Document:

Amended and Restated Loan Agreement

 EXHIBIT 10.1 

 AMENDED AND RESTATED 
 LOAN AND
SECURITY AGREEMENT 
 by and among 
 CELLSTAR CORPORATION 
 and 
 EACH OF ITS SUBSIDIARIES THAT ARE SIGNATORIES HERETO 
 as Borrowers,

 THE LENDERS THAT ARE SIGNATORIES HERETO 
 as the Lenders, 
 and 
 WELLS FARGO FOOTHILL, INC. (f/k/a Foothill Capital Corporation) 
 as the
Arranger and Administrative Agent 
 Dated as of March 31, 2006 
  

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page
	1.	  	DEFINITIONS AND CONSTRUCTION.	  	2
				
		  	1.1	  	 Definitions
	  	2
		  	1.2	  	 Accounting Terms
	  	29
		  	1.3	  	 Code
	  	29
		  	1.4	  	 Construction
	  	29
		  	1.5	  	 Schedules and Exhibits
	  	29
			
	2.	  	LOAN AND TERMS OF PAYMENT.	  	30
				
		  	2.1	  	 Revolver Advances
	  	30
		  	2.2	  	 Intentionally Omitted
	  	31
		  	2.3	  	 Borrowing Procedures and Settlements
	  	31
		  	2.4	  	 Payments
	  	38
		  	2.5	  	 Overadvances
	  	40
		  	2.6	  	 Interest Rates and Letter of Credit Fee: Rates, Payments, and Calculations
	  	40
		  	2.7	  	 Cash Management
	  	42
		  	2.8	  	 Crediting Payments; Float Charge
	  	43
		  	2.9	  	 Designated Account
	  	43
		  	2.10	  	 Maintenance of Loan Account; Statements of Obligations
	  	43
		  	2.11	  	 Fees
	  	44
		  	2.12	  	 Letters of Credit
	  	44
		  	2.13	  	 LIBOR Option
	  	48
		  	2.14	  	 Capital Requirements
	  	50
		  	2.15	  	 Joint and Several Liability of Borrowers
	  	50
			
	3.	  	CONDITIONS; TERM OF AGREEMENT.	  	53
				
		  	3.1	  	 Conditions Precedent to the Initial Extension of Credit
	  	53
		  	3.2	  	 Conditions Subsequent to the Initial Extension of Credit
	  	55
		  	3.3	  	 Conditions Precedent to all Extensions of Credit.
	  	55
		  	3.4	  	 Intentionally Omitted
	  	56
		  	3.5	  	 Term
	  	56
		  	3.6	  	 Effect of Termination
	  	56
		  	3.7	  	 Early Termination by Borrowers
	  	56
		  	3.8	  	 Effect of this Amendment and Restatement
	  	57

  

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	 	  	 	  	 	  	Page
			
	4.	  	CREATION OF SECURITY INTEREST.	  	58
				
		  	4.1	  	 Grant of Security Interest
	  	58
		  	4.2	  	 Negotiable Collateral
	  	58
		  	4.3	  	 Collection of Accounts, General Intangibles, and Negotiable Collateral
	  	58
		  	4.4	  	 Delivery of Additional Documentation Required; Authorization to File UCC Financing Statements
	  	59
		  	4.5	  	 Power of Attorney
	  	59
		  	4.6	  	 Right to Inspect
	  	60
		  	4.7	  	 Control Agreements
	  	60
			
	5.	  	REPRESENTATIONS AND WARRANTIES	  	60
				
		  	5.1	  	 No Encumbrances
	  	60
		  	5.2	  	 Eligible Accounts
	  	60
		  	5.3	  	 Eligible Inventory
	  	61
		  	5.4	  	 Equipment
	  	61
		  	5.5	  	 Location of Inventory and Equipment
	  	61
		  	5.6	  	 Inventory Records
	  	61
		  	5.7	  	 Location of Chief Executive Office; FEIN
	  	61
		  	5.8	  	 Due Organization and Qualification; Subsidiaries
	  	61
		  	5.9	  	 Due Authorization; No Conflict.
	  	62
		  	5.10	  	 Litigation
	  	62
		  	5.11	  	 No Material Adverse Change
	  	62
		  	5.12	  	 Fraudulent Transfer
	  	63
		  	5.13	  	 Employee Benefits
	  	63
		  	5.14	  	 Environmental Condition
	  	63
		  	5.15	  	 Brokerage Fees
	  	63
		  	5.16	  	 Intellectual Property
	  	63
		  	5.17	  	 Leases
	  	64
		  	5.18	  	 DDAs
	  	64

  

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	 	  	 	  	 	  	Page
		  	5.19	  	 Complete Disclosure
	  	64
		  	5.20	  	 Indebtedness
	  	64
		  	5.21	  	 Management Agreements
	  	64
			
	6.	  	AFFIRMATIVE COVENANTS.	  	64
				
		  	6.1	  	 Accounting System
	  	64
		  	6.2	  	 Collateral Reporting
	  	65
		  	6.3	  	 Financial Statements, Reports, Certificates
	  	66
		  	6.4	  	 Intentionally Omitted
	  	68
		  	6.5	  	 Return
	  	68
		  	6.6	  	 Maintenance of Properties
	  	68
		  	6.7	  	 Taxes
	  	68
		  	6.8	  	 Insurance
	  	69
		  	6.9	  	 Location of Inventory and Equipment
	  	69
		  	6.10	  	 Compliance with Laws
	  	70
		  	6.11	  	 Leases
	  	70
		  	6.12	  	 Brokerage Commissions
	  	70
		  	6.13	  	 Existence
	  	70
		  	6.14	  	 Environmental
	  	70
		  	6.15	  	 Disclosure Updates
	  	70
			
	7.	  	NEGATIVE COVENANTS	  	71
				
		  	7.1	  	 Indebtedness
	  	71
		  	7.2	  	 Liens
	  	72
		  	7.3	  	 Restrictions on Fundamental Changes.
	  	72
		  	7.4	  	 Disposal of Assets
	  	73
		  	7.5	  	 Change Name
	  	73
		  	7.6	  	 Guarantee
	  	73
		  	7.7	  	 Nature of Business
	  	73
		  	7.8	  	 Prepayments and Amendments
	  	73
		  	7.9	  	 Change of Control
	  	73
		  	7.10	  	 Consignments
	  	74

  

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	 	  	 	  	 	  	Page
		  	7.11	  	 Distributions
	  	74
		  	7.12	  	 Accounting Methods
	  	74
		  	7.13	  	 Investments
	  	74
		  	7.14	  	 Transactions with Affiliates
	  	74
		  	7.15	  	 Suspension
	  	75
		  	7.16	  	 Intentionally Omitted
	  	75
		  	7.17	  	 Use of Proceeds
	  	75
		  	7.18	  	 Change in Location of Chief Executive Office; Inventory and Equipment with Bailees
	  	75
		  	7.19	  	 Securities Accounts
	  	75
		  	7.20	  	 Financial Covenants
	  	76
		  	7.21	  	 Permitted Foreign Subsidiary Credit Facilities
	  	77
			
	8.	  	EVENTS OF DEFAULT.	  	77
			
	9.	  	THE LENDER GROUP’S RIGHTS AND REMEDIES.	  	79
				
		  	9.1	  	 Rights and Remedies
	  	79
		  	9.2	  	 Remedies Cumulative
	  	81
			
	10.	  	TAXES AND EXPENSES.	  	81
			
	11.	  	WAIVERS; INDEMNIFICATION.	  	82
				
		  	11.1	  	 Demand; Protest; etc
	  	82
		  	11.2	  	 The Lender Group’s Liability for Collateral
	  	82
		  	11.3	  	 Indemnification
	  	82
			
	12.	  	NOTICES.	  	83
			
	13.	  	CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER.	  	84
			
	14.	  	ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS.	  	85
				
		  	14.1	  	 Assignments and Participations
	  	85
		  	14.2	  	 Successors
	  	87
			
	15.	  	AMENDMENTS; WAIVERS.	  	88
				
		  	15.1	  	 Amendments and Waivers
	  	88
		  	15.2	  	 Replacement of Holdout Lender
	  	89
		  	15.3	  	 No Waivers; Cumulative Remedies
	  	89

  

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	 	  	 	  	 	  	Page
	16.	  	AGENT; THE LENDER GROUP.	  	89
				
		  	16.1	  	 Appointment and Authorization of Agent
	  	89
		  	16.2	  	 Delegation of Duties
	  	90
		  	16.3	  	 Liability of Agent
	  	90
		  	16.4	  	 Reliance by Agent
	  	91
		  	16.5	  	 Notice of Default or Event of Default
	  	91
		  	16.6	  	 Credit Decision
	  	91
		  	16.7	  	 Costs and Expenses; Indemnification
	  	92
		  	16.8	  	 Agent in Individual Capacity
	  	93
		  	16.9	  	 Successor Agent
	  	93
		  	16.10	  	 Lender in Individual Capacity
	  	93
		  	16.11	  	 Withholding Taxes
	  	94
		  	16.12	  	 Collateral Matters
	  	96
		  	16.13	  	 Restrictions on Actions by Lenders; Sharing of Payments
	  	96
		  	16.14	  	 Agency for Perfection
	  	97
		  	16.15	  	 Payments by Agent to the Lenders
	  	97
		  	16.16	  	 Concerning the Collateral and Related Loan Documents
	  	97
		  	16.17	  	 Field Audits and Examination Reports; Confidentiality; Disclaimers by Lenders; Other Reports and Information
	  	98
		  	16.18	  	 Several Obligations; No Liability
	  	99
		  	16.19	  	 Legal Representation of Agent
	  	99
			
	17.	  	GENERAL PROVISIONS.	  	99
				
		  	17.1	  	 Effectiveness
	  	99
		  	17.2	  	 Section Headings
	  	100
		  	17.3	  	 Interpretation
	  	100
		  	17.4	  	 Severability of Provisions
	  	100
		  	17.5	  	 Amendments in Writing
	  	100
		  	17.6	  	 Counterparts; Telefacsimile Execution
	  	100
		  	17.7	  	 Revival and Reinstatement of Obligations
	  	100
		  	17.8	  	 Patriot Act Notice
	  	100
		  	17.9	  	 Integration
	  	101
		  	17.10	  	 Parent as Agent for Borrowers
	  	101

  

 -v- 

			
	 EXHIBITS AND SCHEDULES

		
	 Exhibit A-1
	  	 Form of Assignment and Acceptance

		
	 Exhibit B-1
	  	 Form of Borrowing Base Certificate

		
	 Exhibit C-1
	  	 Form of Compliance Certificate

		
	 Exhibit L-1
	  	 Form of LIBOR Notice

		
	 Schedule C-1
	  	 Commitments

		
	 Schedule D-1
	  	 Subsidiaries Comprising the Domestic Business Unit

		
	 Schedule E-1
	  	 Eligible Inventory Locations

		
	 Schedule P-1
	  	 Permitted Liens

		
	 Schedule R-1
	  	 Real Property Collateral

		
	 Schedule 2.7(a)
	  	 Cash Management Banks

		
	 Schedule 3.2
	  	 Excluded First Tier Foreign Subsidiaries

		
	 Schedule 5.5
	  	 Locations of Inventory and Equipment

		
	 Schedule 5.7
	  	 Chief Executive Office; FEIN; Organizational Identification Number

		
	 Schedule 5.8(b)
	  	 Capitalization of Borrowers

		
	 Schedule 5.8(c)
	  	 Capitalization of Borrowers’ Subsidiaries

		
	 Schedule 5.9
	  	 Consents and Authorizations

		
	 Schedule 5.10
	  	 Litigation

		
	 Schedule 5.14
	  	 Environmental Matters

		
	 Schedule 5.16
	  	 Intellectual Property

		
	 Schedule 5.18
	  	 Demand Deposit Accounts

		
	 Schedule 5.20
	  	 Permitted Indebtedness

		
	 Schedule 5.21
	  	 Management Agreements

 AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 
 THIS AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Agreement”), is entered into as of March 31, 2006 between and
among, on the one hand, the lenders identified on the signature pages hereof (such lenders, together with their respective successors and assigns, are referred to hereinafter each individually as a “Lender” and collectively as the
“Lenders”), WELLS FARGO FOOTHILL, INC., formerly known as Foothill Capital Corporation, a California corporation with an office in Atlanta, Georgia, as the arranger and administrative agent for the Lenders
(“Agent”), and, on the other hand, CELLSTAR CORPORATION, a Delaware corporation (“Parent” and “Administrative Borrower”), and each of Parent’s Subsidiaries identified on the signature
pages hereof (such Subsidiaries, together with Parent, are referred to hereinafter each individually as a “Borrower”, and individually and collectively, jointly and severally, as the “Borrowers”). 
 WITNESSETH: 
 WHEREAS, Borrowers, Agent and
Lenders are parties to that certain Loan and Security Agreement, dated as of September 28, 2001 (as amended, supplemented, or otherwise modified prior to the date hereof, the “Prior Loan Agreement”); and 
 WHEREAS, Borrowers have requested that Agent and Lenders amend and restate the Prior Loan Agreement in its entirety to make certain changes and
amendments as set forth herein; and 
 WHEREAS, Agent and Lenders have each agreed to such amendment and restatement of the Prior Loan
Agreement in the manner set forth herein; and 
 WHEREAS, Borrowers acknowledge and agree that the security interests granted to Agent, for
the benefit of the Lender Group (as defined herein), pursuant to the Prior Loan Agreement and the other Loan Documents (as defined in the Prior Loan Agreement) shall remain outstanding and in full force and effect in accordance with the Prior Loan
Agreement and such other Loan Documents and shall continue to secure the Obligations (as defined herein); and 
 WHEREAS, each of Borrowers,
Agent and the Lenders acknowledges and agrees that (i) the Obligations (as defined herein) represent, among other things, the amendment, restatement, renewal, extension, consolidation and modification of the Obligations (as defined in the Prior
Loan Agreement) arising in connection with the Prior Loan Agreement and the other Loan Documents (as defined in the Prior Loan Agreement) executed in connection therewith; (ii) Borrowers, Agent and the Lenders intend that the Prior Loan
Agreement and the other Loan Documents (as defined in the Prior Loan Agreement) executed in connection therewith and the collateral pledged thereunder shall secure, without interruption or impairment of any kind, all existing Obligations (as defined
in the Prior Loan Agreement) under the Prior Loan Agreement and the other Loan Documents (as defined in the Prior Loan Agreement) executed in connection therewith as amended, restated, renewed, extended, consolidated and modified hereunder, together
with all other Obligations (as defined herein) hereunder; (iii) all Liens (as defined in the Prior Loan Agreement) evidenced by the Prior Loan Agreement and the other Loan Documents 

  

