Document:

ENTG-12.31.2013-EX10.1

EXHIBIT 10.1

MEMBRANE MANUFACTURE AND SUPPLY TRANSITION AGREEMENT

This Membrane Manufacture and Supply Transition Agreement (this “Agreement”) is entered into effective as of November 22, 2013 (the “Effective Date”), between EMD Millipore Corporation (“EMD Millipore”), a Massachusetts corporation, with its principal place of business at 290 Concord Road, Billerica, MA 01821, and Entegris, Inc. (“Entegris”), a Delaware corporation, with its principal place of business at 129 Concord Road, Billerica, MA 01821.

RECITALS

1.    The Parties entered into a Fourth Amended and Restated Membrane Manufacture and Supply Agreement, dated as of January 13, 2011, (the “Fourth Agreement”) which, among other things, provided for the continued manufacture of certain ultrahigh molecular weight polyethylene membranes at the Premises that are located in a portion of EMD Millipore’s Building “C” located at 80 Ashby Road, Bedford, MA by Entegris for use and incorporation into Entegris products and for the continued supply of such membranes for use and incorporation into products of EMD Millipore.

2.    The Fourth Agreement addressed Entegris’ preliminary plans to move its operations out of EMD Millipore’s facility in an orderly manner.  Since the date of the Fourth Agreement:  (i) Entegris has purchased and commenced renovation and facilitization of the Crosby Drive Plant; (ii) a significant increase in the demand for such membranes has occurred and, related thereto, severe capacity constraints have been encountered in the manufacturing process for such membranes as conducted on the Premises, all of which require the Parties to adjust the transition arrangements included in the Fourth Agreement and to add enhanced provisions to effect a smooth transition of the manufacture and supply of such membranes without disruption to the business relationship between them.

3.    Accordingly, the Parties wish to cancel and replace the Fourth Agreement as of the Effective Date of this Agreement in order to implement revised provisions relating to:  (i) the occupancy of the Premises and the use of the Equipment by Entegris to manufacture Flat Sheet UPE Membrane for incorporation into Entegris Products and for the supply to EMD Millipore of EMD Millipore Flat Sheet UPE Membrane for incorporation into EMD Millipore products until the Manufacturing Transfer is complete; (ii) the qualification of Flat Sheet UPE Membrane manufactured at the Crosby Drive Plant to be EMD Millipore Flat Sheet UPE Membrane for supply to EMD Millipore and the subsequent transfer of the manufacturing of Flat Sheet UPE Membrane from the Premises to the Crosby Drive Plant; and (iii) the closure of the manufacturing of Flat Sheet UPE Membrane at the Premises and the vacating of the Premises by Entegris in accordance with the Terms of this Agreement.

NOW, THEREFORE, in consideration of the foregoing and of the covenants and agreements set forth below, the parties hereto agree as follows:

1.    Definitions
The following terms shall have the meanings assigned to them below whenever they are used in this Agreement or any Exhibit or Attachment hereto.  Terms defined elsewhere in this Agreement shall have the meaning ascribed thereto at the location of their definition.  Except where the context otherwise requires, words imparting the singular shall include the plural and vice versa, words denoting any gender shall include all genders and words denoting persons shall include bodies corporate and vice versa.
1.1.     “Ashby Rd. Plant” means the manufacturing facility owned by EMD Millipore located at 80 Ashby Road, Bedford, MA in which the Premises are located.
1.2.    “Crosby Drive Plant” means the manufacturing facility owned and being renovated and facilitized by Entegris located at 9 Crosby Drive, Bedford, MA. 

1.3.    “Crosby Membrane” is defined in Section 6.3 below.
1.4.     “EMD Millipore Equipment” means the Equipment located on the Premises and listed on Attachment 1 hereto which is currently used to manufacture Flat Sheet UPE Membrane, all right title and interest to which is solely owned by EMD Millipore.
1.5.    “EMD Millipore Field of Use” means:  (i) the Biopharm Industry including pharmaceutical/biotechnology and genetic engineering companies as well as manufacturers of cosmetics medical devices, diagnostic products and clinical analytical products; (ii) the Lab & Life Science Research Industry including government, university and private research and testing analytical laboratories for proteomic, genomic, microbiological and similar research and analysis as well as for environmental research and analysis; and (iii) the Food & Beverage Industry including companies that manufacture or process foods and beverages including dairy products, beer, wine, juice and soft drink manufacturers and bottled water companies.
1.6.    “EMD Millipore Flat Sheet UPE Membranes” means those five types of Flat Sheet UPE Membranes listed on Exhibit A under the heading “1.  EMD Millipore Flat Sheet UPE Membranes” (whether manufactured at the Ashby Rd. Plant or the Crosby Drive Plant) to be sold to EMD Millipore pursuant to Section 5 below.
1.7.    “Entegris Equipment” means the Equipment located on the Premises listed on Attachment 2 hereto which is currently used by Entegris to manufacture Flat Sheet UPE Membrane, all right title and interest to which is solely owned by Entegris.
1.8.    “Equipment” means the EMD Millipore Equipment and the Entegris Equipment, collectively.
1.9.    “Flat Sheet UPE Membranes” means the microporous membranes produced from an ultrahigh molecular weight polyethylene material by a melt cast process in rollstock form of typically less than 300 microns in sheet thickness listed on Exhibit A to this Agreement including those designated on Exhibit A as “EMD Millipore Flat Sheet UPE Membranes” and “Entegris Flat Sheet UPE Membranes” all as heretofore produced at the Premises pursuant to the Fourth Agreement immediately prior to the Effective Date and as may be developed or refined thereafter. 
1.10.    “Fourth Agreement” is defined in Recital 1 above. 
1.11.    “Lease Terms” means the terms upon which the Premises are leased to Entegris as provided in Section 2 hereof and as set forth in Exhibit B to this Agreement.
1.12.    “Machines” is defined in Section 4.5 hereof.
1.13.    “Machine Hourly Rates” is defined in Section 4.5 hereof.
1.14.    “Manufacturing Transfer” is defined in Section 6.1 hereof.
1.15.    “Parties” means Entegris and EMD Millipore, collectively; “Party” means either Entegris or EMD Millipore as the context requires.
1.16.    “Premises” means those portions of Buildings C, D and F of the Ashby Rd. Plant leased to Entegris pursuant to Section 2 below and on Exhibit B hereto.
1.17.    “Releases” shall mean any purchase orders or other documents of purchase that EMD Millipore may place with Entegris for EMD Millipore Flat Sheet UPE Membranes pursuant to Section 5 hereof.
1.18.    “Rent” is defined in Exhibit B hereto.
1.19.    “Specifications” shall mean the test specifications to which EMD Millipore Flat Sheet UPE Membrane shall conform as heretofore used by the Parties and as set forth in a document entitled “Entegris Test Specification #0008393TS”, plus the applicable EMD Millipore Purchase Specifications, excluding provisions regarding visual quality.   Entegris Test Specification #0008393TS shall provide the acceptance criteria for visual quality. “Specifications” shall also refer, where applicable, to the Specifications for membranes manufactured at the Crosby Drive Plant, which are functionally equivalent to the products designated as “EMD Millipore Flat Sheet UPE Membranes” as set forth on Exhibit A but will have different 

product numbers and other attributes appropriately adjusted for dimensional and other differences between membranes produced at the Ashby Rd. Plant and those produced at the Crosby Drive Plant.  Entegris Test Specification #0008393TS will be modified by mutual agreement of the Parties so as to apply to the functional equivalent of EMD Millipore Flat Sheet UPE Membrane manufactured at the Crosby Drive Plant.
1.20.    “Supplement” means the schedule of supplemental terms and conditions specifying detailed provisions to implement the contractual commitments set forth in this Agreement relating to membrane manufacturing operations and membrane manufacturing process improvements which is attached as Exhibit C hereto.  
1.21.    The term “Target” when used to modify a date or a numerical quantity means (i) a date by which the Parties reasonably anticipate that the indicated activity can be completed through the use of commercially reasonable efforts and (ii) a quantity which the Parties reasonably anticipate can be achieved through the use of commercially reasonable efforts; provided that no Target date or Target quantity specified in this Agreement shall constitute a binding commitment.
1.22.    “Term” means the effective period of this Agreement commencing on the Effective Date and ending on June 30, 2015, or until this Agreement is earlier terminated or extended in accordance with Section 8 below.  The Term is sub-divided into two periods - the “Initial Period” which means the period from the Effective Date through the date on which Entegris delivers to EMD Millipore an aggregate of 1,500,000 linear feet of EMD Millipore Flat Sheet UPE Membrane meeting the Specifications which has been accepted by EMD Millipore, calculated on a cumulative basis to include all deliveries from January 1, 2013 through the Effective Date together with all such EMD Millipore Flat Sheet UPE Membrane delivered after the Effective Date; and the “Second Period” which means the period from the end of the Initial Term through the end of the Term.

2.    Lease of the Premises
In order to enable Entegris to continue to manufacture Flat Sheet UPE Membranes in the Premises upon the terms specified in Exhibit B hereto, and to operate the same processes as used to manufacture Flat Sheet UPE Membranes prior to the Effective Date both (i) for its own use and incorporation into Entegris products for sale to its customers and (ii) for supply to EMD Millipore of EMD Millipore Flat Sheet UPE Membrane as provided in this Agreement, EMD Millipore and Entegris agree to the arrangements regarding Entegris’ lease of the Premises in accordance with the Lease Terms set forth in Exhibit B hereto for the duration of the Term of this Agreement.
2.1.    Rent for Occupancy of the Premises.  Commencing on the Effective Date and continuing through the Initial Period, Rent for occupancy and use of the Premises shall be as set forth in Exhibit B hereto.  During the Second Period the Rent for occupancy and use of the Premises is subject to reduction in certain circumstances in accordance with Exhibit B hereto.
2.2.    Access to the Premises and Other Facilities.  Throughout the Term EMD Millipore shall provide Entegris with full access to the Premises in accordance with the Lease Terms.  At any time during the Term, upon reasonable advance notice by a Party, such Party’s authorized representatives shall be provided access to the facilities of the other Party to audit or verify conformity with applicable laws and regulations and mutually agreed to quality standards. During the Term of this Agreement, EMD Millipore’s authorized representatives shall be provided access to the Premises for the purpose of auditing or troubleshooting (to be coordinated with Entegris) of technical problems with Flat Sheet UPE Membranes or their manufacture.  Also, EMD Millipore and Entegris customers (subject to appropriate confidentiality obligations and on reasonable advance notice, and for the purposes indicated above) shall be provided reasonable access, respectively, to the Premises (during the Term) and to the Crosby Drive Plant during the qualification process specified in Section 6.3 below and to any areas of the Ashby Rd. Plant where the EMD Millipore Equipment is located and used.

3.    Ownership and Use of the Equipment
3.1.    Ownership.  For purposes of clarification, the parties acknowledge and agree that:

		
	3.1.1. 
	EMD Millipore Equipment.  All right, title and interest in and to any equipment other than the Entegris Equipment used in the manufacture of Flat Sheet UPE Membranes, including the EMD Millipore Equipment listed on Attachment 1 hereto, currently used in such manufacture is solely owned by EMD Millipore.

		
	3.1.2.
	Entegris Equipment.  All right, title and interest in and to the major equipment listed on Attachment 2 hereto which is currently used in the manufacture of Flat Sheet UPE Membranes, and which is currently located in the Premises, is solely owned by Entegris.

3.2.    Support for Use of the Equipment; Rates.  At all times during the Term, EMD Millipore shall provide Entegris with access to and use of the EMD Millipore Equipment, each as necessary for use in the manufacture of Flat Sheet UPE Membranes and will provide a reasonable level of operational assistance and general technical support and assistance in resolving technical problems in Flat Sheet UPE Membrane manufacture all in accordance with the Supplement.  EMD Millipore shall be responsible for maintaining the EMD Millipore Equipment in its current operational capability, and Entegris shall be responsible for maintaining the Entegris Equipment in its current operational capability and condition, in each case as specified in the Supplement, unless the parties agree in writing during the Term to alter such maintenance responsibilities.  To the extent EMD Millipore provides extraordinary services to Entegris for supervisory, operational assistance or technical support during the period from the Effective Date through the Initial Period, such services will be charged in accordance with the rate structure described in the Supplement.  In the event that Entegris grants EMD Millipore the option with respect to surplus Entegris Equipment pursuant to Section 7.3 below or that EMD Millipore grants Entegris the option with respect to surplus EMD Millipore Equipment pursuant to Section 7.4 below, the support provided for by Subsections 7.3.1 and 7.4.1 shall be provided by the selling Party in the manner and at the rates provided in the Supplement. 

4.    Manufacture of Membranes
4.1.    Membrane Manufacturing Operations.  EMD Millipore and Entegris agree that manufacturing operations for Flat Sheet UPE Membrane during the Term shall be carried out in accordance with this Section 4 and with the Supplement. 

4.2.    Maintenance of Existing Capacity, etc.  EMD Millipore and Entegris agree that during the Term they shall maintain the capacity of the VMF-4 line and the Film 1 Annealing line, in the case of EMD Millipore, and all relevant process steps, in the case of Entegris, at least at the level in effect on the Effective Date as specified in the Supplement and shall take no action, other than as may be required by applicable regulatory requirements, to reduce such capacity.  At all times during the Term, Entegris agrees to generally schedule operations in alignment with EMD Millipore’s plan for shutdown periods and holidays.  However, it is acknowledged and agreed that there will be times of high demand during the Term where Entegris will be required to run the Entegris Equipment during these shutdown periods.  In such cases, EMD Millipore and Entegris will mutually agree on a plan allowing for high utilization of the Entegris Equipment.

4.3.    Capacity Improvements.  In addition to the commitments set forth in Section 4.2 above and in order to alleviate the capacity constraints referred to in Recital 2 above, EMD Millipore and Entegris agree to implement mutually agreeable manufacturing process improvements for Flat Sheet UPE Membranes.  Entegris has proposed specific process changes to the operating methods for the Film 1 Annealing Line to increase the speed of the throughput of Flat Sheet UPE Membrane; EMD Millipore agrees to use its commercially reasonable efforts to complete the qualification of Flat Sheet UPE Membrane generated by this changed process by the Target date of March 31, 2014.  In addition EMD Millipore agrees to use its commercially reasonable efforts to discontinue the processing of other membrane currently processed on the Film 1 Annealing Line by the Target date of March 31, 2014 and to devote the Film 1 capacity created thereby to Entegris for the manufacture of Flat Sheet UPE Membranes in accordance with the Supplement.  For its part, Entegris agrees to use its commercially reasonable efforts to maintain and improve utilization of the NZE extraction processes used to produce EMD Millipore Flat Sheet UPE Membranes, and to ensure 

that additional Film 1 Annealing Line capacity created pursuant to this Section is fairly allocated between the manufacture of Entegris Flat Sheet UPE Membranes and EMD Millipore Flat Sheet UPE Membranes as those terms are used on Exhibit A hereto. 

4.4.    Joint Know-How.  In the event that any know-how results from or is developed in the course of the manufacture of Flat Sheet UPE Membranes in the Premises during the Term (including the use of EMD Millipore Equipment in such manufacture), whether by employees of EMD Millipore, employees of Entegris or jointly, such know-how shall be jointly owned by Entegris and EMD Millipore.  During the Term, EMD Millipore shall have rights to use such know-how in the EMD Millipore Field of Use, and Entegris shall have rights to use such know-how in all fields other than the EMD Millipore Field of Use and shall have the rights to use such know-how to manufacture and supply EMD Millipore Flat Sheet UPE Membrane to EMD Millipore hereunder.  After the Term, such know-how shall continue to be owned jointly without restriction.

4.5.    Machine Hourly Rates.  The hourly rates (“Machine Hourly Rates”) for use by Entegris of EMD Millipore’s VMF4 Line, Film 1 Annealing Line and Mix Room equipment (the “Machines”), and the invoicing thereof, shall be as set forth in this Section 4.5.  Machine usage (including production and research and development usage) shall be calculated in accordance with the Supplement.  Commencing on the Effective Date, the Machine Hourly Rates calculated as provided in the Supplement shall be applicable from the Effective Date through the Initial Period; provided, however, that commencing with the start of the Second Period the Machine Hourly Rates for the Machines shall be reduced as set forth in the Supplement.  Machine Hourly Rates to Entegris are independent of EMD Millipore production volumes on the Machines.  EMD Millipore shall be entitled to invoice Entegris monthly for Machine usage following the end of each month.  The Machine Hourly Rates used for the first two months of each calendar quarter shall be the average Machine Hourly Rates that would apply for the budgeted use of each Machine for such quarter, as calculated by EMD Millipore based on the then most recent projections provided by Entegris pursuant to Subsection 5.4.2 hereof.  The invoice for the third month of each calendar quarter shall be adjusted to effect a “true up” to actual Machine usage by invoicing for the net difference between the Machine Hourly Rate applicable to the actual hourly usage of the Machine in question for the entire quarter multiplied times the actual hours of usage of such Machine for the quarter less the amounts invoiced for usage of such Machine for the first two months of the quarter.  This “true up” is so that Entegris effectively pays for all of a quarter’s hours at the Machine Hourly Rates appropriate for those total hours.

4.6.    Impact of Capital Investment on Prices.  Entegris shall be responsible for funding required capital improvements to the Entegris Equipment for production of Flat Sheet UPE Membranes.  EMD Millipore shall be responsible for funding required capital improvements to the EMD Millipore Equipment for production of Flat Sheet UPE Membranes.  To the extent that capital improvements are required for the EMD Millipore Equipment used in the production of Flat Sheet UPE Membranes designated on Exhibit A as Entegris Treated Flat Sheet UPE Membranes, responsibility for funding that capital improvement shall be mutually agreed upon in accordance with Section 1.7 of the Supplement.  If one party funds the purchase of additional equipment for use in manufacture of Flat Sheet UPE Membranes at the Premises, that equipment shall be owned by the funding party.  Changes to the Equipment and the related impact on Machine Hourly Rates and other charges under this Section 4 shall be approved, managed and reflected in accordance with the Supplement.

5.    Supply of Membranes
5.1.    Sale of Membrane.  During the Term but subject to:  (i) EMD Millipore fulfilling its commitment to maintain the capacity of the Film 1 Annealing Line as specified in Section 4.2 above; (ii) and any new or changed restrictions imposed by the applicable air emission permit(s) for the Premises;  Entegris agrees to use commercially reasonable efforts to manufacture and sell to EMD Millipore and EMD Millipore agrees to use commercially reasonable efforts to purchase and issue Releases for the following Target quantities of EMD Millipore Flat Sheet UPE Membranes from Entegris during the Term a rolling four-week average 

Target quantity of 23,000 linear feet per week or at the rate of a Target quantity of 300,000 linear feet per quarter.

5.2.    Terms of Sale.  Unless otherwise agreed by both parties in writing, this Agreement applies to all Releases placed by EMD Millipore with Entegris for EMD Millipore Flat Sheet UPE Membrane during the Term.  The terms and conditions of this Agreement shall apply to any Release, whether or not this Agreement or its terms and conditions are expressly referenced in the Release.  All EMD Millipore Flat Sheet UPE Membrane shall be tested, inspected and packaged for delivery by Entegris as mutually agreed by the Parties.  Except as set forth above, in Section 5.4 hereof and in the Supplement, EMD Millipore shall have no minimum or maximum per order requirements.

5.3.    Priority.  Unless otherwise agreed by both parties in writing for a specific transaction, no inconsistent or additional term or condition in any Release, or in any acknowledgment, invoice or other document issued by Entegris or by EMD Millipore, shall be applicable to a transaction within the scope of this Agreement.  Both parties specifically agree that any terms and conditions in any such documents which are in any way inconsistent with this Agreement shall be inapplicable, and the terms of this Agreement shall govern.

5.4.    Forecasts and Releases. EMD Millipore will provide Entegris with a rolling one-year forecast of its demand for EMD Millipore Flat Sheet UPE Membranes hereunder, by calendar quarter (a “One-Year Forecast”), which will be updated on a quarterly basis, at least thirty (30) days prior to the start of each calendar quarter.  The first One-Year Forecast shall be delivered to Entegris no later than the thirtieth (30th) day following the Effective Date.  The sub-forecast for the first three (3) months within any One-Year Forecast shall be referred to as a “3 Month Forecast”.  EMD Millipore must provide Releases for delivery, during the three (3) months covered by any 3 Month Forecast, of EMD Millipore Flat Sheet UPE Membranes in at least those quantities set forth in such 3 Month Forecast.  Except for such semi binding nature of the 3 Month Forecasts as described more specifically in Subsection 5.4.2 below, the One-Year Forecasts will be used for planning purposes only and are not binding.  Entegris will ship EMD Millipore Flat Sheet UPE Membranes so as to arrive on the delivery date set forth in a Release, provided that the delivery date set forth in such Release is not less than  the applicable mutually agreed upon lead times following the date Entegris receives such Release and provided, further that the quantities set forth in such Release, together with those in all other Releases calling for delivery during the same quarter, are not greater than the lesser of the quantities applicable to the period in question as provided in Section 5.1 above or in the applicable 3 Month Forecast.  For any Releases calling for quantities that are less than the Target quantity provided in Section 5.1 above but greater than the quantities provided in such 3 Month Forecast, Entegris shall use commercially reasonable efforts to deliver such quantities within ninety (90 ) days following the date Entegris receives such Release or as soon as practicable thereafter.
		
	5.4.1.
	EMD Millipore shall be entitled to reduce the amount specified in a 3 Month Forecast without penalty or other charge if the written change notice is received by Entegris prior to the requested lot of EMD Millipore Flat Sheet UPE Membrane being extruded.  

		
	5.4.2
	Within ten (10) days after receipt of each One Year Forecast, Entegris will provide a non-binding, good faith projection of its Flat Sheet UPE Membrane manufacturing volume (broken down between EMD Millipore Flat Sheet UPE Membrane, Entegris Flat Sheet UPE Membrane and Entegris Treated Flat Sheet UPE Membrane), by calendar quarter, for the upcoming four calendar quarters.  This information will be used by EMD Millipore for budgeting of resources and revenue, and for the determination of budgeted Machine Hourly Rates for purposes of Section 4.5. 

5.5.    Membrane Prices.  Commencing on the Effective Date  the prices for EMD Millipore Flat Sheet UPE Membranes to EMD Millipore produced at the Premises shall be as provided in accordance with Exhibit A hereto.  The price for Flat Sheet UPE Membranes produced at the Crosby Drive Plant (other than the rolls for Feasibility Evaluation and Operational Qualification as described in Section 6.3 below) shall be as provided on Exhibit A hereto for the Term.  The Parties acknowledge that all EMD Millipore Flat Sheet UPE Membranes will be produced at the Crosby Drive Plant after the Term pursuant to a separate Membrane 

Supply Agreement.  Delivery terms for all EMD Millipore Flat Sheet UPE Membranes delivered to EMD Millipore hereunder will be FOB 80 Ashby Road, Bedford, MA.
		
	5.5.1.
	Payment of Invoices.  All amounts payable by either Party to the other pursuant to this Agreement, except for amounts payable as Rent, shall be payable within forty-five (45) days following the later of (i) receipt of EMD Millipore Flat Sheet UPE Membranes ordered hereunder, performance of services or Machine usage, and (ii) receipt of invoice.  All payments shall be made in U.S. Dollars.  Any late payments shall be subject to interest at a rate of three percent (3%) per annum.

5.6.    Membrane Warranty.  Entegris warrants to EMD Millipore that:
		
	(i)
	All EMD Millipore Flat Sheet UPE Membranes supplied hereunder shall conform to the Specifications, as such Specifications may be amended by mutual agreement of the Parties;

		
	(ii)
	Subject to the tolerances set forth in Entegris Test Specification #0008393TS relating to visual quality, all EMD Millipore Flat Sheet UPE Membranes supplied hereunder shall be free of defects in materials and workmanship; and

		
	(iii)
	Entegris will abide by all applicable laws and regulations in manufacturing and supplying EMD Millipore Flat Sheet UPE Membranes pursuant to this Agreement.

		
	5.6.2.
	In the event of a breach of the foregoing warranties, the Entegris’ sole obligation to  EMD Millipore shall be to replace, if possible through the use of commercially reasonable efforts, any non-conforming EMD Millipore UPE Flat Sheet Membranes; if such replacement is not possible, then Entegris shall refund the purchase price for any non-conforming EMD Millipore UPE Flat Sheet Membranes.

		
	5.6.3.
	ENTEGRIS MAKES NO OTHER WARRANTY, EXPRESSED OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.  FURTHERMORE, ENTEGRIS SHALL NOT BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, SPECIAL OR ANY OTHER INDIRECT DAMAGES RESULTING FROM ECONOMIC LOSS OR PROPERTY DAMAGE SUSTAINED BY EMD MILLIPORE FROM THE USE OF THE EMD MILLIPORE FLAT SHEET UPE MEMBRANES.

		
	5.6.4.
	Entegris agrees to indemnify and hold harmless EMD Millipore from and against any claim or legal action by a third party against it (including reasonable attorneys’ fees associated therewith) based on damages incurred as a result of property damages, personal injury or death, to the proportionate extent arising from a breach of any of the above warranties of Entegris.

		
	5.6.5.
	Without limiting any other rights or remedies that EMD Millipore may have, if EMD Millipore determines that delivered EMD Millipore Flat Sheet UPE Membranes do not conform to the Specifications for such EMD Millipore Flat Sheet UPE Membranes, then EMD Millipore may reject or withdraw its acceptance thereof and shall notify Entegris in writing of such nonconformity or error within thirty (30) days following receipt of such EMD Millipore Flat Sheet UPE Membranes. EMD Millipore may subject any EMD Millipore Flat Sheet UPE Membrane to internal testing for purposes of determining conformity to Specifications.  Entegris shall have fifteen (15) days following receipt of written notice of nonconformity or error to replace nonconforming EMD Millipore Flat Sheet UPE Membranes at the expense of Entegris.  If so directed by Entegris, EMD Millipore shall return nonconforming EMD Millipore Flat Sheet UPE Membranes to Entegris’ manufacturing facilities, at Entegris’ expense and using such carrier and such delivery dates and terms as Entegris shall reasonably specify. 

		
	5.6.6.
	The Parties agree to have their representatives meet at least once every three (3) months (unless otherwise agreed) to review compliance with the manufacturing, specifications, product quality, forecasting and delivery terms set forth in this Agreement, and to agree on any necessary corrective actions or modifications to the Supplement as then in effect.

6.    Transition of Manufacturing.
6.1.    Purpose of Transition.  Entegris has heretofore been supplying EMD Millipore with EMD Millipore Flat Sheet UPE Membrane manufactured by Entegris at the Premises in accordance with the Fourth Agreement.  The Parties hereby agree that Entegris will transfer its membrane manufacturing operations currently conducted in the Premises to the Crosby Drive Plant in an orderly manner (the “Manufacturing Transfer”) during the Term.  It is the intent of the Parties that this Agreement establish the terms and conditions pursuant to which:  (i) EMD Millipore Flat Sheet UPE Membrane manufactured at the Crosby Drive Plant will be qualified by EMD Millipore; (ii) the supply of EMD Millipore Flat Sheet UPE Membrane will be transferred to the Crosby Drive Plant by Entegris; and (iii) the Premises will thereupon be closed by the Parties in accordance with their respective responsibilities under the Lease Terms.  The Parties agree to use commercially reasonable efforts to assure the smooth transition of the manufacturing process for Flat Sheet UPE Membrane to the Crosby Drive Plant, in the case of Entegris and to qualify EMD Millipore Flat Sheet UPE Membrane manufactured at the Crosby Drive Plant, in the case of EMD Millipore.  Entegris agrees that, pending the completion of the qualification of EMD Millipore Flat Sheet UPE Membrane manufactured at the Crosby Drive Plant, it shall use commercially reasonable efforts to continue to supply EMD Millipore with EMD Millipore Flat Sheet UPE Membrane manufactured at the Premises in accordance with the provisions of this Agreement.

6.2.    Timing of Manufacturing Transfer.  The Parties acknowledge that Entegris has heretofore given EMD Millipore the “Move Notice” under the Fourth Agreement.  Upon completion of the renovation and facilitization of the Crosby Drive Plant and the development of Flat Sheet UPE Membrane manufacturing capability at the Crosby Drive Plant, Entegris agrees to initiate and use commercially reasonable efforts to prosecute the qualification process specified in Section 6.3 below.  EMD Millipore agrees to use commercially reasonable efforts to prosecute and complete such qualification process within fifteen (15) months following the last delivery to EMD Millipore of performance qualification samples of Crosby Membrane in accordance with Section 6.3(iii) below.  Upon successful completion of such qualification process, Entegris agrees to undertake the supply and EMD Millipore agrees to accept deliveries of EMD Millipore Flat Sheet UPE Membrane manufactured at the Crosby Drive Plant in accordance with separate supply arrangements.  The Parties agree to thereafter initiate the closure of the Premises in accordance with the Lease Terms.  Entegris agrees to use commercially reasonable efforts to complete the Manufacturing Transfer and to have vacated the Premises no later than the end of the Term.  Entegris further agrees to consult with EMD Millipore concerning the schedule for and progress of the Manufacturing Transfer and vacation of the Premises.  Notwithstanding the foregoing, the operation of the Premises may be extended to a date not later than December 31, 2015, pursuant to mutually agreed upon terms in order to assure adequate capacity to supply Flat Sheet UPE Membrane and/or EMD Millipore Flat Sheet UPE Membrane from a qualified manufacturing operation.

