Document:

EX-10.1

CHICAGO MERCANTILE EXCHANGE INC.

CREDIT AGREEMENT

DATED AS OF DECEMBER 8, 2010

AMONG

CHICAGO MERCANTILE EXCHANGE INC.,

EACH OF THE BANKS FROM TIME TO TIME PARTY HERETO,

JPMORGAN CHASE BANK, N.A.,

AS ADMINISTRATIVE AGENT AND

AS COLLATERAL AGENT,

BANK OF MONTREAL

AND

BANK OF AMERICA, N.A.,

AS CO-SYNDICATION AGENTS,

__________________

J.P. MORGAN SECURITIES LLC,

BMO CAPITAL MARKETS

AND

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,

AS JOINT LEAD ARRANGERS

Table of Contents

Page

ARTICLE I

DEFINITIONS

	 	 	 
	Section 1.1

Section 1.2

	 	Definitions

Other Definitional Provisions

ARTICLE II

THE CREDIT

	 	 	 
	Section 2.1

Section 2.2

Section 2.3

Section 2.4

Section 2.5

Section 2.6

Section 2.7

Section 2.8

Section 2.9

Section 2.10

Section 2.11

Section 2.12

Section 2.13

Section 2.14

	 	Revolving Credit Loans

Ratable Loans

Repayment of Advances

Reborrowing of Advances

Optional Principal Payments

Mandatory Principal Payments

Adjustments of Commitments

Fees

Collateral

Additional Credit Facility

Defaulting Banks

Removal or Replacement of a Bank

Redesignation of Settlement Loans

Participations in Swingline Loans

ARTICLE III

FUNDING THE CREDITS

	 	 	 
	Section 3.1

Section 3.2

Section 3.3

Section 3.4

Section 3.5

Section 3.6

	 	Method of Borrowing

Minimum Amount of Each Advance

Interest

Method of Payment

Notes; Telephonic Notices

Interest Payment Dates; Interest Basis

ARTICLE IV

ADMINISTRATIVE AGENT

	 	 	 
	Section 4.1

Section 4.2

Section 4.3

Section 4.4

Section 4.5

	 	Notice to and Payment by the Banks

Payment by Banks to the Administrative Agent

Distribution of Payments

Rescission of Payments by the Company

Powers Granted to the Administrative Agent

ARTICLE V

CONDITIONS PRECEDENT

	 	 	 
	Section 5.1

Section 5.2

	 	Conditions Precedent

Each Advance

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

	 	 	 
	Section 6.1

Section 6.2

Section 6.3

Section 6.4

Section 6.5

Section 6.6

Section 6.7

Section 6.8

Section 6.9

Section 6.10

Section 6.11

Section 6.12

Section 6.13

	 	Corporate Existence and Standing

Authorization and Validity

Compliance with Laws and Contracts

Financial Statements

Material Adverse Change

Subsidiaries

Accuracy of Information

Margin Regulations

Taxes

Litigation

ERISA

Investment Company Status

Registration

ARTICLE VII

COVENANTS

	 	 	 
	Section 7.1

Section 7.2

Section 7.3

Section 7.4

Section 7.5

Section 7.6

Section 7.7

Section 7.8

Section 7.9

Section 7.10

Section 7.11

Section 7.12

Section 7.13

	 	Financial Reporting

Use of Proceeds

Notice of Default

Conduct of Business

Compliance with Laws

Books and Records; Inspection Rights

Consolidated Tangible Net Worth

Liens

Additional Clearing Members

Rule Changes

Taxes

Insurance

Fundamental Changes

ARTICLE VIII

DEFAULTS

	 	 	 
	Section 8.1

Section 8.2

Section 8.3

Section 8.4

Section 8.5

Section 8.6

Section 8.7

Section 8.8

Section 8.9

Section 8.10

Section 8.11

	 	Representations and Warranties

Payment Defaults

Certain Covenant Defaults

Other Covenant Defaults

Other Indebtedness

Bankruptcy, etc

Involuntary Bankruptcy, etc

[Reserved].

Judgments

Security Interest; Validity

CFTC Designation

ARTICLE IX

ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES

	 	 	 
	Section 9.1

Section 9.2

Section 9.3

	 	Acceleration

Amendments

Preservation of Rights

ARTICLE X

THE AGENTS

	 	 	 
	Section 10.1

Section 10.2

Section 10.3

Section 10.4

Section 10.5

Section 10.6

Section 10.7

Section 10.8

	 	Declaration and Acceptance of Appointment; No Fiduciary Duties

Reliance by Each Agent

Reimbursement and Indemnification

Each Agent in its Individual Capacity

Resignation or Termination of Agent; Sub-Agents

Non-Reliance Representation

Exculpation

Collateral Valuation

ARTICLE XI

GENERAL PROVISIONS SECTION

	 	 	 
	Section 11.1

Section 11.2

Section 11.3

Section 11.4

Section 11.5

Section 11.6

Section 11.7

Section 11.8

Section 11.9

Section 11.10

Section 11.11

Section 11.12

Section 11.13

Section 11.14

	 	Successors and Assigns; Participating Interests

Survival

[Reserved]

Taxes

Choice of Law; Jurisdiction

Headings

Entire Agreement

Several Obligations

Expenses; Indemnification; Increased Costs; Damage Waiver

Accounting

Severability of Provisions

Confidentiality

WAIVER OF TRIAL BY JURY

USA Patriot Act Notification

ARTICLE XII

SETOFF; RATABLE PAYMENTS

	 	 	 	Section 12.1 Setoff; Ratable Payments

ARTICLE XIII

NOTICES

	 	 	 
	Section 13.1

Section 13.2

	 	Giving Notice

Change of Address

ARTICLE XIV

COUNTERPARTS

ARTICLE XV

SUBORDINATION

ANNEX I – ELIGIBLE ASSETS

EXHIBIT A – NOTE

EXHIBIT B – OFFICER’S CERTIFICATE

EXHIBIT C – RESERVED

EXHIBIT D – CERTIFICATE OF COMPANY ACCOUNTANTS

EXHIBIT E – DEFAULT/UNMATURED DEFAULT CERTIFICATE

EXHIBIT F – INCUMBENCY CERTIFICATE

EXHIBIT G – SECURITY AND PLEDGE AGREEMENT

EXHIBIT H – RULES

EXHIBIT I – FORM OF ADVANCE REQUEST

EXHIBIT J – FORM OF COLLATERAL NOTICE

EXHIBIT K – FORM OF NOTICE OF REDESIGNATION

SCHEDULE I – SUBSIDIARIES

SCHEDULE II – LITIGATIONCHICAGO MERCANTILE EXCHANGE INC.

CREDIT AGREEMENT

This Credit Agreement, dated as of December 8, 2010, is among Chicago Mercantile Exchange
Inc., a Delaware corporation (together with its successors and assigns, “CME” or the “Company”) and
a wholly owned subsidiary of CME Group Inc. (together with its successors and assigns, “Holdings”),
the Banks, JPMorgan Chase Bank, N.A., as Administrative Agent and as Collateral Agent.

In consideration of the mutual agreements herein contained, the parties hereto hereby agree as
follows:

ARTICLE I

DEFINITIONS

	 	 	 
	The parties hereto agree as follows:

	Section 1.1

	 	Definitions. As used in this Agreement:
	
 
	 	 

“2.7.2 Effective Date” has the meaning set forth in Section 2.7.2.

“2.7.2 Notice” has the meaning set forth in Section 2.7.2.

“Accelerated Termination Date” means the effective date of any termination of a Bank’s
Commitment pursuant to Section 2.12.

“Accelerated Termination Notice” has the meaning set forth in Section 2.7.2.

“Additional Agent” has the meaning set forth in Section 4.5(a).

“Additional Amount” has the meaning set forth in Section 11.4(a).

“Administrative Agent” means JPMorgan Chase Bank, N.A., in its capacity as administrative
agent for the Banks pursuant to Article X or any successor administrative agent hereunder,
together with their respective successors and assigns.

“Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the
Administrative Agent.

“Advance” means a borrowing hereunder consisting of the aggregate amount of the several
Revolving Loans made to the Company by the Banks, or of the several Swingline Loans made to the
Company by the applicable Swingline Banks, in either case of the same type (either Clearing Fund
Pool Loans or Company Pool Loans), at the same time and having the same Loan Maturity Date.

“Advance Rate” means, with respect to any Eligible Asset, the percentage specified on
Annex I hereto applicable to such Eligible Asset based on its asset type and, for some
asset types, time to maturity.

“Advance Request” has the meaning set forth in Section 3.1.

“Advance Request Confirmation” has the meaning set forth in Section 3.1.

“Affiliate” means, with respect to a specified Person, another Person that directly, or
indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.

“Agent” means the Administrative Agent or the Collateral Agent, as the context may require,
and

“Agents” means the Administrative Agent and the Collateral Agent.

“Aggregate Commitment” means the aggregate of the Commitments of all the Banks hereunder as
the same may be increased or reduced from time to time pursuant to the terms of this Agreement.
The Aggregate Commitment as of the Closing Date shall be $1,000,000,000.

“Agreement” means this Credit Agreement, as it may be amended, restated, supplemented or
otherwise modified from time to time.

“Agreement Accounting Principles” means generally accepted principles of accounting in effect
at the time of the preparation of the financial statements referred to in Section 6.4,
applied in a manner consistent with that used in preparing such statements.

“Article” means an article of this Agreement unless another document is specifically
referenced.

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

“Assignment Agreement” has the meaning set forth in Section 11.1(c).

“Audit” has the meaning set forth in Section 7.6.

“Banks” means the banks and other financial institutions listed on the signature pages of this
Agreement and their respective successors and assigns and any other Person that becomes a party
hereto as a Bank in accordance with Section 9.2(b) or 11.1(c).

“Bank Notice” has the meaning set for in Section 3.1(b).

“BONY Securities Account” means “BONY Securities Account” under and as defined in the Security
and Pledge Agreement.

“BONY Securities Account Control Agreement” means “BONY Securities Account Control Agreement”
under and as defined in the Security and Pledge Agreement.

“BONY Securities Intermediary” means “BONY Securities Intermediary” under and as defined in
the Security and Pledge Agreement.

“Borrowing Base” means (a) with respect to any Clearing Fund Collateral Pool or Clearing Fund
Pool Loans, the applicable Clearing Fund Borrowing Base and (b) with respect to the Company
Collateral Pool or the Company Pool Loans, the Company Borrowing Base.

“Borrowing Date” means a date on which an Advance is made hereunder.

“Bullion Security Agreement” means “Bullion Security Agreement” under and as defined in the
Security and Pledge Agreement.

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial
banks in Chicago, Illinois or New York, New York are authorized or required by law to close.

“CBOT” means The Chicago Board of Trade, together with its successors and assigns.

“CBOT Rules” means the rules of the CBOT, as amended and in effect from time to time and
includes any interpretations thereof.

“Citibank Securities Account” means “Citibank Securities Account” under and as defined in the
Security and Pledge Agreement.

“Citibank Securities Account Control Agreement” means “Citibank Securities Account Control
Agreement” under and as defined in the Security and Pledge Agreement.

“Citibank Securities Intermediary” means “Citibank Securities Intermediary” under and as
defined in the Security and Pledge Agreement.

“Clearing Business” has the meaning set forth in Section 7.2.

“Clearing Fund Borrowing Base” means, at any time, an amount equal to the aggregate Discounted
Value of all Collateral included in the Clearing Fund Collateral Pool for the applicable Clearing
Business at such time, free and clear of any Lien other than those granted under the Loan Documents
or as permitted by Section 7.8. 

“Clearing Fund Collateral Pool” means the “Clearing Fund Collateral Pool” under and as defined
in the Security and Pledge Agreement.

“Clearing Fund Pool Loan” means each Settlement Loan, other than any Settlement Loan that, by
virtue of its initial designation in the applicable Advance Request or by virtue of any
redesignation pursuant to Section 2.13, is then designated as a Company Pool Loan.

“Clearing House” means the department or departments of the Company that reconcile, settle,
adjust and clear contracts on the exchange of the Company, CBOT, NYMEX or any other exchange in
respect of which the Company has equivalent authority, as the case may be, subject to the Rules.

“Clearing Member” means a firm qualified to clear trades through the Clearing House.

“Clearing Member Security” means “Clearing Member Security” under and as defined in the
Security and Pledge Agreement.

“Closing Date” has the meaning set forth in Section 5.1.

“CME” has the meaning set forth in the preamble hereto.

“CMECE” means CME Clearing Europe, a wholly-owned subsidiary of Holdings.

“CMECE Loans” has the meaning set forth in Section 7.2.

“CME Rules” means the rules of the Company, as amended and in effect from time to time and
includes any interpretations thereof.

“Code” means the Internal Revenue Code of 1986, as amended.

“Collateral” means, collectively, the “Collateral” under and as defined in the Security and
Pledge Agreement and the “Security Assets” under and as defined in the Bullion Security Agreement.

“Collateral Accounts” has the meaning set forth in the Security and Pledge Agreement.

“Collateral Agent” means JPMorgan Chase Bank, N.A., in its capacity as collateral agent for
the Banks pursuant to Article X or any successor collateral agent hereunder, together with
their respective successors and assigns.

“Collateral Documents” means the Security and Pledge Agreement, the Bullion Security Agreement
and all other agreements and documents entered into by the Company in favor of the Collateral Agent
for the benefit of the Banks for the purpose of effecting the Security and Pledge Agreement
(including, without limitation, each Control Agreement), in each case, as the same may be amended,
restated, supplemented or otherwise modified from time to time.

“Collateral Notice” has the meaning set forth in Section 3.1(a).

“Collateral Pool” means (a) with respect to any Clearing Fund Pool Loans or Clearing Fund
Borrowing Base, the Clearing Fund Collateral Pool for the applicable Clearing Business and (b) with
respect to the Company Pool Loans or the Company Borrowing Base, the Company Collateral Pool.

“Commitment” means, for each Bank, the obligation of such Bank to make Revolving Loans to the
Company in an aggregate principal amount at any one time outstanding not exceeding the amount set
forth opposite its signature below, or as set forth in an Assignment Agreement in the case of any
Bank that becomes a party hereto pursuant to Section 11.1(c), or as agreed to between the
Company and the applicable Bank, in the case of any Bank that becomes a party hereto pursuant to
Section 9.2(b), in each case, as such amount may be modified from time to time as provided
herein, including, without limitation, pursuant to Section 2.10 hereof.

“Company” has the meaning set forth in the preamble hereto.

“Company Borrowing Base” means, at any time, an amount equal to the aggregate Discounted Value
of all Collateral included in the Company Collateral Pool at such time, free and clear of any Lien
other than those granted under the Loan Documents or as permitted by Section 7.8.

“Company Collateral Pool” means “Company Collateral Pool” under and as defined in the Security
and Pledge Agreement.

“Company Pool Loan” means each GFX Loan and CMECE Loan, and any Settlement Loan that, by
virtue of its initial designation in the applicable Advance Request or by virtue of any
redesignation pursuant to Section 2.13, is then designated as a Company Pool Loan.

“Company Security” means “Company Security” under and as defined in the Security and Pledge
Agreement.

“Concentration Limit” has the meaning set forth in Annex I.

“Consolidated Tangible Net Worth” means at any date the consolidated shareholders’ equity of
the Company and its consolidated Subsidiaries determined in accordance with Agreement Accounting
Principles, less their consolidated Intangible Assets, all determined as of such date. For purposes
of this definition “Intangible Assets” means the amount (to the extent reflected in determining
such consolidated shareholders’ equity) of (i) all write-ups (other than write-ups resulting from
foreign currency translations and write-ups of assets of a going concern business made within
twelve months after the acquisition of such business) subsequent to September 30, 2010 in the book
value of any asset owned by the Company or a consolidated Subsidiary, (ii) all investments in
unconsolidated Subsidiaries and all equity investments in Persons which are not Subsidiaries and
(iii) all unamortized debt discount and expense, unamortized deferred charges, goodwill, patents,
trademarks, service marks, trade names, copyrights, organization or developmental expenses and
other intangible items.

“Control” means the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person, whether through the ability to exercise voting
power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto.

“Control Agreement” means “Control Agreement” under and as defined in the Security and Pledge
Agreement.

“Controlled Group” means all members of a controlled group of corporations and all trades or
businesses (whether or not incorporated) under common control which, together with the Company, are
treated as a single employer under Section 414(b) or 414(c) of the Internal Revenue Code.

“Covering Swingline Loan” has the meaning set forth in Section 3.1(a).

“Cross-Margining Clearing Organization” means a clearing organization that has entered into a
cross-margining agreement with the Clearing House.

“Daylight Overdraft” means an intraday settlement obligation of the Company to a Clearing
Member incurred in the ordinary course of business in accordance with the Rules. Any such
obligation not settled by the close of business on the date incurred shall then cease to be a
Daylight Overdraft.

“Default” means an event described in Article VIII.

“Defaulted Clearing Member” means, as of any time of determination, a Clearing Member that is
then in default of its obligations to the Company, CBOT, NYMEX or any other exchange which is
qualified to clear trades through the Clearing House, under and pursuant to the Rules.

“Defaulting Bank” means any Bank, as reasonably determined by the Administrative Agent, that
has (a) committed a Funding Default (which Funding Default shall be continuing), (b) notified the
Company, the Administrative Agent or any Bank in writing (including, without limitation, by
electronic notification) that it does not intend to comply with any of its funding obligations
under this Agreement or has made a public statement to the effect that it does not intend to comply
with its funding obligations under this Agreement or generally under other agreements in which it
commits to extend credit, (c) failed, within three Business Days after written request by the
Administrative Agent (based on the reasonable belief that it may not fulfill its funding
obligation), to confirm in writing that it will comply with the terms of this Agreement relating to
its obligations to fund prospective Revolving Loans or to acquire a participating interest in a
Swingline Loan in accordance with Section 2.14,2.14; provided that such Bank shall cease to be a
Defaulting Bank pursuant to this clause (c) upon receipt of such confirmation by the Administrative
Agent, (d) otherwise failed to pay over to the Administrative Agent or any other Bank any other
amount (other than a de minimis amount) required to be paid by it hereunder within three Business
Days of the date when due, unless the subject of a good faith dispute, or (e) becomes, or its
controlling parent becomes, the subject of a bankruptcy or insolvency proceeding, or has had a
receiver, conservator, trustee or custodian appointed for it, or has taken any action in
furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or
appointment.

“Discounted Value” means, at any time with respect to any Eligible Asset included in the
Collateral, the discounted Market Value of such asset determined by multiplying the Market Value of
such asset at the time by the Advance Rate applicable to such Eligible Asset.

“Eligible Asset” means any asset which is of a type and, where applicable, has a maturity as
listed on Annex I hereto, subject, in each case, to the Concentration Limit and Minimum
Credit Rating (as applicable).

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time.

“Excess Availability” means, as of any date, (a) in the case of an Advance consisting of
Clearing Fund Pool Loans for any Clearing Business, the lesser of (i) the excess, if any, of the
Aggregate Commitment minus the aggregate principal of all outstanding Loans disbursed to the
Company and (ii) the excess, if any, of the Clearing Fund Borrowing Base for such Clearing Business
minus the aggregate principal of all outstanding Clearing Fund Pool Loans for such Clearing
Business disbursed to the Company and (b) in the case of an Advance consisting of Company Pool
Loans, the lesser of (i) the excess, if any, of the Aggregate Commitment minus the aggregate
principal of all outstanding Loans disbursed to the Company and (ii) the excess, if any, of the
Company Borrowing Base minus the aggregate principal of all outstanding Company Pool Loans
disbursed to the Company.

“Excluded Taxes” means, with respect to any and all payments to any Agent, any Bank or any
recipient of any payment to be made by or on account of any obligation of the Company under the
Loan Documents, (i) net income taxes, branch profits taxes, franchise and excise taxes (to the
extent imposed in lieu of net income taxes), and all interest, penalties and liabilities with
respect thereto, imposed on any Agent or any Bank by the United States of America or any political
subdivision thereof, or by the jurisdiction under the laws of which such Agent, Bank or recipient
is organized or in which its principal office is located or, in the case of any Lender, in which
its applicable lending office is located and (ii) any U.S. federal withholding taxes imposed by
FATCA.

“Existing Credit Agreement” means the Credit Agreement dated as of December 9, 2009, among the
Company, certain lenders parties thereto, JPMorgan Chase Bank, N.A., as Administrative Agent and as
Collateral Agent, and the other agents named therein.

“FATCA” means Sections 1471 through 1474 of the Code and any regulations or official
interpretations thereof.

“Federal Funds Effective Rate” means, for any day, the weighted average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by interbank Federal funds brokers, as published on
the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not
so published for any day that is a Business Day, the average (rounded upwards, if necessary, to the
next 1/100 of 1%) of the quotations for such day for such transactions received by the
Administrative Agent from three interbank Federal funds brokers of recognized standing selected by
it.

“Federal Funds Rate” means, for any day, a rate per annum equal to the greater of (a) the rate
of interest per annum which is the average of the rates on the offered side of the Federal funds
market quoted by three interbank Federal funds brokers at the approximate time of the relevant
Advance (for the first day of such Advance and until the next Business Day) or 12:00 noon (New York
City time) (for each subsequent Business Day until the next Business Day), selected by the
Administrative Agent, for dollar deposits in immediately available funds in an amount comparable to
the portion of such Advance made available by JPMorgan Chase Bank, N.A. and (b) one-month LIBOR (as
appearing for such first or subsequent Business Day on Reuters Screen LIBOR01 at 11:00 a.m., London
time).

“Foreign Bank” has the meaning set forth in Section 11.4(f).

“Funding Default” means the failure of any Bank to fund any portion of its Revolving Loans as
of the time required to be funded by it in accordance with Section 4.1 or the failure of
any Bank to acquire a participating interest in any Swingline Loan in accordance with Section 2.14,
regardless of the reason for any such failure; provided that, in the event that any such
Bank shall have failed to fund any portion of its Revolving Loans during the time period required
by Section 4.1 and the Administrative Agent shall have determined that such Bank used
commercially reasonable best efforts to fund within such time period despite such failure, such
Bank shall not be deemed to be a Defaulting Bank until such failure to fund has continued for one
Business Day; provided, further, that such Bank’s pro rata portion of the requested
Advance shall have been funded, in the interim, by one or more other Banks.

“GAAP” means generally accepted accounting principles in the United States as in effect from
time to time.

“GFX” means that Wholly-Owned Subsidiary of the Company known as the GFX Corporation.

“GFX Guaranty” means a Guaranty by the Company issued to a counterparty of GFX related to
over-the-counter foreign exchange transactions entered into by GFX, or a Guaranty by the Company
issued to a banking institution that has provided performance bond collateral, or met performance
bond or variation margin obligations on behalf of GFX, related to transactions in futures.

“GFX Loan” has the meaning set forth in Section 7.2.

“Gold Bullion” means “Gold Bullion” under and as defined in the Security and Pledge Agreement.

“Grantor” means “Grantor” under and as defined in the Security and Pledge Agreement.

“Guaranty” of a Person means any agreement by which such Person assumes, guarantees, endorses,
contingently agrees to purchase or provide funds for the payment of, or otherwise becomes liable
upon, the obligation of any other Person, or agrees to maintain the net worth or working capital or
other financial condition of any other Person or otherwise assures any creditor of such other
Person against loss, including, without limitation, any comfort letter, operating agreement or
take-or-pay contract and shall include, without limitation, the contingent liability of such Person
in connection with any application for a letter of credit; provided that the term “Guaranty” shall
not include endorsements for collection on deposit in the ordinary course of business.

“Holdings” has the meaning set forth in the preamble hereto.

“Increased Cost Notice” has the meaning set forth in Section 11.9(b).

“Indebtedness” of a Person means, without duplication, such Person’s (i) obligations for
borrowed money (other than a Daylight Overdraft), (ii) obligations representing the deferred
purchase price of property other than accounts payable arising in the ordinary course of such
Person’s business on terms customary in the trade, (iii) obligations, whether or not assumed,
secured by Liens or payable out of the proceeds or production from property (other than futures and
options contracts held in a cross-margin account at the Company) now or hereafter owned or acquired
by such Person, (iv) obligations which are evidenced by notes, acceptances, or other instruments,
(v) capitalized lease obligations, (vi) obligations for which such Person is obligated pursuant to
a Guaranty (other than the guarantee provided by the Clearing House to Clearing Members in the
ordinary course of business for their obligations to one another, or the GFX Guaranties) and (vii)
reimbursement obligations with respect to letters of credit; provided, however,
that “Indebtedness” shall not include (a) obligations of the Company to a Cross-Margining Clearing
Organization arising out of the liquidation of one or more pairs of cross-margin accounts held at
the Clearing House and at such Cross-Margining Clearing Organization, (b) obligations of the
Company to a pledgee arising out of the liquidation of one or more pairs of cross-margin pledge
accounts held at the Clearing House and at a Cross-Margining Clearing Organization and (c) with
respect to the transfer of positions and related margin from a suspended Clearing Member to another
Clearing Member, obligations of the Company to make a transfer in cash in respect of margin related
to such suspended Clearing Member’s positions.

“Indemnified Amounts” has the meaning set forth in Section 11.9(a).

“Indemnified Party” has the meaning set forth in Section 11.9(a).

“Indemnified Taxes” means Taxes other than Excluded Taxes.

“JPMorgan Securities Account Control Agreement” means any “JPMorgan Securities Account Control
Agreement” under and as defined in the Security and Pledge Agreement.

“JPMorgan Securities Intermediary” means “JPMorgan Securities Intermediary” under and as
defined in the Security and Pledge Agreement.

“Lien” means, with respect to an asset, any security interest, mortgage, pledge, lien, claim,
charge, encumbrance, title retention agreement, lessor’s interest under a capitalized lease or
analogous instrument, in, of or on such asset.

“Loan” means a Revolving Loan or a Swingline Loan.

“Loan Documents” means this Agreement, the Notes and the Collateral Documents.

“Loan Maturity Date” has the meaning set forth in Section 2.3(a).

“Market Value” means, as to any Eligible Asset at any time of determination, the value
determined by the Collateral Agent, the Company or any other entity (deemed acceptable for such
purpose by the Collateral Agent and the Company), as the case may be, in its usual and customary
manner by using the then most current pricing information with respect to such Eligible Asset
reasonably available to such Person from one or more pricing services selected by such Person in
its sole discretion. Notwithstanding the foregoing, in the event of a discrepancy between the
Collateral Agent’s or any such entity’s and the Company’s determination of Market Value, the
Collateral Agent’s or any such entity’s determination shall control.

“Material Adverse Effect” means a material adverse effect on the Company’s financial position
or the Company’s ability to perform its obligations in the ordinary course of business as they
become due.

“Member Attorney-in-Fact” means the Company in its capacity as attorney-in-fact for the
Clearing Members pursuant to the power of attorney authorized in CME Rule 817, CBOT Rule 817, NYMEX
Rule 817 or any other similar Rule, as applicable.

“Minimum Credit Rating” has the meaning set forth in Annex I.

“Money Fund Shares” has the meaning set forth in the Security and Pledge Agreement.

“Money Fund Control Agreement” has the meaning set forth in the Security and Pledge Agreement.

“Money Gridlock Situation” means (1) a disruption in the clearing and settlement operations of
the Clearing House due to temporary problems or delays in obtaining or making settlement payments
due to delays, overuse or other similar problems with the Fed Wire or similar money transfer
systems or (2) the failure of a Cross-Margining Clearing Organization to approve one or more
withdrawals by the Clearing House from a cross-margining bank account held either by the Company
and such Cross-Margining Clearing Organization jointly, or by a Clearing Member cross-margining its
positions at the Clearing House with its own or an Affiliate’s positions at such Cross-Margining
Clearing Organization.

“Moody’s” means Moody’s Investors Service, Inc.

“Multiemployer Plan” means a Plan maintained pursuant to a collective bargaining agreement or
any other arrangement to which the Company or any member of the Controlled Group is a party to
which more than one employer is obligated to make contributions.

“New Lending Office” has the meaning set forth in Section 11.4(f).

“Non Consenting Bank” has the meaning set forth in Section 2.12.

“Non-Terminating Bank” has the meaning set forth in Section 2.7.2.

“Note” has the meaning set forth in Section 3.5.

“Notice of Exclusive Control” means “Notice of Exclusive Control” under and as defined in the
Security and Pledge Agreement.

“Notice of Redesignation” has the meaning set forth in Section 2.13.

“NYMEX” means New York Mercantile Exchange, Inc., a Delaware corporation, together with its
successors and assigns.

“NYMEX Rules” means the rules of NYMEX, as amended and in effect from time to time and
includes any interpretations thereof.

“Obligations” means all unpaid principal of, and accrued and unpaid interest on, the Loans
(including, without limitation, interest accruing after the filing of any petition in bankruptcy,
or the commencement of any insolvency, reorganization or like proceeding, relating to the Company,
whether or not a claim for such interest is allowed in such proceeding), all accrued and unpaid
commitment fees and all other obligations of the Company to any Agent or any Bank arising under the
Loan Documents whether direct or indirect, absolute or contingent, due or to become due, or now
existing or hereafter incurred.

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

“Other Taxes” means any and all present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies arising from any payment made under any Loan
Document or from the execution, delivery or enforcement of, or otherwise with respect to, any Loan
Document, including any interest, additions to tax or penalties applicable thereto.

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

“Participant Register” has the meaning set forth in Section 11.1(b).

“PBGC” means the Pension Benefit Guaranty Corporation and its successors and assigns.

“Performance Bonds” means the assets made available to the Clearing House by each Clearing
Member as security for its obligations to the Clearing House pursuant to CME Rule 820, CBOT Rule
820, NYMEX Rule 820 or any other similar Rule, as applicable.

“Person” means any corporation, natural person, firm, joint venture, partnership, limited
liability company, trust, unincorporated organization, enterprise, government or any department or
agency of any government.

“Plan” means an employee pension benefit plan which is covered by Title IV of ERISA or subject
to the minimum funding standards under Section 412 of the Internal Revenue Code as to which the
Company or any Subsidiary may have any liability.

“Principal Bank” has the meaning set forth in Section 4.5.

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

“Regulation U” means Regulation U of the Board of Governors of the Federal Reserve System from
time to time in effect and shall include any successor or other regulation or official
interpretation of said Board of Governors relating to the extension of credit by banks for the
purpose of purchasing or carrying margin stocks applicable to member banks of the Federal Reserve
System.

“Related Parties” means, with respect to any specified Person, such Person’s Affiliates and
the respective directors, officers, employees, agents and advisors of such Person and such Person’s
Affiliates.

“Replacement Bank” has the meaning set forth in Section 2.12.

“Reportable Event” means a reportable event as defined in Section 4043 of ERISA and the
regulations issued under such Section, with respect to a Plan, excluding, however, such events as
to which the PBGC by regulation waived the requirement of Section 4043(a) of ERISA that it be
notified within 30 days of the occurrence of such event (provided that a failure to meet the
minimum funding standard of Section 412 of the Internal Revenue Code and of Section 302 of ERISA
shall be a reportable event regardless of the issuance of any such waivers in accordance with
Section 412(d) of the Internal Revenue Code).

“Requesting Bank” has the meaning set forth in Section 2.12.

“Required Banks” means Banks having more than 50% of the aggregate outstanding Commitments or,
after the Revolving Credit Termination Date, more than 50% of the aggregate Revolving Loans
outstanding (including funded participating interests in Swingline Loans).

“Revolving Credit Termination Date” means December 7, 2011 or any earlier date on which the
Aggregate Commitment is terminated pursuant to this Agreement.

“Revolving Loan” has the meaning set forth in Section 2.1.

“Rules” means the collective reference to the CME Rules, the CBOT Rules, the NYMEX Rules and
the rules of any other exchange which is qualified to clear trades through the Clearing House.

“S&P” means Standard & Poor’s Ratings Group, Inc.

“SDN List” has the meaning set forth in Section 11.1(g).

“Section” means a numbered section of this Agreement, unless another document is specifically
referenced.

“Secured Obligations” has the meaning set forth in the Security and Pledge Agreement.

“Securities Account” has the meaning set forth in the Security and Pledge Agreement.

“Securities Intermediary” has the meaning set forth in the Security and Pledge Agreement.

“Security and Pledge Agreement” means that certain Security and Pledge Agreement, dated as of
December 8, 2010, by and among the Clearing Members party thereto, the Company and the Collateral
Agent, substantially in the form of Exhibit G, as the same may be amended, restated,
supplemented or otherwise modified from time to time.

“Security Deposits” means the assets made available to the Clearing House by a Clearing Member
as security for its obligations to the Clearing House pursuant to CME Rule 816, CBOT Rule 816,
NYMEX Rule 816 or any other similar Rule.

“Settlement Loan” has the meaning set forth in Section 7.2.

“Single Employer Plan” means a Plan maintained by the Company or any member of the Controlled
Group for employees of the Company or any member of the Controlled Group.

“Sovereign Debt” means any Foreign Sovereign Debt referenced in Annex I.

“Subsidiary” means any corporation more than 50% of the outstanding voting securities of which
shall at the time be owned or controlled, directly or indirectly, by the Company or by one or more
of its Subsidiaries or by the Company and one or more of its Subsidiaries, or any similar business
organization which is so owned or controlled.

“Supermajority Banks” means Banks having 75% of the aggregate outstanding Commitments or,
after the Revolving Credit Termination Date, 75% of the aggregate Revolving Loans outstanding
(including funded participating interests in Swingline Loans).

“Surplus Funds” means funds in excess of those needed for normal operations in the Clearing
House Accounts and the General Accounts, each as referenced in CME Rule 802.B, CBOT Rule 802.B,
NYMEX Rule 802.B or any other similar Rule.

“Swingline Bank” means each Bank designated as such by the Company, with the consent of such
Bank, in a written or telephonic notice to the Administrative Agent for one or more borrowings of
Swingline Loans in an aggregate amount as so consented to by such Bank.

“Swingline Exposure” means, at any time, the aggregate principal amount of all Swingline Loans
outstanding at such time. The Swingline Exposure of any Bank at any time shall be the sum of (i)
if such Bank is a Swingline Bank, the aggregate principal amount of Swingline Loans made by such
Bank minus the aggregate principal amount of participating interests acquired and funded in
such Swingline Bank’s Swingline Loans by other Banks and (ii) the aggregate principal amount of
participating interests acquired and funded by such Bank in Swingline Loans of other Swingline
Banks.

“Swingline Loan” has the meaning set forth in Section 2.1.

“Taxes” means any and all present or future taxes, levies, imposts, duties, fees, deductions,
charges or withholdings imposed by any governmental authority, including any interest, additions to
tax or penalties applicable thereto.

“Terminated Bank” has the meaning set forth in Section 2.12.

“Terminated Commitment” has the meaning set forth in Section 2.7.2.

“Test Draw” means a nominal Advance made for the purpose of testing communication and draw
procedures.

“Unfunded Liabilities” means, (i) in the case of Single Employer Plans, the amount (if any) by
which the present value of all vested nonforfeitable benefits under such Plan exceeds the fair
market value of all Plan assets allocable to such benefits, all determined as of the then most
recent valuation date for such Plan, and (ii) in the case of Multiemployer Plans, the withdrawal
liability of the Company and Subsidiaries.

“Unmatured Default” means an event which but for the lapse of time or the giving of notice, or
both, would constitute a Default.

“UCC” means the Uniform Commercial Code as in effect from time to time in the state of
Illinois.

“US Bank” has the meaning set forth in Section 11.4(e).

“USA Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. No. 107-56,115 Stat. 272 (2001),
as amended.

“Withholding Agent” means the Company or the Administrative Agent.

“Wholly-Owned Subsidiary” means any Subsidiary all of the outstanding voting securities of
which shall at the time be owned or controlled, directly or indirectly, by the Company or one or
more Wholly-Owned Subsidiaries, or by the Company and one or more Wholly-Owned Subsidiaries, or any
similar business organization which is so owned or controlled.

Section 1.2 Other Definitional Provisions. All terms defined in this Agreement shall
be equally applicable to both the singular and plural forms of the defined terms. Unless the
context otherwise requires, any reference to any law, rule or regulation (including, without
limitation, any Rule) or agreement shall be construed as a reference to the same as it may from
time to time be amended, modified, supplemented or replaced. Unless the context requires
otherwise, any reference herein to any Person shall be construed to include such Person’s
successors and assigns. Notwithstanding any other provision contained herein, all computations of
amounts and ratios referred to in Section 7.7 shall be made without giving effect to any
election under Statement of Financial Accounting Standards 159 (or any other Financial Accounting
Standard having a similar result or effect) to value any Indebtedness or other liabilities of the
Company at “fair value” as defined therein.

ARTICLE II

THE CREDIT

Section 2.1 Revolving Credit Loans. Through and including the Revolving Credit
Termination Date, (a) each Bank severally agrees, on the terms and conditions set forth in this
Agreement, to make revolving loans (“Revolving Loans”) to the Company from time to time in amounts
not to exceed in the aggregate at any one time outstanding the amount of its Commitment and
(b) each Swingline Bank severally agrees, on the terms and conditions set forth in this Agreement,
to make swingline loans (“Swingline Loans”) to the Company as agreed by such Swingline Bank in
amounts not to exceed in the aggregate at any one time outstanding the amount as agreed by such
Swingline Bank; provided, however, that no Revolving Loans or Swingline Loans shall
be made if, after giving effect thereto, (A) the aggregate outstanding principal of all Loans would
exceed the Aggregate Commitment, (B) the aggregate outstanding principal of the Clearing Fund Pool
Loans for any applicable Clearing Business would exceed the Clearing Fund Borrowing Base therefor
or (C) the aggregate outstanding principal of all Company Pool Loans would exceed the Company
Borrowing Base. Subject to the terms of this Agreement, the Company may borrow, repay and reborrow
at any time through the Revolving Credit Termination Date. For the avoidance of doubt, (x) a
Clearing Fund Pool Loan and a Company Pool Loan can be a Revolving Loan or a Swingline Loan,
subject to the terms and conditions set forth in the Loan Documents and (y) the provision of
Swingline Loans by any Swingline Bank shall be in addition to, and shall not relieve such Bank from
its obligation to make Revolving Loans ratably in proportion to the amount of, its Commitment. The
obligations of any Bank to make Revolving Loans hereunder, and if its agreement to make Swingline
Loans has not previously ceased, the obligation (if any) of any Swingline Bank to make any
Swingline Loans, shall cease at 5:01 p.m. (New York City time) on the Revolving Credit Termination
Date.

Section 2.2 Ratable Loans. Each Advance hereunder shall consist of Revolving Loans
made from the several Banks, ratably in proportion to the amounts of their respective Commitments
on the date of such Advance, or of Swingline Loans made from the Swingline Banks then requested to
make Swingline Loans, ratably in proportion to the Swingline Loans requested to be made by them on
the date of such Advance. For the avoidance of doubt, the provision of Swingline Loans by any
Swingline Bank shall be in addition to, and shall not relieve such Bank from its obligation to make
Revolving Loans ratably in proportion to the amount of, its Commitment.

Section 2.3 Repayment of Advances.

(a) Each Advance and accrued and unpaid interest thereon shall be due and payable to the
Administrative Agent for the account of each Bank 30 days after such Advance is made or, if
earlier, the Revolving Credit Termination Date (any such date, a “Loan Maturity Date”), except in
the case of a Test Draw which shall be repaid pursuant to the provisions of Section 7.2
hereof and except as provided in Section 2.4.

(b) Each then outstanding Advance and accrued and unpaid interest thereon shall be due and
payable on the Revolving Credit Termination Date.

Section 2.4 Reborrowing of Advances. No Loan may be made hereunder to repay any
Advance without the consent of the Required Banks, except that Revolving Loans may be made to repay
any outstanding Swingline Loan (in which case such Revolving Loans and accrued and unpaid interest
thereon shall be due and payable to the Administrative Agent on the original Loan Maturity Date of
such Swingline Loan).

Section 2.5 Optional Principal Payments. The Company may prepay, without premium or
penalty, all or a portion of any outstanding Advance at any time up to 12:00 noon (New York City
time) on any Business Day; provided that interest shall accrue on such amount being prepaid
until the next Business Day if such payment is received after 12:00 noon (New York City time) on
the date of payment. Repayment of principal pursuant to this Section 2.5 shall be
accompanied by accrued and unpaid interest thereon.

Section 2.6 Mandatory Principal Payments. (a) On any day on which the aggregate
outstanding principal of the Clearing Fund Pool Loans for any applicable Clearing Business exceeds
the Clearing Fund Borrowing Base therefor (as determined pursuant to Section 10.8 after
giving effect to any redesignation pursuant to Section 2.13), the Company shall immediately
repay such excess or pledge to the Collateral Agent, for the benefit of the Banks, additional
Collateral in the applicable Clearing Fund Collateral Pool under the Collateral Documents as
necessary to cure such deficiency, without the necessity of any notice or demand.

(b) On any day on which the aggregate outstanding principal of the Company Pool Loans exceeds
the Company Borrowing Base (as determined pursuant to Section 10.8 after giving effect to
any redesignation pursuant to Section 2.13), the Company shall immediately repay such
excess or pledge to the Collateral Agent, for the benefit of the Banks, additional Collateral in
the Company Collateral Pool under the Collateral Documents as necessary to cure such deficiency,
without the necessity of any notice or demand.

(c) On any day on which the aggregate outstanding principal of the Clearing Fund Pool Loans
and the Company Pool Loans, taken together, exceeds the Aggregate Commitment, the Company shall
repay such excess without the necessity of any notice or demand.

Repayment of any such excess amount shall be applied first, to prepay outstanding Swingline
Loans, and second, to prepay outstanding Revolving Loans (in accordance with the applicable
Collateral Pools), in each case in the direct order of their respective maturities (or, in the
event that any such repayment is not sufficient to repay such excess amount in full, first,
to prepay outstanding Swingline Loans pro rata, and second, to prepay outstanding Revolving
Loans pro rata) and shall be accompanied by accrued and unpaid interest thereon.

Section 2.7 Adjustments of Commitments.

2.7.1 Adjustments by the Company. The Company may permanently reduce the Aggregate
Commitment, in whole or in part ratably among the Banks, in proportion to the amounts of their
respective Commitments at any time upon written notice to the Administrative Agent;
provided, however, that, (i) subject to Sections 2.7.2 or 2.12, the
amount of the Aggregate Commitment may not be reduced below the outstanding principal amount of the
Advance(s) and (ii) a notice of termination of the Aggregate Commitment delivered by the Company
may state that such notice is conditioned upon the effectiveness of other credit facilities, in
which case such notice may be revoked by the Company (by notice to the Administrative Agent on or
prior to the specified effective date) if such condition is not satisfied.

2.7.2 Adjustments by Banks for Accelerated Termination. If the Commitment of a Bank
hereunder is terminated pursuant to Section 2.12, the Company shall immediately notify
Administrative Agent in writing of such termination (“Accelerated Termination Notice”) and shall
state the amount of such terminating Bank’s Commitment (“Terminated Commitment”) in the Accelerated
Termination Notice. Administrative Agent shall promptly provide a copy of the Accelerated
Termination Notice to each remaining Bank (each a “Non-Terminating Bank”). Each Non-Terminating
Bank shall notify the Company, in writing, on or before the fifth Business Day (second Business Day
in the event of a termination pursuant to Section 2.12) after the date of the Accelerated
Termination Notice, if and by what amount such Bank is willing to increase its Commitment, which
amount shall be equal to all or some portion of the Terminated Commitment (each, a “2.7.2 Notice”).
Any Non-Terminating Bank that fails to so notify the Company on or before such fifth Business Day
(or second Business Day, as applicable), shall be deemed to have declined to increase its
Commitment. If offers to increase Commitments are made by two or more Non-Terminating Banks in an
aggregate amount greater than the aggregate amount of the Terminated Commitment, such
Non-Terminating Banks and the Company hereby agree that such offers shall be allocated as nearly as
possible in proportion to the aggregate amount of such offers, so that the aggregate amount thereof
will not exceed the amount of the Terminated Commitment. On or before the sixth Business Day (or
the third Business Day in the event of a termination pursuant to Section 2.12) after the date of
the Accelerated Termination Notice, the Company shall notify Administrative Agent and each
Non-Terminating Bank of the amount by which each such Non-Terminating Bank’s Commitment has been
increased, which amount shall not exceed the amount of such Non-Terminating Bank’s offer to
increase its Commitment in such Bank’s 2.7.2 Notice. All increases of Commitments by the Banks
under this Section 2.7.2 shall become effective on the terminating Bank’s Accelerated Termination
Date or on such later date on which the Company shall notify Administrative Agent and each
Non-Terminating Bank of the amount by which each such Non-Terminating Bank’s Commitment has been
increased in accordance with this Section 2.7.2 (“2.7.2 Effective Date”). The Company shall
promptly upon request deliver to each Bank whose Commitment has been increased pursuant to this
Section 2.7.2 a new Note reflecting such Bank’s new Commitment amount and each such Bank
shall promptly, after repayment to such Bank of such Bank’s ratable share of all Advances
outstanding on the 2.7.2 Effective Date, return to the Company such Bank’s superseded Note, as
applicable. On the 2.7.2 Effective Date, the Commitments shall be adjusted to reflect any such
increases.

Section 2.8 Fees.

(a) From the date hereof to and including the Revolving Credit Termination Date, the Company
agrees to pay to the Administrative Agent for the ratable account of the Banks a commitment fee of
10/100 of 1% per annum (on the basis of a year consisting of 360 days and for actual days elapsed)
on the daily amount of the excess of (i) the amount of the Aggregate Commitment over (ii) the
aggregate principal amount of all outstanding Advances of the Banks (excluding any Advances of
Swingline Loans, provided that in the event the participating interests in all Swingline
Loans outstanding on such date have been fully funded in accordance with Section 2.14, the
Swingline Exposure of such Bank shall not be excluded from such aggregate principal amount or, in
the event that such participating interests are not fully funded, only the participating interests
acquired by such Bank in accordance with Section 2.14 in respect of any such outstanding
Swingline Loans shall not be excluded from such aggregate principal amount), payable in arrears on
the last day of each fiscal quarter of the Company hereafter and on the Revolving Credit
Termination Date, commencing on the first of such dates to occur after the date hereof.

(b) The Company agrees to pay to the Administrative Agent, the Collateral Agent, for each of
their respective accounts, fees payable in the amounts and at the times separately agreed upon by
the Company.

(c) All fees payable hereunder shall be paid on the dates due, in immediately available funds,
to the Administrative Agent. The Administrative Agent shall distribute any such payments received
by it for the account of the Banks to the Banks in accordance with their respective pro rata shares
thereof.

Section 2.9 Collateral.

(a) The Obligations of the Company under this Agreement, the Loans and all other Loan
Documents shall be secured, in each case, by the applicable Collateral Pool, in accordance with the
Collateral Documents.

(b) The Company may from time to time (including, for the avoidance of doubt, after a Notice
of Exclusive Control has been delivered) direct the Collateral Agent to permit (and upon such
direction the Collateral Agent shall) the replacement of any Clearing Member Security or Company
Security credited to any Collateral Account or any BONY Securities Account or any Citibank
Securities Account or any Money Fund Share subject to the Lien of the Collateral Agent pursuant to
the Security and Pledge Agreement or any Gold Bullion subject to the Lien of the Collateral Agent
pursuant to the Bullion Security Agreement and not subject to a sale agreement with another
Clearing Member Security, Company Security or Money Fund Share, as the case may be, of a type
described in CME Rule 816 or CME Rule 820, CBOT Rule 816 or CBOT Rule 820 or NYMEX Rule 816 or
NYMEX Rule 820 or any other similar Rule, or withdraw any Clearing Member Security or Company
Security credited to any Collateral Account or any BONY Securities Account or any Citibank
Securities Account or any Money Fund Share subject to the Lien of the Collateral Agent pursuant to
the Security and Pledge Agreement or any Gold Bullion subject to the Lien of the Collateral Agent
pursuant to the Bullion Security Agreement; provided that after giving effect to such
replacement or withdrawal, (i) if such replacement or withdrawal is in respect of Clearing Member
Securities, Company Securities or Money Fund Shares in any Clearing Fund Collateral Pool, the
aggregate principal amount of all the applicable remaining Clearing Fund Pool Loans outstanding as
of the date of such replacement or withdrawal (after giving effect to any concurrent redesignation
pursuant to Section 2.13) shall not exceed the applicable Clearing Fund Borrowing Base as
of the date of such replacement or withdrawal (as determined by the Company and, if any Advances
are outstanding hereunder at the time of such replacement or withdrawal, confirmed to the Company
by the Collateral Agent (with the Collateral Agent’s determination controlling in the event of any
discrepancy)) and (ii) if such replacement or withdrawal is in respect of Company Securities in the
Company Collateral Pool, the aggregate principal amount of all remaining Company Pool Loans
(together with, if the aggregate Clearing Fund Pool Loans then exceed the aggregate Clearing Fund
Borrowing Bases, such aggregate excess Clearing Fund Pool Loans) outstanding as of the date of such
replacement or withdrawal (after giving effect to any concurrent redesignation pursuant to
Section 2.13) shall not exceed the Company Borrowing Base as of the date of such
replacement or withdrawal (as determined by the Company and, if any Advances are outstanding
hereunder at the time of such replacement or withdrawal, confirmed to the Company by the Collateral
Agent (with the Collateral Agent’s determination controlling in the event of any discrepancy)).

(c) The Company may from time to time (including, for the avoidance of doubt, after a Notice
of Exclusive Control has been delivered) direct the Collateral Agent, the JPMorgan Securities
Intermediary, the BONY Securities Intermediary, the Citibank Securities Intermediary or any Money
Fund Issuer or its transfer or servicing agent to liquidate (and the Collateral Agent, the JPMorgan
Securities Intermediary, the BONY Securities Intermediary or the Citibank Securities Intermediary
or such Money Fund Issuer or its transfer or servicing agent, as the case may be, shall liquidate
in market-based transactions as directed by the Company) any Clearing Member Securities or Company
Securities credited to any Collateral Account, any Clearing Member Securities credited to any BONY
Securities Account, any Clearing Member Securities credited to any Citibank Securities Account or
any Money Fund Shares subject to the Lien of the Collateral Agent pursuant to the Security and
Pledge Agreement, or any Gold Bullion subject to the Lien of the Collateral Agent pursuant to the
Bullion Security Agreement, as the case may be, and apply the proceeds thereof and any other
amounts credited to any Collateral Account, any BONY Securities Account, any Citibank Securities
Account or credited in respect of such Money Fund Shares to repay any outstanding Loans;
provided that, (i) (x) if such liquidation and repayment is in respect of Clearing Member
Securities, Company Securities or Money Fund Shares in any Clearing Fund Collateral Pool, the
aggregate principal amount of the remaining applicable Clearing Fund Pool Loans outstanding (after
giving effect to any concurrent redesignation pursuant to Section 2.13) shall not exceed
the applicable Clearing Fund Borrowing Base as of the date of such liquidation and (y) if such
liquidation and repayment is in respect of Company Securities in the Company Collateral Pool, the
aggregate principal amount of all remaining Company Pool Loans (together with, if the Clearing Fund
Pool Loans related to any Clearing Business then exceed the Clearing Fund Borrowing Base for such
Clearing Business, such excess Clearing Fund Pool Loans and any other such excess Clearing Fund
Pool Loans for any other Clearing Business) outstanding (after giving effect to any concurrent
redesignation pursuant to Section 2.13) shall not exceed the Company Borrowing Base as of
the date of such liquidation (unless, in either case, the Collateral Agent otherwise determines
that any such liquidation is in the best interests of the Banks, after giving effect to any such
liquidation and the repayment of Loans pursuant thereto, in which case any such liquidation shall
be permitted notwithstanding anything to the contrary in this clause (i)) and (ii) the Company
shall reimburse the Collateral Agent, the JPMorgan Securities Intermediary, the BONY Securities
Intermediary, the Citibank Securities Intermediary or the Money Fund Issuer or its transfer or
servicing agent, as the case may be, for any and all reasonable costs, internal charges and
out-of-pocket expenses paid or incurred by such Person in connection with any such liquidation.

(d) For ease of administration, when the Company is including Sovereign Debt in any Collateral
Pool, the Administrative Agent and the Collateral Agent may require the Company to, or may
themselves, designate a specific aggregate principal amount of the Loans to be secured by such
Collateral Pool as being deemed for purposes of this Section 2.9(d) to be notionally
allocated to such Sovereign Debt (and not to the other Eligible Assets in such Collateral Pool), in
either case by giving notice thereof to the Company. Upon such designation becoming effective (but
subject to any redesignation as contemplated below), the remaining aggregate principal amount of
the Loans to be secured by such Collateral Pool shall be deemed for purposes of this
Section 2.9(d) to be notionally allocated only to the other Eligible Assets in such
Collateral Pool. While such designation is in effect (but subject to any such redesignation as
contemplated below), the provisions of Section 2.6(a) or (b), as the case may be, the other
paragraphs of this Section 2.9, Section 2.13 and Section 10.8 shall be read
as though such Collateral Pool were two separate Collateral Pools, one including only such
Sovereign Debt and the other including only such other Eligible Assets. At any time after such
designation becomes effective, the Company, or the Administrative Agent and the Collateral Agent,
may redesignate, by notice to the other, all or any part of the aggregate principal amount of the
Loans notionally allocated to such Sovereign Debt as being allocated to such other Eligible Assets,
or vice versa, provided that after giving effect to such redesignation no prepayment would be
required under Section 2.6(a) or (b) as read as contemplated above on account of the
aggregate principal amount of such Loans notionally allocated to either such Sovereign Debt or such
other Eligible Assets. Notwithstanding the foregoing, all of the Loans relating to such Collateral
Pool shall be secured by all of the Eligible Assets (including such Sovereign Debt) in such
Collateral Pool at all times.

(e) Upon any replacement, liquidation or withdrawal of Clearing Member Securities, Company
Securities or Money Fund Shares in accordance with the Collateral Documents and pursuant to
subsection (b) or (c) above, the Lien of the Collateral Agent on the replaced,
liquidated or withdrawn Clearing Member Securities, Company Securities or Money Fund Shares, as
applicable, shall be deemed released without further consent of the Collateral Agent or any Bank.

Section 2.10 Additional Credit Facility.