 1 

 
(as defined in the Prior Loan Agreement) executed in connection therewith are hereby ratified, confirmed and continued; (iv) this Agreement is intended to
restate, renew, extend, consolidate, amend and modify the Prior Loan Agreement; and (v) the Loan Documents (as defined in the Prior Loan Agreement) (other than the Prior Loan Agreement which shall be restated, renewed, extended, consolidated,
amended and modified as set forth herein) shall remain extant and in full force and effect (except to the extent amended and modified as of the date hereof); and 
 WHEREAS, each of Borrowers, Agent and the Lenders intend that (i) the provisions of the Prior Loan Agreement be hereby superseded and replaced by the provisions hereof; and (ii) by entering into and
performing their respective obligations hereunder, this transaction shall not constitute a novation; 
 NOW, THEREFORE, for and in
consideration of the premises and the mutual covenants herein set forth and other good and valuable consideration, the receipt and adequacy of all of the foregoing as legally sufficient consideration being hereby acknowledged, Borrowers, Agent and
the Lenders do hereby agree that the Prior Loan Agreement is amended and restated in its entirety by this Agreement, and further agree as follows: 
 1.
DEFINITIONS AND CONSTRUCTION. 
 1.1 Definitions. As used in this Agreement, the following terms shall have
the following definitions: 
 “Account Debtor” means any Person who is or who may become obligated under, with respect to, or
on account of, an Account, chattel paper, or a General Intangible. 
 “Accounts” means all of Borrowers’ now owned or
hereafter acquired right, title, and interest with respect to “accounts” (as that term is defined in the Code), and any and all supporting obligations in respect thereof. 
 “Additional Documents” has the meaning set forth in Section 4.4. 
 “Administrative Borrower” has the meaning set forth in Section 17.10. 
 “Advances” has the meaning set forth in Section 2.1. 
 “Affiliate” means, as applied to any Person, any other Person who, directly or indirectly, controls, is controlled by, or is under
common control with, such Person. For purposes of this definition, “control” means the possession, directly or indirectly, of the power to direct the management and policies of a Person, whether through the ownership of Stock, by contract,
or otherwise; provided, however, that, in any event: (a) any Person which owns directly or indirectly 10% or more of the securities having ordinary voting power for the election of directors or other members of the governing body
of a Person or 10% or more of the partnership or other ownership interests of a Person (other than as a limited partner of such Person) shall be deemed to control such Person; (b) each director (or comparable manager) of a Person shall be
deemed to be an Affiliate of such Person; and (c) each partnership or joint venture in which a Person is a partner or joint venturer shall be deemed to be an Affiliate of such Person. 
  

 2 

 “Agent” means Foothill, solely in its capacity as agent for the Lenders hereunder, and
any successor thereto. 
 “Agent’s Account” means an account at a bank designated by Agent from time to time as the
account into which Borrowers shall make all payments to Agent for the benefit of the Lender Group and into which the Lender Group shall make all payments to Agent under this Agreement and the other Loan Documents; unless and until Agent notifies
Administrative Borrower and the Lender Group to the contrary, Agent’s Account shall be that certain deposit account bearing account number 323-266193 and maintained by Agent with JPMorgan Chase Bank, 4 New York Plaza, 15th Floor, New York, New
York 10004, ABA #021000021. Agent shall provide Administrative Borrower with a copy of the monthly bank statements for the Agent’s Account. 
 “Agent Advances” has the meaning set forth in Section 2.3(e)(i). 
 “Agent’s
Liens” means the Liens granted by Borrowers to Agent for the benefit of the Lender Group under this Agreement or the other Loan Documents. 
 “Agent-Related Persons” means Agent together with its Affiliates, officers, directors, employees, and agents. 
 “Agreement” has the meaning set forth in the preamble hereto. 
 “Applicable Prepayment Premium”
means, as of any date of determination, an amount equal to (a) during the period from and after the date of the execution and delivery of this Agreement up to September 27, 2006, 3% times the Maximum Revolver Amount, (b) during
the period from and including September 27, 2006 up to September 27, 2007, 2% times the Maximum Revolver Amount, and (c) during the period from and including September 27, 2007 up to the Maturity Date, 1% times the
Maximum Revolver Amount, provided, however; if this Agreement is terminated and all of the Obligations are repaid in full in connection with (1) the acquisition of all of the Stock or assets of the Parent and its Subsidiaries on
or prior to March 31, 2007 or (2) a binding commitment, subject only to delivery of documentation and customary closing deliverables, for a loan facility obtained by Borrowers within 150 days of the Closing Date for which the Agent and the
Lenders do not agree in writing to match the terms contained in such commitment within 30 days after Agent’s receipt of a copy of such commitment, the Applicable Prepayment Premium shall be equal to (A) 1.00% times the Maximum
Revolver Amount if such prepayment occurs prior to September 27, 2006, or (B) 0.50% times the Maximum Revolver Amount if such prepayment occurs on or after September 27, 2006 but prior to March 31, 2007; provided,
further, if the Applicable Prepayment Premium, as calculated hereunder, when added to all interest and other charges for the use of money as contemplated by the Official Code of Georgia Annotated, Section 7-4-18 (the “Interest
Charges”) exceeds 5% per month (the “Legal Limit”), the amount of such Applicable Prepayment Premium shall be reduced to an amount which when added to the Interest Charges would equal the Legal Limit less $1.00.

  

 3 

 “Assignee” has the meaning set forth in Section 14.1. 
 “Assignment and Acceptance” means an Assignment and Acceptance in the form of Exhibit A-1. 
 “Asurion” means Asurion Corporation, a Delaware corporation, successor by merger to lock\line, LLC, a Kansas limited liability company.

 “Authorized Person” means any officer or other employee of Administrative Borrower. 
 “Availability” means, as of any date of determination, if such date is a Business Day, and determined at the close of business on the
immediately preceding Business Day, if such date of determination is not a Business Day, the amount that Borrowers are entitled to borrow as Advances under Section 2.1 (after giving effect to all then outstanding Obligations and all
sublimits and reserves applicable hereunder). 
 “Bankruptcy Code” means the United States Bankruptcy Code, as in effect
from time to time. 
 “Base LIBOR Rate” means the rate per annum, determined by Agent in accordance with its customary
procedures, and utilizing such electronic or other quotation sources as it considers appropriate (rounded upwards, if necessary, to the next 1/16%), on the basis of the rates at which Dollar deposits are offered to major banks in the London
interbank market on or about 2:00 p.m. (Georgia time) 2 Business Days prior to the commencement of the applicable Interest Period, for a term and in amounts comparable to the Interest Period and amount of the LIBOR Rate Loan requested by
Administrative Borrower in accordance with this Agreement, which determination shall be conclusive in the absence of manifest error. 
 “Base Rate” means, the rate of interest announced within Wells Fargo at its principal office in San Francisco as its “prime rate”, with the understanding that the “prime rate” is one of Wells
Fargo’s base rates (not necessarily the lowest of such rates) and serves as the basis upon which effective rates of interest are calculated for those loans making reference thereto and is evidenced by the recording thereof after its
announcement in such internal publication or publications as Wells Fargo may designate. 
 “Base Rate Loan” means each
portion of an Advance that bears interest at a rate determined by reference to the Base Rate. 
 “Base Rate Margin” means
0.0 percentage points (0.0%). 
 “Benefit Plan” means a “defined benefit plan” (as defined in Section 3(35)
of ERISA) for which any Borrower or any Subsidiary or ERISA Affiliate of any Borrower has been an “employer” (as defined in Section 3(5) of ERISA) within the past six years which is covered by ERISA. 
 “Board of Directors” means the board of directors (or comparable managers) of Parent or any committee thereof duly authorized to act on
behalf thereof. 
  

 4 

 “Books” means all of each Borrower’s now owned or hereafter acquired books and
records (including all of its Records indicating, summarizing, or evidencing its assets (including the Collateral) or liabilities, all of its Records relating to its business operations or financial condition, and all of its goods or General
Intangibles related to such information). 
 “Borrower” and “Borrowers” have the respective meanings set
forth in the preamble to this Agreement. 
 “Borrowing” means a borrowing hereunder consisting of Advances made on the same
day by the Lenders (or Agent on behalf thereof), or by Swing Lender in the case of a Swing Loan, or by Agent in the case of an Agent Advance, in each case, to Administrative Borrower. 
 “Borrowing Base” has the meaning set forth in Section 2.1. 
 “Borrowing Base Certificate” means a certificate in the form of Exhibit B-1. 
 “Business Day” means any day that is not a Saturday, Sunday, or other day on which national banks are authorized or required to close,
except that, if a determination of a Business Day shall relate to a LIBOR Rate Loan, the term “Business Day” also shall exclude any day on which banks are closed for dealings in Dollar deposits in the London interbank market. 

“Capital Lease” means a lease that is required to be capitalized for financial reporting purposes in accordance with GAAP.

 “Capitalized Lease Obligation” means any Indebtedness represented by obligations under a Capital Lease. 
 “Cash Equivalents” means 
 (a) readily marketable direct obligations of the United States of America or any agency thereof with maturities of one year or less from the date of acquisition; 
 (b) fully insured certificates of deposit with maturities of one year or less from the date of acquisition, issued by any commercial bank operating in the United States of America having capital and surplus in excess
of $50,000,000, provided, however, that time deposits in an aggregate amount not in excess of $100,000 may be maintained in any bank whose deposits are insured by the Federal Deposit Insurance Corporation; 
 (c) commercial paper of a domestic issuer if at the time of purchase such paper is rated in one of the two highest rating categories of
Standard & Poor’s or Moody’s Investors Services, Inc.; 
 (d) debt securities which shall have one of the two highest
ratings from Standard & Poor’s or Moody’s Investors Services, Inc. and which mature within one year from the date of acquisition; 
 (e) investments in eurodollars placed through any financial institution having combined capital, surplus, and undivided profits of not less than $100,000,000; 
  

 5 

 (f) “overnight investments” or short-term obligations issued by any commercial bank located in
the U.S. in those areas where Borrowers conduct their business whose deposits are insured by the Federal Deposit Insurance Corporation; and 
 (g) investments in daily money market mutual funds having assets greater than $2,000,000,000 and limited in holdings to assets of the types described in clauses (a), (b) and (c) above. 
 “Cash Management Bank” has the meaning set forth in Section 2.7(a). 
 “Cash Management Account” has the meaning set forth in Section 2.7(a). 
 “Cash Management Agreements” means those certain cash management service agreements, in form and substance satisfactory to Agent, each
of which is among Administrative Borrower, Agent, and one of the Cash Management Banks, including, without limitation, any cash management service agreement delivered in connection with the Prior Loan Agreement. 
 “CellStar, Ltd.” means CellStar, Ltd., a Texas limited partnership. 
 “CellStar Mexico” means, collectively, Celular Express S.A. de C.V., Celular Express Management S.A. de C.V., and CellStar Mexico S.A.
de C.V. 
 “CellStar Netherlands” means CellStar Netherlands Holdings B.V., with a corporate seat in Amsterdam, the
Netherlands. 
 “Change of Control” means (a) any “person” or “group” (within the meaning of
Sections 13(d) and 14(d) of the Exchange Act), becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 35%, or more, of the Stock of Parent having the right to vote for the election of members
of the Board of Directors, or (b) a majority of the members of the Board of Directors do not constitute Continuing Directors, or (c) Parent ceases to directly or indirectly own and control 100% of the outstanding Stock of each of its
Subsidiaries extant as of the Closing Date (except as permitted by Section 7.3 or in connection with a Permitted Disposition). 
 “Closing Date” means the date of the making of the initial Advance (or other extension of credit) hereunder or the date on which Agent sends Borrower a written notice that each of the conditions precedent set forth in
Section 3.1 either have been satisfied or have been waived. 
 “Closing Date Business Plan” means the set of
Projections of Borrowers for the remainder of the fiscal year in which the Closing Date occurs and for the two succeeding fiscal years following the Closing Date (on a month by month basis for the remainder of the fiscal year in which the Closing
Date occurs and for fiscal year 2007, and on a yearly basis thereafter), in form and substance (including as to scope and underlying assumptions) satisfactory to Agent. 
 “Code” means the Georgia Uniform Commercial Code, as in effect from time to time, together with any replacement or successor statutes enacted thereto, including, without limitation, Revised Article 9.

  

 6 

 “Collateral” means all of each Borrower’s now owned or hereafter acquired right,
title, and interest in and to each of the following: 
 (a) Accounts, 
 (b) Books, 
 (c) Equipment, 
 (d) General Intangibles, 
 (e) Inventory,

 (f) Investment Property, 
 (g) Negotiable Collateral, 
 (h) Real Property Collateral, 
 (i) money or other assets of each such Borrower that now or hereafter come into the possession, custody, or control of any member of the Lender Group,
and 
 (j) the proceeds and products, whether tangible or intangible, of any of the foregoing, including proceeds of insurance covering any
or all of the foregoing, and any and all Accounts, Books, Equipment, General Intangibles, Inventory, Investment Property, Negotiable Collateral, Real Property, money, deposit accounts, or other tangible or intangible property resulting from the
sale, exchange, collection, or other disposition of any of the foregoing, or any portion thereof or interest therein, and the proceeds thereof. 
 “Collateral Access Agreement” means a landlord waiver, bailee letter, or acknowledgement agreement of any lessor, warehouseman, processor, consignee, or other Person in possession of, having a Lien upon, or having rights or
interests in the Equipment or Inventory, in each case, in form and substance satisfactory to Agent. 
 “Collections” means
all cash, checks, notes, instruments, and other items of payment (including insurance proceeds, proceeds of cash sales, rental proceeds, and tax refunds) of Borrowers. 
 “Commitment” means, with respect to each Lender, its Commitment, and, with respect to all Lenders, their Commitments, in each case as
such Dollar amounts are set forth beside such Lender’s name under the applicable heading on Schedule C-1 or in the Assignment and Acceptance pursuant to which such Lender became a Lender hereunder in accordance with the provisions of
Section 14.1. 
 “Compliance Certificate” means a certificate substantially in the form of
Exhibit C-1 delivered by the chief executive officer, president, chief financial officer, treasurer or controller of the Administrative Borrower to Agent. 
  

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 “Continuing Director” means (a) any member of the Board of Directors who was a
director (or comparable manager) of Parent on the Closing Date, and (b) any individual who becomes a member of the Board of Directors after the Closing Date if such individual was appointed or nominated for election to the Board of Directors by
a majority of the Continuing Directors, but excluding any such individual originally proposed for election in opposition to the Board of Directors in office at the Closing Date in an actual or threatened election contest relating to the election of
the directors (or comparable managers) of Parent (as such terms are used in Rule 14a-11 under the Exchange Act) and whose initial assumption of office resulted from such contest or the settlement thereof. 
 “Control Agreement” means a control agreement, in form and substance satisfactory to Agent, executed and delivered by the applicable
Borrower, Agent, and the applicable securities intermediary with respect to a Securities Account or a bank with respect to a deposit account, including, without limitation, any control agreement delivered in connection with the Prior Loan Agreement.