6.3.    Qualification.  The Parties recognize that the qualification of the EMD Millipore Flat Sheet UPE Membranes manufactured at the Crosby Drive Plant (“Crosby Membrane”) is a critical precondition to the Manufacturing Transfer, the supply of Crosby Membrane to meet EMD Millipore’s requirements for EMD Millipore Flat Sheet UPE Membrane and the closure of the Premises.  EMD Millipore and Entegris agree to work together in good faith to facilitate such qualification in a timely and expeditious manner in accordance with Exhibit D.  The parties contemplate that the qualification process shall be comprised of three stages:  
		
	(i)
	Feasibility Evaluation pursuant to which Entegris will provide four (4) rolls of feasibility sample UPDP type Crosby Membrane and four (4) rolls of feasibility sample UPHP type Crosby Membrane to EMD Millipore free of charge and EMD Millipore will undertake the testing and evaluation of these feasibility samples of Crosby Membrane in accordance with the validation and qualification testing protocols referred to under the heading “1.  Feasibility Evaluation Stage” on Exhibit D hereto and will promptly provide Entegris with the test results, data and other technical information yielded by such testing by the Target specified in such section of Exhibit D, or sooner if reasonably possible.  In the event that EMD Millipore requires additional quantities of feasibility sample Crosby 

Membrane, it shall purchase such additional quantities at the prices as provided in accordance with Exhibit A hereto; EMD Millipore will provide Entegris with regular updates concerning the testing of the feasibility samples and will notify Entegris in writing when the Feasibility Evaluation is complete;
		
	(ii)
	Operational Qualification during which Entegris will provide to EMD Millipore operational qualification samples of UPDP type Crosby Membrane and operational qualification samples of UPHP type Crosby Membrane in each of the four Specification range conditions specified under the heading “2.  Operational Qualification Stage” on Exhibit D hereto.  EMD Millipore will undertake the testing and evaluation of these operational samples of Crosby Membrane in accordance with the validation and qualification testing protocols referred to under the heading “2.  Operational Qualification Stage” on Exhibit D hereto and will use commercially reasonable efforts to promptly provide Entegris with the test results, data and other technical information yielded by such testing by the Target date specified in such section of Exhibit D.  Up to 32 rolls of operational qualification samples of Crosby Membrane will be provided free of charge.  In the event that EMD Millipore requires additional quantities of operational qualification sample Crosby Membrane, it shall purchase such additional quantities at the prices as provided in accordance with Exhibit A hereto; EMD Millipore will provide Entegris with regular updates concerning the testing of the operational qualification samples and will notify Entegris in writing when the Operational Qualification is complete; 

		
	(iii)
	Performance Qualification during which Entegris will supply and EMD Millipore agrees to purchase performance qualification samples of UPDP type Crosby Membrane and UPHP type Crosby Membrane as specified under the heading “3.  Performance Qualification” on Exhibit D for testing and evaluation by EMD Millipore in accordance with the validation and qualification testing protocols referred to under the heading “3.  Performance Qualification” on Exhibit D.  The purchase price for such performance qualification samples of Crosby Membrane shall be as provided in accordance with Exhibit A hereto.  If these tests confirm that these performance samples of Crosby Membrane meet the Specifications, they shall be deemed to be accepted by EMD Millipore as finished EMD Millipore Flat Sheet UPE Membrane; and

		
	(iv)
	Notice of Qualification Completion. If EMD Millipore’s tests confirm that the performance qualification samples of Crosby Membrane meet the Specifications, then EMD Millipore will notify Entegris in writing that Performance Qualification is complete in accordance with section 3.  Performance Qualification” on Exhibit D. The Parties shall then by mutual agreement establish a schedule for the beginning of commercial supply from the Crosby Drive Plant, and the termination of supply of EMD Millipore Flat Sheet UPE Membranes from the Ashby Rd. Plant .

Entegris agrees that all such Feasibility and Operational and Performance qualification rolls of Crosby Membrane provided to EMD Millipore by Entegris will meet the Specifications as in effect on the Effective Date.  The Parties agree that they shall diligently undertake all additional qualification actions referred to on Exhibit D hereto.   

6.4.    No Supply Disruption. Notwithstanding the Manufacturing Transfer, Entegris will use commercially reasonable efforts to continue to meet its supply obligations to EMD Millipore under Section 5.1 of this Agreement of any EMD Millipore Flat Sheet UPE Membranes from a manufacturing process qualified by EMD Millipore.  It is the expectation of the Parties that, once Flat Sheet UPE Membrane is being manufactured at the Crosby Drive Plant, Entegris will produce EMD Millipore Flat Sheet UPE Membranes from both the Premises and the Crosby Drive Plant, at the prices calculated in accordance with Exhibit A, until the earlier of: (i) completion of the fifteen (15) month qualification process set forth in Section 6.3 above for the Crosby Membrane or (ii) the end of the Term or as may be otherwise agreed by the Parties.

6.5.    No VMF4 Disruption.  Notwithstanding the Manufacturing Transfer, EMD Millipore will at all times during the Term continue to meet its obligations to Entegris under this Agreement to provide hydrophilization of Flat Sheet UPE Membranes on its VMF4 Line at the same level as on the Effective Date.

		
	7.
	END OF TERM ARRANGEMENTS

7.1.    End of Term Arrangements for the Premises.  Unless otherwise agreed by the Parties, Entegris shall vacate the Premises in accordance with the Lease Terms.  Entegris will bear all costs of dismantling, packaging, freight, shipping, installation, testing and requalification of all Entegris Equipment to be removed from the Premises.

7.2.    End of Term Arrangements for Entegris Equipment.  Entegris shall remove and transport, at its own expense, the Entegris Equipment (subject to the consummation of any sale pursuant to any option to purchase certain items of such Entegris Equipment as specifically set forth in Section 7.3 below) from the Premises to a location of its choice within one-hundred eighty (180) days following the early termination of the Term, but in no event later than the extension date specified in Section 8.1 below.  Entegris shall use its best efforts to avoid or minimize damage to the Premises or to any other part of the Ashby Rd. Plant from such removal, and shall promptly reimburse EMD Millipore for its reasonable and actual costs of making any necessary repairs to any damage, to the extent caused by Entegris or its agents or representatives in the process of removing the Entegris Equipment from the Premises or any other parts of the Ashby Rd. Plant.

7.3.    End of Term Arrangements for Surplus Entegris Equipment.  Following the expiration or earlier termination of the Term, Entegris agrees, in the event that during the Term Entegris determines, in its sole discretion, that the Extrusion Line and/or one NZE Extractor are surplus and are to be disposed of, then Entegris agrees to grant EMD Millipore an option to purchase, prior to or at the termination of this Agreement, at their then current book values and on such other reasonable terms as the Parties may agree, such surplus Extrusion Line and/or NZE Extractor.  Upon consummation of any such sale transaction, Entegris agrees to leave in their then current locations at the Premises, the surplus Extrusion Line and/or NZE Extractor purchased hereunder, as the case may be.  Entegris agrees to notify EMD Millipore if it is granting EMD Millipore such an option, at least six (6) months prior to the termination of this Agreement.  
		
	7.3.1. 
	In the event that the parties consummate a sale of any equipment deemed to be surplus by Entegris as specified above, Entegris agrees to provide EMD Millipore with the know-how (including copies of all pertinent documentation) and a reasonable amount of transition assistance relating to the design, specifications, functionality, operation and maintenance of such equipment, or otherwise necessary or useful for EMD Millipore to be able to continue the manufacturing process for EMD Millipore Flat Sheet UPE Membrane immediately upon the termination of this Agreement, so as to be able to make or have made EMD Millipore Flat Sheet UPE Membrane in the same process and of the same quality as made and supplied under this Agreement. All Entegris transition assistance time shall be charged to EMD Millipore at the rates per person-hour calculated in accordance with Section 3.2 above.

7.4.    End of Term Arrangements for Surplus EMD Millipore Equipment.  Following the expiration or earlier termination of the Term of this Agreement, EMD Millipore agrees in the event that it determines during the Term of this Agreement, in its sole discretion, that the VMF4 Line and/or the Film 1 Line are surplus and are to be disposed of, then EMD Millipore agrees to grant Entegris an option to purchase, prior to or at the termination of this Agreement, at their then current book values and at such other reasonable terms as the Parties may agree, such surplus VMF4 Line and/or the Film 1 Line.  Upon consummation of any such sale transaction, Entegris shall remove and transport, at its own expense, any such purchased surplus equipment from the Premises to a location of its choice within one-hundred eighty (180) days following the expiration or early termination of the Term.  Entegris shall use its best efforts to avoid or minimize damage to the Premises or to any other part of the Ashby Rd. Plant from such removal, and shall promptly reimburse EMD Millipore for its reasonable and actual costs of making any necessary repairs to any damage to the extent caused by Entegris or its agents or representatives in the process of removing such purchased surplus equipment from the Premises or any other parts of the Ashby Rd. Plant. EMD Millipore agrees to 

notify Entegris if it is granting Entegris such an option, at least six (6) months prior to the termination of this Agreement.  
		
	7.4.1.
	EMD Millipore shall provide Entegris with know-how (including copies of all pertinent documentation) and a reasonable amount of transition assistance relating to the design, specifications, functionality, operation and maintenance of the EMD Millipore Equipment, such that Entegris can make or have made, and operate and maintain, equipment substantially equivalent or comparable to the EMD Millipore Equipment, or successfully outsource the functions performed by the EMD Millipore Equipment, in the manufacture of Flat Sheet UPE Membranes.  All EMD Millipore transition assistance shall be charged to Entegris at the rates per person-hour calculated in accordance with Section 3.2 above.

		
	8.
	Term and Termination

8.1.    Term.  The Term of this Agreement shall begin on the Effective Date and continue thereafter until June 30, 2015 or until earlier termination in accordance with Section 8.2, unless extended by mutual agreement of the Parties to December 31, 2015 or such other date as may be agreed by the Parties.  Any Release issued by EMD Millipore before the effective date of termination and in accordance with Section 5.4 hereof shall be fulfilled by Entegris.  

8.2.    Termination.  Either Party may terminate this Agreement prior to June 30, 2015 without prejudice to any rights or liabilities accruing up to the date of termination:
		
	8.2.1
	in the event of a material breach by the other Party of any of the terms and conditions of this Agreement, by giving the breaching Party written notice of such breach, provided that such breach shall not have been cured within one hundred twenty  (120 ) days following such notice; or,  

		
	8.2.2
	immediately, by written notice thereof, if any of the following events or an event analogous thereto occurs:

		
	a.
	an adjudication has been made that the other party is bankrupt or insolvent;

		
	b.
	the other Party has made a filing to initiate bankruptcy proceedings or has had such proceedings filed against it, except as part of a bona fide scheme for reorganization;

		
	c.
	a receiver has been appointed for all or substantially all of the property of the other Party;

		
	d.
	the other Party has assigned or attempted to assign this Agreement for the benefit of its creditors; or

		
	e.
	the other Party has begun any proceeding for the liquidation or winding up of its business affairs.

8.3.    Termination Upon Completion of Qualification/Survivability of Provisions.  Upon the completion of the qualification of the Crosby Membrane, the Manufacturing Transfer, the closure of manufacturing at the Premises and the vacating of the Premises by Entegris, the Term shall terminate and this Agreement shall thereafter be of no further force or effect, provided, however, that the provisions of the following Sections shall continue in effect thereafter as provided therein or for such period as may be necessary for performance of such provisions with respect to events occurring prior to such expiration or termination:  Section 4.4 (Joint Know-How), Section 5.6 (Membrane Warranty), Section 7 (End of Term Arrangements), Section 8.3 (re Survivability), Section 9.3 (Confidentiality), and Section 9.4 (Indemnification), and 11 (General).

		
	9.
	Special Covenants

9.1.    Non Compete From the Effective Date through March 31, 2014, the Parties agree that the following non-compete provisions shall continue to apply; after March 31, 2014 the provisions of this Section 9.1 shall expire and shall be of no further force or effect.
		
	9.1.1.
	By EMD Millipore.  EMD Millipore agrees that neither it nor any of its Affiliated Companies will (i) sell outside of the EMD Millipore Field of Use any Flat Sheet UPE Membranes, or (ii) sell any Flat Sheet UPE Membranes to any distributor, OEM manufacturer or other third party that has rights to, or that EMD Millipore or any such Affiliated Company has reason to believe will, resell such Flat Sheet UPE Membranes outside of the Millipore Field of Use or sell other products which include Flat Sheet UPE Membranes as materials or components outside of the Millipore Field of Use.

		
	9.1.2.
	By Entegris - In the EMD Millipore Field of Use.  Entegris agrees that neither it nor any of its Affiliated Companies will (i) sell into the EMD Millipore Field of Use any Flat Sheet UPE Membranes, or (ii) sell any Flat Sheet UPE Membranes to any distributor, OEM manufacturer or other third party that has rights to, or that Entegris or any such Affiliated Company has reason to believe will, resell such Flat Sheet UPE Membranes into the EMD Millipore Field of Use or sell other products which include Flat Sheet  UPE Membranes as materials or components into the Millipore Field of Use.

		
	9.1.3.
	By Entegris - Outside the Entegris Core Business.  Entegris agrees that neither it nor any of its Affiliated Companies will (i) sell outside of the “Entegris Core Business” (as defined in Subsection 9.1.4 below) any of the Flat Sheet UPE Membranes designated on Exhibit A as Entegris Treated Flat Sheet UPE Membranes or any device or other product into which include such Entegris Treated Flat Sheet UPE Membranes or (ii) sell any of the Flat Sheet UPE Membranes designated on Exhibit A as Entegris Treated Flat Sheet UPE Membranes or any device or other product into which include such Entegris Treated Flat Sheet UPE Membranes to any distributor, OEM manufacturer or other third party that has rights to, or that Entegris or any such Affiliated Company has reason to believe will, resell such Entegris Treated Flat Sheet UPE Membranes or any such device or other product outside of such Entegris Core Business or sell other products which include such Entegris Treated Flat Sheet UPE Membranes as materials or components outside of such Entegris Core Business

		
	9.1.4.
	“Entegris Core Business” shall mean:  (i) the IC Manufacturing Industry including companies that manufacture integrated circuits, semiconductors, semiconductor chips and other microelectronics components, flat panel displays, solar cells and fiber optic cables, optical coatings, coated optical lenses and coated optical fibers; (ii) the IC OEM Equip & Materials Mfg. Industry including companies that manufacture equipment for the fabrication and processing of semiconductors and integrated circuits for sale to companies in the IC Manufacturing Industry as well as companies that integrate a number of components into subsystems sold to OEM equipment manufacturers for incorporation into semiconductor fabrication equipment, as well as companies that manufacture, process and supply liquids, gases, conductive materials and other advanced materials to the IC Manufacturing Industry and which provide products and systems to purify, monitor and control atmospheric conditions in clean room manufacturing environments of the IC Manufacturing Industry; and (iii) the IC Research Laboratory Industry including university, governmental and commercial laboratories and research operations that research and/or develop innovations in the structure and composition of integrated circuits, the processes and materials used to manufacture integrated circuits and new forms of integrated circuits.

9.2.    Exclusivity.  This Section 9.2 shall take effect as of March 31, 2014.  Entegris agrees that: (i) EMD Millipore shall have the Exclusive right (even as to Entegris) to sell the EMD Millipore Flat Sheet UPE Membranes when used as a substrate for membrane chromatography products or tangential flow ultrafiltration products into the EMD Millipore Field of Use, and (ii) EMD Millipore shall have the Non-Exclusive right to sell the EMD Millipore Flat Sheet UPE Membranes when used as direct filtration media in a product sold into the EMD Millipore Field of Use.  The exclusive and non-exclusive rights granted hereunder shall also apply to any distributor, OEM manufacturer or other third party which EMD Millipore has appointed by written agreement to resell the EMD Millipore Flat Sheet UPE Membranes for such uses into the EMD Millipore Field of Use.  EMD Millipore agrees that Entegris reserves the Exclusive right to sell Flat Sheet 

UPE Membranes outside of the EMD Millipore Field of Use.  The rights reserved hereunder shall also apply to any distributor, OEM manufacturer or other third party which Entegris has appointed by written agreement to resell such Flat Sheet UPE Membranes outside of the EMD Millipore Field of Use.  EMD Millipore shall at all times during and after the Term remain free and without restriction to manufacture, market, use for its own purposes and/or sell any UPE membrane that EMD Millipore manufactures itself or purchases from a source other than Entegris, provided, however, that the exclusive rights granted EMD Millipore pursuant to clause (i) above shall continue in effect during the Term only so long as EMD Millipore continues to purchase not less than 90% of its requirements for Flat Sheet UPE Membrane from Entegris.  After the termination or expiration of the Term, or the termination of EMD Millipore’s exclusive rights pursuant to the preceding sentence, Entegris shall be free to manufacture, market, use for its own purposes and/or sell any Flat Sheet UPE Membrane that Entegris manufactures itself or purchases in either case free of the restrictions imposed by this Section 9.2.

9.3.    Confidential Information. For the purpose of this Agreement the term "Confidential Information" means information which is not otherwise in the public domain and of which the owner actively undertakes to restrict or control the disclosure to persons or entities other than EMD Millipore or Entegris or their Subsidiaries in a manner reasonably intended to maintain its confidentiality, and which:  (i) the Party owning or disclosing Confidential Information (“Disclosing Party”) disclosed to the non-owning Party or recipient of the Confidential Information (“Receiving Party”) or the Receiving Party had access to on or before March 31, 2001; (ii)  is contained in or referred to by this Agreement or any exhibit or attachment hereto and is known to or in the possession of the Receiving Party as of the Effective Date; or (iii) is disclosed to the Receiving Party pursuant to this Agreement during the Term (the “Disclosure Period”).  Confidential Information may include information relating to, by way of example, research, products, services, customers, markets, software, developments, inventions, manufacturing processes, designs, drawings, engineering, marketing or finances, and may be in writing, disclosed orally or learned by inspection of computer programming code, equipment or facilities.  Confidential Information of third parties that is known to, in the possession of or acquired by a Receiving Party pursuant to a relationship with the Disclosing Party shall be deemed to be the Disclosing Party's Confidential Information for purposes of this Section 9.3.
		
	9.3.1.
	Highly Confidential Information means Confidential Information that is technical know-how and trade secrets relating to:  (i) information relating to manufacturing processes or procedures with respect to devices or other products that are commercially released or for which substantial steps have been taken towards commercialization as of the Effective Date; (ii) information generated by research and development activities; (iii) chemical and other scientific formulae used for the manufacture or treatment of membranes or other separations media or of devices or other products that are commercially released or for which substantial steps have been taken towards commercialization as of the Effective Date; or (iv) any other information which EMD Millipore and Entegris agree is Highly Confidential hereunder. 

		
	9.3.2.
	Exclusions from Confidential Information. Notwithstanding the foregoing provisions of this Section 9.3, Confidential Information shall exclude information that: (i) was in the Receiving Party's possession before receipt from the Disclosing Party and obtained from a source other than the Disclosing Party and other than through the prior relationship of the Disclosing Party and the Receiving Party before March 31, 2001; (ii) is or becomes a matter of public knowledge through no fault of the Receiving Party; (iii) is rightfully received by the Receiving Party from a third party without a duty of confidentiality; (iv) is disclosed by the Disclosing Party to a third party without a duty of confidentiality on such third party; (v) is independently developed by the Receiving Party; or (vi) is publicly disclosed by the Receiving Party with the Disclosing Party's prior written approval. 

		
	9.3.3.
	Confidentiality and Non-Use Obligations.  During the Confidentiality Period (as defined in Subsection 9.3.4 below), the Receiving Party shall:  (i) protect the Confidential Information of the Disclosing Party by using the same degree of care, but no less than a reasonable degree of care, to prevent the unauthorized use, dissemination, or publication of the Confidential Information as Receiving Party uses to protect its own confidential information of a like nature, (ii) not use such Confidential Information in violation of any use restriction herein, and (iii) not disclose such 

Confidential Information to any third party, except as expressly permitted under this Agreement or in any other agreements entered into between the parties in writing, without prior written consent of the Disclosing Party.

		
	9.3.4.
	Duration of Confidentiality Obligations.  The confidentiality obligations provided for in this Section 9.2 shall continue in effect for the following periods (the “Confidentiality Period”):  (i) with respect to Confidential Information that is not Highly Confidential Information, for a period of five (5) years following either (A) the Effective Date with respect to Confidential Information of the Disclosing Party that is known to or in the possession of the Receiving Party as of the Effective Date or (B) the date of disclosure with respect to Confidential Information that was or will be disclosed by the Disclosing Party to the Receiving Party after the Effective Date but before the expiration of the Disclosure Period (as defined in clause (iii) of Section 9.2 above); and (ii) with respect to Highly Confidential Information, in perpetuity.  The obligations set forth in this Section 9.3 shall survive any termination of this Agreement. 

 
		
	9.3.5.
	Compelled Disclosure.  If the Receiving Party or any of its respective Subsidiaries believes that it (i) is legally obligated to disclose, or (ii) will be compelled by a court or other authority of competent jurisdiction to disclose, Confidential Information of the Disclosing Party, it shall give the Disclosing Party prompt written notice so that the Disclosing Party may take steps to oppose such disclosure and cooperate with the Disclosing Party in its attempts to oppose such disclosure.  If the Receiving Party complies with the preceding sentence, it shall not be prohibited from complying with such requirement to disclose, but shall take all reasonable steps to make such disclosure subject to a suitable protective order or otherwise to prevent unrestricted or public disclosure. 

		
	9.3.6.
	No Restriction on Disclosing Party.  Nothing in this Section 9.2 shall restrict the Disclosing Party from using, disclosing, or disseminating its own Confidential Information in any way.

9.4.    Indemnification.  Each Party agrees to indemnify and hold the other Party harmless from and against any claim or legal action by a third party against such Party (including reasonable attorneys’ fees associated therewith) based on damages incurred as a result of property damages, personal injury or death, to the proportionate extent arising from a breach of any of the provisions of this Agreement.

9.5.    Insurance.  Each Party agrees to procure and maintain, at all times during the Term, product liability insurance with respect to the products and services supplied by it hereunder (Broad Form Vendor’s Endorsement) and contractual liability coverage, with the minimum limits of $5,000,000 (Five Million Dollars).  Each Party shall, upon request by the other Party, furnish to the Party a certificate of insurance evidencing the foregoing coverage and limits.  The insurance provider shall not be changed without providing the Party with ten (10) days’ prior written notice. 

10.    Dispute Resolution
10.1.    Discussion of Parties.  In the event of a dispute between the Parties arising out of or related to this Agreement (the "Dispute"), a Party seeking to resolve the Dispute shall give written notice to the other Party, describing briefly the nature of the Dispute and its claim and identifying an individual with authority to settle the Dispute on its behalf.  The Party receiving such notice shall have five (5) business days within which to designate, in a written notice given to the initiating Party, an individual with authority to settle the Dispute on its behalf.  Neither of such authorized individuals shall have had direct substantive involvement in the matters involved in the Dispute.  The authorized individuals shall make such investigation as they deem appropriate and thereafter promptly (but in no event later than thirty (30) days following the date of the initiating Party's notice) shall commence discussions concerning resolution of the Dispute.  

10.2.    Arbitration.  If the Dispute has not been resolved within thirty (30) days following the commencement of discussions, it shall be submitted to final and binding arbitration under the then current Commercial Arbitration Rules of the American Arbitration Association ("AAA"), by one (1) arbitrator in Boston, 

Massachusetts.  Such arbitrator shall be selected by the mutual agreement of the Parties or, failing such agreement, shall be selected according to the aforesaid AAA rules.  The arbitrator will be instructed to prepare and deliver a written, reasoned opinion stating its decision within thirty (30) days following the completion of the arbitration.  The prevailing Party in such arbitration shall be entitled to expenses, including costs and reasonable attorneys' and other professional fees, incurred in connection with the arbitration.  The decision of the arbitrator shall be final and non-appealable and may be enforced in any court of competent jurisdiction.  
10.3.    Continuity of Service and Performance.  Unless otherwise agreed in writing, the Parties will continue to provide service and honor all other commitments under this Agreement during the course of dispute resolution pursuant to the provisions of this Section 10 with respect to all matters not subject to such dispute, controversy or claim.

11.    General Provisions
		
	11.1.
	Effect of Agreement  This Agreement shall take effect as of the Effective Date and shall cancel, replace and supersede the Fourth Agreement in its entirety.  From and after the Effective Date the Fourth Amendment shall be of no further force or effect and this Agreement shall set forth the complete agreement between the Parties with respect to the transactions contemplated hereby.  Upon the completion of the Manufacturing Transfer and the closure and vacating of the Premises as provided in the Lease Terms, this Agreement and the Term hereof shall expire and shall be of no further force or effect. 

		
	11.2.
	Notices.  Any notice or other communication required or permitted to be given by either Party pursuant to the terms of this Agreement shall be in writing and shall be deemed given if and when delivered by hand or sent by certified mail, return receipt requested, overnight courier, confirmed telecopy, or confirmed electronic mail transmission, addressed as follows:

If to EMD Millipore:    EMD Millipore Corporation
290 Concord Road
Billerica, MA  01821
Attn: Vice President, Global Operations 
Fax: (978) 715-1385                    
with a copy to:    EMD Millipore Corporation
290 Concord Road
Billerica, MA 01821
Attn:  General Counsel
Fax:  (978) 715-1382

If to Entegris:    Entegris, Inc.
129 Concord Road
Billerica, MA  01821
Attn: President & CEO 
Fax:  (978) 436-6739
with a copy to:    Entegris, Inc.
129 Concord Road
Billerica, MA  01821
Attn:  General Counsel
Fax:  (978) 436-6739
or to such electronic mail address as may be specified by an addressee Party to the other Party by one of the other means provided above, or to such other address, telecopy number or electronic mail address as may be specified by an addressee Party to the other by one of the means provided above.

		
	11.3.
	Force Majeure.  The obligations of a Party under this Agreement will be suspended to the extent that it is wholly or partially precluded from complying with its obligations under this Agreement by force majeure.  Force majeure includes, but is not restricted to, fire, storm, flood, earthquake, explosion, accident, act of the public enemy, war, rebellion, insurrection, sabotage, epidemic, quarantine restriction, Equipment breakdown or capacity limitation, labor dispute, labor shortage, transportation embargo or failure or delay in transportation, act of God, act (including laws, regulations, disapprovals or failure to approve) of any government agency, whether national, municipal, or otherwise.  During the existence of any such force majeure condition, the affected Party shall nevertheless use its best efforts to remove the cause thereof.

		
	11.4.
	Entire Agreement. This Agreement, including Exhibits A, B, C and D, together with any annexes and Attachments 1 and 2 attached hereto, is the entire agreement between the Parties with respect to the subject matter hereof, and supersedes any prior negotiations and agreements or understandings and any contemporaneous oral agreements or understandings with respect to the subject matter hereof.  

		
	11.5.
	Governing Law.  This Agreement shall be construed in accordance with and all Disputes hereunder shall be governed by the laws of the Commonwealth of Massachusetts as applied to transactions taking place wholly within Massachusetts between Massachusetts residents.  The Superior Court of Middlesex County and/or the United States District Court for the District of Massachusetts shall have jurisdiction and venue over all Disputes between the parties that are permitted to be brought in a court of law pursuant to Section 10 above. 

		
	11.6.
	Counterparts.  This Agreement and the Exhibits and Attachments hereto and the other documents referred to herein, may be executed in counterparts, each of which shall be deemed to be an original but all of which shall constitute one and the same agreement. 

		
	11.7.
	 Binding Effect; Assignment.  This Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective legal representatives and successors, and nothing in this Agreement, express or implied, is intended to confer upon any other person any rights or remedies of any nature whatsoever under or by reason of this Agreement.  Neither Party may assign this Agreement or any rights or obligations hereunder, without the prior written consent of the other Party, and any such assignment shall be void.  Notwithstanding the foregoing, either Party may assign this Agreement and all (but not less than all) of its rights and obligations hereunder to a purchaser or transferee of, or other successor to, substantially all of its business.  

		
	11.8.
	Severability.  If any term or other provision of this Agreement or the Exhibits or Attachments attached hereto is determined by a court, administrative agency or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to either party.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the fullest extent possible.

		
	11.9.
	Failure or Indulgence Not Waiver; Remedies Cumulative.  No failure or delay on the part of either Party hereto in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty or agreement herein, nor shall any single or partial exercise of any such right preclude other or further exercise thereof or of any other right. All rights and remedies existing under this Agreement or the Exhibits and Attachments attached hereto are cumulative to, and not exclusive of, any rights or remedies otherwise available. 

		
	11.10.
	Amendment.  No change or amendment will be made to this Agreement or the Exhibits or Attachments attached hereto except by an instrument in writing signed on behalf of each of the Parties. 

		
	11.11.
	Authority.  Each of the Parties hereto represents to the other that (a) it has the corporate or other requisite power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement by it have been duly authorized by all necessary corporate or other actions, (c) it has duly and validly executed and delivered this Agreement, and (d) this Agreement is a legal, valid and binding obligation, enforceable against it in accordance with its terms subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors' rights generally and general equity principles.

		
	11.12.
	Interpretation.  The headings contained in this Agreement or in any Exhibit hereto are for reference purposes only and shall not be conclusive as to the meaning or interpretation of this Agreement.  When a reference is made in this Agreement to a Section, Exhibit or Attachment, such reference shall be to a Section, Exhibit or Attachment of this Agreement unless otherwise indicated. 

		
	11.13.
	Exhibits.  This Agreement includes the following Exhibits and Attachments, each of which together with any annexes thereto constitutes an integral component part of this Agreement:

Exhibit A.    Membranes Covered by Agreement
Exhibit B    Lease Terms including Diagram A 
Exhibit C    The Supplement  
Exhibit D    Qualification Stages and Tests  
Attachment 1    List of EMD Millipore Equipment 
Attachment 2    List of Entegris Equipment
    

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives effective as of the Effective Date.

	
		
	EMD MILLIPORE CORPORATION
	ENTEGRIS, INC.

	 
	 

	 
	 

	By:  /s/ Christos Ross                    .
	By:_/s/ Bertrand Loy            .