(a) The Company may, at its option and without the consent of the Banks, at any time and from
time to time, seek to increase the Aggregate Commitment by up to an aggregate amount of
$1,000,000,000 (resulting in a maximum Aggregate Commitment of $2,000,000,000) upon written notice
to the Administrative Agent and the Collateral Agent, which notice shall specify the amount of any
such increase and shall be delivered at a time when no Default or Unmatured Default has occurred
and is continuing. The Company may, in its sole discretion, offer the increase in the Aggregate
Commitment to other lenders or entities reasonably acceptable to the Administrative Agent and the
Company. No increase in the Aggregate Commitment shall become effective until the existing or new
Banks extending such new or increased Commitment amount and the Company shall have delivered to the
Administrative Agent a document reasonably satisfactory to the Administrative Agent and the Company
pursuant to which any such existing Bank states the amount of its Commitment increase, any such new
Bank states its Commitment amount and agrees to assume and accept the obligations and rights of a
Bank hereunder and the Company accepts such new or increased Commitments. The Banks (new or
existing) shall accept an assignment from the existing Banks, and the existing Banks shall make an
assignment to the new or existing Banks accepting a new or increased Commitment, of a direct
interest in each then outstanding Advance such that, after giving effect thereto, all credit
exposure hereunder is held ratably by the Banks in proportion to their respective Commitments.
Assignments pursuant to the preceding sentence shall be made in exchange for the principal amount
assigned plus accrued and unpaid interest and accrued and unpaid facility fees. Any such increase
of the Aggregate Commitment shall be subject to receipt by the Administrative Agent from the
Company of such supplemental opinions, resolutions, certificates and other documents as the
Administrative Agent may reasonably request.

(b) In addition to the foregoing, to the extent that the Company has reduced the Aggregate
Commitment with respect to any or all of the Banks (including pursuant to Section 2.12),
the Company may, from time to time, increase any portion of any such Bank’s respective Commitment,
with such Bank’s consent, in an amount up to the amount so reduced, provided that each such
Bank shall accept an assignment from the existing Banks, and the existing Banks shall make an
assignment to each such Bank of a direct interest in each then outstanding Advance such that, after
giving effect thereto, all credit exposure hereunder is held ratably by the Banks in proportion to
their respective Commitments. The documents evidencing any such increase in the Commitment shall be
in a form reasonably acceptable to the Company and the Administrative Agent.

Section 2.11 Defaulting Banks. Anything contained herein to the contrary
notwithstanding, in the event that any Bank becomes a Defaulting Bank, then for so long as such
Bank is a Defaulting Bank (a) such Defaulting Bank shall be deemed not to be a “Bank” for purposes
of voting on any matters (including the granting of any consents or waivers) with respect to any of
the Loan Documents, provided that any amendment, waiver or modification (i) requiring the
consent of all Banks to the extent such Defaulting Bank is directly affected differently than all
of the other Banks or (ii) in the case of any amendment pursuant to Sections
9.2(a)(ii), (iii), (iv), (v) or (vi), which directly
affects such Defaulting Bank differently than other directly affected Banks, shall require the
consent of such Defaulting Bank; (b) any prepayment of any outstanding Advance shall, if the
Company so directs at the time of making such prepayment, be applied to the Loans and Swingline
Exposures of other Banks and (c) such Defaulting Bank’s Commitment and outstanding Loans shall be
excluded for purposes of calculating the commitment fee payable to other Banks pursuant to
Section 2.8 and such Defaulting Bank shall not be entitled to receive any commitment fee
pursuant to Section 2.8 with respect to such Defaulting Bank’s Commitment. Notwithstanding
the foregoing, no Commitment of any Bank shall be increased or, except as provided in Section
2.12, otherwise affected, and, except as otherwise expressly provided in this Section
2.11, performance by the Company of its obligations hereunder and the other Loan Documents
shall not be excused or otherwise modified as a result of any Funding Default or the operation of
this Section 2.11. The rights and remedies against a Defaulting Bank under this Section
2.11 are in addition to other rights and remedies which the Company may have against such
Defaulting Bank with respect to any Funding Default and which the Administrative Agent or any Bank
may have against such Defaulting Bank with respect to any Funding Default.

Section 2.12 Removal or Replacement of a Bank. Anything contained herein to the
contrary notwithstanding, in the event that: (a) any Bank shall become a Defaulting Bank and such
Defaulting Bank shall immediately fail to cure the default as a result of which it has become a
Defaulting Bank; (b) in connection with any proposed amendment, modification, termination, waiver
or consent with respect to any of the provisions hereof as contemplated by Section 9.2(a),
the consent of the Required Banks shall have been obtained but the consent of one or more of the
other Banks (each a “Non Consenting Bank”) whose consent is required shall not have been obtained
or (c) any Bank requests reimbursement for amounts owing pursuant to Section 11.4(a) or
11.9(b) (each a “Requesting Bank”); then, with respect to each such Defaulting Bank, Non
Consenting Bank or Requesting Bank (the “Terminated Bank”), the Company may, by giving written
notice to the Administrative Agent and any Terminated Bank of its election to do so, or, with the
consent of the Company, the Administrative Agent may, by giving notice to any Terminated Bank of
its election to do so, (1) elect to cause such Terminated Bank (and such Terminated Bank hereby
irrevocably agrees) to assign its outstanding Loans and its Commitments, if any, in full to one or
more Assignees (each a “Replacement Bank”) in accordance with applicable law and the provisions of
Section 11.1(c) and the Company shall pay the fees, if any, payable thereunder in
connection with any such assignment from a Non-Consenting Bank or Requesting Bank and the
Defaulting Bank shall pay the fees, if any, payable thereunder in connection with any such
assignment from such Defaulting Bank; provided, (i) (A) on the date of such assignment, the
Replacement Bank shall pay to Terminated Bank the aggregate principal amount of all outstanding
Loans and Swingline Exposure of the Terminated Bank and, subject to clauses (B) and (C) hereof, all
other Obligations owing to such Terminated Bank under this Agreement, (B) on the date any such fees
shall be due as provided in Section 2.8, subject to Section 2.11, the Replacement
Bank (or the Administrative Agent) shall pay all accrued, but theretofore unpaid fees owing to such
Terminated Bank and (C) on the date any accrued interest shall be due as provided in Section
2.3, the Replacement Bank (or the Administrative Agent) shall pay all accrued, but theretofore
unpaid interest owing to such Terminated Bank and (ii) in the event such Terminated Bank is a Non
Consenting Bank, each Replacement Bank shall consent, at the time of such assignment, to such
proposed amendment, modification, termination, waiver or consent or (2) so long as no Swingline
Loan is outstanding in respect of which such Bank may be required to acquire a participating
interest pursuant to Section 2.14, elect to terminate such Bank’s Commitment and
obligations to make Loans and acquire such participating interest in Swingline Loans hereunder,
provided that the Company shall send written notice to such Bank specifying a date at least 3
Business Days after the date of such notice on which such Bank’s Commitment and obligation to make
Loans and acquire participating interests in Swingline Loans hereunder shall be terminated. Upon
the prepayment of all amounts owing to any Terminated Bank and the termination of such Terminated
Bank’s Commitments, if any, such Terminated Bank shall no longer constitute a “Bank” for purposes
hereof; provided, that such Terminated Bank shall continue to be entitled to the benefits
of Sections 2.14, 3.4(b), 4.3, 11.4, 11.9, 12.1(b)
and 12.1(c) (in each case, to the extent such obligations arose prior to the effective date
of the Assignment Agreement applicable thereto). Each Bank agrees that if the Company (or, with the
consent of the Company, the Administrative Agent) exercises its option hereunder to cause an
assignment by such Bank as a Terminated Bank, the Administrative Agent may execute and deliver such
documentation as may be required to give effect to an assignment in accordance with Section
11.1(c) on behalf of a Non Consenting Bank or Terminated Bank and any such documentation so
executed by the Administrative Agent shall be effective for purposes of documenting an assignment
pursuant to Section 11.1(c).

Section 2.13 Redesignation of Settlement Loans. During any Business Day on which
Settlement Loans remain outstanding, the Company may deliver to the Collateral Agent a notice,
substantially in the form of Exhibit K (a “Notice of Redesignation”), pursuant to which the Company
may redesignate (i) one or more Settlement Loans previously designated as Company Pool Loans as
Clearing Fund Pool Loans for any Clearing Business or (ii) one or more Settlement Loans previously
designated as Clearing Fund Pool Loans for any Clearing Business as Company Pool Loans and, if such
Settlement Loans are being redesignated as Clearing Fund Pool Loans, shall specify the applicable
Clearing Business; provided, that (x) if such redesignation is in respect of a Settlement
Loan to be redesignated as a Clearing Fund Pool Loan, the aggregate principal amount of all the
applicable Clearing Fund Pool Loans outstanding as of the date of such redesignation, after giving
effect to such redesignation, shall not exceed the applicable Clearing Fund Borrowing Base (as
determined by the Company and confirmed to the Company by the Collateral Agent (with the Collateral
Agent’s determination controlling in the event of any discrepancy)) and (y) if such redesignation
is in respect of a Settlement Loan to be redesignated as a Company Pool Loan, the aggregate
principal amount of all Company Pool Loans outstanding as of the date of such redesignation, after
giving effect to such redesignation, shall not exceed the Company Borrowing Base (as determined by
the Company and confirmed to the Company by the Collateral Agent (with the Collateral Agent’s
determination controlling in the event of any discrepancy)). Upon any such confirmation by the
Collateral Agent, the related redesignation shall become effective.

Section 2.14 Participations in Swingline Loans. Each Swingline Bank shall provide
written notice to the Administrative Agent of any outstanding Swingline Loan and the Banks shall
acquire participating interests in any outstanding Swingline Loan pro rata in accordance with their
respective Commitments (in the case of a Swingline Loan that is not a Covering Swingline Loan) or
pro rata among the Banks that failed to timely make available the Revolving Loans covered by such
Swingline Loan (in the case of a Covering Swingline Loan) not later than 12:00 noon (New York City
time) on the third Business Day following any Business Day on which a Swingline Loan is made by
such Swingline Bank. Promptly upon receipt of such notice, the Administrative Agent will give
notice thereof to each applicable Bank, specifying in such notice such Bank’s share of such
Swingline Loan. Each Bank hereby absolutely and unconditionally agrees, upon receipt of notice as
provided above, to pay to the Administrative Agent, for the account of the Swingline Bank, such
Bank’s share of such Swingline Loan. Each Bank acknowledges and agrees that its obligation to
acquire participating interests in Swingline Loans pursuant to this paragraph is absolute and
unconditional and shall not be affected by any circumstance whatsoever, including the occurrence
and continuance of a Default or reduction or termination of the Commitments or the Aggregate
Commitment, and that each such payment shall be made without any offset, abatement, withholding or
reduction whatsoever. Each Bank shall comply with its obligation under this Section in the same
manner as provided in Section 4.1 with respect to Loans made by such Bank (and
Section 4.2 shall apply, mutatis mutandis, to the payment obligations of the Banks), and
the Administrative Agent shall promptly pay to such Swingline Bank the amounts so received by it
from the Banks. The Administrative Agent shall notify the Company of any participating interest in
any Swingline Loan acquired pursuant to this Section. Any amounts received from the Company (or
other party on behalf of the Company) in respect of a Swingline Loan after receipt by the Swingline
Bank of the proceeds of a sale of participating interests therein shall be promptly remitted
through the Administrative Agent to the Banks that shall have made their payments pursuant to this
Section and to the applicable Swingline Bank, as their interests may appear; provided that any such
payment so remitted shall be repaid to the Administrative Agent, if and to the extent such payment
is required to be refunded to the Company for any reason. The purchase of participating interests
in a Swingline Loan pursuant to this paragraph shall not relieve the Company of any default in the
payment thereof.

ARTICLE III

FUNDING THE CREDITS

Section 3.1 Method of Borrowing.

(a) To request an Advance hereunder, the Company shall (i) give notification, by telephone
(which notification shall be made on the Borrowing Date, may be made either before or after
delivery of the Advance Request referred to in clause (ii) below and shall be subject to
Section 3.5(b)), to the Administrative Agent that the Advance Request has been or will be
delivered to the Administrative Agent and, if not yet delivered, the amount of the Advance that
will be requested in such Advance Request (such telephone notification, the “Advance Request
Confirmation”), (ii) deliver, by facsimile and by email (or, if the Advance Request Confirmation
shall have been made prior to the Advance Notice, by facsimile or email), not later than 4:45 p.m.
(New York City time) on any Business Day, (A) a notice to the Administrative Agent of such request
for Revolving Loans or Swingline Loans in substantially the form of Exhibit I attached
hereto (an “Advance Request”), which Advance Request shall be delivered to the Investment Bank Loan
Operations – North America department of the Administrative Agent and shall specify whether the
requested Loans are being designated as Settlement Loans, as GFX Loans or as CMECE Loans and, in
the case of Settlement Loans, whether the Settlement Loans are being designated as Clearing Fund
Pool Loans or Company Pool Loans for the purpose of calculations relating to the Borrowing Base
and, if the Settlement Loans are being designated as Clearing Fund Pool Loans, specifying the
applicable Clearing Business, and (B) a notice to the Collateral Agent in substantially the form of
Exhibit J attached hereto detailing the Collateral pledged by the Company to secure the
requested Loans (a “Collateral Notice”), which Collateral Notice shall be delivered to the
Investment Bank Loan Operations – North America and Treasury & Securities Services – Wall Street
Support departments of the Collateral Agent, and (iii) give separate notification, by telephone, to
the Collateral Agent that the Collateral Notice has been delivered to the Collateral Agent.
Concurrently with, or shortly following, or in lieu of, its making an Advance Request in respect of
Revolving Loans, the Company may also make an Advance Request in respect of Swingline Loans. An
Advance Request in respect of Swingline Loans shall specify the Swingline Banks being requested to
make Swingline Loans and the respective amounts thereof and, if such Swingline Loans are being
requested on the same day as any Revolving Loans, whether such Swingline Loans are to cover for any
Revolving Loans not made available to the Administrative Agent in a timely manner (any such
Swingline Loan, a “Covering Swingline Loan”) or are simply being requested in addition to such
Revolving Loans. If any Swingline Loans being requested are Covering Swingline Loans, the
Administrative Agent shall first, use the proceeds of the Revolving Loans timely made
available to it to fund the requested Advance as provided in Section 3.1(b), and
second, fund the remaining portion of the requested Advance, if any, with the proceeds made
available to it in respect of one or more Covering Swingline Loans, subject to Section
3.1(c). For the avoidance of doubt, the provision of Swingline Loans by any Swingline Bank
shall be in addition to, and shall not relieve such Bank from its obligation to make Revolving
Loans ratably in proportion to the amount of, its Commitment.

(b) Immediately following the earlier of an Advance Request Confirmation or the delivery of an
Advance Request in accordance with Section 3.1(a), the Administrative Agent shall notify
each Bank in writing, by facsimile or email, of the Company’s request for an Advance and such
Bank’s pro rata share of the Advance (any such notice, a “Bank Notice”) and the Administrative
Agent and the Collateral Agent shall, as applicable, subject to the satisfaction of the applicable
conditions precedent set forth in Article V, not later than 5:45 p.m. (New York City time)
(i) determine the Market Value of the applicable Clearing Fund Collateral Pool or the Company
Collateral Pool, as applicable, and to determine the corresponding Borrowing Base, (ii) notify the
Company, by telephone, at the contact information provided in the Advance Request, of the
Collateral Agent’s determination of the Market Value of the applicable Collateral Pool and the
corresponding Borrowing Base and whether such applicable Collateral Pool is sufficient for the
corresponding Borrowing Base to collateralize the Company’s requested Advance (after giving effect
to any concurrent redesignation pursuant to Section 2.13) and (iii) using the proceeds
provided by the Banks pursuant to Section 4.1, or any additional proceeds that may be
provided on behalf of the Banks by the Administrative Agent as provided in this Agreement, make
available to the Company in immediately available funds the requested Advance (or, if such
Collateral Pool is not then sufficient to collateralize the requested Advance as required hereby,
the portion thereof that is so collateralized by such Collateral Pool). In the event that the
applicable Collateral Pool is not sufficient to so collateralize the requested Advance, the
Collateral Agent shall notify the Company thereof and the Company may post additional Collateral to
the applicable Collateral Pool within one Business Day of such notice (including, without
limitation, by withdrawing any Company Security in accordance with Section 2.9(b) and
posting such Company Security as additional Collateral with respect to the applicable Clearing Fund
Collateral Pool); upon the posting of such additional Collateral to the applicable Collateral Pool,
the Administrative Agent shall make available to the Company a corresponding amount of the funds
deposited by the Banks in accordance with Section 4.1. In the event that the Company fails
to post sufficient additional Collateral to the applicable Collateral Pool to collateralize the
requested Advance as required hereby within one Business Day following such notice from the
Collateral Agent of the insufficiency of the applicable Collateral Pool, the Administrative Agent
shall return any excess proceeds provided by the Banks to the Banks ratably in accordance with the
amounts funded by each Bank.

(c) If an Advance Request is made in respect of Covering Swingline Loans, (i) the portion
thereof made available to the Administrative Agent and not required to cover for Revolving Loans
shall be promptly returned to the applicable Swingline Banks on a pro rata basis in accordance with
the respective amounts made available by such Swingline Banks and (ii) the proceeds of Revolving
Loans subsequently made available to the Administrative Agent shall be distributed to such
Swingline Banks as a prepayment of the principal of such Covering Swingline Loans, with such
distribution to be made to such Swingline Banks on such a pro rata basis. Any Covering Swingline
Loans made available to the Administrative Agent, whether or not subsequently made available to the
Company, shall earn interest, payable by the Company, until the next Business Day at the Federal
Funds Rate plus 1.25% per annum. Each Swingline Lender that makes any Covering Swingline Loan
which is not made available to the Company and is promptly returned as contemplated above shall be
entitled to compensation for such Covering Swingline Loan from the Company as determined by such
Swingline Lender in accordance with its customary practices (provided that any such
compensation shall not exceed the interest payable in respect of any Advance until the next
Business Day pursuant to Section 3.3); and any Covering Swingline Loan which is made
available to the Company shall earn interest, payable by the Company, in accordance with
Section 3.3.

Section 3.2 Minimum Amount of Each Advance. Except in the case of a Test Draw, each
Advance shall be in the minimum amount of $10,000,000 (and in integral multiples of $250,000 if in
excess thereof), provided, however, that any Advance may be in the aggregate amount
of the Excess Availability, as applicable to such Advance.

Section 3.3 Interest. Prior to its Loan Maturity Date, each Advance shall bear
interest at the Federal Funds Rate plus 1.25% per annum. Any Advance or other Obligation not paid
when due shall bear interest thereafter until paid in full at a rate per annum equal to the Federal
Funds Rate plus 3.25% per annum.

Section 3.4 Method of Payment.

(a) All payments (including prepayments) of principal, interest, commitment fees and other
amounts payable hereunder by the Company shall, subject to Section 11.4, be made without
setoff or counterclaim in immediately available funds to the Administrative Agent, for the benefit
of the Banks, at the address specified pursuant to Article XIII at any time up to 12:00
noon, New York City time, on the date when due. Any amount received after such time on any date
shall be deemed to have been received on the next succeeding Business Day for purposes of
calculating interest thereon. If any payment hereunder shall be due on a day that is not a
Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in
the case of any payment accruing interest, interest thereon shall be payable for the period of such
extension. All payments hereunder shall be made in lawful money of the United States of America.

(b) Except with respect to payments made to a Bank whose Commitment is terminated pursuant to
Section 2.12, (A) all payments of principal of, and interest on, any Advance shall be made
by the Administrative Agent to the Banks ratably among the Banks, in proportion to the outstanding
principal amount of their respective Loans constituting part of such Advance and (B) all payments
of commitment fees and other amounts payable hereunder by the Administrative Agent to the Banks
shall be made to the Banks ratably among the Banks, in proportion to the amounts thereof owing to
them. If at any time insufficient funds are received by and available to the Administrative Agent
to pay fully all amounts of principal, interest and fees then due hereunder, such funds shall be
applied first, towards payment of all Obligations in respect of Swingline Loans,
second, towards payment of interest and fees then due in respect of Revolving Loans,
ratably among the parties entitled thereto in accordance with the amounts of interest and fees then
due to such parties, and third, towards payment of principal then due in respect of
Revolving Loans, ratably among the parties entitled thereto in accordance with the amounts of
principal then due to such parties.

(c) If any Bank shall fail to make any payment required to be made by it pursuant to
Section 2.14, 4.1 or 4.3(b), then the Administrative Agent may, in its
discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received
by the Administrative Agent for the account of such Bank to satisfy such Bank’s obligations under
such Sections until all such unsatisfied obligations are fully paid, but any such application shall
not affect the discharge of the Company of its obligations in respect of which such amounts were
received.

Section 3.5 Notes; Telephonic Notices. (a) Each Bank shall maintain in accordance
with its usual and customary practices an account or accounts evidencing the Loans made by such
Bank from time to time, including the amounts of principal and interest payable and paid to such
Bank from time to time under this Agreement and the Loans. Any Bank may request that Loans made by
it be evidenced by one or more promissory notes (any such promissory note, a “Note”), and in such
event, the Company shall prepare, execute and deliver to such Bank a Note payable to such Bank or
to such Bank and its registered assigns substantially in the form of Exhibit A hereto.
Each Bank is hereby authorized to record the principal amount of each of its Loans and each
repayment on the schedule attached to its applicable Note, as applicable, or in its books and
records; provided, however, that the failure to so record shall not affect the
Company’s obligations in respect of any Loan. The Administrative Agent shall also maintain
accounts in which it will record (i) the amount of each Loan made hereunder and the information
with respect to such Loan described in Section 3.1(a)(ii)(A), (ii) the amount of any
principal or interest due and payable or to become due and payable from the Company to each Bank
hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder from the
Company and each Bank’s share thereof. The entries maintained in the accounts maintained by the
Banks and the Administrative Agent pursuant to this Section shall be prima facie evidence (absent
manifest error) of the existence and amounts of the Obligations therein recorded; provided,
however, that the failure of the Administrative Agent or any Bank to maintain such accounts
or any error therein shall not in any manner affect the obligation of the Company to repay the
Loans in accordance with their terms. In the event the records maintained by a Bank conflict with
the records maintained by the Administrative Agent, the records maintained by the Administrative
Agent shall control.

(b) The Company hereby authorizes the Administrative Agent to extend Advances (using the
proceeds provided by the Banks pursuant to Section 4.1 and otherwise in accordance with
Section 3.1) based on telephonic notices made by any Persons the Administrative Agent in
good faith believes to be acting on behalf of the Company.

Section 3.6 Interest Payment Dates; Interest Basis. Interest accrued on each Advance
prior to the applicable Loan Maturity Date shall be payable to the Administrative Agent for the
benefit of the applicable Banks on the date on which the Advance is paid or prepaid, whether due to
acceleration or otherwise. Interest accrued on each Advance after its applicable Loan Maturity Date
shall be payable on demand. Interest and commitment fees shall be calculated for actual days
elapsed on the basis of a 360-day year.

ARTICLE IV

ADMINISTRATIVE AGENT

Section 4.1 Notice to and Payment by the Banks. Promptly following the delivery of
any Bank Notice (and in any event, within 60 minutes following any delivery thereof, provided that
any delivery thereof shall occur by 5:00 p.m., New York City time), each Bank shall deposit in the
designated account of the Administrative Agent in immediately available funds the proceeds of such
Bank’s pro rata share of the requested Advance.

Section 4.2 Payment by Banks to the Administrative Agent.

(a) Unless the Administrative Agent shall have been notified by a Bank that such Bank does not
intend to make available its share of an Advance, the Administrative Agent may assume that such
Bank has made or will make such payment and the Administrative Agent may in reliance upon such
assumption (but shall not be required to) make available to the Company the proceeds of the Loan to
be made by such Bank and, if any Bank has not in fact made such payment to the Administrative
Agent, such Bank shall, on demand, pay to the Administrative Agent the amount made available to the
Company attributable to such Bank together with interest thereon in respect of each day during the
period commencing on the date such amount was made available to the Company and ending on (but
excluding) the date such Bank pays such amount to the Administrative Agent at a rate per annum
equal to: (i) from the date the related advance was made by the Administrative Agent to the date
two (2) Business Days after payment by such Bank is due hereunder, the Federal Funds Effective Rate
for each such day and (ii) from the date two (2) Business Days after the date such payment is due
from such Bank to the date such payment is made by such Bank, the Federal Funds Rate in effect for
each such day plus 1.25%. If such amount is not received from such Bank by the Administrative Agent
immediately upon demand, the Company will, on demand, repay to the Administrative Agent the
proceeds of the Loan attributable to such Bank with interest thereon at a rate per annum equal to
the interest rate applicable to the relevant Loan.

(b) The failure of any Bank to make a payment to the Administrative Agent of the proceeds of
the Loan to be made by such Bank shall not relieve any other Bank of its obligation hereunder to
make payment to the Administrative Agent of the proceeds of a Loan, but no Bank shall be
responsible for the failure of any other Bank to make the payment required to be made by such other
Bank.

Section 4.3 Distribution of Payments.

(a) Whenever the Administrative Agent receives from, or on behalf of the Company, or any other
person or party, a payment of principal, interest or commitment fees or other amount payable
hereunder with respect to any of which the applicable Banks are entitled to receive a share, the
Administrative Agent shall promptly pay to such Banks, in lawful money of the United States of
America, the amount due each of such Banks as determined pursuant to this Agreement;
provided, however, that the amount of such distribution shall be adjusted to the
extent that amounts are owed by any Bank to the Administrative Agent or as otherwise provided by
Sections 2.14, 3.4(c) or 4.2 or subsection (b) hereof. If any
payment of principal, interest or commitment fees or other amount payable in connection with the
Loans is received from or on behalf of the Company by the Administrative Agent before 12:00 noon
(New York City time) on any Business Day, the Administrative Agent shall use reasonable efforts to
wire transfer the appropriate portion of the same to the applicable Banks that same Business Day,
but in any event shall wire the same to each of such Banks before the end of the next Business Day.

(b) Unless the Administrative Agent shall have received notice from the Company prior to the
date on which any payment is due to the Administrative Agent for the account of the Banks hereunder
that the Company will not make such payment, the Administrative Agent may assume that the Company
has made such payment on such date in accordance herewith and may (but shall not be required to),
in reliance upon such assumption, distribute to the Banks the amount due. In such event, if the
Company has not in fact made such payment, then each of the Banks severally agrees to repay to the
Administrative Agent forthwith on demand the amount so distributed to such Bank together with
interest thereon in respect of each day during the period commencing on the Business Day
immediately following the date of such demand and ending on (but excluding) the date of payment to
the Administrative Agent, at a rate per annum equal to: (i) from the Business Day immediately
following the date of such demand to the date two (2) Business Days after such date, the Federal
Funds Effective Rate for each such day and (ii) from the date two (2) Business Days after the
Business Day immediately following such demand to the date such payment is made by such Bank, the
Federal Funds Rate in effect for each such day plus 1.25%.

Section 4.4 Rescission of Payments by the Company. If all or part of any payment made
by the Company to Administrative Agent of principal, interest or commitment fees or other amount
payable in connection with the Loans is rescinded or must otherwise be returned for any reason and
if Administrative Agent has paid to any of the Banks such Bank’s ratable share therein, such Bank
shall, upon telephone notice from Administrative Agent, forthwith pay to Administrative Agent, on
the date of such telephone notice (if notice is received by Administrative Agent at or prior to
12:00 noon, New York City time) or on the next Business Day (if notice is received by
Administrative Agent after 12:00 noon, New York City time), an amount equal to such Bank’s ratable
interest in the amount that was rescinded or that must be so returned by Administrative Agent.
Administrative Agent shall promptly return to the Company, or to whomever shall be legally entitled
thereto pursuant to an order of a court of competent jurisdiction, each such amount (or any lesser
amount) that is received from each Bank. Administrative Agent shall have no obligation to the
Company for any amount that Administrative Agent paid to any Bank and that is not repaid by such
Bank, provided that Administrative Agent did in fact provide such Bank with the notice described
above to the effect that such payment was rescinded or must be returned.

Section 4.5 Powers Granted to the Administrative Agent.

(a) The Company and one or more Banks (each a “Principal Bank”) may, in the event that an
Agent shall become unable to fulfill any of its duties hereunder (as determined by the Company in
its reasonable discretion) or upon mutual agreement, from time to time request another Bank to act
as an additional agent for the purpose of administering and servicing the Loans of the Principal
Banks. Upon the acceptance of the offer to service by the proposed additional agent (which shall be
in the sole discretion of such proposed additional agent), such Bank shall be an additional agent
(“Additional Agent”) hereunder and as administrator of the Loans of the Principal Banks for which
it acts (and not as an agent, employee or fiduciary), shall be entitled to exercise all such powers
as are incidental to the powers to receive and collect funds from the Principal Banks and the
Company as provided for in this Agreement, and to take such other actions with respect to such
Loans as are provided hereby or as may be from time to time agreed by such Additional Agent and the
Principal Banks. In acting under this Agreement, Additional Agent agrees to exercise the same
degree of care in administering such Loans as it would use in managing its own loans;
provided, however, that this sentence shall not make Additional Agent a fiduciary
to any Principal Bank. The Principal Banks and the Company hereby agree and acknowledge that (i) in
performing the duties provided for in this Agreement, Additional Agent is acting solely for the
benefit of the Principal Banks and are in no way to be construed to be acting as agent for the
Company; and (ii) the servicing arrangement provided for herein is not intended to constitute, and
shall not be construed to establish, a partnership or joint venture between Additional Agent and
the Principal Banks, or between Additional Agent and the Company. Notwithstanding the foregoing,
the Company may, without the consent of any other Bank, appoint Bank of Montreal as Additional
Agent and upon such appointment, Bank of Montreal shall be an Additional Agent with the powers and
duties as set forth herein and shall serve in such capacity.

(b) The Company shall promptly notify the Administrative Agent of the appointment of an
Additional Agent. To the extent an Additional Agent will perform any function or duty currently
performed by the Administrative Agent, the Administrative Agent shall cease its performance of such
function or duty when the Company directs the Administrative Agent to cease such performance. An
Additional Agent shall not be deemed an agent or fiduciary of the Administrative Agent. In acting
in such capacity, an Additional Agent shall be deemed to be an “Agent” for the purposes of, and
shall benefit from the protections of, Article X.

ARTICLE V

CONDITIONS PRECEDENT

Section 5.1 Conditions Precedent. This Agreement shall become effective upon the
occurrence of each of the following (such date, the “Closing Date”):

(a) The execution and delivery of a counterpart hereto by each party hereto to the
Administrative Agent (or its counsel). Delivery of an executed counterpart of a signature page of
this Agreement by facsimile or email shall be effective as delivery of a manually executed
counterpart of this Agreement.

(b) The Administrative Agent shall have received all fees and other amounts due and payable on
or prior to the Closing Date, for which invoices have been presented at least two Business Days
prior to the Closing Date, including reimbursement or payment of all out-of-pocket expenses
required to be reimbursed or paid by the Company hereunder.

(c) A copy of the certificate of incorporation of the Company certified by the Delaware
Secretary of State and certified by a secretary or assistant secretary of the Company to be true
and correct as of the date hereof.

(d) A copy of the bylaws of the Company certified by a secretary or assistant secretary of the
Company to be true and correct as of the date hereof.

(e) A certificate of good standing with respect to the Company, certified by the Secretary of
State of Delaware.

(f) A copy, certified by the secretary or assistant secretary of the Company, of the Company’s
Board of Directors’ resolutions authorizing the execution of the Loan Documents.

(g) An incumbency certificate, in substantially the form of Exhibit F hereto, executed
by the secretary or assistant secretary of the Company, which shall identify by name and title and
bear the signature of the officers of the Company authorized to sign the Loan Documents and to make
borrowings hereunder, including telephonic borrowings, upon which certificate the Administrative
Agent and the Banks shall be entitled to rely until informed of any change in writing by the
Company.

(h) A certificate, signed by the (a) chief executive officer of the Company, (b) president of
the Company, (c) managing director & president of the Clearing House division of the Company, or
(d) managing director & chief financial officer of the Company, or in each case his or her
delegate, in substantially the form of Exhibit B hereto. Such certificate may be furnished
by the Company by any means set forth in Section 13.1 hereof, and shall be deemed given to
the Administrative Agent as provided therein.

(i) A written opinion of the Company’s counsel, addressed to the Administrative Agent and the
Banks (or upon which the Administrative Agent and the Banks may rely), reasonably acceptable to the
Administrative Agent.

(j) A copy of all the JPMorgan Securities Account Control Agreements, each duly executed and
delivered by the applicable Grantors, the JPMorgan Securities Intermediary and the Collateral
Agent.

(k) A copy of the Security and Pledge Agreement, duly executed and delivered by the Grantors
and the Collateral Agent.

(l) A copy of the Bullion Security Agreement, duly executed and delivered by the Grantors and
the Collateral Agent.

(m) A copy of the BONY Securities Account Control Agreement, duly executed and delivered by
the applicable Grantors, the BONY Securities Intermediary and the Collateral Agent.

(n) The termination of the Existing Credit Agreement.

Section 5.2 Each Advance. No Bank shall be required to make any Advance (including the
initial Advance), unless on the applicable Borrowing Date immediately after giving effect to the
Advance and the contemplated use of the proceeds thereof:

(a) There exists no Default or Unmatured Default.

(b) The representations and warranties contained in Article VI (other than Section
6.5) are true and correct in all material respects as of such Borrowing Date, except for
representations and warranties that relate to a specific date, in which case such representations
and warranties shall be true and correct in all material respects as of such date.

(c) To the extent any Money Fund Share shall be included in any Clearing Fund Collateral Pool,
a copy of the Money Fund Control Agreement applicable to each such Money Fund Share shall have been
duly executed and delivered by the applicable Grantors, the applicable Money Fund Issuer or its
transfer or servicing agent and the Collateral Agent.

(d) To the extent any Citibank Securities Account shall be included in any Clearing Fund
Collateral Pool, a copy of the Citibank Securities Account Control Agreement applicable to each
such Citibank Securities Account shall have been duly executed and delivered by the applicable
Grantors, the Citibank Securities Intermediary and the Collateral Agent.

(e) The aggregate outstanding principal of (i) all Loans disbursed to the Company hereunder,
after giving effect to the Loans to be made on such Borrowing Date, does not exceed the Aggregate
Commitment, (ii) all Clearing Fund Pool Loans for the applicable Clearing Business disbursed to the
Company hereunder, after giving effect to such Clearing Fund Pool Loans, if any, to be made on such
Borrowing Date (and any concurrent redesignation pursuant to Section 2.13), does not exceed
the applicable Clearing Fund Borrowing Base as of such date, and (iii) all Company Pool Loans
disbursed to the Company hereunder, after giving effect to the Company Pool Loans, if any, to be
made on such Borrowing Date (and any concurrent redesignation pursuant to Section 2.13),
does not exceed the Company Borrowing Base.

The Company’s receipt of the proceeds of any Loan hereunder shall constitute a representation and
warranty by the Company that the conditions contained in Sections 5.2(a) and (b)
have been satisfied.

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

The Company represents and warrants to the Banks, as of the date hereof and (except as
otherwise specified herein) the date of each Advance, that:

Section 6.1 Corporate Existence and Standing. Each of the Company and the Subsidiaries
is a corporation duly incorporated, validly existing and in good standing under the laws of its
jurisdiction of incorporation and has all requisite authority to conduct its business in each
jurisdiction in which its business is conducted and where the failure to have such authority would
reasonably be expected to have a Material Adverse Effect.

Section 6.2 Authorization and Validity.

(a) The Company has the corporate power and authority and legal right to execute and deliver
the Loan Documents and to perform its obligations thereunder. The execution and delivery by the
Company of the Loan Documents and the performance of its obligations thereunder have been duly
authorized by proper corporate proceedings. The Company has duly executed and delivered the Loan
Documents, and the Loan Documents constitute legal, valid and binding obligations of the Company,
enforceable against the Company in accordance with their terms, except as enforceability may be
limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights
generally and by general principles of equity (whether enforcement is considered in a proceeding at
law or in equity).

(b) The Company has the authority pursuant to CME Rules 816, 817 and 820, CBOT Rules 816, 817
and 820, NYMEX Rules 816, 817 and 820 and any other similar Rules, as applicable, to execute and
deliver, as Member Attorney-in-Fact on behalf of the Clearing Members, the Collateral Documents.
Pursuant to CME Rule 817, CBOT Rule 817, NYMEX Rule 817 and any other similar Rules, as applicable,
the Company has the authority, as Member Attorney-in-Fact on behalf of the Clearing Members, to
cause the Security Deposits to be subject to the Lien of the Collateral Documents to secure the
Secured Obligations. Pursuant to CME Rule 817, CBOT Rule 817, NYMEX Rule 817 and any other similar
Rules, as applicable, the Company has the authority, as Member Attorney-in-Fact on behalf of the
Clearing Members, to cause the Performance Bonds of Clearing Members to be subject to the Lien of
the Collateral Documents to secure the Secured Obligations (it being understood that only those
Security Deposits and Performance Bonds which are Eligible Assets shall be pledged under the
Collateral Documents). CME Rules 816, 817, 820 and 913.B, CBOT Rules 816, 817, 820 and 913.B, NYMEX
Rules 816, 817, 820 and 913.B and any other similar Rules, as applicable, each as set forth in
Exhibit H, have been duly adopted and are in full force and effect.

Section 6.3 Compliance with Laws and Contracts. Neither the execution and delivery by
the Company of the Loan Documents, nor the consummation of the transactions therein contemplated,
nor compliance with the provisions thereof will violate any law, rule, regulation, order, writ,
judgment, injunction, decree or award binding on the Company or any Subsidiary or the Company’s or
any Subsidiary’s articles of incorporation or by-laws or the provisions of any material indenture,
instrument or agreement to which the Company or any Subsidiary is a party or is subject, or by
which it, or its property, is bound, or conflict with or constitute a default thereunder. No order,
consent, approval, license, authorization, or validation of, or filing, recording or registration
with, or exemption by, any governmental or public body or authority, or any subdivision thereof,
that has not been obtained is required to authorize, or is required in connection with the
execution, delivery and performance of, or the legality, validity, binding effect or enforceability
of, any of the Loan Documents as against the Company, except for registration of the Bullion
Security Agreement at the Companies Registration Office in England and Wales under The Overseas
Companies (Execution of Documents and Registration of Charges) Regulations 2009 and payment of
associated fees.

Section 6.4 Financial Statements. The most recent audited consolidated balance sheet
and statements of income and cash flows of each of the Company and the Subsidiaries and of Holdings
and its subsidiaries (which include the Company and the Subsidiaries) for the fiscal year ended
December 31, 2009, in each case, accompanied by an opinion of Ernst & Young LLP, independent public
accountants, and the consolidated balance sheet and statements of income and cash flows of each of
the Company and the Subsidiaries and of Holdings and its subsidiaries as of and for the period
ended on September 30, 2010, certified, in the case of the consolidated financial statements of the
Company and the Subsidiaries, by the Company’s chief financial officer, copies of which have been
heretofore delivered to the Banks and were prepared in accordance with GAAP and fairly present in
all material respects the consolidated financial condition and operations of the Company and the
Subsidiaries or of Holdings and its subsidiaries, as the case may be, at such dates and the
consolidated results of each of their operations for the periods covered thereby, subject to
year-end audit adjustments and the absence of footnotes in the case of the statements for the
period ended on September 30, 2010.

Section 6.5 Material Adverse Change. As of the Closing Date, no material adverse
change in the business, financial condition, or results of operations of the Company and the
Subsidiaries has occurred since the date of the audited financial statements referred to in
Section 6.4.

Section 6.6 Subsidiaries. Schedule I contains an accurate list of all of the
Subsidiaries of the Company existing as of the Closing Date, setting forth their respective
jurisdictions of incorporation and the percentage of their respective capital stock owned by the
Company or other Subsidiaries. All of the issued and outstanding shares of capital stock of such
Subsidiaries have been duly authorized and issued and are fully paid and non-assessable.

Section 6.7 Accuracy of Information. No written information, exhibit or report
furnished by Holdings, the Company or any Subsidiary to the Administrative Agent, the Collateral
Agent or any Bank in connection with the negotiation of the Loan Documents or, in the case of the
Company, the performance thereof, contained any material misstatement of fact or omitted to state a
material fact or any fact necessary to make the statements contained therein not materially
misleading in light of the circumstances existing at the time furnished.

Section 6.8 Margin Regulations. Margin Stock (as defined in Regulation U) constitutes
less than 25% of those assets of the Company and its Subsidiaries which are subject to any
limitation on sale, pledge, or other restriction hereunder. No proceeds of any Loans will be used
to “buy”, “purchase” or “carry” any “margin stock” (each as defined in Regulation U), or for any
purpose that violates the provisions of Regulation T, U or X of the Board of Governors of the
Federal Reserve System as now and from time to time hereafter in effect.

Section 6.9 Taxes. The Company and its Subsidiaries have filed all United States
federal Tax returns and all other material Tax returns which are required to be filed by any of
them and have paid all Taxes shown to be due and payable pursuant to said returns or pursuant to
any assessment received by the Company or any such Subsidiary, except such Taxes, if any, as are
being contested in good faith and with respect to which adequate reserves required in accordance
with GAAP have been set aside on the books of the Company or such Subsidiary, as applicable. To the
best of the Company’s knowledge, no Tax liens have been filed and no claims are being asserted with
respect to any such taxes other than those Taxes that are being contested in good faith and with
respect to which adequate reserves required in accordance with GAAP have been set aside on the
books of the Company or such Subsidiary, as applicable. The charges, accruals and reserves on the
books of the Company and its Subsidiaries in respect of any Taxes or other governmental charges are
adequate.

Section 6.10 Litigation. Except as set forth in Schedule II attached hereto,
there is no litigation or proceeding before any governmental authority pending or, to the knowledge
of any of their officers, threatened, against or affecting the Company or any Subsidiary of the
Company which might reasonably be expected to materially adversely affect the business, financial
condition or results of operations of the Company or the ability of the Company to perform its
obligations under the Loan Documents.

Section 6.11 ERISA. Each Plan complies in all material respects with all applicable
requirements of law and regulations, no Reportable Event has occurred with respect to any Plan,
neither the Company nor any of its Subsidiaries has withdrawn from any Plan or initiated steps to
do so, and no steps have been taken to terminate any Plan.

Section 6.12 Investment Company Status. Neither the Company nor any of its
Subsidiaries is an “investment company” as defined in, or subject to regulation under, the
Investment Company Act of 1940.

Section 6.13 Registration. The Company is and will remain registered with the the
Commodity Futures Trading Commission and all other governmental or public bodies or authorities, or
any subdivision thereof, which require registration and have jurisdiction over the Company.

ARTICLE VII

COVENANTS

During the term of this Agreement and thereafter as long as any Advances or other Obligations
(other than unasserted contingent indemnification obligations not due and payable) remain
outstanding hereunder, unless the Required Banks shall otherwise consent in writing:

Section 7.1 Financial Reporting. The Company will maintain, for itself and each
Subsidiary, a system of accounting established and administered in order to permit preparation of
financial statements in accordance with generally accepted accounting principles, and furnish to
the Administrative Agent (and the Administrative Agent will furnish a copy to each Bank):

(a) Within 90 days after the close of each of its fiscal years, an unqualified audit report
certified by independent certified public accountants, acceptable to the Required Banks, prepared
in accordance with GAAP on a consolidated basis for Holdings and its subsidiaries (including the
Company), including balance sheets as of the end of such period, and statements of income, changes
in shareholders’ equity and cash flows for the year then ended, accompanied by any management
letter prepared by said accountants and by a certificate of said accountants in substantially the
form of Exhibit D hereto, or if, in the opinion of such accountants, such certificate is
not applicable, a description of any Default or Unmatured Default relating to accounting matters
that in their opinion exists, stating the nature and status thereof.

(b) Within 90 days after the close of each of its fiscal years, for the Company and its
Subsidiaries, an unaudited (except, in the case of the fiscal year ending December 31, 2010,
audited) consolidated balance sheet as at the end of such period and audited consolidated
statements of income, changes in shareholders’ equity and cash flow for the year then ended, each
(i) prepared in a manner consistent with the preparation of Holdings’ year-end statements and in
accordance with GAAP (other than the absence of footnotes) and (ii) in the case of the fiscal year
ending December 31, 2010, accompanied by an opinion of Ernst & Young LLP, independent public
accountants, or other independent public accountants of nationally recognized standing.

(c) Within 45 days after the close of the first three quarterly periods of each of its fiscal
years, for the Company and its Subsidiaries, an unaudited consolidated balance sheet as at the
close of each such period and unaudited consolidated statements of income, changes in shareholders’
equity and cash flows from the beginning of such fiscal year to the end of such quarter, each
prepared in a manner consistent with the preparation of the Company’s year-end statements and in
accordance with GAAP (other than the absence of footnotes and subject to normal year-end
adjustments).

(d) Within 45 days after the close of the first three quarterly periods of each of the
Company’s fiscal years and within 90 days after the close of each of the Company’s fiscal years, a
report of (i) current Surplus Funds, (ii) the aggregate amount of Security Deposits being held by
the Company including a breakdown of the asset types making up such Security Deposits indicating,
inter alia, those Security Deposit assets which are Eligible Assets and (iii) the aggregate amount
of Performance Bonds of Defaulted Clearing Members being held by the Company including a breakdown
of the asset types making up such Performance Bonds indicating, inter alia, those Performance Bond
assets which are Eligible Assets.

(e) Within the time periods set forth herein for the furnishing of the financial statements
required hereunder, a certificate signed by its managing director & chief financial officer or
another managing director, in substantially the form of Exhibit E hereto, (i) certifying
that, to the knowledge of such officer or director, no Default or Unmatured Default has occurred
during the period covered by such financial statements that is still continuing and (ii) showing
the calculations set forth in Exhibit E concerning Surplus Funds and Consolidated Tangible
Net Worth as well as setting forth a description of the nature and status of such Default or
Unmatured Default, if any such Default or Unmatured Default exists.

(f) Within 90 days after the close of each fiscal year, a statement of the Unfunded
Liabilities of each Plan, signed by the managing director & chief financial officer of the Company
or another managing director, or, in the event there are no Unfunded Liabilities, a certificate
signed by its managing director & chief financial officer or another managing director to that
effect.

(g) As soon as possible and in any event within 10 days after the Company knows that any
Reportable Event has occurred with respect to any Plan, a statement, signed by the managing
director & chief financial officer of the Company or another managing director, describing said
Reportable Event and the action which the Company proposes to take with respect thereto.

(h) Such other information (including non-financial information) as any Bank or the
Administrative Agent may from time to time reasonably request.

Section 7.2 Use of Proceeds. Except in the case of a Test Draw, the Company will only
use the proceeds of the Advances designated in the applicable Advance Request as “Settlement Loans”
(“Settlement Loans”) in circumstances where the Company is entitled to use the Security Deposits
and Performance Bonds of the Clearing Members to provide temporary liquidity (i) to satisfy any
outstanding obligations of any Defaulted Clearing Members to CME, CBOT, NYMEX or any other exchange
qualified to clear trades through the Clearing House as provided in the Rules or, with respect to
the transfer of positions and related margin from a suspended Clearing Member to another Clearing
Member, to make a transfer in cash in respect of margin related to such suspended Clearing Member’s
positions, (ii) in the event of a liquidity constraint or default by a depositary or (iii) in
circumstances where a Money Gridlock Situation that affects the Company’s operations exists.
Settlement Loans may cover the obligations described in clauses (i) and (ii) above related to one
of the Company’s separately identified clearing and settlement operations (each of which are or
shall be governed by the Rules or rules substantially similar to the Rules) including relating to
in and in respect of any of its futures, interest rate swaps or credit default swaps clearing
business (each, a “Clearing Business”). Additionally, the Company may only use the proceeds of the
Advances designated in the applicable Advance Request (A) as “GFX Loans” (“GFX Loans”) to fulfill
its obligations under GFX Guaranties, provided, however, that the Company may use
the proceeds for GFX Loans only up to the amount of Surplus Funds on any given day or (B) as “CMECE
Loans” (“CMECE Loans”) for the purpose of funding advances to CMECE. Additionally, the Company
from time to time may conduct Test Draws which shall be repaid on the Business Day immediately
following the Borrowing Date thereof. The Company will not, nor will it permit any Subsidiary to,
use any of the proceeds of the Loans to “buy” or “carry” any “margin stock” (each as defined in
Regulation U) or for any purpose that violates the provisions of Regulation T, U or X of the Board
of the Federal Reserve System as now and from time to time hereafter in effect.

Section 7.3 Notice of Default. The Company will, and will cause each Subsidiary to,
give prompt notice in writing to the Banks of the occurrence of any Default or Unmatured Default
and of any other development, financial or otherwise, which would reasonably be expected to
materially adversely affect its business, properties or affairs or the ability of the Company to
repay the Obligations.

Section 7.4 Conduct of Business. The Company will, and will cause each Subsidiary to,
carry on and conduct its business in substantially the same manner and in substantially the same
fields of enterprise as it is presently conducted and to do all things necessary to remain duly
incorporated, validly existing and in good standing as a domestic corporation in its jurisdiction
of incorporation and maintain all requisite authority to conduct its business in each jurisdiction
in which its business is conducted and where the failure to have such authority would reasonably be
expected to have a Material Adverse Effect.

Section 7.5 Compliance with Laws. The Company will, and will cause each Subsidiary to,
comply with all laws, rules, regulations, orders, writs, judgments, injunctions, decrees or awards
to which it may be subject, except where the failure to so comply would not reasonably be expected
to have a Material Adverse Effect.

Section 7.6 Books and Records; Inspection Rights. The Company will, and will cause
each of its Subsidiaries to, permit the Administrative Agent and the Collateral Agent or its
representatives and agents, to inspect any of the properties, corporate books and financial records
of the Company and each Subsidiary, to examine and make copies of the books of accounts and other
financial records of the Company and each Subsidiary, and to discuss the affairs, finances and
accounts of the Company and each Subsidiary (the foregoing activities, an “Audit”) with, and to be
advised as to the same by, their respective officers at such reasonable times and intervals as the
Administrative Agent or the Collateral Agent may designate; provided that so long as no
Default has occurred and is continuing the Company shall only be responsible for the costs and
expenses of one Audit per 12-month period.

Section 7.7 Consolidated Tangible Net Worth. The Company will maintain at all times a
Consolidated Tangible Net Worth of not less than the greater of (i) an amount equal to 12.5% of the
Aggregate Commitment or (ii) $100,000,000.

Section 7.8 Liens. The Company will not, nor will it permit any Subsidiary to, create
or incur any Lien in or on any of the Collateral, except:

(a) Liens in favor of the Collateral Agent.

(b) Liens in favor of the Company, which Liens are subordinated to the Liens in favor of the
Collateral Agent in accordance with Article XV hereof.

(c) [Reserved]

(d) In the case of any Collateral, Liens arising out of judgments or awards against the
Company or any Subsidiary, in an amount of not more than $5,000,000 in the aggregate, which
judgment or award is vacated, discharged, satisfied or stayed or bonded pending appeal within 60
days from the entry thereof; provided that the Company shall have pledged to the Collateral
Agent, for the benefit of the Banks, without the necessity of any notice or demand, such additional
Collateral under the applicable Collateral Pool under the Collateral Documents having an aggregate
Discounted Value necessary to cause the applicable Borrowing Base to be not less than the aggregate
principal amount of the applicable Clearing Fund Pool Loans or the Company Pool Loans then
outstanding, as the case may be.

Section 7.9 Additional Clearing Members. Upon any Person becoming a Clearing Member,
to the extent such Person’s assets are included in any Clearing Fund Borrowing Base, such Clearing
Member will execute and deliver a supplement to the Security and Pledge Agreement, substantially in
the form of Exhibit A thereto, joining such Clearing Member as a party to the Security and Pledge
Agreement and a supplement to each applicable Control Agreement joining such Clearing Member as a
party to such Control Agreement; provided that, in the case of (a) any Money Fund Shares of
such Clearing Member, joining such Clearing Member as a party to the applicable Money Fund Control
Agreement shall be conditioned upon, but shall occur prior to or simultaneously with, such Money
Fund Shares being included in the applicable Clearing Fund Collateral Pool and (b) any Citibank
Securities Account of such Clearing Member, joining such Clearing Member as a party to the
applicable Citibank Securities Account Control Agreement shall be conditioned upon, but shall occur
prior to or simultaneously with, such Citibank Securities Account being included in the applicable
Clearing Fund Collateral Pool. If any Clearing Member becomes a party to any Loan Document and is
a member of an exchange which is qualified to clear trades through the Clearing House other than
CME, CBOT or NYMEX, then the Company shall promptly (upon such Person’s becoming a Clearing Member)
update Exhibit H (which it shall be permitted to do for this purpose) to include the
relevant Rules of such exchange for purposes of the Loan Documents.

Section 7.10 Rule Changes. The Company will not, without the prior written consent of
the Banks, amend, revoke, or rescind any Rule in any manner that would have a materially adverse
effect on the Lien granted to the Collateral Agent in the Collateral or the ability of the
Collateral Agent to enforce any of its rights under the Collateral Documents. Changes to the Rules
may be made that have or could have the effect of decreasing the ability of the Company to pledge
any assets (but not decreasing the ability of the Company to continue the pledge of any assets
currently included in the Borrowing Base for any outstanding Loans) or limit the purposes for which
such assets can be pledged, but any such change shall not affect any Eligible Asset during the
period such asset is pledged as Collateral prior to its withdrawal from the Company Collateral Pool
or any Clearing Fund Collateral Pool, as the case may be.

Section 7.11 Taxes. The Company will, and will cause each Subsidiary to, pay when due
all Taxes, assessments and governmental charges and levies upon it or its income, profits or
property, except those (i) which are being contested in good faith by appropriate proceedings and
with respect to which adequate reserves required in accordance with GAAP have been set aside on the
books of the Company or such Subsidiary, as applicable, or (ii) as to which the failure to pay
would not reasonably be expected to have a Material Adverse Effect.

Section 7.12 Insurance. The Company will, and will cause each Subsidiary to, maintain
with financially sound and reputable insurance companies insurance on all their property in such
amounts and covering such risks as is consistent with sound business practice in the industry, and
the Company will furnish to the Administrative Agent upon request of any Bank information as to the
insurance carried. The Administrative Agent shall furnish such information to each Bank.

Section 7.13 Fundamental Changes. The Company will not merge into or consolidate with
any other Person, unless the Company is the surviving Person, or liquidate or dissolve.

ARTICLE VIII

DEFAULTS

The occurrence of any one or more of the following events shall constitute a Default:

Section 8.1 Representations and Warranties. Any representation or warranty made, or
deemed made under Section 5.2, by or on behalf of the Company or any Subsidiary to the Banks in
this Agreement or in any certificate or written information delivered in connection with this
Agreement or any other Loan Document shall be materially false as of the date on which made or
deemed to have been made.

Section 8.2 Payment Defaults. Nonpayment of the principal of any Loan when due,
nonpayment of interest upon any Loan within five days after the same becomes due or nonpayment of
any commitment fee or other Obligation under any of the Loan Documents within ten days after the
same becomes due.