 “Daily Balance” means, with respect to each day during the term of this Agreement, the amount of an Obligation owed at
the end of such day. 
 “DDA” means any checking or other demand deposit account maintained by any Borrower. 
 “Default” means an event, condition, or default that, with the giving of notice, the passage of time, or both, would be an Event of
Default. 
 “Defaulting Lender” means any Lender that fails to make any Advance (or other extension of credit) that it is
required to make hereunder on the date that it is required to do so hereunder. 
 “Defaulting Lender Rate” means
(a) the Base Rate for the first 3 days from and after the date the relevant payment is due, and (b) thereafter, at the interest rate then applicable to Advances that are Base Rate Loans (inclusive of the Base Rate Margin applicable
thereto). 
 “Designated Account” means account number 088-06172217 of Administrative Borrower maintained with the
Designated Account Bank, or such other deposit account of Administrative Borrower (located within the United States) that has been designated as such, in writing, by Administrative Borrower to Agent. 
 “Designated Account Bank” means J. P. Morgan Chase & Company (formerly known as The Chase Manhattan Bank), whose office is
located at 2200 Ross Avenue, Dallas, Texas 75201, and whose ABA number is 113000609. 
 “Dilution” means, as of any date of
determination, a percentage that is the result of dividing the Dollar amount of (a) bad debt write-downs, discounts, advertising allowances, credits, or other dilutive items with respect to the Accounts during the applicable period, by
(b) Borrowers’ Collections with respect to Accounts during such period (excluding extraordinary items) plus the Dollar amount of clause (a), in each case, based the greater of the experience of the immediately prior
(x) trailing 6-months, or (y) trailing 12-months. 
  

 8 

 “Dilution Reserve” means, as of any date of determination, an amount sufficient to
reduce the advance rate against Eligible Accounts by one percentage point for each percentage point (or any fraction thereof equal to or greater than .50%) by which Dilution is in excess of 5%. 
 “Disbursement Letter” means an instructional letter executed and delivered by Administrative Borrower to Agent regarding the extensions
of credit to be made on the Closing Date, the form and substance of which is satisfactory to Agent. 
 “Dobson” means Dobson
Cellular Systems, Inc., a Delaware corporation. 
 “Dollars” or “$” means United States dollars.

 “Domestic Business Unit” means the Parent and such Subsidiaries of Parent included as part of the “domestic business
operations” in the Parent’s financial statements, which Subsidiaries, as of the Closing Date, are set forth on Schedule D-1. 
 “Domestic Subsidiary” means any Subsidiary of Parent organized under the laws of any State of the U.S. (or the District of Columbia) and domiciled in the U.S. 
 “Due Diligence Letter” means the due diligence letter sent by Agent’s counsel to Administrative Borrower, together with
Administrative Borrower’s completed responses to the inquiries set forth therein, the form and substance of such responses to be satisfactory to Agent. 
 “EBITDA” means, with respect to any Person during any fiscal period, (a) net earnings (or loss), minus (b) extraordinary gains, plus (c)(i) extraordinary losses recorded in accordance with
GAAP, (ii) with respect only to the EBITDA calculation for the quarter ended November 30, 2005, losses resulting from discontinuation of operations incurred during the fiscal quarter ended November 30, 2005, in an amount not to exceed
$3,000,000, (iii) all non-cash expenses not associated with Collateral, (iv) interest expense (including factoring costs associated with sale of Accounts), (v) income taxes, and (vi) depreciation and amortization for such period,
as determined in accordance with GAAP. 
 “Eligible Accounts” means Eligible Domestic Accounts and Eligible Foreign
Accounts, as the case may be. 
 “Eligible Domestic Accounts” means those Accounts created by any Borrower in the ordinary
course of its business, that arise out of its sale of goods or rendition of services, that comply with each of the representations and warranties respecting Eligible Accounts made by Borrowers under the Loan Documents, and that are not excluded as
ineligible by virtue of one or more of the criteria set forth below; provided, however, that such criteria may be fixed and revised from time to time by Agent in Agent’s Permitted Discretion to address the results of any audit
performed by Agent from time to time after the Closing Date. In determining the amount to be included, Eligible Domestic Accounts shall be calculated net of customer deposits and unapplied cash remitted to Borrowers. Eligible Domestic Accounts shall
not include the following: 
 (a) Accounts owing by an Account Debtor that such Account Debtor has failed to pay within 90 days of original
invoice date or has selling terms of more than 60 days, 
  

 9 

 (b) Accounts owed by an Account Debtor (or its Affiliates) where 50% or more of all Accounts owed by that
Account Debtor (or its Affiliates) are deemed ineligible under clause (a) above, 
 (c) Accounts with respect to which the Account
Debtor is an employee or Affiliate of any Borrower, 
 (d) Accounts arising in a transaction wherein goods are placed on consignment or are
sold pursuant to a guaranteed sale, a sale or return, a sale on approval, a bill and hold, or any other terms by reason of which the payment by the Account Debtor may be conditional (unless such Accounts (including, without limitation, Accounts owed
by Dobson) are subject to a bill and hold letter or other agreement in form and substance satisfactory to Agent), 
 (e) Accounts that are
not payable in Dollars, 
 (f) Accounts with respect to which the Account Debtor either (i) does not maintain its principal place of
business in the United States, or (ii) is not organized under the laws of the United States or any state thereof, or (iii) is the government of any foreign country or sovereign state, or of any state, province, municipality, or other
political subdivision thereof, or of any department, agency, public corporation, or other instrumentality thereof, 
 (g) Accounts with
respect to which the Account Debtor is either (i) the United States or any department, agency, or instrumentality of the United States (exclusive, however, of Accounts with respect to which the applicable Borrower has complied, to the
reasonable satisfaction of Agent, with the Assignment of Claims Act, 31 USC § 3727), or (ii) any state of the United States (exclusive, however, of (y) Accounts owed by any state that does not have a statutory counterpart to the
Assignment of Claims Act or (z) Accounts owed by any state that does have a statutory counterpart to the Assignment of Claims Act as to which the applicable Borrower has complied to Agent’s satisfaction), 
 (h) Accounts with respect to which the Account Debtor is a creditor of any Borrower, has or has asserted a right of setoff, has disputed its liability,
or has made any claim with respect to its obligation to pay the Account, but only to the extent of such claim, right of setoff, or dispute, 
 (i) Accounts, to the extent such Accounts, together with all other Accounts owing by such Account Debtor to Borrowers, exceed in the aggregate (i) 20% of all Eligible Domestic Accounts (without giving effect to this clause) in the case
of Dobson, (ii) 25% of all Eligible Domestic Accounts (without giving effect to this clause) in the case of Asurion, and (iii) 10% of all Eligible Domestic Accounts (without giving effect to this clause) in all other cases,
provided, however, (a) the foregoing percentages may be revised from time to time by Agent in its Permitted Discretion, and (b) Accounts of the applicable Account Debtor which in the aggregate exceed the limits set forth
shall be deemed to constitute Eligible Domestic Accounts (subject to compliance with all other standards of Eligible Domestic Accounts) if the Accounts exceeding such limits are backed or secured by a letter of credit reasonably satisfactory to
Agent in all respects and such letter of credit has been assigned to Agent upon terms acceptable to Agent in its discretion, 
  

 10 

 (j) Accounts with respect to which the Account Debtor is subject to an Insolvency Proceeding, is not
Solvent, has gone out of business, or as to which a Borrower has received notice of an imminent Insolvency Proceeding or a material impairment of the financial condition of such Account Debtor, 
 (k) Accounts with respect to which the Account Debtor is located in the states of New Jersey, Minnesota, or West Virginia (or any other state that
requires a creditor to file a business activity report or similar document in order to bring suit or otherwise enforce its remedies against such Account Debtor in the courts or through any judicial process of such state), unless the applicable
Borrower has qualified to do business in New Jersey, Minnesota, West Virginia, or such other states, or has filed a business activities report with the applicable division of taxation, the department of revenue, or with such other state offices, as
appropriate, for the then-current year, or is exempt from such filing requirement, 
 (l) Accounts, the collection of which, Agent, in its
Permitted Discretion, believes to be doubtful by reason of the Account Debtor’s financial condition, 
 (m) Accounts that are not
subject to a valid and perfected first priority Agent’s Lien, 
 (n) Accounts with respect to which (i) the goods giving rise to
such Account have not been shipped and billed to the Account Debtor, or (ii) the services giving rise to such Account have not been performed and billed to the Account Debtor, (unless such Accounts are subject to a bill and hold letter or other
agreement satisfactory to Agent), or 
 (o) Accounts that represent the right to receive progress payments or other advance billings that are
due prior to the completion of performance by the applicable Borrower of the subject contract for goods or services. 
 “Eligible
Foreign Accounts” means those Accounts created by National Auto Center, Inc. in the ordinary course of its business, that arise out of its sale of goods or rendition of services through its Miami, Florida operations, that comply with each
of the representations and warranties respecting Eligible Accounts made by Borrowers under the Loan Documents, and that are not excluded as ineligible by virtue of one or more of the criteria set forth below; provided, however, that
such criteria may be fixed and revised from time to time by Agent in Agent’s Permitted Discretion to address the results of any audit performed by Agent from time to time after the Closing Date. In determining the amount to be included,
Eligible Foreign Accounts shall be calculated net of customer deposits and unapplied cash remitted to Borrowers. Eligible Foreign Accounts shall not include the following: 
 (a) Accounts owing by an Account Debtor that such Account Debtor has failed to pay within 90 days of original invoice date or has selling terms of more than 60 days, 
  

 11 

 (b) Accounts owed by an Account Debtor (or its Affiliates) where 50% or more of all Accounts owed by that
Account Debtor (or its Affiliates) are deemed ineligible under clause (a) above, 
 (c) Accounts with respect to which the Account
Debtor is an employee or Affiliate of any Borrower, 
 (d) Accounts arising in a transaction wherein goods are placed on consignment or are
sold pursuant to a guaranteed sale, a sale or return, a sale on approval, a bill and hold, or any other terms by reason of which the payment by the Account Debtor may be conditional (unless such Accounts are subject to a bill and hold letter or
other agreement in form and substance satisfactory to Agent), 
 (e) Accounts that are not payable in Dollars, 
 (f) Accounts that are not (1) supported by an irrevocable letter of credit satisfactory to Agent (as to form, substance, and issuer or domestic
confirming bank) that has been delivered to Agent and is directly drawable by Agent, or (2) covered by credit insurance in form, substance, and amount, and by an insurer, satisfactory to all Lenders, 
 (g) Accounts with respect to which the Account Debtor is a creditor of any Borrower, has or has asserted a right of setoff, has disputed its liability,
or has made any claim with respect to its obligation to pay the Account, but only to the extent of such claim, right of setoff, or dispute, 
 (h) Accounts with respect to which the Account Debtor is subject to an Insolvency Proceeding, is not Solvent, has gone out of business, or as to which a Borrower has received notice of an imminent Insolvency Proceeding or a material
impairment of the financial condition of such Account Debtor, 
 (i) Accounts, the collection of which, Agent, in its Permitted Discretion,
believes to be doubtful by reason of the Account Debtor’s financial condition, 
 (j) Accounts that are not subject to a valid and
perfected first priority Agent’s Lien, 
 (k) Accounts with respect to which (i) the goods giving rise to such Account have not
been shipped and billed to the Account Debtor, or (ii) the services giving rise to such Account have not been performed and billed to the Account Debtor, (unless such Accounts are subject to a bill and hold letter or other agreement
satisfactory to Agent), or 
 (l) Accounts that represent the right to receive progress payments or other advance billings that are due prior
to the completion of performance by National Auto Center, Inc. of the subject contract for goods or services. 
 “Eligible
Inventory” means the Inventory of any Borrower located in the U.S. consisting of digital handset finished goods held for sale in the ordinary course of Borrowers’ business located at one of the business locations of Borrowers set forth
on Schedule E-1 (or in-transit 

  

 12 

 
between any such locations), that complies with each of the representations and warranties respecting Eligible Inventory made by Borrowers in the Loan
Documents, and that is not excluded as ineligible by virtue of the one or more of the criteria set forth below; provided, however, that such criteria may be fixed and revised from time to time by Agent in Agent’s Permitted
Discretion to address the results of any audit or appraisal performed by Agent from time to time after the Closing Date. For purposes of this Agreement, finished goods which are in the process of being packaged into kits shall not be considered
work-in-process Inventory and shall be considered finished goods. In determining the amount to be so included, Inventory shall be valued at the lower of cost or market on a basis consistent with Borrowers’ historical accounting practices. An
item of Inventory shall not be included in Eligible Inventory if: 
 (a) a Borrower does not have good, valid, and marketable title thereto,

 (b) it is not located at one of the locations in the United States set forth on Schedule E-1 or in transit from one such location
to another such location, 
 (c) it is located on real property leased by a Borrower or in a contract warehouse, in each case, unless it is
subject to a Collateral Access Agreement executed by the lessor, warehouseman, or other third party, as the case may be, and unless it is segregated or otherwise separately identifiable from goods of others, if any, stored on the premises,

 (d) it is not subject to a valid and perfected first priority security Agent’s Lien, 
 (e) it consists of goods that are obsolete or slow moving (which shall include all goods not sold within 120 days of the date of such Borrowers’
receipt of such goods), restrictive or custom items, analog handsets, accessories, work-in-process, raw materials, or goods that constitute spare parts, packaging and shipping materials, supplies used or consumed in a Borrower’s business, bill
and hold goods, defective goods, “seconds,” Inventory acquired on consignment or Inventory held on consignment. 
 “Eligible Transferee” means (a) a commercial bank organized under the laws of the United States, or any state thereof, and having total assets in excess of $250,000,000, (b) a commercial bank organized under the
laws of any other country which is a member of the Organization for Economic Cooperation and Development or a political subdivision of any such country and which has total assets in excess of $250,000,000, provided that such bank is acting through a
branch or agency located in the United States, (c) a finance company, insurance company, or other financial institution or fund that is engaged in making, purchasing, or otherwise investing in commercial loans in the ordinary course of its
business and having (together with its Affiliates) total assets in excess of $250,000,000, (d) any Affiliate (other than individuals) of a Lender that was party hereto as of the Closing Date, (e) so long as no Event of Default has occurred
and is continuing, any other Person approved by Agent and Administrative Borrower, and (f) during the continuation of an Event of Default, any other Person approved by Agent. 
 “Environmental Actions” means any complaint, summons, citation, notice, directive, order, claim, litigation, investigation, judicial or
administrative proceeding, judgment, letter, or other communication from any Governmental Authority, or any third party involving 

  

 13 

 
violations of Environmental Laws or releases of Hazardous Materials from (a) any assets, properties, or businesses of any Borrower or any predecessor in
interest, (b) from adjoining properties or businesses onto any assets, properties or businesses of Borrower, or (c) from or onto any facilities which received Hazardous Materials generated by any Borrower or any predecessor in interest.