	Name: Christos Ross
	Name: Bertrand Loy

	Title:Senior V.P., Head of Operations
	Title:President and Chief Executive Officer

Exhibit A, 
Page 2

EXHIBIT A
FLAT SHEET UPE Membranes Covered By Agreement
	
										
	Membrane
	Description
	Note

	 
	 EMD Millipore Flat Sheet UPE Membranes 
	 
	 

	UPDP
	0.65 um phobic UPE 
	With Interleaf; Manufactured by Entegris for EMD Millipore use and resale; price determined in accordance with any annex hereto or as otherwise agreed in writing by the Parties

	UPHP00000
	0.45 um phobic, thick UPE
	With Interleaf; Manufactured by Entegris for EMD Millipore use and resale; price determined in accordance with any annex hereto or as otherwise agreed in writing by the Parties

	UPGP000HC
	0.2 um phobic, thick UPE
	With Interleaf; Manufactured by Entegris for EMD Millipore use and resale; price determined in accordance with any annex hereto or as otherwise agreed in writing by the Parties

	UPVP00000
	0.1 um phobic, thick UPE
	Manufactured by Entegris for EMD Millipore use and resale; price determined in accordance with any annex hereto or as otherwise agreed in writing by the Parties

	UPZP000HC
	0.05 um phobic, thick UPE
	With Interleaf; Manufactured f by Entegris for EMD Millipore use and resale; price determined in accordance with Annex any annex hereto or as otherwise agreed in writing by the Parties

	 
	 
	 

	 
	 Entegris Flat Sheet UPE Membranes 
	 
	 
	 

	UPBP00000
	1.0 um phobic, thick UPE
	Manufactured by Entegris for its own use and resale

	DOHP00000
	0.65 um phobic, thick UPE
	Manufactured by Entegris for its own use and resale

	UPHP000NI
	0.45 um phobic, thick UPE
	Manufactured by Entegris for its own use and resale

	UPGP00000
	0.2 um phobic, thick UPE
	Manufactured by Entegris for its own use and resale

	UPVP00000
	0.1 um phobic, thick UPE
	Manufactured by Entegris for its own use and resale

	UPVP000HF
	0.1 um phobic, thick UPE
	Manufactured by Entegris for its own use and resale

	UPZP00000
	0.05 um phobic, thick UPE
	Manufactured by Entegris for its own use and resale

	GOHT
	0.25 um phobic UPE
	Manufactured by Entegris for its own use and resale

	TPGP00000
	0.2 um phobic, thin UPE
	Manufactured by Entegris for its own use and resale

	VOHT
	0.15 um phobic UPE
	Manufactured by Entegris for its own use and resale

	TPVP00000
	0.1 um phobic, thin UPE
	Manufactured by Entegris for its own use and resale

	ZOHT
	0.05 um phobic UPE
	Manufactured by Entegris for its own use and resale

	TPZP00000
	0.05 um phobic, thin UPE
	Manufactured by Entegris for its own use and resale

	TPLP
	0.04 um phobic, thin UPE
	Manufactured by Entegris for its own use and resale

	TPYP00000
	0.03 um phobic, thin UPE
	Manufactured by Entegris for its own use and resale

	TPXP00000
	0.02 um phobic, thin UPE
	Manufactured by Entegris for its own use and resale

	TPTP00000
	0.01 um phobic, thin UPE
	Manufactured by Entegris for its own use and resale

	APAP
	0.005 um phobic, Asym.  UPE
	Manufactured by Entegris for its own use and resale

	
										
	APKP
	0.003 um phobic, Asym.  UPE
	Manufactured by Entegris for its own use and resale

	APTP
	0.01 um phobic, Asym.  UPE
	Manufactured by Entegris for its own use and resale

	APYP
	0.03 um phobic, Asym.  UPE 
	Manufactured by Entegris for its own use and resale

	APAPC
	0.005 um phobic, Asym. Clean UPE
	Manufactured by Entegris for its own use and resale

	APKPC
	0.003 um phobic, Asym. Clean UPE
	Manufactured by Entegris for its own use and resale

	APTPC
	0.01 um phobic, Asym. Clean UPE
	Manufactured by Entegris for its own use and resale

	APYPC
	0.03 um phobic, Asym. Clean UPE 
	Manufactured by Entegris for its own use and resale

	Entegris Treated Flat Sheet UPE Membranes
	 

	JOTD00000
	0.25 um Charged, philic UPE
	Manufactured by Entegris for its own use and resale

	WOTD00000
	0.15 um Charged, philic UPE
	Manufactured by Entegris for its own use and resale

	ZOTD00000
	0.05 um Charged, philic UPE
	Manufactured by Entegris for its own use and resale

	WOTN00000
	0.15 um Charged, neutral UPE
	Manufactured by Entegris for its own use and resale

	VOTN00000
	0.10 um Charged, neutral UPE
	Manufactured by Entegris for its own use and resale

	ZOTN00000
	0.05 um Charged, neutral UPE
	Manufactured by Entegris for its own use and resale

	LOTN00000
	0.04 um Charged, neutral UPE
	Manufactured by Entegris for its own use and resale

	JETA00000
	0.25 um anionic UPE
	Manufactured by Entegris for its own use and resale

	WETA00000
	0.15 um anionic UPE
	Manufactured by Entegris for its own use and resale

	ZETA00000
	0.05 um anionic UPE
	Manufactured by Entegris for its own use and resale

	LETA00000
	0.04 um anionic UPE
	Manufactured by Entegris for its own use and resale

	ZOTAM0000
	0.05 um PCM modified UPE
	Manufactured by Entegris for its own use and resale

	ZOTN00000
	PCM modified UPE
	Manufactured by Entegris for its own use and resale

	YOTAM0000
	0.02 um PCM modified UPE
	Manufactured by Entegris for its own use and resale

	Other Entegris Treated Flat Sheet Membranes
	 

	TATA00000
	0.01 um Thin Philic UPE
	Manufactured by Entegris for its own use and resale

	LFPA
	0.02 um Philic Membrane
	Manufactured by Entegris for its own use and resale

	LFPP
	0.02 um Philic Membrane
	Manufactured by Entegris for its own use and resale

EXHIBIT B
Lease Terms
		
	1.
	EMD Millipore hereby leases to Entegris, and  Entegris hereby leases from EMD Millipore, the areas within Buildings  “C”, “D” and “F” of EMD Millipore’s Ashby Rd. Plant, as more specifically described and shown in Diagram A upon the terms set forth in this Exhibit B (collectively, the “Lease Terms”), as such areas may be added to, reduced or substituted for as provided in these Lease Terms (the “Premises”), including as specifically set forth in Section 3.3 of these Lease Terms, solely for purposes of its manufacture of Flat Sheet UPE Membranes, warehousing of raw materials and components used in such manufacture, and storage Entegris equipment located in the Premises on the Effective Date and for no other purposes except as EMD Millipore may specifically authorize in its sole discretion.  Capitalized terms not otherwise defined in these Lease Terms shall have the meanings assigned to them in the Agreement.

		
	2.
	The Lease of the Premises shall commence as of the Effective Date and continue through the end of the Term of this Agreement, or until such time as Entegris has removed all Entegris Equipment from the Premises in accordance with the terms of Section 7.2 of this Agreement.  

		
	3.
	Entegris shall pay to EMD Millipore rent/occupancy charges for the Premises (“Rent”) as follows: 

		
	3.1
	During the Term Rent shall be at the rate per square foot of the Premises specified on any annex hereto or as otherwise agreed in writing by the Parties, subject to reduction under certain circumstances during the Second Period as specified on any annex hereto or as otherwise agreed in writing by the Parties.  Rent shall be payable by Entegris monthly on or before the fifth day of each month.  

		
	3.2
	It is acknowledged and agreed that in the event that the square footage of the Premises is adjusted during the Term as a result of a shift of production as provided in this Agreement or pursuant to Section 3.3 of these Lease Terms, the corresponding Rent due to EMD Millipore shall be adjusted accordingly.

		
	3.3
	The parties acknowledge that implementation of the Manufacturing Transfer will likely result in decreasing production by Entegris at the Premises during the Term and therefore commensurate reductions in Entegris’ need for the full original Premises.  Accordingly, at least ten (10) days prior to the end of any month during which Entegris believes it has vacated any portion of the Premises, Entegris will notify EMD Millipore of such occurrence in writing, such notice to include with reasonable specificity the portion of the Premises vacated and the square footage proposed to be surrendered.  Upon receipt of the notice, EMD Millipore will promptly review in good faith with Entegris the vacated portion of the Premises to confirm that such space has been vacated and, to the extent applicable, complies with Section 7.6 of these Lease Terms with respect to the condition of the portion of vacated Premises.  Upon the Parties’ mutual agreement of the actual surrender and the square footage affected, the parties will agree on the revised square footage of the Premises and amend Diagram A to reflect such reduced square footage, to be effective for the ensuing month for purposes of calculating Rent pursuant to Sections 3.1 and 3.2 of these Lease Terms thereafter until any further reductions occur. 

		
	4.
	At all times during the Term, those employees or consultants of Entegris that are involved regularly or from time to time in the manufacture of Flat Sheet UPE Membranes and reasonably need access to the Premises for such purposes, and that are not objectionable to EMD Millipore in its sole reasonable discretion, (“Entegris Permitted Persons”) shall have access to the Premises for the purposes of manufacturing of Flat Sheet UPE Membranes and Treated Flat Sheet UPE Membranes and warehousing of raw materials and components used in such manufacture, including reasonable ingress to and egress from the Premises through other parts of EMD Millipore’s facility at 80 Ashby Road.  To the extent that EMD Millipore believes in its sole reasonable discretion that an individual or individuals are objectionable and hence prohibited from entering the Premises, it shall provide Entegris a written summary of the reasons for, and basis of, such belief within three (3) days of notifying Entegris of such a determination.  Without limiting the generality of the foregoing, EMD Millipore shall provide security badges to such Entegris Permitted Persons enabling their entry to the Premises. Entegris agrees to provide an initial list of proposed Entegris Permitted Persons to EMD Millipore’s facilities personnel (as shall be identified to Entegris by EMD Millipore) promptly after the execution of this Agreement, and to promptly update such list from time to time as necessary with any additions or deletions.  In addition, Entegris Permitted Persons shall be, to the same extent, on the same terms, and subject to the same rules and restrictions, as provided to EMD Millipore employees in general, (i) provided access to and use of restrooms, parking areas, driveways and footways, other common areas reasonably necessary to be used by such Entegris Permitted Persons, and conference rooms as reasonably necessary for meetings relating to UPE Membranes manufacture, and (ii) permitted reasonable use of mailroom services, telephone and voicemail systems, information services, fax, copy 

machines, cafeteria/refreshment services, and the like.  Without limiting the generality of the parties’ respective obligations of confidentiality and non-use as described in this Agreement, Entegris hereby agrees that any Confidential Information of EMD Millipore that the Entegris Permitted Persons gain access to as a result of their presence in EMD Millipore’s facility shall be subject to strict obligations of confidentiality and non-use as provided in, and subject to the limitations and other provisions of, Section 9.3 of the Agreement.

		
	5.
	EMD Millipore shall have the right, upon at least twenty-four (24) months written notice to Entegris, to relocate all or any portion of the Premises to any other location of comparable size and utility within its 80 Ashby Road facility.  The parties shall cooperate in enabling any such relocation to occur in a coordinated manner so as to minimize interruption both to Entegris’ manufacturing activities hereunder and EMD Millipore manufacturing and other activities at such facility.  EMD Millipore shall reimburse Entegris for all reasonable and substantiated costs incurred by Entegris in connection with any such relocation. The definition of the “Premises” shall be modified to include any such relocated space.  

		
	6.
	Entegris shall comply with all federal, state or local statutes, ordinances, codes, rules, regulations, orders and decrees (“Laws”) applicable to the conduct of its business on the Premises.  Entegris shall not cause or permit any hazardous substances to be transported to or from, brought upon, kept, stored or used in or about the Premises by, its agents, employees, contractors or invitees, except for such hazardous substances as are reasonably necessary in the performance of the activities permitted under this Agreement.   Any hazardous substance permitted pursuant to the foregoing sentence and all containers therefore shall be used, kept, stored, transported and disposed of in a manner that strictly complies with all applicable Laws relating thereto as now or at any time hereafter during the Term may be in effect.  Except as may be otherwise agreed between the Parties in writing, during the Term responsibility for regulatory, health, safety and environmental compliance, as well as hazardous and solid waste disposal, generated by Entegris’ use of the Premises and Entegris’ manufacture of Flat Sheet UPE Membranes shall be allocated in accordance with Section 4 of the Supplement.  

7.     Repairs and Alterations; Condition of Premises
		
	7.1
	Entegris agrees that it shall, throughout the Term, maintain the Premises in good and operable repair and in such condition as may be required by any laws, ordinances, regulations or requirements of any public authorities having jurisdiction and shall not permit or allow to remain any waste or damage to any portion of the Premises, except as may be permitted herein, provided, however, that EMD Millipore shall be responsible for maintaining, keeping in good repair and, if necessary, replacing the foundation, the exterior and interior walls, the roof, floors and ceilings, the heating, ventilating and air-conditioning system, all utility systems (including water, gas, electricity, drainage, and sewerage), conduits, fixtures and equipment, all meters and all other fixtures and equipment within or appurtenant to the Premises; provided, further, that Entegris shall promptly reimburse EMD Millipore, as additional Rent, for the cost of any such maintenance, repair or replacement to the extent  necessitated or occasioned by any omission, negligence, fault or act of Entegris, its partners, officers, employees, agents, independent contractors or invitees;  provided, however, that any maintenance, repair or replacement necessitated by fire or other casualty shall be subject to the provisions of Section 10 below.  Entegris’ maintenance of the Premises shall include, without limitation, cleaning the Premises regularly.  If Entegris fails to perform such maintenance, within fifteen (15) days after written notice from EMD Millipore (or as promptly as practicable if Entegris’ failure to make such repairs or replacements or perform such maintenance constitutes an emergency or poses a threat to persons or property), then EMD Millipore may elect to make the same at Entegris’ cost (without creating any obligation on behalf of EMD Millipore to do so).  If EMD Millipore fails to perform, or commence performance of, any maintenance, replacement or repair for which it is obligated under these Lease Terms within fifteen (15) days after written notice from Entegris (or as promptly as practicable if EMD Millipore’s failure to make such repairs or replacements or perform such maintenance constitutes an emergency or poses a threat to persons or property), then Entegris may elect to make the same at EMD Millipore’s cost (without creating any obligation on behalf of Entegris to do so).

		
	7.2
	Entegris agrees that it will not make any installations, alterations, additions or improvements to or upon the Premises (including without limitation the installation of signs) without the prior written consent of EMD Millipore, which consent shall not be unreasonably withheld, conditioned or delayed if such installations, alterations, additions or improvements are reasonably consistent with the permitted use of the Premises hereunder; provided, however, that if any proposed installations, alterations, additions or improvements, in EMD Millipore’s reasonable judgment, are either unlikely to be of use to EMD Millipore after the termination of the Agreement or are likely to be expensive or difficult to remove, then EMD Millipore may require Entegris to remove such installations, alterations, additions or improvements at the expiration or earlier termination of the Term.   Upon completion of any installations, alterations, additions or improvements to the Premises, Entegris shall provide EMD Millipore with a copy of any plans and specifications (or similar drawings) prepared for Entegris in connection therewith; if Entegris is required to submit plans and specifications which have been prepared by a licensed civil engineer or architect in order to obtain a building permit for any such installations, alterations, additions or improvements, then upon completion of such 

installations, alterations, additions or improvements, Entegris shall provide EMD Millipore with a copy of the plans and specifications which have been stamped as appropriate by such licensed civil engineer or architect, as appropriate.    
		
	7.3
	All work on or at the Premises for which Entegris is responsible or permitted to perform under these Lease Terms shall be performed at Entegris’ cost and only by contractors and subcontractors approved in writing by EMD Millipore, which approval shall not be unreasonably withheld.  Entegris shall cause all contractors and subcontractors to procure and maintain insurance coverage naming EMD Millipore as an additional insured against such risks, in such amounts and with such companies as EMD Millipore may reasonably require.  Entegris agrees that it will procure, at its sole cost and expense, all necessary permits before making any repairs, installations, alterations, additions, improvements or removals.  EMD Millipore agrees that it will reasonably cooperate with Entegris, at no out-of-pocket cost to EMD Millipore in obtaining any permits, licenses or approvals related to the Premises.  Entegris agrees (a) that all repairs, installations, alterations, improvements or removals done by or on behalf of Entegris (including without limitation the installation of signs) shall be done in a good and workmanlike manner in conformity with all applicable laws, ordinances and regulations of all public authorities (and Entegris shall be responsible for any additional installations or improvements required by any such laws, ordinances or regulations as a result of any repairs, installations, alterations, improvements or renewals done by or on behalf of Entegris) and all insurance inspection or rating bureaus having jurisdiction, (b) that the structure of the buildings in which the Premises are located or the operations in any other party in  such buildings will not be endangered or impaired as a result of any such repairs, installations, alterations, improvements or removals done by or on behalf of Entegris, and (c) that Entegris will repair any and all damage caused by or resulting from any such repairs, installations, alterations, additions, improvements or removals, including, without limitation, the filling of holes.  Entegris agrees to save EMD Millipore harmless from, and indemnify EMD Millipore against, any and all claims by third parties for injury, loss or damage to persons or property to the extent caused by or resulting from the doing of any such repairs, installations, alterations, improvements or removals by or on behalf of Entegris.  Entegris agrees to pay promptly when due all charges for labor and materials in connection with any work done by Entegris or anyone claiming under Entegris upon the Premises so that the Premises and all such buildings shall at all times be free of liens in respect of such labor and materials.  If such a lien is filed, then Entegris shall immediately, after EMD Millipore has delivered written notice of the filing thereof to Entegris, either pay the amount of the lien or diligently contest such lien.  If Entegris fails to timely take either such action, and after written notice to Entegris of its intention to do so, then EMD Millipore may pay the amount of the lien, and any amounts so paid, including expenses and interest, shall be paid by Entegris to EMD Millipore immediately after EMD Millipore has invoiced Entegris therefor, and until paid, such amount shall be additional Rent. 

		
	7.4
	EMD Millipore may in its discretion and at its own cost, but shall not be obligated to, make repairs, installations, alterations, additions or improvements to the Premises at any time during the Term as it determines necessary or appropriate, provided that no such work will be done if it will materially adversely impact Entegris’ use of the Premises, unless EMD Millipore will have previously made accommodations to eliminate or minimize such adverse impact and reasonable advance written notice has been given to Entegris.

		
	7.5
	Entegris acknowledges that the Premises are being leased in their “AS IS” condition as of the Effective Date and that no warranties or representations, express, implied or statutory, have been made by EMD Millipore or any agent, employee or representative of EMD Millipore to Entegris, as to condition (environmental or otherwise), compliance with law, or fitness or suitability for any purpose other than as hereinafter set forth, all of which are expressly disclaimed.  EMD Millipore agrees that if at any time during the Term the Premises are altered by an act or omission of EMD Millipore (other than as specifically permitted in Section 5 of these Lease Terms) such that Entegris is not reasonably able to conduct such manufacturing and warehouse operations in substantially the manner in which it had been conducting such operations prior to the Effective Date, that circumstance shall constitute a material breach by EMD Millipore of its obligations under this Agreement and that Entegris may then terminate this Agreement upon written notice to EMD Millipore.  Entegris acknowledges that except as set forth herein, Entegris has not been induced or persuaded by, nor has Entegris relied upon, any statement, promise or representation made by EMD Millipore or any agent, employee or representative of EMD Millipore, orally or in writing, as an inducement to entering into this Agreement including, without limitation, those relating to land use, zoning, hazardous or toxic wastes or other environmental matters. 

		
	7.6
	At the expiration or earlier termination of the Term Entegris shall surrender all keys to the Premises, remove all its furnishings, fixtures, equipment (including the Entegris Equipment, subject to any provisions in this Agreement to the contrary) and other personal property now or hereafter located in the Premises, purchased or leased by Entegris with its own funds, which are not affixed to the buildings in which the Premises are located. Entegris may also so remove any furnishings, fixtures, equipment which are affixed to buildings in which the Premises are located if EMD Millipore has agreed to such removal in writing.  Entegris shall repair all damage caused by any such removal, and yield up the Premises broom‐clean and in the same good order and repair in which Entegris is obliged to keep and maintain the Premises by the provisions of these Lease Terms.  Any property not so removed shall be deemed abandoned and may be retained by EMD Millipore or may be removed and disposed of by EMD Millipore in such manner as EMD Millipore shall determine and Entegris shall pay EMD Millipore the d

irectly related and reasonable cost and expense incurred by EMD Millipore in effecting such removal and disposition and in making any incidental repairs and replacements to the Premises.     

8.    Indemnity
		
	8.1
	Entegris agrees that during the Term and for such further time as Entegris shall occupy or hold the Premises or any part thereof, EMD Millipore shall not be liable to Entegris and Entegris shall defend (with counsel reasonably acceptable to EMD Millipore), indemnify, and hold EMD Millipore, its officers, directors, agents, employees, independent contractors, and invitees harmless from and against any and all liability for all injuries, losses, accidents or damage to any person or property, and from all claims, actions, proceedings and costs in connection therewith, including reasonable counsel fees, to the extent arising from (a) any act, omission, fault or negligence of Entegris, its officers, directors, agents, employees, independent contractors, licensees, or invitees, and relating to the presence of any of the foregoing persons or of Entegris’ operations on the Premises or anywhere at the 80 Ashby Road facility. 

		
	8.2
	EMD Millipore agrees that during the Term and for such further time as Entegris shall occupy or hold the Premises or any part thereof pursuant to a reasonable claim of right, Entegris shall not be liable to EMD Millipore and EMD Millipore shall defend (with counsel reasonably acceptable to Entegris), indemnify, and hold Entegris, its officers, directors, agents, employees, independent contractors, and invitees harmless from and against any and all liability for all injuries, losses, accidents or damage to any person or property, and from all claims, actions, proceedings and costs in connection therewith, including reasonable counsel fees, to the extent arising from any act, omission, fault or negligence of EMD Millipore, its officers, directors, agents, employees, independent contractors, licensees, or invitees and  relating  to the presence of any of the foregoing persons on the Premises  or relating to EMD Millipore’s operations on the Premises or anywhere at the 80 Ashby Road facility. 

		
	8.3
	Each of EMD Millipore and Entegris hereby releases and waives any claim it might have against the other for any loss or damage caused by theft, destruction, fire or any other casualty, regardless of whether such loss or damage shall be brought about by the fault or negligence of the other party or its agents, to the extent the same (a) is insured against under any insurance policy that covers the Premises or the buildings in which the Premises are located, EMD Millipore’s or Entegris’ fixtures, personal property, leasehold improvements or business, or (b) is required to be insured against under the terms hereof, it being understood and agreed that the waiving party reserves any rights with respect to any excess loss or injury over the amount recovered on account of such insurance.  Each of EMD Millipore and Entegris agrees to cause its insurance carrier to endorse all applicable policies waiving the carrier’s rights of recovery under subrogation or otherwise against the other party. 

		
	8.4
	In addition to its obligations under Section 8.2, EMD Millipore agrees that Entegris shall not be liable to EMD Millipore and EMD Millipore shall defend (with counsel reasonably acceptable to Entegris), indemnify, and hold Entegris, its officers, directors, agents, employees, independent contractors, and invitees harmless from and against any and all liability for all injuries, losses, accidents or damage to any person or property, and from all claims, actions, proceedings and costs in connection therewith, including reasonable counsel fees, arising from any release of hazardous waste by EMD Millipore or its employees or agents in the Premises, only to the extent not caused by Entegris or its employees or agents.

		
	8.5
	In addition to its obligations under Section 8.1, Entegris agrees that EMD Millipore shall not be liable to Entegris and Entegris shall defend (with counsel reasonably acceptable to EMD Millipore), indemnify, and hold EMD Millipore, its officers, directors, agents, employees, independent contractors, and invitees harmless from and against any and all liability for all injuries, losses, accidents or damage to any person or property, and from all claims, actions, proceedings and costs in connection therewith, including reasonable counsel fees, arising from any release of hazardous waste by Entegris or its employees or agents in the Premises, only to the extent not caused by EMD Millipore or its employees or agents.

		
	9.
	Insurance 

		
	9.1
	During the Term, EMD Millipore shall maintain all risk property insurance in an amount at least equal to the replacement cost of (a) the buildings in which the Premises are located and (b) EMD Millipore property and equipment inside those buildings (excluding Entegris’ personal property and any alterations, installations, additions or improvements made to such buildings by Entegris). Such insurance may be maintained under a blanket policy covering the Premises and other real estate of EMD Millipore or its affiliated business organizations.  The policies of such insurance may be payable in case of loss to the holders of any mortgages upon such buildings or the 80 Ashby Road facility as their interests may appear.  Entegris shall be named as an additional insured on such EMD Millipore property insurance, as its interests may appear. Certificates of insurance evidencing all such coverages and Entegris additional insured status for the foregoing shall be supplied to Entegris promptly upon execution of this Agreement and as such policy(ies) renew or are changed.    

		
	9.2
	During the Term, Entegris will maintain at its own expense comprehensive general liability insurance, including umbrella coverage, with respect to the Entegris Equipment and its operations on the Premises, naming EMD Millipore as additional insured, in amounts which shall, as of the Effective Date, be not less than Five Million Dollars ($5,000,000.00) with respect to injuries to any one person and not less than Five Million Dollars ($5,000,000.00) with respect to injuries suffered in any 

one accident, and not less than Five Million Dollars ($5,000,000.00) with respect to property damage liability.  From time to time during the Term, EMD Millipore shall have the right in its reasonable discretion to require that the limits of such insurance coverage be increased, provided however, that such increases shall be in accordance with limits that are customarily carried in the metropolitan Boston area on property similar to the Premises used for similar purposes. 
		
	9.3
	During the Term, Entegris shall maintain workers compensation insurance covering all of Entegris’ employees in such coverage amounts as required by law and employer’s liability insurance in an amount of at least Five Hundred Thousand Dollars ($500,000.00). During the Term, Entegris shall maintain all risk property insurance in an amount at least equal to the replacement cost of Entegris’ personal property on the Premises and any other alterations, installations, additions or improvements made to the Premises by Entegris. Said replacement cost for Entegris property shall be clearly delineated and summarized promptly upon execution of this Agreement, at each renewal/change of said Entegris property policies, or at any other point of significant change in magnitude of Entegris properties on EMD Millipore Premises. During the Term Entegris shall maintain comprehensive automobile liability insurance in an amount of at least Five Hundred Thousand Dollars ($500,000.00) per person and per accident for bodily injury, and of at least One Hundred Thousand Dollars ($100,000) per accident for property damage.  EMD Millipore shall be named as an additional insured on the foregoing Entegris employer’s liability, property, and automobile liability insurances, as its interests may appear. Certificates of insurance evidencing all such coverages and EMD Millipore additional insured status for the foregoing and for comprehensive general liability and umbrella liability coverages shall be supplied to EMD Millipore promptly upon execution of this Agreement and as any policies renew or are changed.  

		
	9.4
	All policies of insurance obtained by Entegris pursuant to the terms of this Lease shall be issued by insurance companies reasonably acceptable to EMD Millipore and authorized to do business in the Commonwealth of Massachusetts.  All such policies shall provide for no less than thirty (30) days prior notice to EMD Millipore and any mortgagee of the Premises of their commencement or cancellation.  Within ten (10) days after execution of this Agreement, Entegris shall deliver to EMD Millipore certificates thereof.  Entegris shall also deliver to EMD Millipore each renewal certificate thereof as soon as is reasonably practicable after receiving request therefore by any mortgage lender of EMD Millipore and at least fifteen (15) days prior to the expiration of the policy it renews.  If Entegris fails to obtain and maintain any insurance policies required to be obtained and maintained by Entegris pursuant to Section 9.2 or 9.3 of these Lease Terms, then, after written notice to Entegris of its intention to do so and notification from Entegris of its unwillingness or inability to acquire such insurance coverages, EMD Millipore may obtain and maintain such insurance policies (without creating any obligation on behalf of EMD Millipore to do so), and Entegris shall pay to EMD Millipore the cost thereof within ten (10) days after EMD Millipore has invoiced Entegris therefor, and until paid, such amount shall be additional Rent.

		
	10.
	Casualty or Taking

		
	10.1  
	In the event that the Premises, or more than 25% thereof, shall be taken by any public authority or for any public use, or shall be destroyed or damaged by fire or casualty, or by the action of any public authority, and the same cannot, in EMD Millipore’s reasonable judgment, be restored within 180 days from such taking or casualty, or if in Entegris’ reasonable judgment, such circumstance would prevent it from continuing the conduct of its manufacturing operations at the Premises substantially in the manner contemplated under this Agreement, then this Agreement  may be terminated at the election of either EMD Millipore or Entegris.  Such election shall be made by either Party, by the giving of notice to the other Party within thirty (30) days following such taking or casualty. 

		
	10.2  
	If neither EMD Millipore nor Entegris exercises said election, this Agreement shall continue in force and a just proportion of the Rent reserved, as mutually agreed between the Parties, according to the nature and extent of the damages sustained by the Premises, shall be suspended or abated until the Premises, or what may remain thereof, shall be put by EMD Millipore in proper condition for use and otherwise restored to its former condition or the substantial equivalent, which EMD Millipore covenants to do with reasonable diligence to the extent permitted by the net proceeds of insurance recovered or damages awarded for such taking, destruction or damage and subject to zoning and building laws or ordinances then in existence.  “Net proceeds of insurance recovered or damages awarded” refers to the gross amount of such insurance or damages less the reasonable expenses of EMD Millipore in connection with the collection of the same, including without limitation, fees and expenses for legal and appraisal services.  If the Premises are not so restored to its former condition or the substantial equivalent within one-hundred eighty (180) days from such taking or casualty described in Section 10.1 of these Lease Terms, this Agreement may be terminated by Entegris upon thirty (30) days prior written notice to EMD Millipore but only if such restoration is not completed prior to the expiration of the 30 day notice period.

		
	11. 
	Defaults and Remedies

		
	11.1  
	Events of Default.  If Entegris shall default in the performance of any of its obligations to pay the Rent hereunder and if such default shall continue for thirty (30) days after written notice from EMD Millipore designating such default, or if within thirty (30) days after written notice from EMD Millipore to Entegris specifying any other default or defaults and Entegris has not then commenced diligently to correct the default or defaults so specified, then, and in either of such events, EMD Millipore 

and the agents and servants of EMD Millipore lawfully may, (in addition to and not in derogation of any remedies for any preceding breach of covenant), immediately or at any time thereafter and after demand and notice and without process of law enter into and upon the Premises or any part thereof or mail a notice of termination addressed to Entegris, and repossess the same as EMD Millipore’s former estate and expel Entegris and those claiming through or under Entegris and remove its and their effects without being deemed guilty of any manner of trespass and without prejudice to any remedies which might otherwise be used for arrears of rent or prior breach of covenant, and upon such entry or mailing as aforesaid this Agreement shall terminate, and EMD Millipore, with  notice to Entegris, may store Entegris’ effects, and those of any person claiming through or under Entegris at the expense and risk of Entegris. 
		
	11.2  
	EMD Millipore may, but shall not be obligated to, cure, at any time, following the expiration of the applicable cure period as set forth in Section 11.1 except in cases of emergency when no notice shall be required, any material default by Entegris under these Lease Terms; and whenever EMD Millipore so elects, all direct and reasonable costs and expenses incurred by EMD Millipore, including reasonable attorneys’ fees, in curing a material default shall be paid by Entegris to EMD Millipore on demand.

		
	12. 
	At all times during the Term, EMD Millipore reserves the right for its employees or contractors to enter the Premises as it determines necessary or desirable,  for purposes of (i) ensuring compliance with this Agreement, (ii) health, safety and environmental compliance, (iii) maintenance or repair as required or permitted under this Agreement, or (iii) other reasonable purposes relating to the Premises or to any areas of its 80 Ashby Road facility other than the Premises, provided in each case that such entry into the Premises does not unreasonably interfere with Entegris’ use of the Premises.  EMD Millipore shall provide advance notice of such entry to Entegris where reasonably practicable.  

		
	13.
	Entegris shall not, without EMD Millipore’s prior written consent, (a) assign, transfer, or encumber this Agreement or any interest therein, whether directly or by operation of law, (b) sublet any portion of the Premises; (c) grant any license, concession or other right of occupancy for any portion of the Premises; or (d) permit the use of the Premises by any parties other than Entegris.  The foregoing provisions shall not apply to either (x) transactions with an entity into which Entegris is merged or consolidated or to which all or substantially all of its assets are transferred, or (y) transactions with any entity which controls Entegris or is controlled by Entegris or is under common control with Entegris. 

