
from their respective invoice dates, would exceed 5% of the aggregate Unpaid Balance of all Receivables; 
 (xii) the Obligor
of which is not the Obligor of any Defaulted Receivable which in the aggregate constitute 35% or more of the aggregate Unpaid Balance of all Receivables of such Obligor; 

(xiii) the original term of which has not been extended and the Unpaid Balance of which has not been adjusted more than one
time; 
 (xiv) the Obligor of which is not a Governmental Authority as to which the assignment of receivables owing therefrom
requires compliance with the Federal Assignment of Claims Act or other similar legislation (unless the Seller has complied therewith); provided, however, that a Receivable that is otherwise an “Eligible Receivable” but for
this clause (xiv) shall be an Eligible Receivable if the Unpaid Balance of such Receivable, when added to the Unpaid Balance of all other Receivables as to which the Obligors of which are Government Authorities as to which the assignment
of receivables owing therefrom requires compliance with the Federal Assignment of Claims Act or other similar legislation, classified at such time as Eligible Receivables pursuant to this proviso, would not exceed 5% of the aggregate Unpaid Balance
of all Eligible Receivables at such time; 
 (xv) which is not classified by the “Terms Description” of the related
Originator’s Credit and Collection Policy or any other internal classification procedures utilized by such Originator as (A) “Authorizer,” (B) “Cash Application,” (C) “Check in Progress,” (D) “COD-Certified Check,” (E) “COD-Company Check,” (F) “Consignment Shipment,” (G) “Direct Pay,” (H) “Due Immediately,” (I)
“Gratis,” (J) “Invoice to be Considered,” (K) “Paid in Advance,” (L) “Payroll Deduction,” (M) “Warrant Gratis,” (N) “Warranty Parts,” or (O) any other classification now existing or
hereinafter created that has the same or any similar definition as any of the foregoing; provided, however, that a Receivable that is otherwise an “Eligible Receivable” but for this clause (xv) shall be an
Eligible Receivable if the Unpaid Balance of such Receivable, when added to the Unpaid Balance of all other Receivables then constituting Eligible Receivables as a result of the operation of this proviso, would not exceed 5% of the aggregate Unpaid
Balance of all Eligible Receivables at such time; 

  
 A-9 

 (xvi) as to which the applicable Originator has satisfied and fully
performed all obligations on its part with respect to such Receivable required to be fulfilled by it, and no further action is required to be performed by any Person with respect thereto other than payment thereon by the applicable Obligor; and 

(xvii) as to which any Purchaser Agent has not notified Seller that such Purchaser Agent has determined that such Receivable or
class of Receivables is not acceptable as an Eligible Receivable, including, without limitation, because such Receivable arises under a Contract that is not acceptable to such Purchaser Agent. 

ERISA: The U.S. Employee Retirement Income Security Act of 1974, as amended from time to time. 

ERISA Affiliate: Any trade or business (whether or not incorporated) that is a member of a group of which the Master Servicer or Lennox International
is a member and which is treated as a single employer under Section 414 of the Code. 
 Erroneous Payment: As defined in
Section 14.17(a). 
 Erroneous Payment Deficiency Assignment: As defined in Section 14.17(d)(i).

 Erroneous Payment Return Deficiency: As defined in Section 14.17(d)(i). 

Erroneous Payment Subrogation Rights: As defined in Section 14.17(e). 

Event of Bankruptcy: With respect to a Person if either: 

(i) a case or other proceeding shall be commenced, without the application or consent of such Person, in any court, seeking the
liquidation, reorganization, debt arrangement, dissolution, winding up, or composition or readjustment of debts of such Person, the appointment of a trustee, receiver, custodian, liquidator, assignee, sequestrator or the like for such Person or all
or substantially all of its assets, or any similar action with respect to such Person under any law relating to bankruptcy, insolvency, reorganization, winding up or composition or adjustment of debts, and such case or proceeding shall continue
undismissed, or unstayed and in effect, for a period of 60 consecutive days; or an order for relief in respect of such Person shall be entered in an involuntary case under the federal bankruptcy laws or other similar laws now or hereafter in effect;
or 
 (ii) such Person shall commence a voluntary case or other proceeding under any applicable bankruptcy, insolvency,
reorganization, debt arrangement, dissolution or other similar law now or hereafter in effect, or shall consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar
official) for, such Person or for any substantial part of its property, or shall make any general assignment for the benefit of creditors, or shall be adjudicated insolvent, or admit in writing its inability to, pay its debts generally as they
become due, or, if a corporation or similar entity, its board of directors shall vote to implement any of the foregoing. 

  
 A-10 

 Excess Concentration Amount: As of any date, the sum of the amounts by which the aggregate Unpaid
Balance of Receivables of each Obligor exceeds the Obligor Concentration Limit for such Obligor. 
 Exchange Act: The Securities Exchange Act of
1934, as amended. 
 Federal Funds Rate: For any day, the rate per annum equal to the weighted average of the rates on overnight
federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York;
or (b) if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by MUFG from three federal funds brokers of recognized standing selected by it. 

Federal Reserve Bank of New York’s Website: means the website of the Federal Reserve Bank of New York at http://www.newyorkfed.org, or any
successor source. 
 Federal Reserve Board: The Board of Governors of the Federal Reserve System, or any successor thereto or to the functions
thereof. 
 Fee Letter: The fee letter (including all amendments, modifications, restatements, replacements and addendums thereto) entered into from
time to time by the Seller and the members of each Purchaser Group. 
 Final Payout Date: The date following the Termination Date on which the
Invested Amount shall have been reduced to zero and all other amounts payable by the Seller under the Transaction Documents shall have been paid in full. 

Funding Termination Date: The earliest of the following: 

(i) November 10, 2023, or such later date as may, from time to time, be agreed to in writing by the Agents; 

(ii) the date on which the Agents declare a Funding Termination Date in a notice to the Seller in accordance with
Section 10.2(a); or 
 (iii) in accordance with Section 10.2(b), the
Funding Termination Date occurs automatically. 
 GAAP: Generally accepted accounting principles set forth in the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such accounting profession, which are applicable to
the circumstances as of the date of determination. 

  
 A-11 

 Governmental Authority: Any nation or government, any state or other political subdivision thereof,
any central bank (or similar monetary or regulatory authority) thereof, any body or entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, any court or arbitrator and any accounting
board or authority (whether or not a part of government) which is responsible for the establishment or interpretation of national or international accounting principles, in each case whether foreign or domestic. 

Guaranty: With respect to any Person, any obligation (except the endorsement in the ordinary course of business of negotiable instruments for deposit
or collection) of such Person guaranteeing or in effect guaranteeing any Indebtedness, dividend or other obligation of any other Person in any manner, whether directly or indirectly, including (without limitation) obligations incurred through an
agreement, contingent or otherwise, by such Person: 
 (i) to purchase such Indebtedness or obligation or any property
constituting security therefor; 
 (ii) to advance or supply funds (A) for the purchase or payment of such Indebtedness
or obligation, or (B) to maintain any working capital or other balance sheet condition or any income statement condition of any other Person or otherwise to advance or make available funds for the purchase of payment of such Indebtedness or
obligation; 
 (iii) to lease properties or to purchase properties or services primarily for the purpose of assuring the
owner of such Indebtedness or obligation of the ability of any other Person to make payment of the Indebtedness or obligation; or 

(iv) otherwise to assure the owner of such Indebtedness or obligation against loss in respect of thereof. In any computation of
the Indebtedness or other liabilities of the obligor under any Guaranty, the Indebtedness or other obligations that are the subject of such Guaranty shall be assumed to be direct obligations of such obligor. 