 “Environmental Law” means any applicable federal, state, provincial, foreign or local statute, law, rule, regulation,
ordinance, code, binding and enforceable guideline, binding and enforceable written policy or rule of common law now or hereafter in effect and in each case as amended, or any judicial or administrative interpretation thereof, including any judicial
or administrative order, consent decree or judgment, to the extent binding on Borrowers, relating to the environment, employee health and safety, or Hazardous Materials, including the Comprehensive Environmental Response, Compensation, and Liability
Act (“CERCLA”), 42 U.S.C. § 9601 et seq; the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C. § 6901 et seq; the Federal Water Pollution Control Act, 33 USC § 1251 et seq; the Toxic
Substances Control Act, 15 USC, § 2601 et seq; the Clean Air Act, 42 USC § 7401 et seq.; the Safe Drinking Water Act, 42 USC. § 3803 et seq.; the Oil Pollution Act of 1990, 33 USC. § 2701
et seq.; the Emergency Planning and the Community Right-to-Know Act of 1986, 42 USC. § 11001 et seq.; the Hazardous Material Transportation Act, 49 USC § 1801 et seq.; and the Occupational Safety
and Health Act, 29 USC. §651 et seq. (to the extent it regulates occupational exposure to Hazardous Materials); any state and local or foreign counterparts or equivalents, in each case as amended from time to time. 
 “Environmental Liabilities and Costs” means all liabilities, monetary obligations, Remedial Actions, losses, damages, punitive damages,
consequential damages, treble damages, costs and expenses (including all reasonable fees, disbursements and expenses of counsel, experts, or consultants, and costs of investigation and feasibility studies), fines, penalties, sanctions, and interest
incurred as a result of any claim or demand by any Governmental Authority or any third party, and which relate to any Environmental Action. 
 “Environmental Lien” means any Lien in favor of any Governmental Authority for Environmental Liabilities and Costs. 
 “Equipment” means all of Borrowers’ now owned or hereafter acquired right, title, and interest with respect to equipment, machinery, machine tools, motors, furniture, furnishings, fixtures, vehicles (including motor
vehicles), tools, parts, goods (other than consumer goods, farm products, or Inventory), wherever located, including all attachments, accessories, accessions, replacements, substitutions, additions, and improvements to any of the foregoing.

 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute thereto.

 “ERISA Affiliate” means (a) any Person subject to ERISA whose employees are treated as employed by the same employer
as the employees of a Borrower under IRC Section 414(b), (b) any trade or business subject to ERISA whose employees are treated as employed by the same employer as the employees of a Borrower under IRC Section 414(c), (c) solely
for 

  

 14 

 
purposes of Section 302 of ERISA and Section 412 of the IRC, any organization subject to ERISA that is a member of an affiliated service group of
which a Borrower is a member under IRC Section 414(m), or (d) solely for purposes of Section 302 of ERISA and Section 412 of the IRC, any Person subject to ERISA that is a party to an arrangement with a Borrower and whose
employees are aggregated with the employees of a Borrower under IRC Section 414(o). 
 “Event of Default” has the
meaning set forth in Section 8. 
 “Excess Availability” means the amount, as of the date any determination
thereof is to be made, equal to Availability minus the aggregate amount, if any, of all trade payables of Borrowers aged in excess of their historical levels with respect thereto and all book overdrafts in excess of their historical practices
with respect thereto, in each case as determined by Agent in its Permitted Discretion. 
 “Exchange Act” means the
Securities Exchange Act of 1934, as in effect from time to time. 
 “Existing Subordinated Debt” means the subordinated
Indebtedness of Parent in a original principal amount equal to $12,374,000 issued pursuant to the Existing Subordinated Debt Documents. 
 “Existing Subordinated Debt Documents” means that certain Indenture, dated as of February 20, 2002, between Parent, as Issuer, and The Bank of New York, as Trustee, with respect to $12,374,000 of 12% senior
subordinated notes due January 15, 2007, together with such other documents and instruments executed in connection therewith. 
 “Fee Letter” means that certain fee letter, dated as of even date herewith, between Borrowers and Agent, in form and substance satisfactory to Agent, together with any other fee letters which are entered into between Agent
and Borrowers after the date hereof. 
 “FEIN” means Federal Employer Identification Number. 
 “First Tier Foreign Subsidiary” means any directly held Foreign Subsidiary of a Borrower. 
 “Fixed Charge Coverage Ratio” means, with respect to any Person during any fiscal period and without duplication, the ratio for such
Person during such fiscal period, of (a) EBITDA, minus (i) cash capital expenditures, minus (ii) tax expense (excluding amounts to be offset by any net operating losses) for such Person during such fiscal period, plus
cash tax refunds received in such period, to (b) (i) principal payments made by such Person on any Indebtedness during such fiscal period (other than (A) refinancings permitted by Section 7.1(d), (B) payments on Advances,
(C) payments on revolving loans under any Permitted Foreign Subsidiary Credit Facility to the extent available to be reborrowed under such facility or to the extent cash collateral is released as a result thereof, (D) payments under any
Permitted Foreign Subsidiary Credit Facility with an initial term, including any permitted extensions thereof, of six (6) months or less, and (E) refinancings of debt of a Foreign Subsidiary with the proceeds of a credit facility obtained
by another Foreign Subsidiary within the same non-U.S. geographic region, plus (ii) cash interest expense (including factoring costs associated with sale of Accounts) during such fiscal period minus (iii) interest income
during such fiscal period. 
  

 15 

 “Foothill” means Wells Fargo Foothill, Inc., formerly known as Foothill Capital
Corporation, a California corporation. 
 “Foreign Affiliate” means any Person in which any Borrower or any of its
Subsidiaries has an equity or ownership interest equal to or less than 50% and which is organized or domiciled in any country other than the U.S. 
 “Foreign Subsidiary” means any Subsidiary of Parent organized or domiciled in any country (or state, province or subdivision thereof) other than the U.S. 
 “Funding Date” means the date on which a Borrowing occurs. 
 “Funding Losses” has the meaning set forth in Section 2.13(b)(ii). 
 “GAAP” means generally accepted accounting principles as in effect from time to time in the United States, consistently applied.

 “General Intangibles” means all of Borrowers’ now owned or hereafter acquired right, title, and interest with
respect to general intangibles (including payment intangibles, commercial tort claims, contract rights, rights to payment, rights arising under common law, statutes, or regulations, choses or things in action, goodwill, patents, trade names,
trademarks, servicemarks, copyrights, blueprints, drawings, purchase orders, customer lists, monies due or recoverable from pension funds, route lists, rights to payment and other rights under any royalty or licensing agreements, infringement
claims, computer programs, information contained on computer disks or tapes, software, literature, reports, catalogs, money, deposit accounts, insurance premium rebates, tax refunds, and tax refund claims), and any and all supporting obligations in
respect thereof, and any other personal property other than goods, Accounts, Investment Property, and Negotiable Collateral. 
 “Governing Documents” means, with respect to any Person, the certificate or articles of incorporation, articles of organization, certificate of limited partnership, partnership agreement, limited liability company operating
agreement, by-laws, or other organizational documents of such Person. 
 “Governmental Authority” means any federal, state,
local, or other governmental or administrative body, instrumentality, department, or agency or any court, tribunal, administrative hearing body, arbitration panel, commission, or other similar dispute-resolving panel or body. 
 “Hazardous Materials” means (a) substances that are defined or listed in, or otherwise classified pursuant to, any applicable laws
or regulations as “hazardous substances,” “hazardous materials,” “hazardous wastes,” “toxic substances” under either CERCLA, RCRA or any other statute or regulation intended for the protection of human health
or the environment, or any other formulation intended to define, list, or classify substances by reason of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity, or 

  

 16 

 
“EP toxicity”, (b) oil, petroleum, or petroleum derived substances, natural gas, natural gas liquids, synthetic gas, drilling fluids, produced
waters, and other wastes associated with the exploration, development, or production of crude oil, natural gas, or geothermal resources, (c) any flammable substances or explosives or any radioactive materials, and (d) asbestos in any form
or electrical equipment that contains any oil or dielectric fluid containing levels of polychlorinated biphenyls in excess of 50 parts per million. 
 “Hedging Obligations” of a Person shall mean any and all obligations of such Person, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions
and modifications thereof and substitutions therefor), under (a) any and all agreements, devices or arrangements designed to protect at least one of the parties thereto from the fluctuations of interest rates, exchange rates or forward rates
applicable to such party’s assets, liabilities or exchange transactions, including, but not limited to, dollar-denominated or cross-currency interest rate exchange agreements, forward currency exchange agreements, interest rate cap or
collateral protection agreements, forward rate currency or interest rate options, puts and warrants, and (b) any and all cancellations, buy backs, reversals, terminations or assignments of any of the foregoing. 
 “Indebtedness” of any Person means (a) all obligations of such Person for borrowed money, (b) all obligations of such Person
evidenced by bonds, debentures, notes, or other similar instruments and all reimbursement or other obligations of such Person in respect of letters of credit, bankers acceptances, interest rate swaps, or other financial products, (c) all
obligations of such Person under Capital Leases, (d) all obligations or liabilities of others secured by a Lien on any asset of such Person, irrespective of whether such obligation or liability is assumed, (e) all obligations of such
Person for the deferred purchase price of assets (other than trade debt incurred in the ordinary course of such Person’s business and repayable in accordance with customary trade practices), and (f) any obligation of such Person
guaranteeing or intended to guarantee (whether directly or indirectly guaranteed, endorsed, co-made, discounted, or sold with recourse to a Borrower) any obligation of any other Person. 
 “Indemnified Liabilities” has the meaning set forth in Section 11.3. 
 “Indemnified Person” has the meaning set forth in Section 11.3. 
 “Insolvency Proceeding” means any proceeding commenced by or against any Person under any provision of the Bankruptcy Code or under any
other state or federal bankruptcy or insolvency law, assignments for the benefit of creditors, formal or informal moratoria, compositions, extensions generally with creditors, or proceedings seeking reorganization, arrangement, or other similar
relief. 
 “Intangible Assets” means, with respect to any Person, that portion of the book value of all of such
Person’s assets that would be treated as intangibles under GAAP. 
 “Intellectual Property Security Agreement” means a
security agreement executed and delivered by any Borrower in favor of Agent, granting to Agent, for the benefit of the Lender Group, a first-priority security interest in all of such Borrower’s patents, trademarks, copyrights, licenses and
other intellectual property, the form and substance of which is satisfactory to Agent, including, without limitation, any security agreement delivered in connection with the Prior Loan Agreement. 
  

 17 

 “Intercompany Subordination Agreement” means, individually and collectively, a
subordination agreement executed and delivered by Parent, its Subsidiaries and Agent, the form and substance of which is satisfactory to Agent. 
 “Interest Period” means, with respect to each LIBOR Rate Loan, a period commencing on the date of the making of such LIBOR Rate Loan and ending 1, 2, or 3 months thereafter; provided, however, that (a) if
any Interest Period would end on a day that is not a Business Day, such Interest Period shall be extended (subject to clauses (c)-(e) below) to the next succeeding Business Day, (b) interest shall accrue at the applicable rate based upon
the LIBOR Rate from and including the first day of each Interest Period to, but excluding, the day on which any Interest Period expires, (c) any Interest Period that would end on a day that is not a Business Day shall be extended to the next
succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day, (d) with respect to an Interest Period that begins on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period), the Interest Period shall end on the last Business Day of the calendar month that is 1, 2, or 3 months after
the date on which the Interest Period began, as applicable, and (e) Borrowers (or Administrative Borrower on behalf thereof) may not elect an Interest Period which will end after the Maturity Date. 
 “Inventory” means all Borrowers’ now owned or hereafter acquired right, title, and interest with respect to inventory, including
goods held for sale or lease or to be furnished under a contract of service, goods that are leased by a Borrower as lessor, goods that are furnished by a Borrower under a contract of service, and raw materials, work in process, or materials used or
consumed in a Borrower’s business. 
 “Inventory Reserves” means reserves (determined from time to time by Agent in its
Permitted Discretion) for (a) the estimated costs relating to unpaid freight charges, warehousing or storage charges, taxes, duties, and other similar unpaid costs associated with the acquisition of Eligible In-Transit Inventory by Borrowers,
plus (b) the estimated reclamation claims of unpaid sellers of Inventory sold to Borrowers. 
 “Investment” means, with
respect to any Person, any investment by such Person in any other Person (including Affiliates) in the form of loans, guarantees, advances, or capital contributions (excluding (a) commission, travel, and similar advances to officers and
employees of such Person made in the ordinary course of business, and (b) bona fide Accounts arising from the sale of goods or rendition of services in the ordinary course of business consistent with past practice), purchases or other
acquisitions for consideration of Indebtedness or Stock, and any other items that are or would be classified as investments on a balance sheet prepared in accordance with GAAP. 
 “Investment Property” means all of Borrowers’ now owned or hereafter acquired right, title, and interest with respect to
“investment property” as that term is defined in the Code, and any and all supporting obligations in respect thereof. 
  