		
	14.
	Subject to the provisions of these Lease Terms, including but not limited to Section 5 hereof, EMD Millipore covenants and warrants that upon performance by Entegris of its obligations under these Lease Terms, EMD Millipore will keep and maintain Entegris in exclusive, quiet, peaceable, and uninterrupted possession of the Premises during the Term.  

		
	15.
	EMD Millipore shall at all times comply with all laws, orders, ordinances and other public requirements now or hereafter affecting the Premises. 

		
	16.
	Any obligation of either party to indemnify the other party pursuant to these Lease Terms or this Agreement shall be barred or limited to the extent that failure of the Indemnified Party to give prompt notice to the Indemnifying Party of a claim giving rise to such indemnification obligation, or failure of the Indemnified Party to provide the Indemnifying Party with all reasonably necessary assistance and cooperation in connection therewith, prejudices the position of the Indemnifying Party in providing such indemnity hereunder.  The Indemnifying Party shall have sole control of the defense with respect to any such claim (including settlement thereof).   The Indemnifying Party shall keep the Indemnified Party informed at all times as to the status of the matter and the Indemnifying Party’s efforts in connection therewith. The Indemnifying Party shall not settle any such claim whereby the settlement imposes upon the Indemnified Party an obligation to take some action or refrain from doing so, without the prior written consent of the Indemnified Party, which shall not be unreasonably withheld or delayed. 

		
	17.
	Neither Party shall unreasonably withhold or delay its consent with respect to any matter for which such Party’s consent is required or desirable under these Lease Terms or this Agreement. 

In witness whereof, the Parties set forth their signatures below by their authorized representatives:

	
		
	EMD MILLIPORE CORPORATION
	ENTEGRIS, INC.

	 
	 

	 
	 

	By:   /s/ Christos Ross                    .
	By:      /s/ Bertrand Loy                    .

	Name: Christos Ross
	Name: Bertrand Loy

	Title:Senior V.P., Head of Operations
	Title:President and Chief Executive  Officer

EXHIBIT C
The Supplement

Membrane Manufacturing Operations
		
	1.
	Film 1 Manufacturing Operations

1.1.    EMD Millipore retains ownership of the EMD Millipore Equipment including the related processes (financially and operationally).  Entegris retains ownership of the Entegris Equipment including the related processes (financially and operationally).
1.2.    At all times during the Term, EMD Millipore agrees to have (i) Film 1 Annealing Line processing capacity sufficient to handle projected volumes Flat Sheet UPE Membrane hereunder of up 1,400 hours per quarter of Entegris operating time, and (ii) mix capacity sufficient to handle up to four (4) mixes of 400 pounds each on any days on which Entegris is running its extrusion process on the Premises.  EMD Millipore agrees to use commercially reasonable efforts to provide Entegris with additional Film 1 operating time as follows:  (i) for the period from the Effective Date through March 31, 2014, a Target quantity of 1,600 hours of Entegris Film 1 operating time per quarter; and (ii) for the period from April 1, 2014 through the end of the Term, a Target total quantity of 1,800 hours of Entegris Film 1 operating time per quarter.
1. 3.    The Film 1 Annealing Line manufacturing process will be staffed by regular EMD Millipore employees when possible and supervised / managed by EMD Millipore.  Only regular EMD Millipore employees certified on Film I operations will be rotated into Film I manufacturing operations.  Exceptions may include new or contract employees under supervision of an employee certified for Film 1 operation.
1. 4.    Entegris is responsible for technical direction as to all process operating conditions (a la EMD Millipore Product Owner model) for UPE Film 1 manufacturing activities.
1.5.    Entegris is responsible for UPE process development.
1.6.    Entegris is responsible for documentation and training for changes to the job content for UPE processing on Film I. 
1.7.    EMD Millipore is responsible for maintaining and repairing Film 1 manufacturing equipment to be in good and efficient working order.
1.8.    EMD Millipore proposed modifications for non-Entegris UPE membranes that could influence UPE running on Film I process will be subject to mutual agreement.
1.9.    Priorities during the time when UPE is running on the Film 1 Annealing Line shall be established by Entegris, subject to EMD Millipore’s recommendations for run priorities for EMD Millipore Flat Sheet UPE Membranes.
1.10.    EMD Millipore will give Entegris advance notice of the schedule for pending runs of non-Entegris UPE membranes on Film 1 Annealing Line.  This notice would consist of a quarterly schedule with monthly updates. 
1.11.    All of the foregoing obligations of both parties under this Section 1 shall expire on the earlier of (i) the expiration of the Term, or (ii) the date Entegris no longer requires the operation of the Film 1 Annealing Line at the Premises.
1.12.    EMD Millipore shall have approval authority for any Entegris proposed modifications to Film 1 manufacturing process for Flat Sheet UPE Membranes.  The financial impact of those modifications would be mutually agreed upon prior to proceeding.

		
	2.
	VMF 4 Manufacturing Operations

2.1    At all times during the Term of this Agreement, EMD Millipore agrees to have VMF4 Line capacity sufficient to handle projected volumes of Flat Sheet UPE Membranes that are to be chemically treated to make them hydrophyllic using EMD Millipore’s VMF4 Line or using EMD Millipore’s VMF4 technology, of up to 500 hours of machine time per quarter.    The Parties agree to use commercially reasonable efforts to cooperate to increase the efficiency of their respective use of the VMF 4 machine in order to satisfy Entegris’ demand within the above specified 500 hours of machine time per quarter.

2.2.    Entegris will submit its estimated VMF 4 total quarterly requirements prior to the beginning of each quarter including both Entegris production requirements and R&D requirements.  
2.3.     These requirements will be translated by EMD Millipore into an adequate number of production days to meet the quarter’s estimated requirements.  These days will be identified in a quarterly schedule by EMD Millipore which shall be routinely available to Entegris.  Schedule changes during the quarter will be reflected in an update to the quarterly schedule and communicated to Entegris in a timely fashion.  
2.4.    Entegris shall have control of the detailed schedule for operations during these Entegris dedicated days and will, in-turn, provide EMD Millipore with the detailed schedule for the Entegris dedicated days at least one week in advance.
2.5.    In the event of a high priority urgent need combined with no Entegris time scheduled within an upcoming two week window, Entegris shall be entitled to a 24 hour emergency run on the VMF 4 equipment within the following week.  This right is intended only in case of emergency and it is anticipated that this set of circumstances would only come up during times of low Entegris volume on VMF 4.
2.6.    Entegris shall be entitled to propose corrections to the dedicated operating schedule for the quarter to EMD Millipore; subject to mutual agreement, the schedule of Entegris dedicated days will be revised accordingly for the remainder of the quarter.
2.7.    Detailed plans for periods of Entegris R&D VMF 4 operations will be submitted in advance to EMD Millipore.  Where proposed R&D operations involve extensions of existing chemistries on UPE substrates, this pre-notification would need to be at least one week in advance and will be subject to EMD Millipore’s approval.  Where proposed R&D operations involve new chemistries or new substrates, Entegris shall advise EMD Millipore of that fact and shall submit any details that EMD Millipore reasonably requests and will be subject to EMD Millipore’s approval within one month following the submission.  In the event that EMD Millipore does not give its approval, it shall advise Entegris as to the reasons why the proposal was not acceptable in reasonable detail and shall consult with Entegris as to alternatives that might be acceptable.
2.8.    EMD Millipore will continue to be responsible for planning, procurement and performance of incoming QC of all standard chemicals in support of the Entegris dedicated VMF 4 operating schedule for each quarter. Any non-standard chemicals required for Entegris R&D operations will be provided by Entegris R&D.
2.9.    Entegris documentation shall govern production of all Entegris RTM'd products.  With consultation support from EMD Millipore as may be required, Entegris shall also be responsible for the upgrade and updating of all Entegris documentation and for notification and training of the EMD Millipore Supervisor and Product Owner as designated by EMD Millipore.
2.10.    VMF 4 operations shall be staffed by regular EMD Millipore employees where possible and supervised /managed by qualified EMD Millipore personnel.  VMF 4 operations will always be staffed by at least one employee certified in the operation of VMF 4.
2.11.    Entegris shall be responsible for UPE process development with respect to hydrophilic membranes. 
2.12.    EMD Millipore shall be responsible for maintaining and repairing all VMF 4 equipment in good and efficient working order. 
2.13.    EMD Millipore shall be responsible for supervision, technical direction and support during the running of standard Entegris production materials and this routine supervision and support, as well as all other services provided pursuant to this Agreement in connection with Membrane manufacture, is included within the rate structure specified in Section 7.3 of the Agreement.  
2.14.    Identified Entegris contact(s) must be available 24 hours per day for technical consultation.
2.15.    EMD Millipore shall have approval authority with respect to any Entegris proposed modifications to VMF 4 equipment for Treated Flat Sheet UPE Membrane processing.  EMD Millipore agrees that proposed modifications to the VMF4 equipment for any Flat Sheet UPE Membrane other than Treated Flat Sheet UPE Membrane processing that could influence the processing of Treated Flat Sheet UPE Membranes on the VMF 4 equipment shall be reviewed with Entegris and shall be subject to mutual agreement.
2.16.    Entegris may shift production of its membranes to its own hydrophilization machine (to be located at a Entegris location).  Any such shifting of production shall not result in a termination of the Agreement , which may be only be terminated in accordance with its terms.

		
	3.
	Minimum Lot Size and Minimum Scrap levels for VMF 4 and Film I Production

3.1.    Entegris shall not be responsible for time & materials for unsuccessful VMF 4 campaigns > 3 rolls in duration where phobic membrane is determined not to be the cause, unless Entegris authorizes extending the run beyond three rolls - in which case Entegris will document that authorization in the form of an email or letter.
3.2.    Entegris shall not be responsible for the cost of time and materials incurred in unsuccessful VMF 4 process runs where it is demonstrated that EMD Millipore failed to adhere to the process documentation and to Entegris’ technical directions.
3.3.    Entegris shall not be responsible for the cost of time and materials incurred in unsuccessful Film 1 process runs where it is demonstrated that EMD Millipore failed to adhere to the process documentation and to Entegris’ technical directions.

		
	4.
	Charges for Machine Usage; Changes

4.1.    Entegris agrees to pay for Machine usage hereunder by paying the applicable Machine Hourly Rates specified on any annex hereto or as otherwise agreed in writing by the Parties multiplied times the Machine Usage Hours calculated in accordance with the formula specified any annex hereto or as otherwise agreed in writing by the Parties.
4.2    Changes to depreciation charges as a result of capital improvements to the Equipment will be reflected in the appropriate work center rates.  EMD Millipore and Entegris each agree to inform the other of capital purchases that may affect work center rates hereunder no later than the time that purchase orders for such capital purchases are placed.  In the event of a process change to either the Film 1 or VMF4 lines, EMD Millipore shall be responsible for change control management for any impact on EMD Millipore products.  Likewise, Entegris would be responsible for change control management for any impact on Entegris products.

		
	5.
	Revised Responsibilities for Regulatory & HSE Compliance

5.1    Responsibilities.
Current responsibilities shall be revised to reflect current operating procedures, including:  Entegris has assumed full responsibility for waste disposal in connection with waste generated by the Entegris Equipment. Millipore continues to provide spill control support to ensure prompt response to any emergency situation, however, Entegris is responsible for any follow-up actions that are required as a result of any emergency situation. VMF 4 waste treatment costs continue to be included in VMF 4 rates. 
Entegris is solely responsible for the generation, control, compliance and reporting of chemical emissions resulting from its dedicated operations located at the Premises.  EMD Millipore is responsible for the generation, control, compliance and reporting of chemical emissions from its operations.  Where Entegris products are processed on EMD Millipore Equipment, Entegris and EMD Millipore will work together to ensure compliance with federal, state and local regulations, and conformance with EHS self certifications programs similar to ISO 14001. Furthermore, as dedicated Entegris-owned operations may have a potential impact on the surrounding community, Entegris agrees to continue to make commercially reasonable attempts to lessen the environmental impact of its operations at the Premises and to notify EMD Millipore of any chemical spills, notices of non-compliance or inspections.
5.2    Incident Response.
Entegris shall notify EMD Millipore of all spills or releases from Entegris operations in the Premises greater than the Reportable Quantity, as defined by the Commonwealth of Massachusetts and Town of Bedford, whichever is less. Entegris is responsible for timely notification and applicable follow up of regulatory agencies, as required by law or best practice.  For any such spill or release, Entegris shall ensure a clean up scheme that follows all of the requirements set forth in OSHA 29 CFR 1910.120 - Hazardous Waste Operation and Emergency Response, and the Massachusetts Contingency Plan, 310 CMR 40.  In the event of a spill or release from an Entegris process requiring a clean up, Millipore shall provide Entegris with clean-up services using EMD Millipore Corporation’s Emergency Response Team.  In the event of a spill or release from an Entegris process requiring a clean up using EMD Millipore’s Emergency Response Team, EMD Millipore will conduct any cleanup services with the same degree of care it would use to respond to a spill or release from an EMD Millipore process and shall be compensated by Entegris at the rates set forth on any annex hereto or as otherwise agreed in writing by the Parties; provided, that Entegris will compensate EMD Millipore for at least 4 hours in the event of any such incident.
Entegris shall also compensate EMD Millipore for all reasonable and customary costs associated with engaging professional consulting services with respect to any spills or releases from Entegris operations in the Premises, as deemed appropriate by EMD Millipore’s corporate EHS department and approved by Entegris’ corporate EHS department (such approval not to be unreasonably withheld or delayed, provided that if EMD Millipore reasonably 

deems the need for such consulting services urgent, such as an emergency response, and cannot reach an Entegris representative in a timely manner after diligent efforts to obtain Entegris’ approval, EMD Millipore may proceed on a limited basis to address such urgent situation without Entegris’ prior approval but shall notify Entegris promptly) as a result of the aforementioned spills or releases. Entegris shall also reimburse EMD Millipore for all supplies consumed during the response event.  Entegris shall be responsible for appropriate disposal of wastes associated with any clean-up.
Entegris may also contract with a third party that meets the requirements of OSHA 29 CFR 1910.120 - Hazardous Waste Operation and Emergency Response in lieu of using EMD Millipore’s Emergency Response Team. 
5.3    Equipment Operability and Risk Mitigation.
Entegris shall perform an initial process hazard analysis (hazard evaluation), and proactively manage any subsequent changes, on any process or equipment (“Processes”) proposed for installation or use on Millipore managed property.  The process hazard analysis shall be completed with current process safety information and be reasonable with respect to the complexity of the Processes and shall identify, evaluate, and mitigate hazards involved in the Processes.  Entegris shall conduct and implement the process hazard analysis and a management of change procedure in a manner consistent with OSHA 29 CFR 1910.119 - Process Safety Management and in conjunction and consultation with EMD Millipore’s EHS staff.  Entegris shall implement all reasonable corrective actions or improvements identified by the process hazard analysis in a timely manner and at its sole expense, in all cases in accordance with applicable regulatory and reasonable EMD Millipore requirements, unless such corrective actions are facility related, in which case such actions will be at the expense of Millipore to the extent not caused by Entegris. Copies of the process hazard analysis, corrective actions and implementation schedules shall be provided to EMD Millipore promptly upon availability. Furthermore, all applicable process safety information will be updated with any change to the process not considered a replacement in kind.

		
	6.
	Entegris Option to Assume Supply Chain Responsibilities

6.1.    During the Facility Term, upon six months prior notice to EMD Millipore, Entegris shall have the option to assume responsibility for planning and procurement for all raw materials used in the manufacture of UPE Membranes and Treated Other Entegris Membranes.  If Entegris assumes this responsibility, Entegris shall be accountable for un-utilized machine time occurring as a result of raw material availability if Millipore cannot utilize that machine time for any alternative membranes.  After the Facility Term, Entegris will have all, and Millipore will have no, responsibility for planning and procurement of any raw materials (other than with respect to VMF4) unless the parties otherwise agree in writing.
6.2.    Notwithstanding the exercise by Entegris of the option in 6.1, Entegris shall continue to be entitled to contract with EMD Millipore for incoming quality control services.

		
	7.
	Resolution of Technical Issues; Technical Support.

7.1.    It is recognized that there are some inconsistencies with respect to visual quality between “Entegris Test Specification #0008393TS“ and the EMD Millipore Purchase Specifications as in effect on the Effective Date, the Parties agree to continue discussions to resolve these inconsistencies. Entegris Test Specification #0008393TS and the EMD Millipore Purchase Specifications will be modified and harmonized by mutual agreement of the Parties so as to apply to the functional equivalent of EMD Millipore Flat Sheet UPE Membrane manufactured at the Crosby Drive Plant.
7.2.    In the event of chronic low yielding runs, Entegris can issue a corrective action request.  This request would result in a inter-company meeting(s) to develop a mutually agreed upon corrective action plan within two weeks of the issuance of the request.
7.3.    EMD Millipore will support this activity with at least one mutually agreed upon representative (usually the Production Supervisor and / or the EMD Millipore Product Owner).
7.4.    In the event that this vehicle is unsuccessful in resolving the issue, the corrective action team will be supported by additional mutually agreed upon representatives with special expertise from both/either EMD Millipore and Entegris.  The cost of Millipore support for this "above and beyond" technical support will be at the technical support rate established in accordance with Section 3.2 of the Agreement. 

7.5.    In accordance with Section 3.2 of the Agreement if EMD Millipore provides extraordinary services or technical support to Entegris or if Entegris provides extraordinary services or technical support to EMD Millipore in each case in the circumstances referred to in Section 3.2, then the Party supplying such extraordinary services or 

technical support shall be compensated at the Support Services Rates provided on any annex hereto or other written agreement of the Parties.  The Parties further agree that in providing any such extraordinary services or technical support to the other Party hereunder they shall use commercially reasonable efforts to assure that any such extraordinary services or technical support shall be provided in a diligent, competent and professional manner.

Exhibit D
Qualification Stages and Tests

1.    Feasibility Evaluation Stage:
Objective and Outline of Feasibility Evaluation.  The objective of the Feasibility Evaluation is to permit EMD Millipore to fabricate UPDP type Crosby Membrane and UPHP type Crosby Membrane into sample EMD Millipore products so as to compare the performance of such sample EMD Millipore products with the performance of the same EMD Millipore products made from the corresponding types of EMD Millipore Flat Sheet UPE Membrane manufactured at the Premises.  This is a critical evaluation in order to promptly identify and communicate to Entegris any significant performance differences between the EMD Millipore products made from the feasibility sample Crosby Membranes and the EMD Millipore products made from EMD Millipore Flat Sheet UPE Membrane manufactured at the Premises.  It is agreed that the feasibility samples delivered by Entegris in accordance with Section 6.3(i) will be the first UPDP type Crosby Membrane and UPHP type Crosby Membrane that meet the Specifications.  Entegris will use commercially reasonable efforts to deliver the feasibility samples to EMD Millipore by a Target date of November 15, 2013; EMD Millipore will use commercially reasonable efforts to provide Entegris with performance data yielded by the testing conducted on the feasibility samples by a Target date of thirty (30) days following receipt of the feasibility samples.  The validation and qualification testing of the feasibility samples by EMD Millipore shall be conducted pursuant to protocols set forth in any annex hereto or as otherwise agreed in writing by the Parties.

2.    Operational Qualification Stage:
Objective and Outline of Operational Qualification.  The objective of the Operational Qualification is to conduct a sensitivity analysis as to the performance of UPDP type Crosby Membrane and UPHP type Crosby Membrane fabricated to be at the extreme ends of the Specification range with respect to two independent criteria included in the Specifications.  To that end Entegris will deliver the following operational samples with the indicated characteristics with respect to the specified Specification criteria:
		
	(a)
	Ten (10) rolls of UPDP type Crosby Membrane with thickness in the middle of the range required by the Specifications and a bubble point at the top of the range required by the Specifications;

		
	(b)
	Ten (10) rolls of UPDP type Crosby Membrane with thickness in the middle of the range required by the Specifications and a bubble point at the bottom of the range required by the Specifications;

		
	(c)
	Ten (10) rolls of UPDP type Crosby Membrane with bubble point in the middle of the range required by the Specifications and a thickness at the top of the range required by the Specifications;

		
	(d)
	Ten (10) rolls of UPDP type Crosby Membrane with bubble point in the middle of the range required by the Specifications and a thickness at the bottom of the range required by the Specifications;

		
	(e)
	Six (6) rolls of UPHP type Crosby Membrane with thickness in the middle of the range required by the Specifications and a bubble point at the top of the range required by the Specifications;

		
	(f)
	Six (6) rolls of UPHP type Crosby Membrane with thickness in the middle of the range required by the Specifications and a bubble point at the bottom of the range required by the Specifications;

		
	(g)
	Six (6) rolls of UPHP type Crosby Membrane with bubble point in the middle of the range required by the Specifications and a thickness at the top of the range required by the Specifications;

		
	(h)
	Six (6) rolls of UPHP type Crosby Membrane with bubble point in the middle of the range required by the Specifications and a thickness at the bottom of the range required by the Specifications.

The above specified numbers of the rolls of operational samples may be reduced to eliminate the quantities specified in clauses (c), (d), (g) & (h) to the extent that the machinery producing the Crosby Membrane can be shown to reliably produce a consistent thickness within Specification of the respective type of Crosby Membrane, and after review and approval by EMD Millipore, which approval shall not be unreasonably withheld or delayed.  As provided in Section 6.3(ii) above, the first four rolls of each of the configurations of operational samples specified in clauses (a) through 

(h) above shall be free of charge; the remaining operational samples shall be purchased by EMD Millipore in accordance with Section 6.3(ii).

Entegris will use commercially reasonable efforts to deliver the operational samples to EMD Millipore by a Target date of February 18, 2014; EMD Millipore will use commercially reasonable efforts to provide Entegris with performance data yielded by the testing conducted on the operational samples by a Target date of five (5) months following receipt of the final operational samples.  The validation and qualification testing of the operational samples by EMD Millipore shall be conducted pursuant to protocols set forth in any annex hereto or as otherwise agreed in writing by the Parties

3.    Performance Qualification Stage:
Objective and Outline of Performance Qualification.  The objective of the Performance Qualification is to conduct a final performance evaluation of performance qualification samples of UPDP type Crosby Membrane and UPHP type Crosby Membrane fabricated to have both bubble point and thickness in the middle of the range required by the Specifications.  It is expected that these performance qualification samples will be confirmed as meeting the Specifications and will be accepted as finished product to replace EMD Millipore Flat Sheet UPE Membrane manufactured at the Premises.  The validation and qualification testing of the performance qualification samples by EMD Millipore shall be conducted pursuant to protocols set forth in any annex hereto or as otherwise agreed in writing by the Parties.  Entegris shall use commercially reasonable efforts to deliver the performance qualification samples for purchase by EMD Millipore in three lots each comprised of twelve (12) rolls of UPDP type Crosby Membrane and six (6) rolls of UPHP type Crosby Membrane by a Target date of July 1, 2014.

Entegris shall use commercially reasonable efforts to deliver to EMD Millipore a written performance qualification report by a Target date of four (4) weeks after delivery of the performance qualification samples identifying the lots of performance qualification samples delivered.

EMD Millipore will use commercially reasonable efforts to provide Entegris with confirmation that the above performance qualification samples are accepted as finished product meeting the Specifications to replace EMD Millipore Flat Sheet UPE Membrane manufactured at the Premises by a Target date of fifteen (15) months following receipt of the third lot of performance qualification samples.  

Attachment 1
List of EMD Millipore Equipment

Item#    Description    Current Location    Quantity
1.    Slurry Mix Stations; Control Modules 1-3    Bldg C -105    3
2.    Film 1 Annealing Line    Bldg. C-123    1
3.    VMF 4 Line (chemical modification)    Bldg. C-124    1
4.    Testing: Flow, Wet Time, Stability    Bldg.C-124    various
5.     Monomer Chemical Mixing Stations 4-6    Bldg. C-105    3

Attachment 2
List of Entegris Equipment

Item#    Description    Current Location    Quantity
1.    Slurry Mixing Vessels    Bldg C - Mix Room    2
2.    Extrusion Line & support
equipment (cranes, vents etc.)    Bldg D - 101    1
3.    NZE Extractors & support
equipment (scales, vents etc.)     Bldg C - 103    2
4.    Release/Testing Equipment
(porosimeter, flow stands, 
VBP stands, digital dimension 
equipment)    Bldg D-101    1
5.    Monomer Chemical Mixing 
Vessel (for philic Flat Sheet 
UPE Membranes)    Bldg C-Mix Room    1
6.    MSR Batch Extractors &
support equipment (cranes, 
LS-15, etc.)    Bldg D-101    3
7.    Release/Testing Equipment
(flow stands, VBP stands, digital
dimension equipment)     Bldg F-Cell 5    1
8.    CUPE Mix/recirculation
Pumps    Bldg C-Mix Room    2
9.    NZE Chiller Loop (~100 Tons)    Bldg C-Roof    1

10.    Oil Mist Collector (and duct/hood)    Bldg D-101    1
11.    7 Ton Edwards Chiller    Bldg D-outside    1
12.    Tiyoda-Serec Extractor    Bldg F-Cell 5    1
13.    Tiyoda-Serec Ext 42 Ton Chiller    Bldg C-roof    1EXHIBIT 4.2

 

Execution Version

 

 

 

 

SERIES 2014-1 INDENTURE SUPPLEMENT

 

 

between

 

 

FORD CREDIT FLOORPLAN MASTER OWNER TRUST A,
 as Issuer

 

 

and

 

 

THE BANK OF NEW YORK MELLON,
 as Indenture Trustee

 

 

Dated as of February 1, 2014

 

 

 

 

 

TABLE OF CONTENTS

 

	
ARTICLE I USAGE AND   DEFINITIONS
    	
1
    
	
Section 1.1.
    	
Usage and Definitions
    	
1
    
	
Section 1.2.
    	
Defined Terms for Other Series
    	
15
    
	
 
    	
 
    	
 
    
	
ARTICLE II CREATION OF   SERIES 2014-1 NOTES
    	
15
    
	
Section 2.1.
    	
Principal Terms of Series 2014-1 Notes
    	
15
    
	
Section 2.2.
    	
Additional Issuance; Reopening
    	
17
    
	
Section 2.3.
    	
Payments
    	
18
    
	
 
    	
 
    	
 
    
	
ARTICLE III REPORTS AND   SERVICING
    	
18
    
	
Section 3.1.
    	
Reports and Statements to Noteholders of Series 2014-1   Notes
    	
18
    
	
Section 3.2.
    	
Servicing Compensation
    	
19
    
	
 
    	
 
    	
 
    
	
ARTICLE IV RIGHTS OF   NOTEHOLDERS OF SERIES 2014-1 NOTES AND ALLOCATION AND APPLICATION OF   COLLECTIONS
    	
19
    
	
Section 4.1.
    	
Collections and Allocations
    	
19
    
	
Section 4.2.
    	
Application of Available Funds in Collection Account and   Other Sources
    	
22
    
	
Section 4.3.
    	
Investor Charge-Offs
    	
26
    
	
Section 4.4.
    	
Reallocated Principal Collections
    	
26
    
	
Section 4.5.
    	
Excess Interest Collections
    	
26
    
	
Section 4.6.
    	
Shared Principal Collections
    	
26
    
	
Section 4.7.
    	
Series 2014-1 Accounts
    	
26
    
	
Section 4.8.
    	
Permitted Investments
    	
28
    
	
Section 4.9.
    	
Investment Instructions
    	
29
    
	
Section 4.10.
    	
Determination and Notification of LIBOR
    	
29
    
	
 
    	
 
    	
 
    
	
ARTICLE V THE NOTES
    	
29
    
	
Section 5.1.
    	
Retention By Depositors
    	
29
    
	
Section 5.2.
    	
Securities Act Restrictions
    	
29
    
	
Section 5.3.
    	
Note Owner Representations
    	
30
    
	
Section 5.4.
    	
Amendments to Comply with Law Relating to Restricted   Securities
    	
31
    
	
 
    	
 
    	
 
    
	
ARTICLE VI SERIES 2014-1   AMORTIZATION EVENTS
    	
31
    
	
Section 6.1.
    	
Series 2014-1 Amortization Events
    	
31
    
	
 
    	
 
    	
 
    
	
ARTICLE VII SERIES FINAL   MATURITY; FINAL PAYMENTS
    	
33
    
	
Section 7.1.
    	
Series Final Maturity
    	
33
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII MISCELLANEOUS   PROVISIONS
    	
33
    
	
Section 8.1.
    	
Ratification of Agreement
    	
33
    
	
Section 8.2.
    	
Counterparts
    	
34
    
	
Section 8.3.
    	
GOVERNING LAW
    	
34
    
	
 
    	
 
    	
 
    
	
Exhibit A
    	
Form of   Class [A/B/C/D] Note
    	
A-1
    
	
Exhibit B
    	
Form of   Monthly Investor Report
    	
B-1
    
				

 

i

 

SERIES 2014-1 INDENTURE SUPPLEMENT, dated as of February 1, 2014 (this “Indenture Supplement”), between FORD CREDIT FLOORPLAN MASTER OWNER TRUST A, a Delaware statutory trust, as Issuer, and THE BANK OF NEW YORK MELLON, a New York banking corporation, as Indenture Trustee.

 

BACKGROUND

 

Section 2.2 of the Indenture provides, among other things, that the Issuer and the Indenture Trustee may at any time enter into an Indenture Supplement to authorize the issuance by the Issuer of Notes in one or more Series.

 

The parties to this Indenture Supplement, by executing and delivering this Indenture Supplement, are providing for the creation and specifying the Principal Terms of the Series 2014-1 Notes.

 

The parties agree as follows:

 

GRANTING CLAUSES

 

In addition to the Grant of the Indenture, the Issuer Grants to the Indenture Trustee, as Indenture Trustee for the benefit of the Series 2014-1 Noteholders, all of the Issuer’s right, title and interest, whether now owned or hereafter acquired, in, to and under the Series 2014-1 Collateral.

 

The foregoing Grant is made in trust to secure (a) the payment of principal of, interest on and any other amounts owing in respect of the Series 2014-1 Notes as provided in the Indenture and this Indenture Supplement for the benefit of the Series 2014-1 Noteholders and (b) compliance by the Issuer with the provisions of the Indenture and this Indenture Supplement, all as provided in the Series 2014-1 Notes, the Indenture and this Indenture Supplement.

 

The Indenture Trustee acknowledges such Grant, accepts the trusts under this Indenture Supplement in accordance with this Indenture Supplement and agrees to perform the duties in this Indenture Supplement so that the interests of the Series 2014-1 Noteholders may be adequately protected.