Heatcraft: Heatcraft Technologies Inc., a Delaware corporation. 

Heatcraft Refrigeration: Heatcraft Refrigeration Products LLC, a Delaware limited liability company. 

Indebtedness: With respect to any Person shall mean, at any time, without duplication: 

(i) its liabilities for borrowed money and its redemption obligations in respect of mandatorily redeemable Preferred Stock;

 (ii) its liabilities for the deferred purchase price of property acquired by such Person (excluding accounts payable
arising in the ordinary course of business but including all liabilities created or arising under any conditional sale or other title retention agreement with respect to any such property); 

(iii) all liabilities appearing on its balance sheet in accordance with GAAP in respect of Capital Leases; 

(iv) all liabilities for borrowed money secured by any Lien with respect to any property owned by such Person (whether or not
it has assumed or otherwise become liable for such liabilities); 

  
 A-12 

 (v) all its liabilities in respect of letters of credit or instruments
serving a similar function issued or accepted for its account by banks and other financial institutions (whether or not representing obligations for borrowed money, but excluding in any event obligations in respect of (A) trade or commercial
letters of credit issued for the account of such Person in the ordinary course of its business and (B) stand-by letters of credit issued to support obligations of such Person that are not of a type
described in any of clauses (i), (ii), (iii), (iv), (vi) or (vii) of this definition; 

(vi) Swaps of such Person; and 

(vii) any Guaranty of such Person with respect to liabilities of a type described in any of
clauses (i) through (vi) hereof. 
 Indebtedness of any Person shall include all obligations of such
Person of the character described in clauses (i) through (vii) above to the extent such Person remains legally liable in respect hereof notwithstanding that any such obligation is deemed to be extinguished under
GAAP. 
 Indemnified Amounts: As defined in Section 13.1. 

Indemnified Party: As defined in Section 13.1. 

Independent Director: A Person who is a director of the Seller and who is not at such time, and has not been at any time during the preceding five
(5) years: (i) a creditor, supplier, director, officer, employee, family member, manager, member, limited partner, partner or contractor of Lennox International, the Master Servicer, any Originator or any of their respective Subsidiaries
or Affiliates (other than in such Person’s role as a director of Seller), (ii) a direct or indirect or beneficial owner, excluding de minimus ownership interests, (at the time of such individual’s appointment as an Independent
Director or at any time thereafter while serving as an Independent Director) of any of the outstanding common shares of the Seller, Lennox International, the Master Servicer, any Originator, or any of their respective Subsidiaries or Affiliates,
having general voting rights, or (iii) a person who controls (whether directly, indirectly or otherwise) Lennox International, the Master Servicer, any Originator or any of their respective Subsidiaries or Affiliates (other than in such
Person’s role as a director of Seller) or any creditor, supplier, employee, officer, director, manager, member, limited partner, partner or contractor of Lennox International, the Master Servicer, any Originator or any of their respective
Subsidiaries or Affiliates (other than in such Person’s role as a director of Seller). Such Person shall be employed by a nationally recognized provider of corporate or structured finance services. 

Information Package: A report in the form of Exhibit 3.1(a) and, during any period during which a Weekly Report is required to be delivered,
each such Weekly Report, provided, however, that, if a Liquidation Event has occurred and is continuing, such Information Package shall be accompanied by an electronic file in a form satisfactory to each Purchaser Agent. 

Initial Sale Agreement: As defined in the Background. 

Initial Seller Note: As defined in the Sale Agreement. 

  
 A-13 

 Interim Cut-Off Date: Such date as may be specified by any
Agent in any request to provide an Interim Information Package pursuant to Section 1.4(c). 
 Interim Information Package:
As defined in Section 1.4(c). 
 Interim Reporting Date: As defined in Section 1.4(c). 

Interim Reporting Period: Such period as may be specified by any Agent in any request to provide an Interim Information Package pursuant to
Section 1.4(c). 
 Interim Settlement Date: One Business Day following each Interim Reporting Date. 

Invested Amount: At any time with respect to the Asset Interest an amount equal to (i) the aggregate of the amounts theretofore paid to Seller for
Purchases pursuant to Sections 1.1 and 1.2, less (ii) the aggregate amount of Collections theretofore received and actually distributed to the Investors on account of such Invested Amount pursuant to
Section 1.3. 
 Investors: The Purchasers and the Liquidity Banks. 

Investors’ Share: With respect to any amount, at any time, the lesser of (i) the most recently calculated Asset Interest and (ii) 100%.

 Lennox: As defined in the Preamble. 

Lennox Hearth: Lennox Hearth Products LLC, a Delaware limited liability company. 

Lennox International: Lennox International Inc., a Delaware corporation. 

Lien: With respect to any Person, any mortgage, lien, pledge, charge, security interest, or other encumbrance, or any interest or title of any vendor,
lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement or Capital Lease, upon or with respect to any property or asset of such Person (including in the case of stock, stockholder
agreements, voting trust agreements and all similar arrangements). 
 Liquidation Event: As defined in Section 10.1. 

Liquidation Fee: For each Asset Tranche (or portion thereof) funded through a Liquidity Funding, for each day in any Yield Period (computed without
regard to clause (iii) of the proviso of the definition of “Yield Period”), the amount, if any, by which: 

(i) the additional Earned Discount (calculated without taking into account any Liquidation Fee) which would have accrued on the
reductions of the portion of the Invested Amount of the related Investor allocated to such Asset Tranche during such Yield Period (as so computed) if such reductions had not been made, exceeds 

(ii) the income, if any, received by the related Investor from investing the proceeds of such reductions of such
Investor’s portion of the Invested Amount. 

  
 A-14 

 Liquidation Period: The period commencing on the earlier of (i) the Funding Termination Date and
(ii) the date on which a Liquidation Event has occurred or is continuing and the Administrative Agent, at the direction of any Agent, shall have notified Seller and the Master Servicer in writing, pursuant to
Section 10.2(a), that the Liquidation Period has commenced, and ending on the Final Payout Date; provided, however, upon the occurrence of a Liquidation Event described in
Section 10.1(e), the Liquidation Period shall commence automatically. 
 Liquidity Agent: With respect to the MUFG
Purchaser Group, MUFG, as liquidity agent for the Liquidity Banks under the MUFG Liquidity Agreement, or any successor to MUFG in such capacity. 

Liquidity Agreement: With respect to the MUFG Purchaser Group, the MUFG Liquidity Agreement. 

Liquidity Bank: (i) With respect to the MUFG Purchaser Group, each MUFG Liquidity Bank, (ii) with respect to the WFB Purchaser Group, each
WFB Liquidity Bank, and (iii) with respect to the PNC Purchaser Group, each PNC Liquidity Bank (collectively, the Liquidity Banks). 