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 “IRC” means the Internal Revenue Code of 1986, as amended and as in effect from time to
time. 
 “Issuing Lender” means Foothill or any other Lender that, at the request of Administrative Borrower and with the
consent of Agent agrees, in such Lender’s sole discretion, to become an Issuing Lender for the purpose of issuing L/Cs or L/C Undertakings pursuant to Section 2.12. 
 “L/C” has the meaning set forth in Section 2.12(a). 
 “L/C Disbursement” means a payment made by the Issuing Lender pursuant to a Letter of Credit. 
 “L/C Undertaking” has the meaning set forth in Section 2.12(a). 
 “Lender” and “Lenders” have the respective meanings set forth in the preamble to this Agreement, and shall include any
other Person made a party to this Agreement in accordance with the provisions of Section 14.1. 
 “Lender Group”
means, individually and collectively, each of the Lenders (including the Issuing Lender) and Agent. 
 “Lender Group
Expenses” means all (a) costs or expenses (including taxes, and insurance premiums) required to be paid by a Borrower under any of the Loan Documents that are paid or incurred by the Lender Group, (b) fees or charges paid or
incurred by Agent in connection with the Lender Group’s transactions with Borrowers, including, reasonable fees or charges for photocopying, notarization, couriers and messengers, telecommunication, public record searches (including tax lien,
litigation, and UCC searches and including searches with the patent and trademark office, the copyright office, or the department of motor vehicles), filing, recording, publication, appraisal (including periodic Collateral appraisals or business
valuations as set forth in Section 4.6) to the extent of the fees and charges contained in this Agreement, real estate surveys, real estate title policies and endorsements, and environmental audits, (c) reasonable costs and expenses
incurred by Agent in the disbursement of funds to or for the account of Borrowers (by wire transfer or otherwise), (d) charges paid or incurred by Agent resulting from the dishonor of checks, (e) reasonable costs and expenses paid or
incurred by the Lender Group to correct any default or enforce any provision of the Loan Documents, or in gaining possession of, maintaining, handling, preserving, storing, shipping, selling, preparing for sale, or advertising to sell the
Collateral, or any portion thereof, irrespective of whether a sale is consummated, (f) audit fees and expenses of Agent related to audit examinations of the Books to the extent of the fees and charges (and up to the amount of any limitation)
contained in this Agreement, (g) reasonable costs and expenses of third party claims or any other suit paid or incurred by the Lender Group in enforcing or defending the Loan Documents or in connection with the transactions contemplated by the
Loan Documents or the Lender Group’s relationship with any Borrower or any guarantor of the Obligations, (h) Agent’s reasonable fees and expenses (including attorneys fees) incurred in advising, structuring, drafting, reviewing,
administering, or amending the Loan Documents, and (i) Agent’s and each Lender’s reasonable fees and expenses (including attorneys fees) incurred in terminating, enforcing (including attorneys fees and 

  

 19 

 
expenses incurred in connection with a “workout,” a “restructuring,” or an Insolvency Proceeding concerning any Borrower or in exercising
rights or remedies under the Loan Documents), or defending the Loan Documents, irrespective of whether suit is brought, or in taking any Remedial Action concerning the Collateral. 
 “Lender-Related Person” means, with respect to any Lender, such Lender, together with such Lender’s Affiliates, and the officers,
directors, employees, and agents of such Lender. 
 “Letter of Credit” means an L/C or an L/C Undertaking, as the context
requires. 
 “Letter of Credit Usage” means, as of any date of determination, the aggregate undrawn amount of all
outstanding Letters of Credit plus 100% of the amount of outstanding time drafts accepted by an Underlying Issuer as a result of drawings under Underlying Letters of Credit. 
 “LIBOR Deadline” has the meaning set forth in Section 2.13(b)(i). 
 “LIBOR Notice” means a written notice in the form of Exhibit L-1. 
 “LIBOR Option” has the meaning set forth in Section 2.13(a). 
 “LIBOR Rate” means, for each Interest Period for each LIBOR Rate Loan, the rate per annum determined by Agent (rounded upwards, if
necessary, to the next 1/16%) by dividing (a) the Base LIBOR Rate for such Interest Period, by (b) 100% minus the Reserve Percentage. The LIBOR Rate shall be adjusted on and as of the effective day of any change in the
Reserve Percentage. 
 “LIBOR Rate Loan” means each portion of an Advance that bears interest at a rate determined by
reference to the LIBOR Rate. 
 “LIBOR Rate Margin” means 2.5 percentage points (2.50%). 
 “Lien” means any interest in an asset securing an obligation owed to, or a claim by, any Person other than the owner of the asset,
whether such interest shall be based on the common law, statute, or contract, whether such interest shall be recorded or perfected, and whether such interest shall be contingent upon the occurrence of some future event or events or the existence of
some future circumstance or circumstances, including the lien or security interest arising from a mortgage, deed of trust, encumbrance, pledge, hypothecation, assignment, deposit arrangement, security agreement, conditional sale or trust receipt, or
from a lease, consignment, or bailment for security purposes and also including reservations, exceptions, encroachments, easements, rights-of-way, covenants, conditions, restrictions, leases, and other title exceptions and encumbrances affecting
Real Property. 
 “Loan Account” has the meaning set forth in Section 2.10. 
 “Loan Documents” means this Agreement, the Cash Management Agreements, the Control Agreements, the Intellectual Property Security
Agreement, the Disbursement Letter, 

  

 20 

 
the Due Diligence Letter, the Fee Letter, the Letters of Credit, the Mortgages (if any), the Officers’ Certificate, any Stock Pledge Agreement, the
Intercompany Subordination Agreement, the Reaffirmation Agreement, any note or notes executed by a Borrower in connection with this Agreement and payable to a member of the Lender Group, and any other agreement entered into, now or in the future, by
any Borrower and the Lender Group in connection with this Agreement. 
 “Loan Party” means any Borrower or Foreign
Subsidiary whose stock is subject to a first priority perfected Lien in favor of the Agent pursuant to a Stock Pledge Agreement. 
 “Management Agreement” means, individually and collectively, any agreement pursuant to which a Management Fee is payable to any Borrower by any Subsidiary or Affiliate. 
 “Management Fee” means, individually and collectively, any administrative, management, consulting, technical support, royalty, license,
or other similar fees paid or owing to any Borrower by any Subsidiary or Affiliate, as more fully set forth in the applicable Management Agreement. 
 “Material Adverse Change” means (a) a material adverse change in the business, prospects, operations, results of operations, assets, liabilities or condition (financial or otherwise) of Parent and its Subsidiaries
taken as a whole, (b) a material impairment of a Borrower’s ability to perform its obligations under the Loan Documents to which it is a party or of the Lender Group’s ability to enforce the Obligations or realize upon the Collateral,
or (c) a material impairment of the enforceability or priority of the Agent’s Liens with respect to the Collateral as a result of an action or failure to act on the part of a Borrower. 
 “Material Vendor” means Nokia, Motorola, or any other trade creditor of any Borrower that supplies 35% or more of the annual product
needs of the Borrowers, taken as a whole. 
 “Maturity Date” has the meaning set forth in Section 3.4.

 “Maximum Revolver Amount” means $85,000,000. 
 “Miami A/R Factoring Facility” means one or more accounts receivable factoring facilities or other credit facilities that satisfy the
requirements set forth in Section 7.1(e)(iii), in each case as determined by the Agent in its sole and absolute discretion. 
 “Mortgages” means, individually and collectively, one or more mortgages, deeds of trust, or deeds to secure debt, executed and delivered by any Borrower in favor of Agent, for the benefit of the Lender Group, in form and
substance satisfactory to Agent, that encumbers the Real Property Collateral owned by such Borrower and the related improvements thereto. 
 “Negotiable Collateral” means all of Borrowers’ now owned and hereafter acquired right, title, and interest with respect to letters of credit, letter of credit rights, instruments, promissory notes, drafts, documents,
and chattel paper (including electronic chattel paper and tangible chattel paper), and any and all supporting obligations in respect thereof. 
  

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 “Net Liquidation Percentage” means the percentage of the book value of Borrowers’
Inventory that is estimated to be recoverable, after liquidation expenses, in an orderly liquidation of such Inventory, such percentage to be as determined from time to time by a qualified appraisal company selected by Agent. Administrative Borrower
shall be provided with a copy of the appraisal company’s report or similar detailed information reflecting the method and basis for such calculation upon request. 
 “Non-Loan Party” means any Subsidiary of Parent that is not a Loan Party. 
 “Obligations” means all loans, Advances, debts, principal, interest (including any interest that, but for the provisions of the Bankruptcy Code, would have accrued), contingent reimbursement obligations with respect to
outstanding Letters of Credit, premiums, liabilities (including all amounts charged to Borrowers’ Loan Account pursuant hereto), obligations, fees (including the fees provided for in the Fee Letter), charges, costs, Lender Group Expenses
(including any fees or expenses that, but for the provisions of the Bankruptcy Code, would have accrued), lease payments, guaranties, covenants, and duties of any kind and description owing by Borrowers to the Lender Group pursuant to or evidenced
by the Loan Documents and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and including all interest not paid when due and all Lender
Group Expenses that Borrowers are required to pay or reimburse by the Loan Documents, by law, or otherwise. Any reference in this Agreement or in the Loan Documents to the Obligations shall include all amendments, changes, extensions, modifications,
renewals replacements, substitutions, and supplements, thereto and thereof, as applicable, both prior and subsequent to any Insolvency Proceeding. 
 “Officers’ Certificate” means the representations and warranties of officers form submitted by Agent to Administrative Borrower, together with Borrowers’ completed responses to the inquiries set forth therein, the
form and substance of such responses to be satisfactory to Agent. 
 “Originating Lender” has the meaning set forth in
Section 14.1(e). 
 “Overadvance” has the meaning set forth in Section 2.5. 
 “Parent” has the meaning set forth in the preamble to this Agreement. 
 “Participant” has the meaning set forth in Section 14.1(e). 
 “Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism
Act of 2001, Pub. L. No. 107-56, 115 Stat. 272 (2001). 
 “Pay-Off Letter” means one or more letters, in form and
substance satisfactory to Agent, setting forth the amount necessary to repay all or a portion of the obligations of Borrowers owing to the issuer thereof pursuant to the Existing Subordinated Debt Documents. 
  

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 “Permitted Affiliate Transaction” means a transaction between Parent and its
Subsidiaries, or among Parent’s Subsidiaries, that satisfies one or more of the following criteria: 
 (a) Transactions between
Parent and its Subsidiaries (including Borrowers). Parent may, provided that no Event of Default exists or will result therefrom (i) guarantee obligations of any Subsidiary, including any Borrower, with respect to (A) trade payables
consisting of goods or materials purchased in the ordinary course of business of such Subsidiary for which payment is not more than 90 days past due (unless subject to a dispute being diligently contested), (B) real property operating leases,
(C) personal property operating leases not to exceed $5 Million in the aggregate outstanding at any one time, (D) a Permitted Foreign Subsidiary Credit Facility, provided that (X) such guarantee is unsecured, and in the case of
Parent’s guarantee of any Permitted Foreign Subsidiary Credit Facility entered into after the Closing Date, such guarantee is also subordinated to the Obligations under this Agreement, (Y) no default has occurred pursuant to such guarantee
obligation, (Z) no demand for payment has resulted from any such guarantee obligation, and (E) a performance bond issued in connection with tax claims of such Subsidiary, provided such guarantees under this clause (E) do not
exceed $5,000,000 in the aggregate; and (ii) make capital contributions pursuant to subsection (h) below, for the benefit of any Subsidiary, including any Borrower; 
 (b) Transactions between Borrowers. Parent and any other Borrower may (i) make unsecured loans to, or (ii) sell, lease or transfer
assets (provided Agent shall have a first priority perfected Lien on such asset after such sale, lease or transfer) to, any other Borrower; 
 (c) Transactions between Borrowers and Foreign Subsidiaries. Any Borrower may, provided that no Event of Default exists or will result therefrom, (i) make loans to any Foreign Subsidiary, up to an aggregate amount owing at any
time to all Borrowers not to exceed $2,500,000, and (ii) transfer assets (other than Inventory and Accounts) with a market value not exceeding $1,000,000 for all such transfers by all Borrowers in the aggregate during any fiscal year, to any
Foreign Subsidiary; 
 (d) Transactions between Foreign Subsidiaries and Loan Parties. Any Foreign Subsidiary Loan Party may
(i) make unsecured loans to any other Loan Party, (ii) sell, lease or transfer assets to, any other Loan Party, or (iii) guarantee unsecured obligations arising in the ordinary course of business for the benefit of, any other Loan
Party; 
 (e) Transactions between Foreign Subsidiary Loan Parties and Non-Loan Parties. Provided that no Event of Default exists or
will result therefrom, any Foreign Subsidiary Loan Party may (i) transfer assets to any Non-Loan Party with a market value not exceeding $2,000,000 for all such transfers by Foreign Subsidiary Loan Parties in the aggregate during any fiscal
year, and (ii) make loans to, or guarantee unsecured obligations arising in the ordinary course of business for the benefit of, any Non-Loan Party not to exceed $50,000,000 in the aggregate owing at any one time for all such loans and
guarantees; provided, however, that loans to such Non-Loan Parties may not exceed $10,000,000 in the aggregate owing at any one time; 
 (f) Transactions between Foreign Subsidiaries and CellStar Netherlands. Any Foreign Subsidiary may (i) make unsecured loans to CellStar Netherlands (or such other global agency treasury center as Borrowers
may establish from time to time) for the purpose of making a loan to an Affiliate that would have been permitted hereunder if such loan was made directly by such Foreign Subsidiary, or (ii) make investments through CellStar Netherlands
constituting the foreign equivalent of “Cash Equivalents” as such term is defined herein; 
  

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 (g) Transactions between Non-Loan Parties and any other Person. Any Non-Loan Party may
(i) make unsecured loans to, (ii) make capital contributions to, (iii) sell, lease or transfer assets to, or (iv) guarantee any Indebtedness for the benefit of, any (x) Borrower, (y) Loan Party, or (z) other
Non-Loan Party (including, without limitation, CellStar Netherlands); and 
 (h) Capital Contributions by any Loan Party. Provided
that no Event of Default exists or will result therefrom, any Loan Party may make (i) initial capital contributions in any Subsidiary created after the Closing Date in accordance with the other provisions of this Agreement not to exceed $25,000
for each such Subsidiary, and (ii) capital contributions, to the extent required by applicable law, in an amount not to exceed $2,000,000 in the aggregate for any such Subsidiary during the period from and including the Closing Date through the
Maturity Date, provided, that (x) all such capital contributions to all such Subsidiaries shall not exceed (i) $2,000,000 per fiscal year in the aggregate, and (ii) $10,000,000 in the aggregate during the period from and
including the Closing Date through the Maturity Date, (y) Administrative Borrower shall have given Agent notice promptly after becoming aware of any such requirement for capital contributions, and (z) Excess Availability is at least
$10,000,000 after giving effect to any such capital contributions. 
 “Permitted Discretion” means a determination made in
good faith and in the exercise of reasonable (from the perspective of a secured asset-based lender) business judgment. 
 “Permitted
Dispositions” means (a) sales or other dispositions by Borrowers of Equipment that is worn, damaged, or obsolete in the ordinary course of the applicable Borrower’s business, (b) sales by Borrowers of Inventory to buyers in
the ordinary course of business, (c) the use or transfer of money or Cash Equivalents by Borrowers in a manner that is not prohibited by the terms of this Agreement or the other Loan Documents, (d) the licensing by Borrowers, on a
non-exclusive basis, of patents, trademarks, copyrights, and other intellectual property rights in the ordinary course of the applicable Borrower’s business, (e) sales of Equipment and other assets (other than Real Property, Inventory and
Accounts) having a fair market value not to exceed $3,000,000 in the aggregate during the period from the Closing Date through the Maturity Date, provided that all proceeds of any and all dispositions of all such assets of any Borrower shall be paid
to Agent for application to outstanding Advances (which amounts may be reborrowed subject to the terms and conditions of this Agreement), (f) dispositions of assets during any fiscal year with an aggregate market value of less than $100,000,
(g) so long as no Event of Default has occurred and is continuing, the sale of any (i) Foreign Subsidiary with a net worth of less than $1,500,000, or (ii) a Domestic Subsidiary or Borrower with a net worth of less than $1,500,000
with the consent of Agent, (h) dispositions of Accounts of CellStar Mexico in an aggregate amount not exceeding $30,000,000 outstanding at any time pursuant to a factoring facility permitted by Section 7.1(e)(ii) hereof, and
(i) disposition of Accounts of CellStar Ltd. and/or National Auto Center, Inc. owed by non-U.S. Account Debtors pursuant to a factoring facility or other credit facility permitted by Section 7.1(e)(iii) hereof. 
  