 

ARTICLE I
 USAGE AND DEFINITIONS

 

Section 1.1.           Usage and Definitions.  Capitalized terms used but not otherwise defined in this Indenture Supplement are defined in Appendix A to (a) the Fifth Amended and Restated Sale and Servicing Agreement, dated as of August 1, 2001, as amended and restated as of December 1, 2010, among Ford Credit Floorplan Corporation, as Depositor, the Issuer and Ford Motor Credit Company LLC, as Servicer, and (b) the Fifth Amended and Restated Sale and Servicing Agreement, dated as of August 1, 2001, as amended and restated as of December 1, 2010, among Ford Credit Floorplan LLC, as Depositor, the Issuer and the Servicer.  Each Appendix A also contains rules as to usage applicable to this Indenture Supplement.  Each Appendix A is incorporated by reference into this Indenture Supplement.

 

 

In addition, the following terms have the following meanings:

 

“Accrued Note Interest” means, for a Class and a Payment Date, the sum of the Note Monthly Interest and the Note Interest Shortfall for such Class.

 

“Accumulation Period Factor” means, for any Collection Period, a fraction:

 

(a)                                 the numerator of which equals the sum of the “Initial Invested Amounts” of all Series in Principal Sharing Group One; and

 

(b)                                 the denominator of which equals the sum of (i) the Initial Invested Amount, plus (ii) the “Initial Invested Amounts” of all Series in Principal Sharing Group One, other than Series 2014-1, that are not expected to be in their “Revolving Periods” from such date to the Expected Final Payment Date.

 

“Accumulation Period Length” means, for any Determination Date, the number of Collection Periods such that the sum of the Accumulation Period Factors for such Collection Periods is equal to or greater than the Required Accumulation Factor Number for such Determination Date.

 

“Adjusted Invested Amount” means, as of any date, (a) the Invested Amount, minus (b) during an Accumulation Period or Amortization Period for Series 2014-1, the amount of any Principal Collections in the Collection Account allocable to Series 2014-1, minus (c) the amount in the Series 2014-1 Principal Funding Account (excluding any net investment earnings), each as of such date.

 

“Available Investor Interest Collections” means, for any Payment Date, an amount equal to the sum of (a) the Investor Interest Collections for the related Collection Period, plus (b) any net investment earnings on amounts in the Series 2014-1 Accounts for the related Collection Period, plus (c) the Series 2014-1 Accumulation Period Reserve Draw Amount for such Payment Date, plus (d) on the termination of the Series 2014-1 Accumulation Period Reserve Account pursuant to Section 4.7(c)(iii), all remaining amounts in the Series 2014-1 Accumulation Period Reserve Account (excluding any net investment earnings), plus (e) the Monthly Depositor Servicing Fee for such Payment Date.

 

“Available Investor Principal Collections” means, for any Payment Date, an amount equal to the excess of (a) the sum of (i) the Investor Principal Collections for the related Collection Period, plus (ii) any Available Investor Interest Collections, Series 2014-1 Reserve Account Available Amounts, Excess Interest Collections from other Series in Excess Interest Sharing Group One and Available Depositor Collections that, pursuant to Sections 4.2(a) and (b), are to be treated as Available Investor Principal Collections for such Payment Date, plus (iii) the Series 2014-1 Excess Funding Amount, plus (iv) any Shared Principal Collections for other Series in Principal Sharing Group One (including any amounts in the Excess Funding Account that are made available to Series 2014-1 pursuant to the Indenture as Shared Principal Collections), plus (v) upon the termination of the Series 2014-1 Reserve Account pursuant to Section 4.7(b)(ii), all remaining amounts in the Series 2014-1 Reserve Account (excluding any net investment earnings and after giving effect to Section 4.2(b)(iii)), over (b) any Reallocated Principal Collections for such Payment Date.

 

2

 

“Available Subordinated Amount” means (a) for the first Determination Date following the Closing Date, an amount equal to the Required Subordinated Amount for such Determination Date and (b) for any subsequent Determination Date, an amount equal to the lesser of (i) the Required Subordinated Amount for such Determination Date and (ii) an amount equal to:

 

(A)                               the Available Subordinated Amount for the preceding Determination Date; minus

 

(B)                               the amount of any Available Depositor Principal Collections used to cover shortfalls on the related Payment Date pursuant to Section 4.2(b)(ii); minus

 

(C)                               the amount of the Investor Charge Offs and Reallocated Principal Collections for the related Payment Date applied to reduce the Available Subordinated Amount pursuant to Sections 4.3 and 4.4; plus

 

(D)                               the amount of any Available Investor Interest Collections paid pursuant to Section 4.2(a)(xiii) to the Depositor Interest Account for distribution to the holders of the Depositor Interest; minus

 

(E)                                the Incremental Subordinated Amount for the preceding Determination Date; plus

 

(F)                                 the Incremental Subordinated Amount for such Determination Date; minus

 

(G)                               the Subordinated Percentage of the increase in the Series 2014-1 Excess Funding Amount since the preceding Payment Date to the succeeding Payment Date; plus

 

(H)                              the Subordinated Percentage of the decrease in the Series 2014-1 Excess Funding Amount since the preceding Payment Date to the succeeding Payment Date; plus

 

(I)                                   an amount equal to the increase, if any, in the Required Subordinated Amount as a result of a change in the Subordination Factor since the preceding Determination Date, minus

 

(J)                                   an amount equal to the decrease, if any, in the Required Subordinated Amount as a result of a change in the Subordination Factor since the preceding Determination Date, plus

 

(K)                              any increases in the Available Subordinated Amount elected by the Depositors; provided, that the cumulative amount of such increases may not exceed 3.5% of the initial Note Balance of the Series 2014-1 Notes.

 

“Back-up Servicing Fee Rate” means 0.0065% per annum or such lesser percentage as may be specified by the Back-up Servicer, if any, in an Officer’s Certificate delivered to the Indenture Trustee; provided, that if no Back-up Servicing Agreement is in effect on any date, all references to the Back-up Servicing Fee Rate in this Indenture Supplement will be deemed to be deleted from this Indenture Supplement and have no further effect.

 

“Benefit Plan” means an employee benefit plan or other retirement plan or arrangement that is subject to Title I of ERISA, Section 4975 of the Code or any Similar Law.

 

3

 

“Class” means the Class A-1 Notes, the Class A-2 Notes, the Class B Notes, the Class C Notes and the Class D Notes, as applicable.

 

“Class A-1 Notes” means any one of the Series 2014-1 Class A-1 Notes executed by the Issuer and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A.

 

“Class A-2 Notes” means any one of the Series 2014-1 Class A-2 Notes executed by the Issuer and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A.

 

“Class A Notes” means the Class A-1 Notes and the Class A-2 Notes.  Unless the context otherwise requires, the Class A-1 Notes and the Class A-2 Notes will be treated as a single Class for purposes of allocations, distributions or payments.

 

“Class B Invested Amount” means, as of any date, an amount (not less than zero) equal to (a) the initial Note Balance of the Class B Notes, minus (b) the aggregate amount of any principal payments made to the Noteholders of the Class B Notes before such date, minus (c) the cumulative amount of unreimbursed Investor Charge-Offs applied to reduce the Class B Invested Amount pursuant to Section 4.3 before such date, minus (d) the cumulative amount of unreimbursed Reallocated Principal Collections applied to reduce the Class B Invested Amount pursuant to Section 4.4 before such date.

 

“Class B Notes” means any one of the Series 2014-1 Class B Notes executed by the Issuer and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A.

 

“Class C Invested Amount” means, as of any date, an amount (not less than zero) equal to (a) the initial Note Balance of the Class C Notes, minus (b) the aggregate amount of any principal payments made to the Noteholders of the Class C Notes before such date, minus (c) the cumulative amount of unreimbursed Investor Charge-Offs applied to reduce the Class C Invested Amount pursuant to Section 4.3 before such date, minus (d) the cumulative amount of unreimbursed Reallocated Principal Collections applied to reduce the Class C Invested Amount pursuant to Section 4.4 before such date.

 

“Class C Notes” means any one of the Series 2014-1 Class C Notes executed by the Issuer and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A.

 

“Class D Invested Amount” means, as of any date, an amount (not less than zero) equal to (a) the initial Note Balance of the Class D Notes, minus (b) the aggregate amount of any principal payments made to the Noteholders of the Class D Notes before such date, minus (c) the cumulative amount of unreimbursed Investor Charge-Offs applied to reduce the Class D Invested Amount pursuant to Section 4.3 before such date, minus (d) the cumulative amount of unreimbursed Reallocated Principal Collections applied to reduce the Class D Invested Amount pursuant to Section 4.4 before such date.

 

4

 

“Class D Notes” means any one of the Series 2014-1 Class D Notes executed by the Issuer and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A.

 

“Closing Date” means February 19, 2014.

 

“Controlled Accumulation Amount” means, for any Payment Date with respect to the Controlled Accumulation Period, an amount equal to the Initial Invested Amount divided by six; provided, however, that if the Controlled Accumulation Period begins after August 1, 2016, the Controlled Accumulation Amount for each Payment Date with respect to the Controlled Accumulation Period will be equal to (a) the product of (i) the Initial Invested Amount, times (ii) the Accumulation Period Factor for the last Collection Period of the Revolving Period, divided by (b) the Required Accumulation Factor Number for the last Determination Date during the Revolving Period.

 

“Controlled Accumulation Period” means, unless an Early Amortization Period has commenced prior to such period, the period beginning on the first day of the August 2016 Collection Period or such later date as is determined in accordance with Section 4.2(g) and ending on the earlier to occur of (a) the day before the start of the Early Amortization Period and (b) the end of the Collection Period preceding the Payment Date on which the Note Balance of the Series 2014-1 Notes will be paid in full.

 

“Controlled Deposit Amount” means, for any Payment Date with respect to the Controlled Accumulation Period, an amount equal to the sum of (a) the Controlled Accumulation Amount for such Payment Date and (b) any Deficit Controlled Accumulation Amount for the preceding Payment Date.

 

“Dealer Overconcentration” means, for any Determination Date, the excess, if any, of (a) the aggregate principal amount of Receivables originated in all Accounts of a Dealer or a group of affiliated Dealers on the last day of the related Collection Period, over (b) 2% (or 5% in the case of Dealers affiliated with AutoNation, Inc. (or its successors in interest)) of the Pool Balance on the last day of such Collection Period (or, in either case, a higher percentage so long as the Rating Agency Condition has been satisfied).

 

“Defaulted Amount” means, for any Determination Date, an amount (not less than zero) equal to (a) the principal amount of all Receivables that became Defaulted Receivables during the related Collection Period, minus (b) the amount of any such Defaulted Receivables that are reassigned to the Depositors in accordance with the Sale and Servicing Agreements (except that if an Insolvency Event occurs with respect to a Depositor, the amount of such Defaulted Receivables that are reassigned to such Depositor will be zero), minus (c) the amount of any such Defaulted Receivables that are assigned to the Servicer in accordance with the Sale and Servicing Agreements (except that if an Insolvency Event occurs with respect to the Servicer, the amount of such Defaulted Receivables that are assigned to the Servicer will be zero).

 

“Deficit Controlled Accumulation Amount” means (a) for the first Payment Date with respect to the Controlled Accumulation Period, the excess, if any, of the Controlled Accumulation Amount for such Payment Date, over the amount deposited into the Series 2014-1

 

5

 

Principal Funding Account on such Payment Date and (b) for each subsequent Payment Date with respect to the Controlled Accumulation Period, the excess, if any, of the Controlled Deposit Amount for such Payment Date, over the amount deposited into the Series 2014-1 Principal Funding Account on such Payment Date.

 

“Development Dealer Overconcentration” means, for any Determination Date, the excess, if any, of (a) the aggregate principal amount of Receivables that are Development Dealer Receivables on the last day of the related Collection Period, over (b) 4% of the Pool Balance on the last day of such Collection Period (or, a higher percentage so long as the Rating Agency Condition has been satisfied).

 

“Early Amortization Period” means the period beginning on the day on which an Amortization Event for Series 2014-1 occurs (or, if the Servicer is not required to make daily deposits of Collections into the Collection Account pursuant to Section 8.4(b) of the Indenture, beginning on the first day of the Collection Period in which such Amortization Event occurs) and ending on the earlier to occur of (a) the end of the Collection Period preceding the Payment Date on which the Note Balance of the Series 2014-1 Notes will be paid in full and (b) the Series 2014-1 Final Maturity Date.

 

“ERISA” means the Employee Retirement Income Security Act of 1974.

 

“Excess Interest Collections” means, for any Payment Date, an amount equal to the excess, if any, of (a) the Available Investor Interest Collections for such Payment Date, over (b) the amount required to be paid, without duplication, pursuant to Sections 4.2(a)(i) through (xv) on such Payment Date.

 

“Expected Final Payment Date” means the February 2017 Payment Date.

 

“Fixed Investor Percentage” means, for any Deposit Date or Collection Period (or portion of any Collection Period occurring after the end of the Revolving Period), the percentage equivalent (not to exceed 100%) of a fraction (a) the numerator of which is the Invested Amount on the last day of the Revolving Period and (b) the denominator of which is the greater of (i) the Adjusted Pool Balance on the last day of the preceding Collection Period and (ii) the sum of the numerators used to calculate the applicable “Investor Percentages” for allocating Principal Collections to all Series for such Collection Period; provided, that for any Deposit Date or Collection Period occurring after the Collection Period on the last day of which the Adjusted Invested Amount is zero, the Fixed Investor Percentage will be deemed to be zero.

 

“Fleet Overconcentration” means, for any Determination Date, the excess, if any, of (a) the aggregate principal amount of the Receivables that are Fleet Receivables on the last day of the related Collection Period, over (b) 4% of the Pool Balance on the last day of such Collection Period (or a higher percentage so long as the Rating Agency Condition has been satisfied).

 

“Floating Investor Percentage” means, for any Deposit Date or Collection Period (or portion of any Collection Period occurring prior to the end of the Revolving Period), the percentage equivalent (not to exceed 100%) of a fraction (a) the numerator of which is the Adjusted Invested Amount on the last day of the preceding Collection Period (or for the first Collection Period, the initial Note Balance of the Series 2014-1 Notes) and (b) the denominator

 

6

 

of which is the Adjusted Pool Balance on the last day of the preceding Collection Period (or for the first Collection Period, the Adjusted Pool Balance as of the Series Cutoff Date).

 

“Incremental Subordinated Amount” means, for any Determination Date, the product of:

 

(a)                                 a fraction, (i) the numerator of which is an amount (not less than zero) equal to (A) the Adjusted Invested Amount as of the related Payment Date, plus (B) the product of the initial Note Balance of the Series 2014-1 Notes times the excess of the Required Pool Percentage over 100%, plus (C) the Required Subordinated Amount on such Determination Date (without giving effect to the Incremental Subordinated Amount), minus (D) the Series 2014-1 Excess Funding Amount as of such Determination Date and (ii) the denominator of which is the Pool Balance on such Determination Date; times

 

(b)                                 the Non-Conforming Receivable Amount on such Determination Date.

 

“Initial Invested Amount” means, for the Series 2014-1 Notes and for any date, $1,265,359,000; provided, that the Initial Invested Amount will be reduced by the initial Note Balance of any Series 2014-1 Notes that are determined to be no longer Outstanding on the day prior to the start of the Early Amortization Period.

 

“Interest Collections Shortfall” means, for any Payment Date, an amount equal to the excess, if any, of (a) the amount required to be paid, without duplication, pursuant to Sections 4.2(a)(i) through (xv) on such Payment Date, over (b) the Available Investor Interest Collections for such Payment Date.

 

“Interest Period” means, for any Payment Date (a) for each Class of Notes, except the Class A-2 Notes, the period from the 15th day of the calendar month preceding such Payment Date to the 15th day of the following calendar month (or from the Closing Date to March 15, 2014 in the case of the first Payment Date), and (b) for the Class A-2 Notes, the period from the Payment Date preceding such Payment Date to such Payment Date (or, from the Closing Date to March 17, 2014 in the case of the first Payment Date).

 

“Invested Amount” means, as of any date, an amount equal to (a) the initial Note Balance of the Series 2014-1 Notes, minus (b) the aggregate amount of any principal payments made to the Noteholders of the Series 2014-1 Notes before such date, minus (c) the cumulative amount of unreimbursed Investor Charge-Offs applied to reduce the Invested Amount pursuant to Section 4.3 before such date, minus (d) the cumulative amount of unreimbursed Reallocated Principal Collections applied to reduce the Invested Amount pursuant to Section 4.4 before such date.

 

“Investor Charge-Off” means, for any Payment Date, the excess, if any, of the amount of the unfunded Investor Default Amount for such Payment Date over the amount of such Investor Default Amount applied to reduce the Available Subordinated Amount pursuant to Section 4.3 for such Payment Date.

 

“Investor Default Amount” means, for any Payment Date, an amount equal to the product of (a) the Floating Investor Percentage for the related Collection Period, times (b) the Defaulted Amount for such Collection Period.

 

7

 

“Investor Interest Collections” means, for any Deposit Date or Collection Period, an amount equal to the product of (a) the Floating Investor Percentage for the related Collection Period, times (b) the Interest Collections for such Deposit Date or Collection Period, as applicable.

 

“Investor Percentage” means, for any Collection Period (a) for Interest Collections and Defaulted Amounts at any time and Principal Collections during the Revolving Period, the Floating Investor Percentage and (b) for Principal Collections during the Controlled Accumulation Period or the Early Amortization Period, the Fixed Investor Percentage.

 

“Investor Principal Collections” means, for any Deposit Date or Collection Period, an amount equal to the product of (a) the Investor Percentage for the related Collection Period, times (b) the Principal Collections for such Deposit Date or Collection Period, as applicable.

 

“LIBOR” means, for any Interest Period, the rate determined by the Indenture Trustee on each LIBOR Determination Date on the basis of the rate for deposits in United States dollars for a period of one month which appears on the Reuters Screen LIBOR01 Page as of 11:00 a.m., London time, on such date.  If such rate does not appear on the Reuters Screen LIBOR01 Page, the rate for that LIBOR Determination Date will be determined on the basis of the rates at which deposits in U.S. dollars are offered by the Reference Banks at approximately 11:00 a.m., London time, on that day to prime banks in the London interbank market for a period of one month commencing on such date and in a principal amount of at least U.S. $1,000,000.  The Indenture Trustee will request the principal London office of each of the Reference Banks to provide a quotation of its rate.  If at least two such quotations are provided, the rate for that LIBOR Determination Date will be the arithmetic mean of the quotations.  If fewer than two quotations are provided as requested, the rate for that LIBOR Determination Date will be the arithmetic mean of the rates quoted by three major banks in New York City, selected by the Servicer, at approximately 11:00 a.m. (New York City time) on that day for loans in U.S. dollars to leading European banks for a period of one month commencing on such date and in a principal amount of at least U.S. $1,000,000; provided, however, that if the banks selected by the Servicer are not quoting rates, LIBOR for such date will be the same as LIBOR for the preceding LIBOR Determination Date.

 

“LIBOR Determination Date” means, for any Interest Period, the date that is two London Banking Days prior to the start of such Interest Period.

 

“London Banking Day” means any day on which commercial banks are open for general business (including dealings in foreign exchange and foreign currency deposits) in London.

 

“Manufacturer Overconcentration” means, for any Determination Date, the sum of:

 

(a)                                 the excess, if any, of (i) the aggregate principal amount of Receivables that relate to a particular Manufacturer (other than Ford or one of its associated Manufacturers) with a long-term unsecured rating of at least “A-” by Standard & Poor’s and Fitch (if rated by Fitch), and “A3” by Moody’s (if rated by Moody’s) on the last day of the related Collection Period, over (ii) 10% of the Pool Balance on

 

8

 

the last day of such Collection Period (or a higher percentage so long as the Rating Agency Condition has been satisfied); plus

 

(b)                                 the excess, if any, of (i) the aggregate principal amount of Receivables that relate to a particular Manufacturer (other than Ford or one of its associated Manufacturers) with a long-term unsecured rating of “BBB+” or lower by Standard & Poor’s or unrated by Standard & Poor’s, or “BBB+” or lower by Fitch (if rated by Fitch), or “Baa1” or lower by Moody’s (if rated by Moody’s) on the last day of the related Collection Period, over (ii) 2% of the Pool Balance on the last day of such Collection Period (or a higher percentage so long as the Rating Agency Condition has been satisfied).

 

“Medium and Heavy Truck Overconcentration” means, for any Determination Date, the excess, if any, of (a) the aggregate principal amount of Receivables that are Medium and Heavy Truck Receivables on the last day of the related Collection Period, over (b) 2% of the Pool Balance on the last day of such Collection Period (or a higher percentage so long as the Rating Agency Condition has been satisfied).

 

“Monthly Back-up Servicing Fee” means, for any Payment Date, an amount equal to one-twelfth of the product of (a) the Back-up Servicing Fee Rate, times (b) the percentage equivalent of a fraction, the numerator of which is the Floating Investor Percentage for the related Collection Period and the denominator of which is the sum of the “Floating Investor Percentages” for all Series for such Collection Period, times (c) the aggregate principal amount of Receivables on the last day of the preceding Collection Period.  If no Back-up Servicing Agreement is in effect on any date, all references to the Monthly Back-up Servicing Fee in this Indenture Supplement will be deemed to be deleted from this Indenture Supplement and have no further effect.

 

“Monthly Depositor Servicing Fee” means, for any Payment Date, an amount equal to one-twelfth of the product of (a) the product of (i) the sum of the Servicing Fee Rate and the Back-up Servicing Fee Rate, times (ii) 100% minus the sum of the “Floating Investor Percentages” for all Series for the related Collection Period, times (iii) the aggregate principal amount of Receivables on the last day of the preceding Collection Period, times (b) the percentage equivalent of a fraction, the numerator of which is the Floating Investor Percentage for the related Collection Period and the denominator of which is the sum of the “Floating Investor Percentages” for all Series for such Collection Period.

 

“Monthly Investor Report” has the meaning specified in Section 3.1(a).

 

“Monthly Principal Amount” means, for each Payment Date, beginning with the Payment Date in the month following the month in which (a) the Controlled Accumulation Period begins, an amount equal to the lesser of (i) the Controlled Deposit Amount for such Payment Date, and (ii) the Adjusted Invested Amount on such Payment Date, or (b) the Early Amortization Period begins, the Adjusted Invested Amount on such Payment Date.

 

“Monthly Principal Payment Rate” means, for any Collection Period, the percentage equivalent of a fraction (a) the numerator of which is the Principal Collections for such

 

9

 

Collection Period and (b) the denominator of which is the Pool Balance on the first day of such Collection Period.

 

“Monthly Servicing Fee” means, for any Payment Date, an amount equal to one-twelfth of the product of (a) the Servicing Fee Rate, times (b) the percentage equivalent of a fraction, the numerator of which is the Floating Investor Percentage for the related Collection Period and the denominator of which is the sum of the “Floating Investor Percentages” for all Series for such Collection Period, times (c) the aggregate principal amount of Receivables on the last day of the preceding Collection Period, or for the first Collection Period, the aggregate principal amount of Receivables on the Series Cutoff Date.

 

“Non-Conforming Receivable Amount” means, for any Determination Date, the excess, if any, of:

 

(a)                                 the sum, without duplication, of (i) the principal amount of Receivables constituting Ineligible Receivables for such Determination Date, plus (ii) the aggregate amount of Dealer Overconcentrations, Development Dealer Overconcentrations, Fleet Overconcentrations, Manufacturer Overconcentrations, Medium and Heavy Truck Overconcentrations and Used Vehicle Overconcentrations for such Determination Date; over

 

(b)                                 the sum, without duplication, of (i) the principal amount of Receivables constituting Ineligible Receivables that became Defaulted Receivables during the period from the preceding Determination Date to the current Determination Date, plus (ii) the aggregate principal amount of Receivables contributing to Dealer Overconcentrations, Development Dealer Overconcentrations, Fleet Overconcentrations, Manufacturer Overconcentrations, Medium and Heavy Truck Overconcentrations and Used Vehicle Overconcentrations that, in each case, became Defaulted Receivables during the period from the preceding Determination Date (or, in the case of the first Determination Date, the Series Cutoff Date) to the current Determination Date.

 

“Note Interest Rate” means, for each Class, the interest rate per annum specified in Section 2.1(b).

 

“Note Interest Shortfall” means, for a Class and a Payment Date, an amount equal to:

 

(a)                                 the Note Monthly Interest for the preceding Payment Date for such Class; plus

 

(b)                                 any Note Interest Shortfall for such Class for the preceding Payment Date together with interest on such Note Interest Shortfall, to the extent lawful, at the Note Interest Rate for such Class for the related Interest Period; minus

 

(c)                                  the amount of Interest that was paid to the Noteholders of such Class on such preceding Payment Date.

 

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“Note Monthly Interest” means, for a Class and a Payment Date, the aggregate amount of interest accrued on the Note Balance of such Class at the Note Interest Rate for such Class for the related Interest Period.

 

“Note Transfer” has the meaning specified in Section 5.2(b).

 

“Payment Date” means the 15th day of each month, or if not a Business Day, the next Business Day, commencing in the first full month after the Closing Date.

 

“Principal Sharing Group One” means Series 2014-1 and each other Series specified in the related Indenture Supplement to be included in Principal Sharing Group One.

 

“Principal Shortfall” means, for Series 2014-1 and any Payment Date, an amount equal to (a) for any Payment Date with respect to the Revolving Period, zero, and (b) for any Payment Date with respect to the Controlled Accumulation Period or Early Amortization Period, the excess, if any, of the Monthly Principal Amount for such Payment Date, over the amount of Available Investor Principal Collections for such Payment Date (excluding any Available Investor Principal Collections attributable to Shared Principal Collections).

 

“QIB” means a “Qualified Institutional Buyer” as specified in paragraph (a) of Rule 144A.

 

“Rating Agency” means each of DBRS, Moody’s and Standard & Poor’s.

 

“Rating Agency Condition” means:

 

(a)                                 with respect to Standard & Poor’s and any proposed action, that such Rating Agency has notified the Depositors, the Servicer or the Indenture Trustee that the proposed action will not result in a downgrade or withdrawal of its then-current rating of any Series 2014-1 Notes; and

 

(b)                                 with respect to each of Moody’s and DBRS and any proposed action, the Issuer has given ten Business Days’ prior notice to such Rating Agency of the proposed action, and such Rating Agency has not notified the Depositors, the Servicer or the Indenture Trustee within such period that such action will result in a downgrade or withdrawal of its then-current rating on any of the Series 2014-1 Notes; provided, that Moody’s or DBRS may, at its option, notify the Depositors, the Servicer and the Indenture Trustee that such action will not result in a reduction or withdrawal of its then-current rating of any of the Series 2014-1 Notes.

 

“Reallocated Principal Collections” means, for any Payment Date, the amount of Investor Principal Collections applied in accordance with Section 4.4 in an amount not to exceed:

 

(a)                                 for the Class A Notes, the sum of (i) the Available Subordinated Amount plus (ii) the Class B Invested Amount plus (iii) the Class C Invested Amount plus (iv) the Class D Invested Amount, in each case, for such Payment Date;

 

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(b)                                 for the Class B Notes, the sum of (i) the Available Subordinated Amount plus (ii) the Class C Invested Amount plus (iii) the Class D Invested Amount, in each case, for such Payment Date;

 

(c)                                  for the Class C Notes, the sum of (i) the Available Subordinated Amount plus (ii) the Class D Invested Amount, in each case, for such Payment Date; and

 

(d)                                 for the Class D Notes, the Available Subordinated Amount for such Payment Date.

 

“Reassignment Amount” means, for any Payment Date, the sum of (a) the Note Balance of the Series 2014-1 Notes on such Payment Date, plus (b) the Accrued Note Interest for each Class for such Payment Date, plus (c) any other amounts due and payable by the Issuer on such Payment Date in respect of Series 2014-1, in each case, after giving effect to any payments to be made on such Payment Date.

 

“Reference Banks” means four major banks in the London interbank market selected by the Servicer.

 

“Required Accumulation Factor Number” means, for any Determination Date, a fraction, rounded upwards to the nearest whole number, the numerator of which is one and the denominator of which is equal to the lowest Monthly Principal Payment Rate, expressed as a decimal, for the twelve Collection Periods preceding the date of such calculation.

 

“Required Pool Percentage” means 100%.

 

“Required Subordinated Amount” means, as of any date, the sum of:

 

(a)                                 the greater of (i) zero and (ii) the product of (A) the Subordinated Percentage, times (B) the excess of the initial Note Balance of the Series 2014-1 Notes over the Series 2014-1 Excess Funding Amount on such date; plus

 

(b)                                 the Incremental Subordinated Amount for such date.

 

“Reuters Screen LIBOR01 Page” means the display page currently so designated on the Reuters Capital Markets service (or such other page as may replace such page in that service for the purpose of displaying comparable rates or prices).

 

“Revolving Period” means the period beginning on the Closing Date and ending on the earlier of the day preceding the date on which the Controlled Accumulation Period or the Early Amortization Period starts.

 

“Rule 144A” means Rule 144A under the Securities Act.

 

“Rule 144A Information” has the meaning specified in Section 5.2(d).

 

“Series 2014-1” means the Series of Notes, the Principal Terms of which are specified in this Indenture Supplement.

 

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“Series 2014-1 Accounts” means the Series 2014-1 Principal Funding Account, the Series 2014-1 Reserve Account and the Series 2014-1 Accumulation Period Reserve Account, which will constitute the “Series Accounts” for Series 2014-1 for purposes of the Indenture.

 

“Series 2014-1 Accumulation Period Reserve Account” means the account designated as such pursuant to Section 4.7(c).

 

“Series 2014-1 Accumulation Period Reserve Account Available Amount” means, for each Payment Date, the lesser of:

 

(a)                                 the amount in the Series 2014-1 Accumulation Period Reserve Account on such Payment Date (excluding any net investment earnings and before giving effect to any deposits or withdrawals made or to be made on such Payment Date); and

 

(b)                                 the Series 2014-1 Accumulation Period Reserve Account Required Amount.

 

“Series 2014-1 Accumulation Period Reserve Account Deposit Amount” means, for each Payment Date beginning on the Series 2014-1 Accumulation Period Reserve Account Funding Date and until termination of the Series 2014-1 Accumulation Period Reserve Account pursuant to Section 4.7(c)(iii), the excess of (a) the Series 2014-1 Accumulation Period Reserve Account Required Amount, over (b) the Series 2014-1 Accumulation Period Reserve Account Available Amount for such Payment Date.

 

“Series 2014-1 Accumulation Period Reserve Account Funding Date” means the Payment Date occurring in the second Collection Period preceding the scheduled commencement of the Controlled Accumulation Period (or such earlier or later date as may be directed by the Servicer; provided that, if the Series 2014-1 Accumulation Period Reserve Account Funding Date occurs on a later date, the Series 2014-1 Accumulation Period Reserve Account is expected to be fully funded by the commencement of the Controlled Accumulation Period).

 

“Series 2014-1 Accumulation Period Reserve Account Required Amount” means an amount equal to 0.25% of the initial Note Balance of the Series 2014-1 Notes.