Liquidity Funding: Either (i) a purchase made by any Liquidity Bank (or simultaneous purchases made by the Liquidity Banks) from a Purchaser
pursuant to any Liquidity Agreement or (ii) a Purchase made by a Liquidity Bank pursuant to Section 1.1. 
 Lockbox
Account: An account maintained for the purpose of receiving Collections at a bank or other financial institution which has executed a Lockbox Agreement. 

Lockbox Agreement: An agreement, in substantially the form of Exhibit A-1, among the Master Servicer,
the Administrative Agent, the Seller and any Lockbox Bank. 
 Lockbox Bank: Any of the banks holding one or more lockboxes or Lockbox Accounts
receiving Collections from Pool Receivables. 
 Loss Reserve: At any time, means the product of (1) 2.0 and (2) the highest rolling three month
average Default Ratio during the immediately preceding twelve (12) months and (3) the most recently calculated Default Horizon Ratio. 
 Master
Servicer: As defined in the preamble. 
 Material Adverse Effect: With respect to any event or circumstance, a material adverse effect on:

 (i) (A) the assets, operations, business or financial condition of the Seller or (B) the business, assets,
operations or financial condition of Lennox International and its Subsidiaries, taken as a whole, which could reasonably be expected to have a material adverse effect on the creditworthiness of any Originator; 

(ii) the ability of the Seller, the Master Servicer, any Originator or any Affiliate thereof to perform in all material
respects its obligations under this Agreement or any other Transaction Document; or 

  
 A-15 

 (iii) the validity or enforceability of this Agreement or any other
Transaction Document, or the validity, enforceability or collectibility of a material portion of the Receivables Pool; or 

(iv) the status, existence, perfection, priority or enforceability of the Secured Parties’ and the Administrative
Agent’s interest in the Receivables Pool. 
 Material Indebtedness: Indebtedness, the aggregate principal amount of which is greater than
$75,000,000. 
 Michel: R. E. Michel Company, a Maryland corporation. 

Moody’s: Moody’s Investors Service, Inc. 

MUFG CP Costs: For each day in any Yield Period with respect to any Asset Tranche funded by Commercial Paper Notes, the sum of (a) discount or
yield accrued (including, without limitation, any associated with financing the discount or interest component on the rollover of any Pooled Commercial Paper) on the MUFG Purchaser’s Pooled Commercial Paper on such day issued to fund or
maintain such Asset Tranche, as determined by the MUFG Purchaser Agent, plus (b) any and all accrued commissions in respect of the MUFG Purchaser’s placement agents and commercial paper dealers, and issuing and paying agent fees incurred,
in respect of such Pooled Commercial Paper for such day, plus (c) other costs (including without limitation those associated with funding small or odd-lot amounts) with respect to all receivable purchase,
credit and other investment facilities which are funded by the applicable Pooled Commercial Paper for such day plus (d) on any day when any Liquidation Event or Unmatured Liquidation Event shall have occurred and be continuing, 2% per
annum (it being understood that the amounts described herein shall be determined by the MUFG Purchaser Agent, whose determination shall be conclusive). 

MUFG LIBO Rate: For any Yield Period the greater of (i) 0% and (ii) the rate per annum established by the MUFG Purchaser Agent
(calculated on the basis of actual days elapsed over a 360-day year) equal to LIBOR, as administered by the ICE Benchmark Administration (or any other person that takes over the administration of such rate),
for deposits in Dollars, appearing on the Reuters page that displays such rate (such page currently being the LIBOR01 page) as of 1:00 p.m. (London time) two (2) London business days immediately preceding the commencement of such Yield Period
for the period matching such Yield Period; provided, however, if a Yield Period does not match an available LIBOR quotation, then the MUFG Purchaser Agent shall determine the MUFG LIBO Rate for the purpose of such Yield Period by linear
interpolation of the nearest two (2) LIBOR rates. In the event that such rate does not appear on such page or service at such time, “MUFG LIBO Rate” shall be determined by reference to such other comparable publicly available
service for displaying the offered rate for deposits in Dollars in the London interbank market as may be selected by the MUFG Purchaser Agent and, in the absence of availability, such other method to determine such offered rate as may be selected by
the MUFG Purchaser Agent in its sole discretion. 

  
 A-16 

 MUFG LIBO Rate Reserve Percentage: With respect to any Investor for any Yield Period in respect of
which Earned Discount is computed by reference to the MUFG LIBO Rate, the reserve percentage applicable two Business Days before the first day of such Yield Period under regulations issued from time to time by the Federal Reserve Board (or if more
than one such percentage shall be applicable, the daily average of such percentages for those days in such Yield Period during which any such percentage shall be so applicable) for determining the maximum reserve requirement (including, without
limitation, any emergency, supplemental or other marginal reserve requirement) for such Investor with respect to liabilities or assets consisting of or including Eurocurrency Liabilities (as such term is defined in Regulation D) (or with respect to
any other category of Liabilities that includes deposits by reference to which the interest rate on Eurocurrency Liabilities is determined) having a term equal to such Yield Period. 

MUFG LIBO Rate (Reserved): With respect to any Yield Period means a rate per annum equal to the quotient obtained (rounded upwards, if
necessary, to the next higher 1/100th of 1%) by dividing (i) the applicable MUFG LIBO Rate for such Yield Period by (ii) a percentage equal to 100% minus the MUFG LIBO Rate Reserve Percentage. 

MUFG Liquidity Agreement: The liquidity asset purchase agreement or other liquidity agreement entered into by any MUFG Liquidity Bank for the benefit
of the MUFG Purchaser, to the extent relating to the sale or transfer of interests in the Asset Interest. 
 MUFG Liquidity Bank: MUFG or any other
Person providing liquidity or credit support to MUFG Purchaser under a MUFG Liquidity Agreement. 
 MUFG Purchaser: As defined in the preamble. 

MUFG Purchaser Account: Such account set forth in a separate letter by the MUFG Purchaser Agent to the Seller and Master Servicer, or such other
account as may be specified in writing from time to time by the MUFG Purchaser Agent to the Seller and Master Servicer. 
 MUFG Purchaser Agent: As
defined in the preamble. 
 MUFG Purchaser Group: The MUFG Purchaser, the MUFG Liquidity Banks and the MUFG Purchaser Agent, together with their
respective successors, assigns and participants. 
 MUFG Purchaser Group Limit: With respect to any period, the corresponding amount for such period
set forth below, which shall be comprised of the Committed Tranche and an amount not to exceed the Uncommitted Tranche: 

  
 A-17 

					
	 Period
	  	MUFG
Purchaser
Group Limit
(Committed
Tranche)	 
	 Settlement Date in February until the date preceding the Settlement Date in March
	  	$	106,250,000	 
	 Settlement Date in March until the date preceding the Settlement Date in April
	  	$	106,250,000	 
	 Settlement Date in April until the date preceding the Settlement Date in May
	  	$	127,500,000	 
	 Settlement Date in May until the date preceding the Settlement Date in June
	  	$	127,500,000	 
	 Settlement Date in June until the date preceding the Settlement Date in July
	  	$	148,750,000	 
	 Settlement Date in July until the date preceding the Settlement Date in August
	  	$	170,000,000	 
	 Settlement Date in August until the date preceding the Settlement Date in September
	  	$	170,000,000	 
	 Settlement Date in September until the date preceding the Settlement Date in October
	  	$	148,750,000	 
	 Settlement Date in October until the date preceding the Settlement Date in November
	  	$	136,000,000	 
	 Settlement Date in November until the date preceding the Settlement Date in December
	  	$	127,500,000	 
	 Settlement Date in December until the date preceding the Settlement Date in January
	  	$	127,500,000	 
	 Settlement Date in January until the date preceding the Settlement Date in February
	  	$	106,250,000	 

 ; provided, however, that, each reference to a Settlement Date in the foregoing table shall be
determined without reference to the proviso contained in the definition of “Settlement Date”. 
 MUFG: As defined in the preamble. 