 24 

 “Permitted Foreign Subsidiary Credit Facility” means any credit facility hereafter
entered into by any Foreign Subsidiary or Foreign Subsidiaries to provide financing for such Foreign Subsidiary’s working capital needs that: (i) is not guaranteed by any Borrower; provided, such Permitted Foreign Subsidiary Credit
Facility may be guaranteed by Parent if such guaranty is unsecured and subject to a subordination agreement satisfactory to Agent, (ii) does not limit or prohibit (or would limit or prohibit upon the happening of certain events) payment of any
Management Fees to any Borrower, and (iii) both before and after giving effect thereto, does not result in a Fixed Charge Coverage Ratio calculated for the immediately preceding four fiscal quarter period for the region in which such Foreign
Subsidiary is located of less than 2.0:1.0. As of the date hereof, there are no Permitted Foreign Subsidiary Credit Facilities. 
 “Permitted Investments” means (a) investments in Cash Equivalents, (b) investments in negotiable instruments for collection, and (c) advances made in connection with purchases of goods or services in the
ordinary course of business. 
 “Permitted Liens” means (a) Liens held by Agent for the benefit of Agent and the
Lenders, (b) Liens for unpaid taxes that either (i) are not yet delinquent, or (ii) do not constitute an Event of Default hereunder and are the subject of Permitted Protests, (c) Liens set forth on Schedule P-1,
(d) the interests of lessors under operating leases, (e) purchase money Liens or the interests of lessors under Capital Leases to the extent that such Liens or interests secure Permitted Purchase Money Indebtedness and so long as such Lien
attaches only to the asset purchased or acquired and the proceeds thereof, (f) Liens arising by operation of law in favor of warehousemen, landlords, carriers, mechanics, materialmen, laborers, or suppliers, incurred in the ordinary course of
Borrowers’ business and not in connection with the borrowing of money, and which Liens either (i) are for sums not yet delinquent, or (ii) are the subject of Permitted Protests, (g) Liens arising from deposits made in connection
with obtaining worker’s compensation or other unemployment insurance, (h) Liens or deposits to secure performance of bids, tenders, or leases incurred in the ordinary course of Borrowers’ business and not in connection with the
borrowing of money, (i) Liens granted as security for surety or appeal bonds in connection with obtaining such bonds in the ordinary course of Borrowers’ business, (j) Liens resulting from any judgment or award that is not an Event of
Default hereunder, (k) Liens with respect to the Real Property Collateral that are exceptions to the commitments for title insurance issued in connection with the Mortgages, as accepted by Agent, (l) with respect to any Real Property that
is not part of the Real Property Collateral, easements, rights of way, and zoning restrictions that do not materially interfere with or impair the use or operation thereof by Borrowers, (m) Liens on funds in the possession of credit card
companies pertaining to credit card sales of Inventory in the ordinary course of business pursuant to merchant credit card services agreements provided that Agent shall have a satisfactory agreement with such credit card companies regarding the
assignment of such credit card receivables to Agent, and (n) Liens on any unearned insurance premiums and dividends that may become payable under the insurance policies and loss payments which reduce the unearned premiums relating to insurance
policies, subject to any mortgagee or loss payee interests, securing financing of insurance premiums by third party insurance finance companies in the ordinary course of business and to the extent permitted by Section 7.1(i) hereof. 

“Permitted Protest” means the right of the applicable Borrower to protest any Lien (other than any such Lien that secures the
Obligations), taxes (other than payroll taxes or taxes 

  

 25 

 
that are the subject of a United States federal tax lien), or rental payment, provided that (a) a reserve with respect to such obligation is established
on the Books in such amount as is required under GAAP, (b) any such protest is instituted promptly and prosecuted diligently by the applicable Borrower in good faith, and (c) Agent is satisfied that, while any such protest is pending,
there will be no impairment of the enforceability, validity, or priority of any of the Agent’s Liens. 
 “Permitted Purchase
Money Indebtedness” means, as of any date of determination, Purchase Money Indebtedness incurred after the Closing Date in an aggregate amount outstanding at any one time not in excess of $5,000,000. 
 “Person” means natural persons, corporations, limited liability companies, limited partnerships, general partnerships, limited liability
partnerships, joint ventures, trusts, land trusts, business trusts, or other organizations, irrespective of whether they are legal entities, and governments and agencies and political subdivisions thereof. 
 “Personal Property Collateral” means all Collateral other than Real Property. 
 “Prior Loan Agreement” has the meaning set forth in the recitals hereto. 
 “Projections” means the forecasted (a) balance sheets, (b) profit and loss statements, and (c) cash flow statements, all
prepared on a consistent basis with Parent’s historical financial statements, together with appropriate supporting details and a statement of underlying assumptions, prepared separately for the Parent (consolidated with its Subsidiaries) and
the Domestic Business Unit. 
 “Pro Rata Share” means, as of any date of determination: 
 (a) with respect to a Lender’s obligation to make Advances and receive payments of principal, interest, fees, costs, and expenses with respect
thereto, (i) prior to the Commitments being terminated or reduced to zero, the percentage obtained by dividing (y) such Lender’s Commitment, by (z) the aggregate Commitments of all Lenders, and (ii) from and after the time
that the Commitments have been terminated or reduced to zero, the percentage obtained by dividing (y) the aggregate outstanding principal amount of such Lender’s Advances by (z) the aggregate outstanding principal amount of all
Advances, 
 (b) with respect to a Lender’s obligation to participate in Letters of Credit, to reimburse the Issuing Lender, and to
receive payments of fees with respect thereto, (i) prior to the Commitments being terminated or reduced to zero, the percentage obtained by dividing (y) such Lender’s Commitment, by (z) the aggregate Commitments of all Lenders,
and (ii) from and after the time that the Commitments have been terminated or reduced to zero, the percentage obtained by dividing (y) the aggregate outstanding principal amount of such Lender’s Advances by (z) the aggregate
outstanding principal amount of all Advances, 
 (c) with respect to all other matters as to a particular Lender (including the
indemnification obligations arising under Section 16.7), the percentage obtained by dividing (i) such Lender’s Commitment, by (ii) the aggregate amount of Commitments of all Lenders; provided, however, that in the event the
Commitments have been terminated or reduced to zero, 

  

 26 

 
Pro Rata Share under this clause shall be the percentage obtained by dividing (A) the outstanding principal amount of such Lender’s Advances plus
such Lender’s ratable portion of the Risk Participation Liability with respect to outstanding Letters of Credit, by (B) the outstanding principal amount of all Advances plus the aggregate amount of the Risk Participation Liability with
respect to outstanding Letters of Credit. 
 “Purchase Money Indebtedness” means Indebtedness (other than the Obligations,
but including Capitalized Lease Obligations), incurred at the time of, or within 20 days after, the acquisition of any fixed assets for the purpose of financing all or any part of the acquisition cost thereof. 
 “Reaffirmation Agreement” means that certain Reaffirmation Agreement, dated as of the date hereof, executed by Borrowers and Agent.

 “Real Property” means any fee simple estates in real property now owned or hereafter acquired by any Borrower and the
improvements thereto. 
 “Real Property Collateral” means the parcel or parcels of Real Property identified on Schedule
R-1 and any Real Property hereafter acquired by a Borrower. 
 “Record” means information that is inscribed on a
tangible medium or which is stored in an electronic or other medium and is retrievable in perceivable form. 
 “Remedial
Action” means all actions taken to (a) clean up, remove, remediate, contain, treat, monitor, assess, evaluate, or in any way address Hazardous Materials in the indoor or outdoor environment, (b) prevent or minimize a release or
threatened release of Hazardous Materials so they do not migrate or endanger or threaten to endanger public health or welfare or the indoor or outdoor environment, (c) perform any pre-remedial studies, investigations, or post-remedial operation
and maintenance activities, or (d) conduct any other actions authorized by 42 USC § 9601. 
 “Report” has the
meaning set forth in Section 16.17. 
 “Required Lenders” means, at any time, (a) Agent, and
(b) Lenders whose Pro Rata Shares (calculated under clause (c) of the definition of Pro Rata Shares) aggregate 66-2/3% or more of the Commitments, or if the Commitments have been terminated irrevocably, 66-2/3% or more of the Obligations
then outstanding, provided, however, that, if there are 2 or more Lenders at any time, in no event shall the Required Lenders be less than 2 Lenders. 
 “Reserve Percentage” means, on any day, for any Lender, the maximum percentage prescribed by the Board of Governors of the Federal Reserve System (or any successor Governmental Authority) for
determining the reserve requirements (including any basic, supplemental, marginal, or emergency reserves) that are in effect on such date with respect to eurocurrency funding (currently referred to as “eurocurrency liabilities”) of that
Lender, but so long as such Lender is not required or directed under applicable regulations to maintain such reserves, the Reserve Percentage shall be zero. 
  

 27 

 “Revolver Usage” means, as of any date of determination, the sum of (a) the then
extant amount of outstanding Advances, plus (b) the then extant amount of the Letter of Credit Usage. 
 “Risk
Participation Liability” means, as to each Letter of Credit, all reimbursement obligations of Borrowers to the Issuing Lender with respect to an L/C Undertaking, consisting of (a) the amount available to be drawn or which may become
available to be drawn, (b) all amounts that have been paid by the Issuing Lender to the Underlying Issuer to the extent not reimbursed by Borrowers, whether by the making of an Advance or otherwise, and (c) all accrued and unpaid interest,
fees, and expenses payable with respect thereto. 
 “SEC” means the United States Securities and Exchange Commission and any
successor thereto. 
 “Securities Account” means a “securities account” as that term is defined in the Code.

 “Settlement” has the meaning set forth in Section 2.3(f)(i). 
 “Settlement Date” has the meaning set forth in Section 2.3(f)(i). 
 “Solvent” means, with respect to any Person on a particular date, that such Person is not insolvent (as such term is defined in the
Uniform Fraudulent Transfer Act). 
 “Stock” means all shares, options, warrants, interests, participations, or other
equivalents (regardless of how designated) of or in a Person, whether voting or nonvoting, including common stock, preferred stock, or any other “equity security” (as such term is defined in Rule 3a11-1 of the General Rules and Regulations
promulgated by the SEC under the Exchange Act). 
 “Stock Pledge Agreement” means, individually and collectively, each
pledge agreement, in form and substance satisfactory to Agent, executed and delivered by any Borrower that owns Stock of a Subsidiary of Parent, pledging 100% of the Stock owned by such Borrower of a Domestic Subsidiary and 65% of the Stock owned by
such Borrower of a First Tier Foreign Subsidiary, including, without limitation, any pledge agreement delivered in connection with the Prior Loan Agreement. 
 “Subsidiary” of a Person means a corporation, partnership, limited liability company, or other entity in which that Person directly or indirectly owns or controls the shares of Stock having ordinary
voting power to elect a majority of the board of directors (or appoint other comparable managers) of such corporation, partnership, limited liability company, or other entity and including, without limitation, any Foreign Subsidiary or Domestic
Subsidiary. 
 “Swing Lender” means Foothill or any other Lender that, at the request of Administrative Borrower and with
the consent of Agent agrees, in such Lender’s sole discretion, to become the Swing Lender hereunder. 
 “Swing Loan”
has the meaning set forth in Section 2.3(d)(i). 
  

 28 

 “Taxes” has the meaning set forth in Section 16.11(e). 
 “Underlying Issuer” means a third Person which is the beneficiary of an L/C Undertaking and which has issued a letter of credit at the
request of the Issuing Lender for the benefit of Borrowers and, in the case of a proposed Qualified Import Letter of Credit, has agreed, in writing, to hold documents of title as agent for Agent. 
 “Underlying Letter of Credit” means a letter of credit that has been issued by an Underlying Issuer. 
 “U.S.” means the United States of America. 
 “Voidable Transfer” has the meaning set forth in Section 17.7. 
 “Wells
Fargo” means Wells Fargo Bank, National Association, a national banking association. 
 1.2 Accounting
Terms. All accounting terms not specifically defined herein shall be construed in accordance with GAAP. When used herein, the term “financial statements” shall include the notes and schedules thereto. Whenever the term
“Borrowers” or the term “Parent” is used in respect of a financial covenant or a related definition, it shall be understood to mean Parent and its Subsidiaries on a consolidated basis unless the context clearly requires
otherwise. 
 1.3 Code. Any terms used in this Agreement that are defined in the Code shall be construed and
defined as set forth in the Code unless otherwise defined herein. 
 1.4 Construction. Unless the context of
this Agreement or any other Loan Document clearly requires otherwise, references to the plural include the singular, references to the singular include the plural, the term “including” is not limiting, and the term “or” has,
except where otherwise indicated, the inclusive meaning represented by the phrase “and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Agreement or any other Loan
Document refer to this Agreement or such other Loan Document, as the case may be, as a whole and not to any particular provision of this Agreement or such other Loan Document, as the case may be. Section, subsection, clause, schedule, and exhibit
references herein are to this Agreement unless otherwise specified. Any reference in this Agreement or in the other Loan Documents to any agreement, instrument, or document shall include all alterations, amendments, changes, extensions,
modifications, renewals, replacements, substitutions, joinders, and supplements, thereto and thereof, as applicable (subject to any restrictions on such alterations, amendments, changes, extensions, modifications, renewals, replacements,
substitutions, joinders, and supplements set forth herein). Any reference herein to any Person shall be construed to include such Person’s successors and assigns. Any requirement of a writing contained herein or in the other Loan Documents
shall be satisfied by the transmission of a Record and any Record transmitted shall constitute a representation and warranty as to the accuracy and completeness of the information contained therein. 
 1.5 Schedules and Exhibits. All of the schedules and exhibits attached to this Agreement shall be deemed incorporated herein
by reference. 
  