 

“Series 2014-1 Accumulation Period Reserve Draw Amount” means, for any Payment Date relating to the Controlled Accumulation Period or the first Payment Date with respect to the Early Amortization Period, the lesser of (a) the excess, if any, of (i) an amount equal to one-twelfth of the product of (A) the amount in the Series 2014-1 Principal Funding Account on the preceding Payment Date (excluding net investment earnings), times (B) the weighted average (weighted by the aggregate Note Balance of each Class of Series 2014-1 Notes) of the Note Interest Rate for each Class of Series 2014-1 Notes for the related Interest Period, over (ii) the portion of the Available Investor Interest Collections for such Payment Date constituting net investment earnings from the Series 2014-1 Accounts, and (b) the Series 2014-1 Accumulation Period Reserve Account Available Amount for such Payment Date.

 

“Series 2014-1 Amortization Event” has the meaning specified in Section 6.1.

 

“Series 2014-1 Collateral” means (a) all Collections on the Receivables allocated to the Series 2014-1 Noteholders, (b) all security entitlements relating to the Series 2014-1 Accounts

 

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and the property deposited in or credited to any of the Series 2014-1 Accounts, (c) all present future claims, demands, causes in action and choses in action in respect of the foregoing, and (d) all payments on and proceeds of the foregoing.

 

“Series 2014-1 Excess Funding Amount” means, as of any date, the product of (a) the amount in the Excess Funding Account (excluding any net investment earnings) on such date, times (b) a fraction (i) the numerator of which is the Adjusted Invested Amount as of such date and (ii) the denominator of which is the sum of the “Adjusted Invested Amounts” of all Series.

 

“Series 2014-1 Final Maturity Date” means the February 2019 Payment Date.

 

“Series 2014-1 Notes” has the meaning specified in Section 2.1(a).

 

“Series 2014-1 Principal Funding Account” means the account designated as such pursuant to Section 4.7(a).

 

“Series 2014-1 Reserve Account” means the account designated as such pursuant to Section 4.7(b).

 

“Series 2014-1 Reserve Account Available Amount” means, for any Payment Date, the lesser of (a) the amount in the Series 2014-1 Reserve Account on such date (excluding any net investment earnings and before giving effect to any deposit or withdrawal on such Payment Date) and (b) the Series 2014-1 Reserve Account Required Amount for such Payment Date.

 

“Series 2014-1 Reserve Account Deposit Amount” means, for any Payment Date, the excess, if any, of (a) the Series 2014-1 Reserve Account Required Amount for such Payment Date, over (b) the Series 2014-1 Reserve Account Available Amount for such Payment Date.

 

“Series 2014-1 Reserve Account Required Amount” means, for any Payment Date, an amount equal to the product of (a) the Series 2014-1 Reserve Account Required Percentage, times (b) the Initial Invested Amount; provided, that the Reserve Account Required Amount for the Closing Date is $12,653,590.

 

“Series 2014-1 Reserve Account Required Percentage” means, (a) for any Payment Date not described in clauses (b) or (c), 1.0%, (b) for any Payment Date during a Subordination Step-up Period for which the Depositors have elected to increase the Series 2014-1 Reserve Account Required Percentage in accordance with Section 4.7(b), 1.0% plus the Step-up Percentage or (c) for any Payment Date with respect to the Early Amortization Period on which the Depositors have not elected to increase the Series 2014-1 Reserve Account Required Percentage pursuant to clause (b), 5.0%; provided, that the Depositors may reduce any of these percentages so long as the Rating Agency Condition is satisfied.

 

“Series Cutoff Date” means the close of business on January 31, 2014.

 

“Servicing Fee Rate” means 1% per annum.

 

“Shared Principal Collections” means, for Series 2014-1 and any Payment Date, an amount equal to the excess, if any, of (a) the Available Investor Principal Collections for such

 

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Payment Date (without giving effect to clause (a)(iv) of the definition of “Available Investor Principal Collections”), over (b) the amount required to be deposited or distributed, without duplication, pursuant to Sections 4.2(c)(i) on such Payment Date.

 

“Similar Law” means any federal, state, local or non-U.S. law or regulation substantially similar to the provisions of Title I of ERISA or Section 4975 of the Code.

 

“Step-up Percentage” means the excess of the Subordinated Percentage calculated using a Subordination Factor of 16.00% over the Subordinated Percentage calculated using a Subordination Factor of 12.00%.

 

“Subordinated Percentage” means the percentage equivalent of a fraction (a) the numerator of which is the Subordination Factor and (b) the denominator of which is the excess of 100%, over the Subordination Factor.

 

“Subordination Factor” means, for the Series 2014-1 Notes, (a) for any Determination Date not described in clause (b), 12.00% or (b) for any Determination Date during a Subordination Step-up Period, unless the Depositors have elected to increase the Series 2014-1 Reserve Account Required Percentage in accordance with Section 4.7(b), 16.00%.

 

“Subordination Step-up Period” means any period beginning on the Determination Date for which the average of the Monthly Principal Payment Rates for the three preceding Collection Periods is less than 25% and ending on the Determination Date for which the average of the Monthly Principal Payment Rates for the three preceding Collection Periods is equal to or greater than 25%.

 

“Used Vehicle Overconcentration” means, for any Determination Date, the excess, if any, of (a) the aggregate principal amount of Receivables on credit lines that are designated by the Servicer specifically for purchases of Used Vehicles on the last day of the related Collection Period, over (b) 20% of the Pool Balance on the last day of such Collection Period (or a higher percentage so long as the Rating Agency Condition has been satisfied).

 

“Void Note Transfer” has the meaning specified in Section 5.2(b).

 

Section 1.2.                                 Defined Terms for Other Series.  Capitalized terms in this Indenture Supplement, when used in quotation marks with a reference to one or more Series, have the respective meanings specified for each such Series in the related Indenture Supplement.

 

ARTICLE II
 CREATION OF SERIES 2014-1 NOTES

 

Section 2.1.                                 Principal Terms of Series 2014-1 Notes.  The Principal Terms for the Series 2014-1 Notes are as follows:

 

(a)                                 Creation and Designation.  This Indenture Supplement creates a Series of Notes to be issued by the Issuer on the Closing Date pursuant to the Indenture and this Indenture Supplement to be known as the “Series 2014-1 Asset Backed Notes” or the “Series 2014-1 Notes.”

 

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(b)                                 Note Interest Rate and Initial Note Balance.  The Indenture Trustee will, upon Issuer Order, authenticate and deliver the Series 2014-1 Notes for original issue in the following Classes, each having the Note Interest Rates and initial Note Balances specified below.

 

	
Class
    	
 
    	
Note Interest Rate
    	
 
    	
Initial Note Balance
    	
 
    
	
Class A-1 Notes
    	
 
    	
1.20%
    	
 
    	
$
    	
450,000,000
    	
 
    
	
Class A-2 Notes
    	
 
    	
One-month   LIBOR + 0.40%
    	
 
    	
$
    	
650,000,000
    	
 
    
	
Class B Notes
    	
 
    	
1.40%
    	
 
    	
$
    	
50,327,000
    	
 
    
	
Class C Notes
    	
 
    	
1.55%
    	
 
    	
$
    	
71,895,000
    	
 
    
	
Class D Notes
    	
 
    	
1.89%
    	
 
    	
$
    	
43,137,000
    	
 
    

 

(c)                                  Sharing Groups.  Series 2014-1 will be in Excess Interest Sharing Group One and in Principal Sharing Group One.

 

(d)                                 Form of Notes.  Each Class of Series 2014-1 Notes, together with the Indenture Trustee’s certificate of authentication, will be in substantially the form of Exhibit A with such variations as are required or permitted by this Indenture Supplement and the Indenture.  The Series 2014-1 Notes may have such marks of identification and such legends or endorsements placed on them as may be determined, consistent with this Indenture Supplement and the Indenture, by the Responsible Persons executing such Series 2014-1 Notes, as evidenced by their execution of such Series 2014-1 Notes.

 

(e)                                  Book-Entry Series 2014-1 Notes.  The Series 2014-1 Notes initially will be issued as Book-Entry Notes.  On or before the Series Issuance Date, Global Notes representing each Class of Series 2014-1 Notes will be deposited with the Clearing Agency.

 

(f)                                   Series Issuance Date.  The Series Issuance Date for the Series 2014-1 Notes will be the Closing Date.

 

(g)                                  Final Maturity Date.  The Series 2014-1 Notes will be payable on the Series 2014-1 Final Maturity Date.

 

(h)                                 Denominations.  The Series 2014-1 Notes will be issued in fully registered form in minimum amounts of $1,000 and in integral multiples of $1,000 in excess of such minimum amount (except that one Note of each Class may be issued in a different amount so long as such amount exceeds $1,000).

 

(i)                                     Indenture.  The Series 2014-1 Notes are “Notes” and this Indenture Supplement is an “Indenture Supplement” for all purposes of the Indenture.  If any provision of the Series 2014-1 Notes or this Indenture Supplement conflicts with or is inconsistent with the Indenture, the provisions of the Series 2014-1 Notes or this Indenture Supplement, as the case may be, control.

 

(j)                                    Events of Default.  There will be no additional Events of Default with respect to the Series 2014-1 Notes.

 

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Section 2.2.                                 Additional Issuance; Reopening.

 

The Issuer may from time to time, without notice to, or the consent of, Noteholders of any Series, create and issue additional Series 2014-1 Notes of the same Class as any Class issued on the Closing Date.  Any such additional Series 2014-1 Notes will form part of and have the same Principal Terms as such previously issued Class, except for (i) the initial principal amount of such Class, the Initial Invested Amount and the initial Note Balance of such Class on the Closing Date, (ii) the accrual and payment of interest prior to the issuance date of such additional Series 2014-1 Notes, and (iii) the first payment of interest following the issuance of such additional Series 2014-1 Notes.  When issued, such additional Series 2014-1 Notes will be equally and ratably entitled to the benefits of the Indenture and this Indenture Supplement applicable to those Series 2014-1 Notes of the same Class issued on the Closing Date without preference, priority or distinction.  The obligation of the Indenture Trustee to authenticate and deliver additional Series 2014-1 Notes after the Closing Date and to execute and deliver any amendments to this Indenture Supplement to facilitate such additional issuance will be subject to the satisfaction of the following conditions:

 

(a)                                 on or before the second Business Day preceding the issuance of such additional Series 2014-1 Notes, the Issuer has given the Indenture Trustee and each Rating Agency notice of such additional issuance and the date of such additional issuance;

 

(b)                                 the Issuer has delivered to the Indenture Trustee any amendments to this Indenture Supplement required to facilitate such additional issuance, in form reasonably satisfactory to the Indenture Trustee executed by the Issuer;

 

(c)                                  the Rating Agency Condition has been satisfied with respect to such additional issuance;

 

(d)                                 each Depositor has delivered to the Indenture Trustee an Officer’s Certificate, dated the date of such additional issuance, stating that:

 

(i)                                     such additional issuance will not have an Adverse Effect or cause an Amortization Event to occur with respect to any Series; and

 

(ii)                                  all conditions precedent under this Section 2.2 to the issuance of such additional Series 2014-1 Notes have been complied with;

 

(e)                                  on or before the additional issuance date for any Class (treating the Class A-1 Notes and the Class A-2 Notes as a single Class), the Issuer will have issued Notes of each Class that is junior to such Class such that the proportion of the Note Principal Balance of each such junior Class to the Note Principal Balance of any more senior Class is equal to or greater than the proportion that existed on the Closing Date;

 

(f)                                   the Depositors have deposited in the Series 2014-1 Reserve Account from the proceeds of such issuance such amount as is necessary to cause the amount on deposit to equal the Series 2014-1 Reserve Account Required Amount after giving effect to such issuance; and

 

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(g)                                  the Net Adjusted Pool Balance equals or exceeds the Required Pool Balance after giving effect to such additional issuance (taking into account any deposit of the proceeds of such additional Series 2014-1 Notes into the Excess Funding Account).

 

Section 2.3.                                 Payments.

 

(a)                                 Each Class of Notes will accrue interest at the applicable Note Interest Rate.  Interest on each Note will be due and payable on each Payment Date as specified in such Note.  Interest on the Notes (other than the Class A-2 Notes) will be computed on the basis of a 360-day year consisting of twelve 30-day months.  Interest on the Class A-2 Notes will be computed on the basis of actual number of days elapsed and a 360-day year.

 

(b)                                 Interest and principal payments on each Class of Notes will be made ratably to the Noteholders of such Class entitled to such payments.  On each Payment Date, distributions to be made with respect to interest on and principal of the Book-Entry Notes will be paid to the registered Noteholder by wire transfer in immediately available funds to the account designated by the nominee of the Clearing Agency (initially, such nominee will be Cede & Co.).  Distributions to be made with respect to interest on and principal of the Definitive Notes will be paid to the registered Noteholder (i) if such Noteholder has provided to the Note Registrar appropriate instructions at least five Business Days before such Payment Date and the aggregate original principal amount of such Noteholder’s Notes is at least $1,000,000, by wire transfer in immediately available funds to the account of such Noteholder or (ii) by check mailed first class mail, postage prepaid, to such registered Noteholder’s address as it appears on the Note Register on the related Record Date.  However, the final installment of principal (whether payable by wire transfer or check) of each Note on a Payment Date or the Series 2014-1 Final Maturity Date will be payable only upon presentation and surrender of such Note.  The Indenture Trustee will notify each registered Noteholder of the date on which the Issuer expects that the final installment of principal of and interest on such registered Noteholder’s Notes will be paid not later than five days before such date.  Such notice will be prepared by the Issuer and will specify the place where such Notes may be presented and surrendered for payment of such installment.  All funds paid by wire transfers or checks that are returned undelivered will be held in accordance with Section 3.3 of the Indenture.

 

(c)                                  The principal of each Note will be payable in installments on each Payment Date as specified in such Note.  The entire unpaid Note Balance of each Class of Notes will be due and payable on the Series 2014-1 Final Maturity Date.  Notwithstanding the foregoing, the entire unpaid principal amount of the Notes will be due and payable on the date on which the Notes are declared to be immediately due and payable in the manner provided in Section 5.2(a) of the Indenture.

 

ARTICLE III
 REPORTS AND SERVICING

 

Section 3.1.                                 Reports and Statements to Noteholders of Series 2014-1 Notes.

 

(a)                                 On or before each Determination Date, the Servicer will deliver to the Issuer, the Indenture Trustee and each Rating Agency a report substantially in the form of Exhibit B or such

 

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other form as the Servicer may determine; provided that any such report contains substantially the same information as set forth in Exhibit B (a “Monthly Investor Report”).  A Responsible Person of the Servicer will certify the accuracy of the information in the Monthly Investor Report in accordance with Section 3.6 of the Sale and Servicing Agreements.

 

(b)                                 On each Payment Date, the Indenture Trustee will deliver to each Noteholder of Series 2014-1 Notes a Monthly Investor Report; provided, that, in lieu of the Indenture Trustee’s delivering such statement, the Indenture Trustee may make such statement available to the Noteholders of the Series 2014-1 through the Indenture Trustee’s internet website, which initially is located at http://GCTInvestorreporting.bnymellon.com.

 

(c)                                  A copy of each Monthly Investor Report may be obtained by any Noteholder of Series 2014-1 Notes by a request to the Servicer.

 

(d)                                 If required by law, on or before January 31 of each calendar year, beginning with the calendar year following the Closing Date, the Indenture Trustee will furnish or cause to be furnished to each Person who at any time during the preceding calendar year was a Noteholder of the Series 2014-1 Notes, a statement prepared by the Servicer containing the information that is required to be contained in the statements to the Noteholders of the Series 2014-1 Notes, as set forth in Section 3.1(a), aggregated for the preceding calendar year, together with other information as is required to be provided by an issuer of indebtedness under the Code; provided, however, that in lieu of the Indenture Trustee’s delivering such statement, the Indenture Trustee may make such statement available to the Noteholders of the Series 2014-1 Notes through the Indenture Trustee’s internet website, which initially is located at http://GCTInvestorreporting.bnymellon.com.  Such obligation of the Servicer will be deemed to have been satisfied to the extent that substantially comparable information is provided by the Indenture Trustee pursuant to any requirements of the Code as from time to time in effect.

 

Section 3.2.                                 Servicing Compensation.  The share of the Servicing Fee allocable to Series 2014-1 for any Payment Date is equal to the Monthly Servicing Fee.  The portion of the Servicing Fee that is not allocable to Series 2014-1 will be paid by the holders of the Depositor Interest or the Noteholders of other Series (pursuant to the related Indenture Supplement) and in no event will the Issuer, the Indenture Trustee or the Noteholders of the Series 2014-1 Notes be liable for the share of the Servicing Fee to be paid by the holders of the Depositor Interest or the Noteholders of any other Series.

 

ARTICLE IV
 RIGHTS OF NOTEHOLDERS OF SERIES 2014-1 NOTES
 AND ALLOCATION AND APPLICATION OF COLLECTIONS

 

Section 4.1.                                 Collections and Allocations.

 

(a)                                 Allocations.  Pursuant to Section 8.4(a) of the Indenture, Interest Collections, Principal Collections and Defaulted Receivables will be allocated between Series 2014-1 and the Depositor Interest and then applied to Series 2014-1 and the Depositor Interest pursuant to this Article IV.

 

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(b)                                 Allocations to Depositor Interest.

 

(i)                                     Available Depositor Collections.  On each Deposit Date, the Servicer will make the following deposits and payments from Available Depositor Collections for such Deposit Date or the related Collection Period, as applicable, in the following order of priority:

 

(A)                               to the Collection Account, but only to the extent needed to pay, to the knowledge of the Servicer on such Deposit Date, the following amounts on the related Payment Date: (I) to cover shortfalls in payments and deposits required to be made from Available Investor Interest Collections on the related Payment Date pursuant to Section 4.2(b)(ii), and to cover similar shortfalls for other Series, and (II) during an Early Amortization Period, to cover amounts to be deposited pursuant to Section 4.2(e) on such Payment Date;

 

(B)                               to the Excess Funding Account, to the extent that the Required Depositor Amount for the preceding Calculation Date (and, if such Calculation Date is a Determination Date, after giving effect to the allocations, payments, withdrawals and deposits to be made on the Payment Date following such Determination Date) exceeds the Depositor Amount; and

 

(C)                               (1) if the Depositors are the sole holders of the Depositor Interest, to the Depositors in accordance with their respective percentage interests in the Depositor Interest or (2), otherwise, to the Depositor Interest Account for distribution to the holders of the Depositor Interest in accordance with the Trust Agreement, any remaining amount.

 

(ii)                                  Excess Depositor Interest Collections.  On each Deposit Date, the Servicer will make the following deposits and payments from Excess Depositor Interest Collections for such Deposit Date or the related Collection Period, as applicable, in the following order of priority:

 

(A)                               to the Collection Account, until the amount deposited pursuant to this clause (A) is equal to the Monthly Depositor Servicing Fee for all Series for such Collection Period; and

 

(B)                               (1) if the Depositors are the sole holders of the Depositor Interest, to the Depositors in accordance with their respective percentage interests in the Depositor Interest or (2), otherwise, to the Depositor Interest Account for distribution to the holders of the Depositor Interest in accordance with the Trust Agreement, any remaining amount.

 

(iii)                               Excess Depositor Principal Collections.  On each Deposit Date, the Servicer will make the following deposits and payments from Excess Depositor Principal Collections for such Deposit Date or the related Collection Period, as applicable, in the following order of priority:

 

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(A)                               to the Excess Funding Account, to the extent that the Required Depositor Amount for the preceding Calculation Date (and, if such Calculation Date is a Determination Date, after giving effect to the allocations, payments, withdrawals and deposits to be made on the Payment Date following such Determination Date) exceeds the Depositor Amount;

 

(B)                               to the Collection Account, until the amount deposited pursuant to this clause (B) is equal to the excess, if any, of the Monthly Depositor Servicing Fee for all Series for such Collection Period over the amount deposited into the Collection Account pursuant to Section 4.1(b)(ii)(A); and

 

(C)                               (1) if the Depositors are the sole holders of the Depositor Interest, to the Depositors in accordance with their respective percentage interests in the Depositor Interest or (2), otherwise, to the Depositor Interest Account for distribution to the holders of the Depositor Interest in accordance with the Trust Agreement, any remaining amount.

 

(iv)                              Available Depositor Collections True-up.  On each Determination Date, the Servicer will deposit into the Collection Account the lesser of (A) the portion, if any, of the amount described in Section 4.1(b)(i)(A)(I) with respect to the related Collection Period that has not previously been deposited into the Collection Account pursuant to Section 4.1(b)(i)(A)(I), and (B) the aggregate amount paid to the Depositors or to the Depositor Interest Account for distribution to the holders of the Depositor Interest with respect to the related Collection Period pursuant to Section 4.1(b)(i)(C).  Any amount deposited pursuant to this Section 4.1(b)(iv) will be repaid to the Servicer by the holders of the Depositor Interest or, if not so repaid, may be withheld by the Servicer from subsequent distributions to the holders of the Depositor Interest.

 

(c)                                  Allocations to Series 2014-1.  The Servicer will allocate to the Noteholders of Series 2014-1 Notes and deposit into the Collection Account for application pursuant to this Indenture Supplement the following amounts:

 

(i)                                     on each Deposit Date, an amount equal to the Investor Interest Collections for such Deposit Date or the related Collection Period, as applicable, until the amount in the Collection Account allocated to Series 2014-1 equals the excess of (I) the amounts to be paid or distributed, to the knowledge of the Servicer on such Deposit Date, on the related Payment Date pursuant to Section 4.2(a)(i) through (xvi), over (II) the Monthly Depositor Servicing Fee for the related Collection Period;

 

(ii)                                  on each Deposit Date, an amount equal to the Investor Principal Collections for such Deposit Date or the related Collection Period, as applicable, until the amount in the Collection Account allocated to Series 2014-1 equals the amounts to be paid or distributed, to the knowledge of the Servicer on such Deposit Date, on the related Payment Date pursuant to Section 4.2(b)(iv), (c) or (d), as applicable;

 

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(iii)                               on each Determination Date, an amount equal to the lesser of (A) the portion, if any, of the excess of (I) the amounts to be paid or distributed on the related Payment Date pursuant to Section 4.2(a)(i) through (xvi), over (II) the Monthly Depositor Servicing Fee for the related Collection Period that has not previously been deposited into the Collection Account pursuant to Section 4.1(c)(i), and (B) the amount of Investor Interest Collections for the related Collection Period that has not previously been deposited into the Collection Account pursuant to Section 4.1(c)(i); and

 

(iv)                              on each Determination Date, an amount equal to the lesser of (A) the portion, if any, of the amounts to be paid or distributed on the related Payment Date pursuant to Section 4.2(b)(iv), (c) or (d), as applicable, that has not previously been deposited into the Collection Account pursuant to Section 4.1(c)(ii), and (B) the amount of Investor Principal Collections for the related Collection Period that has not previously been deposited into the Collection Account pursuant to Section 4.1(c)(ii).

 

Section 4.2.                                 Application of Available Funds in Collection Account and Other Sources.

 

(a)                                 As long as the Indenture Trustee has received the Monthly Investor Report by the related Determination Date, the Indenture Trustee (based on the information in the Monthly Investor Report) will, on each Payment Date and to the extent of Available Investor Interest Collections in the Collection Account, make the following applications, payments or deposits in the following order of priority:

 

(i)                                     to the Noteholders of each Class of Class A Notes, the Accrued Note Interest for each such Class of Class A Notes for such Payment Date or, if Available Investor Interest Collections are insufficient to pay the Accrued Note Interest in full for each Class of Class A Notes, to the Noteholders of each Class of Class A Notes, pro rata, based on the Note Balance of each Class of Class A Notes;

 

(ii)                                  to the Noteholders of the Class B Notes, the Accrued Note Interest for the Class B Notes for such Payment Date;

 

(iii)                               to the Noteholders of the Class C Notes, the Accrued Note Interest for the Class C Notes for such Payment Date;

 

(iv)                              to the Noteholders of the Class D Notes, the Accrued Note Interest for the Class D Notes for such Payment Date;

 

(v)                                 pro rata, to the payment of all amounts, including indemnities, then due to the Owner Trustee and the Indenture Trustee for the Series 2014-1 Notes, and any expenses incurred by the Issuer for the Series 2014-1 Notes in accordance with the Transaction Documents, in each case, to the extent not paid by the Servicer or the Administrator, up to a maximum of $150,000 per year;

 

(vi)                              pro rata (A) to the Back-up Servicer, the Monthly Back-up Servicing Fee for such Payment Date, if any, together with any Monthly Back-up Servicing Fees previously due but not paid on prior Payment Dates, and (B) if Ford Credit or one of its Affiliates is no longer the Servicer, to the Servicer, the Monthly Servicing Fee for such

 

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Payment Date, together with any Monthly Servicing Fees previously due but not paid on prior Payment Dates (unless such amount has been netted against deposits into the Collection Account in accordance with Section 8.4(c) of the Indenture);

 

(vii)                           to treat as Available Investor Principal Collections for such Payment Date, the Investor Default Amount for such Payment Date;

 

(viii)                        to the Series 2014-1 Reserve Account, the Series 2014-1 Reserve Account Deposit Amount for such Payment Date;

 

(ix)                              to treat as Available Investor Principal Collections for such Payment Date, the sum of Investor Charge-Offs that have not been previously reimbursed;

 

(x)                                 to treat as Available Investor Principal Collections for such Payment Date, the sum of Reallocated Principal Collections that have not been previously reimbursed;

 

(xi)                              beginning on the Series 2014-1 Accumulation Period Reserve Account Funding Date, to the Series 2014-1 Accumulation Period Reserve Account, the Series 2014-1 Accumulation Period Reserve Account Deposit Amount for such Payment Date;

 

(xii)                           if Ford Credit or one of its Affiliates is the Servicer, to the Servicer, the Monthly Servicing Fee for such Payment Date, together with any Monthly Servicing Fees previously due but not paid on prior Payment Dates (unless such amount has been netted against deposits into the Collection Account in accordance with Section 8.4(c) of the Indenture);

 

(xiii)                        to the Depositor Interest Account for distribution to the holders of the Depositor Interest in accordance with the Trust Agreement to increase the Available Subordinated Amount, the excess of the Required Subordinated Amount over the Available Subordinated Amount (unless such amount has been netted against deposits into the Collection Account in accordance with Section 8.4(c) of the Indenture);

 

(xiv)                       pro rata, to the payment of all amounts, including indemnities, then due to the Owner Trustee and the Indenture Trustee for the Series 2014-1 Notes, and any expenses incurred by the Issuer for the Series 2014-1 Notes in accordance with the Transaction Documents, in each case, to the extent not paid by the Servicer or the Administrator or pursuant to clause (v) above;

 

(xv)                          to the Back-up Servicer, any amounts due pursuant to Section 2.3(b) of the Back-up Servicing Agreement and any Transition Costs due pursuant to Section 2.3(c) of the Back-up Servicing Agreement in excess of the amount in the Back-up Servicer Reserve Account, in each case, for the Series 2014-1 Notes;

 

(xvi)                       to treat as Excess Interest Collections available from Series 2014-1, the Interest Collections Shortfalls for other Series in Excess Interest Sharing Group One; and

 

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(xvii)                    to the Depositor Interest Account for distribution to the holders of the Depositor Interest in accordance with the Trust Agreement, all remaining Available Investor Interest Collections.

 

(b)                                 If Available Investor Interest Collections for any Payment Date are insufficient to make the applications, payments and deposits required pursuant to Section 4.2(a), as long as the Indenture Trustee has received the Monthly Investor Report by the related Determination Date, the Indenture Trustee (based on the information in the Monthly Investor Report) will, on or before such Payment Date, apply available funds from the following sources in the following order of priority:

 

(i)                                     from Excess Interest Collections available from other Series in Excess Interest Sharing Group One, to cover shortfalls in the applications, payments and deposits pursuant to Sections 4.2(a)(i) through (xv) in that order;

 

(ii)                                  from Available Depositor Interest Collections and Available Depositor Principal Collections (with respect to Available Depositor Principal Collections, in an amount not exceeding the Available Subordinated Amount (before giving effect to Section 4.3) for such Payment Date), to cover shortfalls in the applications, payments and deposits required pursuant to Sections 4.2(a)(i) through (x) in that order; provided that, if the amount of Available Depositor Collections is insufficient to cover such shortfalls for Series 2014-1, as well as any similar shortfalls for other Series, then Available Depositor Collections will be allocated to Series 2014-1 based on the ratio that the Available Subordinated Amount for Series 2014-1 bears to the aggregate “Available Subordinated Amounts” for all Series having such shortfalls; provided, further, that if the amount of Available Depositor Collections exceeds the aggregate amount of such shortfalls for all Series, then the excess Available Depositor Collections will be applied to cover any unpaid Adjustment Payments;

 

(iii)                               from the Series 2014-1 Reserve Account Available Amount, to cover shortfalls in the applications, payments and deposits required pursuant to Sections 4.2(a)(i) through (vii) in that order; and

 

(iv)                              from the Reallocated Principal Collections for such Payment Date, to cover shortfalls in the payments required pursuant to Sections 4.2(a)(i) through (iv).

 

(c)                                  As long as the Indenture Trustee has received the Monthly Investor Report by the related Determination Date, the Indenture Trustee (based on information in the Monthly Investor Report) will, on each Payment Date and to the extent of Available Investor Principal Collections on deposit in the Collection Account, make the following applications, payments or deposits in the following order of priority:

 

(i)                                     on any Payment Date with respect to the Controlled Accumulation Period or Early Amortization Period, to the Series 2014-1 Principal Funding Account, the excess, if any, of the Monthly Principal Amount for such Payment Date over the amount deposited into the Series 2014-1 Principal Funding Account from the Excess Funding Account pursuant to Section 4.2(d) on such Payment Date;

 

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(ii)                                  to other Principal Sharing Series in Principal Sharing Group One, the Shared Principal Collections for such Payment Date;

 

(iii)                               to the Excess Funding Account, the excess, if any, of the Required Pool Balance over the Net Adjusted Pool Balance pursuant to Section 8.3(b)(ii) of the Indenture; and

 

(iv)                              to the Depositor Interest Account for distribution to the holders of the Depositor Interest in accordance with the Trust Agreement, all remaining Available Investor Principal Collections.

 

(d)                                 As long as the Indenture Trustee has received the Monthly Investor Report by the related Determination Date, the Indenture Trustee (based on information in the Monthly Investor Report) will, on each Payment Date with respect to the Controlled Accumulation Period or an Early Amortization Period, deposit into the Series 2014-1 Principal Funding Account from the Excess Funding Account the lesser of (i) the Series 2014-1 Excess Funding Amount, and (ii) the Monthly Principal Amount for such Payment Date.