  
 A-18 

 Net Pool Balance: On any date, an amount equal to (i) the aggregate Unpaid Balance of all
Eligible Receivables in the Receivables Pool on such date, minus (ii) the Excess Concentration Amount on such date, minus (iii) any Specified Annual Rebate processed during the Collection Period during which such date occurs, if
applicable. 
 Net Worth: With respect to the Seller on any date, an amount equal to the aggregate Unpaid Balance of all Pool Receivables
minus the sum of (i) the aggregate Unpaid Balance of all Defaulted Receivables on such day, (ii) if applicable, the aggregate principal amount outstanding of the Initial Seller Notes on such day, together with all accrued and unpaid
interest thereon on such day, and (iii) an amount equal to the Required Reserves plus the Invested Amount on such day. 
 Obligor: A
Person obligated to make payments with respect to a Receivable, including any guarantor thereof. 
 Obligor Concentration Limit: At any time, in
relation to the aggregate Unpaid Balance of Receivables owed by any single Obligor and its Affiliated Obligors (if any): 

(i) for Obligors (other than Michel) who have a short term (or, if none, a long term) unsecured debt rating currently assigned
to them by either S&P or Moody’s, the applicable concentration limit shall be determined according to the following table (and, if such Obligor is rated by both S&P and Moody’s and has a split rating, the applicable rating will be
the lower of the two): 
  

																	
	 S&P Rating
(Short Term)
	  	Moody’s Rating
(Short Term)	 	  	S&P Rating
(Long Term)	 	  	Moody’s Rating
(Long Term)	 	  	Allowable %
of Eligible
Receivables	 
	 A-1 or better
	  	 	P-1	 	  	 	A+ or better	 	  	 	A1	 	  	 	10	% 
	 A-2
	  	 	P-2	 	  	 	BBB+	 	  	 	Baa1	 	  	 	8	% 
	 A-3
	  	 	P-3	 	  	 	BBB-	 	  	 	Baa3	 	  	 	6	% 

 If such Obligor is rated by only S&P, the applicable rating will be deemed to be one ratings tier below
the actual rating by S&P, and, if such Obligor is rated by only Moody’s, the applicable rating will be deemed to be one ratings tier below the actual rating by Moody’s, it being understood that if, for example, Moody’s has
assigned a P-1 rating to such Obligor and S&P has not rated it, the applicable rating will be deemed to be P-2; 

(ii) for Michel, 7.5% of the aggregate Unpaid Balance of Eligible Receivables at such time provided, that such
percentage may be decreased by the Administrative Agent in its sole discretion; and 
 (iii) for Obligors (other than Michel)
who do not have a debt rating listed above or who are not rated, 4% of the aggregate Unpaid Balance of Eligible Receivables at such time; 

  
 A-19 

 provided, however that at the Seller’s request and in the Agents’ sole discretion,
the Agents may permit certain obligors to have an Obligor Concentration Limit in excess of those described in clauses (i) and (iii) above (“Special Obligor”); provided,
however, that any such Special Obligor designation shall not take effect without the confirmation of approval to the Agents by each of Fitch Investors Service, Moody’s and S&P of such designation, if any Agent, in its sole
discretion, determines that such confirmation of approval shall be required. 
 OFAC: The Office of Foreign Assets Control of the U.S. Department of
the Treasury. 
 Originator: Each of Lennox and any other Person who is a seller under the Sale Agreement. 

Other Taxes: As defined in Section 14.5(b). 

Percentage: With respect to any Liquidity Bank, the percentage set forth as such Liquidity Bank’s Percentage on the signature page to this
Agreement or to the Assignment and Acceptance pursuant to which such Liquidity Bank became a party to this Agreement, in each case as such percentage may be reduced or increased by any Assignment and Acceptance entered into between such Liquidity
Bank and an Eligible Assignee. 
 Person: An individual, partnership, corporation (including a business trust), limited liability company, joint
stock company, trust, unincorporated association, joint venture, government or any agency or political subdivision thereof or any other entity. 

Plan: Any pension plan subject to the provisions of Title IV of ERISA or Section 412 of the Code which is maintained for employees of Lennox or
any ERISA Affiliate. 
 PNC: As defined in the preamble. 

PNC LIBO Rate: For any day during any Yield Period, an interest rate per annum determined by the PNC Purchaser Agent and equal to LMIR.
“LMIR” means, for any day during any Yield Period, the greater of (i) 0% and (ii) the one-month LIBOR rate for U.S. dollar deposits as reported on the Reuters Screen LIBOR01 Page or any other
page that may replace such page from time to time for the purpose of displaying offered rates of leading banks for London interbank deposits in United States dollars, as of 11:00 a.m. (London time) on such day, or if such day is not a Business Day,
then the immediately preceding Business Day (or if not so reported, then as determined by the PNC Purchaser Agent from another recognized source for interbank quotation), in each case, changing when and as such rate changes. 

PNC LIBO Rate Reserve Percentage: With respect to any Investor for any Yield Period in respect of which Earned Discount is computed by reference to the
PNC LIBO Rate, the maximum effective percentage in effect on such day as prescribed by the Federal Reserve Board for determining the reserve requirements (including without limitation, supplemental, marginal, and emergency reserve requirements) with
respect to eurocurrency funding (currently referred to as Eurocurrency Liabilities (as such term is defined in Regulation D)). 
 PNC LIBO Rate
(Reserved): With respect to any Yield Period means a rate per annum equal to the quotient obtained (rounded upwards, if necessary, to the next higher 1/100th of 1%) by dividing (i) the applicable PNC LIBO Rate for such Yield
Period by (ii) a percentage equal to 100% minus the PNC LIBO Rate Reserve Percentage. 

  
 A-20 

 PNC Liquidity Bank: PNC or any other Person designated as such from time to time. 