Section 8.3 Certain Covenant Defaults. (i) Any breach by the Company of any of the
terms required to be observed by it under Section 7.1 (other than Section 7.1(g)),
which is not remedied within ten days after the Company receives written notice from any Bank or
the Administrative Agent; (ii) any breach by the Company of any of the terms required to be
observed by it under Section 2.6, 7.2, 7.7, 7.8, 7.10 or
7.13; or (iii) any material breach by the Company of any of the other terms or provisions
required to be observed by it under Article VII which is not remedied within five days
after the Company receives written notice from any Bank or the Administrative Agent.

Section 8.4 Other Covenant Defaults. The breach by the Company (other than a breach
which constitutes a Default under Section 8.1, 8.2 or 8.3) of any of the
terms or provisions of this Agreement or any other Loan Document to which such Person is a party
which is not remedied within thirty days after written notice from any Bank or the Administrative
Agent.

Section 8.5 Other Indebtedness. Failure of the Company or any Subsidiary to pay any
Indebtedness in an aggregate amount in excess of $5,000,000 when due; or the default by the Company
or any Subsidiary in the performance of any term, provision or condition contained in any agreement
under which any such Indebtedness was created or is governed, which results in such Indebtedness
being accelerated or declared to be due and payable or required to be prepaid, redeemed or defeased
(other than by a regularly scheduled repayment, redemption or defeasance or mandatory prepayment,
redemption or defeasance) prior to its stated maturity.

Section 8.6 Bankruptcy, etc. The Company or any Subsidiary shall (a) have an order for
relief entered with respect to it under the federal bankruptcy code, (b) not pay, or admit in
writing its inability to pay, its debts generally as they become due, (c) make an assignment for
the benefit of creditors, (d) apply for, seek, consent to, or acquiesce in, the appointment of a
receiver, custodian, trustee, examiner, liquidator or similar official for it or any substantial
part of its property, (e) institute any proceeding seeking an order for relief under the federal
bankruptcy code or seeking to adjudicate it a bankrupt or insolvent, or seeking dissolution,
winding up, liquidation, reorganization, arrangement, adjustment or composition of it or its debts
under any law relating to bankruptcy, insolvency or reorganization or relief of debtors or fail to
file an answer or other pleading denying the material allegations of any such proceeding filed
against it, (f) take any corporate action to authorize or effect any of the foregoing actions set
forth in this Section 8.6 or (g) fail to contest in good faith any appointment or
proceeding described in Section 8.7.

Section 8.7 Involuntary Bankruptcy, etc. Without the application, approval or consent
of the Company or any Subsidiary, a receiver, trustee, examiner, liquidator or similar official
shall be appointed for the Company or any Subsidiary or any substantial part of its property, or a
proceeding described in Section 8.6(e) shall be instituted against the Company or any
Subsidiary and such appointment continues undischarged or such proceeding continues undismissed or
unstayed for a period of 45 consecutive days.

Section 8.8 [Reserved].

Section 8.9 Judgments. The Company or any Subsidiary shall fail to pay, bond or
otherwise discharge, within 30 days of the entry thereof, any judgment or order for the payment of
money in excess of $1,000,000, which is not stayed on appeal or otherwise being appropriately
contested in good faith.

Section 8.10 Security Interest; Validity. The Collateral Agent, for the ratable
benefit of the Banks, shall not have a valid and perfected first priority security interest in the
Collateral other than in connection with any release of Collateral contemplated hereby or by any
other Loan Document and other than with respect to any Money Fund Shares or Citibank Securities
Account not included in the applicable Clearing Fund Collateral Pool; or the Company shall assert
the invalidity of any such security interest or the invalidity or unenforceability of any
Collateral Document; or any Collateral Document shall be terminated without the Collateral Agent’s
written consent.

Section 8.11 CFTC Designation. The Commodity Futures Trading Commission (or its
successor) shall revoke or suspend the designation of the Company as a contract market under the
Commodity Exchange Act, as amended, for any futures contract other than for reasons of dormancy or
low volume in such contract or for reasons of disruptions in the underlying market for such
contract.

ARTICLE IX

ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES

Section 9.1 Acceleration. If any Default described in Section 8.6 or
8.7 occurs, the obligations of the Banks to make Loans hereunder shall automatically
terminate and the Obligations shall immediately become due and payable without any election or
action on the part of any Bank or the Administrative Agent. If any other Default occurs, and for so
long as it is continuing, the Administrative Agent upon the consent of the Required Banks may, or
upon the direction of the Required Banks shall, terminate or suspend the Commitments of the Banks
to make Loans hereunder, or declare the Obligations to be due and payable, or both, whereupon such
Obligations shall become immediately due and payable, without presentment, demand, protest or
notice of any kind, all of which the Company hereby expressly waives. In addition, at any time
after which the Obligations have become due and payable and the obligations of the Banks to make
Loans hereunder have terminated in accordance with this Section 9.1, the Collateral Agent
may, with the consent of the Required Banks (or shall, upon the direction of the Required Banks),
enforce any and all rights and interest created under the Collateral Documents or the UCC,
including, without limitation, foreclosing the security interests created pursuant to the
Collateral Documents by any available judicial procedure, and exercise all other rights and
remedies of the Collateral Agent otherwise available under any other provision of this Agreement,
by operation of law, at equity or otherwise, all of which are hereby expressly preserved and all of
which rights shall be cumulative.

Section 9.2 Amendments. Subject to the provisions of this Section 9.2, the
Required Banks or the Administrative Agent (with the written consent of the Required Banks) and, in
either case, the Company may enter into agreements supplemental hereto for the purpose of adding or
modifying any provisions to the Loan Documents or changing in any manner the rights of the Banks or
the Company hereunder or waiving any Default hereunder; provided, however, that:

(a) no amendment, waiver or modification of any provision of this Agreement shall (i) change
the percentage in the definition of the terms “Required Banks” or “Supermajority Banks” or any
other provision hereof specifying the number or percentage of Banks required to waive, amend or
modify any rights hereunder or give any direction or grant any consent hereunder without the
consent of all of the Banks, (ii) reduce the principal amount of or extend the scheduled date of
payment for any Advance beyond the Revolving Credit Termination Date, or reduce the rate or extend
the time of payment of interest thereon without the consent of each Bank directly affected thereby,
(iii) reduce the rate or extend the time of payment of any commitment fee without the consent of
each Bank directly affected thereby, (iv) adjust the amount of the Commitment of any Bank except as
otherwise permitted herein or postpone the scheduled date of expiration of any Commitment without
the consent of each Bank directly affected thereby, (v) amend Section 2.6, 3.4(b)
(solely with respect to pro rata treatment of payments to the Banks), 4.3 (solely with
respect to pro rata treatment of payments to the Banks), this Section 9.2, or Section
12.1(b) or (c) without the consent of each Bank directly affected thereby, (vi) extend
the Revolving Credit Termination Date without the consent of each Bank directly affected thereby,
(vii) permit the Company to assign its rights under this Agreement without the consent of all of
the Banks, (viii) subject to clause (c) below, amend the definition of “Eligible Assets”, “Advance
Rate”, “Concentration Limit”, “Minimum Credit Rating”, “Borrowing Base”, “Discounted Value”, the
provisions of Annex I hereto or Section 5.2(c), (d) or (e) hereto, in each case
without the consent of the Supermajority Banks, (ix) release any of the Collateral from the Lien
granted pursuant to the Collateral Documents to the extent that on the date of such release the
aggregate outstanding principal amount of all Clearing Fund Pool Loans for the applicable Clearing
Business or all Company Pool Loans exceed, or will immediately after such release and any
concurrent redesignation pursuant to Section 2.13 exceed, the applicable Borrowing Base,
other than as permitted by this Agreement or any other Loan Document (including without limitation
Section 2.9 of this Agreement) without the consent of the Supermajority Banks or (x) amend,
modify or waive any provision of Section 2.11 or the definition of the term “Defaulting
Bank” (or the definition of any component thereof) without the consent of the Required Banks and
the Administrative Agent (for the avoidance of doubt, this clause (x) shall be the only clause in
this subsection applicable to any such amendment, modification or waiver of Section 2.11 or
the definition of the term “Defaulting Bank”);

(b) the Company may (i) add one or more new Banks pursuant to Section 2.10 without the
consent of any other Bank and (ii) in connection with the removal or replacement of any Bank in
accordance with Section 2.12, (A) reduce the Aggregate Commitment up to the amount of any
Terminated Bank’s Commitment without the consent of any other Bank and (B) add one or more
Replacement Banks in accordance with applicable law and the provisions of Section 11.1(c);
provided, however, that each such new Bank or Replacement Bank shall agree in
writing to be bound by the terms of this Agreement;

(c) subject to the consent of the Administrative Agent and the Collateral Agent (which
consents shall not be unreasonably withheld or delayed), the Company may modify the Eligible
Assets, Advance Rate, the Concentration Limit, the Minimum Credit Rating, the Borrowing Base,
Discounted Value or the provisions of Annex I hereto at any time, without the consent of
the Banks, if such modification results in an imposition of a more restrictive definition of
Eligible Assets, Advance Rate, Concentration Limit, Minimum Credit Rating, Borrowing Base or
Discounted Value or more restrictive provisions of Annex I than as set forth herein as of
the Closing Date;

(d) subject to the consent of the Collateral Agent (which consent shall not be unreasonably
withheld or delayed), the Company may add or remove any Securities Account or money market fund to
or from the schedules to the Security and Pledge Agreement as provided in the Security and Pledge
Agreement or any Control Agreement without the consent of the Banks; and

(e) any amendment, modification or waiver of any provision of any Loan Documents that affects
the rights or obligations of an Agent shall not be effective without such Agent’s prior written
consent.

Section 9.3 Preservation of Rights. No delay or omission of any of the Agents or the
Banks to exercise any right under the Loan Documents shall impair such right or be construed to be
a waiver of any Default or an acquiescence therein, and the making of a Loan notwithstanding the
existence of a Default or the inability of the Company to satisfy the conditions precedent to such
Loan shall not constitute any waiver or acquiescence, regardless of whether the Administrative
Agent or any Bank may have had notice or knowledge of such Default at the time. Any single or
partial exercise of any such right shall not preclude other or further exercise thereof or the
exercise of any other right, and no waiver, amendment or other variation of the terms, conditions
or provisions of the Loan Documents whatsoever shall be valid unless the same shall be permitted by
Section 9.2, and then only in the specific instance and for the purpose for which given.
All remedies contained in the Loan Documents or by law afforded shall be cumulative and all shall
be available to the Banks until the Obligations have been paid in full and the Commitments have
been terminated.

ARTICLE X

THE AGENTS

Section 10.1 Declaration and Acceptance of Appointment; No Fiduciary Duties. Subject
to the terms and conditions hereof, each Bank hereby appoints and authorizes JPMorgan Chase Bank,
N.A. as its administrative agent hereunder and under the other Loan Documents and to act as its
collateral agent hereunder and under each of the Collateral Documents and other Loan Documents,
with such powers as are expressly delegated to each Agent by the terms of this Agreement, the
Collateral Documents, and the other Loan Documents, together with such other powers as are
reasonably incidental thereto. JPMorgan Chase Bank, N.A., by its execution hereof, hereby accepts
the appointment made under this Section 10.1. Anything herein to the contrary
notwithstanding, none of the Bookrunners, Arrangers or Agents listed on the cover page hereof shall
have any powers, duties or responsibilities under this Agreement or any of the other Loan
Documents, except in its capacity, as applicable, as the Administrative Agent, a Lender or the
Collateral Agent hereunder. Neither the Administrative Agent nor the Collateral Agent shall have
any duties or responsibilities except those expressly set forth in this Agreement, the Collateral
Documents and the other Loan Documents, or be a trustee for, or have any fiduciary obligation to,
any Bank, and no implied covenants, functions, responsibilities, duties, obligations or liabilities
on the part of either the Administrative Agent or the Collateral Agent shall be read into this
Agreement or any other Loan Document or otherwise exist for such Agent, regardless of whether a
Default or an Unmatured Default shall have occurred and be continuing. In performing its functions
and duties hereunder and under the other Loan Documents, the Administrative Agent and the
Collateral Agent shall act (except as set forth in Section 11.1(d), solely with respect to actions
by the Administrative Agent in respect of the Register) solely as agents for the Banks and do not
assume nor shall be deemed to have assumed any obligation or relationship of trust or agency with
or for the Company or any of its successors or assigns. Neither the Administrative Agent nor the
Collateral Agent shall be required to take any action that exposes such Agent to personal liability
or that is contrary to this Agreement, any other Loan Document or applicable law. The appointment
and authority of each Agent hereunder shall terminate upon the indefeasible payment in full of all
Obligations and the termination of the Commitments. Each Bank hereby authorizes the Collateral
Agent to execute each of the Collateral Documents on behalf of such Bank (the terms of which shall
be binding on such Bank) and to release any lien in any Collateral if such release is provided for
in any Loan Document or is otherwise consented to in accordance with Section 9.2.

Section 10.2 Reliance by Each Agent. Each Agent shall in all cases be entitled to
rely, and shall be fully protected in relying, upon any notice, request, certificate, consent,
statement, instrument, document or other writing or communication believed by it in good faith to
be genuine and correct and to have been signed, sent or made by the proper Person or Persons. The
Administrative Agent shall be deemed not to have knowledge of any Default or Unmatured Default
unless and until written notice thereof is given to the Administrative Agent by the Company or a
Bank, and the Administrative Agent shall not be responsible for or have any duty to ascertain or
inquire into (i) any statement, warranty or representation made in or in connection with this
Agreement or the other Loan Documents, (ii) the contents of any certificate, report or other
document delivered hereunder or in connection herewith, (iii) the performance or observance of any
of the covenants, agreements or other terms or conditions set forth herein, (iv) the validity,
enforceability, effectiveness or genuineness of this Agreement or any other agreement, instrument
or document, or (v) the satisfaction of any condition set forth in Article V or elsewhere herein,
other than to confirm receipt of items expressly required to be delivered to the Administrative
Agent. Except as expressly set forth herein, the Administrative Agent shall not have any duty to
disclose, and shall not be liable for the failure to disclose, any information relating to
Holdings, the Company or any of its Subsidiaries that is communicated to or obtained by the bank
serving as Administrative Agent or any of its Affiliates in any capacity. Each Agent shall in all
cases be fully justified in failing or refusing to take any action under this Agreement or any
other Loan Document unless it shall first receive advice or concurrence of the Company or the
Required Banks (or, if required, all of the Banks), as applicable, as it deems appropriate and it
shall first be indemnified to its satisfaction by the Banks, provided that unless and until
such Agent shall have received such advice, such Agent may take or refrain from taking any action,
as such Agent shall deem advisable and in the best interests of the Banks. Each Agent shall in all
cases be fully protected in acting, or in refraining from acting, in accordance with a request of
the Company or the Required Banks or all of the Banks, as applicable, and such request and any
action taken or failure to act pursuant thereto shall be binding upon all the Banks.

Section 10.3 Reimbursement and Indemnification. The Banks severally agree to reimburse
and indemnify each Agent and its Related Parties ratably in proportion to the amounts of their
respective Commitments, to the extent not paid or reimbursed by the Company (i) for any amounts for
which such Agent, acting in its capacity as Agent, is entitled to reimbursement by the Company
hereunder or under any other Loan Document and (ii) for any other actual out-of-pocket expenses
incurred by such Agent, in its capacity as Agent and acting on behalf of the Banks, in connection
with the administration and enforcement of this Agreement and the other Loan Documents, except in
each case, for any amounts or expenses that arise as a result of the gross negligence or willful
misconduct of such Agent.

Section 10.4 Each Agent in its Individual Capacity. Each Agent and its Affiliates may
make loans to, accept deposits from and generally engage in any kind of business with the Company
or any Affiliate of the Company as though such Agent were not an Agent hereunder. With respect to
the making of Loans pursuant to this Agreement, each Agent shall have the same rights and powers
under this Agreement in its individual capacity as any Bank and may exercise the same as though it
were not an Agent, and the terms “Bank,” and “Banks” shall include each Agent in its individual
capacity.

Section 10.5 Resignation or Termination of Agent; Sub-Agents.

(a) Any Agent may resign its position as such at any time upon ninety (90) days’ prior notice
to the Company, the other Agent and the Banks. The Administrative Agent shall resign upon the
request of the Company in the event the Administrative Agent is a Defaulting Bank. The Required
Banks, with the consent of the Company (such consent not to be unreasonably withheld), may appoint
a successor Agent to succeed any Agent that resigns or is terminated pursuant to this Section
10.5. Subsequent to the effective date of such resignation or termination, the resigning or
terminated (as applicable) Agent shall have no further obligations in that capacity under this
Agreement. After any such Agent’s resignation hereunder, the provisions of this Article X
and Section 11.9 shall continue in effect for the benefit of such retiring Agent, its
sub-agents and their respective Related Parties in respect of any actions taken or omitted to be
taken by any of them while it was acting as Agent.

(b) If no successor Agent shall have been appointed by the Company and the Required Banks and
shall have accepted such appointment prior to the effective date of the resignation or termination
of the then acting Agent, the resigning or terminated Agent may appoint a successor Agent, which
shall be a bank or trust company organized under the laws of the United States of America or any
State thereof, having a combined capital and surplus of at least $500,000,000.

(c) Unless and until a successor Agent is appointed pursuant to Sections 10.5(a) and
10.5(b) by the Company and the applicable Principal Banks acting together, (i) the services
performed by such Agent hereunder shall be performed by the individual Principal Banks and the
Company, each on its own behalf, and (ii) any payments or communications made by the Company to
such Agent hereunder shall be made directly to the applicable individual Principal Banks.

Section 10.6 Non-Reliance Representation. Each of the Banks acknowledges and
represents that it has, independently of and without reliance upon any Agent, and based solely upon
its own expertise (and the expertise of its agents and independent advisors, if any) and upon
financial statements and other information deemed appropriate by it, made its own credit analysis
of the Company and made its own decision to enter into this Agreement. Each of the Banks further
acknowledges and represents that it will, independently of and without reliance upon any Agent, and
based solely upon its own expertise (and the expertise of its agents and independent advisors, if
any) and upon such documents and information as it shall deem appropriate at the time, continue to
make its own credit analysis of the Company and its own decisions with respect to this Agreement.

Section 10.7 Exculpation. No Agent nor any of its shareholders or Related Parties
shall be liable to the Banks, or any of them individually, for any obligation, undertaking, act or
judgment of the Company or any other Person, or for any error of judgment or any action taken or
omitted to be taken by such Agent (except and to the extent that the same arises from gross
negligence or willful misconduct on the part of such Agent), or be bound to ascertain or inquire as
to the performance or observance of any term of any of the Loan Documents. Without limiting the
generality of the foregoing, each Agent: (a) may rely on the advice and statements of legal counsel
selected by it (including, without limitation, counsel to the Company), independent accountants,
pricing services and other experts selected by such Agent 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, pricing services or other experts; (b) makes no warranty or representation and shall
not be responsible for any warranty or representation made in or in connection with any of the Loan
Documents by any Person other than such Agent, or for the financial condition of the Company or any
other Person, or for the observance or performance of any obligations of the Company or any other
Person other than such Agent, or for the truth or accuracy of any document provided to such Agent
that such Agent has initially received from, or that such Agent has prepared based upon information
received from, the Company or any other Person; (c) makes no warranty or representation and shall
not be responsible for the due execution, validity, enforceability, sufficiency or collectibility
of any of the Loan Documents; (d) shall incur no liability under or in respect of any such
agreement or document by acting upon any notice (by telephone or otherwise), or writing (including
email, telex and telegraphic communication) believed by it in good faith to be genuine and to be
signed or sent by the proper party or Person; and (e) makes no warranty or guarantee as to: (i)
future payments by the Company or any other obligor or guarantor of the Loans, (ii) the Company’s
future compliance with or performance of any of the terms and conditions contained in the Loan
Documents, or (iii) the collectibility of the Loans.

Section 10.8 Collateral Valuation. The Collateral Agent shall monitor the Market
Value of the Collateral. On each Borrowing Date, the Collateral Agent shall determine the Market
Value of the Collateral (in accordance with Section 3.1(b) with respect to timing of such
valuation) securing the Loans to be made on such date. On each subsequent Business Day on which
there is an outstanding Advance, the Collateral Agent shall (i) to the extent any such Advance is a
Company Pool Loan, determine the Company Borrowing Base on and as of such date in accordance with
its usual and customary practices and (ii) to the extent any such Advance is a Clearing Fund Pool
Loan, determine the applicable Clearing Fund Borrowing Base on and as of such date in accordance
with its usual and customary practices, and, in each case, shall advise and notify (which may be by
telephone, provided that written confirmation thereof shall promptly follow) the Company, the
Administrative Agent and each Bank of each such determination.

ARTICLE XI

GENERAL PROVISIONS SECTION

Section 11.1 Successors and Assigns; Participating Interests.

(a) The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns, provided that (i) the Company
may not assign or otherwise transfer any of its rights or obligations under this Agreement except
as provided in Section 9.2 (and any attempted assignment or transfer by the Company shall
be null and void) and (ii) no Bank may assign or otherwise transfer any of its rights or
obligations under this Agreement except in accordance with this Section 11.1.

(b) (i) Any Bank may, in accordance with applicable law, at any time sell to one or more
banks, financial institutions or other entities (“Participants”) participating interests in any
Loan owing to such Bank, any Commitment of such Bank or any other interest of such Bank hereunder.
In the event of any such sale by a Bank of participating interests to a Participant, such Bank’s
obligations under this Agreement to the other parties to this Agreement shall remain unchanged,
such Bank shall remain solely responsible for the performance thereof and the Company and each
Agent shall continue to deal solely and directly with such Bank in connection with such Bank’s
rights and obligations under this Agreement and the other Loan Documents. Any agreement or
instrument pursuant to which a Bank sells such a participating interest shall provide that such
Bank shall retain the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement and in no event shall a Bank that sells a
participating interest be obligated to the Participant to take or refrain from taking any action
hereunder or under any of the other Loan Documents except that such Bank may agree that it will
not, without the consent of such Participant, agree to (A) reduce the principal of, or interest
payable on (or reduce the rate of interest applicable to), the Loans of such Bank or any fees or
other amounts payable to such Bank hereunder which, in each case, are related to the participating
interest sold to such Participant or, (B) postpone the date fixed for any payment of the principal
of, or interest on, the Loans of such Bank or other amounts payable to such Bank hereunder which,
in each case, are related to the participating interest sold to such Participant.

(ii) Each Bank that sells a participation shall, acting solely for this purpose as an agent of
the Company, maintain a register on which it enters the name and address of each Participant and
the principal amounts (and stated interest) of each participant’s interest in the Loans or other
obligations under this Agreement (the “Participant Register”); provided that no Bank shall
have any obligation to disclose all or any portion of the Participant Register to any Person
(including the identity of any Participant or any information relating to a Participant’s interest
in any Commitments, Loans or its other obligations under any Loan Document) except to the extent
that such disclosure is necessary to establish that such Commitment, Loan, or other obligation is
in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The
entries in the Participant Register shall be conclusive absent manifest error, and such Bank shall
treat each person whose name is recorded in the Participant Register as the owner of such
participation for all purposes of this Agreement notwithstanding any notice to the contrary.

(c) Any Bank may (or in accordance with Section 11.4(h) shall), in accordance with
applicable law, and with the consent of the Company (such consent not to be unreasonably withheld)
and the Administrative Agent (such consent not to be unreasonably withheld), at any time assign to
one or more financial institutions (all such financial institutions, collectively, “Assignees”) all
or any part of its Commitment (and related Revolving Loans) or if the Commitments have been
terminated, its Loans, pursuant to an assignment agreement (an “Assignment Agreement”), executed by
such Assignee and such Bank and delivered to the Company and each Agent; provided that the
consent of the Company (and the consent of the Administrative Agent, solely with respect to clauses
(B) and (C)) to any such assignment shall not be required if (A) a Default under any of
Sections 8.2, 8.6 or 8.7 has occurred and is continuing, (B) the assignment
is by a Bank to an Affiliate of such Bank or another existing Bank or an Affiliate of such other
existing Bank or (C) the assignment (including any pledge) is by any Bank of its Loans and its
rights hereunder with respect thereto to any Federal Reserve Bank. Upon such execution and delivery
of an Assignment Agreement, from and after the effective date as specified therein, (x) the
Assignee thereunder shall be a party hereto and shall be bound by the provisions hereto and, to the
extent provided in such Assignment Agreement, shall have the rights and obligations of a Bank
hereunder, with its Commitment as set forth in such Assignment Agreement, and (y) the transferor
Bank thereunder shall, to the extent provided in such Assignment Agreement, be released from its
obligations under this Agreement (and, in the case of an Assignment Agreement covering all or the
remaining portion of a transferor Bank’s rights and obligations under this Agreement, such
transferor Bank shall cease to be a party hereto, but shall continue to be entitled to the
benefits, and subject to the limitations, of Sections 2.14, 3.4(b), 4.3,
11.4, 11.9, 12.1(b) and 12.1(c) (to the extent such obligations
arose prior to the effective date of such Assignment Agreement)). Upon delivery of the Assignment
Agreement to the Company and each Agent, the Company, each Agent and the Banks shall treat the
Assignee as the owner of the Loans and Commitment recorded therein for all purposes of this
Agreement. Except in the case of an assignment of the entire remaining amount of the assigning
Bank’s Commitment or Loans, the amount of the Commitment or Revolving Loans of the assigning Bank
subject to each such assignment (determined as of the date the Assignment Agreement with respect to
such assignment is delivered to the Administrative Agent) shall not be less than $10,000,000 and
each continuing assigning Bank shall retain a Commitment of not less than $10,000,000, unless each
of the Company and the Administrative Agent otherwise consent, provided that no such
consent of the Company shall be required if a Default under any of Sections 8.2,
8.6 or 8.7 has occurred and is continuing. Any assignment or transfer by a Bank
that does not comply with this Section 11.1 shall be treated for purposes of this Agreement
as a sale by such Bank of a participating interest in such rights and obligations in accordance
with subsection 11.1(b).

(d) On the effective date specified in any Assignment Agreement, or as soon as possible
thereafter, the Company shall, upon request, execute and deliver to the applicable Assignee a new
Note to the order of such Assignee reflecting the Commitment and outstanding Loans obtained by it
pursuant to such Assignment Agreement and, if the transferor Bank has retained a Commitment and
Loans hereunder, upon request, a new Note in exchange for the Note held by the transferor Bank
(which existing Note shall be surrendered to the Company) to the order of the transferor Bank
reflecting the Commitment and outstanding Loans retained by it hereunder. Such new Notes shall be
dated the effective date of the Assignment Agreement as specified therein and shall otherwise be in
the form of the Note replaced thereby. The Note surrendered by the transferor Bank shall be
returned by the transferor Bank to the Company marked “canceled”. The Administrative Agent, acting
for this purpose as an agent of the Company, shall maintain at one of its offices a copy of each
Assignment Agreement delivered to it and a register for the recordation of the names and addresses
of the Banks, and the Commitment of, and principal amount (and stated interest) of the Loans owing
to, each Bank pursuant to the terms hereof from time to time (the “Register”). The entries in the
Register shall be conclusive, and the Company, the Administrative Agent and the Banks shall treat
each Person whose name is recorded in the Register pursuant to the terms hereof as the owner of its
interest therein, as indicated in the Register, for all purposes of this Agreement, notwithstanding
notice to the contrary. The Register shall be available for inspection by the Company and any
Bank, at any reasonable time and from time to time upon reasonable prior notice.

(e) The Company authorizes each Bank to disclose to any Participant or Assignee and any
prospective Participant or Assignee any and all financial and other information in such Bank’s
possession concerning the Company which has been delivered to such Bank by or on behalf of the
Company pursuant to this Agreement; provided that such Participant or Assignee or prospective
Participant or Assignee agrees to be bound by the confidentiality provisions contained in
Section 11.12.

(f) If, pursuant to this Section 11.1, any interest in this Agreement or any Loan is
transferred to any Assignee which is organized under the laws of any jurisdiction other than the
United States or any state thereof, such Assignee, concurrently with the effectiveness of such
transfer and becoming a party to this Agreement pursuant to the applicable Assignment Agreement
shall, (i) represent to the transferor Bank (for the benefit of the transferor Bank, each Agent and
the Company) that under applicable law and treaties then in effect no United States federal taxes
will be required to be withheld by any Agent, the Company or the transferor Bank with respect to
any payments to be made to such Assignee hereunder, (ii) furnish to the Company the documentation
described in Section 11.4(f), (wherein such Assignee claims entitlement to complete
exemption from U.S. federal withholding tax on all payments hereunder) and (iii) agree to otherwise
comply with the terms of Section 11.4(f).

(g) Notwithstanding anything to the contrary contained in this Section 11.1, no Bank
may assign or sell participating interests, or otherwise syndicate all or any portion of such
bank’s interests under this Agreement or any other Loan Document to any Person who is (i) listed on
the Specially Designated Nationals and Blocked Persons List (the “SDN List”) maintained by the U.S.
Department of Treasury Office of Foreign Assets Control (“OFAC”) and/or on any other similar list
maintained by the OFAC pursuant to any authorizing statute, executive order or regulation or (ii)
either (x) included within the term “designated national” as defined in the Cuban Assets Control
Regulations, 31 C.F.R. Part 515, or (y) designated under Sections 1(a), 1(b), 1(c) or 1(d) of
Executive Order No. 13224, 66 Fed. Reg. 49079 (published September 25, 2001) or similarly
designated under any related enabling legislation or any other similar executive orders.

(h) The transferor Bank shall pay to the Administrative Agent for its own account a processing
and recording fee of $3,500. Upon its receipt of a duly completed Assignment Agreement executed by
an assigning Bank and an Assignee, the Assignee’s completed Administrative Questionnaire (unless
the assignee shall already be a Bank hereunder), the processing and recordation fee referred to in
this subsection 11.1(h) and any written consent to such assignment required by
subsection 11.1(c), the Administrative Agent shall accept such Assignment Agreement and
record the information contained therein in the Register. No assignment shall be effective for
purposes of this Agreement unless it has been recorded in the Register as provided in this
subsection 11.1(h).

(i) Any Bank may at any time pledge or assign a security interest in all or any portion of its
rights under this Agreement to secure obligations of such Bank, including without limitation any
pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not
apply to any such pledge or assignment of a security interest; provided that no such pledge
or assignment of a security interest shall release a Bank from any of its obligations hereunder or
substitute any such pledgee or assignee for such Bank as a party hereto.

Section 11.2 Survival. All representations and warranties of the Company contained in
this Agreement shall survive the making of the Loans herein contemplated. The provisions of
Sections 11.4, 11.9, 12.1(b) and 12.1(c) and Article X
shall survive and remain in full force and effect regardless of the consummation of the
transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the
Commitments or the termination of this Agreement or any provision hereof.

	 	 	 
	Section 11.3

	 	[Reserved].
	
 
	 	 
	Section 11.4

	 	Taxes.
	
 
	 	 

(a) All payments to any Bank made under any Loan Document shall be made free and clear of, and
without deduction for any Indemnified Taxes or Other Taxes; provided that if the Company
shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the
sum payable shall be increased by the amount (the “Additional Amount”) necessary so that after
making all required deductions (including deductions applicable to additional sums described in
this paragraph) such Bank receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Company shall make such deductions and (iii) the Company shall pay
the full amount deducted to the relevant governmental authority in accordance with applicable law.
In addition, to the extent not paid in accordance with the preceding sentence, the Company shall
pay any Other Taxes to the relevant governmental authority in accordance with applicable law.

(b) Subject to subsection (g) below, the Company shall indemnify each Bank for
Indemnified Taxes and Other Taxes paid by such Bank, provided, however, that the Company shall not
be obligated to make payment to any Bank in respect of penalties, interest and other similar
liabilities attributable to such Indemnified Taxes or Other Taxes if such penalties, interest or
other similar liabilities are reasonably attributable to the gross negligence or willful misconduct
of such Bank.

(c) If a Bank shall become aware that it is entitled to claim a refund from a governmental
authority in respect of Indemnified Taxes or Other Taxes paid by the Company pursuant to this
Section 11.4, including Indemnified Taxes or Other Taxes as to which it has been
indemnified by the Company, or with respect to which the Company has paid Additional Amounts
pursuant hereto, it shall promptly notify the Company of the availability of such refund claim and,
if such Bank determines in good faith that making a claim for refund will not have a material
adverse effect on its taxes or business operations, shall, within 30 days after receipt of a
request by the Company, make a claim to such governmental authority for such refund at the
Company’s expense. If a Bank receives a refund in respect of any Indemnified Taxes or Other Taxes
paid by the Company pursuant hereto, it shall within 30 days from the date of such receipt pay over
such refund to the Company (but only to the extent of Indemnified Taxes or Other Taxes paid
pursuant to hereto, including indemnity payments made or Additional Amounts paid, by the Company
under this Section 11.4 with respect to the Indemnified Taxes or Other Taxes giving rise to
such refund), net of all out of pocket expenses of such Bank and without interest (other than
interest paid by the relevant governmental authority with respect to such refund). This Section
shall not be construed to require the Administrative Agent or any Bank to make available its tax
returns (or any other information relating to its taxes which it deems confidential) to the Company
or any other Person.

(d) If any Bank is or becomes eligible under any applicable law, regulation, treaty or other
rule to a reduced rate of taxation, or a complete exemption from withholding, with respect to
Indemnified Taxes or Other Taxes on payments made to it by the Company, such Bank shall, upon the
request of the Company or the Administrative Agent, complete and deliver from time to time any
certificate, form or other document requested by the Company or the Administrative Agent, the
completion and delivery of which are a precondition to obtaining the benefit of such reduced rate
or exemption, provided that the taking of such action by such Bank, would not, in the
reasonable judgment of such Bank be disadvantageous or prejudicial to such Bank or inconsistent
with its internal policies or legal or regulatory restrictions. For any period with respect to
which a Bank has failed to provide any such certificate, form or other document requested by the
Company or the Administrative Agent, such Bank shall not be entitled to any payment under this
Section 11.4 in respect of any Indemnified Taxes or Other Taxes that would not have been
imposed but for such failure.

(e) Each Bank organized under the laws of a jurisdiction in the United States, any State
thereof or the District of Columbia (other than Banks that are corporations or otherwise exempt
from United States backup withholding Tax) (each such Bank, a “US Bank”) shall (i) deliver to the
Company and the Administrative Agent, upon execution hereof (or, with respect to Persons becoming
Banks hereunder by assignment, upon execution of the relevant assignment agreement), two original
copies of United States Internal Revenue Service Form W-9 or any successor form, properly completed
and duly executed by such Bank, certifying that such Bank is exempt from United States backup
withholding Tax on payments of interest made under the Loan Documents and (ii) thereafter, at each
time when it is so reasonably requested in writing by the Company or the Administrative Agent or at
such time the Bank becomes aware of the invalidity or obsolescence of a previously delivered form,
deliver within a reasonable time two original copies of an updated Form W-9 or any successor form
thereto. Notwithstanding the provisions of subsection (a) and (b) above, the Company shall not be
required to indemnify a US Bank to the extent the obligation to pay such indemnity payment or
Additional Amounts would not have arisen but for a failure by such US Bank to comply with this
subsection (e), except (i) where such failure is a result of a change in law (including, but not
limited to, a change in the requirements set forth on Internal Revenue Service Form W-9 or any
change in interpretation of such requirements) occurring after such time the US Bank becomes a
party hereto or (ii) to the extent such Bank’s assignor (if any) was entitled, at the time of
assignment, to receive additional amounts from the Company.

(f) Each Bank, Agent and other Person receiving payments under this Agreement that is
organized under the laws of a jurisdiction other than the United States, any State thereof or the
District of Columbia (each such Bank, a “Foreign Bank”) that is entitled to an exemption from or
reduction of withholding Tax under the laws of the jurisdiction in which the Company is located, or
any treaty to which such jurisdiction is a party, with respect to payments under the Loan Documents
shall deliver to the Company and the Administrative Agent, upon execution hereof (or, with respect
to Persons becoming Banks hereunder by assignment, upon execution of the relevant assignment
agreement), such properly completed and duly executed documentation prescribed by applicable law or
reasonably requested by the Company or the Administrative Agent as will permit such payments to be
made without withholding or at a reduced rate, unless in the good faith opinion of the Foreign Bank
such documentation would expose the Foreign Bank to any material adverse consequences or risk or is
inconsistent with its internal policies or legal or regulatory restrictions, it being understood
that the completion of an Internal Revenue Service Form W-8BEN, W-8IMY or W-ECI by a Foreign Bank,
as applicable, as of the date of this Agreement, shall not be considered to be inconsistent with
such Foreign Bank’s internal policies or legal or regulatory restrictions or expose such Foreign
Bank to a material adverse consequence. Such documentation shall be delivered by each Foreign Bank
on or before the date it becomes a Bank and on or before the date, if any, such Foreign Bank
changes its applicable lending office by designating a different lending office with respect to its
Loans (a “New Lending Office”). In addition, each Foreign Bank shall deliver such forms promptly
upon the obsolescence or invalidity of any form previously delivered by such Foreign Bank. If a
payment made to a Foreign Bank under any Loan Document would be subject to U.S. Federal withholding
tax imposed by FATCA if such Foreign Bank fails to comply with the applicable reporting
requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as
applicable), such Foreign Bank shall deliver to the Withholding Agent (i) a certification signed by
the chief financial officer, principal accounting officer, treasurer or controller and (ii) other
documentation reasonably requested by the Withholding Agent sufficient for the Withholding Agent to
comply with its obligations under FATCA and to determine that such Foreign Bank has complied with
such applicable reporting requirements. Each Agent and Bank (and, in the case of a Foreign Bank,
its lending office), represents that on the date hereof, payments made hereunder by the Company to
it would not be subject to United States federal withholding tax.

(g) Notwithstanding the provisions of subsection (a) and (b) above, the
Company shall not be required to indemnify any Foreign Bank, or to pay any Additional Amounts to
any Foreign Bank, in respect of United States federal withholding tax pursuant to subsection (a) or
(b) above, (A) to the extent that the obligation to withhold amounts with respect to United States
federal withholding tax existed on the date such Foreign Bank became a Bank, became a party hereto
or otherwise acquired its interest herein or in the case of a Foreign Bank that after becoming a
party hereto changes its classification for United States federal income tax purposes under Section
7701 of the Code, United States federal withholding tax that exists on the date such change in
entity classification is effective, except to the extent that such Bank’s assignor (if any) was
entitled, at the time of assignment, to receive additional amounts from the Company or such Bank
was entitled, immediately prior to such change in entity classification becoming effective, to
receive additional amounts from the Company; (B) with respect to a change by such Foreign Bank of
the jurisdiction in which it is organized, incorporated, controlled or managed, or in which it is
doing business, from the date such Foreign Bank changed such jurisdiction, but only to the extent
that such withholding tax exceeds any withholding tax that would have been imposed on such Bank had
it not changed the jurisdiction in which it is organized, incorporated, controlled or managed, or
in which it is doing business; or (C) to the extent that the obligation to pay such indemnity
payment or Additional Amounts would not have arisen but for a failure by such Foreign Bank to
comply with the provisions of Section 11.4(d) or (f).

(h) If any Bank requests compensation under this Section 11.4, or if the Company is
required to pay any additional amount to any governmental authority for the account of any Bank
pursuant to this Section 11.4, then such Bank shall use reasonable efforts to designate a
different lending office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or Affiliates with the object of avoiding
or eliminating the amounts payable pursuant to this Section 11.4, provided that
such designation or assignment shall be on such terms that such Bank and its lending office, in
such Bank’s sole judgment, suffer no economic, legal, regulatory or other disadvantage and would
not otherwise be disadvantageous to such Bank. The Company hereby agrees to pay all reasonable
costs and expenses incurred by any Bank in connection with any such designation or assignment.

If Bank requests compensation under this Section 11.4, or if the Company is required to pay
any additional amount to any governmental authority for the account of any Bank pursuant to this
Section 11.4, then the Company may, at its sole expense and effort, upon notice to such Bank,
require such Bank to assign and delegate, without recourse, in accordance with and subject to the
restrictions contained in Section 11.1, all of such Bank’s interests, rights and
obligations under this Agreement to one or more assignees that shall assume such obligations (which
assignee or assignees may be one or more other Banks); provided that (i) such Bank shall
have received payment of an amount equal to the outstanding principal of its Loans, accrued and
unpaid interest thereon, accrued and unpaid fees and all other amounts payable to it hereunder from
the assignee (to the extent of such outstanding principal and accrued interest and fees) or the
Company (in the case of all other amounts) and (ii) such assignment will result in a reduction in
such compensation or payments. A Bank shall not be required to make any such assignment and
delegation if, prior thereto, as a result of a waiver by such Bank or otherwise, the circumstances
entitling the Company to require such assignment and delegation cease to apply.

A certificate of the relevant Bank setting forth the basis for any amounts (and the calculation
thereof and methodology in calculating, each in reasonable detail) claimed under this Section
11.4 shall be delivered to the Company and the Administrative Agent and shall be conclusive
absent manifest error. Failure or delay on the part of a Bank to demand compensation of any amount
under this Section shall not constitute a waiver of such Bank’s right to demand such compensation;
provided that the Company shall not be required to compensate any such Bank for any amounts
claimed under this Section that are incurred more than 90 days prior to the date that such Bank
notifies the Company of the circumstances giving rise to such amounts and such Bank’s intention to
claim compensation therefor; provided, further, that if the circumstances giving rise to
such amounts have retroactive effect, then the 90-day period referred to above shall be extended to
include the period of retroactive effect thereof.

(i) Any payment required to be made by the Company to any Bank under this Section 11.4
shall be deemed an Obligation and be secured by the Collateral.

Section 11.5 Choice of Law; Jurisdiction. THE LOAN DOCUMENTS (OTHER THAN THOSE
CONTAINING A CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL BE CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF ILLINOIS. The Company and the Banks hereby irrevocably submit to the
non-exclusive jurisdiction of any United States federal or Illinois state court sitting in Chicago,
Illinois in any action or proceedings arising out of or relating to any Loan Documents and the
Company and the Banks hereby irrevocably agree that all claims in respect of such action or
proceeding may be heard and determined in any such court. Each of the parties hereto agrees that a
final judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this
Agreement shall affect any right that any Agent or any Bank may otherwise have to bring any action
or proceeding relating to this Agreement against the Company or its properties in the courts of any
jurisdiction. Each party irrevocably consents to service of process in the manner provided for
notices in Section 13.1. Nothing in this Agreement will affect the right of any party to
this Agreement to serve process in any other manner permitted by law.

Section 11.6 Headings. Section headings in the Loan Documents are for convenience of
reference only, and shall not govern the interpretation of any of the provisions of the Loan
Documents.

Section 11.7 Entire Agreement. The Loan Documents embody the entire agreement and
understanding among the Company and the Banks and supersede all prior agreements and understandings
among the Company and the Banks relating to the subject matter thereof.

Section 11.8 Several Obligations. The respective obligations of the Banks hereunder
are several and not joint and no Bank shall be the partner or agent of any other. The failure of
any Bank to perform any of its obligations hereunder shall not relieve any other Bank from any of
its obligations hereunder.

Section 11.9 Expenses; Indemnification; Increased Costs; Damage Waiver.

(a) The Company shall reimburse (i) each Agent for any and all reasonable costs and
out-of-pocket expenses (including reasonable attorneys’ fees and time charges of attorneys) paid or
incurred by such Agent in connection with the syndication of the credit facility provided for
herein, the preparation and administration of this Agreement and the other Loan Documents or any
amendments, modifications or waivers of the provisions hereof or thereof (whether or not the
transactions contemplated hereby or thereby shall be consummated) and (ii) each Agent and each Bank
for any and all reasonable costs and out-of-pocket expenses (including reasonable attorneys’ fees
and time charges of attorneys) paid or incurred by such Agent or such Bank, as applicable, in
connection with the collection, liquidation and enforcement of the Loan Documents and/or the
Collateral. The Company further agrees to indemnify each Agent, each Bank and each Related Party of
any of the foregoing Persons (each an “Indemnified Party”) against all losses, claims, damages,
penalties, judgments, liabilities and expenses (including, without limitation, all expenses of
litigation or preparation therefor) which any of them may pay or incur arising out of or relating
to this Agreement, the other Loan Documents, the transactions contemplated hereby or the direct or
indirect application or proposed application of the proceeds of any Loan hereunder (all of the
foregoing being collectively referred to as “Indemnified Amounts”), excluding, however, in all of
the foregoing instances, Indemnified Amounts arising from the gross negligence or willful
misconduct on the part of the Indemnified Party seeking indemnification and Indemnified Amounts
consisting of taxes for which an indemnification is provided or specifically excluded from
indemnification pursuant to Section 11.4.

(b) If, after the date hereof, any law or any governmental rule, regulation, policy, guideline
or directive (whether or not having the force of law) is adopted, or there is any change in the
interpretation thereof, or the compliance of any Bank with such, which, in any case, affects the
amount of capital required or expected to be maintained by such Bank or any corporation controlling
such Bank, and such Bank reasonably determines the amount of capital required is increased by or
based upon the existence of this Agreement or its Commitment hereunder and such increased capital
results in increased costs to such Bank, then, such Bank shall notify the Company of such fact and
shall provide a reasonably detailed description of such increased costs in the notice (“Increased
Cost Notice”), together with documentation from the relevant regulatory body setting forth such
increased capital requirement, and the Company shall, in its sole discretion, determine whether to
terminate such Bank’s Commitment in accordance with Section 2.12. The Company will pay to
such Bank such additional amount or amounts as will compensate such Bank for any such increase of
cost suffered pursuant to Section 11.9(b). Any payment required to be made by the Company
under this Section 11.9(b) shall be deemed an Obligation and be secured by the Collateral.

(c) [Reserved]

(d) [Reserved]

(e) All amounts due under this Section 11.9 shall be payable promptly after written
demand therefor.

(f) To the extent permitted by applicable law, the Company shall not assert, and hereby
waives, any claim against the Administrative Agent or the Banks on any theory of liability, for
special, indirect, consequential or punitive damages (as opposed to direct or actual damages)
arising out of, in connection with, or as a result of, this Agreement or any agreement or
instrument contemplated hereby, or the use of the proceeds thereof.

(g) Each Bank shall indemnify the Administrative Agent, within 10 days after demand therefor,
for the full amount of any Taxes attributable to such Bank that are payable or paid by the
Administrative Agent, and reasonable expenses arising therefrom or with respect thereto, whether or
not such Taxes were correctly or legally imposed or asserted by the relevant government authority.
A certificate as to the amount of such payment or liability delivered to any Bank by the
Administrative Agent shall be conclusive absent manifest error.

Section 11.10 Accounting. Except as provided to the contrary herein, all accounting
terms used herein shall be interpreted and all accounting determinations hereunder shall be made in
accordance with GAAP.

Section 11.11 Severability of Provisions. Any provision in any Loan Document that is
held to be inoperative, unenforceable, or invalid in any jurisdiction shall, as to that
jurisdiction, be inoperative, unenforceable, or invalid without affecting the remaining provisions
in that jurisdiction or the operation, enforceability, or validity of that provision in any other
jurisdiction, and to this end the provisions of all Loan Documents are declared to be severable.

Section 11.12 Confidentiality. Each of the Banks and each Agent agrees to maintain the
confidentiality of the Company Information (as defined below), except that Company Information may
be disclosed (a) to its Affiliates and its Affiliates’ directors, officers, employees and agents,
including accountants, legal counsel and other advisors who have a need to know such information
(it being understood that the Persons to whom such disclosure is made will be informed of the
confidential nature of such Company Information and agree to keep such Company Information
confidential on terms substantially similar to this Section 11.12), (b) to the extent
required by any governmental agency, self-regulatory authority or representative thereof, (c) to
the extent required by applicable laws or regulations or by any subpoena or similar legal process
or to the extent reasonably required in connection with any litigation relating to this Agreement
or the Collateral to which such Bank or such Agent, as applicable, is a party, (d) subject to an
agreement containing provisions substantially the same as those described in this Section
11.12, to any Assignee or Participant, (e) with the consent of the Company, (f) to the extent
such Company Information becomes publicly available other than as a result of a breach of its
confidentiality obligations as described in this Section 11.12 or (g) to any other party to
this Agreement.

As used in this Section, “Company Information” means all information received from the Company
or any of its Subsidiaries or Affiliates relating to Holdings or any of its subsidiaries (including
the Company) or any of their respective Affiliates, or their businesses, other than any such
information that is available to any Agent or any Bank, as applicable, on a non-confidential basis
prior to disclosure by the Company.

Section 11.13 WAIVER OF TRIAL BY JURY. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH
OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT OF TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY MATTER
ARISING HEREUNDER OR THEREUNDER.

Section 11.14 USA Patriot Act Notification. The following notification is provided to
the Company pursuant to Section 326 of the USA Patriot Act:

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To help the government of
the United States of America fight the funding of terrorism and money laundering activities,
Federal law requires all financial institutions to obtain, verify, and record information that
identifies each Person that opens an account, including any deposit account, treasury management
account, loan, other extension of credit, or other financial services product. Accordingly, when
the Company opens an account, the Administrative Agent, the Collateral Agent and the Banks will ask
for the Company’s name, tax identification number, business address, and other information that
will allow the Administrative Agent, the Collateral Agent and the Banks to identify the Company.
The Administrative Agent, the Collateral Agent and the Banks may also ask to see the Company’s
legal organizational documents or other identifying documents.

ARTICLE XII

SETOFF; RATABLE PAYMENTS

Section 12.1 Setoff; Ratable Payments.

(a) In addition to, and without limitation of, any rights of the Banks or Agents under
applicable law, if the Company becomes insolvent, however evidenced, or any Default occurs and is
continuing, any indebtedness or other obligation owing from any Bank or Agent to the Company
(including all account balances, whether provisional or final and whether or not collected or
available but excluding (x) any accounts designated as or representing “customer segregated funds”
accounts and (y) any accounts pledged to such Bank to secure an overdraft facility to ensure the
settlement of foreign currency futures and options contracts traded on the exchange of the Company,
CBOT, NYMEX or any other exchange in respect of which the Company has equivalent authority) may be
offset and applied toward the payment of the Obligations owing to such Bank or Agent, as the case
may be, whether or not the Obligations, or any part thereof, shall then be due.

(b) Subject to Section 2.11, if any Bank, whether by setoff or otherwise, has payment
made to it upon any Loan in a greater proportion than that received by any other Bank upon any Loan
constituting a portion of the same Advance, such Bank shall distribute to the Administrative Agent
an amount equal to each of the other Banks’ pro rata share of such payment. Such payment shall be
distributed ratably between the Banks in proportion to each Bank’s respective share of the total
Obligations outstanding under this Agreement. Any payment distributed pursuant to this
subsection (b) to the Administrative Agent shall be distributed by the Administrative Agent
to the applicable Banks in accordance with the provisions of this Agreement.

(c) Subject to Section 2.11, if any Bank, whether in connection with setoff or amounts
which might be subject to setoff or otherwise, receives collateral or other protection for any
category of its Obligations or such amounts which may be subject to setoff, in any case, in excess
of its pro rata share thereof, such Bank agrees, promptly upon demand, to take such action
necessary such that all Banks share in the benefits of such collateral ratably in proportion to
their Obligations of the same category. In case any such payment is disturbed by legal process, or
otherwise, appropriate further adjustments shall be made.

(d) The Company agrees that any Participant in a Loan may exercise setoff rights as provided
by Section 12.1(a) as though it were a Bank with respect to its participating interest,
provided that such Participant has agreed that it shall be subject to Sections
12.1(b) and (c) as though it were a Bank.

ARTICLE XIII

NOTICES

Section 13.1 Giving Notice. (a) Except as otherwise herein provided, any notice
required or permitted to be given under this Agreement shall be in writing and shall be deemed
delivered (i) upon receipt if sent by an overnight courier service, or (ii) when sent by facsimile,
telex, email or SWIFT message, in each case, addressed to the Company, the Agents and the Banks at
the addresses or transmission numbers indicated below their signatures to the Agreement or
otherwise notified to the Company, the Agents or the Banks, as applicable.

(b) (i) Email transmissions of the Company in respect of any Advance Request required pursuant
to Section 3.1(a) shall be sent to the following address:

cme—jpm—loan—agency@jpmorgan.com

(ii) Email transmissions of the Company in respect of any Collateral Notice
required pursuant to Section 3.1(a) shall be sent to the following address:

cme—jpm—collateral@jpmorgan.com

Section 13.2 Change of Address. The Company, any Agent and any Bank may each change
the address for service of notice upon it by a notice in writing to the other parties hereto.

ARTICLE XIV

COUNTERPARTS

This Agreement may be executed in any number of counterparts, all of which taken together
shall constitute one agreement, and any of the parties hereto may execute this Agreement by signing
any such counterpart. Delivery of an executed signature page by facsimile or email shall be
effective as delivery of a manually executed counterpart hereof. This Agreement shall be effective
when it has been executed by the Company, the Agents and the Banks.

ARTICLE XV

SUBORDINATION

The Company hereby subordinates its Lien on the Collateral to the Lien therein granted to the
Collateral Agent pursuant to the Collateral Documents and the Company shall not take any action of
any nature whatsoever to enforce its Lien until all of the Obligations have been paid in full and
the Commitments have been terminated.

(Signature Pages Follow)

IN WITNESS WHEREOF, the Company, the Agents and the Banks have executed this Agreement
as of the date first above written.

CHICAGO MERCANTILE EXCHANGE INC.

(a Delaware corporation)

	 	 	 
	By:/s/ Kimberly S. Taylor

	Name:

Title:

	 	Kimberly S. Taylor

Managing Director & President,

Clearing House Division

20 South Wacker Drive

Chicago, Illinois 60606

Fax: (312) 930-3187

S.W.I.F.T.: XCMEUS4C

Kim.Taylor@cmegroup.com

Attention: Managing Director & President,

Clearing House Division

With a copy to:

20 South Wacker Drive

Chicago, Illinois 60606

Fax: (312) 930-3187

S.W.I.F.T.: XCMEUS4C

Attention: General Counsel

1

Commitments

$75,000,000

JPMORGAN CHASE BANK, N.A.,

individually and as Administrative Agent and

Collateral Agent

By:/s/ Brian Mittelstaedt

Name: Brian Mittelstaedt

Title: Vice President

277 Park Avenue, 36th Floor

New York, New York 10172

Fax: (212) 270-1511

Attention: Brian Mittelstaedt

brian.h.mittelstaedt@jpmorgan.com

If to the Administrative Agent:

JPMorgan Chase Bank

Investment Bank Loan Operations – North America

1111 Fannin Street, 10th Floor

Houston, Texas 77002

(713) 374-4312 (facsimile)

(713) 750-3560 (confirm)

Attn: Carla M. Kinney

cme—jpm—loan—agency@jpmorgan.com, and

carla.m.kinney@chase.com

with a copy to:

JPMorgan Chase Bank

Investment Bank Loan Operations – North America

1111 Fannin Street, 10th Floor

Houston, Texas 77002

(713) 374-4312 (facsimile)

(713) 750-6416 (confirm)

Attn: Siraz X. Maknojia

siraz.x.maknojia@jpmorgan.com

If to the Collateral Agent

JPMorgan Chase Bank, N.A.