 

(e)                                  If Available Investor Principal Collections for any Payment Date with respect to an Early Amortization Period are insufficient to deposit the amount required pursuant to Section 4.2(c)(i), as long as the Indenture Trustee has received the Monthly Investor Report by the related Determination Date, the Indenture Trustee (based on the information in the Monthly Investor Report) will, on such Payment Date, deposit into the Series 2014-1 Principal Funding Account Available Depositor Interest Collections and Available Depositor Principal Collections (with respect to Available Depositor Principal Collections, in an amount not to exceed the Available Subordinated Amount) on such Payment Date in an amount equal to the excess of the Adjusted Invested Amount over the sum of the amounts deposited into the Series 2014-1 Principal Funding Account from Available Investor Principal Collections pursuant to Section 4.2(c)(i) and from the Excess Funding Account pursuant to Section 4.2(d).

 

(f)                                   So long as an Early Amortization Period has not begun, on the Expected Final Payment Date, or on each Payment Date with respect to an Early Amortization Period, as long as the Indenture Trustee has received the Monthly Investor Report by the related Determination Date, the Indenture Trustee (based on the information in the Monthly Investor Report) will withdraw an amount up to the aggregate Note Balance of Series 2014-1 from the Series 2014-1 Principal Funding Account for payment in the following order of priority: (i) to the Noteholders of Class A Notes, pro rata based upon the principal amount of each class of Class A Notes, until the Note Balance of the Class A Notes is reduced to zero, (ii) to the Noteholders of Class B Notes until the Note Balance of the Class B Notes is reduced to zero, (iii) to the Noteholders of the Class C Notes until the Note Balance of the Class C Notes is reduced to zero and (iv) to the Noteholders of the Class D Notes until the Note Balance of the Class D Notes is reduced to zero.

 

(g)                                  The Controlled Accumulation Period is scheduled to begin on the first day of the August 2016 Collection Period.  However, if the Accumulation Period Length is less than six Collection Periods, the date on which the Controlled Accumulation Period actually begins will be delayed to the first day of the Collection Period that is the number of Collection Periods before the Expected Final Payment Date at least equal to the Accumulation Period Length.  On

 

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or before each Determination Date beginning with the Determination Date in the July 2016 Collection Period and ending when the Controlled Accumulation Period begins, the Servicer will determine the “Accumulation Period Length.”

 

Section 4.3.                                 Investor Charge-Offs.  On each Determination Date, the Servicer will calculate the Investor Default Amount, if any, for the related Payment Date.  If the Investor Default Amount for any Payment Date exceeds the sum of the amounts applied to fund such Investor Default Amount pursuant to Section 4.2(a)(vii) (including any amounts applied pursuant to Section 4.2(b)), then such excess will be applied in the following order of priority to reduce (a) the Available Subordinated Amount for the related Determination Date (after giving effect to any reductions of the Available Subordinated Amount pursuant to Section 4.2(b)(ii)), (b) the Class D Invested Amount, (c) the Class C Invested Amount, (d) the Class B Invested Amount, and (e) the remaining Invested Amount.

 

Section 4.4.                                 Reallocated Principal Collections.  On each Payment Date, the Reallocated Principal Collections for such Payment Date will be applied in the following order of priority to reduce (a) the Available Subordinated Amount (after giving effect to any reductions of the Available Subordinated Amount pursuant to Section 4.2(b)(ii) and Section 4.3), (b) the Class D Invested Amount, (c) the Class C Invested Amount, and (d) the Class B Invested Amount.

 

Section 4.5.                                 Excess Interest Collections.  On each Payment Date, Series 2014-1 will be allocated an amount equal to the product of (a) the aggregate amount of Excess Interest Collections for all Excess Interest Sharing Series in Excess Interest Sharing Group One for such Payment Date, times (b) a fraction, the numerator of which is the Interest Collections Shortfall for Series 2014-1 for such Payment Date and the denominator of which is the aggregate amount of Interest Collections Shortfalls for all Excess Interest Sharing Series in Excess Interest Sharing Group One for such Payment Date.

 

Section 4.6.                                 Shared Principal Collections.  On each Payment Date, Series 2014-1 will be allocated an amount equal to the product of (a) the aggregate amount of Shared Principal Collections with respect to all Principal Sharing Series in Principal Sharing Group One for such Payment Date, times (b) a fraction, the numerator of which is the Principal Shortfall for Series 2014-1 for such Payment Date and the denominator of which is the aggregate amount of Principal Shortfalls for all Principal Sharing Series in Principal Sharing Group One for such Payment Date.

 

Section 4.7.                                 Series 2014-1 Accounts.

 

(a)                                 The Servicer will, before the Closing Date, establish and maintain a Qualified Account in the name “The Bank of New York Mellon, as Indenture Trustee, as secured party for Ford Credit Floorplan Master Owner Trust A in respect of Series 2014-1” that is designated as the “Series 2014-1 Principal Funding Account”, which account will be beneficially owned by the Issuer.  The Series 2014-1 Principal Funding Account will initially be account number 894702.

 

(b)                                 The Servicer will, before the Closing Date, establish and maintain a Qualified Account in the name “The Bank of New York Mellon, as Indenture Trustee, as secured party for

 

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Ford Credit Floorplan Master Owner Trust A in respect of Series 2014-1” that is designated as the “Series 2014-1 Reserve Account”, which account will be beneficially owned by the Issuer.  The Series 2014-1 Reserve Account will initially be account number 894700.

 

(i)                                     The Series 2014-1 Reserve Account will be funded by the Depositors on the Closing Date in the amount equal to the Series 2014-1 Reserve Account Required Amount for such date and will be increased and decreased as described in this Indenture Supplement.

 

(ii)                                  On or prior to the first day of any Subordination Step-up Period, the Depositors may elect to increase the Series 2014-1 Reserve Account Required Percentage for such Subordination Step-up Period in lieu of increasing the Subordination Factor as contemplated by the definition thereof, by (i) notifying the Servicer and the Indenture Trustee of such election and (ii) depositing the amount of the related increase of the Series 2014-1 Reserve Account Required Amount into the Series 2014-1 Reserve Account; provided, that, if the Depositors fail to deposit the amount of such increase into the Series 2014-1 Reserve Account on or prior to the Payment Date of such Subordination Step-up Period, the Subordination Factor will automatically increase in accordance with the definition thereof.

 

(iii)                               Upon the earlier to occur of (A) the payment in full of the Series 2014-1 Notes, and (B) the Series 2014-1 Final Maturity Date, any funds remaining in the Series 2014-1 Reserve Account will be treated as Available Investor Principal Collections. The Series 2014-1 Reserve Account will, following such occurrence, be deemed to have terminated for the purposes of this Indenture Supplement.

 

(c)                                  The Servicer will, before the Closing Date, establish and maintain a Qualified Account in the name “The Bank of New York Mellon, as Indenture Trustee, as secured party for Ford Credit Floorplan Master Owner Trust A in respect of Series 2014-1” that is designated as the “Series 2014-1 Accumulation Period Reserve Account”, which account will be beneficially owned by the Issuer.  The Series 2014-1 Accumulation Period Reserve Account will initially be account number 894703.

 

(i)                                     The Series 2014-1 Accumulation Period Reserve Account will be funded by the Issuer, beginning on the Series 2014-1 Accumulation Period Reserve Account Funding Date, in the amount equal to the Series 2014-1 Accumulation Reserve Account Required Amount for such date and will be increased and decreased as described in this Indenture Supplement.

 

(ii)                                  On or before each Payment Date with respect to the Controlled Accumulation Period, the Servicer will calculate the Series 2014-1 Accumulation Period Reserve Draw Amount and instruct the Indenture Trustee to withdraw such amount from the Series 2014-1 Accumulation Period Reserve Account on such Payment Date and deposit such amount into the Collection Account for application as Available Investor Interest Collections.

 

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(iii)                               Upon the earliest to occur of (A) the payment in full of the Series 2014-1 Notes, (B) the first Payment Date relating to an Early Amortization Period, and (C) the Series 2014-1 Final Maturity Date, any funds remaining in the Series 2014-1 Accumulation Period Reserve Account will be treated as Available Investor Interest Collections.  The Series 2014-1 Accumulation Period Reserve Account will, following such occurrence, be deemed to have terminated for purposes of this Indenture Supplement.

 

(d)                                 Each Series 2014-1 Account will be under the sole dominion and control of the Indenture Trustee, except that the Servicer may make deposits into and direct the Note Paying Agent or the Indenture Trustee to make withdrawals from each such Series 2014-1 Account in accordance with this Indenture Supplement.

 

(e)                                  The Series 2014-1 Accounts and all amounts, securities, investments, financial assets and other property deposited into or credited to such accounts will be held by the Indenture Trustee as secured party for the Issuer for the benefit of the Secured Parties of Series 2014-1 and, after payment in full of the Series 2014-1 Notes and all other amounts owing or to be distributed to such Secured Parties under this Indenture Supplement and the Sale and Servicing Agreements, as agent of the Issuer.  All deposits into and withdrawals from such accounts will be made in accordance with the Transaction Documents.

 

(f)                                   If at any time any of the Series 2014-1 Accounts ceases to be a Qualified Account, the Servicer will direct the Indenture Trustee to establish a new account to replace such account within 30 calendar days, which account will be a Qualified Account and from the date of establishment, such new account will be the Series 2014-1 Principal Funding Account, the Series 2014-1 Reserve Account or the Series 2014-1 Accumulation Period Reserve Account, as applicable, for the purposes of this Indenture Supplement.

 

(g)                                  If on any Payment Date, after giving effect to all withdrawals from and deposits into the Series 2014-1 Accounts, the amount in any Series 2014-1 Account exceeds the amount required to be in such Series 2014-1 Account pursuant to this Indenture Supplement or any other Transaction Document, then the Indenture Trustee will, at the direction of the Servicer, distribute such excess to the Depositor Interest Account for distribution to the holders of the Depositor Interest in accordance with the Trust Agreement.

 

Section 4.8.                                 Permitted Investments.  Funds in the Series 2014-1 Accounts will, at the direction of the Servicer, be invested by the Indenture Trustee in Permitted Investments selected by the Servicer.  All such Permitted Investments will be held by the Indenture Trustee on behalf of the Issuer for the benefit of the Secured Parties of Series 2014-1 Notes.  Funds in the Series 2014-1 Accounts will be invested in Permitted Investments that will mature no later than the following Payment Date.  On each Payment Date, any net investment earnings on funds in such accounts will be deposited in the Collection Account and treated as Available Investor Interest Collections for such Payment Date.  The Indenture Trustee will bear no responsibility or liability for any losses resulting from investment or reinvestment of any funds in accordance with this Section 4.8 nor for the selection of Permitted Investments in accordance with this Indenture Supplement, the Indenture or the Sale and Servicing Agreements.

 

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Section 4.9.                                 Investment Instructions.  Any investment instructions required to be given to the Indenture Trustee pursuant to Section 4.8 must be given to the Indenture Trustee no later than 10:00 a.m. (New York City time) on the date such investment is to be made.  Any such investment instructions may be in the form of standing instructions given to the Indenture Trustee by the Servicer.  If the Indenture Trustee receives such investment instructions later than such time, the Indenture Trustee may, but is not obligated to, make such investment.  If the Indenture Trustee is unable to make an investment required in any investment instructions received by the Indenture Trustee after 10:00 a.m. (New York City time) on such day, such investment will be made by the Indenture Trustee on the next Business Day.  In no event will the Indenture Trustee be liable for any investment not made pursuant to investment instructions received after 10:00 a.m. (New York City time) on the day such investment is requested to be made.

 

Section 4.10.                          Determination and Notification of LIBOR.  On each LIBOR Determination Date, the Indenture Trustee will determine LIBOR and notify the Servicer, the Issuer and the Administrator by email of LIBOR for the following Interest Period.

 

ARTICLE V
 THE NOTES

 

Section 5.1.                                 Retention By Depositors.  Any Note retained or acquired by the Depositors at any time on or after the Closing Date may be issued, transferred or exchanged by the Depositors only upon the delivery to the Indenture Trustee of an Opinion of Counsel dated as of the date of such issuance, transfer or exchange, as the case may be, to the effect that such issuance, transfer or exchange will not cause (i) any other security issued by the Issuer to be deemed sold or exchanged for purposes of Section 1001 of the Code or (ii) the Issuer to be treated as an association or publicly traded partnership taxable as a corporation for U.S. federal income tax purposes.

 

Section 5.2.                                 Securities Act Restrictions.

 

(a)                                 The Class C and Class D Notes have not been registered under the Securities Act or any State securities law. None of the Issuer, the Transferors or the Indenture Trustee is obligated to register the Class C or Class D Notes under the Securities Act or any other securities or “blue sky” laws or to take any other action not otherwise required under this Indenture Supplement to permit the transfer of any Class C or Class D Note without registration.  The Issuer, at the direction of the Transferors or the Administrator, may elect to register, or cause the registration of, the Class C and/or Class D Notes under the Securities Act and any applicable State securities law, in which case the Issuer will deliver, or cause to be delivered, to the Indenture Trustee and the Transfer Agent and Registrar such opinions of counsel, Officer’s Certificates and other information as determined by the Transferors as necessary to effect such registration.

 

(b)                                 Until such time as any such Class of Notes has been registered under the Securities Act and any applicable State securities law pursuant to Section 5.2(a), no Class C or Class D Note may be sold, transferred, assigned, participated, pledged, or otherwise disposed of (any such act, a “Note Transfer”) to any Person except in accordance with the provisions of this

 

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Section 5.2 or Section 5.3, and any attempted Note Transfer in violation of this Section 5.2 or Section 5.3 will be null and void (each, a “Void Note Transfer”).

 

(c)                                  Each Class C and Class D Note will bear a legend to the effect of the legend contained in Exhibit A unless determined otherwise by the Administrator (as certified to the Indenture Trustee in an Officer’s Certificate) consistent with applicable law.

 

(d)                                 The Depositors will make available to the prospective transferor and transferee of a Class C or Class D Note information requested to satisfy the requirements of paragraph (d)(4) of Rule 144A (the “Rule 144A Information”).  The Rule 144A Information will include any or all of the following items requested by the prospective transferee:

 

(i)                                     the offering memorandum relating to the Class C Notes (if any) or Class D Notes (if any), as applicable, and any amendments or supplements to such offering memorandum;

 

(ii)                                  the Monthly Investor Report for each Payment Date preceding such request; and

 

(iii)                               such other information as is reasonably available to the Indenture Trustee in order to comply with requests for information pursuant to Rule 144A.

 

Section 5.3.                                 Note Owner Representations.

 

(a)                                 Each Series 2014-1 Note Owner, by its acceptance of a beneficial interest in the Series 2014-1 Notes, is deemed to represent, warrant and covenant to the Issuer, the Depositors and the Indenture Trustee that:

 

(i)                                     either (A) it is not a Benefit Plan and is not acting on behalf of or investing the assets of a Benefit Plan or (B) its purchase, holding or disposition of such beneficial interest therein does not constitute and will not result in a non-exempt prohibited transaction under Title I of ERISA or Section 4975 of the Code due to the applicability of a statutory or administrative exemption from the prohibited transaction rules (or, if the Series 2014-1 Note Owner is subject to any Similar Law, such purchase, holding or disposition does not constitute and will not result in a violation of such Similar Law); and

 

(ii)                                  it will treat the Series 2014-1 Notes for U.S. federal, state and local income and franchise tax purposes as indebtedness secured by the Trust Property.

 

(b)                                 Each Series 2014-1 Note Owner of a Class C or Class D Note (other than the Depositors or their Affiliates), by its acceptance of a beneficial interest in such Class C or Class D Note, specifically agrees with and represents to the Depositors, the Issuer, the Indenture Trustee and the Transfer Agent and Registrar, that no Note Transfer will be made unless (i) the registration requirements of the Securities Act and any applicable State securities laws have been complied with in respect of such class in accordance with Section 5.02(a), (ii) such Note Transfer is to the Depositors or their Affiliates, or (iii) such Note Transfer is exempt from the registration requirements under the Securities Act because such Note Transfer is in compliance with Rule 144A under the Securities Act, to a transferee who the transferor reasonably believes

 

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is a QIB that is purchasing for its own account or for the account of a QIB and to whom notice is given that such Note Transfer is being made in reliance upon Rule 144A under the Securities Act.

 

(c)                                  Until such time as any such Class of Notes has been registered under the Securities Act and any applicable State securities law pursuant to Section 5.2(a), each Series 2014-1 Note Owner of a Class C or Class D Note (other than the Depositors or their Affiliates), by its acceptance of a beneficial interest in such Class C or Class D Note, is deemed to represent, warrant and covenant to the Issuer, the Depositors and the Indenture Trustee that:

 

(i)                                     It understands that such Series 2014-1 Notes have not been and will not be registered under the Securities Act or any State or other applicable securities or “blue sky” law.

 

(ii)                                  It understands that Note Transfers are only permitted if made in compliance with the Securities Act and other applicable laws and only to a person that the holder reasonably believes is a QIB or to a Depositor or its Affiliates.

 

(iii)                               It (A) is a QIB, (B) is aware that the sale to it is being made in reliance on Rule 144A under the Securities Act and if it is acquiring such Series 2014-1 Notes or any interest or participation in such Series 2014-1 Notes for the account of another QIB, such other QIB is aware that the sale is being made in reliance on Rule 144A under the Securities Act and (C) is acquiring such Series 2014-1 Notes or any interest or participation in such Series 2014-1 Notes for its own account or for the account of another QIB.

 

(iv)                              It is purchasing such 2014-1 Notes for its own account or for one or more investor accounts for which it is acting as fiduciary or agent, in each case for investment, and not with a view to offer, transfer, assign, participate, pledge or otherwise dispose of such Series 2014-1 Notes in connection with any distribution of such Series 2014-1 Notes that would violate the Securities Act.

 

Section 5.4.                                 Amendments to Comply with Law Relating to Restricted Securities.  The Class C and Class D Notes and related documentation may be amended or supplemented from time to time in accordance with Section 9.1 of the Indenture to modify the restrictions on, and procedures for, resales and other transfers of the Class C and Class D Notes to reflect any change in applicable law or regulation (or the interpretation thereof).  Each Series 2014-1 Noteholder of a Class C or Class D Note will be deemed, by the acceptance of such Class C and Class D Note, to have agreed to any such amendment or supplement.

 

ARTICLE VI
 SERIES 2014-1 AMORTIZATION EVENTS

 

Section 6.1.                                 Series 2014-1 Amortization Events.  If any of the following events occurs with respect to the Series 2014-1 Notes:

 

(a)                                 failure by either Depositor (i) to make any payment or deposit required to be made under the related Sale and Servicing Agreement, the Indenture or this Indenture

 

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Supplement on or before the date occurring five Business Days after the date such payment or deposit is required to be made or (ii) to observe or perform in any material respect any other covenants or agreements of such Depositor in the related Sale and Servicing Agreement, the Indenture or this Indenture Supplement that has an Adverse Effect and continues for 60 days after the date on which notice of such failure, requiring the same to be remedied, has been given to such Depositor by the Indenture Trustee and continues to have an Adverse Effect for such 60-day period;

 

(b)                                 any representation or warranty made by either Depositor in the related Sale and Servicing Agreement, the Indenture or this Indenture Supplement, or any information contained in a computer file or other list required to be delivered by such Depositor pursuant to the related Sale and Servicing Agreement, proves to have been incorrect in any material respect when made or when delivered and has an Adverse Effect, which continues to be incorrect in any material respect for 60 days after the date on which notice of such failure, requiring the same to be remedied, has been given to such Depositor by the Indenture Trustee and continues to have an Adverse Effect for such 60-day period; provided, however, that a Series 2014-1 Amortization Event pursuant to this clause (b) will be deemed remedied if such Depositor has accepted reassignment of the related Receivable, or all of such Receivables, if applicable, during such period in accordance with the related Sale and Servicing Agreement;

 

(c)                                  a Servicer Termination Event that has an Adverse Effect;

 

(d)                                 the Note Balance of the Series 2014-1 Notes is not paid in full on the Expected Final Payment Date;

 

(e)                                  the average of the Monthly Principal Payment Rates for the three preceding Collection Periods is less than 21%;

 

(f)                                   on any Determination Date, the Available Subordinated Amount for the next Payment Date will be less than the Required Subordinated Amount after giving effect to any payments to be made on such Payment Date, and continues unremedied for five Business Days after such Payment Date; provided that, for the purpose of determining whether a Series 2014-1 Amortization Event has occurred pursuant to this clause (f), any reduction of the Available Subordinated Amount resulting from reallocations of the Available Depositor Principal Collections to pay interest on the Series 2014-1 Notes if LIBOR is equal to or greater than the prime rate upon which interest on the receivables is calculated on the applicable LIBOR Determination Date will be considered a Series 2014-1 Amortization Event only if LIBOR remains equal to or greater than such prime rate for the next 30 consecutive days following such LIBOR Determination Date;

 

(g)                                  the amounts in the Excess Funding Account exceed 30% of the sum of the “Adjusted Invested Amounts” of all Series for three consecutive Collection Periods, after giving effect to any payments to be made on each related Payment Date; or

 

(h)                                 the occurrence of an Event of Default with respect to Series 2014-1 and an acceleration of the maturity of the Series 2014-1 Notes pursuant to Section 5.2 of the Indenture,

 

32

 

then, in the case of any event described in clauses (a) through (c) above that is continuing, after any applicable grace period, either the Indenture Trustee or the Noteholders of a majority of the Note Balance of the Series 2014-1 Notes by notice to the Depositors and the Servicer (and to the Indenture Trustee if given by the Noteholders of Series 2014-1 Notes) may declare that an Amortization Event with respect to the Series 2014-1 Notes (a “Series 2014-1 Amortization Event”) has occurred as of the date of such notice, and, in the case of any event described in clauses (d) through (h) above, a Series 2014-1 Amortization Event, will occur without any notice or other action on the part of the Indenture Trustee or the Series 2014-1 Noteholders immediately upon the occurrence of such event.

 

ARTICLE VII
 SERIES FINAL MATURITY; FINAL PAYMENTS

 

Section 7.1.                                 Series Final Maturity.

 

(a)                                 The amount to be paid with respect to Series 2014-1 in connection with a reassignment of the Sold Receivables pursuant to Section 2.3(c) or 6.1(b) of the Sale and Servicing Agreements will be the Reassignment Amount for the first Payment Date following the Collection Period in which the reassignment obligation arises under the Sale and Servicing Agreements. With respect to the Reassignment Amount deposited into the Collection Account pursuant to Section 2.3(c) or 6.1(b) of the Sale and Servicing Agreements or the proceeds from any liquidation of Collateral allocable to Series 2014-1 pursuant to Section 5.6(c) of the Indenture, the Indenture Trustee will, (based on the information in the most recent Monthly Investor Report) on the related Payment Date, make payments or distributions of such amounts in accordance with Section 4.2.

 

(b)                                 Notwithstanding anything to the contrary in this Indenture Supplement, the Indenture or the Sale and Servicing Agreements, (i) all amounts distributed to the Note Paying Agent pursuant to Section 7.1(a) for payment to the Noteholders of the Series 2014-1 Notes will be deemed paid in full to the Noteholders the Series 2014-1 Notes on the date on which such funds are distributed to the Note Paying Agent pursuant to this Section 7.1(b) and will be deemed to be a final payment of the Series 2014-1 Notes and (ii) if the amounts available for final payment to the Noteholders of the Series 2014-1 Notes and to the Noteholders of any other Series on any Payment Date are less than the amount required to be so paid, the available amounts will be allocated to each Series based on the respective amounts required to be paid to each such Series on such Payment Date.

 

ARTICLE VIII
 MISCELLANEOUS PROVISIONS

 

Section 8.1.                                 Ratification of Agreement.  As supplemented by this Indenture Supplement, the Indenture is in all respects ratified and confirmed and the Indenture as so supplemented by this Indenture Supplement is to be read, taken and construed as one and the same instrument.

 

33

 

Section 8.2.                                 Counterparts.  This Indenture Supplement may be executed in any number of counterparts (and by different parties on separate counterparts), each of which will be an original, but all of which will constitute one and the same instrument.

 

Section 8.3.                                 GOVERNING LAW.  THIS INDENTURE SUPPLEMENT AND EACH SERIES 2014-1 NOTE ARE TO BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS CONFLICTS OF LAWS PRINCIPLES.

 

[Remainder of Page Intentionally Left Blank]

 

34

 

EXECUTED BY:

 

	
 
    	
FORD   CREDIT FLOORPLAN MASTER OWNER
    
	
 
    	
 
    	
TRUST A,
    
	
 
    	
 
    	
as Issuer
    
	
 
    	
 
    
	
 
    	
By:
    	
U.S.   BANK TRUST NATIONAL
   ASSOCIATION,
    
	
 
    	
 
    	
not in   its individual capacity, but solely as
   Owner Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Melissa A. Rosal
    
	
 
    	
 
    	
Name:   Melissa A. Rosal
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    
	
 
    	
THE   BANK OF NEW YORK MELLON,
    
	
 
    	
 
    	
not in   its individual capacity, but solely as
   Indenture Trustee, Securities Intermediary and
   Bank
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Esther Antoine
    
	
 
    	
 
    	
Name:   Esther Antoine
    
	
 
    	
 
    	
Title:   Vice President
    

 

[Signature Page to Series 2014-1 Indenture Supplement]

 

 

Exhibit A

 

Form of Class [A/B/C/D] Note

 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE OF THIS NOTE FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER OF THIS NOTE, CEDE & CO., HAS AN INTEREST IN THIS NOTE.

 

[Class C/D only] THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES OR BLUE SKY LAW OF ANY STATE OF THE UNITED STATES. THE HOLDER OF THIS NOTE, BY PURCHASING THIS NOTE, AGREES FOR THE BENEFIT OF THE ISSUER AND THE DEPOSITORS THAT THIS NOTE MAY BE SOLD, TRANSFERRED, ASSIGNED, PARTICIPATED, PLEDGED OR OTHERWISE DISPOSED OF ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS, AND ONLY (I) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (II) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER, WITHIN THE MEANING OF RULE l44A (A “QIB”), PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE, OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (III) TO OR BY THE DEPOSITORS OR THEIR AFFILIATES, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND SECURITIES AND BLUE SKY LAWS OF THE STATES OF THE UNITED STATES.

 

EACH HOLDER OF THIS NOTE (OR OF A BENEFICIAL INTEREST IN THIS NOTE) THAT IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR ANY FEDERAL, STATE, LOCAL OR NON-U.S. LAW OR REGULATION THAT IS SUBSTANTIALLY SIMILAR TO THE PROVISIONS OF TITLE I OF ERISA OR SECTION 4975 OF THE CODE (A “SIMILAR LAW”), BY ACCEPTING THIS NOTE (OR A BENEFICIAL INTEREST IN THIS NOTE), IS DEEMED TO REPRESENT THAT ITS PURCHASE, HOLDING AND DISPOSITION OF THIS NOTE (OR A BENEFICIAL INTEREST IN THIS NOTE) DOES NOT CONSTITUTE AND WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER TITLE I OF ERISA OR SECTION 4975 OF THE CODE DUE TO THE APPLICABILITY OF A STATUTORY OR ADMINISTRATIVE EXEMPTION FROM

 

A-1

 

THE PROHIBITED TRANSACTION RULES (OR, IF THE HOLDER IS SUBJECT TO ANY SIMILAR LAW, SUCH PURCHASE, HOLDING OR DISPOSITION DOES NOT CONSTITUTE AND WILL NOT RESULT IN A VIOLATION OF SUCH SIMILAR LAW).

 

A-2

 

	
Registered
    	
$                            (1)
    
	
No. [A-[    ]/B/C/D]-
    	
CUSIP No. [                          ]
    
	
 
    	
ISIN No. [                          ]
    

 

FORD CREDIT FLOORPLAN MASTER OWNER TRUST A
 SERIES 2014-1 ASSET BACKED NOTES, CLASS [A-[    ]/B/C/D]

 

Ford Credit Floorplan Master Owner Trust A (the “Trust” or the “Issuer”), a Delaware statutory trust governed by the Second Amended and Restated Trust Agreement, dated as of August 1, 2001, as amended and restated as of December 1, 2010, for value received, promises to pay to CEDE & CO., or registered assigns, subject to the following provisions, the principal sum of                                                                Dollars, or such greater or lesser amount as determined in accordance with the Indenture and the Indenture Supplement (each as defined on the reverse of this Class [A-[    ]/B/C/D] Note), on the February 2019 Payment Date (the “Series 2014-1 Final Maturity Date”), except as otherwise provided below or in the Indenture or the Indenture Supplement.  Beginning on March 17, 2014 and on each subsequent Payment Date until the principal amount of this Class [A-[    ]/B/C/D] Note is paid in full, the Issuer will pay interest on the unpaid principal amount of this Class [A-[    ]/B/C/D] Note at an annual rate equal to [the sum of LIBOR and] [    ]% (the “Class [A-[    ]/B/C/D] Note Interest Rate”), as determined pursuant to the Indenture Supplement.  Interest on this Class [A-[    ]/B/C/D] Note will begin accruing from February 19, 2014 (the “Closing Date”) and will be payable in arrears on each Payment Date, computed on the basis of a 360-day year [and the actual number of days elapsed] [consisting of twelve 30-day months].  The principal of this Class [A-[    ]/B/C/D] Note will be paid in the manner specified on the reverse of this Class [A-[    ]/B/C/D] Note.

 

The principal of and interest on this Class [A-[    ]/B/C/D] Note are payable in such currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.

 

Reference is made to the further provisions of this Class [A-[    ]/B/C/D] Note set forth on the reverse of this Class [A-[    ]/B/C/D] Note, which will have the same effect as though fully set forth on the face of this Class [A-[    ]/B/C/D] Note.

 

Unless the certificate of authentication on this Class [A-[    ]/B/C/D] Note has been executed by or on behalf of the Indenture Trustee, by manual signature, this Class [A-[    ]/B/C/D] Note will not be entitled to any benefit under the Indenture or the Indenture Supplement referred to on the reverse of this Class [A-[    ]/B/C/D] Note, or be valid for any purpose.

 

(1)                                 Denominations of $1,000 and integral multiples of $1,000 in excess thereof.

 

A-3

 

The Issuer has caused this Class [A-[    ]/B/C/D] Note to be duly executed.

 

	
 
    	
FORD   CREDIT FLOORPLAN MASTER OWNER
    
	
 
    	
 
    	
TRUST   A, as Issuer
    
	
 
    	
 
    
	
 
    	
By:
    	
U.S.   BANK TRUST NATIONAL ASSOCIATION,
   not in its individual capacity, but solely as Owner
   Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

Dated:                 ,

 

Indenture Trustee’s Certificate of Authentication

 

This is one of the Class [A-[    ]/B/C/D] Notes described in the within-mentioned Indenture.