PNC Purchaser Account: Such account set forth in a separate letter by the PNC Purchaser Agent to the Seller and Master Servicer, or such other account
as may be specified in writing from time to time by the PNC Purchaser Agent to the Seller and Master Servicer. 
 PNC Purchaser Agent: As defined in
the preamble. 
 PNC Purchaser Group: The PNC Liquidity Banks and the PNC Purchaser Agent, together with their respective successors, assigns and
participants. 
 PNC Purchaser Group Limit: With respect to any period, the corresponding amount for such period set forth below, which shall be
comprised of the Committed Tranche and an amount not to exceed the Uncommitted Tranche: 
  

					
	 
Period
	  	PNC
Purchaser
Group Limit
(Committed
Tranche)	 
	 Settlement Date in February until the date preceding the Settlement Date in March
	  	$	71,875,000	 
	 Settlement Date in March until the date preceding the Settlement Date in April
	  	$	71,875,000	 
	 Settlement Date in April until the date preceding the Settlement Date in May
	  	$	86,250,000	 
	 Settlement Date in May until the date preceding the Settlement Date in June
	  	$	86,250,000	 
	 Settlement Date in June until the date preceding the Settlement Date in July
	  	$	100,625,000	 
	 Settlement Date in July until the date preceding the Settlement Date in August
	  	$	115,000,000	 
	 Settlement Date in August until the date preceding the Settlement Date in September
	  	$	115,000,000	 

  
 A-21 

					
	 Settlement Date in September until the date preceding the Settlement Date in October
	  	$	100,625,000	 
	 Settlement Date in October until the date preceding the Settlement Date in November
	  	$	92,000,000	 
	 Settlement Date in November until the date preceding the Settlement Date in December
	  	$	86,250,000	 
	 Settlement Date in December until the date preceding the Settlement Date in January
	  	$	86,250,000	 
	 Settlement Date in January until the date preceding the Settlement Date in February
	  	$	71,875,000	 

 ; provided, however, that, each reference to a Settlement Date in the foregoing table shall be
determined without reference to the proviso contained in the definition of “Settlement Date”. 
 Pool Receivable: A Receivable in the
Receivables Pool. 
 Pooled Commercial Paper: Commercial Paper Notes issued by the MUFG Purchaser which are subject to any particular pooling
arrangement, as determined by the MUFG Purchaser Agent (it being recognized that there may be more than one distinct group of Pooled Commercial Paper at any time). 

Preferred Stock: Any class of capital stock of a corporation that is preferred over any other class of capital stock of such corporation as to the
payment of dividends or the payment of any amount upon liquidation or dissolution of such corporation. 
 Prior RPA: As defined in the
Background. 
 Prime Rate: Refers to that fluctuating rate of interest per annum equal to the higher of the rate of interest
most recently announced by MUFG in New York, New York as its prime rate; the Prime Rate is not necessarily intended to be the lowest rate of interest determined by MUFG in connection with extensions of credit. 

Program Fee: The aggregate “Program Fee” set forth in the Fee Letter. 

  
 A-22 

 Pro Rata Share: At any time with respect to a Purchaser Group, (a) with respect to any payment
to be made to such Purchaser Group, the percentage equivalent of a fraction the numerator of which is equal to such Purchaser Group’s Purchaser Group Invested Amount at such time and the denominator of which is equal to the Invested Amount at
such time and (b) with respect to any Purchase to be made by such Purchaser Group, the percentage equivalent of a fraction, the numerator of which is equal to such Purchaser Group’s Purchaser Group Limit (excluding any Uncommitted Tranche
amounts funded by such Purchaser Group in accordance with the terms of this Agreement) in effect at such time and the denominator of which is equal to the Purchase Limit (excluding any Uncommitted Tranche amounts funded by such Purchaser Group in
accordance with the terms of this Agreement) in effect at such time. Notwithstanding the foregoing, for purposes of calculating a Purchaser Group’s Purchaser Group Limit in connection with determining any fees under
Section 3.1(d)(iii) or the Fee Letter, such Purchaser Group Limit shall include any Uncommitted Tranche amounts funded by such Purchaser Group in accordance with the terms of this Agreement. 
 Pro Rata Share (Secondary Allocation): At any time with respect to an Accepting Purchaser Group,
with respect to any Purchase to be made by such Accepting Purchaser Group, the percentage equivalent of a fraction, the numerator of which is equal to such Accepting Purchaser Group’s Purchaser Group Limit (excluding any Uncommitted Tranche
amounts funded by such Purchaser Group in accordance with the terms of this Agreement) in effect at such time and the denominator of which is equal to the sum of all Accepting Purchaser Groups’ Purchaser Group Limits (excluding any Uncommitted
Tranche amounts funded by such Accepting Purchaser Group in accordance with the terms of this Agreement) in effect at such time. 

Purchase: As defined in Section 1.1. 

Purchase Limit: With respect to any period, the corresponding amount for such period set forth below, which shall be comprised of the Committed Tranche
and the Uncommitted Tranche: 
  

													
	 
Period
	  	Purchase Limit
(Committed
Tranche)	 	  	Purchase
Limit
(Uncommitted
Tranche)	 	  	Purchase
Limit	 
	 Settlement Date in February until the date preceding the Settlement Date in March
	  	$	250,000,000	 	  	$	50,000,000	 	  	$	300,000,000	 
	 Settlement Date in March until the date preceding the Settlement Date in April
	  	$	250,000,000	 	  	$	50,000,000	 	  	$	300,000,000	 
	 Settlement Date in April until the date preceding the Settlement Date in May
	  	$	300,000,000	 	  	$	50,000,000	 	  	$	350,000,000	 
	 Settlement Date in May until the date preceding the Settlement Date in June
	  	$	300,000,000	 	  	$	50,000,000	 	  	$	350,000,000	 

  
 A-23 

													
	 Settlement Date in June until the date preceding the Settlement Date in July
	  	$	350,000,000	 	  	$	50,000,000	 	  	$	400,000,000	 
	 Settlement Date in July until the date preceding the Settlement Date in August
	  	$	400,000,000	 	  	$	50,000,000	 	  	$	450,000,000	 
	 Settlement Date in August until the date preceding the Settlement Date in September
	  	$	400,000,000	 	  	$	50,000,000	 	  	$	450,000,000	 
	 Settlement Date in September until the date preceding the Settlement Date in October
	  	$	350,000,000	 	  	$	50,000,000	 	  	$	400,000,000	 
	 Settlement Date in October until the date preceding the Settlement Date in November
	  	$	320,000,000	 	  	$	50,000,000	 	  	$	370,000,000	 
	 Settlement Date in November until the date preceding the Settlement Date in December
	  	$	300,000,000	 	  	$	50,000,000	 	  	$	350,000,000	 
	 Settlement Date in December until the date preceding the Settlement Date in January
	  	$	300,000,000	 	  	$	50,000,000	 	  	$	350,000,000	 
	 Settlement Date in January until the date preceding the Settlement Date in February
	  	$	250,000,000	 	  	$	50,000,000	 	  	$	300,000,000	 

 ; provided, however, that, each reference to a Settlement Date in the foregoing table shall be
determined without reference to the proviso contained in the definition of “Settlement Date”. 
 Purchaser: The MUFG Purchaser and any
other person designated as a Purchaser hereunder from time to time (collectively, the Purchasers). 
 Purchaser Agent: (i) With respect
to the MUFG Purchaser, the MUFG Purchaser Agent, (ii) with respect to itself, the WFB Purchaser Agent, and (iii) with respect to itself, the PNC Purchaser Agent (collectively, the Purchaser Agents). 

Purchaser Agent Account: (i) With respect to the MUFG Purchaser Agent, the MUFG Purchaser Account, (ii) with respect to the WFB Purchaser
Agent, the WFB Purchaser Account, and (iii) with respect to the PNC Purchaser Agent, the PNC Purchaser Account. 
 Purchaser Group: Each of the
MUFG Purchaser Group, the WFB Purchaser Group and the PNC Purchaser Group (collectively, the Purchaser Groups). 
 Purchaser Group Invested
Amount: With respect to a Purchaser Group, the aggregate of the portions of the Invested Amount outstanding at such time that were funded by such Purchaser Group. 