Investment Bank Securities Operations (MC: DE3-5000)

500 Stanton Christiana Road, Ops 4, Floor 03

Newark, Delaware, 19713-2107

(917) 464-9985 (facsimile)

(302) 552-0835 (confirm)

Attn: Marc Sendra

cme—jpm—collateral@jpmorgan.com, and

marc.sendra@jpmorgan.com

JPMorgan Chase Bank, N.A.

Investment Bank Securities Operations (MC: DE3-5000)

500 Stanton Christiana Road, Ops 4, Floor 03

Newark, Delaware, 19713-2107

(917) 464-9985 (facsimile)

(302) 552-0017

Attn: Laura Smith

laura.j.smith@jpmorgan.com

JPMorgan Chase Bank, N.A.

Investment Bank Securities Operations (MC: DE3-5000)

500 Stanton Christiana Road, Ops 4, Floor 03

Newark, Delaware, 19713-2107

(917) 464-9985 (facsimile)

(302) 552-0637 (confirm)

Attn: Lori Klinikowski

lori.l.klinikowski@jpmorgan.com

JPMorgan Chase Bank, N.A.

Investment Bank Securities Operations (MC: DE3-5000)

500 Stanton Christiana Road, Ops 4, Floor 03

Newark, Delaware, 19713-2107

(917) 464-9985 (facsimile)

(302) 552-0920

Attn: Jason Kyler

jason.l.kyler@jpmorgan.com

2

BANK OF MONTREAL,

as Syndication Agent

By:/s/ Scott Ferris

Name: Scott Ferris

Title: Managing Director

111 West Monroe Street

Chicago, Illinois 60603

Fax: 312-765-8201

Attention: Adam Tarr

3

$75,000,000

HARRIS NA,

as a Bank

	 	 	 
	By:/s/ Linda Haven

	Name:

Title:

	 	Linda Haven

Managing Director

111 West Monroe Street

Chicago, Illinois 60603

Fax: 312-765-8201

Attention: Adam Tarr

4

$75,000,000

BANK OF AMERICA, N.A.,

individually and as Co-Syndication Agent

	 	 	 
	By:/s/ Maryanne Fitzmaurice

	Name:

Title:

	 	Maryanne Fitzmaurice

Senior Vice President

335 Madison Avenue, 5th Floor

New York, NY 10017

Fax: 704-683-9184

Attention: Maryanne Fitzmaurice

Maryanne.fitzmaurice@baml.com

5

$60,000,000

CITIBANK, N.A.,

as a Bank

	 	 	 
	By:/s/ William Mandaro

	Name:

Title:

	 	William Mandaro

Director

388 Greenwich Street

New York, NY 10013

Fax: 646-688-6821

Email: William.mandaro@citi.com

6

$60,000,000

The Bank of Tokyo-Mitsubishi, UFJ, Ltd.

New York Branch,

as a Bank

	 	 	 
	By:/s/ Chimie T. Pemba

	Name: Chimie T. Pemba

	Title:

	 	Authorized Signaory

1251 Avenue of the Americas

New York, NY 10020

(212) 782-6440

cpemba@us.mufg.jp

Attention: Chimie T. Pemba

7

$50,000,000

Barclays Bank PLC,

as a Bank

	 	 	 
	By:/s/ Kevin Cullen

	Name: Kevin Cullen

	Title:

	 	Director

Barclays Bank PLC

745 Seventh Avenue

New York, NY 10019

Attention: Kevin Cullen/Alicia Borys

Telephone: (212) 526-4979/(212) 526-4291

Telecopy: (212) 526-5115/(212) 526-5115

Email: Kevin.cullen@barcap.com

Alicia.borys@barcap.com

ltmny@barcap.com

8

$50,000,000

DEUTSCHE BANK AG NEW YORK BRANCH,

as a Bank

	 	 	 
	By:/s/ Robert Chesley

	Name: Robert Chesley

	Title:

	 	Director

9

	 	 	 
	 	 	By:/s/ John S. McGill	 
	 	 	Name: John S. McGill	 
	 	 	Title:	 	 	Director
	60 Wall Street
	

	New York, NY 10005
	

	Fax: 212-797-0272
	

	Attn: Robert Chesley
	

	Robert.Chesley@db.com

$50,000,000

LLOYDS TSB BANK PLC,

as a Bank

	 	 	 
	By:/s/ Shane Klein

	Name: Shane Klein

	Title:

	 	Senior Vice President K042

10

	 	 	 
	 	 	By:/s/ Candi Obrentz	 
	 	 	Name: Candi Obrentz	 
	 	 	Title:	 	 	Vice President O013
	1095 Avenue of the Americas, 34 Floor
	

	New York, NY 10036
	

	Attention: Shane Klein
	

	Shane.klein@us.lloydsbanking.com

$50,000,000

Mizuho Corporate Bank, Ltd.,

as a Bank

	 	 	 
	By:/s/ David Lim

	Name:

Title:

	 	David Lim

Authorized Signatory

1251 Avenue of the Americas

32nd Floor

New York, NY 10020

Fax: 212-282-4488

Attention: Andre Liu

Andre.liu@mizuhocbus.com

11

$50,000,000

The Bank of New York Mellon,

as a Bank

	 	 	 
	By:/s/ Steven J. Correll

	Name: Steven J. Correll

	Title:

	 	Managing Director

One Wall Street, 19th Floor

New York, NY 10286

Fax: 704-683-9184

Attention: Steven J. Correll

Steven.correll@bnymellon.com

12

$50,000,000

UBS LOAN FINANCE LLC,

as a Bank

	 	 	 
	By:/s/ Irja R. Otsa

	Name: Irja R. Otsa

	Title:

	 	Associate Director

13

	 	 	 
	 	 	By:/s/ April Varner-Nanton	 
	 	 	Name: April Varner-Nanton	 
	 	 	Title:	 	 	Director
	677 Washington Blvd.
	

	Stamford, CT 06901
	

	Fax: (203) 719-3390
	

	Email: Andres.lasso@ubs.com
	

	Attention: Andres Lasso

$50,000,000

WELLS FARGO BANK, NATIONAL

ASSOCIATION,

as a Bank

	 	 	 
	By:/s/ David J. Bendel

	Name: David J. Bendel

	Title:

	 	Director

90 S. 7th Street, MAC N9305-075

Minneapolis, Minnesota 55117

Fax: 612-667-7251

Email: David.J.Bendel@wellsfargo.com

Attention: Dave Bendel

14

$40,000,000

FIFTH THIRD BANK,

as a Bank

	 	 	 
	By:/s/ Joseph A. Wemhoff

	Name: Joseph A. Wemhoff

	Title:

	 	Vice President

222 S. Riverside Plaza, GRVR0D

Chicago, Illinois 60606

Fax: 312-704-7365

Email: joseph.wemhoff@53.com

Attention: Joseph A. Wemhoff

15

$40,000,000

HSBC BANK USA, N.A.,

as a Bank

	 	 	 
	By:/s/ Paul Silvester

	Name: Paul Silvester

	Title:

	 	Deputy Head of FIG Americas

425 Fifth Avenue, 8th Floor

New York, NY 10018

Fax: 212-525-2441

Attention: Paul Silvester

Paul.Silvester.us.hsbc.com

16

$40,000,000

PNC Bank, N.A.,

as a Bank

	 	 	 
	By:/s/ Cara Gentile

	Name: Cara Gentile

	Title:

	 	Vice President

1600 Market Street, 21st Floor

Philadelphia, PA 19103

Fax: 215-585-7374

Attention: Cara Gentile

Cara.gentile@pnc.com

17

$40,000,000

STATE STREET BANK AND TRUST

COMPANY,

as a Bank

	 	 	 
	By:/s/ Juan G. Sierra

	Name:

Title:

	 	Juan G. Sierra

Vice President

Credit Services

Copley Place Tower

Box 5303

Boston, Massachusetts 02206

For overnight delivery Please Use:

State Street Bank and Trust Company

4 Copley Place, 5th Floor

Boston, MA 02116

Fax: 617-662-8665

Email: jgsierra@statestreet.com

Attention: Juan G. Sierra

18

$40,000,000

THE BANK OF NOVA SCOTIA,

as a Bank

	 	 	 
	By:/s/ David Mahmood

	Name: David Mahmood

	Title:

	 	Managing Director

1 Liberty Plaza

New York, NY 10006

Fax: 212-225-5254

Attention: Madelaine Baker, Erin Fogarty

19

$40,000,000

U.S. Bank National Association,

as a Bank

	 	 	 
	By:/s/ Kathleen D. Schurr

	Name: Kathleen D. Schurr

	Title:

	 	Vice President

209 South LaSalle St., Suite 410

Chicago, IL 60604

Fax: 312-325-8754

Attention: Kathleen Schurr

Kathleen.Schurr@USBank.com

20

$25,000,000

Banca Monte dei Paschi di Siena S.p.A, New York

Branch,

as a Bank

	 	 	 
	By:/s/ Renato Bassi

	Name:

Title:

	 	Renato Bassi

Senior Vice President & General Manager

21

	 	 	 
	 	 	By:/s/ Brian R. Landy	 
	 	 	Name:	 	 	Brian R. Landy
	 	 	Title:	 	 	Vice President
	55 East 59th Street
	

	New York, NY 10022
	

	Fax: 212-891-3661
	

	Email: Nicolas.Kanaris@banca.mps.it
	

	Attn: Nicolas Kanaris, V.P.

$20,000,000

BANK OF COMMUNICATIONS CO., LTD.,

NEW YORK BRANCH,

as a Bank

	 	 	 
	By:/s/ Shelley He

	Name:

Title:

	 	Shelley He

Deputy General Manager

One Exchange Plaza/55 Broadway, 31st Floor

New York, NY 10006-3008

Fax: (212) 376-8089

Email: helenlui@bocomny.com

Attention: Helen Lui

22

$20,000,000

Brown Brothers Harriman & Co.,

as a Bank

	 	 	 
	By:/s/ Ann Hobart

	Name: Ann Hobart

	Title:

	 	Senior Vice President

140 Broadway

New York, NY 10005

Fax: 212-493-8065

Attention: Ann Hobart

ann.hobart@bbh.com

23exh4_2.htm

 

Exhibit 4.2

 

EXECUTION VERSION

 

 

INDENTURE

 

between

 

LEAF FUNDING SPE 1, LLC,

 

as Issuer,

 

U.S. BANK NATIONAL ASSOCIATION,

 

as Trustee and Custodian

 

 

 

Equipment Contract Backed Notes, Series 2010-4, Class A

Equipment Contract Backed Notes, Series 2010-4, Class B-1

and

Equipment Contract Backed Notes, Series 2010-4, Class B-2

 

 

Dated as of August 20, 2010

 

 

  

  

  

 

TABLE OF CONTENTS

 

	  	  	
PAGE

	
ARTICLE I DEFINITIONS

	  	
2

	
Section 1.01

	
Definitions

	
2

	
Section 1.02

	
Certain Rules of Construction

	
2

	  	  	  
	
ARTICLE II NOTE FORM

	  	
2

	
Section 2.01

	
Form Generally

	
2

	
Section 2.02

	
Multiple Classes of Notes; Form for Each Class; Rights of Each Class

	
2

	
Section 2.03

	
Denomination

	
4

	
Section 2.04

	
Execution, Authentication, Delivery and Dating

	
4

	
Section 2.05

	
[Reserved]

	
4

	
Section 2.06

	
Registration, Registration of Transfer and Exchange

	
4

	
Section 2.07

	
Mutilated, Destroyed, Lost or Stolen Note

	
9

	
Section 2.08

	
Payment of Principal and Interest; Rights Preserved

	
10

	
Section 2.09

	
Persons Deemed Owner

	
11

	
Section 2.10

	
Cancellation

	
11

	
Section 2.11

	
Tax Treatment; Withholding Taxes

	
11

	  	  	  
	
ARTICLE III Acquisitions of CONTRACTS

	  	
12

	
Section 3.01

	
Conditions to the Acquisition of Contracts

	
12

	  	  	  
	
ARTICLE IV ISSUANCE OF NOTES; CERTAIN ISSUER AND CUSTODIAN OBLIGATIONS

	  	
14

	
Section 4.01

	
Conditions to Issuance of Notes

	
14

	
Section 4.02

	
Security for Notes

	
17

	
Section 4.03

	
Review of Contract Files

	
18

	
Section 4.04

	
Defective Contracts

	
19

	
Section 4.05

	
Reserved

	
20

	
Section 4.06

	
Administration of the Contract Assets

	
20

	
Section 4.07

	
Releases

	
20

	  	  	  
	
ARTICLE V SATISFACTION AND DISCHARGE

	  	
21

	
Section 5.01

	
Satisfaction and Discharge of Indenture

	
21

	  	  	  
	
ARTICLE VI DEFAULTS AND REMEDIES

	  	
22

	
Section 6.01

	
Events of Default

	
22

	
Section 6.02

	
Acceleration of Maturity; Rescission and Annulment

	
23

	
Section 6.03

	
Collection of Indebtedness and Suits for Enforcement by Trustee

	
24

	
Section 6.04

	
Remedies

	
24

 

  

i

  

 

 

 

	 	 	
PAGE

	
Section 6.05

	
Optional Preservation of Collateral

	
25

	
Section 6.06

	
Trustee May File Proofs of Claim

	
25

	
Section 6.07

	
Trustee May Enforce Claims Without Possession of Notes

	
26

	
Section 6.08

	
Application of Money Collected

	
26

	
Section 6.09

	
[Reserved]

	
27

	
Section 6.10

	
Unconditional Right of the Noteholders to Receive Principal and Interest

	
27

	
Section 6.11

	
Restoration of Rights and Remedies

	
27

	
Section 6.12

	
Rights and Remedies Cumulative

	
27

	
Section 6.13

	
Delay or Omission Not Waiver

	
27

	
Section 6.14

	
Control by Control Party

	
27

	
Section 6.15

	
Waiver of Certain Events by the Control Party

	
28

	
Section 6.16

	
Additional Rights of Subordinate Noteholders

	
28

	
Section 6.17

	
Waiver of Stay or Extension Laws

	
29

	
Section 6.18

	
Sale of Collateral

	
29

	
Section 6.19

	
Action on Notes

	
30

	  	  	  
	
ARTICLE VII THE TRUSTEE

	  	
30

	
Section 7.01

	
Certain Duties and Immunities

	
30

	
Section 7.02

	
Notice of Default and Other Events

	
32

	
Section 7.03

	
Certain Rights of Trustee

	
32

	
Section 7.04

	
Not Responsible for Recitals or Issuance of Notes

	
34

	
Section 7.05

	
May Hold Notes

	
34

	
Section 7.06

	
Money Held in Trust

	
35

	
Section 7.07

	
Compensation and Reimbursement

	
35

	
Section 7.08

	
Corporate Trustee Required; Eligibility

	
36

	
Section 7.09

	
Resignation and Removal; Appointment of Successor

	
36

	
Section 7.10

	
Acceptance of Appointment by Successor

	
37

	
Section 7.11

	
Merger, Conversion, Consolidation or Succession to Business of Trustee

	
38

	
Section 7.12

	
Co-Trustees and Separate Trustees

	
38

	
Section 7.13

	
Maintenance of Office or Agency; Initial Appointment of Payment Agent

	
39

	
Section 7.14

	
Appointment of Authenticating Agent

	
39

	
Section 7.15

	
Appointment of Paying Agent other than Trustee; Money for Note Payments to be Held in Trust

	
41

	
Section 7.16

	
Rights with Respect to the Servicer and Back-up Servicer

	
42

	
Section 7.17

	
Representations and Warranties of the Trustee

	
42

	  	  	  
	
ARTICLE VIII THE CUSTODIAN

	  	
43

	
Section 8.01

	
Appointment of Custodian

	
43

	
Section 8.02

	
Removal of Custodian

	
43

	
Section 8.03

	
Termination by Custodian

	
44

	
Section 8.04

	
Limitations on the Custodian’s Responsibilities

	
44

	
Section 8.05

	
Limitation on Liability

	
45

 

 

  

ii

  

 

	 	 	PAGE
	
Section 8.06

	
Custodian Obligations Regarding Genuineness of Documents

	
46

	
Section 8.07

	
Force Majeure

	
46

	  	  	  
	
ARTICLE IX [RESERVED]

	  	
46

	  	  	  
	
ARTICLE X SUPPLEMENTAL INDENTURES

	  	
46

	
Section 10.01

	
Supplemental Indentures without Consent of the Noteholders

	
46

	
Section 10.02

	
Supplemental Indentures with Consent of the Noteholders

	
47

	
Section 10.03

	
Execution of Supplemental Indentures

	
48

	
Section 10.04

	
Effect of Supplemental Indentures

	
48

	
Section 10.05

	
Reference in Notes to Supplemental Indentures

	
48

	
Section 10.06

	
Back-Up Servicer Consent

	
49

	
Section 10.07

	
Amendments to the Lockbox Intercreditor Agreement

	
49

	  	  	  
	
ARTICLE XI REDEMPTIONS AND PREPAYMENTS OF NOTES

	  	
49

	
Section 11.01

	
Redemptions of Notes

	
49

	
Section 11.02

	
Redemption Procedures

	
49

	
Section 11.03

	
Notice of Redemption to Noteholders

	
50

	
Section 11.04

	
Amounts Payable on Redemption Date

	
50

	
Section 11.05

	
Release of Contract Assets in Connection with Redemptions

	
51

	  	  	  
	
ARTICLE XII REPRESENTATIONS, WARRANTIES AND COVENANTS

	  	
51

	
Section 12.01

	
Representations and Warranties

	
51

	
Section 12.02

	
Covenants

	
57

	  	  	  
	
ARTICLE XIII ACCOUNTS AND ACCOUNTINGS

	  	
63

	
Section 13.01

	
Collection of Money

	
63

	
Section 13.02

	
Establishment of Trust Accounts

	
63

	
Section 13.03

	
Collection Account

	
65

	
Section 13.04

	
Reserve Account

	
67

	
Section 13.05

	
[Reserved]

	
67

	
Section 13.06

	
Prefunding Account

	
68

	
Section 13.07

	
Capitalized Interest Account

	
68

	
Section 13.08

	
Reports to the Noteholders

	
68

	
Section 13.09

	
Monthly Servicing Reports

	
69

	  	  	  
	
ARTICLE XIV PROVISIONS OF GENERAL APPLICATION

	
69

	
Section 14.01

	
General Provisions

	
69

	
Section 14.02

	
Acts of Noteholders

	
69

	
Section 14.03

	
Notices

	
70

	
Section 14.04

	
Notices to Noteholders; Waiver

	
71

	
Section 14.05

	
Successors and Assigns

	
71

  

iii

  

	 	 	PAGE
	
Section 14.06

	
Severability; No Waiver

	
71

	
Section 14.07

	
Benefits of Indenture Limited to Parties and Express Third Party Beneficiaries

	
71

	
Section 14.08

	
Legal Holidays

	
71

	
Section 14.09

	
Governing Law; Waiver of Jury Trial; Consent to Jurisdiction

	
72

	
Section 14.10

	
Counterparts; Entire Agreement

	
72

	
Section 14.11

	
Notifications

	
72

	
Section 14.12

	
No Petition

	
72

	
Section 14.13

	
Assignment

	
73

 

Schedule I                           Contract Schedule

Schedule II                           Definitions Annex

  

iv

  

 

 

	
 EXHIBITS 

	
 

 

 

	
A-1

	
Form of Class A Note

	
A-2

	
Form of Class B-1 Note

	
A-3

	
Form of Class B-2 Note

	
B-1

	
Form of Request for Release

	
B-2

	
Form of Return of Documents to Custodian

	
C

	
Form of Custodian and Trustee Certificate Re:  Substitutions

	
D

	
Form of Release Agreement Re:  Existing Indebtedness

	
E

	
Form of Investor Certificate

	
F

	
Form of Transfer Certificate

  

v

  

 

This Indenture, dated as of August 20, 2010 (as amended, supplemented or modified from time to time, this “Indenture”), is entered into between LEAF FUNDING SPE 1, LLC, a Delaware limited liability company, as Issuer and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as Trustee and as Custodian.

 

 

PRELIMINARY STATEMENT

 

The Issuer has duly authorized the execution and delivery of this Indenture to provide for the issuance of its Equipment Contract Backed Notes, Series 2010-4 (the “Notes”), issuable as provided in this Indenture.  All covenants and agreements made by the Issuer herein are for the benefit and security of the Noteholders.  The Issuer and the Custodian are entering into this Indenture, and the Trustee is accepting the trusts created hereby, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged.

 

All things necessary to make this Indenture a valid agreement of the Issuer, the Trustee and the Custodian in accordance with its terms have been done.

 

 

GRANTING CLAUSE

 

To secure the payment of the principal of and interest on the Notes in accordance with their terms, the payment of all sums payable under this Indenture and the other Transaction Documents and the performance of the covenants contained in this Indenture and the other Transaction Documents, the Issuer hereby Grants to the Trustee, solely in trust and as collateral security as provided in this Indenture, for the benefit of the Secured Parties, a security interest in all of the Issuer’s “accounts,” “deposit accounts,” “chattel paper,” “payment intangibles,” “commercial tort claims,” “supporting obligations,” “promissory notes,” “letter-of-credit rights,” “documents,” “goods,” “fixtures,” “general intangibles,” “instruments,” “inventory,” “equipment,” “investment property,” “proceeds” (as each of the foregoing terms is defined in the UCC), rights, interests and property (whether now owned or hereafter acquired or arising), including the Issuer’s right, title and interest (whether now owned or hereafter acquired or arising) in and to and under the following:  (a) the Contracts listed on the Contract Schedule; (b) the related Contract Assets; (c)  the Assignment Agreements; (d) any rights of the Issuer under the Purchase and Contribution Agreement; (e) any rights of the Issuer under the Servicing Agreement; (f) the Reserve Account, Collection Account, Prefunding Account and Capitalized Interest Account and all amounts from time to time on deposit therein (including any Eligible Investments, investment property and other property at any time and from time to time in such accounts); (g) all amounts from time to time on deposit in the Lockbox Account with respect to the Contracts and the Equipment; (h) the interest of the Issuer in the Equipment; (i) any Insurance Policy and Insurance Proceeds; and (j) all income, payments and proceeds of the foregoing (including, but not by way of limitation, all cash proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance proceeds, condemnation awards, rights to payment of any and every kind, investment property and other forms of obligations and receivables which at any time constitute all or part or are included in the proceeds of any of the foregoing) (all of the foregoing being hereinafter referred to as the “Collateral”).  The foregoing Grant, transfer, assignment, set over and conveyance does not constitute and is not intended to result in a creation or an assumption by the Trustee or the Secured Parties of any obligation of the Issuer, the Servicer or any other Person in connection with the Collateral or under any agreement or instrument relating thereto.  In furtherance and not in limitation of the foregoing, the Issuer hereby assigns to the Trustee, for the benefit of the Secured Parties, all of its right, title and interest in and to all liens and security interests in any assets, and all UCC financing statements related thereto. Notwithstanding the foregoing, Security Deposits shall not constitute part of the Collateral.

 

 

  

 

  

 

 

The Trustee acknowledges its acceptance on behalf of the Secured Parties of a security interest in all of the Issuer’s right, title and interest in and to the Collateral and declares that it shall maintain the Collateral in accordance with the provisions hereof.

 

ARTICLE I

DEFINITIONS

 

Section 1.01                      Definitions. Except as otherwise expressly provided herein or unless the context otherwise requires, capitalized terms used but not otherwise defined herein have the meaning set forth in the Definitions Annex attached hereto as Schedule II.

 

Section 1.02                      Certain Rules of Construction.  Unless the context of this Indenture clearly requires otherwise:  (a) references to the plural include the singular and to the singular include the plural; (b) references to any gender include any other gender; (c) the words “include” and “including” are not limiting; (d) the words “hereof,” “herein,” “hereby,” and “hereunder,” and any other similar words, refer to this Indenture as a whole and not to any particular provision hereof; and (e) article, section, subsection, clause, exhibit, and schedule references are to this Indenture.  Article, section, and subsection headings are for convenience of reference only, shall not constitute a part of this Indenture for any other purpose, and shall not affect the construction of this Indenture.  All exhibits and schedules attached hereto are incorporated herein by this reference.  Any reference herein to this Indenture or any other agreement, document, or instrument includes all permitted alterations, amendments, changes, extensions, modifications, renewals, or supplements thereto or thereof, as applicable.

 

ARTICLE II

NOTE FORM

 

Section 2.01                      Form Generally. The Notes and the related certificates of authentication shall be in substantially the form described in this Indenture, with such appropriate insertions, omissions, substitutions and other variations as are expressly required or permitted by this Indenture.  The Notes may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon, as may, consistently herewith, be determined appropriate by the officers executing such Notes, as evidenced by their execution of the Notes.  The terms of each Note are intended to be incorporated into this Indenture.

 

Section 2.02                      Multiple Classes of Notes; Form for Each Class; Rights of Each Class.  This Indenture provides for the issuance by the Issuer of three classes of Notes, the Class A Notes, the Class B-1 Notes and the Class B-2 Notes.  Each Note shall bear upon its face the designation of the Class to which it belongs.  Each Class A Note shall be in the form of Exhibit A-1 attached hereto. Each Class B-1 Note shall be in the form of Exhibit A-2 attached hereto. Each Class B-2 Note shall be in the form of Exhibit A-3 attached hereto. All Notes in the same Class shall be in substantially identical form except for differences in registration information and denomination and such other variations as may be permitted by this Indenture.

 

 

 

  

- 2 -

  

 

 

(a)           Notes.  The Class A Notes are being offered and sold by the Issuer to the Initial Class A Purchaser pursuant to the Note Purchase Agreement, the Class B-1 Notes are being offered and sold by the Issuer to the Initial Class B-1 Purchaser pursuant to the Note Purchase Agreement and the Class B-2 Notes are being offered and sold by the Issuer to the Initial Class B-2 Purchaser pursuant to the Note Purchase Agreement.

 

Notes offered and sold to QIBs in reliance on Rule 144A shall be issued initially in the form of certificated definitive, fully registered Notes (any such Notes, the “Notes”), which shall be duly executed by the Issuer and authenticated by the Trustee as hereinafter provided and delivered by the Trustee to the applicable Noteholders in accordance with the Note Purchase Agreement. The Notes shall be typewritten, printed, lithographed or engraved or produced by any combination of these methods, all as determined by the officers executing such Notes, as evidenced by their execution of such Notes.  The aggregate principal amount of the Notes may from time to time be increased (up to the maximum authorized amount) or decreased by adjustments made on the records of the Trustee as hereinafter provided.  The records of the Trustee shall be controlling with regard to the outstanding principal amount of Notes hereunder absent manifest error.

 

Each Note shall represent such of the outstanding Notes as shall be specified therein and each shall provide that it shall represent the aggregate amount of outstanding Notes from time to time endorsed thereon and that the aggregate amount of outstanding Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions.  Any endorsement of a Note to reflect the amount of any increase or decrease in the amount of outstanding Notes represented thereby shall be made by the Trustee, or by the Note Registrar at the direction of the Trustee, in accordance with instructions given by the Holder thereof as required by Section 2.07 hereof.

 

(b)           Each Note issued under this Indenture shall be in all respects equally and ratably secured with each other Note by the Collateral Granted by the Issuer hereunder.  Each Note shall be entitled to the benefits hereof, without preference, priority or distinction on account of the actual time or times of authentication and delivery, all in accordance with the terms and provisions of this Indenture.  Notwithstanding the foregoing, all cash amounts shall be applied by the Trustee in accordance with the express provisions hereof and

 

(I)           the rights of the Holders of the Class B-1 Notes (1) to receive payments of interest in respect of the Class B-1 Notes on any Payment Date, on the Stated Maturity Date or on the Redemption Date shall be subordinate to the rights of the Holders of Class A Notes to receive payment of interest on the Class A Notes and to certain other payments as set forth in Section 13.03 and others entitled to receive payments thereunder and (2) to receive payments of principal in respect of the Class B-1 Notes on any Payment Date, on the Stated Maturity Date or on the Redemption Date shall be subordinate to the rights of the Holders of the Class A Notes to receive principal paid on the Class A Notes and to certain other payments, as set forth in Section 13.03 and others entitled to receive payments thereunder; and

 

 

  

- 3 -

  

 

(II)           the rights of the Holders of the Class B-2 Notes (1) to receive payments of interest in respect of the Class B-2 Notes on any Payment Date, on the Stated Maturity Date or on the Redemption Date shall be subordinate to the rights of the Holders of Class A Notes and the Class B-1 Notes to receive payment of interest on the Class A Notes and the Class B-1 Notes and to certain other payments as set forth in Section 13.03 and others entitled to receive payments thereunder and (2) to receive payments of principal in respect of the Class B-2 Notes on any Payment Date, on the Stated Maturity Date or on the Redemption Date shall be subordinate to the rights of the Holders of the Class A Notes to receive principal paid on the Class A Notes and the rights of the Holders of the Class B-1 Notes to receive principal paid on the Class B-1 Notes and to certain other payments, as set forth in Section 13.03 and others entitled to receive payments thereunder.

 

Section 2.03                      Denomination.  The maximum aggregate stated principal amount of the Class A Notes that may be authenticated and delivered under this Indenture is $20,000,000, the maximum aggregate stated principal amount of the Class B-1 Notes that may be authenticated and delivered under this Indenture is $750,000 and the maximum aggregate stated principal amount of the Class B-2 Notes that may be authenticated and delivered under this Indenture is $750,000, except for Notes authenticated and delivered upon registration of transfer, or in exchange for, or in lieu of, other Notes pursuant to Sections 2.06, 2.08 or 10.05.  The Notes shall be issuable only as registered Notes without coupons in the denominations of at least $100,000 with respect to any Note and multiples of $1,000 for any amount in excess thereof; provided that the foregoing shall not restrict or prevent the transfer, in accordance with Sections 2.06 and 2.07, of any “stub” Note with a remaining Outstanding Note Balance of less than $100,000 with respect to any Note.

 

Section 2.04                      Execution, Authentication, Delivery and Dating.  The Notes shall be executed on behalf of the Issuer by the manual or facsimile signature of one of its authorized officers.  Notes bearing the manual or facsimile signatures of individuals who were at any time authorized officers of the Issuer shall bind the Issuer, notwithstanding that such individuals or any of them have ceased to hold such offices subsequent to the authentication or delivery of such Notes.

 

Each Note shall be dated as of the date of its authentication.  No Note shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose, unless there appears on such Note a certificate of authentication substantially in the form provided for herein executed by the Trustee upon receipt of an Issuer Order or by any Authenticating Agent by the manual signature of one of its authorized officers, and such certificate upon any Note shall be conclusive evidence, and the only evidence, that such Note has been duly authenticated and delivered hereunder.

 

Section 2.05                      [Reserved].

 

Section 2.06                      Registration, Registration of Transfer and Exchange.

 

 

  

- 4 -

  

 

 

              (a)           The Issuer shall cause to be kept a register (the “Note Register”) at the office of an agent (the “Note Registrar”), in accordance with Section 7.13, and in which, subject to such reasonable regulations as it may prescribe, the Note Registrar shall, on behalf of the Issuer, provide for the registration, issuance and ownership of the Notes and the registration of transfers of the Notes.  The Trustee is hereby appointed the initial Note Registrar.  Each Noteholder and, if the Note Registrar is someone other than the Trustee, the Trustee shall have the right to examine the Note Register at all reasonable times and to rely conclusively upon an Officer’s Certificate of the Note Registrar as to the names and addresses of the Noteholders and the principal amounts and numbers of such Notes as held.

 

(b)           The Notes have not been registered under the Securities Act or the securities laws of any jurisdiction.  Consequently, the Notes are not transferable other than pursuant to Rule 144A or another exemption from registration.  Each Person who has or who acquires any Ownership Interest in a Note shall be deemed by the acceptance or acquisition of such Ownership Interest to have agreed to be bound by the provisions of this Section 2.06.

 

(c)           With respect to any Note, at the option of the Noteholder thereof, Notes may be exchanged for other Notes of any authorized denominations (together with any “stub note” reflecting the remaining principal balance of such Note(s) that is less than the minimum authorized denomination), aggregate principal amount and Stated Maturity Date, upon surrender of the Notes to be exchanged at the Corporate Trust Office.  Whenever any Notes are so surrendered for exchange, the Issuer shall execute, and the Trustee or its agents shall authenticate and deliver, the Notes which the Noteholder making the exchange is entitled to receive.

 

(d)           With respect to any Note, any Note presented or surrendered for registration of transfer or exchange shall be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Trustee duly executed.  All Notes issued upon any registration of transfer or exchange of Notes shall be the valid obligations of the Issuer, evidencing the same rights, and entitled to the same benefits under this Indenture, as the Notes surrendered upon such registration of transfer or exchange.  No service charge shall be charged to a Noteholder for any registration of transfer or exchange of Notes, but the Issuer and the Trustee may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Notes.

 

(e)           Transfer and Exchange of Notes.  When Notes are presented by a Holder to the Note Registrar with a request:

 

(i)           to register the transfer of Notes; or

 

(ii)           to exchange such Notes for an equal principal amount of Notes of other authorized denominations, the Note Registrar shall register the transfer or make the exchange as requested; provided, however, that the Notes presented or surrendered for register of transfer or exchange:

 

(A)           shall be duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Note Registrar duly

executed by such Holder or by his attorney, duly authorized in writing; and

 

  

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(B)           shall be accompanied by an Investment Letter substantially in the form of Exhibit E attached hereto shall be delivered by the proposed 

transferee to the Issuer and to the Trustee to the effect that such transfer is in compliance with Rule 144A.

 

(f)            [Reserved]

 

(g)           Each purchaser of a Note or an interest in a Note, other than any Initial Purchaser, will be deemed to have represented and agreed as follows:

 

(i)           It understands that the Notes will be offered and may be resold by the applicable Initial Purchaser only to QIBs pursuant to Rule 144A.

 

(ii)           It understands that the Notes have not been registered under, and were transferred to it in a transaction not involving any public offering within the meaning of, the Securities Act, and that if in the future it decides to re-offer, resell, pledge or otherwise transfer such Notes it will do so only in accordance with applicable state securities laws and pursuant to Rule 144A to a Person whom the seller reasonably believes is a QIB in a transaction meeting the requirements of Rule 144A, purchasing for its own account or for the account of a QIB, whom the holder has informed that such re-offer, resale, pledge or other transfer is being made in reliance on Rule 144A or to the Issuer pursuant to the terms of the Indenture.

 

(iii)           It acknowledges that none of the Issuer, the Initial Purchasers or any Person representing the Issuer or any such Initial Purchaser has made any representation to it with respect to the Issuer, any affiliates thereof or the offering or sale of the Notes.  It is purchasing the Notes for its own account, or for one or more investor accounts for which it is acting as a fiduciary or agent, in each case for investment purposes only, and not with a view to, or for offer or resale in connection with, any distribution thereof in violation of the Securities Act or the applicable state securities laws, subject to any requirements of law that the disposition of its property or the property of such investor account be at all times within its or their control and subject to its or their ability to resell such Notes pursuant to Rule 144A.

 

(iv)           If it is acquiring any Note as a fiduciary or agent for one or more investor accounts, it represents that it has sole investment discretion with respect to such account and that it has full power to make the acknowledgments, representations and agreements contained herein on behalf of each such account.

 

(v)           It is a QIB purchasing for its own account or for the account of another QIB and it, and such other Person (if applicable), are aware that the sale to it is being made in reliance on Rule 144A.

 

(vi)           It acknowledges that transfers of the Notes shall otherwise be subject in all respects to the restrictions applicable thereto contained in this Indenture.

 

  

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(vii)           (A) It is not (and for so long as it holds any Notes or an interest therein will not be), and is not acting on behalf of (and for so long as it holds any Notes or an interest herein will not be acting on behalf of), an “employee benefit plan” as defined in Section 3(3) of ERISA that is subject to Title I of ERISA, a plan described in Section 4975(e)(1) of the Code or an entity which is deemed to hold the assets of any such plan (“Plan Assets”) pursuant to 29 C.F.R. Section 2510.3-101 as modified by Section 3(42) of ERISA (the “Plan Asset Regulation”) (each a “Benefit Plan Investor”), (B) (i) its acquisition and continued holding of such Note will be covered by a statutory exemption or a prohibited transaction class exemption issued by the United States Department of Labor, (ii) at the time of acquisition the Notes are rated at least investment grade and (iii) it believes that the Notes are properly treated as indebtedness without substantial equity features for purposes of the Plan Asset Regulations and agrees to so treat such Notes or (C) it has provided the Trustee with an opinion of counsel, which opinion of counsel will not be at the expense of the Trustee, the Issuer, the Servicer or any Initial Purchaser, which opines that the purchase, holding and transfer of such Note or interest therein is permissible under applicable law, will not constitute or result in a non-exempt prohibited transaction under ERISA or Section 4975 of the Code and will not subject the Trustee, the Issuer, the Servicer or any Initial Purchaser to any obligation in addition to those undertaken herein.

 

(viii)           It acknowledges and agrees to treat the Notes as debt for all federal, state and local income tax purposes.

 

(ix)           [Reserved.]

 

(x)           It is purchasing one or more Notes in an amount of at least $100,000, and it understands that such Notes may be resold, pledged or otherwise transferred in an amount of at least $100,000 (unless the outstanding principal amount of such Note shall be less than $100,000).

 

(xi)           It understands that the Notes will bear a legend substantially to the following effect unless the Issuer determines otherwise consistent with applicable law:

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS.  THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES (1) THAT THIS NOTE MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AND (A) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (“QIB”) WITHIN THE MEANING OF RULE 144A, PURCHASING FOR ITS OWN ACCOUNT, OR A QIB PURCHASING FOR THE ACCOUNT OF A QIB AND TO WHOM NOTICE IS GIVEN THAT RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR TO THE ISSUER PURSUANT TO THE TERMS OF THE INDENTURE, OR (B) PURSUANT TO AN 

 

 

  

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EFFECTIVE REGISTRATION STATEMENT, AND (2) THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE OR AN INTEREST HEREIN IS TO BE TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.  THE INDENTURE RELATING TO THIS NOTE CONTAINS A PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE OR ANY INTEREST HEREIN IN VIOLATION OF THE FOREGOING.  EACH TRANSFEREE ACCEPTING A BENEFICIAL INTEREST IN THIS NOTE IS DEEMED TO REPRESENT TO THE ISSUER AND THE SERVICER THAT IT IS EITHER A QIB PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF ANOTHER QIB.  EACH HOLDER HEREOF IS DEEMED TO REPRESENT AND WARRANT EITHER (A) THAT IT IS NOT (AND FOR SO LONG AS IT HOLDS THIS NOTE OR AN INTEREST HEREIN WILL NOT BE), AND IS NOT ACTING ON BEHALF OF (AND FOR SO LONG AS IT HOLDS THIS SECURITY OR AN INTEREST HEREIN WILL NOT BE ACTING ON BEHALF OF), AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) THAT IS SUBJECT TO TITLE I OF ERISA, A PLAN DESCRIBED IN SECTION 4975(E)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR AN ENTITY WHICH IS DEEMED TO HOLD THE ASSETS OF ANY SUCH PLAN (“PLAN ASSETS”) PURSUANT TO 29 C.F.R. SECTION 2510.3-101 AS MODIFIED BY SECTION 3(42) OF ERISA (THE “PLAN ASSET REGULATION”) (EACH A “BENEFIT PLAN INVESTOR”), (B) (I) ITS PURCHASE AND OWNERSHIP OF THIS SECURITY WILL BE COVERED BY A PROHIBITED TRANSACTION CLASS EXEMPTION ISSUED BY THE UNITED STATES DEPARTMENT OF LABOR, (II) AT THE TIME OF ACQUISITION THE NOTES ARE RATED AT LEAST INVESTMENT GRADE AND (III) IT BELIEVES THAT THE NOTES ARE PROPERLY TREATED AS INDEBTEDNESS WITHOUT SUBSTANTIAL EQUITY FEATURES FOR PURPOSES OF THE PLAN ASSET REGULATIONS AND AGREES TO SO TREAT SUCH NOTES  OR (C)  IT HAS PROVIDED THE TRUSTEE WITH AN OPINION OF COUNSEL, WHICH OPINION OF COUNSEL WILL NOT BE AT THE EXPENSE OF THE TRUSTEE, THE ISSUER, THE SERVICER OR THE APPLICABLE INITIAL PURCHASER, WHICH OPINES THAT THE PURCHASE, HOLDING AND TRANSFER OF SUCH NOTE OR INTEREST THEREIN IS PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER ERISA OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE TRUSTEE, THE ISSUER, THE SERVICER OR THE APPLICABLE INITIAL PURCHASER TO ANY OBLIGATION IN ADDITION TO THOSE UNDERTAKEN IN THE INDENTURE. THE NOTES OR ANY BENEFICIAL INTEREST HEREIN MAY BE TRANSFERRED ONLY IN PERMITTED DENOMINATIONS SPECIFIED IN THE INDENTURE.  ACCORDINGLY, AN INVESTOR IN THIS NOTE MUST BE PREPARED TO BEAR THE ECONOMIC RISK OF THE INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

 

 

  

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(xii)           It acknowledges that the Issuer, the Servicer, each Initial Purchaser and others will rely on the truth and accuracy of the foregoing acknowledgments, representations and agreements, and agrees that if any of the foregoing acknowledgments, representations and agreements deemed to have been made by it are no longer accurate, it shall promptly notify the Issuer, the Servicer and each Initial Purchaser.

 

(h)           Except as otherwise required under the Note Purchase Agreement, neither Initial Purchaser shall be required to deliver, and neither the Issuer nor the Trustee shall demand therefrom, any of the certifications or opinions described in this Section 2.06 in connection with the initial issuance of the applicable Notes and the delivery thereof by the Issuer.

 

Section 2.07                      Mutilated, Destroyed, Lost or Stolen Note. (a) If (i) any mutilated Note is surrendered to the Trustee or the Issuer, or the Trustee and the Issuer receive evidence to their reasonable satisfaction of the destruction, loss or theft of any Note, and (ii) in the case of a destroyed, lost, or stolen Note, there is delivered to the Trustee and the Issuer such security or indemnity as may be required by them to save each of them harmless, then, in the absence of notice to the Trustee and the Issuer that such Note has been acquired by a bona fide purchaser and provided that the requirements of Section 8-405 of the UCC are satisfied, the Issuer shall execute and, upon a written request therefor by the Trustee and the Issuer shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Note, a new Note of the same Class, tenor and Principal Balance, bearing a number not contemporaneously outstanding. If, after the delivery of such new Note, a bona fide purchaser of the original Note in lieu of which such new Note was issued presents such original Note for payment, the Trustee and the Issuer shall be entitled to recover such new Note from the Person to whom it was delivered or any Person taking title there from, except a bona fide purchaser, and the Trustee and the Issuer shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the Trustee and the Issuer, in connection therewith. If any such mutilated, destroyed, lost or stolen Note shall have become or shall be about to become due and payable in full, or shall have been called for redemption in full, instead of issuing a new Note, the Issuer may pay such Note without surrender thereof, except that any mutilated Note shall be surrendered.

 

Upon the issuance of any new Note under this Section, the Issuer or the Note Registrar may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.

 

Subject to the above provisions of this Section 2.07, every new Note issued pursuant to this Section 2.07, in lieu of any destroyed, lost or stolen Note, shall constitute an original additional contractual obligation of the Issuer, whether or not the destroyed, lost or stolen Note shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Notes duly issued hereunder.

 

 

  

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The provisions of this Section 2.07 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Notes.

 

Section 2.08                      Payment of Principal and Interest; Rights Preserved.

 

(a)           For each applicable Interest Accrual Period, the Notes of each Class shall accrue interest on the Outstanding Note Balance thereof at the Note Rate applicable to such Class; provided however, that with respect to each Class of Notes and on each Payment Date, interest shall be deemed not to have accrued during the previous Interest Accrual Period on an amount equal to the Impairment of such Class of Notes.  Notwithstanding the foregoing, if, on any subsequent Payment Date and with respect to each Class of Notes, no Impairment is allocated to such Class of Notes, all Deferred Interest for such Class of Notes shall be deemed to have accrued during the immediately preceding Interest Accrual Period and be payable on such Payment Date as Note Current Interest.  All interest and fees accrued hereunder on the Class A Notes, the Class B-1 Notes and the Class B-2 Notes shall be calculated on the basis of a three-hundred-sixty (360)-day year comprised of twelve 30-day months and shall accrue through the day preceding the Stated Maturity Date and, to the extent that the payment of such interest shall be legally enforceable (except with respect to Deferred Interest), on any overdue payment of interest at the Note Rate from the date such interest becomes due and payable (giving effect to any applicable grace periods herein) until fully paid.  All accrued interest shall be due and payable in arrears on each Payment Date and shall be paid by the Trustee to the Noteholders in accordance with Section 13.03.  In making any interest payment, if the interest calculation with respect to a Note shall result in a portion of such payment being less than $0.01, then such payment shall be decreased to the nearest whole cent, and no subsequent adjustment shall be made in respect thereof.

 

(b)           The principal of each Note shall be payable on each Payment Date beginning on the Initial Payment Date unless such Note becomes due and payable at an earlier date by call for redemption in accordance with Article XI.  The installment of principal due on the Class A Notes on any Payment Date shall, to the extent of cash flow available therefor in accordance with Section 13.03 on such Payment Date, be paid as set forth in Section 13.03(c)(viii).  The installment of principal due on the Class B-1 Notes on any Payment Date shall, to the extent of cash flow available therefor in accordance with Section 13.03 on such Payment Date, be paid as set forth in Section 13.03(c)(ix).  The installment of principal due on the Class B-2 Notes on any Payment Date shall, to the extent of cash flow available therefor in accordance with Section 13.03 on such Payment Date, be paid as set forth in Section 13.03(c)(x).  All unpaid principal on any Note (together with interest thereon and all other amounts due and payable hereunder or in respect of the Notes) shall be due and payable in full on the Stated Maturity Date for such Note.  All reductions in the principal amount of a Note effected by payment of such installments of principal shall be binding upon all future Noteholders of such Note and of any Note issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof, whether or not such payment is noted on such Note.  Principal shall be payable to Noteholders in the same Class on a pro rata basis based upon the relative Outstanding Note Balance of the Notes in such Class as of the related date of determination; provided that, if as a result of such proration a portion of such principal would be less than $0.01, then such payment shall be decreased to the nearest whole cent, and such portion shall be applied to the next succeeding principal payment.

 

  

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(c)           The principal (other than principal to be deposited into the Prefunding Account in accordance with Sections 13.03(c)(viii), 13.03(c)(ix) and 13.03(c)(x)) of and interest on the Notes, and other amounts payable to the Noteholders under Section 13.03, are payable, through the Paying Agent on behalf of the Issuer, by check mailed by first-class mail to the Person whose name appears as the Registered Holder of such Note on the Note Register at the address of such Person as it appears on the Note Register or, at the option of any Noteholder, by wire transfer in immediately available funds to the account specified in writing to the Trustee by such Registered Holder at least five (5) Business Days prior to the Record Date for the Payment Date on which wire transfers will commence, in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private debts.  All payments on the Notes shall be paid without any requirement of presentment.  The Issuer shall notify the Person in whose name a Note is registered at the close of business on the Record Date immediately preceding the Payment Date on which the Issuer expects that the final installment of principal of such Note will be paid.  Such notice shall be mailed no later than the tenth (10th) day prior to such Payment Date and shall specify the place where such Note may be surrendered.  Funds representing any such checks returned undeliverable shall be held in accordance with Section 7.15.  Each Noteholder shall promptly surrender its Note to the Trustee at the Corporate Trust Office or in the case of mutilated, destroyed, lost or stolen Notes, as provided in Section 2.07, upon payment of the final installment of principal of such Note.

 

Section 2.09                      Persons Deemed Owner.  Prior to due presentment for registration of transfer of any Note, the Issuer, the Trustee, the Note Registrar, the Paying Agent and any agent of any of the foregoing shall treat the Person in whose name any Note is registered in the Note Register as the owner of such Note for the purpose of receiving payments of principal and interest on such Note and for all other purposes whatsoever, whether or not such Note be overdue, and none of the Issuer, the Trustee, the Note Registrar, the Paying Agent or any agent of the foregoing shall be affected by notice to the contrary.

 

Section 2.10                      Cancellation.  All Notes surrendered to the Trustee for payment, registration of transfer or exchange (including Notes surrendered to any Person other than the Trustee which shall be delivered to the Trustee) shall be promptly canceled by the Trustee.  No Notes shall be authenticated in lieu of or in exchange for any Notes canceled as provided in this Section 2.11, except as expressly permitted by this Indenture.  All canceled Notes held by the Trustee shall be disposed of by the Trustee in accordance with its standard practice.

 

Section 2.11                      Tax Treatment; Withholding Taxes.

 

(a)           The Issuer has structured the transaction contemplated by this Indenture and the Notes with the intention that the Notes will qualify under applicable tax law as indebtedness of the Issuer.  The Issuer, the Trustee, the Servicer, the Back-up Servicer, each Noteholder and each beneficial owner of a Note by acceptance of its Note or a beneficial interest therein, each agree to treat the Notes as indebtedness of the Issuer for all tax purposes and further agrees not to take any action inconsistent with such treatment, unless and to the extent otherwise required by any taxing authority under applicable law.

 

Notwithstanding anything in any Transaction Document to the contrary, effective from the date of commencement of discussions with respect to the transactions contemplated by such documents, all parties hereto and the Noteholders may disclose to any and all Persons, without limitation of any kind, the U.S. Federal income tax treatment and tax structure of the Notes and the transactions contemplated hereby and all materials of any kind, including tax opinions or other tax analyses, if any, that are provided to such Persons regarding such tax treatment.

 

 

  

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(b)           Notwithstanding any other provision in this Indenture to the contrary or the other Transaction Documents, the Trustee, as Paying Agent for and on behalf of, and at the direction of the Servicer, shall comply with any and all federal withholding requirements under applicable law, as modified by the practice of any relevant taxing authority then in effect.  If any withholding tax is imposed on any payment by the Issuer (or allocation of income) under the Notes, such tax shall reduce the amount otherwise payable to such Noteholder.  Any amounts so withheld shall be treated as having been paid to the related Noteholder for all purposes of this Indenture.  Failure of a Noteholder or a beneficial owner of a Note to provide the Trustee or other paying agent with appropriate tax certificates may result in amounts being withheld from the payment to such Noteholder or beneficial owner.  In no event shall the consent of Noteholders be required for any withholding.

 

ARTICLE III

ACQUISITIONS OF CONTRACTS 

 

Section 3.01                      Conditions to the Acquisition of Contracts.  Each acquisition by the Issuer of a Contract from the Originator on any Acquisition Date is subject to the conditions specified in Section 3.04 of the Servicing Agreement, in the case of Substitute Contracts, and Section 13.06 hereof, in case of Purchased Contracts, including, in each case, satisfaction of the following conditions on the relevant date specified below:

 

(a)           By 10:00 am (New York time) on the Business Day prior to any proposed Acquisition Date, the Originator shall have delivered to each Initial Purchaser, the Issuer, the Trustee, the Custodian and the Back-up Servicer (A) a draft Transfer Certificate substantially in the form set forth on Exhibit F attached hereto (the “Transfer Certificate”), (B) a draft Amendment to Contract Schedule containing the information required to be provided with respect to the Substitute Contracts and/or Purchased Contracts and related Contract Assets to be acquired by the Issuer on such Acquisition Date, as specified in the definition of Contract Schedule, (C) if applicable, a draft of the Release Agreement relating to any Existing Indebtedness, and (D) a draft Assignment Agreement and draft Exception Report with respect to each Substitute Contract and Purchased Contract to be acquired by the Issuer on such Acquisition Date.

 

(b)           Not later than the Acquisition Date, the Issuer shall have delivered or shall have caused to be delivered to the Custodian, the Contract Files relating to the Contracts to be purchased or substituted in accordance with Section 4.03(a).

 

(c)           Not later than the third Business Day after the related Acquisition Date, the Custodian shall deliver to each Initial Purchaser, the Issuer and the Trustee an executed Custodian Certificate and Exception Report resulting from the Custodian’s review of the related Substitute Contracts and Purchased Contracts and the Contract Files related thereto pursuant to Section 4.03(b). In accordance with Section 4.04(a), each Contract identified as having exceptions in such Exception Report shall be subject to a Warranty Event.

 

 

  

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(d)           By 11:00 am (New York time) on the proposed Acquisition Date, the Originator shall cause to be delivered the final executed Assignment Agreement, Amendment to Contract Schedule, and Release Agreement (if applicable) along with a final executed Transfer Certificate, in each case, such document or certificate containing changes from the draft document delivered pursuant to Section 3.01(a) above, if any.  The Transfer Certificate shall confirm that (A) each Substitute Contract or Purchased Contract, as applicable, is a Contract that satisfies each of the representations and warranties set forth in Clause (C) or (D) of the related Assignment Agreement, (B) all applicable filings required under Sections 4.01(a)(v) and 4.02 have been made or are in effect, (C) no Event of Default shall exist prior to or after giving effect to the acquisition of such Substitute Contracts and/or Purchased Contracts and (D) all other conditions to the acquisition of Substitute Contracts or Purchased Contracts, as applicable, have been satisfied except for the conditions set forth in Section 3.01(b) and Section 3.01(c).

 

A document or certificate described in clause (a), (b), (c) or (d) above shall be regarded as timely delivered if it is delivered by telecopy (with written confirmation of transmission) as of the applicable time described above; provided that, the originally executed copy shall be delivered by the applicable party promptly thereafter.

 

(e)           With respect to any Contract substituted for an Early Termination Contract, the Issuer shall be allowed to use the Collections received in respect thereof to purchase a new Substitute Contract in lieu of distributing such Collections in accordance with Section 13.03, provided that, such purchase of a Substitute Contract shall occur simultaneously with the Issuer’s receipt of such Collections or such Collections shall be held not later than the Payment Date (or the then current Collection Period) on deposit in the Collection Account until such Substitute Contract is so purchased; provided, further, that if such Substitute Contract is not purchased on or before the immediately following Payment Date such Collections shall be disbursed in accordance with Section 13.03.  Notwithstanding the foregoing, any Substitute Contract so substituted for such Early Termination Contract, and related Contract Assets, must meet the same requirements as those specified in the form of Assignment Agreement attached to the Purchase and Contribution Agreement.