 

	
 
    	
THE BANK   OF NEW YORK MELLON,
    
	
 
    	
 
    	
not in   its individual capacity, but solely as Indenture
   Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Responsible   Person
    

 

A-4

 

FORD CREDIT FLOORPLAN MASTER OWNER TRUST A
 SERIES 2014-1 ASSET BACKED NOTES, CLASS [A-[    ]/B/C/D]

 

Summary of Terms and Conditions

 

This Class [A-[    ]/B/C/D] Note is one of a duly authorized issue of Notes of the Issuer, designated as the Series 2014-1 Asset Backed Notes (the “Notes”), issued under the Second Amended and Restated Indenture, dated as of August 1, 2001, as amended and restated as of December 1, 2010 (as amended and supplemented, the “Indenture”), between the Issuer and The Bank of New York Mellon, as indenture trustee (the “Indenture Trustee”), as supplemented by the Series 2014-1 Indenture Supplement, dated as of February 1, 2014 (the “Indenture Supplement” and, together with the Indenture, the “Series Agreement”), and representing the right to receive certain payments from the Issuer.  The Notes are subject to all of the terms of the Series Agreement.  All terms used in this Class [A-[    ]/B/C/D] Note that are defined in the Series Agreement have the meanings specified in the Series Agreement.  In the event of any conflict or inconsistency between the Series Agreement and this Class [A-[    ]/B/C/D] Note, the Series Agreement controls.

 

The Class [A-[    ]] Notes, in an initial aggregate principal amount of $                      , the Class [A-[    ]/B] Notes, in an initial aggregate principal amount of $                      , the Class [B/C/D] Notes, in an initial aggregate principal amount of $                          , and the Class [C/D] Notes, in an initial aggregate principal amount of $                           will also be issued under the Series Agreement.  The rights of the holders of the Class A-1 and Class A-2 Notes rank pari passu with respect to payments of interest and principal.  The rights of the holders of the [Class B/Class C and] Class D Notes to receive payments on the [Class B/Class C and] Class D Notes are subordinate to the rights of the holders of the Class A-1, Class A-2 [Class B and Class C] Notes to receive payments as specified in the Series Agreement.

 

The Noteholder, by its acceptance of this Class [A-[    ]/B/C/D] Note, agrees that it will look solely to the property of the Issuer allocated to the payment of the Notes for payment under this Class [A-[    ]/B/C/D] Note and under the Series Agreement and that neither the Issuer nor the Indenture Trustee is liable to the Noteholders for any amount payable under the Notes or the Series Agreement or, except as provided in the Series Agreement, subject to any liability under the Series Agreement.

 

This Class [A-[    ]/B/C/D] Note does not purport to summarize the Series Agreement and reference is made to the Series Agreement for the interests, rights and limitations of rights, benefits, obligations and duties evidenced by this Class [A-[    ]/B/C/D] Note, and the rights, duties and immunities of the Indenture Trustee.

 

The initial Note Balance of this Class [A-[    ]/B/C/D] Note is $                            .  The Note Balance of this Class [A-[    ]/B/C/D] Note on any date of determination will be an amount equal to (a) the initial Note Balance of this Class [A-[    ]/B/C/D] Note, minus (b) the aggregate amount of principal payments made to the Noteholders of this Class [A-[    ]/B/C/D] Note on or before such date.

 

A-5

 

The Expected Final Payment Date is the February 2017 Payment Date, but principal with respect to the Class [A-[    ]/B/C/D] Notes may be paid earlier or later under certain circumstances described in the Series Agreement.  Payments of principal of the Notes will be payable in accordance with the Series Agreement.

 

Subject to the terms and conditions of the Series Agreement, the Depositors may, from time to time, direct the Owner Trustee, on behalf of the Issuer, to issue one or more new Series of notes.

 

On each Payment Date, the Note Paying Agent will pay to each Class [A-[    ]/B/C/D] Noteholder of record on the related Record Date (except for the final payment in respect of this Class [A-[    ]/B/C/D] Note) such Class [A-[    ]/B/C/D] Noteholder’s pro rata share of the amounts held by the Note Paying Agent that are allocated and available on such Payment Date to pay interest and principal on the Class [A-[    ]/B/C/D] Notes pursuant to the Indenture Supplement. Except as provided in the Series Agreement with respect to a final payment, payments to the Noteholders will be made (a) (i) if such Noteholder has provided the Note Registrar appropriate instructions at least five Business Days before such Payment Date and the aggregate original principal amount of such Noteholder’s Class [A-[    ]/B/C/D] Notes is at least $1,000,000, by wire transfer in immediately available funds to the account of such Noteholder or (ii) by check mailed first class, postage prepaid to each Noteholder (at such Noteholder’s address as it appears in the Note Register), except that with respect to any Notes registered in the name of the nominee of the Clearing Agency, such distribution will be made in immediately available funds and (b) without presentation or surrender of any Note or the making of any notation on such note.  Final payment of this Class [A-[    ]/B/C/D] Note will be made only upon presentation and surrender of this Class [A-[    ]/B/C/D] Note at the office or agency specified in the notice of final payment delivered by the Indenture Trustee to the Noteholders in accordance with the Series Agreement.

 

This Class [A-[    ]/B/C/D] Note does not represent an obligation of, or an interest in, Ford Credit Floorplan Corporation or Ford Credit Floorplan LLC (the “Depositors”), Ford Motor Credit Company LLC, Ford Motor Company or any Affiliate of any of them and is not insured or guaranteed by any governmental agency or instrumentality.

 

Each Noteholder, by accepting a Note, covenants and agrees that it will not at any time institute against the Issuer or the Depositors, or join in instituting against the Issuer or the Depositors, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or state bankruptcy or similar law.

 

Except as otherwise provided in the Indenture Supplement, the Class [A-[    ]/B/C/D] Notes are issuable only in minimum denominations of $1,000 and integral multiples of $1,000. The transfer of this Class [A-[    ]/B/C/D] Note will be registered in the Note Register upon surrender of this Class [A-[    ]/B/C/D] Note for registration of transfer at any office or agency maintained by the Note Registrar accompanied by a written instrument of transfer, in a form satisfactory to the Indenture Trustee or the Note Registrar, duly executed by the Class  [A-[    ]/B/C/D] Noteholder or such Noteholder’s attorney, and duly authorized in writing with such signature guaranteed, and upon such surrender one or more new Class [A-[    ]/B/C/D] Notes in

 

A-6

 

any authorized denominations of like aggregate principal amount will be issued to the designated transferee or transferees.

 

As provided in the Series Agreement and subject to certain limitations forth in the Series Agreement, Class [A-[    ]/B/C/D] Notes are exchangeable for new Class [A-[    ]/B/C/D] Notes in any authorized denominations and of like aggregate principal amount, upon surrender of such Notes to be exchanged at the office or agency of the Note Registrar.  No service charge may be imposed for any such exchange but the Issuer or Note Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with such exchange.

 

The Issuer, the Depositors, the Indenture Trustee and any agent of the Issuer, the Depositors or the Indenture Trustee will treat the person in whose name this Class [A-[    ]/B/C/D] Note is registered as the owner of this Class [A-[    ]/B/C/D] Note for all purposes, and none of the Issuer, the Depositors, the Indenture Trustee or any agent of the Issuer, the Depositors or the Indenture Trustee will be affected by notice to the contrary.

 

The holder of this Class [A-[    ]/B/C/D] Note, by its acceptance of this Class [A-[    ]/B/C/D] Note, and the owner of a beneficial interest in this Class [A-[    ]/B/C/D] Note, by its acceptance of such beneficial interest, covenant and agree that (a) they will not at any time institute against the Issuer or the Depositors, or join in instituting against the Issuer or the Depositors, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating to the Notes, the Indenture, the Indenture Supplement or any of the other related transaction documents and (b) if any Depositor becomes a debtor or debtor in possession in a case under any applicable United States federal or state bankruptcy, insolvency or other similar law now or hereafter in effect or otherwise subject to any insolvency, reorganization, liquidation, rehabilitation or other similar proceedings, any claim that the holders of the Notes of any Series may have at any time against the Issuer’s assets allocated in accordance with the Indenture to any Series unrelated to such Notes, and any claim that the holders of such Notes have at any time against the Depositors that they may seek to enforce against such Issuer’s assets allocated to any unrelated Series, will be subordinate to the payment in full (including post-petition interest) of the claims of the holders of any Notes of such unrelated Series and of the holders of any other notes, bonds, contracts or other obligations relating to such unrelated Series.

 

The holder of this Class [A-[    ]/B/C/D] Note, by acceptance of this Class [A-[    ]/B/C/D] Note, and each holder of a beneficial interest therein, agree to treat the Class [A-[    ]/B/C/D] Notes as indebtedness of the Issuer for applicable United States federal, state and local income and franchise tax purposes.

 

THIS CLASS [A-[    ]/B/C/D] NOTE IS TO BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER ARE TO BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

A-7

 

Assignment

 

	
Social   Security or other identifying number of assignee
    	
 
    	
 
    

 

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

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
(name   and address of assignee)
    	
 
    

 

the within note and all rights under such note, and irrevocably constitutes and appoints                                                                                                                   , attorney, to transfer such note on the books kept for registration of such note, with full power of substitution in the premises.

 

	
 
    	
 
    	
 
    	
 
    	
 
    
	
Dated:
    	
 
    	
 
    	
 
    	
(1)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Signature   Guaranteed:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

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

 

A-8

 

Exhibit B

 

Form of Monthly Investor Report

 

B-1

 

Ford Credit Floorplan Master Owner Trust A

Monthly Servicing Report

 

	
Collection   Period
    	
 
    	
/    /20    -    /    /20
    
	
Payment   Date
    	
 
    	
/    /20
    

 

	
Contents
    	
 
    	
Pages
    
	
Trust   Summary
    	
 
    	
1   - 5
    
	
20    -
    	
 
    	
6   - 8
    

 

Trust Summary

 

I. Principal Receivables

 

	
 
    	
 
    	
 
    	
Trust Total
    	
 
    
	
A. Beginning Adjusted Pool   Balance
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
B. Principal Collections
    	
 
    	
$
    	
 
    	
 
    
	
C. Principal Adjustments
    	
 
    	
$
    	
 
    	
 
    
	
D. Principal Reduction - Redesignated Accounts
    	
 
    	
$
    	
 
    	
 
    
	
E. Defaulted Receivables
    	
 
    	
$
    	
 
    	
 
    
	
F. New Principal Receivables
    	
 
    	
$
    	
 
    	
 
    
	
G. Principal Increase - Additional Accounts
    	
 
    	
$
    	
 
    	
 
    
	
H. Net Deposits / (Withdrawals) to the Excess   Funding Account
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Ending Adjusted Pool Balance   (A-B-C-D-E+F+G+H)
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Monthly Principal Payment Rate
    	
 
    	
 
    	
%
    

 

II. Interest Collections

 

	
 
    	
 
    	
Trust Total
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Gross Interest Collections
    	
 
    	
$
    	
 
    	
 
    
	
Interest Adjustments
    	
 
    	
$
    	
 
    	
 
    
	
Recoveries
    	
 
    	
$
    	
 
    	
 
    
	
Interest Earned on Collection Account
    	
 
    	
$
    	
 
    	
 
    
	
Interest Earned on Excess Funding Account 
    	
 
    	
$
    	
 
    	
 
    
	
Interest Earned on Backup Servicer Reserve   Account 
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Interest Collections
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Memo: Monthly Yield
    	
 
    	
 
    	
%
    

 

III. Principal Collections

 

	
 
    	
 
    	
 
    	
Trust Total
    	
 
    
	
Principal Collections
    	
 
    	
$
    	
 
    	
 
    

 

2

 

Ford Credit Floorplan Master Owner Trust A

Monthly Servicing Report

 

	
Collection   Period
    	
 
    	
/    /20    -    /    /20
    
	
Payment   Date
    	
 
    	
/    /20
    

 

IV. Series

 

	
Series
    	
 
    	
Beg of Period
   Adjusted Invested
   Amount
    	
 
    	
Increase/
   (Decrease)
    	
 
    	
End of Period
   Adjusted Invested
   Amount
    	
 
    	
Increase/
   (Decrease)
    	
 
    	
Payment Date
   Adjusted Invested
   Amount
    	
 
    
	
20    -    
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    
	
20    -    
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    
	
Depositor Amt.
    	
 
    	
$
    	
 
    	
 
    	
 
    	
 
    	
$
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
$
    	
 
    	
 
    	
 
    	
 
    	
$
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

V. Principal and Interest

 

	
Series
    	
 
    	
Floating Investor
   Percentage
    	
 
    	
Investor Principal
   Collections
    	
 
    	
Investor Interest
   Collections
    	
 
    
	
20    -      
    	
 
    	
 
    	
%
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    
	
20    -      
    	
 
    	
 
    	
%
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Depositor Pct.  
    	
 
    	
 
    	
%
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
%
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Memo
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Excess Depositor Percentage 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
%
    
	
Excess Depositor Collection
    	
 
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    
	
Depositor Servicing Fee
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
 
    	
 
    
	
Depositor Backup Servicing fee
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
 
    	
 
    

 

VI. Redesignated Accounts - Reassigned

 

	
 
    	
 
    	
Trust Total
    	
 
    
	
Principal Reduction - Receivables relating to   accounts (including Performance Impaired Accounts) that were reassigned by   the Issuer to the Depositors
    	
 
    	
$
    	
 
    	
 
    
					

 

VII. Excess Funding Account/Backup Servicer Reserve Account

 

	
Beginning Period Balance
    	
 
    	
$
    	
 
    	
 
    
	
Net Deposits / (Withdrawals)
    	
 
    	
$
    	
 
    	
 
    
	
Ending Period Balance
    	
 
    	
$
    	
 
    	
 
    
	
Determination Date balance before giving effect   to Payment Date Cashflows
    	
 
    	
$
    	
 
    	
 
    
	
Determination Date balance after giving effect to   Payment Date Cashflows
    	
 
    	
$
    	
 
    	
 
    
	
Backup Servicer Reserve Account
    	
 
    	
$
    	
 
    	
 
    
	
Memo
    	
 
    	
 
    	
 
    
	
Excess Funding Account as a pct. of aggregate   Adjusted Invested Amount
    	
 
    	
 
    	
%
    
	
Interest earned on Excess Funding Account
    	
 
    	
$
    	
 
    	
 
    

 

3

 

Ford Credit Floorplan Master Owner Trust A

Monthly Servicing Report

 

	
Collection   Period
    	
 
    	
/    /20    -    /    /20
    
	
Payment   Date
    	
 
    	
/    /20
    

 

VIII. Non-Conforming Receivables

 

	
 
    	
 
    	
Trust Total
    	
 
    
	
Ineligible Receivables
    	
 
    	
$
    	
 
    	
 
    
	
Dealer Overconcentration
    	
 
    	
$
    	
 
    	
 
    
	
Manufacturer Overconcentration (>6% of pool   balance) (a)
    	
 
    	
$
    	
 
    	
 
    
	
Manufacturer Overconcentration (2% to 6% of pool   balance) (b)
    	
 
    	
$
    	
 
    	
 
    
	
Used Vehicle Overconcentration (c)
    	
 
    	
$
    	
 
    	
 
    
	
Medium and Heavy Truck Overconcentration
    	
 
    	
$
    	
 
    	
 
    
	
Development Dealer Overconcentration
    	
 
    	
$
    	
 
    	
 
    
	
Fleet Overconcentration
    	
 
    	
$
    	
 
    	
 
    
	
Non-Conforming Receivable Amount
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Memo
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Principal Receivables relating to Vehicles on   Used Lines.
    	
 
    	
$
    	
 
    	
 
    
	
Principal Receivables relating to Vehicles on   Used Lines as a pct. of Pool Bal.
    	
 
    	
 
    	
%
    
	
Principal Receivables relating to AutoNation
    	
 
    	
$
    	
 
    	
 
    
	
Principal Receivables relating to AutoNation as a   pct. of Pool Bal.
    	
 
    	
 
    	
%
    
	
Principal Receivables relating to Development   Dealers
    	
 
    	
$
    	
 
    	
 
    
	
Principal Receivables relating to Development   Dealers as a pct. of Pool Bal.
    	
 
    	
 
    	
%
    
	
Principal Receivables relating to Fleet
    	
 
    	
$
    	
 
    	
 
    
	
Principal Receivables relating to Fleet as a pct.   of Pool Bal.
    	
 
    	
 
    	
%
    
	
Principal Receivables relating to New and Used   Medium Heavy Truck Lines
    	
 
    	
$
    	
 
    	
 
    
	
Principal Receivables relating to New and Used   Medium Heavy Truck Lines as a pct. of Pool Bal.
    	
 
    	
 
    	
%
    
	
Principal Receivables relating to Program   Vehicles (d)
    	
 
    	
$
    	
 
    	
 
    
	
Principal Receivables relating to Program   Vehicles as pct of Pool Bal  
    	
 
    	
 
    	
%
    

 

(a) Non-Conforming Receivables Amount for Series with a 6% Manufacturer Overconcentration Threshold (Series 20    -    , 20    -    )

(b) Non-Conforming Receivables Amount for Series with a 2% Manufacturer Overconcentration Threshold (Series 20    -    , 20    -    )

(c) Includes receivables related to vehicles on Used Lines and Program Lines

(d) Primarily off-lease vehicles purchased by a dealer at a Ford Credit approved auction.  Program lines are separate from Used Lines

 

4

 

Ford Credit Floorplan Master Owner Trust A

Monthly Servicing Report

 

	
Collection   Period
    	
 
    	
/    /20    -    /    /20
    
	
Payment   Date
    	
 
    	
/    /20
    

 

IX. Subordination and Depositor Amount as of Determination Date

 

	
Series
    	
 
    	
Subordinated
    Pct.
    	
 
    	
Subordinated Pct.
    times (Adj. Invested
    Amount minus EFA)
    (A)
    	
 
    	
Incremental
    Subordinated
    Amount
    (B)
    	
 
    	
Required
    Subordinated
    Amount
    (B)
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
20    -    
    	
 
    	
 
    	
%
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    
	
20    -    
    	
 
    	
 
    	
%
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    

 

	
Series
    	
 
    	
Required
   Subordinated
   Amount
    (C)
    	
 
    	
Required Pool Pct
    minus 100% times
    Initial Invested
    Amount
    (D)
    	
 
    	
Required Depositor
   Amount as of
   Determination Date
    (C+D)
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
20    -    
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
 
    	
 
    
	
20    -    
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Required Depositor Amount
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
 
    	
 
    	
 
    	
 
    
	
Depositor Amount
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Memo: Determination Date Pool   Balance
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
 
    	
 
    
														

 

X. Redesignation Notice

 

Notice is hereby given, pursuant to Section 2.7(b)(i) of the Fifth Amended and Restated Sale and Servicing Agreement dated as of December 1, 2010, that the redesignation of certain Account and the reassignment of the Receivables and Related Security arising in connection with such Accounts occurred on the Redesignation Date of     /    /20    , and a Redesignated Account Schedule has been delivered to the Owner Trustee and the Indenture Trustee in accordance with the Sale and Servicing Agreements.

 

	
 
    	
 
    	
 
    	
 
    	
Resesignated Accounts
    
	
Depositor
    	
 
    	
Trust
    	
 
    	
Yes
    	
 
    	
No
    
	
Ford   Credit Floorplan Corporation
    	
 
    	
Ford   Credit Floorplan Master Owner Trust A
    	
 
    	
x
    	
 
    	
 
    
	
Ford   Credit Floorplan LLC
    	
 
    	
Ford   Credit Floorplan Master Owner Trust A
    	
 
    	
x
    	
 
    	
 
    

 

5

 

Ford Credit Floorplan Master Owner Trust A

Monthly Servicing Report

 

	
Collection   Period
    	
 
    	
/    /20    -    /    /20
    
	
Payment   Date
    	
 
    	
/    /20
    

 

XI. Early Amortization Declarations

 

	
 
    	
 
    	
Yes
    	
 
    	
No
    
	
1.   Breach of covenants or agreements made in the SSA, Indent. or Supp. and   uncured for 60 days
    	
 
    	
 
    	
 
    	
x
    
	
2.   Failure to make any req. pmt. or deposit under SSA, Indent. or Supp. and   uncured for 5 bus. days
    	
 
    	
 
    	
 
    	
x
    
	
3.   Breach of any rep. or warranty made in the SSA, Indent. or Supp. and   uncured for 60 days
    	
 
    	
 
    	
 
    	
x
    
	
4.   Bankruptcy, insolvency or receivership of Ford Credit, FCFMOTA or Ford
    	
 
    	
 
    	
 
    	
x
    
	
5.   FCFMOTA is an investment company within the meaning of the ICA of 1940
    	
 
    	
 
    	
 
    	
x
    
	
6.   Failure of FCF Corp or FCF LLC to convey Receiv. pursuant to the SSA and   uncured for 10 days
    	
 
    	
 
    	
 
    	
x
    
	
7.   Available Sub. Amt. is less than the Required Sub. Amt. and uncured for 5   days
    	
 
    	
 
    	
 
    	
x
    
	
8.   Servicer default or an event of default with respect to the outstanding notes   has occurred
    	
 
    	
 
    	
 
    	
x
    
	
9.   Average monthly payment rate for the past three periods is less than 21%
    	
 
    	
 
    	
 
    	
x
    
	
10.   Excess Funding Acct. Bal. exceeds 30% of Outstanding Series Adj. Inv.   Amts. for 3 periods
    	
 
    	
 
    	
 
    	
x
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Memo

Additional   statistical information regarding Ford Credit’s U.S. Dealer Floorplan   portfolio and the Trust’s portfolio for the most recently available quarter   can be found on Ford Credit’s website at   http://fordcredit.com/institutionalinvestments/jindex.html.
    

 

6

 

Ford Credit Floorplan Master Owner Trust A

Monthly Servicing Report

 

	
Collection   Period
    	
 
    	
/    /20    -    /    /20
    
	
Payment   Date
    	
 
    	
/    /20
    

 

Series 20    -     Summary

 

I.  20    -     Origination Information

 

	
Date of   Origination:
    	
 
    	
    ,   20
    
	
Expected   Final Maturity Date
    	
 
    	
    ,   20
    
	
Final   Maturity Date
    	
 
    	
    ,   20
    

 

	
 
    	
 
    	
Beginning of Period
    Adjusted Invested
    Amount
    	
 
    	
Increase /
   (Decrease)
    	
 
    	
End of Period
   Adjusted
    Invested Amount
    	
 
    	
Increase /
   (Decrease)
    	
 
    	
Payment Date
   Adjusted
    Invested Amount
    	
 
    
	
Class     
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    
	
Class     
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    
	
Class     
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    
	
Class     
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    

 

II.  Series Allocations

 

	
Current Floating Investor Percentage  
    	
 
    	
 
    	
%
    
	
Investor Principal Collections
    	
 
    	
$
    	
 
    	
 
    
	
Principal Default Amounts
    	
 
    	
$
    	
 
    	
 
    
	
Investor Interest Collections
    	
 
    	
$
    	
 
    	
 
    

 

III.  Collections

 

	
Interest
    	
 
    	
 
    	
 
    
	
Investor Interest Collections
    	
 
    	
$
    	
 
    	
 
    
	
Reserve Fund Investment Proceeds
    	
 
    	
$
    	
 
    	
 
    
	
Accumulation Period Reserve Account Release
    	
 
    	
$
    	
 
    	
 
    
	
Accumulation Period Reserve Account Investment   Proceeds
    	
 
    	
$
    	
 
    	
 
    
	
Principal Funding Account Investment Proceeds
    	
 
    	
$
    	
 
    	
 
    
	
Excess Depositor Interest Allocation
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Available Investor Interest   Collections
    	
 
    	
$
    	
 
    	
 
    
	
Shared Interest Collections from Excess Interest   Sharing Group One
    	
 
    	
$
    	
 
    	
 
    
	
Available Subordination Draw 
    	
 
    	
$
    	
 
    	
 
    
	
Reserve Fund Draw
    	
 
    	
$
    	
 
    	
 
    
	
Reallocated Principal Allocations
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Total Interest Collections
    	
 
    	
$
    	
 
    	
 
    

 

	
Principal
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Investor Principal Collections 
    	
 
    	
$
    	
 
    	
 
    
	
Investor Default Amount, Investor Charge-Off   and Reallocated Principal Collections
    	
 
    	
$
    	
 
    	
 
    
	
Shared Principal Collections from Principal   Sharing Group One (Withdrawal from EFA)
    	
 
    	
$
    	
 
    	
 
    
	
Reserve Fund Draw
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Available Investor Principal   Collections
    	
 
    	
$
    	
 
    	
 
    

 

7

 

Ford Credit Floorplan Master Owner Trust A

Monthly Servicing Report

 

	
Collection   Period
    	
 
    	
/    /20    -    /    /20
    
	
Payment   Date
    	
 
    	
/    /20
    

 

IV. Interest Calculations

 

	
 
    	
 
    	
Class      Notes
    	
 
    	
Class      Notes
    	
 
    	
Class      Notes
    	
 
    	
Class      Notes
    	
 
    
	
Original Principal Outstanding
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    
	
LIBOR  
    	
 
    	
 
    	
%
    	
 
    	
%
    	
 
    	
%
    	
 
    	
%
    
	
Spread  
    	
 
    	
 
    	
%
    	
 
    	
%
    	
 
    	
%
    	
 
    	
%
    
	
Note Interest Rate  
    	
 
    	
 
    	
%
    	
 
    	
%
    	
 
    	
%
    	
 
    	
%
    
	
Days in Interest Period
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Monthly Interest
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    

 

V.  Available Investor Interest Collections Distribution Payments by Priority

 

	
Total Interest Amount
    	
 
    	
$
    	
 
    	
 
    
	
(1) Accrued Note Interest –   Class      Notes 
    	
 
    	
$
    	
 
    	
 
    
	
(2) Accrued Note Interest –   Class      Notes
    	
 
    	
$
    	
 
    	
 
    
	
(3) Accrued Note Interest –   Class      Notes
    	
 
    	
$
    	
 
    	
 
    
	
(4) Accrued Note Interest –   Class      Notes
    	
 
    	
$
    	
 
    	
 
    
	
(5) Unpaid Fees and Disbursements to   Owner/Indenture Trustee up to a max of $150,000.00 per year
    	
 
    	
$
    	
 
    	
 
    
	
(6) Current and past due Back-up Servicing   Fee or Servicing Fee if Ford Credit is no longer Servicer
    	
 
    	
$
    	
 
    	
 
    
	
(7) Investor Default Amount, to be added to   Principal Collections
    	
 
    	
$
    	
 
    	
 
    
	
(8) Replenish Reserve Fund
    	
 
    	
$
    	
 
    	
 
    
	
(9) Investor Chargeoffs not previously   reimbursed, to be added to Principal Collections 
    	
 
    	
$
    	
 
    	
 
    
	
(10) Reallocated Principal Collections not   previously reimbursed, to be added to Principal Collections
    	
 
    	
$
    	
 
    	
 
    
	
(11) Fund Accumulation Period Reserve Account
    	
 
    	
$
    	
 
    	
 
    
	
(12) Servicing Fees due Ford Credit
    	
 
    	
$
    	
 
    	
 
    
	
(13) Required Subordination Shortfall to be sent   to holders of Depositor Interest
    	
 
    	
$
    	
 
    	
 
    
	
(14) Unpaid Fees and Disbursements to   Owner/Indenture Trustee pursuant to clause (5) 
    	
 
    	
$
    	
 
    	
 
    
	
(15) Other Amounts due to Back-up Servicer or   Successor Servicer
    	
 
    	
$
    	
 
    	
 
    
	
(16) Shared with other series in Excess Interest   Sharing Group One
    	
 
    	
$
    	
 
    	
 
    
	
(17) Remainder released to holders of Depositor   Interest
    	
 
    	
$
    	
 
    	
 
    

 

VI.  Available Investor Principal Collections Distribution Payments by Priority

 

	
Available Investor Principal Collections
    	
 
    	
$
    	
 
    	
 
    
	
Deposit to Principal Funding Account
    	
 
    	
$
    	
 
    	
 
    
	
Shared with other series in Principal Sharing   Group One
    	
 
    	
$
    	
 
    	
 
    
	
Remainder released to holders of Depositor   Interest
    	
 
    	
$
    	
 
    	
 
    

 

VII.  Subordination and Participation

 

	
Subordination Percentage  
    	
 
    	
 
    	
%
    
	
Incremental Subordinated Amount
    	
 
    	
$
    	
 
    	
 
    
	
Required Subordinated Amount
    	
 
    	
$
    	
 
    	
 
    
	
Required Pool Pct. minus 100% times Initial   Invested Amount
    	
 
    	
$
    	
 
    	
 
    
	
Required Depositor Amount   Series 20    -    
    	
 
    	
$
    	
 
    	
 
    

 

8

 

Ford Credit Floorplan Master Owner Trust A

Monthly Servicing Report

 

	
Collection   Period
    	
 
    	
/    /20    -    /    /20
    
	
Payment   Date
    	
 
    	
/    /20
    

 

VIII.  Distribution to Holders of Notes

(per $1,000 denomination note)

 

	
Total Amount Allocable to Principal   Class     
    	
 
    	
$
    	
 
    	
 
    
	
Total Amount Allocable to Interest   Class     
    	
 
    	
$
    	
 
    	
 
    
	
Total Amount Distributed to   Class     
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Total Amount Allocable to Principal   Class     
    	
 
    	
$
    	
 
    	
 
    
	
Total Amount Allocable to Interest   Class     
    	
 
    	
$
    	
 
    	
 
    
	
Total Amount Distributed to   Class     
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Total Amount Allocable to Principal   Class     
    	
 
    	
$
    	
 
    	
 
    
	
Total Amount Allocable to Interest   Class     
    	
 
    	
$
    	
 
    	
 
    
	
Total Amount Distributed to   Class     
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Total Amount Allocable to Principal   Class     
    	
 
    	
$
    	
 
    	
 
    
	
Total Amount Allocable to Interest   Class     
    	
 
    	
$
    	
 
    	
 
    
	
Total Amount Distributed to   Class     
    	
 
    	
$
    	
 
    	
 
    

 

IX.  Reserve Fund

 

	
Beginning of Collection Period Balance
    	
 
    	
$
    	
 
    	
 
    
	
Reserve Fund Draw
    	
 
    	
$
    	
 
    	
 
    
	
Increases/(Decreases)
    	
 
    	
$
    	
 
    	
 
    
	
End of Collection Period Balance
    	
 
    	
$
    	
 
    	
 
    
	
Increases/(Decreases)
    	
 
    	
$
    	
 
    	
 
    
	
Payment Date Balance
    	
 
    	
$
    	
 
    	
 
    

 

X.  Memo Items

 

	
Excess Funding Amount   Series 20    -    
    	
 
    	
$
    	
 
    	
 
    
	
Accumulation Period Reserve Account Balance
    	
 
    	
$
    	
 
    	
 
    
	
Controlled Accumulation Amount - This Period
    	
 
    	
$
    	
 
    	
 
    
	
Controlled Accumulation Amount - Cumulative
    	
 
    	
$
    	
 
    	
 
    

 

9

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