 29 

 2. LOAN AND TERMS OF PAYMENT. 
 2.1 Revolver Advances. 
 (a) Subject to the terms and conditions of this Agreement, and during the term of this Agreement, each Lender with a Commitment agrees (severally, not jointly or jointly and severally) to make advances (“Advances”) to
Borrowers in an amount at any one time outstanding not to exceed such Lender’s Pro Rata Share of an amount equal to the lesser of (i) the Maximum Revolver Amount less the Letter of Credit Usage, or (ii) the Borrowing
Base less the Letter of Credit Usage. For purposes of this Agreement, “Borrowing Base,” as of any date of determination, shall mean the result of: 
  

	 	(v)	85% of the amount of Eligible Domestic Accounts, less the amount, if any, of the Dilution Reserve, plus 

  

	 	(w)	the lowest of 

 (i) $42,500,000,

 (ii) the lesser of (1) 60% of the value of Eligible Inventory consisting of digital handsets, or (2) 85% times
the then extant Net Liquidation Percentage (as calculated by Agent), times the book value of such Eligible Inventory consisting of digital handsets, or 
 (iii) 100% of the amount of credit availability created by clause (v) above, plus 
  

	 	(x)	the lowest of 

 (i) $10,000,000, or

 (ii) 75% of the amount of Eligible Foreign Accounts, less the amount, if any, of the Dilution Reserve,
minus, 
  

	 	(y)	with respect to the amount of credit availability created by clause (x) above, the aggregate amount of reserves established by Agent in its Permitted Discretion in connection
with (1) any deductible under any credit insurance policy covering such Eligible Foreign Accounts, (2) the amount by which any Eligible Foreign Account exceeds the maximum limit established under the applicable credit insurance policy
covering such Eligible Foreign Account or the applicable Account Debtor, and (3) the amount of availability created under clause (x) above in excess of the amount of Existing Subordinated Debt that has been repaid pursuant to an executed
Pay-Off Letter, minus, 

  

	 	(z)	the aggregate amount of reserves, if any, established by Agent under Section 2.1(b). 

  

 30 

 (b) Anything to the contrary in this Section 2.1 notwithstanding, Agent shall have the right
to establish reserves in such amounts, and with respect to such matters, as Agent in its Permitted Discretion shall deem necessary or appropriate, against the Borrowing Base, including reserves with respect to (i) sums that Borrowers are
required to pay (such as taxes, assessments, insurance premiums, or, in the case of leased assets, rents or other amounts payable under such leases) and has failed to pay under any Section of this Agreement or any other Loan Document, and
(ii) amounts owing by Borrowers to any Person to the extent secured by a Lien on, or trust over, any of the Collateral (other than any existing Permitted Lien set forth on Schedule P-1 which is specifically identified thereon as entitled
to have priority over the Agent’s Liens), which Lien or trust, in the Permitted Discretion of Agent likely would have a priority superior to the Agent’s Liens (such as Liens or trusts in favor of landlords, warehousemen, carriers,
mechanics, materialmen, laborers, or suppliers, or Liens or trusts for ad valorem, excise, sales, or other taxes where given priority under applicable law) in and to such item of the Collateral. In addition to the foregoing, Agent shall have
the right to have the Inventory reappraised by a qualified appraisal company selected by Agent from time to time after the Closing Date for the purpose of redetermining the Net Liquidation Percentage of the Eligible Inventory portion of the
Collateral and, as a result, redetermining the Borrowing Base, as Agent in its Permitted Discretion shall deem necessary or appropriate. 
 (c) The Lenders with Commitments shall have no obligation to make additional Advances hereunder to the extent such additional Advances would cause the Revolver Usage to exceed the Maximum Revolver Amount. 
 (d) Amounts borrowed pursuant to this Section may be repaid and, subject to the terms and conditions of this Agreement, reborrowed at any time during the
term of this Agreement. 
 2.2 Intentionally Omitted. 
 2.3 Borrowing Procedures and Settlements. 
 (a) Procedure for Borrowing. Each Borrowing shall be made by an irrevocable written request by an Authorized Person delivered to Agent (which notice must be received by Agent no later than 1:00 p.m. (Georgia
time) on the Business Day prior to the date that is the requested Funding Date in the case of a request for an Advance specifying (i) the amount of such Borrowing, and (ii) the requested Funding Date, which shall be a Business Day;
provided, however, that in the case of a request for Swing Loan in an amount of $15,000,000, or less, such notice will be timely received if it is received by Agent no later than 1:00 p.m. (Georgia time) on the Business Day that is the
requested Funding Date specifying (i) the amount of such Borrowing, and (ii) the requested Funding Date, which shall be a Business Day. At Agent’s election, in lieu of delivering the above-described written request, any Authorized
Person may give Agent telephonic notice of such request by the required time, with such telephonic notice to be confirmed in writing within 24 hours of the giving of such notice. 
  

 31 

 (b) Agent’s Election. Promptly after receipt of a request for a Borrowing pursuant to
Section 2.3(a), Agent shall elect, in its discretion, (i) to have the terms of Section 2.3(c) apply to such requested Borrowing, or (ii) if the Borrowing is for an Advance, to request Swing Lender to make a Swing
Loan pursuant to the terms of Section 2.3(d) in the amount of the requested Borrowing; provided, however, that if Swing Lender declines in its sole discretion to make a Swing Loan pursuant to Section 2.3(d),
Agent shall elect to have the terms of Section 2.3(c) apply to such requested Borrowing. 
 (c) Making of Advances.

 (i) In the event that Agent shall elect to have the terms of this Section 2.3(c) apply to a requested Borrowing
as described in Section 2.3(b), then promptly after receipt of a request for a Borrowing pursuant to Section 2.3(a), Agent shall notify the Lenders, not later than 4:00 p.m. (Georgia time) on the Business Day immediately
preceding the Funding Date applicable thereto, by telecopy, telephone, or other similar form of transmission, of the requested Borrowing. Each Lender shall make the amount of such Lender’s Pro Rata Share of the requested Borrowing available to
Agent in immediately available funds, to Agent’s Account, not later than 1:00 p.m. (Georgia time) on the Funding Date applicable thereto. After Agent’s receipt of the proceeds of such Advances, upon satisfaction of the applicable
conditions precedent set forth in Section 3 hereof, Agent shall make the proceeds thereof available to Administrative Borrower on the applicable Funding Date by transferring immediately available funds equal to such proceeds received by
Agent to Administrative Borrower’s Designated Account; provided, however, that, subject to the provisions of Section 2.3(i), Agent shall not request any Lender to make, and no Lender shall have the obligation to make,
any Advance if Agent shall have actual knowledge that (1) one or more of the applicable conditions precedent set forth in Section 3 will not be satisfied on the requested Funding Date for the applicable Borrowing unless such
condition has been waived, or (2) the requested Borrowing would exceed the Availability on such Funding Date. 
 (ii)
Unless Agent receives notice from a Lender on or prior to the Closing Date or, with respect to any Borrowing after the Closing Date, at least 1 Business Day prior to the date of such Borrowing, that such Lender will not make available as and when
required hereunder to Agent for the account of Borrowers the amount of that Lender’s Pro Rata Share of the Borrowing, Agent may assume that each Lender has made or will make such amount available to Agent in immediately available funds on the
Funding Date and Agent may (but shall not be so required), in reliance upon such assumption, make available to Borrowers on such date a corresponding amount. If and to the extent any Lender shall not have made its full amount available to Agent in
immediately available funds and Agent in such circumstances has made available to Borrowers such amount, that Lender shall on the Business Day following such Funding Date make such amount 

  

 32 

 
available to Agent, together with interest at the Defaulting Lender Rate for each day during such period. A notice submitted by Agent to any Lender with
respect to amounts owing under this subsection shall be conclusive, absent manifest error. If such amount is so made available, such payment to Agent shall constitute such Lender’s Advance on the date of Borrowing for all purposes of this
Agreement. If such amount is not made available to Agent on the Business Day following the Funding Date, Agent will notify Administrative Borrower of such failure to fund and, upon demand by Agent, Borrowers shall pay such amount to Agent for
Agent’s account, together with interest thereon for each day elapsed since the date of such Borrowing, at a rate per annum equal to the interest rate applicable at the time to the Advances composing such Borrowing. The failure of any Lender to
make any Advance on any Funding Date shall not relieve any other Lender of any obligation hereunder to make an Advance on such Funding Date, but no Lender shall be responsible for the failure of any other Lender to make the Advance to be made by
such other Lender on any Funding Date. 
 (iii) Agent shall not be obligated to transfer to a Defaulting Lender any payments
made by Borrowers to Agent for the Defaulting Lender’s benefit, and, in the absence of such transfer to the Defaulting Lender, Agent shall transfer any such payments to each other non-Defaulting Lender member of the Lender Group ratably in
accordance with their Commitments (but only to the extent that such Defaulting Lender’s Advance was funded by the other members of the Lender Group) or, if so directed by Administrative Borrower and if no Default or Event of Default had
occurred and is continuing (and to the extent such Defaulting Lender’s Advance was not funded by the Lender Group), retain same to be re-advanced to Borrowers as if such Defaulting Lender had made Advances to Borrowers. Subject to the
foregoing, Agent may hold and, in its Permitted Discretion, re-lend to Borrowers for the account of such Defaulting Lender the amount of all such payments received and retained by Agent for the account of such Defaulting Lender. Solely for the
purposes of voting or consenting to matters with respect to the Loan Documents, such Defaulting Lender shall be deemed not to be a “Lender” and such Lender’s Commitment shall be deemed to be zero. This Section shall remain effective
with respect to such Lender until (x) the Obligations under this Agreement shall have been declared or shall have become immediately due and payable, (y) the non-Defaulting Lenders, Agent, and Administrative Borrower shall have waived such
Defaulting Lender’s default in writing, or (z) the Defaulting Lender makes its Pro Rata Share of the applicable Advance and pays to Agent all amounts owing by Defaulting Lender in respect thereof. The operation of this Section shall not be
construed to increase or otherwise affect the Commitment of any Lender, to relieve or excuse the performance by such Defaulting Lender or any other Lender of its duties and obligations hereunder, or to relieve or excuse the performance by Borrowers
of their duties and obligations hereunder to Agent or to the Lenders other than such Defaulting Lender. Any such failure to fund by any Defaulting Lender shall constitute a material breach by such Defaulting Lender of this Agreement and shall
entitle Administrative Borrower at its option, upon written notice to Agent, to arrange for a substitute Lender to assume the Commitment of such Defaulting 

  

 33 

 
Lender, such substitute Lender to be acceptable to Agent. In connection with the arrangement of such a substitute Lender, the Defaulting Lender shall have no
right to refuse to be replaced hereunder, and agrees to execute and deliver a completed form of Assignment and Acceptance Agreement in favor of the substitute Lender (and agrees that it shall be deemed to have executed and delivered such document if
it fails to do so) subject only to being repaid its share of the outstanding Obligations (including an assumption of its Pro Rata Share of the Risk Participation Liability) without any premium or penalty of any kind whatsoever; provided
further, however, that any such assumption of the Commitment of such Defaulting Lender shall not be deemed to constitute a waiver of any of the Lender Groups’ or Borrowers’ rights or remedies against any such Defaulting
Lender arising out of or in relation to such failure to fund. 
 (d) Making of Swing Loans. 
 (i) In the event Agent shall elect, with the consent of Swing Lender, as a Lender, to have the terms of this Section 2.3(d)
apply to a requested Borrowing as described in Section 2.3(b), Swing Lender as a Lender shall make such Advance in the amount of such Borrowing (any such Advance made solely by Swing Lender as a Lender pursuant to this
Section 2.3(d) being referred to as a “Swing Loan” and such Advances being referred to collectively as “Swing Loans”) available to Borrowers on the Funding Date applicable thereto by transferring
immediately available funds to Administrative Borrower’s Designated Account. Each Swing Loan is an Advance hereunder and shall be subject to all the terms and conditions applicable to other Advances, except that no such Swing Loan shall be
eligible for the LIBOR Option and payments on any Swing Loan shall be payable to Swing Lender as a Lender solely for its own account (and for the account of the holder of any participation interest with respect to such Swing Loan). Subject to the
provisions of Section 2.3(i), Agent shall not request Swing Lender as a Lender to make, and Swing Lender as a Lender shall not make, any Swing Loan if Agent has actual knowledge that (i) one or more of the applicable conditions
precedent set forth in Section 3 will not be satisfied on the requested Funding Date for the applicable Borrowing unless such condition has been waived, or (ii) the requested Borrowing would exceed the Availability on such Funding
Date. Swing Lender as a Lender shall not otherwise be required to determine whether the applicable conditions precedent set forth in Section 3 have been satisfied on the Funding Date applicable thereto prior to making, in its sole
discretion, any Swing Loan. 
 (ii) The Swing Loans shall be secured by the Agent’s Liens, shall constitute Advances and
Obligations hereunder, and shall bear interest at the rate applicable from time to time to Advances that are Base Rate Loans. 
 (e) Agent
Advances. 
 (i) Agent hereby is authorized by Borrowers and the Lenders, from time to time in Agent’s sole
discretion, (1) after the occurrence and during the 

  

 34 

 
continuance of a Default or an Event of Default, or (2) at any time that any of the other applicable conditions precedent set forth in
Section 3 have not been satisfied, to make Advances to Borrowers on behalf of the Lenders that Agent, in its Permitted Discretion deems necessary or desirable (A) to preserve or protect the Collateral, or any portion thereof,
(B) to enhance the likelihood of repayment of the Obligations, or (C) to pay any other amount chargeable to Borrowers pursuant to the terms of this Agreement, including Lender Group Expenses and the costs, fees, and expenses described in
Section 10 (any of the Advances described in this Section 2.3(e) shall be referred to as “Agent Advances”). Each Agent Advance is an Advance hereunder and shall be subject to all the terms and conditions
applicable to other Advances, except that no such Agent Advance shall be eligible for the LIBOR Option and all payments thereon shall be payable to Agent solely for its own account (and for the account of the holder of any participation interest
with respect to such Agent Advance). 
 (ii) The Agent Advances shall be repayable on demand and secured by the Agent’s
Liens granted to Agent under the Loan Documents, shall constitute Advances and Obligations hereunder, and shall bear interest at the rate applicable from time to time to Advances that are Base Rate Loans. 
 (f) Settlement. It is agreed that each Lender’s funded portion of the Advances is intended by the Lenders to equal, at all times, such
Lender’s Pro Rata Share of the outstanding Advances. Such agreement notwithstanding, Agent, Swing Lender, and the other Lenders agree (which agreement shall not be for the benefit of or enforceable by Borrowers) that in order to facilitate the
administration of this Agreement and the other Loan Documents, settlement among them as to the Advances, the Swing Loans, and the Agent Advances shall take place on a periodic basis in accordance with the following provisions: 
 (i) Agent shall request settlement (“Settlement”) with the Lenders on a weekly basis, or on a more frequent basis if so
determined by Agent, (1) on behalf of Swing Lender, with respect to each outstanding Swing Loan, (2) for itself, with respect to each Agent Advance, and (3) with respect to Collections of any Borrower received, as to each by notifying
the Lenders by telecopy, telephone, or other similar form of transmission, of such requested Settlement, no later than 5:00 p.m. (Georgia time) on the Business Day immediately prior to the date of such requested Settlement (the date of such
requested Settlement being the “Settlement Date”). Such notice of a Settlement Date shall include a summary statement of the amount of outstanding Advances, Swing Loans, and Agent Advances for the period since the prior Settlement
Date. Subject to the terms and conditions contained herein (including Section 2.3(c)(iii)): (y) if a Lender’s balance of the Advances, Swing Loans, and Agent Advances exceeds such Lender’s Pro Rata Share of the Advances,
Swing Loans, and Agent Advances as of a Settlement Date, then Agent shall, by no later than 3:00 p.m. (Georgia time) on the Settlement Date, transfer in immediately available funds to the account of such Lender as such Lender may designate, an
amount such that each such Lender shall, upon receipt of such amount, have as of the Settlement Date, its Pro Rata Share of the Advances, Swing Loans, and Agent Advances, and (z) if a Lender’s 

  

 35 

 
balance of the Advances, Swing Loans, and Agent Advances is less than such Lender’s Pro Rata Share of the Advances, Swing Loans, and Agent Advances as
of a Settlement Date, such Lender shall no later than 3:00 p.m. (Georgia time) on the Settlement Date transfer in immediately available funds to the Agent’s Account, an amount such that each such Lender shall, upon transfer of such amount, have
as of the Settlement Date, its Pro Rata Share of the Advances, Swing Loans, and Agent Advances. Such amounts made available to Agent under clause (z) of the immediately preceding sentence shall be applied against the amounts of the applicable
Swing Loan or Agent Advance and, together with the portion of such Swing Loan or Agent Advance representing Swing Lender’s Pro Rata Share thereof, shall constitute Advances of such Lenders. If any such amount is not made available to Agent by
any Lender on the Settlement Date applicable thereto to the extent required by the terms hereof, Agent shall be entitled to recover for its account such amount on demand from such Lender together with interest thereon at the Defaulting Lender Rate.