 

(f)           If a Contract is to be removed and replaced with another lease or equipment finance contract transferred to the Issuer by the Servicer pursuant to the Servicing Agreement, such “substitute” lease or equipment finance contract shall become a Contract for all purposes of the Transaction Documents and may be referred to as a Substitute Contract.  Acquisition of any Substitute Contract shall be subject to the satisfaction of the conditions described in this Article III.

 

(g)           Upon satisfaction of the conditions specified in the Transaction Documents, including this Section 3.01, and any conditions to the repurchase of Contracts under the Purchase and Contribution Agreement or substitution or purchase of Contracts under the Servicing Agreement (as the case may be), the Trustee shall, upon receipt of the Contract Repurchase Price and/or the Substitute Contract, and the Request for Release, release the Contract and related Contract Assets being purchased or substituted for by the Servicer, or repurchased by the Originator, from the Lien of this Indenture.

 

 

  

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(h)           In addition to the conditions specified above, at no time may the sum of (1) the aggregate Discounted Contract Balance of Substitute Contracts (as measured on their respective Acquisition Dates), (2) the aggregate Discounted Contract Balance of Contracts (as measured on their respective dates of repurchase), in each case either substituted for or repurchased by LEAF Financial Corporation (as initial Servicer) or repurchased by the Originator, but excluding Contracts repurchased pursuant to Warranty Events and (3) the aggregate amount of payments made by LEAF Financial Corporation under the Limited Guaranty (in no case, to exceed $2,000,000), exceed 10.00% of the aggregate Discounted Contract Balance of all Purchased Contracts (as measured on their respective Acquisition Dates). The Trustee and Custodian shall have no duty to monitor the limit set forth in this Section 3.01(h).

 

(i)           In addition to the conditions specified above, on such proposed Acquisition Date other than any date of repurchase of Contracts under the Purchase and Contribution Agreement or any substitution or purchase of Contracts under the Servicing Agreement (as the case may be), the aggregate Discounted Contract Balance of the Contracts already under review of the Custodian in accordance with Section 4.03 shall not exceed $2,000,000. Under no circumstances shall the Trustee or Custodian be obligated to determine or liable for any incorrect determinations of such amount.

 

(j)           In addition to the conditions specified above, on such proposed Acquisition Date other than any date of repurchase of Contracts under the Purchase and Contribution Agreement or any substitution or purchase of Contracts under the Servicing Agreement (as the case may be), the aggregate Discounted Contract Balance of the Contracts to be acquired on such date shall be equal to or greater than $1,000,000.  Under no circumstances shall the Trustee or Custodian be obligated to determine or liable for any incorrect determinations of such amount.

 

ARTICLE IV

ISSUANCE OF NOTES; CERTAIN ISSUER AND CUSTODIAN OBLIGATIONS

 

Section 4.01                      Conditions to Issuance of Notes.  All Notes shall be executed by the Issuer and delivered to the Trustee for authentication.  The Notes issued on the Closing Date shall be authenticated and delivered by the Trustee upon Issuer Order and upon satisfaction of the following conditions precedent:

 

(a)           receipt by the Trustee, or its agents, of the following, in form and substance satisfactory to the Initial Purchasers, which satisfaction shall be evidenced to the Trustee by receipt of item 4.01(a)(xv) below from the Initial Purchasers:

 

(i)           a copy of an officially certified document, dated not more than ten (10) days prior to the Closing Date, evidencing the due organization and good standing of each of the Issuer, the Servicer and the Originator;

 

(ii)           certified copies of the organizational documents (together with all amendments thereto) of the Issuer, the Servicer and the Originator, along with certified resolutions or certified executed consents of each of the Issuer, the Servicer and the Originator, authorizing the execution, delivery and performance of the Transaction Documents and the transactions contemplated by the Transaction Documents by such entities and certificates evidencing the incumbency of the officers executing such Transaction Documents;

 

 

  

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(iii)           certified copies of requests for information or copies (or a similar search report certified by a party acceptable to the Initial Purchasers), dated a date reasonably near to the Closing Date (no earlier than ten (10) days prior to the Closing Date), listing all effective tax and judgment liens and financing statements which name the Originator as debtor and which are filed in the jurisdictions in which the statements referred to in clause (v)(1) below were or are to be filed, together with copies of such tax and judgment liens and financing statements (none of which, other than financing statements naming the party under the Transaction Documents to which transfers (including grants of security interests) thereunder purport to have been made, shall cover any of the property purported to be conveyed thereunder);

 

(iv)           certified copies of requests for information or copies (or a similar search report certified by a party acceptable to the Initial Purchasers’ counsel), dated a date reasonably near to the Closing Date (no earlier than ten (10) days prior to the Closing Date), listing all effective tax and judgment liens and financing statements which name Issuer (under its present name and any previous name) as debtor and which are filed in the jurisdictions in which the statements referred to in clause (v)(2) below were or are to be filed, together with copies of such tax and judgment liens and financing statements (none of which, other than financing statements naming the party under the Transaction Documents to which transfers (including grants of security interests) thereunder purport to have been made, shall cover any of the property purported to be conveyed thereunder);

 

(v)           except as otherwise provided below, evidence of filing (or evidence of delivery for filing to the appropriate filing offices) of, and each of the following, together with evidence of all filing fees, taxes or other amounts required to be paid in connection with the following have been paid:

 

(1)           UCC-1 financing statements, for filing with the Secretary of State of the State of Delaware, naming the Originator, as debtor, the Issuer, as assignor secured party, and the Trustee, for the benefit of the Secured Parties, as the total assignee secured party;

 

(2)           UCC-1 financing statements, for filing with the Secretary of State of the State of Delaware, naming the Issuer, as debtor, and the Trustee, for the benefit of the Secured Parties, as Secured Party;

 

(3)           such other, similar instruments or documents, as may be necessary or, in the opinion of any Noteholder, desirable under the UCC of all appropriate jurisdictions or any comparable law to perfect the transfers (including grants of security interests) under the Transaction Documents;

 

  

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                  (vi)           a fully executed original counterpart of the Purchase and Contribution Agreement, this Indenture, the Servicing Agreement, the Securities Account Control Agreement, the Limited Guaranty and the Note Purchase Agreement shall have been received by the Initial Purchasers or its agents;

 

(vii)           a copy of the fully executed Lockbox Intercreditor Agreement and the Joinder to Lockbox Intercreditor Agreement shall have been received by the Initial Purchasers or its agents;

 

(viii)           written evidence of establishment of the Reserve Account, the Collection Account, the Prefunding Account, the Capitalized Interest Account and continued existence of the Lockbox Account;

 

(ix)           a certificate listing the Servicing Officers of the Servicer as of the Closing Date;

 

(x)           [Reserved]

 

(xi)           executed favorable legal opinions of counsel to the Servicer, the Guarantor, the Originator, the Seller, the Issuer, the Custodian, the Trustee and the Back-up Servicer, addressed to the Trustee, the Back-up Servicer and each Initial Purchaser (as applicable), dated the Closing Date and covering general corporate matters, the due execution and delivery of, and the enforceability of, each of the Transaction Documents to which the Servicer, the Guarantor, the Originator, the Seller, the Issuer, the Back-up Servicer, the Custodian and the Trustee (individually or in any other capacity) is party, true sale and non-consolidation, security interest and such other matters as the Initial Purchasers may request;

 

(xii)           certificates of the Secretary or Assistant Secretary of each of the Servicer, the Issuer and the Originator, dated as of the Closing Date, and certifying (A) that attached thereto is a true, complete and correct copy of (a) the organizational documents of the Servicer, the Originator and the Issuer (as applicable), and (b) resolutions duly adopted by the Servicer, the Issuer and the Originator authorizing the execution, delivery and performance of the Transaction Documents to which it is a party and the transactions contemplated thereunder, and that such resolutions have not been amended, modified, revoked or rescinded, and (B) as to the incumbency and specimen signature of each officer executing any Transaction Documents on behalf of the Servicer, the Issuer and the Originator (as the case may be);

 

(xiii)           copies of all waivers, licenses, approvals or consents, if any, required or advisable, in the opinion of the Initial Purchasers, in connection with the execution, delivery and performance by the Servicer, the Issuer and the Originator (as the case may be) of the Transaction Documents (and the validity and enforceability thereof), which waivers, licenses, approvals or consents shall be in full force and effect;

 

(xiv)           written confirmation of the payment (or deposit for payment with the Trustee) of all fees and expenses of the Trustee, the Custodian, the Back-up Servicer, each Initial Purchaser (including the fees and charges of their respective agents, auditors and counsel) accrued as of the Closing Date;

 

 

  

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(xv)           [Reserved];

 

(xvi)           [Reserved].

 

(xvii)           such additional documents, instruments, certificates, opinions, ratings letters or other confirmations as the Initial Purchasers may reasonably request.

 

(b)           all Collateral in which a security interest has been granted to the Trustee under the Indenture shall be subject to no other Liens other than Permitted Liens.

 

Section 4.02                      Security for Notes.

 

(a)           The Servicer shall at its own expense, in consideration of the Servicer Fee, cause to be filed the financing statements and assignments described in Sections 4.01(a)(v) and 4.02(b) in accordance with such Sections.  In addition, from time to time, the Servicer shall take or cause to be taken at its own expense, in consideration of the Servicer Fee, any other such actions and execute such documents as are necessary to perfect and protect the Issuer’s precautionary security interest against the Originator in respect of the Contract Assets and the assignment to the Trustee thereof, and the Trustee’s security interests in and liens on the Collateral against all other Persons, including the filing of financing statements, amendments thereto and continuation statements, the execution of transfer instruments and the making of notations on or taking possession of all records or documents of title; provided that, none of the Servicer, the Originator nor the Issuer shall be required to file UCC-1 financing statements against Obligors with respect to a Contract related to Equipment that had an original equipment cost at origination of less than (A) if such Contract is a secured loan or finance lease that provides for a $1 purchase option, $25,000, or (B) if such Contract provides for a “fair market value” purchase option, $50,000 or to file or record assignments of any UCC-1 financing statements or other lien recordings or notations made against any Obligor.  Notwithstanding anything to the contrary contained herein, if the Servicer is not LEAF Financial Corporation or one of its Affiliates, the successor Servicer shall not be responsible for the initial filings of any UCC financing statements, or any continuation statements filed by any predecessor Servicer, or the information contained therein (including the exhibits thereto), the perfection of any such security interests during the term of such predecessor Servicer, or the accuracy or sufficiency of any description of collateral in such filings, and the successor Servicer shall be fully protected in relying on such initial filings and any continuation statements or modifications thereto made by a predecessor Servicer pursuant to this Section 4.02 but shall continue to be responsible for requirements expressed above during the period it acts as Servicer.

 

(b)           If any change in the Servicer’s or the Issuer’s name, identity, structure or the location of its principal place of business, chief executive office or State of organization occurs, then such party shall deliver thirty (30) days’ prior written notice of such change or relocation to the Servicer, the Trustee and the Back-up Servicer, and, no later than the effective date of such change or relocation, the Servicer shall file or cause to be filed such amendments or statements as may be required to preserve and protect the Issuer’s precautionary security interest against the Originator in respect of the Contract Assets and the assignment to the Trustee thereof, and the Trustee’s security interest in and liens on the Collateral.

 

 

  

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(c)           During the term of this Indenture, the Issuer will maintain its sole state of organization in the State of Delaware, and the Servicer will maintain its sole state of incorporation in a State of the United States.

 

Section 4.03                      Review of Contract Files.

 

(a)           Not later than each Acquisition Date, the Issuer shall cause to be delivered to the Custodian the documents comprising the Contract Files for the Contracts to be acquired on such Acquisition Date.  Each Contract and the folder containing other Contract Files documents for such Contract shall be clearly marked with a LEAF Contract Number, which LEAF Contract Number shall be used by the Issuer, the Trustee and the Custodian to identify such Contract on the Contract Schedule.

 

(b)           Not later than the third Business Day after each Acquisition Date, for each Purchased Contract and Substitute Contract, the Custodian will review the Contract Files related to each proposed Purchased Contract and Substitute Contract and shall perform such reviews as are sufficient to enable it to confirm the items required to be certified by it in the Custodian Certificate in the form attached hereto as Exhibit C.  By execution and delivery of any such Custodian Certificates, the Custodian shall evidence completion of such review and confirmation.  Other than the exceptions permitted in Section 4.04(a), the Custodian shall include in any Exception Report any failure of a document to correspond to the information on the Amendment to Contract Schedule or the absence of any one or more of the documents comprising the Contract Files for such Contract and shall deliver such Exception Report to the Servicer, the Trustee and the Issuer.

 

(c)           If any Contracts or Contract Assets to be pledged to the Trustee are Contracts or Contract Assets that at any time were subject to a Lien in favor of a Person that has held a Lien thereon, concurrently with the delivery of an Officer’s Certificate, the Issuer shall have delivered to (x) the Custodian (with a copy to the Trustee) a facsimile copy or an original executed Release Agreement from each Person that has held a Lien on the applicable Contract and/or Contract Assets, together with the certification in the Officer’s Certificate that each such Release Agreement constitutes a release of such Person’s security interest in each such Contract and/or Contract Asset (and the other Collateral related thereto), and (y) the Custodian (with a copy to the Trustee) the original UCC partial or full release relating to the Release Agreement described in clause (x) above.

 

(d)           The Custodian shall use reasonable care in the performance of its duties under the Transaction Documents, shall identify and segregate all items constituting the Contract Files and shall maintain continuous custody of all items constituting the Contract Files in secure, fire resistant facilities in accordance with customary standards for such custody.  The Custodian makes no representations as to and shall not be responsible to verify (i) the validity, legality, enforceability, sufficiency, due authorization or genuineness of any document constituting Contract Files or of any of the Contracts or (ii) the collectibility, insurability, effectiveness or suitability of any Contract.

 

 

  

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(e)           The Custodian shall hold all Contracts and all other Collateral delivered to it pursuant to the Transaction Documents as Custodian for the benefit of the Trustee (for the benefit of the Secured Parties).  With respect to each item of Contract Files delivered to the Custodian, the Custodian shall (i) hold all documents constituting such Contract Files received by it for the exclusive use and benefit of the Trustee (for the benefit of the Secured Parties) and (ii) make disposition thereof only in accordance with the terms of this Indenture and the Servicing Agreement.

 

(f)           In the event that (i) the Trustee, the Servicer, the Issuer or the Custodian shall be served by a third party with any type of levy, attachment, writ or court order with respect to any Contract Files or (ii) a third party shall institute any court proceeding by which any Contract Files shall be required to be delivered otherwise than in accordance with the provisions of this Indenture, the party or parties receiving such service shall promptly deliver or cause to be delivered to the other parties to this Indenture copies of all court papers, orders, documents and other materials concerning such proceedings.  The Custodian shall continue to hold and maintain all the Contract Files that is the subject of such proceedings pending a final order of a court of competent jurisdiction permitting or directing disposition thereof.  Upon final determination of such court, the Custodian shall deliver such Contract Files as directed by such determination or, if no such determination is made, in accordance with the provisions of this Indenture.  Expenses of the Custodian incurred as a result of such proceedings shall be borne by the Issuer.

 

(g)           At its own expense, the Custodian shall maintain at all times prior to the satisfaction and discharge of this Indenture and keep in full force and effect fidelity insurance, theft of documents insurance, forgery insurance and errors and omissions insurance.  All such insurance shall be in amounts, with standard coverage and subject to deductibles, all as is customary for insurance typically maintained by banks which act as custodian of collateral substantially similar to the Collateral.  Upon at least ten (10) days’ prior written request, the Issuer and/or the Servicer shall be entitled to receive a certificate of the Custodian’s respective insurer that such insurance is in full force and effect.

 

Section 4.04                      Defective Contracts.

 

(a)           Check-in Procedures. If, upon its examination of any Contract File in accordance with Section 4.03 hereof, the Custodian determines that such Contract File does not satisfy the requirements described in Section 4.03(b), or is unable to confirm that such requirements have been met, the Custodian shall promptly notify the Servicer and the Originator by telephone or telecopy.  If the Originator or Servicer does not satisfy the Custodian in accordance with the foregoing sentence prior to the third Business Day after the applicable Acquisition Date, the Custodian shall return the applicable Contract and related files to the Originator, or as otherwise directed by the Originator. Any such returned Contracts and related files shall be subject to a Warranty Event unless the Majority Holders approve the exceptions with respect to such Contract and allow the inclusion of such Contract that the Custodian has identified as defective in its review under Section 4.03(b), all parties agreeing that such approval shall be valid with respect to such included Contract, but shall not constitute a course of dealing, and the allowance of such included Contract shall not operate as a waiver of any rights of the Trustee or any Secured Party hereunder, under the Purchase and Contribution Agreement, the Assignment Agreements or any other Transaction Documents with respect to any adverse consequence caused by such defect.

 

 

  

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(b)           Warranty Repurchases. If a Responsible Officer of the Trustee, or if another party to any of the Transaction Documents, notifies the Servicer, the Originator, the Back-up Servicer or the Issuer of the existence of any Warranty Event, the Servicer (pursuant to the Servicing Agreement) or the Originator (pursuant to the Purchase and Contribution Agreement) shall (i) cure the breach(es) which caused the Warranty Event or (ii) repurchase or substitute (if the Servicer), as applicable, such Contract and related Contract Assets at the Contract Repurchase Price or for a Substitute Contract, respectively, as required in accordance with Section 6.1(a) of the Purchase and Contribution Agreement or Section 3.09 of the Servicing Agreement.  If any such Contract is substituted or repurchased by the Servicer in accordance with the provisions of the Servicing Agreement, or repurchased by the Originator pursuant to the Purchase and Contribution Agreement, and the Trustee has received a written request in the form attached hereto as Exhibit B-1 relating thereto, the Trustee shall (or cause the Custodian to), upon receipt of the applicable Contract Repurchase Price, but subject to Section 4.07 hereof, return the affected Contract and related files to the Issuer (or, if the Issuer so requests, directly to the Servicer or the Originator, as the case may be), release its interest therein and in the related Contract Assets, and such items shall no longer constitute a Contract or Contract Asset hereunder and shall be released from the Lien of this Indenture.

 

Section 4.05                      Reserved.

 

Section 4.06                      Administration of the Contract Assets.  The Contract Assets shall be serviced by the Servicer in accordance with the terms of the Servicing Agreement.  The Servicer, as agent of the Issuer prior to the occurrence of an Event of Default, shall have the right to provide any notices and instructions to Obligors in connection with the Contract Assets.  In the event that the Issuer or the Trustee receives any notices, requests for information or other communication from an Obligor, it shall immediately forward such communication to the Servicer.  The Trustee shall deposit any Collections received by it in the Collection Account, in accordance with Section 13.02 and it shall deliver written or electronic statements regarding such collections and deposits to the Servicer at least monthly.  The Trustee shall have no obligation to advance its own funds to the Collection Account.  In the absence of an Event of Default, the Trustee shall not contact any Obligor or take any action with respect to the enforcement, modification or release of any Contract against an Obligor without the express written authorization of the Servicer or the Issuer.

 

Section 4.07                      Releases.

 

(a)           The Issuer shall be entitled to obtain a release from the Lien of this Indenture for any individual Contract and the related Contract Assets at any time after all of the conditions for such release set forth in the Transaction Documents have been satisfied and (i) after a payment by the Originator or the Servicer, as applicable, under the provisions of the relevant Transaction Documents, of the related Contract Repurchase Price therefor or (ii) after a Substitute Contract and the related Contract Assets are substituted for such Contract and the related Contract Assets in accordance with the Transaction Documents.  In order to effect any such release, the Servicer, on behalf of the Issuer, shall deliver to each Initial Purchaser, the Trustee and the Custodian in accordance with the Transaction Documents a Request for Release, in the form attached hereto Exhibit B-1, (1) identifying the Contracts and 

 

  

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the related Equipment to be released, (2) requesting the release thereof, (3) setting forth the amount deposited in the Collection Account with respect thereto, and identifying the Substitute Contract substituted therefor in the event that the subject Contracts and the related Equipment are being released from the Lien of this Indenture pursuant to clause (ii) above, (4) certifying that the amount deposited in the Collection Account equals the Contract Repurchase Price relating to such Contracts and the related Equipment in the event that the subject Contracts and the related Equipment are being released from the Lien of this Indenture pursuant to clause (i) above and (5) certifying that all other conditions precedent set forth in the Transaction Documents relating to such release have been satisfied.  The Trustee, upon receipt of a written request in the form attached hereto as Exhibit B-1, and the Trustee’s confirmation that the related (i) Contract Repurchase Price has been deposited into the Collection Account or (ii) Substitute Contract has been substituted for the Contract, shall execute instruments to release a Contract from the lien of this Indenture, or convey the Trustee’s interest in the same.

 

(b)           Upon receipt of the Request for Release from the Servicer in the form attached hereto as Exhibit B-1, including a certification that all of the conditions specified in clause (a) of this Section 4.07 have been satisfied, and provided that if Item 7 of the Request for Release has been checked, all other certifications and documents required under the terms of this Indenture have been received by the Trustee, the Trustee shall release from the Lien of this Indenture and the Custodian shall deliver to the Issuer or upon Issuer Order the Contracts and all related Contract Assets described in the Issuer’s Request for Release.

 

(c)           The Custodian may, if requested by the Servicer, in the form attached hereto as Exhibit B-1, for purposes of servicing a Contract, temporarily deliver to the Servicer the original Contract.  Any Contract temporarily delivered from the custody of the Custodian to the Servicer or its agents shall have affixed to such Contract a copy of such written request in the Form of Exhibit B-1, which shall contain a legend to the effect that the Contract is the property of the Issuer and has been pledged to U.S. Bank National Association, as Trustee for the benefit of the Secured Parties.  The Servicer shall promptly return the Contract to the Custodian, along with a letter attached hereto as Exhibit B-2, upon the need therefor no longer existing; provided that if an Event of Default has occurred, the Servicer shall forthwith return to the Custodian each Contract temporarily delivered pursuant to this Section 4.07.

 

ARTICLE V

SATISFACTION AND DISCHARGE

 

Section 5.01                      Satisfaction and Discharge of Indenture.

 

(a)           Following (i) payment in full of (A) all of the Notes, (B) the fees and charges and reimbursements of the Trustee, the Back-up Servicer, the Originator, the Custodian and the Noteholders and (C) all other obligations of the Issuer under this Indenture and the other Transaction Documents and (ii) a written request by the Issuer to the Trustee to terminate this Indenture and release the Collateral, this Indenture shall be discharged and terminated and the lien of this Indenture on the Collateral thereupon shall be released.  All Contract Files shall then include an Officer’s Certificate from the Issuer, stating that all conditions precedent provided for herein relating to the satisfaction and discharge of this Indenture with respect to the Notes have been complied with.

 

 

  

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(b)           Upon the discharge and termination of this Indenture, the Trustee shall release from the lien of this Indenture and deliver to the Issuer all remaining Collateral, and the Trustee shall file, or cause to be filed, at the Servicer’s expense, UCC termination statements evidencing such discharge and release; provided, if the Back-up Servicer has become the Servicer, the Servicer shall be entitled to reimbursement of all expenses incurred under this Section 5.01(b) by the Issuer payable solely from amounts that are available to the Servicer therefore under Section 13.03 of the Indenture.

 

ARTICLE VI

DEFAULTS AND REMEDIES

 

Section 6.01                      Events of Default.

 

“Event of Default” wherever used herein means the occurrence of any one of the following events, unless any such particular occurrence is waived as an “Event of Default” in writing in accordance with the provisions of this Indenture; provided that, unless and until any such waiver is given, an “Event of Default” shall be deemed to exist for all purposes under the Transaction Documents, even if the event giving rise to such Event of Default is no longer continuing or has been cured:

 

(a)           the Issuer shall fail to make when due any payment with respect to interest on any Notes then outstanding, or the Servicer shall fail to make when due any deposit required under the Transaction Documents (other than as described in clause (e) below), in any case on or before the date occurring five (5) Business Days after the date such payment or deposit shall become due;

 

(b)           the Issuer, Servicer or the Originator shall fail to perform or observe any covenant with respect to it set forth in any Transaction Document, and in each case such failure shall remain unremedied for thirty (30) Business Days after the earlier of (x) actual knowledge thereof by such Person or (y) receipt by such Person of written notice thereof;

 

(c)           any representation or warranty made by the Issuer, Originator or Servicer in any Transaction Document or in any other document delivered pursuant thereto (other than a representation or warranty made with respect to the Contracts) shall prove to have been incorrect in any material respect when made or deemed made and continues to be incorrect in any material respect for a period of thirty (30) Business Days after the earlier to occur of (x) the actual knowledge thereof by such Person or (y) the receipt by such Person of written notice thereof;

 

(d)           an Insolvency Event shall occur with respect to the Issuer or the Guarantor;

 

(e)           the Outstanding Note Balance of any Class of Notes is not reduced to zero and all interest due on any Class is not paid by the Stated Maturity Date;

 

  

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(f)           the Outstanding Note Balance of the Class A Notes fails to be less than or equal to the Discounted Pool Balance on a proposed Acquisition Date and such failure has not been cured within five (5) Business Days of such date; or

 

(g)           the Issuer is required to register as an “investment company” under the Investment Company Act of 1940, as amended.

 

Section 6.02                      Acceleration of Maturity; Rescission and Annulment. If an Event of Default exists, then, unless waived pursuant to Section 6.15 hereof, and in every such case, the Control Party may, and the Trustee shall, at the written direction of the Control Party, declare the principal of all the Notes to be immediately due and payable, by notice given in writing to the Issuer and upon any such declaration, such principal and all accrued interest under the Notes shall become immediately due and payable without any presentment, demand, protest or other notice of any kind (except such notices as shall be expressly required by the provisions of this Indenture), all of which are hereby expressly waived by the Issuer; provided, that if such Event of Default consists of an Insolvency Event with respect to the Issuer, then all such principal and accrued interest shall be automatically due and payable without the need for any such notice or further action by any Person.

 

At any time after such a declaration of acceleration has been made, but before any Sale of the Collateral has been made or a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Control Party, by written notice to the Issuer and the Trustee, may rescind and annul such declaration and its consequences if (notwithstanding Section 6.15 hereof) (a) and (b) below are satisfied:

 

(a)           the Issuer has paid or deposited with the Trustee a sum sufficient to pay:

 

(1)           all overdue installments of interest on all Notes and interest thereon at the overdue interest rate from the time such overdue interest first became due until the date when paid;

 

(2)           the principal of any Notes which has become due otherwise than by such declaration of acceleration and interest thereon at the overdue interest rate from the time such principal first became due until the date when paid;  and

 

(3)           all sums paid or advanced, together with interest thereon, by the Trustee, the Originator and any Secured Party, and the reasonable compensation, expenses, disbursements and advances of the Trustee and any Secured Party, their agents and counsel incurred in connection with the enforcement of this Indenture to the date of such payment or deposit.

 

(b)           all Events of Default, other than the nonpayment of the principal on any of the Notes which has become due solely by such declaration of acceleration, have been cured or waived by the Control Party unless (i) an Event of Default in the payment of interest on any Note when due or principal not paid at the Stated Maturity Date or (ii) in respect of a covenant or provision hereof which by its terms cannot be modified or amended without the consent of the Noteholders of each Outstanding Note affected thereby, in which case a waiver by the Noteholders of each Outstanding Notes is required.

 

  

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No such rescission shall affect any subsequent default or impair any right consequent thereon.

 

Section 6.03                      Collection of Indebtedness and Suits for Enforcement by Trustee.

 

(a)           The Issuer covenants that, if an Event of Default shall occur and the Notes have been declared due and payable and such declaration has not been rescinded and annulled, the Issuer will pay to the Trustee, for the benefit of the Noteholders, the whole amount then due and payable on the Notes for principal and interest (with interest upon the overdue principal and overdue interest at the rate provided herein), any and all amounts due and payable to the Noteholders, the Originator, the Back-up Servicer, the Custodian, the Paying Agent and the Trustee and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of each of the Trustee, the Paying Agent and the Noteholders and their respective agents and counsel.

 

(b)           If the Issuer fails to pay such amount forthwith upon such demand, the Trustee, in its own name and as Trustee of an express trust, may, with the prior written consent of the Control Party, and shall, at the written direction of the Control Party, institute Proceedings for the collection of the sums so due and unpaid, and prosecute such Proceedings to judgment or final decree, and enforce the same against the Issuer and collect the monies adjudged or decreed to be payable in the manner provided by law out of the property of the Issuer, wherever situated.

 

(c)           If an Event of Default exists, the Trustee shall, at the written direction of the Control Party, proceed to protect and enforce the rights of the Noteholders and the Paying Agent by such appropriate Proceedings as the Trustee, at the written direction of the Control Party, shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy.

 

Section 6.04                      Remedies.  If an Event of Default exists, the Trustee may, with the prior written consent of the Control Party, and shall, at the written direction of the Control Party, do one or more of the following:

 

(a)           institute Proceedings for the collection of all amounts remaining unpaid on the Notes or under this Indenture or the other Transaction Documents whether by declaration or otherwise, enforce any judgment obtained, and collect from the Issuer and the Collateral the monies adjudged due;

 

(b)           take possession of and sell the Collateral or any portion thereof or rights or interest therein, at one or more private or public Sales called and conducted in any manner permitted by law;

 

(c)           institute any Proceedings from time to time for the complete or partial foreclosure of the lien created by this Indenture with respect to the Collateral;

 

 

  

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(d)           redirect Obligor payments to such account or accounts as the Control Party determines necessary in its sole discretion, or at the direction of the Control Party;

 

(e)           during the continuance of a default under a Contract, exercise any of the rights of the lessor or lender (as applicable) under such Contract;

 

(f)           exercise any remedies of a secured party under the Uniform Commercial Code (irrespective of whether the Uniform Commercial Code applies) or any applicable law and take any other appropriate action to protect and enforce the rights and remedies of the Trustee or the Noteholders hereunder or under the other Transaction Documents; and

 

(g)           exercise any and all rights, powers and privileges available to the Trustee or the Noteholders (whether at law, in equity or by contract).

 

Section 6.05                      Optional Preservation of Collateral

 

.  If an Event of Default exists, the Trustee shall, upon written request from the Control Party, elect, by giving written notice of such election to the Issuer, to take possession of and retain the Collateral intact, collect or cause the collection of all income, payments and proceeds thereof and make and apply all payments and deposits and maintain all accounts in respect of such Notes in accordance with the provisions of Article XIII.  If the Trustee is unable to or is stayed from giving such notice to the Issuer for any reason whatsoever, such election shall be effective as of the time of such request from the Control Party, as the case may be, notwithstanding any failure to give such notice, and the Trustee shall give such notice upon the removal or cure of such inability or stay (but shall have no obligation to effect such removal or cure).  Any such election may be rescinded with respect to any portion of the Collateral remaining at the time of such rescission by written notice to the Trustee and the Issuer from the Control Party.

 

Section 6.06                      Trustee May File Proofs of Claim

 

.  In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial Proceeding relating to the Issuer or the property of the Issuer or its creditors, the Trustee (irrespective of whether the principal of any of the Notes shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Issuer for the payment of overdue principal or interest) shall be entitled and empowered and shall, at the prior written direction of the Control Party, intervene in such proceeding or otherwise:

 

(a)           to file and prove a claim for all amounts of principal and interest owing and unpaid in respect of the Notes issued hereunder and to file such other papers or documents and take such other actions, including participating as a member, voting or otherwise, in any committee of creditors appointed in the matter as may be necessary or advisable in order to have the claims of the Trustee, the Noteholders, the Paying Agent, the Custodian (including any claim for the reasonable compensation, expenses, disbursements and advances of each such Person and their respective agents and counsel and any other amounts due the Trustee under Section 7.07) and of the Noteholders allowed in such judicial Proceeding;

 

 

  

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(b)           unless prohibited by applicable law and regulations, to vote at the direction of the Control Party on behalf of the Noteholders in any election of a trustee, a standby trustee or person performing similar functions in any such proceedings;

 

(c)           to petition for lifting of the automatic stay and thereupon to foreclose upon the Collateral as elsewhere provided herein; and

 

(d)           to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same; and any receiver, assignee, trustee, liquidator, or sequestrator (or other similar official) in any such judicial Proceeding is hereby authorized by the Noteholders and the Paying Agent to make such payments to the Trustee, and in the event that the Trustee shall consent to the making of such payments directly to each such Person, to pay to the Trustee or such Person any amount due to it for the reasonable compensation, expenses, disbursements and advances of each of the Trustee and such other Person, their agents and counsel, and any other amounts due the Trustee under Section 7.07.

 

Nothing contained in this Indenture shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Secured Party any plan of reorganization, arrangement, adjustment or composition affecting any of the Notes or the rights of any Secured Party, or to authorize the Trustee to vote in respect of the claim of any Secured Party in any such Proceeding; provided, however, that the Control Party shall be authorized to vote on all of the foregoing matters described above on behalf of the Noteholders and to consent to certain amendments as described under Section 10.02 hereof.

 

Section 6.07                      Trustee May Enforce Claims Without Possession of Notes.

 

(a)           In all Proceedings brought by the Trustee in accordance with this Indenture (and also any Proceedings involving the interpretation of any provision of this Indenture to which the Trustee shall be a party), the Trustee shall be held to represent all of the Noteholders and it shall not be necessary to make any Noteholder a party to any such Proceedings.

 

(b)           All rights of actions and claims under this Indenture or any of the Notes may be prosecuted and enforced by the Trustee without the possession of any of the Notes or the production thereof in any Proceeding relating thereto, and any such Proceedings instituted by the Trustee shall be brought with the prior written consent of the Control Party and in the Trustee’s own name as trustee of an express trust, and any recovery, whether by judgment, settlement or otherwise shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee and its agents and counsel, be for the benefit of the Noteholders, as the case may be.

 

Section 6.08                      Application of Money Collected.  If the Notes have been declared due and payable following an Event of Default and such declaration has not been rescinded or annulled, any money collected by the Trustee with respect to the Notes and the other Transaction Documents pursuant to this Article VI or otherwise and any other money that may be held thereafter by the Trustee as security for the Notes and the other Transaction Documents shall be applied in the order set forth in Section 13.03 on the earlier of the next Payment Date and such dates as the Trustee may designate for the release of such funds, to the same extent as if such date were a Payment Date.

 

 

  

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Section 6.09                      [Reserved]

 

Section 6.10                      Unconditional Right of the Noteholders to Receive Principal and Interest.  Notwithstanding any other provision in this Indenture, each Noteholder shall have the right, which is absolute and unconditional, to receive payment of the principal and interest on such Note on the dates on which such principal and interest becomes due and payable and to institute any Proceeding for the enforcement of any such payment, and such right shall not be impaired without the consent of such Noteholder.

 

Section 6.11                      Restoration of Rights and Remedies.  If the Trustee or any Noteholder has instituted any Proceeding to enforce any right or remedy under this Indenture and such Proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Noteholder, then, and in every case, the Issuer, the Trustee and the Noteholders shall, subject to any determination in such Proceeding, be restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies of the Trustee and the Noteholders shall continue as though no such Proceeding had been instituted.

 

Section 6.12                      Rights and Remedies Cumulative. Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Notes in the last paragraph of Section 2.08, no right or remedy herein conferred upon or reserved to the Trustee or to the Noteholders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

 

Section 6.13                      Delay or Omission Not Waiver.  No delay or omission of the Trustee or of any Noteholder to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or any acquiescence therein.  Every right and remedy given by this Article VI or by law to the Trustee or to the Noteholders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or the Noteholders, as the case may be.

 

Section 6.14                      Control by Control Party.  The Control Party shall have the right to direct in writing the time, method and place of conducting any Proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee; provided that:

 

(a)           such direction shall not be in conflict with any rule of law or with this Indenture including any provision hereof which expressly provides for approval by a percentage of Outstanding Note Balance of all Notes or of all Notes within a Class;

 

(b)           if the Trustee has reasonable grounds for believing that repayment of any funds expended or risked by it is not assured to it without an indemnity reasonably satisfactory to it against such risk or liability, such indemnity shall have been provided.

 

 

  

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Section 6.15                      Waiver of Certain Events by the Control Party.

 

        The Control Party may waive on behalf of all Noteholders any Event of Servicing Termination, Default or Event of Default and its consequences in each case except:

 

(i)           an Event of Default in the payment of interest on any Note when due or principal not paid at the Stated Maturity Date;

 

(ii)           in respect of a covenant or provision hereof which by its terms cannot be modified or amended without the consent of the Noteholder of each Outstanding Note affected thereby; or

 

(iii)           in the circumstances provided in Section 6.02 hereof.

 

Upon any such waiver, such Event of Servicing Termination, Default or Event of Default shall cease to exist, and any Event of Default shall be deemed to have been cured for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Event of Servicing Termination, Default or Event of Default or impair any right consequent thereon.

 

Section 6.16                      Additional Rights of Subordinate Noteholders.  At any time during the period from the first to occur of (i) the commencement of an Insolvency Event or any other insolvency proceeding with respect to the Issuer, (ii) the acceleration of the Class A Notes pursuant to Section 6.02 or (iii) the commencement of the foreclosure of any Collateral under this Article VI following the occurrence of an Event of Default, and without prejudice to any other rights of the Holders of the Class B-1 Notes under the Transaction Documents, any one or more Holders of the Class B-1 Notes shall initially have the sole right to deliver written notice, which notice shall be sent to the Trustee (the “Class A Buyout Notice”) electing to purchase (without recourse, warranty or representation (other than that the Holders of such Class A Notes own such Class A Notes free and clear of any Liens created or granted by the Holder of such Class A Notes)) the entire (but not less than the entire) aggregate amount of Outstanding Class A Notes (and all associated rights, titles, claims and privileges associated therewith) for an amount (the “Class A Buyout Price”) equal to the Outstanding Note Balance of, and accrued but unpaid interest on, the Class A Notes (excluding therefrom any premium or penalty otherwise payable). The Trustee agrees that it shall give to the Holders of the Class B-1 Notes and the Class B-2 Notes written notice of the events described in clauses (i), (ii), and (iii) of this Section 6.16 promptly upon its receiving notice of such event or a Responsible Officer of the Trustee having actual knowledge thereof (such date of notice, the “Default Notice Date”).

 

If no Holder of the Class B-1 Notes exercises its rights to purchase the Class A Notes within ten (10) Business Days of the Default Notice Date, then, without prejudice to any other rights of the Holders of the Class B-2 Notes under the Transaction Documents, any one or more Holders of the Class B-2 Notes shall then have the sole right to deliver the Class A Buyout Notice, which notice shall be sent to the Trustee electing to purchase (without recourse, warranty or representation (other than that the Holders of such Class A Notes own such Class A Notes free and clear of any Liens created or granted by the Holder of such Class A Notes)) the entire (but not less than the entire) aggregate amount of Outstanding Class A Notes (and all associated rights, titles, claims and privileges associated therewith) for the Class A Buyout Price.

 

 

  

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The purchase of the Class A Notes pursuant to this Section shall close no later than the date specified in the operative Class A Buyout Notice. The Class A Buyout Price shall be remitted by wire transfer in immediately available federal funds to the Trustee.  Interest shall be calculated to but excluding the Business Day on which such purchase shall occur if the Class A Buyout Price is wired to the Trustee prior to 11:00 am New York time and interest shall be calculated to and including such Business Day if the Class A Buyout Price is wired to the Trustee, later than 11:00 am New York time.

 

Section 6.17                      Waiver of Stay or Extension Laws.  The Issuer covenants (to the extent that it may lawfully do so) that it will not, at any time, insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture; and the Issuer (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted.

 

Section 6.18                      Sale of Collateral.

 

(a)           The power to effect any sale (a “Sale”) of any portion of the Collateral pursuant to Section 6.04 shall not be exhausted by any one or more Sales as to any portion of the Collateral remaining unsold, but shall continue unimpaired until the entire Collateral securing the Notes shall have been sold or all amounts payable on the Notes and under this Indenture and the other Transaction Documents shall have been paid.  The Trustee may from time to time postpone any Sale by public announcement made at the time and place of such Sale.

 

(b)           To the extent permitted by applicable law, the Trustee shall not, in any private Sale, sell to one or more third parties, or otherwise liquidate, all or any portion of the Collateral, unless:

 

(i)           the Control Party consents to such Sale or liquidation; or

 

(ii)           the proceeds of such Sale or liquidation available to be distributed to the Noteholders are sufficient to pay in full all amounts then due with respect to the Notes and, without duplication, all amounts owed to the Servicer, Originator, Trustee, Custodian, and Back-up Servicer.

 

(c)           Any Noteholder may bid for and acquire any portion of the Collateral in connection with a Sale thereof.  After the Trustee has received each offer to purchase all or any portion of the Collateral, the Trustee shall notify each Class B-1 Noteholder and Class B-2 Noteholder of the highest offer (the date of such notification, the “Collateral Purchase Notice Date”) and any one or more Class B-1 Noteholders will initially have the sole right to purchase (not later than five Business Days after delivery of written notice to the Trustee of exercise of each right to purchase) the Collateral at the highest price there offered. If no Holder of the Class B-1 Notes exercises its rights to purchase the Collateral within ten (10) Business Days of the Collateral Purchase Notice Date, the Trustee shall notify each Class B-2 Noteholder of the highest offer and any one or more Class B-2 Noteholders will then have the sole 

 

  

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right to purchase (not later than five Business Days after delivery of written notice to the Trustee of exercise of each right to purchase) the Collateral at the highest price there offered. If a Noteholder submits the highest bid, in lieu of paying cash therefor, such bidder may make settlement for the purchase price by crediting against the purchase price that portion of the net proceeds of such Sale to which such bidder would be entitled, after deducting the reasonable costs, charges and expenses (including reasonable attorneys’ fees and expenses) incurred by such Noteholder in connection with such Sale. The Notes need not be produced in order to complete any such Sale, or in order for the net proceeds of such Sale to be credited against the Notes.  The Noteholders may hold, lease, operate, manage or otherwise deal with any property so acquired in any manner permitted by law.

 

(d)           The Trustee shall execute and deliver an appropriate instrument of conveyance provided to it by the Servicer transferring its interest in any portion of the Collateral in connection with a Sale thereof.  In addition, the Trustee is hereby irrevocably appointed the agent and attorney-in-fact with full irrevocable power and authority in the place and stead of the Issuer and in the name of the Issuer or in its own name, from time to time, from and after the occurrence of an Event of Default for the purpose of exercising the rights and remedies of the Trustee hereunder and, to take any and all action and to execute and deliver any and all documents and instruments which may be necessary or desirable to accomplish the foregoing, including without limitation, to transfer and convey its interest in any portion of the Collateral in connection with a Sale thereof, and to take all action necessary to effect such Sale.  No purchaser or transferee at such a sale shall be bound to ascertain the Trustee’s authority, inquire into the satisfaction of any conditions precedent or see to the application of any monies.

 

(e)           The method, manner, time, place and terms of any Sale of all or any portion of the Collateral shall be commercially reasonable.  The Trustee shall incur no liability for any Sale conducted in accordance with this Section.

 

Section 6.19                      Action on Notes.  The Trustee’s right to seek and recover judgment on the Notes or under this Indenture or the other Transaction Documents shall not be affected by the seeking, obtaining or application of any other relief under or with respect to this Indenture or the other Transaction Documents.  Neither the lien of this Indenture nor any rights or remedies of the Trustee or the Noteholders shall be impaired by the recovery of any judgment by the Trustee against the Issuer or by the levy of any execution under such judgment upon any portion of the Collateral or upon any of the assets of the Issuer.

 

ARTICLE VII

THE TRUSTEE

 

Section 7.01                      Certain Duties and Immunities.

 

(a)           Except during the existence of an Event of Default known to the Trustee as provided in subsection (e) below:

 

(i)           the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and

 

  

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(ii)           in the absence of bad faith or negligence on its part, the Trustee may conclusively rely as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such certificates or opinions, which by any provision hereof are specifically required to be furnished to the Trustee, such certificate or opinion shall cite the applicable provision and the Trustee shall be under a duty to examine the same and to determine whether or not they conform to the requirements of this Indenture.

 

(b)           So long as any Event of Default or Event of Servicing Termination exists, the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and shall use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs, and nothing contained herein shall relieve the Trustee of such obligations.

 

(c)           No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct or bad faith (as determined by a court of competent jurisdiction), except that:

 

(i)           this subsection (c) shall not be construed to limit the effect of subsection (a) of this Section;

 

(ii)           neither the Trustee nor any of its officers, directors, employees or agents shall be liable with respect to any action taken or omitted to be taken by the Trustee in good faith in accordance with the written direction (A) given pursuant to this Indenture or (B) by the Control Party in accordance with Section 6.14 relating to the time, method and place of conducting any Proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture;

 

(iii)           no provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any liability (financial or otherwise) in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds is not assured to it without an indemnity reasonably satisfactory to it against such risk or liability; and

 

(iv)           the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be conclusively proven by a court of competent jurisdiction that the Trustee was negligent in ascertaining the pertinent facts.

 

(d)           Whether or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section 7.01.

 

(e)           For all purposes under this Indenture, the Trustee shall not be deemed to have notice of any Default, Event of Default (except as described in Section 6.01(a) or (b)) or Event of Servicing Termination unless a Responsible Officer assigned to and working in the Trustee’s Corporate Trust Office has actual knowledge or has received written notice (at the address and in the manner specified in Section 14.03) of any such event, and such notice references (i) the Notes generally, the Issuer or this Indenture or (ii) the applicable Default, Event of Default or Event of Servicing Termination.

 

 

  

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(f)           Subject to Section 7.03(e), the Trustee shall be under no obligation to institute any suit, or to take any remedial proceeding under this Indenture, or to enter any appearance or in any way defend in any suit in which it may be made defendant, or to take any steps in the execution of the trusts hereby created or in the enforcement of any rights and powers hereunder if it has reasonable grounds for believing that repayment of any funds expended or risked by it is not assured to it without an indemnity reasonably satisfactory to it against such risk or liability, until such indemnity shall have been provided.

 

(g)           Notwithstanding any extinguishment of all right, title and interest of the Issuer in and to the Collateral following an Event of Default and a consequent declaration of acceleration of the maturity of the Notes, whether such extinguishment occurs through a Sale of the Collateral to another person or the acquisition of the Collateral by the Noteholders, the rights of the Noteholders shall continue to be governed by the terms of this Indenture.

 

(h)           Notwithstanding anything to the contrary contained herein, the provisions of subsections (e) through (g), inclusive, of this Section 7.01 shall be subject to the provisions of subsections (a) through (c), inclusive, of this Section 7.01.

 

(i)           At all times during the term of this Indenture, the Trustee and the Custodian shall keep at their Corporate Trust Office for inspection by the Noteholders, the Contract Schedule and all amendments thereto delivered to it.

 

(j)           The Trustee shall have no obligation to ascertain whether any payment of interest on an overdue installment of interest is legally enforceable.

 

Section 7.02                      Notice of Default and Other Events.  Promptly upon the existence of any Default or Event of Default or Event of Servicing Termination known to the Trustee (within the meaning of Section 7.01(e)), the Trustee shall transmit by telephonic or telecopy communication confirmed by mail to all Noteholders, as their names and addresses appear in the Note Register, notice of such event hereunder known to the Trustee.

 

Section 7.03                      Certain Rights of Trustee.  Except as otherwise provided in Section 7.01:

 

(a)           the Trustee may in good faith conclusively rely and shall be fully protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note or other obligation, paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties;

 

(b)           any request or direction of the Issuer mentioned herein shall be sufficiently evidenced by an Issuer Request, an Issuer Order, or any writing executed by a duly authorized officer of the Issuer;

 

 

  

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(c)           whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith, negligence or willful misconduct on its part, reasonably request and conclusively rely upon an Officer’s Certificate of the Servicer or the Issuer;

 

(d)           the Trustee may consult with counsel selected by it with due care and familiar with such matters and the written advice or opinion of such counsel or any Opinion of Counsel (in form and substance satisfactory to the Trustee and addressed to the Trustee) shall be full and complete authorization and protection and the Trustee shall not be liable in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon;

 

(e)           the Trustee may, at any time during the administration of this Indenture, request and receive a written direction from the Control Party in connection with actions to be taken in its capacity as Trustee and shall not be liable for any action taken or omitted in good faith reliance thereon;

 

(f)           the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture which are exercisable at the request or direction of any of the Noteholders or the Control Party pursuant to this Indenture, if it has reasonable grounds for believing that repayment of the costs, expenses (including legal fees and expenses) and liabilities which might be incurred by it in compliance with such request or direction is not assured to it without an indemnity reasonably satisfactory to it against such cost, expense or liability;

 

(g)           the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, approval, entitlement, bond, note or other paper or document, unless requested in writing to do so by the Control Party; provided, however, that the Trustee shall be under no obligation to make such investigation if it has reasonable grounds for believing that repayment of any cost, expense or liability likely to be incurred in making such investigation is not assured to it without an indemnity reasonably satisfactory to it against such cost, expense or liability, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Issuer, upon reasonable notice and at reasonable times personally or by agent or attorney;

 

(h)           the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder, either directly or by or through agents, custodians, nominees or attorneys provided that the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed by it with due care; and

 

(i)           except as otherwise agreed in writing, the Trustee shall not be responsible for the payment of any interest on amounts deposited with it hereunder.

 

Notwithstanding the foregoing, nothing in this Indenture or the Servicing Agreement or any other Transaction Document regarding the Trustee shall limit the Back-up Servicer’s obligations under this Indenture or the Servicing Agreement or any other Transaction Document, which shall be governed by the respective agreement.

 

 

  

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Section 7.04                      Not Responsible for Recitals or Issuance of Notes.

 

(a)           The recitals contained herein and in the Notes, except the certificates of authentication on the Notes, shall be taken as the statements of the Issuer, and the Trustee assumes no responsibility for their correctness or validity.  Other than pursuant to Section 7.17 hereof, the Trustee makes no representations as to the validity, adequacy or condition of the Collateral or any part thereof, or as to the title of the Issuer thereto or as to the security afforded thereby or hereby, or as to the validity or genuineness of any securities at any time pledged and deposited with the Trustee hereunder or as to the validity or sufficiency of this Indenture or of the Notes.  The Trustee shall not be accountable for the use or application by the Issuer of Notes or the proceeds thereof or of any money paid to the Issuer or upon Issuer Order or for the use or application by the Servicer of any amounts paid to the Servicer under any provisions hereof.

 

(b)           Except as otherwise expressly provided herein or in the other Transaction Documents, and without limiting the generality of the foregoing, the Trustee shall have no responsibility or liability for or with respect to the existence or validity of any Contract, the perfection of any security interest (whether as of the date hereof or at any future time), the filing of any financing statements, amendments thereto, or continuation statements, the maintenance of or the taking of any action to maintain such perfection, the validity of the assignment of any portion of the Collateral to the Trustee or of any intervening assignment, the review of any Contract (it being understood that the Trustee (in its capacity as Trustee) has not reviewed and does not intend to review the substance or form of any such Contract), the performance or enforcement of any Contract, the compliance by the Issuer, the Servicer, the Originator or any Obligor with any covenant or the breach by the Issuer, the Servicer, the Originator or any Obligor of any warranty or representation made hereunder or in any related document or the accuracy of any such warranty or representation, any investment of monies in the Collection Account, or any loss resulting therefrom (other than losses from nonpayment of investments in obligations of U.S. Bank National Association issued in its capacity other than as Trustee or investments made in violation of the provisions hereof), the acts or omissions of the Issuer, the Servicer, the Originator or any Obligor or any action of the Issuer, the Originator or the Servicer taken in the name of the Trustee or the validity of the Servicing Agreement.

 

(c)           The Trustee shall not have any obligation or liability under any Contract by reason of or arising out of this Indenture or the granting of a security interest in such Contract hereunder or the receipt by the Trustee of any payment relating to any Contract pursuant hereto, nor shall the Trustee be required or obligated in any manner to perform or fulfill any of the obligations of the Issuer under or pursuant to any Contract, or to make any payment, or to make any inquiry as to the nature or the sufficiency of any payment received by it, or the sufficiency of any performance by any party, under any Contract.

 

Section 7.05                      May Hold Notes.  The Trustee, any Paying Agent, Note Registrar, or Authenticating Agent may, in its individual capacity, become the owner or pledgee of Notes.

 

 

  

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       Section 7.06                      Money Held in Trust.  Money and investments held in trust by the Trustee or any Paying Agent hereunder shall be held in one or more segregated, trust accounts (which shall be Eligible Accounts), in the name of the Trustee on behalf of the Secured Parties at the Corporate Trust Office, which accounts shall bear a designation clearly indicating that the funds deposited therein are held for the benefit of the Secured Parties.  The Trustee or any Paying Agent shall be under no liability for interest on any money received by it hereunder except as otherwise agreed in writing with the Issuer or otherwise specifically provided herein (in such case subject to the provisions of Section 13.03).

 

Section 7.07                      Compensation and Reimbursement.  The Issuer agrees:

 

(a)           Solely from amounts distributed from the Collection Account pursuant to Section 13.03, to:  (i) pay the Trustee monthly its fee for all services rendered by it hereunder as Trustee, in the amount of the Trustee Fee (which compensation shall not otherwise be limited by any provision of law in regard to the compensation of a trustee of an express trust), (ii) pay the Custodian monthly its fee for all services rendered by it hereunder as Custodian, in the amount of the Custodian Fee and (iii) pay to the Back-up Servicer its fee for all services rendered by it hereunder and under the Servicing Agreement as Back-up Servicer, in the amount of the Back-up Servicer Fee, in each case in accordance with the priorities set forth in Section 13.03;

 

(b)           except as otherwise expressly provided herein and solely from amounts distributed pursuant to Section 13.03, to reimburse the Trustee, the Custodian or the Back-up Servicer upon its request for all reasonable out-of-pocket expenses, disbursements and advances incurred or made by the Trustee, the Custodian or the Back-up Servicer, respectively, in accordance with any provision of this Indenture or the Servicing Agreement or any other Transaction Document relating thereto (including the reasonable compensation and the expenses and disbursements of the Trustee’s, the Custodian’s and Back-up Servicer’s agents and counsel), except any such expense, disbursement or advance as may be attributable to its willful misconduct, negligence or bad faith; and

 

(c)           to indemnify and hold harmless the Trustee, the Custodian, the Securities Intermediary, the Back-up Servicer and their respective officers, directors, employees, representatives and agents from and against, and reimburse for, any loss, claim, obligation, action, suit liability, expense, penalty, stamp or other similar tax, reasonable costs and expenses (including reasonable attorneys’ and agents’ fees and expenses) damage or injury (to person, property or natural resources) of any kind and nature sustained or suffered by the Trustee, the Custodian, the Securities Intermediary and the Back-up Servicer by reason of any acts or omissions (or alleged acts or omissions) of the Trustee, the Custodian, the Securities Intermediary or the Back-up Servicer under the Transaction Documents or arising directly or indirectly out of the activities of the Issuer or any of the transactions contemplated hereby (including any violation of any applicable laws by the Issuer as a result of the transactions contemplated by this Indenture) or the participation by the Trustee, the Custodian, the Securities Intermediary and the Back-up Servicer in the transactions contemplated by the Transaction Documents, including any judgment, award, settlement, reasonable attorneys’ fees and other expenses incurred in connection with the defense of any actual or threatened action,

 

  

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proceeding or claim; provided that, the Issuer shall not indemnify the Trustee, the Custodian, the Securities Intermediary or the Back-up Servicer if such loss, liability, expense, damage or injury is due to the Trustee’s, theCustodian’s, the Securities Intermediary’s or the Back-up Servicer’s negligence or willful misconduct, willful misfeasance or bad faith in the performance of duties; provided, further, that all amounts payable in respect of such indemnity shall be payable by the Issuer solely from the amounts distributed pursuant to Section 13.03 or released from the Lien of this Indenture.  The provisions of this indemnity shall run directly to and be enforceable by an injured person subject to the limitations hereof and the provisions of this Section 7.07 shall survive the termination of this Indenture or the earlier resignation or removal of the Trustee, the Custodian, the Securities Intermediary or the Back-up Servicer.