  
 A-24 

 Purchaser Group Limit: (i) With respect to the MUFG Purchaser Group, the MUFG Purchaser Group
Limit in effect at such time, (ii) with respect to the WFB Purchaser Group, the WFB Purchaser Group Limit in effect at such time, and (iii) with respect to the PNC Purchaser Group, the PNC Purchaser Group Limit in effect at such time. 

Purchaser Group’s Tranche Investment: In relation to any Asset Tranche of any Purchaser Group, the amount of the Invested Amount allocated by the
Purchaser Agent of such Purchaser Group to that Asset Tranche pursuant to Section 2.1, provided, that at all times (i) the aggregate amounts allocated to all Asset Tranches of any Purchaser Group shall equal
such Purchaser Group’s Invested Amount and (ii) the aggregate amounts allocated to all Asset Tranches of all Purchaser Groups shall equal the Invested Amount. 

Qualifying Liquidity Bank: A Liquidity Bank with a rating of its short-term securities equal to or higher than
(i) A-1 by Standard & Poor’s and (ii) P-1 by Moody’s. 

Receivable: Any right to payment from a Person, whether constituting an account, chattel paper, instrument or general intangible and includes the right
to payment of any interest or finance charges and other amounts with respect thereto. 
 Receivables Pool: At any time all then outstanding
Receivables which have been sold or contributed as capital, or purported to have been sold or contributed as capital, by an Originator to the Seller, other than those reconveyed to an Originator pursuant to Section 3.5 of
the Sale Agreement. 
 Regulation D: Regulation D of the Federal Reserve Board, as the same may be amended or supplemented from time to time.

 Regulatory Change: Any change after the date of this Agreement in United States (federal, state or municipal) or foreign laws or regulations
(including Regulation D) or the adoption or making after such date of any interpretations, directives or requests applying to a class of banks (including the Liquidity Banks) of or under any United States (federal, state or municipal) or
foreign, laws, or regulations (whether or not having the force of law) by any Governmental Authority or monetary authority charged with the interpretation or administration thereof. 

Reinvestment: As defined in Section 1.3(a)(iii). 

Related Assets: (i) all rights to, but not any obligations under, all related Contracts and other Related Security related to any Pool
Receivables, (ii) all rights and interests of the Seller under the Sale Agreement in relation to any Pool Receivables, (iii) all books and records evidencing or otherwise relating to any Pool Receivables, (iv) all Lockbox Accounts and
related lock boxes and all cash and investments therein, to the extent constituting or representing the items in the following clause (v) and (v) all Collections in respect of, and other proceeds of, any Pool
Receivables or any other Related Assets. 
 Related Security: With respect to any Pool Receivable, all of the Seller’s (in the case of usage in
the Receivables Purchase Agreement) or the Originator’s (in the case of usage in the Sale Agreement) right, title and interest in and to: (i) all Contracts that relate to such Pool Receivable; (ii) all merchandise (including returned
merchandise), if any, relating to the sale 

  
 A-25 

 
which gave rise to such Pool Receivable; (iii) all security deposits and other security interests or liens and property subject thereto from time to time purporting to secure payment of such
Pool Receivable, whether pursuant to the Contract related to such Pool Receivable or otherwise; (iv) all UCC financing statements covering any collateral securing payment of such Pool Receivable (but only to the extent of the interest of the
Seller in the respective Pool Receivable); (v) all guarantees and other agreements or arrangements of whatever character from time to time supporting or securing payment of such Pool Receivable whether pursuant to the Contract related to such
Pool Receivable or otherwise; and (vi) all insurance policies, and all claims thereunder, related to such Pool Receivable, in each case to the extent directly related to rights to payment, collection and enforcement, and other rights with
respect to such Pool Receivable. Except to the extent included in the Collateral, the interest of each Investor in any Related Security is only to the extent of the undivided percentage ownership interest of such Investor’s Purchaser Group, as
more fully described in the definition of Asset Interest. 
 Reportable Event: Any reportable event as defined in Section 4043(b) of ERISA or
the regulations issued thereunder with respect to a Plan (other than a Plan maintained by an ERISA Affiliate which is considered an ERISA Affiliate only pursuant to subsection (m) or (o) of Section 414 of the Code). 

Reporting Date: The fifteenth day of each month or if such day is not a Business Day, the next succeeding Business Day; provided however,
that if the senior unsecured debt ratings of Lennox International Inc. by Moody’s or S&P are reduced below Ba3 or BB-, respectively, or are withdrawn by either of Moody’s or S&P or if either
Moody’s or S&P no longer provides a senior unsecured debt rating for Lennox International Inc. and, in any such case, the aggregate Invested Amount is greater than $0.00, then, in any such case, the Reporting Date will be the first Business
Day of each week. 
 Required Reserve: On any day during a Collection Period, an amount equal to the product of (i) the Net Pool Balance and
(ii) the sum of (a) the Yield Reserve on such day, (b) the Servicing Reserve on such day and (c) the greater of (I) Required Reserve Factor Floor on such day and (II) the sum of (1) the Loss Reserve on such day and
(2) the Dilution Reserve on such day. 
 Required Reserve Factor Floor: The sum of (i) an amount, as of any date of determination and
expressed as a percentage of the aggregate Unpaid Balance of Eligible Receivables as of such date, equal to the greatest of (A) the sum of the four (4) largest aggregate Unpaid Balances of Eligible Receivables for specific Obligors
(including Michel) (calculated as if each such Obligor and its Affiliated Obligors were one Obligor) who do not have a debt rating listed in clause (i) of the definition of “Obligor Concentration Limit” or who are not rated as of such
date (up to the Obligor Concentration Limit for each such Obligor), (B) the sum of the two (2) largest aggregate Unpaid Balances of Eligible Receivables for specific Obligors (calculated as if each such Obligor and its Affiliated Obligors were
one Obligor) who have a short term unsecured debt rating currently assigned to them by either S&P or Moody’s of A-3 or P-3, respectively, as of such date (up to
the Obligor Concentration Limit for each such Obligor), (C) the largest aggregate Unpaid Balances of Eligible Receivables for any Obligor (calculated as if such Obligor and its Affiliated Obligors were one Obligor) who has a short term unsecured
debt rating currently assigned to it by either S&P or Moody’s of A-2 or P-2, respectively, as of such date (up to the Obligor Concentration Limit for such
Obligor), and (D) the largest aggregate Unpaid 

  
 A-26 

 
Balances of Eligible Receivables for any Obligor (calculated as if such Obligor and its Affiliated Obligors were one Obligor) who has a short term unsecured debt rating currently assigned to it
by either S&P or Moody’s of A-1 or P-1, respectively, as of such date (up to the Obligor Concentration Limit for such Obligor), and (ii) the product of the
Adjusted Dilution Ratio times the Dilution Horizon Ratio. For purposes of calculating the Required Reserve Factor Floor, the applicable rating of any Obligor that is rated by both S&P and Moody’s and has a split rating will be the lower of
the two ratings. 
 S&P: Standard & Poor’s Ratings Service. 

Sale Agreement: The Second Amended and Restated Purchase and Sale Agreement dated as of November 18, 2011 among the Originators and the Seller as
it may be amended, restated, supplemented or otherwise modified. 
 Sanctioned Country: At any time of determination, a country or territory which is
the subject or target of any Sanctions administered by OFAC (at November 21, 2014, Cuba, Burma (Myanmar), Iran, North Korea, Sudan and Syria). 