 

(d)           The Trustee hereby acknowledges and agrees that if the Servicer and/or the Issuer fails to pay the amounts set forth in this Section 7.07, the Trustee will continue to perform its obligations under this Indenture, regardless of the Servicer and/or the Issuer’s failure to pay such amounts, until the appointment of a successor Trustee in accordance with Section 7.09 of this Indenture; provided, however, that in such event, the Trustee shall continue to be entitled to be paid all accrued amounts due it pursuant to this Section 7.07 from amounts payable pursuant to Section 13.03.

 

Section 7.08                      Corporate Trustee Required; Eligibility.  There shall at all times be a trustee hereunder, who shall be the Trustee, which shall:  (a) be a banking corporation or association organized and doing business under the laws of the United States of America or of any state, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least $100,000,000 and subject to supervision or examination by federal or state authority and having an office within the United States of America; and (b) have a commercial paper or other short-term rating of at least A-1/P-1 from each of Moody’s and S & P.  If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.  If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect hereinafter specified in this Article.

 

Section 7.09                      Resignation and Removal; Appointment of Successor.

 

(a)           No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article shall become effective until the acceptance of appointment by the successor Trustee.

 

(b)           The Trustee may resign at any time by giving thirty (30) days’ prior written notice thereof to the Issuer and the Noteholders.  If an instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee within thirty (30) days after the giving of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor Trustee, whose acceptance will not be unreasonably withheld or delayed.  Such court may thereupon, after such notice, if any, as it may deem proper and may prescribe, appoint a successor Trustee.

 

(c)           The Trustee may be removed by the Control Party at any time if one of the following events has occurred:

 

 

  

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                (i)           the Trustee shall cease to be eligible under Section 7.08 and shall fail to resign after written request therefor by the Issuer or the Control Party;

 

(ii)           the Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver of the Trustee or of its property shall be appointed or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation;

 

(iii)           the Trustee has failed to perform its duties in accordance with this Indenture or has breached any representation of warranty made in this Indenture; or

 

(iv)           upon thirty (30) days’ prior written notice of termination by the Control Party.

 

(d)           If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of the Trustee for any cause with respect to any of the Notes, the Issuer shall promptly appoint a successor Trustee.  If no successor Trustee shall have been so appointed by the Issuer within thirty (30) days of notice of removal or resignation and shall have accepted appointment in the manner hereinafter provided, then the Control Party may appoint a successor Trustee.  No removal or resignation of the Trustee shall become effective until the acceptance of the appointment of a successor Trustee that is eligible to act as Trustee under Section 7.08.

 

(e)           The Issuer shall give notice in the manner provided in Section 14.03 of each resignation and each removal of the Trustee and each appointment and acceptance of appointment of a successor Trustee with respect to the Notes.  Each notice shall include the name of the successor Trustee and the address of its Corporate Trust Office.

 

(f)           All amounts owing to the resigning or removed Trustee shall be payable solely on the next scheduled date for distributions and solely in accordance with the priorities set forth in Section 13.03.

 

Section 7.10                      Acceptance of Appointment by Successor. Every successor Trustee appointed hereunder shall execute, acknowledge and deliver to the Issuer, the Secured Parties and the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee but, on request of the Issuer, the Control Party or the successor Trustee, such retiring Trustee shall execute and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee, and shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder.  Upon request of any such successor Trustee or the Control Party, the Issuer shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor Trustee all such rights, powers and trusts.

 

No successor Trustee shall accept its appointment unless at the time of such acceptance such successor Trustee shall be eligible under this Article.

 

 

  

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Section 7.11                      Merger, Conversion, Consolidation or Succession to Business of Trustee.  Any Person into which the Trustee may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder (provided that such successor shall at all times be required to be eligible under Section 7.08), without the execution or filing of any paper or any further act on the part of any of the parties hereto.  In case any Notes have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Notes so authenticated with the same effect as if such successor Trustee had itself authenticated such Notes.

 

Section 7.12                      Co-Trustees and Separate Trustees.

 

(a)           At any time or times, for the purpose of meeting the legal requirements of any jurisdiction in which any of the Collateral may at the time be located, the Issuer and the Trustee shall have power to appoint, and, upon the written request of the Trustee, the Issuer shall for such purpose join with the Trustee in the execution, delivery and performance of all instruments and agreements necessary or proper to appoint, one or more Persons approved by the Trustee and meeting the eligibility standards for the Trustee specified in Section 7.08, either to act as Co-Trustee, jointly with the Trustee of all or any part of such Collateral, or to act as separate Trustee of any such property (a “Co-Trustee”), in either case with such powers as may be provided in the instrument of appointment, and to vest in such Person or persons in the capacity aforesaid, any property, title, right or power deemed necessary or desirable, subject to the other provisions of this Section.  If the Issuer does not join in such appointment within fifteen (15) days after the receipt by it of a request so to do, or, in case an Event of Default exists, the Trustee alone shall have power to make such appointment.

 

(b)           Should any written instrument from the Issuer be reasonably required by any Co-Trustee or separate Trustee so appointed for more fully confirming to such Co-Trustee or separate Trustee such property, title, right or power, any and all such instruments shall, on request, be executed, acknowledged and delivered by the Issuer.

 

(c)           Every Co-Trustee or separate Trustee shall, to the extent permitted by law, but to such extent only, be appointed subject to the following terms:

 

(i)           the Notes shall be authenticated and delivered by, and all rights, powers, duties and obligations hereunder in respect of the custody of securities, cash and other personal property held by, or required to be deposited or pledged with, the Trustee hereunder, shall be exercised solely by the Trustee;

 

(ii)           the rights, powers, duties and obligations hereby conferred or imposed upon the Trustee in respect of any property covered by such appointment shall be conferred or imposed upon and exercised or performed by the Trustee or by the Trustee and such Co-Trustee or separate Trustee jointly, as shall be provided in the instrument appointing such Co-Trustee or separate Trustee, except to the extent that under any law of any jurisdiction in which any particular act is to be performed, the Trustee shall be incompetent or unqualified to perform such act, in which event such rights, powers, duties and obligations shall be exercised and performed by such Co-Trustee or separate Trustee at the direction or with the consent of the Trustee;

 

  

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(iii)           the Trustee at any time, by an instrument in writing executed by it and, prior to the occurrence of an Event of Default, the Issuer, may accept the resignation of or remove any Co-Trustee or separate Trustee, appointed under this Section, and, in case an Event of Default exists, the Trustee shall have power to accept the resignation of, or remove, any such Co-Trustee or separate Trustee without the concurrence of the Issuer.  Upon the written request of the Trustee, the Issuer shall join with the Trustee in the execution, delivery and performance of all instruments and agreements necessary or proper to effectuate such resignation or removal.  A successor to any Co-Trustee or separate Trustee that has so resigned or been removed may be appointed in the manner provided in this Section;

 

(iv)           no Co-Trustee or separate Trustee hereunder shall be personally liable by reason of any act or omission of the Trustee or any other such Trustee hereunder nor shall the Trustee be liable by reason of any act or omission of any Co-Trustee or separate Trustee selected by the Trustee with due care or appointed in accordance with directions to the Trustee pursuant to Section 6.14 provided, that the appointment of any Co-Trustee or separate Trustee shall not relieve the Trustee from any of its express duties and obligations under this Indenture; and

 

(v)           any Act of Noteholders delivered to the Trustee shall be deemed to have been delivered to each such Co-Trustee and separate Trustee.

 

Section 7.13                      Maintenance of Office or Agency; Initial Appointment of Payment Agent.  The Note Registrar will maintain an office within the State of New York or the State of Minnesota where Notes may be presented or surrendered for payment, where Notes may be surrendered for registration of transfer or exchange and where notices and demand to or upon the Issuer in respect of the Notes and this Indenture may be served.  The Issuer hereby appoints the Trustee as the Paying Agent and its Corporate Trust Office as the office for each of said purposes.

 

Section 7.14                      Appointment of Authenticating Agent.  The Trustee may at its expense appoint an Authenticating Agent or Authenticating Agents with respect to the Notes which shall be authorized to act on behalf of the Trustee to authenticate Notes issued upon original issue or upon exchange, registration of transfer or pursuant to Section 2.08, and Notes so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder.  Wherever reference is made in this Indenture to the authentication and delivery of Notes by the Trustee or the Trustee certificate of authentication or the delivery of Notes to the Trustee for authentication, such reference shall be deemed to include authentication and delivery on behalf of the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of the Trustee by an Authenticating Agent and delivery of the Notes to the Authenticating Agent on behalf of the Trustee.  Each Authenticating Agent shall be acceptable to the Issuer (whose acceptance shall not be unreasonably withheld or delayed) and shall at all times be a corporation having a combined capital and surplus of not less than the equivalent of $50,000,000 and subject to supervision or examination by federal or state authority or the equivalent 

 

 

  

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foreign authority, in the case of an Authenticating Agent who is not organized and doing business under the laws of the United States of America, any state thereof or the District of Columbia.  If such Authenticating Agent publishes reports of condition at least annually, pursuant to law or to the requirements of said supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such Authenticating Agent shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.  If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, such Authenticating Agent shall resign immediately in the manner and with the effect specified in this Section.

 

Any corporation into which an Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which such Authenticating Agent shall be a party, or any corporation succeeding to the corporate agency or corporate trust business of such Authenticating Agent, shall continue to be an Authenticating Agent without the execution or filing of any paper or any further act on the part of the Trustee or such Authenticating Agent, provided that such corporation shall be otherwise eligible under this Section.

 

An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee and to the Issuer.  The Trustee may at any time terminate the agency of an Authenticating Agent by giving written notice thereof to such Authenticating Agent, the Noteholders and to the Issuer.  Upon receiving such a notice of resignation or upon such a termination, or in case at any time such Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may appoint a successor Authenticating Agent which shall be acceptable to the Issuer and, after the occurrence of an Event of Default, the Control Party, and shall mail written notice of such appointment by first-class mail, postage prepaid, to all Noteholders, if any, with respect to which such Authenticating Agent will serve, as their names and addresses appear in the Note Register.  Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers and duties of its predecessor hereunder, with like effect as if originally named as an Authenticating Agent.  No successor Authenticating Agent shall be appointed unless eligible under the provisions of this Section.

 

If an appointment is made pursuant to this Section, the Notes may have endorsed thereon, in addition to the Trustee certificate of authentication, an alternate certificate of authentication in the following form:

 

 

  

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This is one of the Notes described in the within-mentioned Indenture.

 

	 	U.S. Bank National Association, as Trustee	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	As Authenticating Agent 	 
	 	 	 	 

	
 

	
By: 

	 	 
	 	 	As Authenticating Agent 	 
	 	 	 	 

 

Section 7.15                      Appointment of Paying Agent other than Trustee; Money for Note Payments to be Held in Trust.

 

If, at the request of the Trustee, a party other than the Trustee is ever appointed as a Paying Agent, the Issuer will cause such Paying Agent to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee that, subject to the provisions of this Section, such Paying Agent will:

 

(a)           hold all sums held by it for the payment of principal or interest on Notes in trust in an Eligible Account in the name of the Trustee on behalf of the Issuer at the Corporate Trust Office, which account shall bear a designation clearly indicating that the funds deposited therein are held for the benefit of the Secured Parties, until such sums shall be paid to such Persons or otherwise disposed of as provided in Section 13.03;

 

(b)           give the Trustee and the Noteholders notice of any Default by the Issuer (or any other obligor upon the Notes) in the making of any payment of principal or interest; and

 

(c)           at any time, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

 

The Issuer may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Issuer Order direct any Paying Agent to pay, to the Trustee all sums held in trust by such Paying Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such money.

 

Subject to Section 11.04, any money deposited with the Trustee or any Paying Agent in trust for the payment of the principal or interest on any Note and remaining unclaimed for two years after such principal or interest has become due and payable shall be paid to the Issuer on Issuer Request, and the Noteholder of such Note shall thereafter, as an unsecured general creditor, and subject to any applicable statute of limitations, look only to the Issuer for payment thereof, and all liability of the Trustee and such Paying Agent with respect to such trust money or the related Note, shall thereupon cease; provided that the Trustee or such Paying Agent, before

 

 

  

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being required to make any such repayment, may (upon delivery of an Issuer Order), cause to be published once, in a newspaper published in the English language, customarily published on each Business Day and of general circulation in the city in which the Corporate Trust Office is located, notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than thirty (30) days from the date of such publication, any unclaimed balance of such money then remaining will be repaid to the Issuer.  The Trustee may also adopt and employ any other reasonable means of notification of such repayment (including mailing notice of such repayment to the Noteholders whose right to or interest in monies due and payable but not claimed is determinable from the records of any Paying Agent, at the last address as shown on the Note Register for each such Noteholder).  No additional interest shall accrue on the related Note subsequent to the date on which such funds were available for distribution to such Noteholder.

 

Section 7.16                      Rights with Respect to the Servicer and Back-up Servicer.  The Trustee’s rights and obligations with respect to the Servicer and the Back-up Servicer shall be governed by this Indenture, the Servicing Agreement and the other Transaction Documents.

 

Section 7.17                      Representations and Warranties of the Trustee.  The Trustee hereby represents and warrants for the benefit of the parties hereto and the Secured Parties that:

 

(a)           Organization and Good Standing.  The Trustee is a national banking association duly organized, validly existing and in good standing under the laws of the United States, and has the power to own its assets and to transact the business in which it is presently engaged;

 

(b)           Authorization.  The Trustee has the power, authority and legal right to execute, deliver and perform this Indenture and each other Transaction Document to which it is a party and to authenticate the Notes, and the execution, delivery and performance of this Indenture and each other Transaction Document and the authentication of the Notes has been duly authorized by the Trustee by all necessary corporate action;

 

(c)           Binding Obligations.  This Indenture and each other Transaction Document to which the Trustee is a party, assuming due authorization, execution and delivery by the other parties hereto and thereto, constitute the legal, valid and binding obligations of the Trustee, enforceable against the Trustee in accordance with its terms, except that (i) such enforcement may be subject to bankruptcy, insolvency, reorganization, moratorium or other similar laws (whether statutory, regulatory or decisional) now or hereafter in effect relating to creditors’ rights generally and the rights of trust companies in particular and (ii) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to certain equitable defenses and to the discretion of the court before which any proceeding therefore may be brought, whether in a proceeding at law or in equity;

 

(d)           No Violation.  The performance by the Trustee  of its obligations under this Indenture and each other Transaction Document to which the Trustee is a party will not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice, lapse of time or both) a default under, the charter documents or bylaws of the Trustee;

 

 

  

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(e)           No Proceedings.  To the best of its knowledge, there are no proceedings or investigations to which the Trustee is a party pending, or, to the knowledge of the Trustee, threatened, before any court, regulatory body, administrative agency or other tribunal or Governmental Authority (A) asserting the invalidity of this Indenture or any other Transaction Documents, (B) seeking to prevent the issuance of the Notes or the consummation of any of the transactions contemplated by this Indenture or any other Transaction Document or (C) seeking any determination or ruling that would materially and adversely affect the performance by the Trustee of its obligations under, or the validity or enforceability of, this Indenture, the Notes or any other Transaction Documents;

 

(f)           Approvals.  Neither the execution or delivery by the Trustee of this Indenture or any other Transaction Document to which it is a party nor the consummation of the transactions by the Trustee contemplated hereby or by any other Transaction Document to which it is a party requires the consent or approval of, the giving of notice to, the registration with or the taking of any other action with respect to any Governmental Authority under any existing federal or state law governing the banking or trust powers of the Trustee; and

 

(g)           Eligibility.  The Trustee meets the eligibility requirements set forth in Section 7.08 hereof.

 

ARTICLE VIII

THE CUSTODIAN

 

Section 8.01                      Appointment of Custodian.  Subject to the terms and conditions hereof, the Issuer hereby revocably appoints the Custodian, and the Custodian hereby accepts such appointment and agrees to act as Custodian on behalf of the Secured Parties to maintain exclusive custody of the Contract Files in order to perfect the ownership interest of the Issuer in the Contracts and the security interest of the Secured Parties in the Contracts and the other items in the Contract Files and any and all proceeds of the foregoing; provided that from and after the release or discharge of the Secured Parties’ lien in and to the Contracts and the other items in the Contract Files and any and all proceeds of the foregoing, the Custodian shall serve as exclusive agent and custodian of the Issuer with respect to the Contract Files.

 

Section 8.02                      Removal of Custodian. With or without cause, with sixty (60) days’ notice, (a) prior to the occurrence of an Event of Default the Issuer may, with the prior written consent of the Control Party, or (b) following the occurrence of an Event of Default, the Control Party may, remove and discharge the Custodian from the performance of its duties under this Indenture with respect to any or all of the Contracts and related Contract Files by written notice from the Issuer or the Control Party, as the case may be, to the Custodian, with a copy to the Trustee and the Servicer.  Having given notice of such removal, the Issuer (prior to the occurrence of an Event of Default) or the Control Party (following the occurrence of an Event of Default) shall, by written instrument and with the consent of the Control Party (if the notice of removal came from the Issuer), promptly appoint a successor custodian to act on behalf of the Issuer in replacement of the Custodian under this Indenture, which successor Custodian shall be satisfactory to the Control Party in its sole discretion.  In the event of any such removal, the Custodian shall promptly transfer to the successor custodian, as directed, all affected Contracts and related Contract Files.  In the event of removal of the Custodian for cause and the appointment of a successor custodian under this 

 

 

  

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 Indenture, the expenses of transferring the Contracts and related Contract Files to the successor custodian shall be at the expense of the Custodian.  In the event of removal of the Custodian without cause by the Issuer (prior to the occurrence of an Event of Default) or the Control Party, as the case may be, and the appointment of a successor custodian under this Indenture, the Issuer shall be responsible for the expenses of transferring the Contracts and related Contract Files to the successor custodian.  Notwithstanding the foregoing, this Indenture shall remain in full force and effect with respect to any Contracts and related Contract Files for which this Indenture is not terminated hereunder.  The Custodian may petition a court of competent jurisdiction to appoint a successor hereunder if no successor is appointed within such 60-day notice period.

 

Section 8.03                      Termination by Custodian. The Custodian may terminate its obligations under this Indenture upon at least sixty (60) days’ notice to the Servicer, the Issuer and the Noteholders; provided, no termination shall be effective until appointment of a successor acceptable to the Issuer or, if an Event of Default has occurred, the Control Party.  In the event of such termination, the Issuer shall promptly appoint a successor custodian; provided that after the occurrence of an Event of Default, solely the Control Party may appoint a successor custodian.  The payment of such successor custodian’s fees and expenses with respect to each Contract and related Contract Files shall be solely the responsibility of the Issuer.  Upon such appointment, the Custodian shall promptly transfer to the successor custodian, as directed, all Contracts and related Contract Files being held under this Indenture.  The Custodian may petition a court of competent jurisdiction to appoint a successor hereunder if no successor is appointed within such sixty (60) day notice period.

 

Section 8.04                      Limitations on the Custodian’s Responsibilities.

 

(a)           Except as provided herein, the Custodian shall be under no duty or obligation to inspect, review or examine the Contracts or related Contract Files to determine that the contents thereof are appropriate for the represented purpose or that they have been actually recorded or that they are other than what they purport to be on their face.

 

(b)           The Custodian shall not be responsible for preparing or filing any reports or returns relating to federal, state or local income taxes with respect to this Indenture, other than for the Custodian’s compensation or for reimbursement of expenses.

 

(c)           The Custodian shall not be responsible or liable for, and makes no representation or warranty with respect to, the validity, adequacy or perfection of any lien upon or security interest in any Contract; provided that, the foregoing shall not reduce or eliminate the Custodian’s obligations under Section 4.03 hereof.

 

(d)           Any other provision of this Indenture to the contrary notwithstanding, the Custodian shall have no notice, and shall not be bound by any of the terms and conditions of any document executed or delivered in connection with, or intended to control any part of, the transactions anticipated by or referred to in this Indenture unless the Custodian is a signatory party to that document or such document is the Indenture, the Servicing Agreement or the Lockbox Intercreditor Agreement.  Notwithstanding the foregoing sentence, the Custodian shall be deemed to have notice of the terms and conditions (including, without limitation, definitions not otherwise set 

 

  

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forth in full in this Indenture) of documents executed or delivered in connection with, or intended to control any part of, the transactions anticipated by or referred to in this Indenture, to the extent such terms and provisions are referenced, or are incorporated by reference, into this Indenture only as long as the Custodian shall have been provided a copy of any such document or Indenture.  Each of the Trustee, the Back-up Servicer and the Custodian acknowledges receipt of a copy of the Transaction Documents to which it is a party on the Closing Date.

 

(e)           The duties and obligations of the Custodian shall only be such as are expressly set forth in this Indenture or as set forth in a written amendment to this Indenture executed by the parties hereto or their successors and assigns.  In the event that any provision of this Indenture implies or requires that action or forbearance be taken by a party, but is silent as to which party has the duty to act or refrain from acting, the parties agree that the Custodian shall not be the party required to take the action or refrain from acting.  In no event shall the Custodian have any responsibility to ascertain or take action except as expressly provided herein.

 

(f)           Nothing in this Indenture shall be deemed to impose on the Custodian any duty to qualify to do business in any jurisdiction, other than (i) any jurisdiction where any Contract and related Contract Files is or may be held by the Custodian from time to time hereunder, and (ii) any jurisdiction where its ownership of property or conduct of business requires such qualification and where failure to qualify could have a material adverse effect on the Custodian or its property or business or on the ability of the Custodian, the Issuer or the Servicer to perform its duties hereunder or under the other Transaction Documents.

 

(g)           The Custodian may consult with counsel selected by it with due care and familiar with such matters and the written advice or opinion of such counsel or any Opinion of Counsel (in form and substance satisfactory to the Custodian and addressed to the Custodian) shall be full and complete authorization and protection and the Custodian shall not be liable in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon..

 

(h)           The Custodian may, at any time during the administration of this Indenture, request and receive a written direction from the Control Party in connection with actions to be taken under this Indenture and shall not be liable for any action taken or omitted in good faith reliance thereon;

 

(i)           No provision of this Indenture shall require the Custodian to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights and powers, if, in its reasonable judgment, it shall believe that repayment of such funds is not reasonably assured to it without an indemnity against such risk or liability.

 

(j)           The Custodian shall have no duty to ascertain whether or not each amount or payment has been received by the Trustee or any third person.

 

Section 8.05                      Limitation on Liability. Neither the Custodian nor any of its directors, officers, agents or employees, shall be liable for any action taken or omitted to be taken by it or them hereunder or in connection herewith in good faith and believed (which belief may be based upon the opinion or advice of counsel selected by it in the exercise of reasonable care) by it or them to be within the purview of this Indenture, except for its

 

 

  

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or their own negligence, lack of good faith or willful misconduct.  The Custodian and any director, officer, employee or agent of the Custodian may rely in good faith on any document of any kind prima facie properly executed and submitted by any Person respecting any matters arising hereunder.  In no event shall the Custodian or its directors, officers, agents and employees be held liable for any special, indirect or consequential damages resulting from any action taken or omitted to be taken by it or them hereunder or in connection herewith even if advised of the possibility of such damages.  The provisions of this Section 8.05 shall survive the termination of this Indenture.

 

Section 8.06                      Custodian Obligations Regarding Genuineness of Documents. In the absence of bad faith or negligence on the part of the Custodian, the Custodian may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any request, instructions, certificate, opinion or other document furnished to the Custodian, reasonably believed by the Custodian to be genuine and to have been signed or presented by the proper party or parties and conforming to the requirements of this Indenture; provided that the provisions of this Section shall not in any manner limit or reduce the responsibilities of the Custodian under this Indenture.

 

Section 8.07                      Force Majeure. The Custodian shall not be responsible for delays or failures in performance resulting from acts of God, strikes, lockouts, riots, acts of war or terrorism, epidemics, nationalization, expropriation, currency restrictions, government regulations adopted after the date of this Indenture, fire, communication line failures, computer viruses, power failures, earthquakes or other disasters of a similar nature which are beyond its control.

 

ARTICLE IX

[RESERVED]

 

ARTICLE X

SUPPLEMENTAL INDENTURES

 

Section 10.01                                Supplemental Indentures without Consent of the Noteholders.

 

(a)           The Issuer, the Trustee and the Custodian, without the consent of the Holders of any Notes may, at any time and from time to time, enter into one or more amendments to this Indenture or indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following purposes, provided that (x) any such amendment or supplemental indenture, as evidenced by an opinion of counsel, will not have an adverse effect on the rights or interests of the Holders and (y) any such amendment does not modify this Indenture in a manner requiring the consent of all affected Noteholders as described in Section 10.02 hereof:

 

(i)           to better assure, convey and confirm unto the Trustee any property subject or required to be subjected to the lien of this Indenture, or to subject to the Lien of this Indenture additional property; or

 

 

  

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(ii)           to correct or supplement any provision in the Indenture which may be inconsistent with any other provisions therein or with the provisions of any other Transaction Document; or

 

(iii)           to evidence the succession of another Person to the Issuer, and the assumption by such successor of the covenants of the Issuer in this Indenture and in the Notes; or

 

(iv)           to add to the covenants of, and the conditions, limitations and restrictions to be observed by, the Issuer, for the benefit of the Secured Parties or to surrender any right or power conferred upon the Issuer in this Indenture; or

 

(v)           to convey, transfer, assign, mortgage or pledge any property to or with the Trustee; or

 

(vi)           to evidence the succession of the Trustee pursuant to the terms of this Indenture.

 

(b)           The Trustee is hereby authorized to join in the execution of any such supplemental indenture and to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be obligated to enter into any such supplemental indenture that affects the Trustee’s own rights, duties, indemnities, liabilities or immunities under this Indenture or otherwise.

 

(c)           Promptly after the execution by the Issuer, the Custodian and the Trustee of any supplemental indenture pursuant to this Section, the Issuer shall mail to each Noteholder a copy of such supplemental indenture.

 

Section 10.02                                Supplemental Indentures with Consent of the Noteholders. With the prior written consent of the Majority Holders and the Servicer, the Issuer, the Trustee and the Custodian may enter into an amendment or modification to this indenture or into indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the Holders of the Notes under this Indenture (other than as provided in Section 10.01 hereof); provided, however, that no such amendment or supplemental indenture shall become effective without the consent of each of the Holders of the Notes adversely affected thereby if such amendment or supplemental indenture shall:

 

(a)           change the Stated Maturity Date of any Note or the due date of any installment of principal of, or method of computing principal of, or any installment of interest on, any Note, or change the principal amount thereof or the applicable Note Rate thereof or change any place of payment where, or the coin or currency in which, any Note or the interest thereon is payable, or impair the right to institute suit for the enforcement of any such payment; or

 

(b)           reduce the percentage of the principal amount of Outstanding Notes, the consent of the Holders of which is required for any such amendment or supplemental indenture, or the consent of the Holders of which is required for any waiver of compliance with certain provisions of this Indenture or Events of Default or their consequences; or

 

 

  

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(c)           impair or adversely affect the priority of any payments payable by the Trustee from the Collection Account on each Payment Date under this Indenture; or

 

(d)           permit the creation of any Lien ranking prior to, on a parity with, or subordinate to the Lien of the Trustee with respect to any part of the Collateral or, except as expressly provided in this Indenture, terminate or release the Lien of the Trustee on any material portion of the Collateral at any time subject to the Indenture or deprive any Secured Party of the security afforded by the Lien of this Indenture; or

 

(e)           modify or alter any of the provisions of this Section 10.02 or any defined term used in Sections 10.01 or 10.02 of this Indenture (or any defined term used therein), except to increase the percentage of Holders required for any modification or waiver or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of each Noteholder affected thereby; or

 

(f)           modify Sections 6.01(a), 6.01(b), or Section 13.03 or any defined term used therein.

 

The Trustee is hereby authorized to join in the execution of any such amendment or supplemental indenture and to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be obligated to enter into any such amendment or supplemental indenture that affects in any adverse respect the Trustee’s own rights, duties, liabilities or immunities under this Indenture or otherwise.

 

Promptly after the execution by the Issuer, the Servicer, and the Trustee (and all Noteholders if required to approve such amendment or supplement) of any supplemental indenture pursuant to this Section, the Issuer shall mail to the the Back-up Servicer and each Noteholder a copy of such supplemental indenture.

 

Section 10.03                                Execution of Supplemental Indentures.  In executing any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by this Indenture and the Trustee receive, and (solely with respect to the Trustee, subject to Section 7.01) shall be not be liable for and shall be fully authorized to conclusively rely in good faith upon, an Opinion of Counsel reasonably acceptable to the Trustee stating that the execution of such supplemental indenture is authorized or permitted by this Indenture and all conditions precedent to such execution have been satisfied.

 

Section 10.04                                Effect of Supplemental Indentures.  Upon the execution of any supplemental indenture under this Article, this Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of this Indenture for all purposes; and every Noteholder theretofore or thereafter authenticated and delivered hereunder shall be bound thereby.

 

Section 10.05                                Reference in Notes to Supplemental Indentures.  Notes authenticated and delivered after the execution of any supplemental indenture pursuant to this Article may, and if required by the 

 

 

  

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Issuer shall, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture.  If the Issuer shall so determine, new Notes so modified as to conform, in the opinion of the Issuer, to any such supplemental indenture may be prepared and executed by the Issuer and authenticated and delivered by the Trustee in exchange for Outstanding Notes.

 

Section 10.06                                Back-Up Servicer Consent. Notwithstanding any other provision to the contrary, for so long as there is a Back-Up Servicer, the Issuer, the Indenture Trustee and the Custodian shall not, without the consent of the Back-Up Servicer (such consent not to be unreasonably withheld), make, execute, acknowledge or deliver amendments to this Indenture or enter into any supplemental indentures hereto or thereto or otherwise waive or amend any provision of this Indenture if such action shall have, or it is expected may have, a material adverse effect on the Back-Up Servicer or any successor Servicer.

 

Section 10.07                                Amendments to the Lockbox Intercreditor Agreement.  The Trustee shall not enter into any material amendment, modification, supplement, consent or waiver of the Lockbox Intercreditor Agreement without the consent of all Noteholders.

 

ARTICLE XI

REDEMPTIONS AND PREPAYMENTS OF NOTES

 

Section 11.01                                Redemptions of Notes.

 

(a)           Optional Redemption.   The Issuer (as directed by the Guarantor) shall have the right, subject to the terms hereof, to redeem, in whole but not in part, all outstanding Notes on any Business Day, upon not less than 15 days prior written notice to the Trustee and the Holders of the Notes (an “Optional Redemption”).

 

(b)           Mandatory Redemption.   On a Business Day within five (5) Business Days after the occurrence of a Mandatory Redemption Event, the Issuer shall redeem, in whole but not in part, all outstanding Notes (a “Mandatory Redemption”).

 

(c)           Installments of interest and principal due on or prior to the Redemption Date shall continue to be payable to the Holders of the Notes according to their terms and the provisions of Section 2.09 hereof.

 

Section 11.02                                Redemption Procedures.  In connection with any redemption pursuant to Section 11.01 hereof:

 

	
  

	
(a) in the case of an Optional Redemption, the Issuer (as directed by the Guarantor) shall, at least 15 days prior to the Redemption Date, notify the Trustee and the Holders of the Notes in writing of the Optional Redemption and, in the case of a Mandatory Redemption, the Issuer shall, as soon as reasonably practical after the Mandatory Redemption Event, notify the Trustee and the Holders of the Notes in writing of the Mandatory Redemption;

 

	
  

	
(b) in the case of an Optional Redemption, the Issuer (as directed by the Guarantor) or, in the case of a Mandatory Redemption, the Issuer shall deposit in the Collection Account on or prior to the Redemption Date at least the amounts described in Section 11.02(c);

 

 

  

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(c) in the case of an Optional Redemption, the Issuer (as directed by the Guarantor) shall deliver an Issuer Order directing the Trustee to and the Trustee shall, and, in the case of a Mandatory Redemption, the Trustee shall (without any Issuer Order), make payment on the Redemption Date of the sum of (A) the Redemption Price plus, (B) fees, expenses and other reimbursable amounts owing to the Noteholders, the Originator, the Trustee, the Securities Intermediary, the Custodian, the Back-up Servicer and the Servicer under the Transaction Documents; and

 

	
  

	
(d) upon delivery to the Trustee, the Noteholders, the Custodian, the Paying Agent, and the Back-up Servicer of such documents and an Officer’s Certificate from the Servicer certifying that (1) the amounts required to be deposited into the Collection Account shall have been deposited and (2) the requirements of this Article XI have been satisfied, the Trustee shall release its interest in the entire Collateral as provided in Section 11.05.

 

Section 11.03                                Notice of Redemption to Noteholders.  In the case of an Optional Redemption or a Mandatory Redemption, upon receipt of the notice set forth in Section 11.02(a), the Trustee shall provide notice thereof with a copy of such notice of redemption pursuant to Section 11.01 by first class mail or courier delivery, dispatched no later than five (5) Business Days following the date on which such notice was provided, to each Noteholder (at its address in the Note Register).

 

All notices of redemption shall state:

 

(a)           the Redemption Date;

 

(b)           the amount that will be deposited in the Collection Account, which shall be at least the sum of (A) the Redemption Price plus (B) all other amounts that are payable to the Noteholders, the Trustee, the Originator, the Custodian, the Back-up Servicer, and the Servicer under the Transaction Documents on the Redemption Date;

 

(c)           that on the Redemption Date, the Redemption Price will become due and payable with respect to the Notes, and that interest on all Outstanding Notes shall cease to accrue on such date;

 

(d)           all conditions precedent in connection with such redemption have been satisfied;

 

(e)           the address at which such redeemed Notes shall be delivered; and

 

(f)           the record date for such Redemption Date, which shall be one Business Day before the Redemption Date.

 

Notice of redemption of Notes shall be given by the Trustee in the name and at the expense of the Issuer.

 

Section 11.04                                Amounts Payable on Redemption Date.  Notice of redemption having been given to Noteholders as provided in Section 11.03, such Notes shall, on the Redemption Date, become due and payable at the Redemption Price, and on such Redemption Date (unless the Issuer shall default in the payment of such Redemption Price), all of the Outstanding Notes shall cease to bear interest.  On the Redemption Date:  (A) each Noteholder shall be paid such Noteholder’s applicable share of the Redemption Price by the Paying Agent on behalf of the Issuer upon presentation and surrender of their respective Notes at the office or agency specified in 

 

 

  

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Section 7.13; and (B) each other Person to whom monies are owed under Section 11.03(b) shall be paid all amounts owing to such Person from the amounts deposited in the Collection Account in accordance with Section 11.02(b); provided, that no redemption may be effectuated unless, concurrently with the redemption occurring under this Article XI, all amounts due under this clause (B) shall be paid in full from funds on deposit in the Collection Account.  If the Holder of any Note called for redemption shall not be so paid, then the principal shall, until paid, bear interest from the Redemption Date at the applicable Note Rate and the redemption of such Note(s) shall be canceled, the Paying Agent shall return the related portion of the Redemption Price to the Issuer or other Person providing the funds for payment, and such Notes shall be payable on the Stated Maturity Date or earlier to the extent otherwise provided herein.  All amounts payable on the Redemption Date shall be paid in accordance with this Section 11.04, without regard to the priority of distribution provisions contained in Section 13.03.

 

Section 11.05                                Release of Contract Assets in Connection with Redemptions.

 

(a)           In connection with the redemptions permitted under this Article XI, the Trustee shall release its Lien on the Contracts, upon (I) the deposit of the amounts set forth in Section 11.02(c) into the Collection Account and (II) the Issuer’s delivery to the Trustee and the Custodian of an Officer’s Certificate, (1) identifying the Contracts and the related Equipment to be released, (2) requesting the release thereof, (3) setting forth the amount deposited in the Collection Account with respect thereto, (4) certifying that the amount deposited in the Collection Account is at least equal to the Redemption Price and all other amounts required to be paid in connection with a redemption under this Article XI, and (5) certifying that all other conditions precedent set forth in the Transaction Documents relating to such release have been satisfied.

 

(b)           Upon release of the Trustee’s Lien on the Contracts in accordance with Section 11.05(a), the Custodian shall deliver to the Issuer the Contracts and all related Contract Assets described in the Issuer’s Officer’s Certificate.

 

ARTICLE XII

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

Section 12.01                                Representations and Warranties.

 

The Issuer hereby makes the following representations and warranties for the benefit of the Trustee, the Custodian and the Secured Parties on which the Trustee relies in accepting the Collateral in trust and in authenticating the Notes.  Except as specifically provided otherwise, such representations and warranties are made as of the Closing Date and each Acquisition Date and shall survive the transfer, grant and assignment of the Collateral to the Trustee.

 

 

(a)           Organization and Good Standing.  The Issuer is a Delaware limited liability company duly organized, validly existing and is not organized under the laws of any other jurisdiction.  The Issuer is in good standing under the law of the State of Delaware and each other State where the nature of its activities requires it to “qualify to do business”, except to the extent that the failure to so qualify would not individually or in the aggregate materially adversely affect the ability of the Issuer to perform its obligations under the Transaction Documents.

 

 

  

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(b)           Authorization.  The Issuer has the power, authority and legal right to execute, deliver and perform under the Transaction Documents and the execution, delivery and performance of the Transaction Documents have been duly authorized by the Issuer by all necessary limited liability company action.

 

(c)           Binding Obligation.  Each of the Transaction Documents to which the Issuer is a party, assuming due authorization, execution and delivery by the parties thereto other than the Issuer, constitutes a legal, valid and binding obligation of the Issuer, enforceable against the Issuer in accordance with its terms except that (i) such enforcement may be subject to bankruptcy, insolvency, reorganization, rehabilitation, moratorium or other similar laws (whether statutory, regulatory or decisional) now or hereafter in effect relating to creditors’ rights generally and (ii) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to certain equitable defenses and to the discretion of the court before which any proceeding therefor may be brought, whether a proceeding at law or in equity.

 

(d)           No Violation.  The consummation of the transactions contemplated by the fulfillment of the terms of the Transaction Documents will not:  (i) conflict with, result in any breach of any of the material terms and provisions of, or constitute (with or without notice, lapse of time or both) a default under the organizational documents of the Issuer, any indenture, agreement, mortgage, deed of trust or other instrument to which the Issuer is a party or by which it is bound; (ii) result in the creation or imposition of any Lien upon any of its properties pursuant to the terms of such indenture, agreement, mortgage, deed of trust or other such instrument, other than any Lien created or imposed pursuant to the terms of the Transaction Documents, or (iii) violate any law or, to the best of the Issuer’s knowledge, any material order, rule or regulation applicable to the Issuer of any court or of any federal or state regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Issuer or any of its properties.

 

(e)           No Proceedings.  There are no proceedings or investigations to which the Issuer, or any of the Issuer’s Affiliates, is a party pending, or, to the knowledge of the Issuer, threatened, before any court, regulatory body, administrative agency or other tribunal or governmental instrumentality (A) asserting the invalidity of the Transaction Documents or any Receivable or any Contract, (B) seeking to prevent the issuance of any of the Notes or the consummation of any of the transactions contemplated by the Transaction Documents, or (C) seeking any determination or ruling that would adversely affect the performance by the Issuer of its obligations under, or the validity or enforceability of, the Transaction Documents or any Receivable or any Contract.

 

(f)           Approvals.  All approvals, authorizations, consents, orders or other actions of any Person, or of any court, governmental agency or body or official, required in connection with the execution and delivery of the Transaction Documents and with the valid and proper authorization, issuance and sale of the Notes pursuant to this Indenture (except that no such representation is made with respect to any necessary approvals of State securities officials under the Blue Sky Laws), have been or will be taken or obtained on or prior to the Closing Date.

 

 

  

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(g)           Principal Office.  The Issuer’s principal place of business and chief executive office is located at the Issuer Address.

 

(h)           Transfer and Assignment.  Upon the delivery by or on behalf of the Issuer to the Trustee of the Contracts and the filing of the financing statements described in Sections 4.01(a)(v) and 4.02(b), the Trustee, for the benefit of the Secured Parties, shall have a first priority perfected security interest in the Issuer’s interest in the Contracts and Receivables and the proceeds thereof and that portion of the Collateral in which a security interest may be perfected by possession or the filing of a financing statement, in each case, under the UCC, limited to the extent set forth in Section 9-315 of the UCC as in effect in the applicable jurisdiction; provided that none of the Servicer, the Originator and the Issuer shall be required to file or record assignments of any UCC-1 financing statements or other lien recordings made against an Obligor.  All filings (including UCC filings) as are necessary in any jurisdiction to perfect the security interest of the Trustee in the Collateral, including the transfer of the Contracts and any other payments to become due thereunder, have been made.

 

(i)           Owners of the Issuer.  The Originator owns one hundred percent (100%) of the Equity Interest in the Issuer, and such Equity Interest is duly authorized, validly issued, fully paid for and non-assessable by the Issuer.

 

(j)           Bulk Transfer Laws.  The transfer, assignment and conveyance of the Contract Assets by the Issuer pursuant to this Indenture are not subject to the bulk transfer or any similar statutory provisions in effect in any applicable jurisdiction.

 

(k)           The Contract Assets.  The rights of the Issuer with respect to the representations and warranties that are made by the Originator in the Purchase and Contribution Agreement and each Assignment Agreement as of each Acquisition Date have been assigned by the Issuer to the Trustee pursuant to the terms hereof, and the Issuer is not aware of any inaccuracy in any such representations and warranties except for such inaccuracies as have been provided in writing to the Trustee.

 

(l)           Solvency.  The Issuer, both prior to and after giving effect to the transactions contemplated hereby, (i) is not “insolvent” (as such term is defined in §101(32)(A) of the Bankruptcy Code); (ii) is able to pay its debts as they become due; and (iii) does not have unreasonably small capital for the activities that it conducts or for any transaction(s) in which it is about to engage.

 

(m)           Investment Company.  The Issuer is not an “investment company” or a company controlled by an “investment company” registered or required to be registered under the Investment Company Act of 1940, as amended, or otherwise subject to any other federal or state statute or regulation limiting its ability to incur indebtedness.  The Issuer, at all times, within the meaning of 17 C.F.R. 270.3a-7, (1) will have issued only the Notes and the membership interests issued to its managing member at its formation, and any other securities issued by the Issuer are “fixed income securities or other securities ... that depend primarily on the cash flow from eligible assets” and for 

 

 

  

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which a trustee is appointed in compliance with 17 C.F.R. 270.3a-7(a)(4), (2) will sell its securities only to its affiliates, “qualified institutional buyers”, or institutional accredited investors or will sell securities “rated, at the time of initial sale, in one of the four highest categories assigned long-term debt” by one of DBRS, Moody’s, S & P or Fitch, (3) will either acquire or dispose of the Contracts only in accordance with and as permitted by the Purchase and Contribution Agreement, the Assignment Agreements, the Servicing Agreement, its limited liability company operating agreement and the Indenture or (y) any other “eligible assets” only (a) in accordance with the agreements under which its securities are issued, (b) if a rating downgrade of any of its outstanding “fixed-income securities” does not result and (c) if such acquisition or disposition is not “for the primary purpose of recognizing gains or decreasing losses resulting from market value changes”.  The Issuer will not engage in any business other than that expressly permitted by the Transaction Documents and its limited liability company operating agreement.

 

(n)           Limited Activities.  Since its formation, the Issuer has conducted no activities other than the execution, delivery and performance of the Transaction Documents contemplated hereby, and such other activities as are incidental to the foregoing and otherwise permitted under Section 12.02(i).  The Issuer has incurred no indebtedness nor engaged in any activities or transactions nor acquired any assets except as expressly contemplated hereunder and under the other Transaction Documents.

 

(o)           Taxes.  The Issuer has filed or caused to be filed all Federal, state and local tax returns which are required to be filed by it, and has paid or caused to be paid all taxes shown to be due and payable on such returns or on any assessments received by it, other than any taxes or assessments, the validity of which are being contested in good faith by appropriate proceedings and with respect to which the Issuer or the Servicer on its behalf has set aside adequate reserves on its books in accordance with GAAP and which proceedings have not given rise to any Lien.

 

(p)           Lockbox Accounts.  The Issuer has no lockbox accounts or other bank accounts for the collection of the Contract Assets other than the Lockbox Account.

 

(q)           Accuracy of Information.  All certificates, reports, financial statements and similar writings furnished by or on behalf of the Issuer to the Trustee or any Noteholder, at any time pursuant to any requirement of, or in response to any written request of any such party under, this Indenture or any other Transaction Document, have been, and all such certificates, reports, financial statements and similar writings hereafter furnished by the Issuer to such parties will be, true and accurate in every respect material to the transactions contemplated hereby on the date as of which any such certificate, report, financial statement or similar writing was or will be delivered, and shall not omit to state any material facts or any facts necessary to make the statements contained therein not materially misleading.

 

(r)           Perfection Requirements as to Collateral.

 

(1)           This Indenture creates a valid and continuing security interest (as defined in the UCC) in the Collateral in favor of the Trustee, which security interest is prior to all other Liens and is enforceable as such as against creditors of and purchasers from the Issuer.  The Issuer has good and marketable title to the Collateral (including the Collection Account, the Reserve Account, the Prefunding Account, the Capitalized Interest Account and all amounts from time to time on deposit in the Lockbox Account with respect to the Contracts), free and clear of any Liens (except as otherwise provided in the Lockbox Intercreditor Agreement and the rights of Obligors to Security Deposits retained by the Issuer).

 

 

  

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(2)           All of the Contracts included in the Collateral constitute “tangible chattel paper” within the meaning of the UCC.  The Issuer has transferred to the Trustee the original copies of such tangible chattel paper, and, other than the stamp, if any, in favor of a prior lender that signed a Release Agreement related to a Contract, none of such tangible chattel paper has any marks or notations indicating that it has been pledged, assigned or otherwise conveyed to any Person other than in favor of the Issuer or the Trustee.  The Equipment related to each Contract constitutes either “equipment” for purposes of section 9-102(33) of the UCC or “inventory” for purposes of section 9-102(48) of the UCC; provided however, that not more than 5.0% of the Contracts may relate to Equipment that does not constitute “equipment” for purposes of section 9-102(33) of the UCC or “inventory” for purposes of section 9-102(48) of the UCC.

 

(3)           The Issuer has caused (and will instruct the Servicer to cause), the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under applicable law in order to perfect the security interest granted in the Collateral to the Trustee hereunder.  Each such financing statement will contain a statement that a “purchase of, or security interest in, any collateral described in this financing statement will violate the rights of the Trustee.”

 

(4)           Each of the Collection Account, the Reserve Account, the Prefunding Account and the Capitalized Interest Account constitutes a “securities account” within the meaning of the applicable UCC.  As provided in Section 13.02(e), the securities intermediary for the Collection Account, the Reserve Account, the Prefunding Account and the Capitalized Interest Account has agreed to treat all assets credited thereto as “financial assets” within the meaning of the UCC and the Issuer has taken all steps necessary to cause the securities intermediary to identify in its records the Trustee as the person having a security entitlement against the securities intermediary in the Collection Account, the Reserve Account, the Prefunding Account and the Capitalized Interest Account.  None of the Collection Account, the Reserve Account, the Prefunding Account or the Capitalized Interest Account is in the name of any person other than the Trustee for the benefit of the Secured Parties.  The Issuer has not permitted the securities intermediary of the Collection Account, the Reserve Account, the Prefunding Account or the Capitalized Interest Account to comply with entitlement orders of any person other than the Trustee.  The Issuer has received all consents and approvals required in connection with the Grant to the Trustee of its interest and rights in the Collection Account, the Reserve Account, the Prefunding Account and the Capitalized Interest Account.

 

 

  

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(5)           The Lockbox Account constitutes a “deposit account” within the meaning of the applicable UCC.  The Issuer has delivered, or has caused the Servicer to deliver, to the Trustee, a fully executed Lockbox Intercreditor Agreement relating to the Lockbox Account, pursuant to which the Lockbox Bank has agreed to comply with all instructions by the Trustee, as securities intermediary thereunder, directing the disposition of funds in the Lockbox Account without further consent by the Issuer or the Servicer.  The Issuer has not permitted any Lockbox Bank to comply with any instructions of any other Person regarding withdrawal of funds other than the Trustee and, to the extent permitted under the Transaction Documents, the Servicer.  The Lockbox Account is not in the name of any person other than the Issuer, the Trustee or the Lockbox Bank, as securities intermediary under the Lockbox Intercreditor Agreement.

 

(6)           Other than the security interest granted to the Trustee pursuant to this Indenture, the Issuer has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Collateral.  The Issuer has not authorized the filing of and is not aware of any financing statements against the Issuer or the Originator that include a description of collateral that includes the Collateral other than any financing statement that have  been terminated or released.  The Issuer is not aware of any judgment, ERISA or tax lien filings against the Issuer or the Originator.

 

(7)           Notwithstanding any other provision of this Indenture or any other Transaction Document, the representations contained in this Section 12.01(r) shall be continuing and remain in full force and effect, without waiver, until the date on which the Notes have been paid in full.

 

(8)           In the event that the sale of a Contract by the Originator to the Issuer under the Purchase and Contribution Agreement and the pledge of such Contract by the Issuer to the Trustee, for the benefit of the Secured Parties, hereunder are insufficient, without a notation on a related Motorized Titled Equipment’s certificate of title, or without fulfilling any additional administrative requirements under the laws of the state in which such Motorized Titled Equipment is located, to assign the ownership of such Motorized Titled Equipment to the Issuer or to perfect a security interest in such Motorized Titled Equipment (and the proceeds thereof) in favor of the Trustee, for the benefit of the Secured Parties, the parties hereto agree that (i) the designation of the Servicer (or its nominee) or the Originator (or its nominee) under a Lienholder Nominee Agreement, to be executed within 180 days following the first day of inclusion of such Contract secured by such Motorized Titled Equipment in the calculation of the Discounted Pool Balance, as the lienholder on the certificate of title with respect to such Motorized Titled Equipment, is in its capacity as agent of the Issuer and the Trustee, for the benefit of the Secured Parties, as their interests may appear, and (ii) such designation shall be sufficient until such notations are made or additional administrative requirements are fulfilled.

 

(9)           Any Contract for which the Servicer shall not have within 180 days of the first day of inclusion of such Contract secured by such Motorized Titled Equipment in the calculation of the Discounted Pool Balance, (i) received a Lien Certificate showing the Issuer or the Servicer (or its nominee) or the Originator (or its nominee) under a Lienholder Nominee Agreement as secured party with respect to the related Motorized Titled Equipment from the applicable Registrar of Titles and (ii) delivered such Lien Certificate or such evidence to the Custodian, shall no longer be included in the calculation of the Discounted Pool Balance.  In the case of any Contract excluded from the calculation of the Discounted Pool Balance pursuant to the previous sentence, the Contract so excluded from the calculation of the Discounted Pool Balance may at a later time be included in the calculation of the Discounted Pool Balance, provided, that the Custodian shall have received a Lien Certificate showing the Issuer or the Servicer (or its nominee) or the Originator (or its nominee) under a Lienholder Nominee Agreement as secured party with respect to the related Motorized Titled Equipment from the applicable Registrar of Titles.

 

 

  

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(10)           At all times, all Collateral will consist of property in which a security interest may be created and attach under the UCC.

 

Section 12.02                                Covenants.  The Issuer hereby makes the following covenants for the benefit of the Secured Parties and on which the Trustee relies in accepting the Collateral in trust and in authenticating the Notes.

 

(a)           No Liens.  Except for the conveyances and grant of security interests hereunder, the Issuer will not sell, pledge, assign, convey, dispose of or transfer to any other Person, or grant, create, incur, assume or suffer to exist any Lien on any Collateral now existing or hereafter created, or any interest therein prior to the termination of this Indenture pursuant to Section 5.01; the Issuer will notify the Trustee in writing of the existence of any Lien on any of the Collateral immediately upon discovery thereof; the Issuer shall promptly discharge (or cause to be discharged) any Lien (other than Permitted Liens) on the Collateral; and the Issuer shall defend the right, title and interest of the Trustee in, to and under the Collateral now existing or hereafter created, against all claims of third parties claiming through or under the Issuer; provided that nothing in this Section 12.02(a) shall prevent or be deemed to prohibit the Issuer from suffering to exist upon any of the Equipment any Liens for municipal or other local taxes and other governmental charges due from the Issuer if such taxes or governmental charges shall not at the time be due and payable or, if the Issuer shall currently be contesting the validity thereof in good faith by appropriate proceedings, nonpayment of such taxes or charges shall not pose any risk of forfeiture of such Equipment, and the aggregate amount at dispute shall not be greater than $50,000.00, unless the Control Party otherwise approves.

 

(b)           Obligations with Respect to the Contract Assets.  The Issuer will do nothing to impair the rights of the Trustee (for the benefit of the Secured Parties) in the Collateral.  In addition, to the extent the Issuer actually receives any Collections, it shall deposit or cause to be deposited in the Collection Account within two (2) Business Days of receipt thereof the amount of such Collections in accordance with Section 13.03 and will hold such monies in trust for the Trustee until so deposited.  The Issuer agrees to take all such lawful action as the Trustee or the Control Party may request to compel or secure the performance and observance by the Originator and the Servicer, as applicable, of each of their obligations to the Issuer under or in connection with the Purchase and Contribution Agreement, the Assignment Agreements and the Servicing Agreement in accordance with the terms thereof, and to exercise any and all rights, remedies, powers and privileges lawfully available to the Issuer under or in connection with such Transaction Documents to the extent and in the manner directed by the Trustee or the Control Party, as applicable, including the transmission of notices of default thereunder and the institution of legal or administrative actions or proceedings to compel or secure performance by the Originator or the Servicer of each of their obligations thereunder.

 

 

  

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(c)           Notice of Default, Etc.  The Issuer will deliver to the Trustee and each Holder of Outstanding Notes immediately upon becoming aware of the existence of any condition or event that constitutes a Default, an Event of Default or an Event of Servicing Termination, a written notice describing its nature and period of existence and what action is being taken or proposed to be taken with respect thereto.

 

(d)           Compliance with Law.  The Issuer will comply, in all material respects, with all acts, rules, regulations, orders, decrees and directions of any Governmental Authority applicable to it or the Collateral or any part thereof or necessary for it to perform its responsibilities hereunder and under the other Transaction Documents; provided that the Issuer may contest any act, regulation, order, decree or direction in good faith and in any reasonable manner which shall not adversely affect the rights of the Trustee (for the benefit of the Secured Parties) in the Collateral.

 

(e)           Preservation of Security Interest.  The Issuer shall execute and file such documents requested of it which may be required by law to fully preserve and protect the first priority security interest of the Trustee (for the benefit of the Secured Parties) in the Collateral.

 

(f)           Maintenance of Office, Etc.  The Issuer will not, without providing thirty (30) days’ prior written notice to the Trustee and without filing such amendments to any previously filed financing statements as the Trustee may require or as may be required in order to maintain the Trustee’s perfected security interest in the Collateral (for the benefit of the Secured Parties), (a) change its jurisdiction of organization or the location of its principal place of business, or (b) change its name, identity or corporate structure in any manner that would make any financing statement or continuation statement filed by the Issuer in accordance with this Indenture seriously misleading within the meaning of Section 9-506 of any applicable enactment of the UCC.

 

(g)           Further Assurances.  The Issuer will make, execute or endorse, acknowledge, and file or deliver to the Trustee and the Control Party from time to time such schedules, confirmatory assignments, conveyances, transfer endorsements, powers of attorney, certificates, reports, UCC financing statements, and other assurances or instruments and take such further steps relating to the Collateral, as the Trustee may reasonably request and reasonably require in connection with the transactions the subject of the Transaction Documents, except that UCC financing statements are not required to have been filed against the related Obligor for any Equipment related to any Contract that had an original equipment cost at origination of less than (A) if such Contract is a secured loan or finance lease that provides for a $1 purchase option, $25,000, or (B) if such Contract provides for a “fair market value” purchase option, $50,000.

 

(h)           Notice of Liens.  The Issuer shall notify the Trustee in writing immediately after becoming aware of any Lien on any portion of the Collateral, except for any Liens on Equipment for municipal or other local taxes due from the Issuer if such taxes shall not at the time be due or payable without penalty or, provided the same are Permitted Liens, if the Issuer shall currently be contesting the validity thereof in good faith by appropriate proceedings, such nonpayment shall not pose any risk of forfeiture of such Collateral and the Issuer shall have set aside on its books adequate reserves with respect thereto.

 

 

  

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(i)           Separateness Covenants.  The Issuer (i) shall not engage in any other business than (A) the acquisition, ownership, selling and pledging of the property acquired by it pursuant to the Purchase and Contribution Agreement, any Assignment Agreement, the Servicing Agreement and this Indenture and causing the issuance of, receiving and selling the Notes issued pursuant to this Indenture, (B) the exercise of any powers permitted to limited liability companies under Delaware law which are incidental to the foregoing or necessary to accomplish the foregoing and are not prohibited by the terms of its certificate of formation, its limited liability company agreement or the other Transaction Documents; (ii) will hold such appropriate meetings of its board of managers or distribute appropriate unanimous consents in lieu of a meeting as are necessary to authorize all of the Issuer’s actions that are required by law to be authorized by the board of managers, keep minutes of its meetings and otherwise observe all other customary corporate formalities; (iii) will (A) maintain its books and records separate from the books and records of any other entity, (B) maintain separate bank accounts and no funds of the Issuer shall be commingled with funds of any other entity except as otherwise permitted in the Lockbox Intercreditor Agreement, (C) keep in full effect its existence, rights, privileges, licenses and franchises as a limited liability company under the laws of its applicable state of organization, and will obtain and preserve its “qualification to do business” as a foreign limited liability company in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of this Indenture, (D) cause its managers and officers to act independently and in its interests, (E) cause its board of managers to duly authorize all of its corporate actions and (F) observe all company procedures required by its organizational documents and applicable laws; and (iv) will not (A) dissolve or liquidate in whole or in part, (B) own any subsidiary or lend or advance any moneys to, or make an investment in, any Person, (C) incur any debt in connection with or make any capital expenditures, (D)(1) commence any case, proceeding or other action under any existing or future bankruptcy, insolvency or similar law seeking to have an order for relief entered with respect to it, or seeking reorganization, arrangement, adjustment, wind-up, liquidation, dissolution, composition or other relief with respect to it or its debts, (2) seek appointment of a receiver, trustee, custodian or other similar official for it or any part of its assets, (3) make a general assignment for the benefit of creditors, or (4) take any action in furtherance of, or consenting or acquiescing in, any of the foregoing, (E) make any loan or advance or credit to, or guarantee (directly or indirectly or by an instrument having the effect of assuring another’s payment or performance on any obligation or its capability of doing so, or otherwise), endorse or otherwise become contingently liable (directly or indirectly) for the obligations of, or own or purchase any stock, obligations or securities of or any other interest in, or make any capital contribution to, any other Person other than as specifically provided for in the Transaction Documents, (F) merge or consolidate with any other Person, (G) engage in any other action that detracts from whether the separate legal identity of the Issuer will be respected, including (1) holding itself out as or permitting itself to be held out as being liable for the debts of any other Person or (2) acting other than in its name and through its 

 

 

  

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duly authorized officers or agents, (H) create, incur, assume, or in any manner become liable in respect of any indebtedness other than the Notes, expenses associated with the Closing Date, trade payables and expense accruals incurred in the ordinary course of business in an amount less than $12,300 at any one time outstanding and which are incidental to its permitted activities, and as provided in or under the Transaction Documents, (I) sponsor or contribute, or contract to or incur any other obligation to contribute to any Pension Plans, or (J) enter into or become party to any agreements or instruments other than the Transaction Documents or any documents or instruments executed pursuant thereto and in connection therewith.  So long as any Notes remain Outstanding or any other amounts are owed under the Transaction Documents, the Issuer shall not amend its organizational documents without the prior written consent of the Control Party and prior written notice to the Trustee.  The Issuer shall not make any investment in any Person through the direct or indirect holding of securities or otherwise other than in Eligible Investments.  The Issuer shall not declare or pay any dividends, except out of funds released to it under Section 13.03.  The Issuer will not have any of its indebtedness guaranteed by the Originator or any Affiliate of the Originator.  Furthermore, the Issuer will not hold itself out, or permit itself to be held out, as having agreed to pay or as being liable for the debts of the Originator and the Issuer will not engage in any transactions with the Originator, except as expressly contemplated by the Transaction Documents and on an arm’s-length basis.  The Issuer will not hold the Originator out to third parties as other than an entity with assets and liabilities distinct from the Issuer.  The Issuer will cause any financial statements consolidated with those of the Originator to state that the Issuer is a separate corporate entity with its own separate creditors who, in any liquidation of the Issuer, will be entitled to be satisfied out of the Issuer’s assets prior to any value in the Issuer becoming available to the Issuer’s equity holders.  The Issuer will not act in any other matter that could foreseeably mislead others with respect to the Issuer’s separate identity.  Without the prior written consent of the Control Party, the Issuer will not, nor will it permit or allow others to, amend, modify, terminate or waive any provision of any Contract Assets, except to the extent otherwise expressly permissible under the Transaction Documents.  Notwithstanding the foregoing, the Servicer may, without the prior written consent of the Control Party, waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, or other fees which may be collected in the ordinary course of servicing the Contracts.  The Issuer shall take such actions as the Trustee (at the direction of the Control Party) shall request to enforce the Issuer’s rights under the Contracts, and, at any time during which a Default shall have occurred and be continuing, shall take such actions as are necessary to enable the Trustee (at the direction of the Control Party) to exercise such rights in the Trustee’s own name.  On or before June 15 of each year, so long as any of the Notes are Outstanding, the Issuer shall furnish to the Trustee and each Noteholder, an Officer’s Certificate confirming that the Issuer is in compliance with its obligations under this Section 12.02(i).

 

(j)           Directors.  The Issuer agrees that at all times, at least one (1) of the directors of the Issuer will be professional directors that are not, and have not been, a director, shareholder, officer or employee of any direct or ultimate parent or Affiliate of the Originator; provided that an independent director or independent officer may serve in similar capacities for other “special purpose entities” formed by the Originator and its Affiliates.

 

(k)           Treatment for Tax Purposes.  The Issuer shall treat the Notes as indebtedness of the Issuer and the Collateral as assets owned by the Issuer for purposes of all federal, state and local income taxes, unless and until otherwise required by an applicable taxing authority.

 

(l)           Information Regarding the Issuer.  The Issuer shall, on the written request of the Trustee or the Control Party, on reasonable notice, furnish to the Trustee and the Noteholders the books and records of the Issuer maintained pursuant to its limited liability company agreement and any and all other information maintained or held by the Issuer regarding the Issuer or the Collateral.

 

 

  

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(m)           Preservation of the Contract Assets.  The Issuer shall not assign, sell, pledge, or exchange, or in any way encumber or permit the encumbrance of, or otherwise dispose of, the Contract Assets except as expressly permitted under the Transaction Documents to which it is a party.

 

(n)           Enforcement of Transaction Documents.  Upon request, the Issuer will cooperate with the taking of all actions necessary, and the diligent pursuit of all remedies available to it, in all cases to the extent commercially reasonable, to allow the Control Party and the Trustee in the name of the Issuer to enforce all obligations of the Originator and the Servicer owing to the Issuer under the Transaction Documents to which such Persons are a party and to secure its rights thereunder.

 

(o)           Issuer May Not Merge, etc.  The Issuer shall not merge with or into any other Person or convey or transfer its properties and assets substantially as an entirety to any Person.

 

(p)           [Reserved.]

 

(q)           Use of Proceeds.  The proceeds from the sale of the Notes may be used by the Issuer solely to pay to or on behalf of the applicable assignor, the Purchase Price owed to it in accordance with the Assignment Agreement for the purchase of Contract Assets, and to pay expenses owed to the Noteholders, the Trustee, the Custodian, the Servicer and the Back-up Servicer related thereto or otherwise associated with the issuance of the Notes.  None of the transactions contemplated in this Indenture (including the use of the proceeds from the sale of the Notes) will result in a violation of Section 7 of the Securities and Exchange Act of 1934, as amended, or any regulations issued pursuant thereto, including Regulations T, U and X of the Board of Governors of the Federal Reserve System.  The Issuer does not own or intend to, and none of the proceeds from the Notes will be used to, carry or purchase any margin securities originally issued by it or any “margin stock” within the meaning of said Regulation U.

 

(r)           Indemnification.  The Issuer shall indemnify and hold harmless the Noteholders from and against any loss, liability, expense, damage or injury sustained or suffered by them by reason of any acts, omissions or alleged acts or omissions (i) by the Issuer in the performance of its obligations under the Transaction Documents (including any violation of any applicable laws by the Issuer as a result of the transactions contemplated by this Indenture) to which it is a party, or (ii) arising out of the activities of any of them with respect to the Collateral, including enforcement of rights and remedies against the Issuer under the Transaction Documents to which it is a party and any judgment, award, settlement, reasonable attorneys’ fees and other expenses reasonably incurred in connection with the defense of any actual or threatened action, proceeding or claim; provided that the Issuer shall not indemnify the Noteholders if such loss, liability, expense, damage or injury is due to such Person’s gross negligence, willful misconduct, willful misfeasance or bad faith in the performance of its rights or duties hereunder. Any indemnification pursuant to this Section shall only be payable, subject to the priority of payments in Section 13.03, from the assets of the Issuer released from the Collateral except as otherwise expressly provided in the Transaction Documents.  The provisions of this indemnity shall survive the termination of this Indenture.

 

 

  

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(s)           Taxes.  The Issuer shall pay and discharge all taxes and governmental charges upon it or against any of its properties or assets or its income prior to the date after which penalties attach for failure to pay, except (a) to the extent that the Issuer shall be contesting in good faith in appropriate proceedings its obligation to pay such taxes or charges, and adequate reserves having been set aside for the payment thereof and no Lien has been created on any of its assets in connection therewith, or (b) with respect to such taxes and charges which are not material in either nature or amount such that any failure to pay or discharge them, and any resulting penalties, either in any one instance or in the aggregate, would not materially and adversely affect the financial condition, operations, activities or prospects of the Issuer or the interests of each Noteholder under this Indenture, a Note or any other Transaction Document, and no Lien has been created on any of the Issuer’s assets in connection therewith.

 

(t)           No Adverse Transactions.  The Issuer shall not enter into any transaction which adversely affects the Collateral or any Secured Party’s rights under this Indenture, a Note or any other Transaction Document.

 

(u)           Transactions by Issuer.  None of the Noteholders shall have any obligation to authorize the Issuer to, and the Issuer shall not (without the prior written consent of the Majority Holders), enter into any transaction, including, without limitation, any purchase, sale, lease or exchange of property or the rendering of any service, with any Person (including, without limitation any Affiliate, any shareholder, director, manager, officer or employee (or any relative thereof) of the Issuer or any such Affiliate) unless such transaction is (a) expressly permitted under this Indenture or any other Transaction Document, (b) in the ordinary course of conducting the Issuer’s permitted activities and (c) upon fair and reasonable terms no less favorable to the Issuer than it would obtain in a comparable arm’s-length transaction.

 

(v)           Further Limitations on Actions.  The Issuer shall not do any of the following without the consent of the Control Party:  (i) redeem, retire, purchase or otherwise acquire, directly or indirectly, any of the Issuer’s membership interests, except in connection with employment or similar agreements with officers and directors of the Issuer, or (ii) make any change in the Issuer’s capital structure (except for permitted redemptions or prepayments of the Notes hereunder), or (iii) make any material change in any of its objectives, purposes or operations.

 

(w)           Rule 144A Information. With respect to the Holder of any Note, the Issuer shall promptly furnish or cause to be furnished to such Holder or to a prospective purchaser of such Note designated by such Holder, as the case may be, the information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act (“Rule 144A Information”) in order to permit compliance by such Holder with Rule 144A in connection with the resale of such Note by such Holder; provided, however, that the Issuer shall not be required to furnish Rule 144A Information in connection with any request made on or after the date which is three years from the later of (a) the date such Note (or any predecessor Note) was acquired from the Issuer or (b) the date such Note (or any predecessor Note) was last acquired from an “affiliate” of the Issuer within the meaning of Rule 144 under the Securities Act; and 

  

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provided, further, that the Issuer shall not be required to furnish such information at any time to a prospective purchaser located outside the United States who is not a U.S. Person.

 

ARTICLE XIII

ACCOUNTS AND ACCOUNTINGS

 

Section 13.01                                Collection of Money.  Except as otherwise expressly provided herein, the Trustee may demand payment or delivery of, and shall receive and collect, directly and without intervention or assistance of any fiscal agent or other intermediary, all money and other property payable to or receivable by the Trustee pursuant to this Indenture.  The Trustee shall, upon request from the Servicer, provide the Servicer with sufficient information regarding the amount of collections with respect to the Contract Assets and the other Collateral received by the Trustee in any accounts held in the name of the Trustee to permit the Servicer to perform its duties under the Servicing Agreement.  The Trustee shall hold all such money and property so received by it as part of the Collateral and shall apply it as provided in this Indenture.  If any Contract becomes a Defaulted Contract, the Trustee, upon the request of the Issuer or the Servicer, may, and upon the request of the Control Party shall, take such action as may be appropriate to enforce such payment or performance, including the institution and prosecution of appropriate Proceedings.  Any such action shall be without prejudice to any right to deem a Contract a “Defaulted Contract” for purposes of the Transaction Documents and to claim a Default or Event of Default under this Indenture and to proceed thereafter as provided in Article VI.

 

Section 13.02                                Establishment of Trust Accounts.  i) Prior to the Closing Date, the Issuer established, and as of the Closing Date the Issuer maintains, with the Trustee (i) a segregated, trust account (the “Reserve Account”) for the deposit and retention of amounts required to be maintained therein and (ii) a segregated, trust account (the “Collection Account”) for the receipt and/or retention (as applicable) of (A) Collections, (B) Servicer Advances, (C) any interest or other earnings earned on all or part of the funds in any of the Collection Account or on any other Collateral and any other amounts, if any, remitted by the Issuer pursuant to Section 13.02(d), (D) amounts received in accordance with Section 11.02(b) in connection with a redemption of Outstanding Notes in accordance with Article XI, (E) amounts transferred from the Reserve Account in accordance with this Indenture and (F) amounts transferred from the Lockbox Account in accordance with the Servicing Agreement, (iii) a segregated trust account (the “Prefunding Account”) for the deposit and retention of amounts required to be maintained therein and (iv) a segregated trust account (the “Capitalized Interest Account”) for the deposit and retention of amounts required to be maintained therein. The Collection Account, the Reserve Account, the Prefunding Account and the Capitalized Interest Account are collectively referred to as the “Trust Accounts.”

 

(b)           The Trust Accounts shall be in the name of the Trustee on behalf of the Noteholders at the Corporate Trust Office, which shall bear a designation clearly indicating that the funds deposited therein are held for the benefit of the Secured Parties.  Funds in each Trust Account shall not be commingled with any other monies.  The Trustee shall ensure that the Trust Accounts are at all times Eligible Accounts.  All payments to be made from time to time by the Issuer to the Noteholders and other Persons out of funds in any Trust Account pursuant to this Indenture shall be made by the Trustee or the Paying Agent.  All monies deposited from time to time in the Trust Accounts 

 

  

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pursuant to this Indenture shall be held by the Trustee as part of the Collateral as herein provided.

 

(c)           Upon direction of the Servicer, the Trustee shall invest the funds in or credited to any or all of the Trust Accounts in Eligible Investments.  The direction of the Servicer shall specify the Eligible Investments in which the Trustee shall invest, shall state that the same are Eligible Investments and shall further specify the percentage of funds to be invested in each Eligible Investment.  No such Eligible Investment shall mature later than the Business Day preceding the next following Payment Date.  In the absence of direction of the Servicer, the Trustee shall invest funds in the Trust Accounts in Eligible Investments described in clause (g) of the definition thereof.  Eligible Investments for funds in or credited to the Trust Accounts shall be made in the name of the Trustee for the benefit of the Secured Parties.

 

(d)           Any proceeds, payments, income or other gain from investments in Eligible Investments made in respect of funds in or credited to the Trust Accounts, as outlined in (c) above, shall be credited to the respective Trust Account from which such funds were derived.  The Trustee shall not be liable for any loss incurred on any funds invested in Eligible Investments pursuant to the provisions of this Section (other than losses from nonpayment of investments in obligations of U.S. Bank National Association issued in its individual capacity).  In no event shall the Trustee be liable for the selection of investments or for losses incurred as a result of the liquidation of any investment prior to its Stated Maturity Date or for the failure of any appropriate Person to provide timely written investment direction.

 

(e)           Each party hereto agrees that each of the Trust Accounts constitutes a “securities account” within the meaning of Article 8 of the UCC and in such capacity U.S. Bank National Association shall be acting as a “securities intermediary” within the meaning of 8-102 of the UCC and that, regardless of any provision in any other agreement, for purposes of the UCC, the State of New York shall be deemed to be the “securities intermediary’s jurisdiction” under Section 8-110 of the UCC.  The Trustee shall be the “entitlement holder” within the meaning of Section 8-102(a)(7) of the UCC with respect to the Trust Accounts.  In furtherance of the foregoing, U.S. Bank National Association, acting as a “securities intermediary,” shall comply with “entitlement orders” within the meaning of Section 8-102(a)(8) of the UCC originated by the Trustee with respect to the Trust Accounts, without further consent by the Issuer.  Each item of property (whether investment property, financial asset, security, instrument or cash) credited to each Trust Account shall be treated as a “financial asset” within the meaning of Section 8-102(a)(9) of the UCC.  All securities or other property underlying any financial assets credited to each Trust Account shall be registered in the name of the Trustee or indorsed to the Trustee or in blank, and in no case will any financial asset credited to any Trust Account be registered in the name of the Issuer, payable to the order of the Issuer or specially indorsed to the Issuer except to the extent the foregoing have been specially indorsed to the Trustee or in blank. Any Eligible Investment consisting of “certificated securities,” as defined in the applicable UCC will be evidenced directly or indirectly by physical certificates and each such certificated security (i) will be delivered and held in its direct physical possession by the Securities Intermediary in the State of Minnesota and (ii) (x) is registered in the name of the Securities Intermediary or (y) has been appropriately assigned thereon, or is accompanied by a bond power and/or assignment appropriately executed, in blank or to the Securities Intermediary, and is accompanied by any other documents required by the documents governing such security to effect the transfer of the registration thereof to the Securities Intermediary.  The Trust Accounts shall be under the sole dominion and control (as defined in Section 8-106 of the UCC) of the Trustee, and the Issuer shall have no right to close, make withdrawals from, or give 

 

  

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disbursement directions with respect to, or receive distributions from, (A) the Collection Account or the Reserve Account, except in accordance with Section 13.03 and (B) with respect to the Prefunding Account and Capitalized Interest Account, except in accordance with Sections 13.06 and 13.07, respectively.

 

(f)           In the event that U.S. Bank National Association, as securities intermediary, has or subsequently obtains by agreement, by operation of law or otherwise a security interest in the Trust Accounts or any security entitlement credited thereto, it hereby agrees that such security interest shall be subordinate to the security interest created by this Indenture and that the Trustee’s rights to the funds on deposit therein shall be subject to Section 13.03.  The financial assets credited to, and other items deposited to the Trust Accounts will not be subject to deduction, set-off, banker’s lien, or any other right in favor of any person other than as created pursuant to this Indenture.

 

Section 13.03                                Collection Account.  ii) Except as otherwise expressly provided herein, all amounts received by the Issuer other than (i) proceeds of the sale of the applicable Notes to the Initial Class A Purchaser or any Initial Class B Purchaser, (ii) the Initial Reserve Deposit deposited in the Reserve Account, (iii) amounts deposited in the Prefunding Account or Capitalized Interest Account or (iv) amounts erroneously credited to the Issuer for which the Control Party has provided its prior consent to the application thereof, shall be deposited in the Collection Account until applied, together with funds from the Reserve Account in accordance with this Section 13.03.

 

(b)           By no later than 1:00 p.m. (New York time) on each Payment Date, after making all transfers and deposits to the Collection Account pursuant to Section 13.03, Section 13.04(b)  and Section 13.05, the Trustee shall withdraw from the Collection Account all Available Funds with respect to the related Collection Period and shall disburse such Available Funds in accordance with the related Monthly Servicing Report; provided that, if the Trustee shall not have received the Monthly Servicing Report, (x) the Trustee shall withdraw from the Collection Account amounts verified in writing by the Servicer as needed to pay first, all accrued and unpaid fees and properly invoiced costs and expenses of each of the Originator, Servicer, Back-up Servicer, Trustee and Custodian and second, amounts in accordance with the priorities set forth in Section 13.03(c)(v) through 13.03(c)(x), (y) the Trustee shall distribute such funds in order to make such payments to the appropriate Persons and (z) upon subsequent receipt of the Monthly Servicing Report, or such other information as may be required by the Trustee, the Trustee shall pay each such other amounts set forth below, all as set forth in the Monthly Servicing Report or in such other information delivered to the Trustee; provided further that amounts deposited in the Collection Account in accordance with Section 11.02(b) shall be disbursed in accordance with Section 11.04 and not this Section 13.03;

 

(c)           On each Payment Date, whether or not an Event of Default has occurred and is continuing and the maturity of the Notes has been accelerated, the Trustee shall make the following payments from the Available Funds then on deposit in the Collection Account (after required deposits therein from the Reserve Account) in the following order of priority (to the extent funds are available therefor):

 

 

  

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(i)           to the Servicer, any unreimbursed Servicer Advances;

 

(ii)           to the Servicer, the Servicer Fee (including any accrued and unpaid amounts owing to a predecessor Servicer) then due to such person, together with any accrued and unpaid Servicer Fees owed to such person from prior Collection Periods;

 

(iii)           (a) to the Servicer, any Servicing Charges and (b) to the Servicer (including any accrued and unpaid amounts owing to a predecessor Servicer), any unreimbursed Collection Costs incurred by such person;

 

(iv)           to the Trustee, the Custodian and the Back-up Servicer, the Trustee Fees and out-of-pocket expenses, Custodian Fees and out-of-pocket expenses and Back-up Servicer Fees and out-of-pocket expenses (which includes out-of-pocket expenses due to any successor Servicer)  then due, together with any unpaid Trustee Fees and out-of-pocket expenses, Custodian Fees and out-of-pocket expenses and Back-up Servicer Fees and out-of-pocket expenses from prior Collection Periods (subject to certain limitations set forth herein), and any unpaid Transition Costs in an amount not to exceed in the aggregate $150,000;

 

(v)           to the Class A Noteholders, pro rata, the total amount of Note Interest due and payable to Holders of such Class of Notes;

 

(vi)           to the Class B-1 Noteholders, pro rata, the total amount of Note Interest due and payable to Holders of such Class of Notes;

 

(vii)           to the Class B-2 Noteholders, pro rata, the total amount of Note Interest due and payable to Holders of such Class of Notes;

 

(viii)           so long as no Event of Default has occurred and is continuing, to the Prefunding Account the amount that otherwise would have been made to Class A Noteholders in reduction of principal until the Outstanding Note Balance of the Class A Notes has been reduced to zero; otherwise, to the Class A Noteholders in reduction of principal until the Outstanding Note Balance of the Class A Notes has been reduced to zero;

 

(ix)           so long as no Event of Default has occurred and is continuing, to the Prefunding Account the amount that otherwise would have been made to Class B-1 Noteholders in reduction of principal until the Outstanding Note Balance of the Class B-1 Notes has been reduced to zero; otherwise, to the Class B-1 Noteholders in reduction of principal until the Outstanding Note Balance of the Class B-1 Notes has been reduced to zero;

 

(x)           so long as no Event of Default has occurred and is continuing, to the Prefunding Account the amount that otherwise would have been made to Class B-2 Noteholders in reduction of principal until the Outstanding Note Balance of the Class B-2 Notes has been reduced to zero; otherwise, to the Class B-2 Noteholders in reduction of principal until the Outstanding Note Balance of the Class B-2 Notes has been reduced to zero;

 

 

  

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(xi)           to the Trustee, Securities Intermediary, Custodian and Back-up Servicer, any indemnification payments owed by the Issuer; and

 

(xii)           to the Issuer, any remaining Available Funds; provided, that, if there is no principal or Note Interest outstanding on the Class A, Class B-1 or Class B-2 Notes, such funds to be held in trust by the Trustee, in a segregated, trust account in the name of the Trustee on behalf of the Issuer at the Corporate Trust Office, which account shall bear a designation clearly indicating that the funds deposited therein are held for the benefit of the Issuer.

 

(d)           On the related Redemption Date, the Trustee shall withdraw the sum of the applicable Redemption Price from the Collection Account, and the Paying Agent shall remit the Redemption Price to the applicable Noteholders in accordance with Section 11.03.

 

Section 13.04                                Reserve Account.  (a) Upon each date on which the following three payments are made:  $10,000,000 by the Initial Class A Purchaser for the Class A Notes, $375,000 by the Initial Class B-1 Purchaser for the Class B-1 Notes and $375,000 by the Initial Class B-2 Purchaser for the Class B-2 Notes, in accordance with Section 3(c) of the Note Purchase Agreement, $375,000 of the cash proceeds resulting from the issuance of the Class B-1 Notes and $375,000 of the cash proceeds resulting from the issuance of the Class B-2 Notes will be deposited into the Reserve Account.

 

(b)           If on any Payment Date, (i) amounts on deposit in the Collection Account are insufficient to reduce the aggregate Outstanding Note Balance to an amount lower than or equal to the Discounted Pool Balance, plus amounts then on deposit in the Prefunding Account, after applying clauses (i) through (x) of Section 13.03(c) or (ii) amounts on deposit in the Reserve Account are greater than or equal to the aggregate Outstanding Note Balance, the Trustee will withdraw, to the extent of funds on deposit in the Reserve Account, in the case of (i), the amount of such insufficiency or, in the case of (ii), all funds and deposit such amounts into the Collection Account to be used as Available Funds; provided, that all amounts so withdrawn shall be applied in reduction of principal until the Outstanding Note Balance of the Class A Notes has been reduced to zero, and then in reduction of principal until the Outstanding Note Balance of the Class B-1 Notes has been reduced to zero, and then in reduction of principal until the Outstanding Note Balance of the Class B-2 Notes has been reduced to zero.  Upon the occurrence of any Event of Default that results in acceleration of the Notes and is not waived or cured on or before the next Payment Date, all funds maintained in the Reserve Account shall be transferred to the Collection Account by the Trustee to be used as Available Funds in accordance with Section 13.03(c).  On the Stated Maturity Date, and at the option of the Issuer in connection with the redemption pursuant to Article XI, any remaining funds on deposit in the Reserve Account shall be deposited in the Collection Account to be used as Available Funds and distributed in accordance with Section 13.03(c).

 

Section 13.05                                [Reserved]

 

 

  

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Section 13.06                                Prefunding Account.  Upon each date on which the following three payments are made:  $10,000,000 by the Initial Class A Purchaser for the Class A Notes, $375,000 by the Initial Class B-1 Purchaser for the Class B-1 Notes and $375,000 by the Initial Class B-2 Purchaser for the Class B-2 Notes, in accordance with Section 3(c) of the Note Purchase Agreement, $4,045,913.38 of the cash proceeds resulting from the issuance of the Class A Notes will be deposited to the Prefunding Account. In addition, any amounts that otherwise would have been made to any Noteholders in reduction of their respective principal shall be deposited into the Prefunding Account in accordance with Sections 13.03(c)(viii), 13.03(c)(ix) and 13.03(c)(x). The Issuer is authorized to use amounts in the Prefunding Account to acquire from time to time Purchased Contracts from the Originator and the Originator’s interest in the related Equipment pursuant to the Purchase and Contribution Agreement, provided that (1) such Contracts are Eligible Contracts as of the related Acquisition Date (except as permitted pursuant to Section 4.04(a)), (2) no Event of Default has occurred and is continuing, (3) the Overconcentration Test would be satisfied immediately after the Issuer acquires the proposed Purchased Contracts on the related Acquisition Date, (4) the Outstanding Note Balance of the Class A Notes is equal to or lower than the Discounted Pool Balance and (5) the aggregate number of Contract Files to be reviewed by the Custodian relating to such proposed Contracts to be acquired at any time shall not exceed five hundred (500) without the consent of the Custodian and the Class A Noteholders. Upon the occurrence of any Event of Default that results in acceleration of the Notes and is not waived or cured on or before the next Payment Date, all amounts on deposit in the Prefunding Account will be withdrawn by the Trustee, to the extent of funds on deposit therein, and distributed, to the Class A Noteholders, the Class B-1 Noteholders and the Class B-2 Noteholders, pro rata based upon their respective Outstanding Note Balances, in reduction of principal, and without regard to the priority of payments set forth in Section 13.03(c).

 

Section 13.07                                Capitalized Interest Account.  Upon each date on which the following three payments are made:  $10,000,000 by the Initial Class A Purchaser for the Class A Notes, $375,000 by the Initial Class B-1 Purchaser for the Class B-1 Notes and $375,000 by the Initial Class B-2 Purchaser for the Class B-2 Notes, $193,449.82 of the cash proceeds resulting from the issuance of the Class A Notes will be deposited to the Capitalized Interest Account.  On each Payment Date, amounts from the Capitalized Interest Account shall be deposited into the Collection Account by the Trustee in an amount equal to accrued interest at 6.75% per annum (calculated on the basis of the actual number of days elapsed in a three-hundred-sixty (360)-day year) on the amount in the Prefunding Account on the Closing Date (for the calculation of capitalized interest due on the first Payment Date) and on the immediately preceding Payment Date (for the calculation of capitalized interest due on each Payment Date other than the initial Payment Date). Upon the occurrence of any Event of Default that results in acceleration of the Notes and is not waived or cured on or before the next Payment Date, all amounts on deposit in the Capitalized Interest Account will be withdrawn by the Trustee, to the extent of funds on deposit therein, and distributed to the Class A Noteholders, the Class B-1 Noteholders and the Class B-2 Noteholders, pro rata based upon their respective Outstanding Note Balances, in reduction of principal, and without regard to the priority of payments set forth in Section 13.03(c).

 

Section 13.08                                Reports to the Noteholders. (a) On each Payment Date, the Trustee will make available to each Noteholder the Monthly Servicing Report.

 

 

  

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       The Trustee will make the Monthly Servicing Report available to the Noteholders, via the Trustee’s Internet website, and, with the consent or at the direction of the Issuer, such other information regarding the Notes and/or the Contracts as the Trustee may have in its possession, but only with the use of a password provided by the Trustee or its agent to such Person.  The Trustee will make no representation or warranties as to the accuracy or completeness of such documents and will assume no responsibility for the contents thereof.

 

The Trustee’s Internet website initially shall be located at www.usbank.com/abs or at such other address as shall be specified by the Trustee from time to time in writing to the Noteholders.  In connection with providing access to the Trustee’s Internet website, the Trustee may require registration and the acceptance of a disclaimer.  The Trustee shall not be liable for errors in the dissemination of information in accordance with this Indenture.

 

Such reports will not constitute financial statements prepared in accordance with generally accepted accounting principles.

 

(b)           At least annually, or as otherwise required by law, the Servicer shall prepare or cause to be prepared, and the Trustee shall distribute to the Noteholders, any 1099 form, or other tax information or statements as are required by applicable tax law.

 

Section 13.09                                Monthly Servicing Reports.  No later than 12:00 p.m. (New York time) on each Reporting Date, the Servicer shall deliver the Monthly Servicing Report to each Initial Purchaser, the Trustee and the Back-up Servicer.  No later than 12:00 noon (New York time) on the following Verification Date, the Back-up Servicer shall perform its obligations and duties set forth in Section 4.05 of the Servicing Agreement and shall notify the Issuer and the Trustee of any discrepancies therein or the need for any additional information to complete such verification, and the Servicer shall promptly re-issue a revised Monthly Servicing Report addressing such discrepancies and such information request which revised Monthly Servicing Report shall supersede the prior report for purposes of making the distributions described in Section 13.03. The Monthly Servicing Report shall include the information specified in the form of Monthly Servicing Report attached to the Servicing Agreement, as such form may be modified from time to time with the consent of the Servicer, the Back-up Servicer and the Control Party.

 

ARTICLE XIV

PROVISIONS OF GENERAL APPLICATION

 

Section 14.01                                General Provisions.  All of the provisions of this Article shall apply to this Indenture.

 

Section 14.02                                Acts of Noteholders.

 

(a)           Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Noteholders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Noteholders in person or by an agent duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or 

 

 

  

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instruments are delivered to the Trustee, and, where it is hereby expressly required, to the Issuer.  Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Noteholders signing such instrument or instruments.  Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to Section 7.01) conclusive in favor of the Trustee and the Issuer, if made in the manner provided in this Section.

 

(b)           The fact and date of the execution by any Person of any such instrument or writing may be proved in any manner which the Trustee deems sufficient.

 

(c)           The ownership of Notes shall be proved by the Note Register.

 

(d)           Any request, demand, authorization, direction, notice, consent, waiver or other action by the Noteholder of any Note shall bind the Noteholder of every Note issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof, in respect of anything done, omitted or suffered to be done by the Trustee or the Issuer in reliance thereon, whether or not notation of such action is made upon such Note.

 

Section 14.03                                Notices.  Any request, demand, authorization, direction, notice, consent, waiver or Act of Noteholders or the Control Party or other document provided or permitted by this Indenture to be made upon, given or furnished to, or filed with any party hereto shall be sufficient for every purpose hereunder if in writing and telecopied (with written confirmation of receipt), mailed by registered mail, overnight bonded courier or personally delivered, and addressed to the appropriate address below (or such other address as may be provided to the other parties in writing from time to time):

 

(a)           to the Trustee at 60 Livingston Avenue, EP-MN-WS3D, St. Paul, Minnesota 55107, telecopier number 651-495-8090, Attention:  LEAF Funding SPE 1, LLC, Equipment Contract Backed Notes, Series 2010-4;

 

(b)           to the Custodian at 1133 Rankin Street, EP-MN-TMZD, St. Paul, MN 55116 telecopy number:  651-695-6102, Attention:  LEAF Funding SPE 1, LLC, Equipment Contract Backed Notes, Series 2010-4;

 

(c)           to the Servicer at 2005 Market Street, 15th Floor, Philadelphia, PA 19103, telecopy number:  215-640-6363, Attention:  Miles Herman;

 

(d)           to the Issuer at 2005 Market Street, 15th Floor, Philadelphia, PA 19103, telecopy number:  215-640-6363, Attention:  Miles Herman;

 

(e)           to the Originator at 2005 Market Street, 15th Floor, Philadelphia, PA 19103, telecopy number:  215-640-6363, Attention:  Miles Herman; or

 

(f)           to the Back-up Servicer at 1310 Madrid Street, Suite 103, Marshall, MN 56258, telecopy number:  866-806-0775, Attention: Bradley Winkelman, Re:  LEAF Funding SPE 1, LLC, Equipment Contract Backed Notes, Series 2010-4;

 

 

  

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Section 14.04                                Notices to Noteholders; Waiver.  Where this Indenture provides for notice to Noteholders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and telecopied (with written confirmation of receipt from each addressee), mailed by registered mail, overnight bonded courier or delivered personally to each Noteholder affected by such event, at its address as it appears on the Note Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice.  In any case in which notice to Noteholders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular Noteholder shall affect the sufficiency of such notice with respect to other Noteholders, and any notice which is mailed in the manner herein provided shall conclusively be presumed to have been duly given.

 

Where this Indenture provides for notice in any manner, such notice may be waived in writing by any Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice.  Waivers of notice by Noteholders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver.

 

In case, by reason of the suspension of regular mail service as a result of a strike, work stoppage or similar activity, it shall be impractical to mail notice of any event to the Noteholders when such notice is required to be given pursuant to any provision of this Indenture, then any manner of giving such notice as shall be satisfactory to the Trustee shall be deemed to be a sufficient giving of such notice.

 

Section 14.05                                Successors and Assigns. All covenants and agreements in this Indenture by the Issuer shall bind its successors and assigns, whether so expressed or not.

 

Section 14.06                                Severability; No Waiver.  In case any provision in this Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.  No failure on the part of the Trustee, the Control Party or any Noteholder to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right.  The remedies herein provided are cumulative and not exclusive of any remedies provided by law.

 

Section 14.07                                Benefits of Indenture Limited to Parties and Express Third Party Beneficiaries. Nothing in this Indenture or in the Notes, express or implied, shall give to any Person, other than the parties hereto, the Noteholders and any of their successors hereunder, any benefit or any legal or equitable right, remedy or claim under this Indenture or under the Notes.  Each of the Noteholders are express third party beneficiaries of this Indenture each entitled to enforce the provisions hereof as if a party hereto.

 

Section 14.08                                Legal Holidays. In any case in which the date of any Payment Date, or the Stated Maturity Date of any Note shall not be a Business Day, then (notwithstanding any other provision of the Notes or this Indenture) payment of principal or interest need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the nominal date of any such Stated Maturity Date or Payment Date.

 

 

  

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   Section 14.09                                Governing Law; Waiver of Jury Trial; Consent to Jurisdiction.

 

(a)           This Indenture and each Note shall be construed in accordance with and governed by the laws of the State of New York applicable to agreements made and to be performed therein, except to the extent that the perfection or effect of perfection of the security interests granted hereunder are governed by the laws of a jurisdiction other than the State of New York.  Section 5-1401 and Section 5-1402 of the New York General Obligations Law shall be applicable.

 

(b)           The Issuer hereby agrees to the jurisdiction of any federal court located within the State of New York, and waives personal service of any and all process upon it and consents that all such service of process be made by registered mail directed to the Issuer at the address set forth in Section 14.03 hereof and service so made shall be deemed to be completed five (5) days after the same shall have been deposited in the U.S. mails, postage prepaid.  With respect to the foregoing consent to jurisdiction, the Issuer hereby waives any objection based on forum non conveniens, and any objection to venue of any action instituted hereunder and consents to the granting of such legal or equitable relief as is deemed appropriate by the court.

 

(c)           The Issuer hereby waives any right to have a jury participate in resolving any dispute, whether sounding in contract, tort, or otherwise among the parties hereto or otherwise arising out of, connected with, related to, or incidental to the relationship between them in connection with this Indenture.  Instead, any dispute resolved in court will be resolved in a bench trial without a jury.  Nothing in this Section 14.09 shall affect the right of the Trustee, the Control Party or any Noteholder to serve legal process in any other manner permitted by law or to bring any action or proceeding against the Issuer or its property in the courts of any other jurisdiction.

 

Section 14.10                                Counterparts; Entire Agreement. This Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.  Delivery by telecopier of an executed counterpart of a signature page to this Indenture shall be as effective as delivery of the original executed counterpart.  This Indenture, together with the exhibits hereto and the other written Transaction Documents referenced herein, sets forth the entire agreement among the parties hereto with respect to the subject matter hereof, superseding all prior oral or written understandings.

 

Section 14.11                                Notifications. Notwithstanding any provision to the contrary contained in this Indenture, all reports, notices, communications and consents which are required, by the terms of this Indenture, to be delivered by the Noteholders, shall be required to be delivered to the Trustee in writing.

 

Section 14.12                                No Petition.  During the term of this Indenture and for one year and one day after payment in full of all obligations of the Issuer under the Transaction Documents, none of the parties hereto or any Affiliate thereof or any Noteholder will file any involuntary petition against the Issuer or otherwise institute, or cooperate with or encourage any other Person to file or otherwise institute, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or any other proceedings under federal or state bankruptcy or similar law against or concerning the Issuer; provided that if such proceeding shall have commenced, nothing herein shall preclude any Noteholder from filing a proof of claim in any such proceeding.

 

 

  

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Section 14.13                                Assignment.

 

Notwithstanding anything to the contrary contained herein, this Indenture may not be assigned by the Issuer.

 

 

  

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In Witness Whereof, the Issuer, the Trustee and the Custodian have caused this Indenture to be duly executed by their respective duly authorized officers as of the date and year first above written.

 

 

	 	
LEAF Funding SPE 1, LLC,

as Issuer

	 
	 	 	 	 
	
 

	
By: 

	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

 

 

 

	 	
U.S. Bank National Assication,

as Trustee

	 
	 	 	 	 
	
 

	
By: 

	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

 

 

 

	 	
U.S. Bank National Assication,

as Custodian

	 
	 	 	 	 
	
 

	
By: 

	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

 

 

  

  

  

 

SCHEDULE I

 

CLOSING DATE CONTRACT SCHEDULE

 

[See attached.]

 

 

Sched. I-1

  

  

  

 

SCHEDULE II

 

DEFINITIONS ANNEX

 

[See attached.]

 

 

 

Sched. II-1

 

 

  

  

  

 

SCHEDULE II

TO INDENTURE

 

DEFINITIONS ANNEX

 

 

“Acquisition Date”:  With respect to a Substitute Contract or Purchased Contract, the date on which such Substitute Contract is transferred by LEAF Financial Corporation (as initial Servicer) to the Issuer or the Conveyance Date on which such Purchased Contract is transferred by the Seller to the Issuer.

 

“Act”:  With respect to any Noteholder, the meaning set forth in Section 14.02 of the Indenture.

 

“Advance Payment”: With respect to a Contract and a Collection Period, any Scheduled Payment or portion thereof made by or on behalf of an Obligor and received by the Servicer during such Collection Period, which Scheduled Payment or portion thereof does not become due until a subsequent Collection Period.  Prepayments are not “Advance Payments.”

 

“Affiliate”:  With respect to any specified Person, any other Person, directly or indirectly, controlling or controlled by or under common control with such specified Person.  For the purposes of this definition, “control,” when used with respect to any specified Person, means the power (a) to vote ten percent (10%) or more of the securities or interests (on a fully diluted basis) having ordinary voting power for the directors, managers or managing partners (or their equivalent) of such Person or (b) to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

 

“Amendment to Contract Schedule”:  The list of Contracts, including all information set forth in the definition of “Contract Schedule”, amending the Contract Schedule pursuant to any substitution, modification or other acquisition of Contracts in accordance with the terms of the Transaction Documents.

 

“Assignment Agreement”:  Means each Assignment Agreement delivered pursuant to the Purchase and Contribution Agreement.

 

 “Authenticating Agent”:  Any entity appointed by the Trustee pursuant to Section 7.14 of the Indenture.

 

“Available Funds”: With respect to any Payment Date, (a) any payments on the Contracts received during the related Collection Period, (b) proceeds of any Servicer Advances made with respect to such Payment Date for delinquent Scheduled Payments, no later than immediately prior to such Payment Date, (c) all Recoveries, Insurance Proceeds, Residual Receipts and other amounts received with respect to the Contracts or Equipment, (d) payments made by the Originator or the Servicer, as the case may be, to repurchase contracts affected by breaches of representations and warranties regarding the Contracts, or Delinquent Contracts or

 

 

  

  

  

 

Defaulted Contracts and (e) any amounts on deposit in the Reserve Account in accordance with the Indenture.

 

“Back-up Servicer”:  Means Lyon Financial Services, Inc., d/b/a U.S. Bank Portfolio Services, a Minnesota corporation, acting in the capacity of Back-up Servicer or as successor Servicer; and at such time, if any, that a successor Person shall have become the “Back-up Servicer” pursuant to the applicable provisions of the Servicing Agreement, the term “Back-up Servicer” shall also mean such successor Person.

 

“Back-up Servicer Default”:  An occurrence of any of the following:

 

(a)           Any failure on the part of the Back-up Servicer to duly observe or perform any covenants or agreements of the Back-up Servicer set forth in any Transaction Document or if any representation or warranty of the Back-up Servicer set forth in Section 7.01 of the Servicing Agreement or in any other Transaction Document shall prove to be incorrect, in any material respect, which failure or breach continues unremedied for a period of thirty (30) Business Days after the earlier of the date on which the Back-up Servicer becomes aware of such failure or breach or the date on which written notice of such failure or breach, requiring the situation giving rise to such breach or non-conformity to be remedied, shall have been given to the Back-up Servicer by the Issuer, the Trustee, or the Control Party; or

 

(b)           Any negligence or willful misconduct of the Back-up Servicer related to the Transaction Documents that results in a material loss or damage to the Issuer, the Originator, the Servicer, the Trustee, any Noteholder or the Collateral; or

 

(c)           A conviction of the Back-up Servicer or any of its officers of a felony or of any crime involving fraud in the discharge of fiduciary duties or the servicing of assets that could reasonably be expected to have a material adverse effect on the performance of the Back-up Servicer’s duties under the Transaction Documents; or

 

(d)           The entry of a decree or order for relief by a court having jurisdiction in respect of the Back-up Servicer or a petition shall be filed against the Back-up Servicer in an involuntary case under any federal bankruptcy laws, as now or hereafter in effect, or any other present or future federal or state bankruptcy, insolvency or similar law, or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official for the Back-up Servicer or for any substantial part of its property, or ordering the winding up or liquidation of the affairs of the Back-up Servicer and the continuance of any such decree or order unstayed and in effect for a period of sixty (60) consecutive days; or

 

(e)           The commencement by the Back-up Servicer of a voluntary case under any federal bankruptcy laws, as now or hereafter in effect, or any other present or future federal or state bankruptcy, insolvency, reorganization or similar law, or the consent by the Back-up Servicer to the appointment of or taking possession by a conservator, receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official in any insolvency, readjustment of debt, marshaling of assets and liabilities, bankruptcy or similar proceedings of or related to the Back-up Servicer or related to a substantial part of its property, or the making by the Back-up Servicer of an assignment for the benefit of creditors, or the failure by the Back-up Servicer

 

  

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generally to pay its debts as such debts become due or if the Back-up Servicer shall admit in writing its inability to pay its debts as they become due, or the taking of corporate action by the Back-up Servicer in furtherance of any of the foregoing.

 

“Back-up Servicer Fee”:  As further described in the Back-up Servicer Fee Schedule, the monthly fee payable on each Payment Date to the Back-up Servicer in consideration for its performance of its duties as Back-up Servicer in an amount equal to the greater of (i) one twelfth (1/12th) of the product of the aggregate Discounted Pool Balance as of the Payment Date occurring immediately prior to the related Collection Period (or, in the case of the Initial Payment Date, the Closing Date) and the Back-up Servicer Fee Rate, and (ii) $2,500.00. The Back-up Servicer Fee shall also include an initial acceptance fee of $7,500.00, which shall be payable on the Closing Date.

 

“Back-up Servicer Fee Rate”:  18 basis points.

 

“Back-up Servicer Fee Schedule”:  That certain “Schedule of Fees for Services Rendered as Back-up Servicer for $21,500,000 (Approximate) LEAF Funding SPE 1, LLC, Equipment Contract Backed Notes, 2010-4”, dated as of August 27, 2010.

 

“Bankruptcy Code”: The United States Bankruptcy Code, Title 11 of the United States Code, as amended from time to time, and any successor statute.

 

“Booked Residual”:  With respect to any Contract on any date of determination, the residual value of the Equipment subject to such Contract, as reflected in LEAF Financial Corporation’s servicing system on the date such Contract was booked on LEAF Financial Corporation’s servicing system.

 

“Business Day”:  Any day other than (i) a Saturday or Sunday, or (ii) a day on which banking institutions in New York City, the city in which the Servicer is located or the city in which the corporate trust office of the Trustee is located are authorized or obligated by law or executive order to be closed.

 

“Calculation Date”:  Means, unless the context requires otherwise, the close of business on the last day of a Collection Period.

 

“Capitalized Interest Account”:  The trust account created and maintained pursuant to Section 13.02 of the Indenture; provided, that in no event shall the Capitalized Interest Account be other than an Eligible Account.

 

“Class”:  With respect to the Notes, the designation of Class A, Class B-1 or Class B-2, with the specific senior or subordinated rights related to such designation as are identified in the Indenture.

 

“Class A Buyout Notice”:  Has the meaning assigned in Section 6.16 of the Indenture.

 

“Class A Buyout Price”:  Has the meaning assigned in Section 6.16 of the Indenture.

 

“Class A Noteholder”:  A Holder of Class A Notes.

  

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“Class A Notes”:  The Equipment Contract Backed Notes, Series 2010-4, Class A issued by LEAF Funding SPE 1, LLC pursuant to the Indenture, in the aggregate maximum principal amount of $20,000,000.

 

“Class B Notes”:  Means, collectively, the Class B-1 Notes and the Class B-2 Notes.

 

“Class B-1 Noteholder”:  A Holder of Class B-1 Notes.

 

“Class B-1 Notes”:  The Equipment Contract Backed Notes, Series 2010-4, Class B-1 issued by LEAF Funding SPE 1, LLC pursuant to the Indenture, in the aggregate maximum principal amount of $750,000.

 

“Class B-2 Noteholder”:  A Holder of Class B-2 Notes.

 

“Class B-2 Notes”:  The Equipment Contract Backed Notes, Series 2010-4, Class B-2 issued by LEAF Funding SPE 1, LLC pursuant to the Indenture, in the aggregate maximum principal amount of $750,000.

 

“Closing Date”:  August 31, 2010; provided, however, that with respect to Section 3(c)(i) of the Note Purchase Agreement, “Closing Date” shall mean September 2, 2010.

 

“Code”:  The Internal Revenue Code of 1986, as amended.

 

“Co-Trustee”:  The meaning set forth in Section 7.12 of the Indenture.

 

“Collateral”:  The meaning set forth in the Granting Clause of the Indenture.

 

“Collateral Purchase Notice Date”:  Has the meaning set forth in Section 6.18(c) of the Indenture.

 

“Collection Account”:  The segregated trust accounts and any related sub-accounts created and maintained pursuant to Section 13.02 of the Indenture; provided that in no event shall the Collection Account be other than an Eligible Account.

 

“Collection Costs”:  With respect to any Contract and subject to the Servicer’s standard of care set forth in Section 3.02 of the Servicing Agreement, reasonable costs and expenses incurred by the Servicer (including reasonable attorney’s fees and out-of-pocket expenses) and payable to Persons other than Affiliates of the Servicer in connection with the realization, attempted realization or enforcement of rights and remedies upon such Contract and as further described in Section 3.08 of the Servicing Agreement.

 

“Collection Period”:  With respect to any Payment Date, the period commencing on the first day of the immediately preceding calendar month and ending on the last day of such calendar month; provided that the first Collection Period is the period from the Closing Date until August 31, 2010.

 

“Collections”:  As of any determination date, the sum of all amounts collected during a Collection Period under or in respect of the Contract Assets, including, without limitation, all

  

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amounts consisting of Scheduled Payments, Contract Repurchase Prices, Guaranty Amounts, Insurance Proceeds and other Recoveries and Residual Receipts, but excluding any amounts consisting of Security Deposits.

 

“Contract”:  As of any date of determination, a lease (including the master lease, if applicable), a loan, a leveraged lease loan, conditional sale or similar equipment finance contract conveyed on an Acquisition Date by the Originator to the Issuer pursuant to the Purchase and Contribution Agreement and pledged to the Trustee in accordance with the Transaction Documents and including any substitutions therefor; provided that, from and after the date that such Contract is repurchased, substituted or released from the lien of the Indenture, each in accordance with the requirements of the Transaction Documents, such Contract shall no longer constitute a “Contract”.

 

“Contract Assets”:  Collectively, as of any date of determination, (a) each Contract that is listed on the Contract Schedule from time to time, (b) all Receivables related thereto, (c) the interest of the Issuer in the Equipment related thereto, (d) the related Contract Files, (e) all other Related Security, and (f) any and all income and proceeds of the foregoing.

 

“Contract File”:  With respect to each Contract, the following documentation (unless otherwise permitted by the Majority Holders): (a) if the Equipment related to such Contract is Motorized Titled Equipment, (i) a copy of the application for certificate of title showing the Originator or Servicer (or their nominees) as lienholder or secured party or (ii) on and after the date that is 180 days after such Contract was pledged by the Issuer to the Trustee (for the benefit of the Secured Parties), the original copy of the Lien Certificate with respect to such Motorized Titled Equipment, which such Lien Certificate notes the secured party of such Motorized Titled Equipment as being the Originator (or its nominee pursuant to the Lienholder Nominee Agreement) or Servicer (or its nominee pursuant to the Lienholder Nominee Agreement); provided, however, that, prior to the occurrence of an Event of Default and the request by the Trustee for the recordation of the Trustee’s lien on such Equipment’s certificate of title, the original Lien Certificate shall not be required to show the Trustee as secured party, (b) the one and only executed original counterpart of such Contract (bearing the original signature of an employee of the Originator, or if the contract was not originated by the Originator, the originator thereof, together with an original or facsimile copy of the signature of the lessee) in the Servicer’s possession, or if the LEAF Parties are not in possession of such original, a machine copy thereof certified by an officer of the Servicer or the Originator that such copy is a true and complete copy thereof; (c) copies of an Insurance Policy, if any, evidence of insurance, if any, and any other copies of documents evidencing or related to any Insurance Policy with respect to such Contract; (d) copies of all UCC financing statements required to be filed to perfect the security interest in the related Equipment and the Related Security related thereto (except with respect to a Contract related to Equipment that had an original equipment cost at origination of less than (A) if such Contract is a secured loan or finance lease that provides for a $1 purchase option, $25,000, or (B) if such Contract provides for a “fair market value” purchase option, $50,000); and (e) copies of any additional documents (other than Servicing Documents) that the Servicer keeps on file with respect to such Contract.