Sanctioned Person: At any time of determination, (a) any Person that is the subject or the target of any applicable Sanctions, including any
Person listed in any Sanctions-related list of designated Persons maintained OFAC, the U.S. Department of State or by the United Nations Security Council, the European Union or any European Union member state, or (b) any Person directly or
indirectly 50 percent or more owned or controlled by any such Person or Persons described in the foregoing clause (a). 
 Sanctions: Economic,
financial or other sanctions or trade embargoes imposed, administered or enforced from time to time by the U.S. government, including those administered by OFAC or the U.S. Department of State, or other relevant sanctions authority, including the
U.S. and Canada. 
 SEC: The Securities and Exchange Commission. 

Secured Parties: The Purchasers, the Liquidity Banks, the Agents, the other Indemnified Parties and the other Affected Parties. 

Seller: As defined in the preamble. 
 Seller
Information: As defined in Section 14.7(a). 
 Seller Information Provider: As defined in
Section 14.7(a). 
 Seller Party: As defined in the preamble. 

Seller’s Account: The account specified in a written notice provided by the Seller to the Agents. 

Seller’s Share: With respect to any amount means 100% minus the lesser of (i) the most recently calculated Asset Interest and (ii) 100%.

  
 A-27 

 Servicer Default: As defined in Section 8.4. 

Servicing Fee: Accrued for any day in a Collection Period means: (i) an amount equal to the product of (A) the Servicing Fee Rate,
(B) the aggregate Unpaid Balance of the Pool Receivables at the close of business on the first day of such Collection Period, and (C) 1/360; or (ii) on and after the Master Servicer’s reasonable request made at any time when
Lennox, Seller or any Affiliate or designee thereof shall no longer be Master Servicer, an alternative amount specified by Master Servicer not exceeding (A) 110% of Master Servicer’s costs and expenses of performing its obligations under
the Agreement during the Collection Period when such day occurs divided by (B) the number of days in such Collection Period. 
 Servicing Fee
Rate: 1.00% per annum. 
 Servicing Reserve: The product of (i) the Servicing Fee Rate and (ii) a fraction, the numerator
of which is the Twelve Month DSO and the denominator of which is 360. 
 Settlement Date: Two Business Days following each Reporting Date;
provided, however, during any period during which a Weekly Report is required to be delivered, the Settlement Date shall also be two Business Days immediately following the related Weekly Reporting Date. 

Special Obligor: As defined in the definition of Obligor Concentration Limit. 

Specified Annual Rebate: Identifiable annual volume and sales rebates tracked and processed by Lennox during the applicable period. 

Subsidiary: With respect to any Person means (i) a corporation more than 50% of whose stock of any class or classes having by the terms thereof
ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time stock of any class or classes of such corporation shall have or might have voting power by reason of the happening of any
contingency) is at the time owned or controlled by such Person, directly or indirectly through Subsidiaries, and (ii) any partnership, association, limited liability company, joint venture or other entity in which such Person, directly or
indirectly through Subsidiaries, has more than a 50% equity interest at the time. 
 Successor Notice: As defined in
Section 8.1(b). 
 Swaps: With respect to any Person, payment obligations with respect to interest rate swaps, currency
swaps and similar obligations obligating such Person to make payments, whether periodically or upon the happening of a contingency. For the purpose of this Agreement, the amount of the obligation under any Swap shall be an amount determined in
respect thereof as of the end of the then most recently ended fiscal quarter of such Person, based on the assumption that such Swap had terminated at the end of such fiscal quarter, and in making such determination, if any agreement relating to such
Swap provides for the netting of amounts payable by and to such Person thereunder or if any such agreement provides for the simultaneous payment of amounts by and to such Person, then in each such case, the amount of such obligation shall be the net
amount so determined. 

  
 A-28 

 Taxes: As defined in Section 3.3(d). 

Term SOFR: means the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body. 

Termination Date: The earliest of: 

(i) the date of termination (whether by scheduled expiration, termination on default or otherwise) of the Liquidity Banks’
commitments under their respective Liquidity Agreement (unless such commitments are renewed, extended or replaced on or before such date); 

(ii) the Funding Termination Date; 

(iii) the date designated by the Seller as the “Termination Date” on not less than thirty (30) days’ notice
to the Administrative Agent, provided that on such date the Invested Amount has been reduced to zero, all accrued Earned Discount, CP Costs and fees have been paid in full and all other amounts due to the Investors and the Agents have been
paid in full; and 
 (iv) the date on which any of the following shall occur: 

(A) A Downgrading Event with respect to a Liquidity Bank shall have occurred and been continuing for not less than 45 days,
(x) the Downgraded Liquidity Bank shall not have been replaced by a Qualifying Liquidity Bank pursuant to a Liquidity Agreement in form and substance acceptable to the Purchaser and the Administrative Agent, and (y) the commitment of such
Downgraded Liquidity Bank under the Liquidity Agreement shall not have been funded or collateralized in such a manner that such Downgrading Event will not result in a reduction or withdrawal of the credit rating applied to the Commercial Paper Notes
by any of the rating agencies then rating the Commercial Paper Notes; or 
 (B) Purchaser shall become an “investment
company” within the meaning of the Investment Company Act of 1940, as amended. 
 Termination Notice: As defined in
Section 8.4. 
 Threshold Amount: $1,000,000, or such other amount to which the Administrative Agent may agree in writing
from time to time. 
 Transaction Documents: This Agreement, the Lockbox Agreements, the Sale Agreement, the Assurance Agreement, the Fee
Letter, all amendments and waivers to any of the foregoing, and the other documents to be executed and delivered in connection herewith. 
 Transaction
Fees: Subject to the limitations set forth in the Fee Letter, all reasonable expenses of the Agents incurred in connection with the consummation of this Agreement and each other Transaction Document, including but not limited to (i) the
legal fees of Kaye Scholer LLP, counsel to the Administrative Agent, (ii) expenses incurred in connection with any due diligence audit and (iii) out-of-pocket
expenses of the Agents. 

  
 A-29 

 Twelve Month DSO: For any day, the highest Days Sales Outstanding that occurred during the twelve
(12) month period ending on such date of calculation. 
 UCC: The Uniform Commercial Code, as from time to time in effect in the applicable
jurisdiction or jurisdictions. 
 Uncommitted Tranche: $50,000,000. 

Unmatured Liquidation Event: Any event which, with the giving of notice or lapse of time, or both, would become a Liquidation Event. 

Unpaid Balance: With respect to any Receivable means at any time the unpaid amount thereof, but excluding all late payment charges, delinquency charges
and extension or collection fees. 
 Unused Fee: The aggregate “Unused Fee” set forth in the Fee Letter. 

Volcker Rule: Section 13 of the U.S. Bank Holding Company Act of 1956, as amended, and the applicable rules and regulations thereunder 

Weekly Report: A report (for the week most recently ended) in the form of Exhibit 3.1(a)-2. 

Weekly Reporting Date: For any period during which Weekly Reports are required to be delivered, the first Business Day of each calendar week. 

Weekly Reporting Period: For any Weekly Reporting Date, the calendar week ended on the Friday immediately preceding such Weekly Reporting Date. 

Weekly Settlement Date: One Business Day following each Weekly Reporting Date. 