 

“Contract Repurchase Price”:  Means, with respect to any Contract repurchased by the Originator pursuant to the Purchase and Contribution Agreement, repurchased by the Servicer

 

  

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pursuant to the Servicing Agreement, or removed from the Collateral by the Issuer pursuant to the Indenture, the sum of (a) the Discounted Contract Balance (computed without giving effect to clauses (b) and (c) of the definition of Discounted Contract Balance and without duplication of amounts) of the related Contract on the date of determination on or immediately preceding the date when the Contract is removed or repurchased, plus (b) any Scheduled Payments with respect to the Contract due on or prior to such date of determination but not received through such date of determination, minus (c) the Discounted Contract Balance of any Contract provided in substitution therefor.

 

“Contract Schedule”:  The list of Contracts that are the subject of the transactions contemplated by the Transaction Documents, which list shall include (a) those Contracts listed on the Assignment Agreement delivered on the Closing Date and attached to the Indenture as Schedule I plus (b) any Contracts listed on an Amendment to Contract Schedule as a result of the addition of any Substitute Contract or Purchased Contract listed on any Assignment Agreement delivered after the Closing Date, less (c) any Contracts deleted as a result of a repurchase, substitution therefor, or release thereof pursuant to the Transaction Documents.  The Contract Schedule shall include with respect to each Contract:  (A) the LEAF Contract Number; (B) the name of the Obligor; (C) the State of the Obligor’s billing address; (D) the Discounted Contract Balance as of the related Cut-Off Date; (E) whether such Contract is a Delinquent Contract; (F) the remaining term; and (G) the original cost of the Equipment (but the Custodian need not verify such original cost).  The Contract Schedule shall also include with respect to each Substitute Contract:  (A) the LEAF Contract Number of the Contract being replaced and (B) the Discounted Contract Balance of the Contract being replaced as of the related Cut-Off Date.  The Contract Schedule kept by the Trustee at its Corporate Trust Office shall be the definitive Contract Schedule for all purposes of the Indenture, absent manifest error (in which case the Contract Schedule shall be all schedules attached to any Officer’s Certificate delivered by the Servicer or the Issuer, to the Trustee relating to the Contract Schedule).

 

“Control Party”:  Means (a) so long as any Class A Notes are outstanding, the Class A Noteholders representing 66-2/3% of the Outstanding Note Balance of the Class A Notes, (b) after the Class A Notes have been paid in full and for so long as any Class B-1 Notes remain outstanding, the Class B-1 Noteholders representing 66-2/3% of the Outstanding Note Balance of the Class B-1 Notes or (c) after the Class A Notes and the Class B-1 Notes have been paid in full and for so long as any Class B-2 Notes remain outstanding, the Class B-2 Noteholders representing 66-2/3% of the Outstanding Note Balance of the Class B-2 Notes.

 

“Conveyance Date”: Has the meaning set forth in Section 2.1(e) of the Purchase and Contribution Agreement.

 

“Conveyed Assets”: Has the meaning set forth in Section 2.1(a) of the Purchase and Contribution Agreement.

 

“Corporate Trust Office”:  The designated corporate trust office of the Trustee located, at the time of the execution of the Indenture at 60 Livingston Avenue, EP-MN-WS3D, St. Paul, MN 55107, Attention: LEAF Funding SPE 1, LLC, Equipment Contract Backed Notes, or at such other address as the Trustee may designate from time to time by notice to the parties to the

 

  

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Transaction Documents, or the principal corporate trust office of any permitted successor Trustee under the Indenture.

 

“Credit and Collection Policies”:  Means the written collection and servicing policies of the Servicer, as in effect on the Closing Date, copies of which were delivered to the Back-up Servicer prior to the Closing Date, as amended with prior written consent of the Control Party (in the case of material amendments) from time to time in accordance with Section 3.01(c)(ix) of the Servicing Agreement; provided that, if LEAF Financial Corporation is not the Servicer, the term “Credit and Collection Policies” shall mean the written collection and servicing procedures of such successor Servicer as provided to the Trustee at the time such Person becomes successor Servicer.

 

“Cumulative Net Loss Trigger Event”:  Has the meaning set forth in Section 6.01(a)(ix) of the Servicing Agreement.

 

“Cumulative Net Loss Percentage”:  Means, with respect to any Collection Period, the percentage equivalent of a fraction, (i) the numerator of which is the excess of (a) the Discounted Contract Balance (immediately prior to becoming a Defaulted Contract) of all Contracts that became Defaulted Contracts during such Collection Period and all prior Collection Periods and remain Defaulted Contracts over (b) the aggregate amount of all Recoveries collected by the Servicer with respect to such Defaulted Contracts and (ii) the denominator of which is the sum of the Discounted Contract Balances of the Purchased Contracts as of their respective Cut-Off Dates.

 

“Custodian”:  Initially means U.S. Bank National Association, or such other party as is appointed in accordance with Article VIII of the Indenture to act as custodian to receive, inventory and maintain possession of the Contract Files in accordance with the requirements of the Indenture.

 

“Custodian Certificate”:  The certificate, substantially in the form of Exhibit C attached to the Indenture, delivered by the Custodian to the Trustee and the Issuer pursuant to Section 4.03 of the Indenture.

 

“Custodian Fee”:  Means the monthly fee payable on each Payment Date to the Custodian in an amount equal to the greater of (i) $60.00 and (ii) the actual per file fees, based on the Custodian’s schedule of fees then in effect, incurred during the related Collection Period with respect to activities involving the Contract Assets during such Collection Period, as further described in the Custodian Fee Schedule.

 

“Custodian Fee Schedule”:  That certain “Schedule of Fees for Services Rendered as Custodian for $21,500,000 (Approximate) LEAF Funding SPE 1, LLC, Equipment Contract Backed Notes, 2010-4”, dated as of August 27, 2010.

 

“Cut-Off Date”:  Means, with respect to each Substitute Contract and Purchased Contract, the close of business on the last day of the calendar month immediately preceding the calendar month in which such Substitute Contract or Purchased Contract is pledged to the Trustee.

 

  

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“Default”:  Any occurrence or circumstance which with notice or the lapse of time or both would become an Event of Default, unless any such particular occurrence or circumstance is waived as a “Default” in writing in accordance with the provisions of the Indenture; provided that, unless and until any such waiver is given, a “Default” shall be deemed to exist for all purposes under the Transaction Documents, even if the occurrence or circumstance giving rise to such Default is no longer continuing or has been cured.

 

“Default Notice Date”:  Has the meaning set forth in Section 6.16 of the Indenture.

 

“Defaulted Contract”:  Any Contract:  (a) as to which an Insolvency Event has occurred with respect to the Obligor where the related lease has been rejected in the Obligor’s bankruptcy proceedings, (b) all or any portion of which has been or should have been, in accordance with the Credit and Collection Policies, written off on the Servicer's books as uncollectible, or (c) as to which more than 10% of a Scheduled Payment remains unpaid for 181 days or more from the original due date for such payment, without regard to any Servicer Advance, provided that a Contract shall no longer be a Defaulted Contract for any purpose of the Transaction Documents, upon the cure of the condition or event which caused it to be a Defaulted Contract.

 

“Deferred Interest”:  Has the meaning set forth in the definition of Note Current Interest.

 

“Delinquent Contract”:  Any Contract (a) as to which more than 10% of a Scheduled Payment was not received by the Servicer within ninety-one (91) days after the original due date for such Scheduled Payment, without regard to any Servicer Advance and (b) that is not a Defaulted Contract.

 

“Delinquency Ratio”: Means, with respect to any Determination Date, the quotient, expressed as a percentage, of (a) the aggregate Discounted Contract Balance of all Delinquent Contracts determined as of the end of the related Collection Period, divided by (b) the aggregate Discounted Contract Balance of all Contracts in the trust estate as of the last day of the related Collection Period.

 

“Determination Date”:  With respect to any Payment Date, a date which is the sixteenth day of the calendar month in which such Payment Date occurs, or if such day is not a Business Day, the immediately preceding Business Day.

 

“Discount Rate”:  6.25% per annum.

 

“Discounted Contract Balance”: Means, with respect to any Contract, on any date of determination, the lesser of (x) the original equipment cost at origination of the Equipment relating to such Contract and (y) the sum of the present value of all of the remaining payments becoming due under such Contract after the end of the prior Collection Period, discounted monthly at the Discount Rate assuming (a) Scheduled Payments are due on the last day of each Collection Period in which a Scheduled Payment is due; (b) Scheduled Payments are discounted on a monthly basis using a 30-day month and a 360-day year; and (c) Scheduled Payments are discounted to the last day of the Collection Period prior to the Determination Date; provided, however, that the Discounted Contract Balance of any (i) Defaulted Contract, (ii) Contract with respect to which a prepayment in full has been made, (iii) Disposed Contract, (iv) Contract purchased by the Originator or Servicer, as applicable, pursuant to the Purchase and Contribution

 

 

  

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Agreement or the Servicing Agreement or (v) Contract as to which more than 10% of a Scheduled Payment was not received by the Servicer within thirty-one (31) days after the original due date for such Scheduled Payment, without regard to any Servicer Advance, shall be equal to zero.

 

“Discounted Pool Balance”:  Means, as determined from time to time, the lesser of (x) the aggregate original equipment costs at origination of the Equipment relating to all Contracts and (y) the sum of (a) the Discounted Contract Balances of all Contracts and (b) the discounted Residual Receipts of all Contracts (assuming (1) such Residual Receipts are received six months from the end of the related Contract term, (2) the collection rate for Residual Receipts is equal to 30% of the Issuer’s related Booked Residual on the related residual payment date and (3) a discount rate of 6.25% per annum).

 

In connection with all calculations required to be made pursuant to the Transaction Documents with respect to the determination of the Discounted Pool Balance on any determination date, the discounted residual receipts for each Contract shall be calculated assuming: (a) the residual receipts are discounted on a monthly basis using a 30-day month and a 360-day year and (b) the residual receipts are discounted to the last day of the Collection Period prior to the determination date.

 

“Disposed Contract”:  Means, with respect to any Collection Period, a Contract (other than a Defaulted Contract) for which either (a) all Residual Receipts with respect to such Contract have been received or (b) its initial term has expired and the residual value of the related Equipment has been determined to be zero by the Servicer in accordance with the Servicer’s customary servicing procedures; provided, however, that if four successive months have elapsed without the Servicer receiving a payment towards Residual Receipts with respect to such Contract, such Contract shall be deemed to be a Disposed Contract.  Once a Contract is Disposed Contract, it shall be released to the Servicer.

 

“Due Date”:  With respect to each Contract, each date on which a Scheduled Payment is due thereunder.

 

“Early Termination Contract”:  Any Contract with respect to which the Servicer, in accordance with the Servicing Agreement, has allowed the Obligor to prepay or terminate early for any reason including, but not limited to, trade-in, upgrade, or declaration of obsolescence or surplus status relating to any of the related Equipment.

 

“Electronic Ledger”:  Means the electronic master record of the Contracts.

 

“Eligible Account”:  A segregated trust account or accounts maintained with the corporate trust department of a federal or state-chartered depository institution or trust company whose long-term unsecured debt obligations are rated at least AA- by S & P and at least Aa3 by Moody’s and which has a minimum capital and surplus of not less than $100,000,000.

 

  

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“Eligible Contract”:  Means, as of the applicable Acquisition Date, a Contract that satisfies the representations and warranties set forth in the Purchase and Contribution Agreement.

 

“Eligible Investments”:  Any and all of the following:

 

(a)           direct obligations of, and obligations fully guaranteed by, the United States of America or any agency or instrumentality of the United States of America the obligations of which are backed by the full faith and credit of the United States of America;

 

(b)           (i) demand and time deposits in, certificates of deposit of, banker’s acceptances issued by or federal funds sold by any depository institution or trust company (including the Trustee or its agent acting in their respective commercial capacities) incorporated under the laws of the United States of America or any State thereof and subject to supervision and examination by federal and/or state authorities, provided that, at the time of such investment or contractual commitment providing for such investment, such depository institution or trust company has a short term unsecured debt rating in the highest available rating categories of each of Moody’s, S & P, and Fitch, provided further that each such investment has an original maturity of no more than two hundred seventy (270) days, and (ii) such demand or time deposit or deposits are fully insured by the Federal Deposit Insurance Corporation;

 

(c)           repurchase obligations with a term not to exceed thirty (30) days with respect to any security described in clause (a) above and entered into with a depository institution or trust company (acting as a principal) rated in the highest available short term rating category by each of Moody’s, S & P, and Fitch at the time of such investment; provided that collateral transferred pursuant to such repurchase obligation must be of the type described in clause (a) above and must (i) be valued weekly at current market price plus accrued interest, (ii) pursuant to such valuation, equal, at all times, one hundred five percent (105%) of the cash transferred by the Trustee in exchange for such collateral and (iii) be delivered to the Trustee or, if the Trustee is supplying the collateral, an agent for the Trustee, in such a manner as to accomplish perfection of a security interest in the collateral by possession of certificated securities;

 

(d)           commercial paper having an original maturity of less than two hundred seventy (270) days and issued by any corporation incorporated under the laws of the United States of America or any State thereof which is unaffiliated with any LEAF Party and has a short term unsecured debt rating in the highest available rating category of each of the Moody’s, S & P, and Fitch at the time of such investment;

 

(e)           a guaranteed investment contract rated in the highest available rating category by each of Moody’s, S & P, and Fitch or issued by an insurance company or other corporation having a long term unsecured debt rating in the highest available rating category of each of Moody’s, S & P, and Fitch at the time of such investment; and

 

(f)           money market funds having ratings in the highest available rating categories of each of Moody’s, S & P, and Fitch at the time of such investment (which shall include money market funds for which the Trustee or an Affiliate thereof is an advisor); any such money market

 

  

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funds which provide for demand withdrawals being conclusively deemed to satisfy any maturity requirement for Eligible Investments set forth in the Indenture.

 

The Trustee may purchase from or sell to itself or an affiliate, as principal or agent, the Eligible Investments listed above.  All Eligible Investments shall be made in the name of the Trustee for the benefit of the Secured Parties and no such Eligible Investments shall mature later than the Business Day preceding the next following Payment Date as required under Section 13.02(c) of the Indenture.

 

“Equipment”:  The equipment and other personal property (tangible or intangible) of the type contemplated by the Credit and Collection Policies and that is being financed under a Contract.

 

“Equity Interest”:  The one and only equity membership interest in the Issuer, entitling the owner thereof to one hundred percent (100%) of the capital, profits, losses and distributions in and from the Issuer, and one hundred percent (100%) of voting rights of an equity member.

 

“ERISA”:  The Employee Retirement Income Security Act of 1974, as amended or any successor statute thereto.

 

“Event of Default”:  Has the meaning set forth in Section 6.01 of the Indenture.

 

“Event of Servicing Termination”:  Has the meaning set forth in Section 6.01(a) of the Servicing Agreement.

 

“Exception Report”:  Any report by the Custodian identifying exceptions regarding Contract Assets.

 

“Existing Indebtedness”:  Any indebtedness identified in an Assignment Agreement that is secured in whole or in part by Contract Assets being acquired by the Issuer, and paid off or  otherwise released, as of the related Acquisition Date.

 

“Final Due Date”:  With respect to each Contract, the final Due Date thereunder.

 

“Final Order”:  Means a final order of a court exercising proper jurisdiction in an insolvency proceeding with respect to which the appeal period has expired without an appeal having been filed.

 

“Fiscal Quarter”:  Each quarter of each fiscal year, which shall be the three (3) months ended March 31, June 30, September 30 and December 31, unless the Servicer has otherwise notified the Trustee, the Back-up Servicer and the Control Party in writing prior to a change in its fiscal year.

 

“Fitch”: Means Fitch, Inc. and its successors in interest.

 

“GAAP”:  Generally accepted accounting principles as in effect in the United States as may be in place from time to time, applied on a consistent basis.

 

  

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“Governmental Authority”:  Means any nation or government, any state or other political subdivision thereof, any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and any court or arbitrator having jurisdiction over any LEAF Party or any of its properties.

 

“Grant”:  To grant, bargain, sell, warrant, alienate, remise, release, convey, assign, transfer, mortgage, pledge, create and grant a security interest in and right of set-off against, deposit, set over and confirm.  A Grant in any collateral comprising the Collateral or of any instrument shall include all rights, powers and options (but none of the obligations) of the granting party thereunder, including the immediate and continuing right to claim, collect, receive and receipt for payments in respect of the Contract Assets, or any other payment due thereunder, to give and receive notices and other communications, to make waivers or other agreements, to exercise all rights and options, to bring proceedings in the name of the granting party or otherwise, and generally to do and receive anything which the granting party is or may be entitled to do or receive thereunder or with respect thereto.

 

“Guarantor”:  Means LEAF Financial Corporation.

 

“Guaranty Amounts”:  Any amounts paid by a guarantor (who is an Obligor) of a particular Contract.

 

           “Impairment” shall mean, as of each Payment Date (as calculated immediately prior to the distributions pursuant to Section 13.03(c) of the Indenture), an amount equal to (x) the Outstanding Note Balance of all Classes of Notes minus (y) the sum of (i) the Discounted Pool Balance and (ii) amounts on deposit in the Reserve Account. Impairment with respect to each Class of Notes as of each Payment Date shall be allocated first, to the Class B-2 Notes, in an amount equal to the lesser of the Outstanding Note Balance of the Class B-2 Notes and the Impairment, second, to the Class B-1 Notes, in an amount equal to the lesser of the Outstanding Note Balance of the Class B-1 Notes and the Impairment not yet allocated on such Payment Date and third, to the Class A Notes, in an amount equal to the lesser of the Outstanding Note Balance of the Class A Notes and the Impairment not yet allocated on such Payment Date. For the avoidance of doubt, the allocation of Impairment to a Class of Notes shall be used only for the calculation of Note Current Interest with respect to such Class of Notes and shall not reduce the Outstanding Note Balance of such Class of Notes.

 

“Indenture”:  The Indenture, dated as of August 20, 2010, among the Issuer, the Trustee and the Custodian, and any permitted supplements or amendments thereto.

 

“Independent”:  When used with respect to any specified Person means such a Person, who (a) is in fact independent of the Issuer and the Servicer, (b) does not have any direct financial interest or any material indirect financial interest in the Issuer or the Servicer or in any Affiliate thereof, (c) is not connected with the Issuer or the Servicer as an officer, employee, promoter, underwriter, trustee, partner, director, customer, supplier or person performing similar functions, (d) is not a person controlling or under common control with any such stockholder, customer, supplier or other person, and (e) is not a member of the immediate family of any such stockholder, director, officer, employee, customer, supplier or other person.  Whenever it is herein provided that any Independent Person’s opinion or certificate shall be furnished to the

 

  

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Trustee, such Person shall be identified by an Issuer Order, and such opinion or certificate shall state that the signer has read this definition and that the signer is Independent within the meaning hereof.

 

“Independent Accountants”:  Means any independent certified public accountants of recognized national standing.

 

“Initial Class A Purchaser”:  Means Guggenheim Partners Asset Management, LLC.

 

“Initial Class B Purchasers”:  Means, collectively, the Initial Class B-1 Purchaser and the Initial Class B-2 Purchaser.

 

“Initial Class B-1 Purchaser”:  Means Guggenheim Securities, LLC.

 

“Initial Class B-2 Purchaser”:  Means Guggenheim Securities, LLC.

 

“Initial Payment Date” and “First Payment Date”:  September 20, 2010.

 

“Initial Purchaser”:  Means the Initial Class A Purchaser, the Initial Class B-1 Purchaser or the Initial Class B-2 Purchaser, as applicable.

 

“Initial Purchasers”:  Means, collectively, Initial Class A Purchaser and the Initial Class B Purchasers.

 

“Initial Reserve Deposit” means the initial deposit of a portion of the proceeds of the Class B-1 and Class B-2 Notes on the Closing Date into the Reserve Account, in an aggregate amount equal to $750,000.

 

“Insolvency Event”:  With respect to a specified Person, shall mean either of the following events: (a) a case or proceeding shall have been commenced against such Person seeking a decree or order in respect of such Person (i) under the Bankruptcy Code, as now constituted or hereafter amended or any other applicable federal, state or foreign bankruptcy, insolvency or other similar law, (ii) appointing a custodian, receiver, liquidator, assignee, trustee or sequestrator (or similar official) for such Person or of any substantial part of such Person’s assets, or (iii) ordering the winding-up or liquidation of the affairs of such Person, and such case or proceeding shall remain undismissed or unstayed for sixty (60) days or more or such court shall enter a decree or order granting the relief sought in such case or proceeding; or (b) the commencement by such Person of a voluntary case under the Bankruptcy Code, as now constituted or hereafter amended, or any other applicable federal, state or foreign bankruptcy, insolvency or other similar law, or the consent by such Person to the entry of an order for relief in an involuntary case under any such law, or the consent by such Person to the appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of such Person for any substantial part of such Person’s assets, or the making by such Person of any general assignment for the benefit of creditors, or the failure by such Person generally to pay its debts as such debts become due, or the taking of action by such Person in furtherance of any of the foregoing.

 

 

  

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“Insurance Policy”:  With respect to an item of Equipment and a Contract, any policy of insurance maintained by an Obligor pursuant to such Contract that covers physical damage to the Equipment and general liability (including policies procured by the Servicer on behalf of an Obligor).

 

“Insurance Proceeds”:  With respect to an item of Equipment, any amount received during the related Collection Period pursuant to an Insurance Policy issued with respect to the related Contract, net of any costs of collecting such amounts not otherwise reimbursed.

 

“Insurer”:  Any insurance company or other Person providing any Insurance Policy covering Equipment.

 

“Interest Accrual Period”:  With respect to any Payment Date, with respect to each Class of Notes, the period commencing on and including the immediately preceding Payment Date and ending on and including the day immediately preceding such current Payment Date; provided that, in the case of the first Interest Accrual Period, such Interest Accrual Period shall commence on the Closing Date, and shall end on the day immediately preceding the Initial Payment Date.

 

“Interim Delinquency Ratio”:  Means, with respect to the first three Determination Dates after the Closing Date, the average of the Delinquency Ratios for such Determination Date and each preceding Determination Date which occurred after the Closing Date.

 

“Investment Letter”:  Has the meaning set forth in Section 2.06(e)(ii)(B) of the Indenture.

 

“Issuer”:  LEAF Funding SPE 1, LLC, and its successors and permitted assigns under the Indenture.

 

“Issuer Address”:  LEAF Funding SPE 1, LLC, 2005 Market Street, 15th Floor, Philadelphia, PA 19103, telecopy number:  215-640-6363, Attention:  Miles Herman, or such other address as is notified in writing to the Trustee, Custodian, Back-up Servicer and the Noteholders not less than thirty (30) days prior to the effectiveness of any change thereof.

 

“Issuer Order” and “Issuer Request”:  A written order or request signed by an authorized officer of the Issuer and delivered to the Trustee.

 

“Joinder to Lockbox Intercreditor Agreement”:  The joinder agreement to the Lockbox Intercreditor Agreement pursuant to which each of the Trustee and the Issuer becomes a party to the Lockbox Intercreditor Agreement.

 

“LEAF Contract Number”:  The number assigned to a Contract by the Servicer, which number is used to identify Contracts and the related Contract Assets for all purposes under the Transaction Documents and the Lockbox Intercreditor Agreement and for all purposes by the Servicer and its Affiliates, including on the Custodian Certificate and any Officer’s Certificate delivered by the Servicer or the Issuer, the Contract Schedule, the Monthly Servicing Report and the Contract Files.

 

“LEAF Party”:  Means each of the Issuer, the Originator, and the Servicer.

 

  

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“Lien”:  Any security interest, lien, charge, pledge, equity or encumbrance of any kind other than Permitted Liens.

 

“Lien Certificate”:  With respect to Motorized Titled Equipment, (i) if such Motorized Titled Equipment is registered in Florida, (x) to the extent the related Contract has been originated by the Originator or the Servicer, an original certificate of title or (y) to the extent the related Receivable has been originated by a Person other than the Originator or the Servicer, (A) an original certificate of title or (B) if the original certificate of title has been sent to the registered owner of such Motorized Titled Equipment, an original computer confirmation of lien, (ii) if such Motorized Titled Equipment is registered in Kansas, a true copy of the application for certificate of  title and registration, (iii) if such Motorized Titled Equipment is registered in Kentucky, an original notice of lien, (iv) if such Motorized Titled Equipment is registered in Maryland, an original notice of security interest filing, (v) if such Motorized Titled Equipment is registered in Minnesota, an original lien card, (vi) if such Motorized Titled Equipment is registered in Missouri, an original notice of recorded lien, (vii) if such Motorized Titled Equipment is registered in Montana, a true copy of the application for certificate of title, (viii) if such Motorized Titled Equipment is registered in New York, an original notice of lien, (ix) if such Motorized Titled Equipment is registered in Oklahoma, an original, file-stamped lien entry form, (x) if such Motorized Titled Equipment is registered in Wisconsin, an original lien confirmation card or (xi) if such Motorized Titled Equipment is registered in any other state, an original certificate of title, in each case issued by the Registrar of Titles of the applicable State listing the lienholder of record with respect to such Motorized Titled Equipment (it being understood and agreed that solely for purposes of clauses (i) through (x) above (other than clauses (i)(x) and (i)(y)(A)), the “original” of any document required thereby shall consist of whatever documentation has been issued by the Registrar of Titles of the related State to the lienholder).

 

“Lienholder Nominee Agreement”:  Each Vehicle Lienholder Nominee Agreement between the Originator or the Servicer, as lienholder, the Issuer and the Trustee that may be entered into from time to time, as such agreement may from time to time be amended, supplemented or otherwise modified in accordance with the terms thereof.

 

“Limited Guaranty”:  The Limited Guaranty, dated as of August 20, 2010, made by the Guarantor in favor of the Class A Noteholders.

 

“Lockbox”:  The post office or other lockbox to which Obligors have been directed to remit payments.

 

“Lockbox Account”:  The deposit account (account number 153910088597) at the Lockbox Bank in the name of “U.S. Bank NA as Securities Intermediary for LEAF Financial and various lenders” or, if the Lockbox Intercreditor Agreement is terminated or LEAF Financial Corporation is no longer the Servicer, such other Lockbox Account as is established by the then Servicer with the consent of the Control Party.

 

“Lockbox Bank”:  Means U.S. Bank National Association and its successor in interest or any successor approved in accordance with the Lockbox Intercreditor Agreement.

 

 

  

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“Lockbox Intercreditor Agreement”:  The Amended and Restated Lockbox Intercreditor Agreement, dated as of April 18, 2005, among the Lockbox Bank, the Servicer, certain other parties thereto and subsequent parties joined pursuant to the terms thereof (including the Issuer and the Trustee), as amended, supplemented or otherwise modified from time to time.

 

 “Majority Holders”:  Means (i) if any Class A Notes are outstanding, the Holders holding Notes evidencing more than fifty percent (50%) of the Outstanding Note Balance of the Class A Notes, (ii) if no Class A Notes are outstanding, the Holders holding Notes evidencing more than fifty percent (50%) of the Outstanding Note Balance of the Class B-1 Notes or (iii) if no Class A Notes and Class B-1 Notes are outstanding, the Holders holding Notes evidencing more than fifty percent (50%) of the Outstanding Note Balance of the Class B-2 Notes.

 

“Mandatory Redemption”:  Is as defined in Section 11.01 of the Indenture.

 

“Mandatory Redemption Event”: Means the closing of a credit facility in an amount equal to at least $20,000,000 by LEAF Financial Corporation.

 

“Monthly Servicing Report”:  The report prepared by the Servicer pursuant to Section 13.09 of the Indenture and Section 4.01 of the Servicing Agreement, substantially in the form of Exhibit A to the Servicing Agreement.

 

“Moody’s”:  Moody’s Investors Service, Inc. and its successors in interest.

 

“Motorized Titled Equipment”:  Equipment consisting of motorized personal property that requires titling under State motor vehicle statutes.

 

“Noteholder” and “Holder”:  The Person in whose name a Note is registered in the Note Register.

 

“Note Current Interest”:  Means interest accrued during each Interest Accrual Period and payable to the Noteholders of a Class on the related Payment Date; provided however, that with respect to each Class of Notes and on each Payment Date, interest shall be deemed not to have accrued during the previous Interest Accrual Period on an amount equal to the Impairment of such Class of Notes (such interest that is deemed not to have accrued, “Deferred Interest”). Notwithstanding the foregoing, if, on any subsequent Payment Date and with respect to each Class of Notes, no Impairment is allocated to such Class of Notes, all Deferred Interest for such Class of Notes shall be deemed to have accrued during the immediately preceding Interest Accrual Period and be payable on such Payment Date as Note Current Interest.

 

“Note Interest”:  Means, with respect to a Class of Notes and any Payment Date, the sum of the Note Current Interest and any unpaid, overdue interest, if any, for such Class.

 

“Note Purchase Agreement”:  Means the Note Purchase Agreement, dated August 20, 2010, among the Originator, the Issuer, the Initial Class A Purchaser and the Initial Class B Note Purchasers.

 

“Note Rate”:  Means for the Class A Notes, 6.75% per annum, and for the Class B Notes, 10.00% per annum; provided, however, that upon the occurrence and during the continuance of

 

  

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any Event of Default, “Note Rate” shall mean 20.00% per annum with respect to both the Class A Notes and the Class B Notes.

 

“Note Register” and “Note Registrar”:  Have the respective meanings set forth in Section 2.06 of the Indenture.

 

“Notes”:  Any one or all of the Outstanding Equipment Contract Backed Notes, Series 2010-4, issued by LEAF Funding SPE 1, LLC pursuant to the Indenture, in the aggregate maximum principal amount of $21,500,000, of all Classes, or as the context may require, a specific Class.

 

“Obligor”:  The borrower or lessee under each Contract, including any guarantor of such Contract (other than any guarantor who is the vendor of the Equipment the subject of such Contract or the Person who originated such Contract), and their respective successors and assigns.

 

“Officer’s Certificate”:  A certificate signed by the Chairman of the Board, the President, a Vice President, the Treasurer, the Controller, an Assistant Controller, the Secretary, or any Assistant Secretary of the Person on whose behalf the certificate is delivered, and delivered to the Trustee or an Initial Purchaser, as the case may be.

 

“One-Time Successor Servicer Fee”:  Has the meaning set forth in Section 7.06 of the Servicing Agreement.

 

“Opinion of Counsel”:  A written opinion of counsel who may, except as otherwise expressly provided in the Indenture or required by the Control Party, be inside (but only with respect to internal corporate matters) or outside counsel for the Servicer, the Originator or the Issuer, as applicable, and who shall be reasonably satisfactory to the Control Party and which opinion shall be addressed to the Noteholders and/or the Trustee (as required by the applicable terms of the Transaction Documents) and be in form and substance reasonably satisfactory to the Control Party and the Trustee.

 

“Optional Redemption”:  Is as defined in Section 11.01 of the Indenture.

 

“Originator”:  LEAF Funding, Inc., a Delaware corporation.

 

“Outstanding”:  With respect to Notes, as of any date of determination, all Notes theretofore authenticated and delivered under the Indenture except:

 

(a)           Notes previously canceled by the Note Registrar or delivered to the Note Registrar for cancellation;

 

(b)           Notes for whose payment money in the necessary amount has been theretofore irrevocably deposited with the Trustee or any Paying Agent (other than the Issuer) in trust for the Holders of such Notes (provided, however, that if such Notes are to be redeemed, notice of such redemption has been duly given pursuant to the Indenture or any provision therefor, satisfactory to the Trustee, has been made, in accordance with Article XI of the Indenture); and

 

  

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(c)           Notes in exchange for or in lieu of which other Notes have been authenticated and delivered pursuant to the Indenture, unless proof satisfactory to the Trustee is presented that any such Notes are held by a protected purchaser; provided that, for purposes of determining whether the Noteholders of the requisite principal amount of the Outstanding Notes have given any request, demand, authorization, direction, notice, consent or waiver hereunder, Notes beneficially owned, directly or indirectly, by the Issuer, any other obligor upon the Notes, the Servicer, any Affiliate of the Issuer or of the Servicer or such other obligor shall be disregarded and deemed not to be outstanding; provided further that, in determining whether the Trustee will be protected in relying on any such request, demand, authorization, direction, notice, consent or waiver, only such Notes as a Responsible Officer of the Trustee knows to be so owned shall be so disregarded.  For purposes of this definition, beneficial ownership shall be determined in accordance with Rule 13d-3 of the Securities and Exchange Commission, promulgated pursuant to the Securities Exchange Act of 1934, as amended.

 

“Outstanding Note Balance”:  With respect to any Class of Notes (including, for purposes of accruing interest thereon, any Notes called for redemption but not yet redeemed), the aggregate purchase price received by the Issuer for such Class of Notes pursuant to Section 3(c) of the Note Purchase Agreement less the sum of all amounts actually distributed in respect of principal for such Class of Notes as of such date.

 

 “Overconcentration Test”:  Solely in the event that the sum of Discounted Contract Balance of all Contracts (measured as of their respective Cut-Off Dates) exceeds $5,000,000, means a test that is satisfied with respect to the Purchased Contracts to be purchased by the Issuer on an Acquisition Date if each of the following statements would be true immediately after the purchase by the Issuer of such Purchased Contracts:

	
  

	
(1)

	
The average Discounted Contract Balance of all Contracts (measured as of their respective Cut-Off Dates) does not exceed $25,000.

	
  

	
(2)

	
The sum of the Discounted Contract Balances of all Contracts (measured as of their respective Cut-Off Dates) related to any one Obligor does not exceed $500,000.

	
  

	
(3)

	
The sum of the Discounted Contract Balances (measured as of their respective Cut-Off Dates) of all Contracts arising from the largest ten (10) Obligors in the aggregate does not exceed 18% of the aggregate Discounted Contract Balances (measured as of the Cut-Off Date for each Contract).

	
  

	
(4)

	
The weighted average original term of all Contracts (measured as of their respective Cut-Off Dates) does not exceed fifty-seven (57) months.

	
  

	
(5)

	
The sum of the Discounted Contract Balances of all Contracts (measured as of their respective Cut-Off Dates) with respect to which the related Subject Equipment is located in New York does not exceed 20.00% of the aggregate Discounted Contract Balances (measured as of the Cut-Off Date for each Contract).

	
  

	
(6)

	
The sum of the Discounted Contract Balances of all Contracts (measured as of their respective Cut-Off Dates) with respect to which the related Subject Equipment is located

 

 

  

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in California does not exceed 9.00% of the aggregate Discounted Contract Balances (measured as of the Cut-Off Date for each Contract).

	
  

	
(7)

	
The sum of the Discounted Contract Balances of all Contracts (measured as of their respective Cut-Off Dates) with respect to which the related Subject Equipment is located in New Jersey does not exceed 12.00% of the aggregate Discounted Contract Balances (measured as of the Cut-Off Date for each Contract).

	
  

	
(8)

	
The sum of the Discounted Contract Balances of all Contracts (measured as of their respective Cut-Off Dates) with respect to which the Scheduled Payments are not due on a monthly basis does not exceed 4.00% of the aggregate Discounted Contract Balances (measured as of the Cut-Off Date for each Contract).

	
  

	
(9)

	
The weighted average Fair Isaac’s Small Business Scoring Service credit score of the Obligor (measured as of their respective Cut-Off Dates) on all Contracts is at least 200.

	
       (10)

	
The sum of the Discounted Contract Balances of all Contracts (measured as of their respective Cut-Off Dates) with respect to which the Fair Isaac’s Small Business Scoring Service credit score of the Obligor (measured as of their respective Cut-Off Dates) is less than 176 does not exceed 2.75% of the aggregate Discounted Contract Balances (measured as of the Cut-Off Date for each Contract).

	
       (11)

	
The sum of the Discounted Contract Balances of all Contracts (measured as of their respective Cut-Off Dates) with respect to which the Subject Equipment is copier equipment does not exceed 85.00% of the aggregate Discounted Contract Balances (measured as of the Cut-Off Date for each Contract).

“Ownership Interest”:  Means, with respect to any Note, any ownership interest in such Note, including any interest in such Note as the Noteholder thereof and any other interest therein, whether direct or indirect, legal or beneficial.

 

“Paying Agent”:  The Trustee (or any other Person that meets the eligibility standards for the Trustee set forth in Section 7.08 of the Indenture and that is authorized pursuant to Section 7.15 of the Indenture to pay the principal of or interest on any Notes on behalf of the Issuer).

 

“Payment Date”:  The first Payment Date will be September 20, 2010, and each subsequent Payment Date will be the 20th day of each month, or if such date is not a Business Day, the business day immediately following such 20th day.

 

“Permitted Liens”:  Means (i) liens created under the Indenture in favor of the Trustee for the benefit of the Secured Parties, (ii) Liens created under the Assignment Agreements in favor of the Issuer, (iii) Liens for taxes not yet due and payable and for which adequate reserves are maintained in accordance with GAAP, (iv) mechanics’ liens filed on any Equipment that attach after the applicable Cut-Off Date and are not yet due and payable and if unpaid would not materially impair the value of such Equipment, (v) mechanics’ liens, property tax liens and other liens arising on the Equipment through an Obligor to the extent the Servicer has determined in good faith in accordance with its Credit and Collection Policies to not make an advance to

 

 

  

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discharge, and (vi) any Obligor’s right to quiet enjoyment and possession of any Equipment under the applicable Contract.

 

“Person”:  Any individual, corporation, limited liability company, partnership, association, joint-stock company, trust (including any beneficiary thereof), unincorporated organization or other entity or government or any agency or political subdivision thereof.

 

“Plan”:  An “employee benefit plan,” as defined in Section 3(3) of ERISA or a “plan” within the meaning of Section 4975(e)(1) of the Code.

 

“Prefunding Account”:  The trust account created and maintained pursuant to Section 13.02 of the Indenture; provided, that in no event shall the Prefunding Account be other than an Eligible Account.

 

“Prepayment”:  With respect to a Collection Period and a Contract (except a Defaulted Contract), (i) the payment by the related Obligor of all remaining Scheduled Payments due on such Contract or (ii) as defined in the Credit and Collection Policies, so long as such amount is designated by the Obligor as a prepayment and the Servicer has consented to such prepayment. Advance Payments and Residual Receipts are not "Prepayments."

 

“Prepayment Amount”:  In the event that an Obligor requests an upgrade or trade-in of Equipment under a Contract and the Servicer has agreed to such request, the payment by the Servicer of an amount equal to the sum, without duplication, of (i) the Discounted Contract Balance as of the date of reconveyance, (ii) one month’s interest thereon at the Discount Rate, (iii) the discounted portion of the Booked Residual for such Contract and (iv) any Scheduled Payments due and outstanding under such Contract that have not been paid by the Obligor, all in connection with the removal of such Equipment and the related Contract from the Collateral.

 

“Proceeding”:  Any suit in equity, action at law or other judicial or administrative proceeding.

 

“Purchase and Contribution Agreement”:  Means the Purchase and Contribution Agreement, dated as of August 20, 2010, between the Originator, as seller, and the Issuer, as purchaser.

 

“Purchase Price”:  Means, with respect to Contracts sold pursuant to any Assignment Agreement, the payment amount identified in Section 2 of such Assignment Agreement.

 

“Purchased Contracts”: means those Contracts purchased by the Issuer, and pledged to the Trustee, with the amounts on deposit in the Prefunding Account.

 

“QIB”:  Means a “qualified institutional buyer” within the meaning of Rule 144A.

 

“Receivable”:  As of any date of determination, all Scheduled Payments and all other income, payments and proceeds of the Contracts (including Guaranty Amounts, Servicing Charges, Insurance Proceeds and other Recoveries or Residual Receipts) that are (1) collected on or after the applicable Cut-Off Date or (2) Advance Payments collected by the Servicer before the applicable Cut-Off Date but due in Collection Periods commencing on and after the

 

  

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applicable Cut-Off Date, and any Recoveries thereon; provided that, from and after the date, if any, on which the related Contract Assets are repurchased in accordance with Section 6.1(a) or Section 6.1(b) of the Purchase and Contribution Agreement, substituted pursuant to Section 3.04 of the Servicing Agreement or repurchased pursuant to Section 3.09 of the Servicing Agreement, such Receivable shall no longer constitute a “Receivable” for purposes of the Transaction Documents.

 

“Record Date”:  With respect to each Payment Date, at the close of business on the Business Day immediately preceding such Payment Date.

 

“Recoveries”:  For any Collection Period occurring after the date on which any Contract becomes a Defaulted Contract, all amounts received in respect of a Defaulted Contract, including, without limitation, amounts received in connection with the sale or other disposition of the related Equipment, Insurance Proceeds with respect to the related Equipment, legal judgments and settlements, collection agency efforts, or any other payments made by or on behalf of the related Obligor, net of contingency expenses, in connection with such Defaulted Contract; provided, that in no event may Recoveries in respect of a Defaulted Contract be less than zero.

 

“Redemption Date”:  The Business Day elected by the Issuer pursuant to Section 11.01(a) of the Indenture for an Optional Redemption, the Business Day elected by the Issuer pursuant to Section 11.01(b) of the Indenture for a Mandatory Redemption, or any other Business Day mutually determined by the Issuer, the Noteholders and the Trustee.

 

“Redemption Price”:  With respect to any Note as of the Redemption Date, the Outstanding Note Balance of the Notes, together with interest accrued thereon to the Redemption Date.

 

“Registered Holder”:  The Person whose name appears on the Note Register on the applicable Record Date.

 

“Registrar of Titles”:  With respect to any State, the governmental agency or body responsible for the registration of, and the issuance of certificates of title relating to, motor vehicles and liens thereon.

 

“Related Security”:  With respect to any Contract, all liens, security interests, guarantees, indemnities, warranties, letters of credit and other agreements securing or supporting payment on any Receivable or relating to any Equipment, including, with respect to any Receivables, any “supporting obligations” (as defined in 9-102 of the UCC) therefor, and all rights with respect to any vendors, dealers or manufacturers of the Equipment or other originators, including those arising under private label leases, all rights under any purchase or vendor agreements relating thereto, and all rights of the Originator and its assignees with respect to the Contracts and related Equipment under the Purchase and Contribution Agreement.

 

“Release Agreement”:  The notice regarding prepayment of Existing Indebtedness and release of related collateral, substantially in the form of Exhibit D attached to the Indenture.

 

  

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“Reporting Date”:  The 16th day of each month or, if such day is not a Business Day, the next succeeding Business Day.

 

“Reserve Account”:  The trust account created and maintained pursuant to Section 13.02 of the Indenture; provided, that in no event shall the Reserve Account be other than an Eligible Account.

 

“Residual Receipts”:  Means, without duplication, (a) all proceeds of the sale of Equipment received by the Servicer at the end of the related Contract, whether to the related Obligor or to a third party, (b) any amounts collected by the Servicer as judgments against an Obligor or others related to the failure of such Obligor to pay any required amounts relating to the Booked Residual under the related Contract or to return the Equipment, (c) all proceeds from renewal payments made for the continued use of the Equipment after the original date of termination of the related Contract plus (d) any amounts not otherwise described above which are received by the Servicer and applied against the Booked Residual of such Contract in accordance with the Servicer’s servicing standards, in each case as reduced by any reasonably incurred out-of-pocket expenses incurred by the Servicer in enforcing such Contract or in liquidating such Equipment; provided, that in no event may Residual Receipts in respect of a Contract or any Equipment be less than zero.

 

“Responsible Officer”:  (a) When used with respect to the Trustee or the Back-up Servicer, any officer of the Trustee or the Back-up Servicer, including any Vice President, Assistant Vice President, any Secretary or Assistant Secretary, any trust officer or any other officer of the Trustee or the Back-up Servicer customarily performing functions similar to those performed by any of the above designated officers, and also, with respect to a particular matter, any other officer, to whom such matter is referred because of such officer’s knowledge of and familiarity with the particular subject and, in each case, having direct responsibility for the administration of the Indenture; and (b) when used with respect to the Servicer (if the Servicer is LEAF Financial Corporation or any of its Affiliates) or the Issuer, any of the president, chief financial officer, chief operating officer, chief accounting officer, treasurer or any Vice-President.

 

“Rule 144A”:  Means the rule designated as “Rule 144A” promulgated by the United States Securities and Exchange Commission under the Securities Act.

 

 “Rule 144A Information”:  Has the meaning set forth in Section 12.02(w) of the Indenture.

 

“S & P”:  Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business, and its successors in interest.

 

“Sale”:  Has the meaning set forth in Section 6.18 of the Indenture.

 

“Scheduled Payment”:  With respect to a Payment Date and a Contract, the periodic scheduled payment of rent or other payments on a monthly, quarterly, semi-annual or annual basis, in arrears or in advance as set forth in the Contract, and due from the Obligor in the related Collection Period, exclusive of any Servicing Charges and Residual Receipts (which Residual

 

 

  

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Receipts, for the avoidance of doubt, include all payments due after the Final Due Date for a Contract).

 

“Secured Parties”:  Means, collectively, the Noteholders.

 

“Securities Account Control Agreement”: Means the Securities Account Control Agreement, dated as of August 20, 2010, by and between the Issuer and the Trustee, as both securities intermediary and trustee.

 

“Securities Act”: The United States Securities Act of 1933, as amended.

 

“Securities Intermediary”: Means U.S. Bank National Association in its capacity as Securities Intermediary pursuant to the Securities Account Control Agreement.

 

“Security Deposit”:  Any amount paid to the Servicer or the Originator and its assigns by an Obligor as a security deposit which has not previously been refunded to such Obligor or applied towards such Obligor’s obligations under such Contract.

 

“Seller”:  LEAF Funding, Inc., a Delaware corporation.

 

“Servicer”:  The servicer of the Contract Assets, which shall be LEAF Financial Corporation until such time, if any, as the Back-up Servicer or other successor Person shall have become the “Servicer” pursuant to the applicable provisions of the Servicing Agreement, whereupon “Servicer” shall mean such successor Person.

 

“Servicer Advance”:  Means, in the event that any Obligor fails to remit the full Scheduled Payment due from it with respect to a Collection Period by the Determination Date related to such Collection Period, an advance by the Servicer pursuant to Section 3.04 of the Servicing Agreement from its own funds prior to the related Payment Date of an amount equal to such unpaid Scheduled Payment.

 

“Servicer Fee”:  The fee payable on each Payment Date to the Servicer in consideration for the Servicer’s performance of its duties under the Servicing Agreement during the related Collection Period, in an amount equal to the product of (a) one-twelfth (1/12) of the Servicer Fee Rate and (b) the aggregate Discounted Pool Balance as of the Payment Date occurring immediately prior to the related Collection Period (or, in the case of the Initial Payment Date, the Initial Cut–Off Date). If the Back-up Servicer shall become the successor Servicer, the Servicer Fee shall be subject to a minimum of $6,000 per month.

 

“Servicer Fee Rate”:  2.00% per annum.

 

“Servicer Financial Statements”:  The financial statements described in Section 4.02(i) of the Servicing Agreement.

 

“Servicer Termination Notice”:  The notice described in Section 6.01 of the Servicing Agreement.

 

  

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 “Servicing Agreement”:  The Servicing Agreement, dated as of August 20, 2010, among the Servicer, the Issuer, the Trustee and the Back-up Servicer, as amended, supplemented or otherwise modified from time to time.

 

“Servicing Charges”:  Means the sum of (a) any late payment charges paid by an Obligor on a Contract after application of any such charges to amounts then due under such Contract and (b) any other incidental charges, or fees received from an Obligor, including (i) tax payments, insurance premium payments or reimbursements, late charges, documentation fees, extension fees, administrative charges and maintenance premiums and other pass-through items and (ii) prepayment charges paid by an Obligor in connection with a Prepayment.

 

“Servicing Documents”:  Means all servicing records, servicing agreements, servicing rights, pledge agreements and any other collateral pledged or otherwise relating to the Contracts, together with all files, documents, instruments, certificates, correspondence, accounting books and records relating thereto or to the Contract Files.

 

“Servicing Officers”:  Those officers of the Servicer involved in, or responsible for, the administration and servicing of the Contract Assets, as identified on a certificate delivered to the Trustee in accordance with Section 4.01(a)(ix) of the Indenture, as the same may be updated from time to time.

 

“State”:  Any state of the United States of America and, in addition, the District of Columbia.

 

“Stated Maturity Date”:  If the Notes have not already been paid in full prior to such date, February 20, 2011.

 

“Subject Equipment”:  Means Equipment subject to a certain Contract.

 

“Substitute Contract”:  A Contract substituted by the Servicer in replacement of one or more Contracts of the Issuer pursuant to the terms and provisions of the Transaction Documents.

 

“Substitution and Repurchase Amounts”:  Means the sum of (i) the aggregate Discounted Contract Balance of Substitute Contracts (as measured on their respective Acquisition Dates) and (ii) the aggregate Discounted Contract Balance of those Contracts (as measured on their respective dates of repurchase), in each case either substituted for or repurchased by LEAF Financial Corporation (as initial Servicer) or repurchased by the Originator, but excluding Contracts repurchased pursuant to Warranty Events.

 

“Tax Lien”:  A lien arising under Section 6321 of the Code.

 

“Three-Month Rolling Average Delinquency Ratio”:  Means, with respect to any Determination Date commencing with the fourth Determination Date after the Closing Date, the average of the Delinquency Ratios for such Determination Date and the two preceding Determination Dates.

 

“Transaction Documents”:  The Indenture, the Lockbox Intercreditor Agreement, each Assignment Agreement, the Note Purchase Agreement, the Servicing Agreement, the Purchase

 

  

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and Contribution Agreement, the Notes, the Joinder to Lockbox Intercreditor Agreement, any Lienholder Nominee Agreement, the Securities Account Control Agreement and each other document and/or instrument executed pursuant thereto or in connection therewith.

 

“Transfer Certificate”:  Has the meaning set forth in Section 3.01(a) of the Indenture.

 

“Transfer Taxes”:  Means any tax, fee or other governmental charge payable to any federal, state or local government in connection with the sale of the Contract Assets to the Issuer pursuant to the Assignment Agreements and the pledge of the Contract Assets by the Issuer to the Trustee pursuant to the Indenture.

 

“Transition Costs”:  Means any documented fees and expenses reasonably incurred by a successor Servicer, the Back-up Servicer or the Trustee in connection with a transfer of servicing under the Servicing Agreement, as provided in the Indenture and the Servicing Agreement; provided that the total amount of Transition Costs payable to all such Persons shall not exceed $150,000 in the aggregate.

 

“Trust Accounts”:  Has the meaning set forth in Section 13.02(a) of the Indenture.

 

“Trustee”:  The trustee under the Indenture which, initially, shall be U.S. Bank National Association until such time, if any, as a successor Person shall have become the Trustee pursuant to the applicable provisions of the Indenture, whereupon “Trustee” shall mean such successor Person.

 

“Trustee Fee”:  The monthly fees payable on each Payment Date to the Trustee in consideration for the Trustee’s performance of its duties hereunder, as set forth in the Trustee Fee Schedule.

 

“Trustee Fee Schedule”:  That certain “Schedule of Fees for Services Rendered as Trustee, Paying Agent and Registrar for $21,500,000 (Approximate) LEAF Funding SPE 1, LLC, Equipment Contract Backed Notes, 2010-4”, dated as of August 27, 2010.

 

“UCC”:  The Uniform Commercial Code as then in effect in the State of New York, or where the context otherwise requires, the jurisdiction the law of which governs the perfection or priority of any applicable security interest.

 

“United States”:  The United States of America and its territories.

 

“U.S. Person”:  Means (other than for tax purposes) (i) any natural person resident in the United States, (ii) any partnership or corporation organized or incorporated under the laws of the United States, (iii) any estate of which an executor or administrator is a U.S. Person (other than an estate governed by foreign law and of which at least one executor or administrator is a non-U.S. Person who has sole or shared investment discretion with respect to its assets), (iv) any trust of which any trustee is a U.S. Person (other than a trust of which at least one trustee is a non-U.S. Person who has sole or shared investment discretion with respect to its assets and no beneficiary of the trust (and no settlor if the trust is revocable) is a U.S. Person), (v) any agency or branch of a foreign entity located in the United States, (vi) any non-discretionary or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or

 

  

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account of a U.S. Person, (vii) any discretionary or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated or (if an individual) resident in the United States (other than such an account held for the benefit or account of a non-U.S. Person), or (viii) any partnership or corporation organized or incorporated under the laws of a foreign jurisdiction and formed by a U.S. Person principally for the purpose of investing in securities not registered under the Securities Act (unless it is organized or incorporated, and owned, by accredited investors within the meaning of Rule 501(a) under the Securities Act who are not natural persons, estates or trusts); provided that, the term “U.S. Person” shall not include (A) a branch or agency of a U.S. Person that is located and operating outside the United States for valid business purposes as a locally regulated branch or agency engaged in the banking or insurance business, (B) any employee benefit plan established and administered in accordance with the law, customary practices and documentation of a foreign country, and (C) the international organizations set forth in Section 902(k)(2)(vi) of Regulation S under the Securities Act and any other similar international organizations, and their agencies, affiliates and pension plans.

 

“Vendor”:  Any Equipment manufacturer, distributor, dealer or supplier with whom the Servicer or Originator has a vendor program in effect pursuant to which the Servicer or Originator acquires or otherwise originates Contracts used to finance equipment manufactured and/or distributed by such vendor and leased or otherwise financed by Obligors under such Contracts.

 

“Verification Date”:  The third Business Day after each Reporting Date, by which time the Back-up Servicer must verify the information contained in the Monthly Servicing Report delivered on such Reporting Date.

 

“Warranty Event”:  With respect to any Contract, (a) any breach of Section 4.1(a) of the Purchase and Contribution Agreement or clauses (3) or (4) of any Assignment Agreement that gives rise to a repurchase obligation under Section 6.1(a) of the Purchase and Contribution Agreement, any breach of Section 2.02 of the Servicing Agreement that gives rise to a repurchase obligation under Section 3.09 of the Servicing Agreement, or (c) the circumstances described in Section 4.04(a) of the Indenture.

 

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