Weighted Average Term: On any day, the weighted average of the stated terms of all Receivables (excluding Receivables owed by an Affiliate or employee
of any Seller Party or Originator) owned by Seller on such date, weighted on the basis of the Unpaid Balance of each such Receivable, as of such date of calculation. 

WFB: As defined in the preamble. 
 WFB LIBO
Rate: For any day during any Yield Period, an interest rate per annum determined by the WFB Purchaser Agent and equal to LMIR. “LMIR” means, for any day during any Yield Period, the greater of (i) 0% and (ii) the one-month LIBOR rate for U.S. dollar deposits as reported on the Reuters Screen LIBOR01 Page or any other page that may replace such page from time to time for the purpose of displaying offered rates of leading
banks for London interbank deposits in United States dollars, as of 11:00 a.m. (London time) on such day, or if such day is not a Business Day, then the immediately preceding Business Day (or if not so reported, then as determined by the WFB
Purchaser Agent from another recognized source for interbank quotation), in each case, changing when and as such rate changes. 

  
 A-30 

 WFB LIBO Rate Reserve Percentage: With respect to any Investor for any Yield Period in respect of
which Earned Discount is computed by reference to the WFB LIBO Rate, the maximum effective percentage in effect on such day as prescribed by the Federal Reserve Board for determining the reserve requirements (including without limitation,
supplemental, marginal, and emergency reserve requirements) with respect to eurocurrency funding (currently referred to as Eurocurrency Liabilities (as such term is defined in Regulation D)). 

WFB LIBO Rate (Reserved): With respect to any Yield Period means a rate per annum equal to the quotient obtained (rounded upwards, if
necessary, to the next higher 1/100th of 1%) by dividing (i) the applicable WFB LIBO Rate for such Yield Period by (ii) a percentage equal to 100% minus the WFB LIBO Rate Reserve Percentage. 

WFB Liquidity Bank: WFB or any other Person designated as such from time to time. 

WFB Purchaser Account: Such account set forth in a separate letter by the WFB Purchaser Agent to the Seller and Master Servicer, or such other account
as may be specified in writing from time to time by the WFB Purchaser Agent to the Seller and Master Servicer. 
 WFB Purchaser Agent: As defined in
the preamble. 
 WFB Purchaser Group: The WFB Liquidity Banks and the WFB Purchaser Agent, together with their respective successors, assigns and
participants. 
 WFB Purchaser Group Limit: With respect to any period, the corresponding amount for such period set forth below, which shall be
comprised of the Committed Tranche and an amount not to exceed the Uncommitted Tranche: 
  

					
	 
Period
	  	WFB
Purchaser
Group Limit
(Committed
Tranche)	 
	 Settlement Date in February until the date preceding the Settlement Date in March
	  	$	71,875,000	 
	 Settlement Date in March until the date preceding the Settlement Date in April
	  	$	71,875,000	 
	 Settlement Date in April until the date preceding the Settlement Date in May
	  	$	86,250,000	 
	 Settlement Date in May until the date preceding the Settlement Date in June
	  	$	86,250,000	 
	 Settlement Date in June until the date preceding the Settlement Date in July
	  	$	100,625,000	 

  
 A-31 

					
	 Settlement Date in July until the date preceding the Settlement Date in August
	  	$	115,000,000	 
	 Settlement Date in August until the date preceding the Settlement Date in September
	  	$	115,000,000	 
	 Settlement Date in September until the date preceding the Settlement Date in October
	  	$	100,625,000	 
	 Settlement Date in October until the date preceding the Settlement Date in November
	  	$	92,000,000	 
	 Settlement Date in November until the date preceding the Settlement Date in December
	  	$	86,250,000	 
	 Settlement Date in December until the date preceding the Settlement Date in January
	  	$	86,250,000	 
	 Settlement Date in January until the date preceding the Settlement Date in February
	  	$	71,875,000	 

 ; provided, however, that, each reference to a Settlement Date in the foregoing table shall be
determined without reference to the proviso contained in the definition of “Settlement Date”. 
 Yield Period: With respect to any Asset
Tranche funded by a Liquidity Funding, 
 (a) the period commencing on the date of the initial Purchase of the Asset
Interest, the making of such Liquidity Funding, or the creation of such Asset Tranche pursuant to Section 2.1 (whichever is latest) and ending (x) other than in the case of an Asset Tranche funded by the WFB Purchaser
Group or the PNC Purchaser Group, such number of days thereafter as the Purchaser Agent of the Liquidity Bank making such Liquidity Funding shall select and (y) in the case of an Asset Tranche funded by the WFB Purchaser Group or the PNC
Purchaser Group, on the last day of the same calendar month thereof (or, during any period during which Weekly Reports are required to be delivered, on the last day of the same calendar week thereof); and 

  
 A-32 

 (b) thereafter, (x) other than in the case of an Asset Tranche funded
by the WFB Purchaser Group or the PNC Purchaser Group, each period commencing on the last day of the immediately preceding Yield Period for the related Asset Tranche and ending such number of days thereafter as the Purchaser Agent of the Liquidity
Bank making such Liquidity Funding shall select and (y) in the case of an Asset Tranche funded by the WFB Purchaser Group or the PNC Purchaser Group, a period of one month (or, during any period during which Weekly Reports are required to be
delivered, a period of one week) commencing on the last day of the immediately preceding Yield Period for such Asset Tranche (which period shall correspond to a calendar month (or, during any period during which Weekly Reports are required to be
delivered, a calendar week); 
 provided, however, that 

(i) any such Yield Period (other than a Yield Period consisting of one day) which would otherwise end on a day that is not a
Business Day shall be extended to the next succeeding Business Day (unless the related Asset Tranche shall be accruing Earned Discount at a rate determined by reference to MUFG LIBO Rate (Reserved), in which case if such succeeding Business Day is
in a different calendar month, such Yield Period shall instead be shortened to the next preceding Business Day); 
 (ii) in
the case of Yield Periods of one day for any Asset Tranche, (A) the initial Yield Period shall be the date such Yield Period commences as described in clause (a) above; and (B) any subsequently occurring Yield
Period which is one day shall, if the immediately preceding Yield Period is more than one day, be the last day of such immediately preceding Yield Period, and if the immediately preceding Yield Period is one day, shall be the next day following such
immediately preceding Yield Period; and 
 (iii) in the case of any Yield Period for any Asset Tranche which commences before
the Termination Date and would otherwise end on a date occurring after such Termination Date, such Yield Period shall end on such Termination Date and the duration of each such Yield Period which commences on or after the Termination Date for such
Asset Tranche shall be of such duration as shall be selected by the applicable Purchaser Agent. 
 Yield Reserve: On any date of determination, the
product of (i) 1.5, (ii) the Base Rate and (iii) a fraction the numerator of which is the current month’s DSO and the denominator of which is 360. 

(A) Other Terms. All accounting terms not specifically defined herein shall be construed in accordance with GAAP. All terms used in
Article 9 of the UCC in the State of New York, and not specifically defined herein, are used herein as defined in such Article 9. 
 (B)
Computation of Time Periods. Unless otherwise stated in this Agreement, in the computation of a period of time from a specified date to a later specified date, the word “from” means “from and including” and the words
“to” and “until” each mean “to but excluding”. 

  
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