 (ii) In determining whether a Lender’s balance of the Advances, Swing Loans, and Agent Advances is less than, equal
to, or greater than such Lender’s Pro Rata Share of the Advances, Swing Loans, and Agent Advances as of a Settlement Date, Agent shall, as part of the relevant Settlement, apply to such balance the portion of payments actually received in good
funds by Agent with respect to principal, interest, fees payable by Borrowers and allocable to the Lenders hereunder, and proceeds of Collateral. To the extent that a net amount is owed to any such Lender after such application, such net amount
shall be distributed by Agent to that Lender as part of such next Settlement. 
 (iii) Between Settlement Dates, Agent, to the
extent no Agent Advances or Swing Loans are outstanding, may pay over to Swing Lender any payments received by Agent, that in accordance with the terms of this Agreement would be applied to the reduction of the Advances, for application to Swing
Lender’s Pro Rata Share of the Advances. If, as of any Settlement Date, Collections of any Borrower received since the then immediately preceding Settlement Date have been applied to Swing Lender’s Pro Rata Share of the Advances other than
to Swing Loans, as provided for in the previous sentence, Swing Lender shall pay to Agent for the accounts of the Lenders, and Agent shall pay to the Lenders, to be applied to the outstanding Advances of such Lenders, an amount such that each Lender
shall, upon receipt of such amount, have, as of such Settlement Date, its Pro Rata Share of the Advances. During the period between Settlement Dates, Swing Lender with respect to Swing Loans, Agent with respect to Agent Advances, and each Lender
(subject to the effect of letter agreements between Agent and individual Lenders) with respect to the Advances other than Swing Loans and Agent Advances, shall be entitled to interest at the applicable rate or rates payable under this Agreement on
the daily amount of funds employed by Swing Lender, Agent, or the Lenders, as applicable. 
 (g) Notation. Agent shall record on its
books the principal amount of the Advances owing to each Lender, including the Swing Loans owing to Swing Lender, and Agent 

  

 36 

 
Advances owing to Agent, and the interests therein of each Lender, from time to time. In addition, each Lender is authorized, at such Lender’s option,
to note the date and amount of each payment or prepayment of principal of such Lender’s Advances in its books and records, including computer records, such books and records constituting conclusive evidence, absent manifest error, of the
accuracy of the information contained therein. 
 (h) Lenders’ Failure to Perform. All Advances (other than Swing Loans and Agent
Advances) shall be made by the Lenders contemporaneously and in accordance with their Pro Rata Shares. It is understood that (i) no Lender shall be responsible for any failure by any other Lender to perform its obligation to make any Advances
(or other extension of credit) hereunder, nor shall any Commitment of any Lender be increased or decreased as a result of any failure by any other Lender to perform its obligations hereunder, and (ii) no failure by any Lender to perform its
obligations hereunder shall excuse any other Lender from its obligations hereunder. 
 (i) Optional Overadvances. 
 (i) Any contrary provision of this Agreement notwithstanding, the Lenders hereby authorize Agent or Swing Lender, as applicable, and Agent
or Swing Lender, as applicable, may, but is not obligated to, knowingly and intentionally, continue to make Advances (including Swing Loans) to Borrowers notwithstanding that an Overadvance exists or thereby would be created, so long as
(x) after giving effect to such Advances (including a Swing Loan), the Revolver Usage does not exceed the Borrowing Base by more than $500,000, (y) after giving effect to such Advances (including a Swing Loan) the outstanding Revolver
Usage (except for and excluding amounts charged to the Loan Account for interest, fees, or Lender Group Expenses) does not exceed the Maximum Revolver Amount, and (z) at the time of the making of any such Advance (including a Swing Loan), Agent
does not believe, in good faith, that the Overadvance created by such Advance will be outstanding for more than 90 days. The foregoing provisions are for the exclusive benefit of Agent, Swing Lender, and the Lenders and are not intended to benefit
Borrowers in any way. The Advances and Swing Loans, as applicable, that are made pursuant to this Section 2.3(i) shall be subject to the same terms and conditions as any other Advance or Swing Loan, as applicable, except that they shall
not be eligible for the LIBOR Option and the rate of interest applicable thereto shall be the rate applicable to Advances that are Base Rate Loans under Section 2.6(c) hereof without regard to the presence or absence of a Default or
Event of Default. 
 (ii) In the event Agent obtains actual knowledge that the Revolver Usage exceeds the amounts permitted by
the preceding paragraph, regardless of the amount of, or reason for, such excess, Agent shall notify Lenders as soon as practicable (and prior to making any (or any additional) intentional Overadvances (except for and excluding amounts charged to
the Loan Account for interest, fees, or Lender Group Expenses) unless Agent determines that prior notice would result in imminent harm to the Collateral or its value), and the Lenders with Commitments thereupon shall, together with Agent, jointly
determine the terms of 

  

 37 

 
arrangements that shall be implemented with Borrowers and intended to reduce, within a reasonable time, the outstanding principal amount of the Advances to
Borrowers to an amount permitted by the preceding paragraph. In the event Agent or any Lender disagrees over the terms of reduction or repayment of any Overadvance, the terms of reduction or repayment thereof shall be implemented according to the
determination of the Required Lenders. 
 (iii) Each Lender with a Commitment shall be obligated to settle with Agent as
provided in Section 2.3(f) for the amount of such Lender’s Pro Rata Share of any unintentional Overadvances by Agent reported to such Lender, any intentional Overadvances made as permitted under this Section 2.3(i), and
any Overadvances resulting from the charging to the Loan Account of interest, fees, or Lender Group Expenses. 
 2.4
Payments. 
 (a) Payments by Borrowers. 
 (i) Except as otherwise expressly provided herein, all payments by Borrowers shall be made to Agent’s Account for the account of the
Lender Group and shall be made in immediately available funds, no later than 2:00 p.m. (Georgia time) on the date specified herein. Any payment received by Agent later than 2:00 p.m. (Georgia time), shall be deemed to have been received on the
following Business Day and any applicable interest or fee shall continue to accrue until such following Business Day. 
 (ii)
Unless Agent receives notice from Administrative Borrower prior to the date on which any payment is due to the Lenders that Borrowers will not make such payment in full as and when required, Agent may assume that Borrowers have made (or will make)
such payment in full to Agent on such date in immediately available funds and Agent may (but shall not be so required), in reliance upon such assumption, distribute to each applicable Lender on such due date an amount equal to the amount then due
such Lender. If and to the extent Borrowers do not make such payment in full to Agent on the date when due, each applicable Lender severally shall repay to Agent on demand such amount distributed to such Lender, together with interest thereon at the
Defaulting Lender Rate for each day from the date such amount is distributed to such Lender until the date repaid. 
 (b) Apportionment
and Application. 
 (i) Except as otherwise provided with respect to Defaulting Lenders and except as otherwise provided
in the Loan Documents (including letter agreements between Agent and individual Lenders), aggregate principal and interest payments shall be apportioned ratably among the Lenders (according to the unpaid principal balance of the Obligations to which
such payments relate held by each Lender) and payments of fees and expenses (other than fees or 

  

 38 

 
expenses that are for Agent’s separate account, after giving effect to any letter agreements between Agent and individual Lenders) shall be apportioned
ratably among the Lenders having a Pro Rata Share of the type of Commitment or Obligation to which a particular fee relates. All payments shall be remitted to Agent and all such payments (other than payments received while no Default or Event of
Default has occurred and is continuing and which relate to the payment of principal or interest of specific Obligations or which relate to the payment of specific fees), and all proceeds of Accounts or other Collateral received by Agent, shall be
applied as follows: 
 A. first, to pay any Lender Group Expenses then due to Agent under the Loan Documents, until
paid in full, 
 B. second, to pay any Lender Group Expenses then due to the Lenders under the Loan Documents, on a
ratable basis, until paid in full, 
 C. third, to pay any fees then due to Agent (for its separate accounts, after
giving effect to any letter agreements between Agent and the individual Lenders) under the Loan Documents until paid in full, 
 D. fourth, to pay any fees then due to any or all of the Lenders (after giving effect to any letter agreements between Agent and individual Lenders) under the Loan Documents, on a ratable basis, until paid in full, 
 E. fifth, to pay interest due in respect of all Agent Advances, until paid in full, 
 F. sixth, ratably to pay interest due in respect of the Advances (other than Agent Advances) and the Swing Loans until paid in
full, 
 G. seventh, to pay the principal of all Agent Advances until paid in full, 
 H. eighth, to pay the principal of all Swing Loans until paid in full, 
 I. ninth, to pay the principal of all Advances until paid in full, 
 J. tenth, if an Event of Default has occurred and is continuing, to Agent, to be held by Agent, for the ratable benefit of Issuing
Lender and those Lenders having a Commitment, as cash collateral in an amount up to 105% of the then extant Letter of Credit Usage until paid in full, 
 K. eleventh, if an Event of Default has occurred and is continuing, to pay any other Obligations, and 
 L. twelfth, to Borrowers (to be wired to the Designated Account) or such other Person entitled thereto under applicable law. 
  

 39 

 (ii) Agent promptly shall distribute to each Lender, pursuant to the applicable wire
instructions received from each Lender in writing, such funds as it may be entitled to receive, subject to a Settlement delay as provided in Section 2.3(h). 
 (iii) In each instance, so long as no Default or Event of Default has occurred and is continuing, Section 2.4(b) shall not be
deemed to apply to any payment by Borrowers specified by Borrowers to be for the payment of specific Obligations then due and payable (or prepayable) under any provision of this Agreement. 
 (iv) For purposes of the foregoing, “paid in full” means payment of all amounts owing under the Loan Documents according to the
terms thereof, including loan fees, service fees, professional fees, interest (and specifically including interest accrued after the commencement of any Insolvency Proceeding), default interest, interest on interest, and expense reimbursements,
whether or not the same would be or is allowed or disallowed in whole or in part in any Insolvency Proceeding. 
 (v) In the
event of a direct conflict between the priority provisions of this Section 2.4 and other provisions contained in any other Loan Document, it is the intention of the parties hereto that such priority provisions in such documents shall be
read together and construed, to the fullest extent possible, to be in concert with each other. In the event of any actual, irreconcilable conflict that cannot be resolved as aforesaid, the terms and provisions of this Section 2.4 shall
control and govern. 
 2.5 Overadvances. If, at any time or for any reason, the amount of Obligations owed by
Borrowers to the Lender Group pursuant to Sections 2.1 and 2.12 is greater than either the Dollar or percentage limitations set forth in Sections 2.1 or 2.12, (an “Overadvance”), Borrowers immediately
shall pay to Agent, in cash, the amount of such excess, which amount shall be used by Agent to reduce the Obligations in accordance with the priorities set forth in Section 2.4(b). In addition, Borrowers hereby promise to pay the
Obligations (including principal, interest, fees, costs, and expenses) in Dollars in full to the Lender Group as and when due and payable under the terms of this Agreement and the other Loan Documents. 
 2.6 Interest Rates and Letter of Credit Fee: Rates, Payments, and Calculations. 
 (a) Interest Rates. Except as provided in clause (c) below, all Obligations (except for undrawn Letters of Credit) that have been charged to
the Loan Account pursuant to the terms hereof shall bear interest on the Daily Balance thereof as follows (i) if the relevant Obligation is an Advance that is a LIBOR Rate Loan, at a per annum rate equal to the LIBOR Rate plus the LIBOR Rate
Margin, and (ii) otherwise, at a per annum rate equal to the Base Rate plus the Base Rate Margin. 
  

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 (b) Letter of Credit Fee. Borrowers shall pay Agent (for the ratable benefit of the Lenders with a
Commitment, subject to any letter agreement between Agent and individual Lenders), a Letter of Credit fee (in addition to the charges, commissions, fees, and costs set forth in Section 2.12(e)) which shall accrue at a rate equal to
2.00% per annum times the Daily Balance of the undrawn amount of all outstanding Letters of Credit. 
 (c) Default Rate. Upon the
occurrence and during the continuation of an Event of Default (and at the election of Agent or the Required Lenders), 
 (i)
all Obligations (except for undrawn Letters of Credit ) that have been charged to the Loan Account pursuant to the terms hereof shall bear interest on the Daily Balance thereof at a per annum rate equal to 2 percentage points above the per annum
rate otherwise applicable hereunder, and 
 (ii) the Letter of Credit fee provided for above shall be increased to 2
percentage points above the per annum rate otherwise applicable hereunder. 
 (d) Payment. Interest, Letter of Credit fees, and all
other fees payable hereunder shall be due and payable, in arrears, on the first day of each month at any time that Obligations or Commitments are outstanding. Borrowers hereby authorize Agent, from time to time, without prior notice to Borrowers, to
charge such interest and fees, all Lender Group Expenses (as and when incurred), the charges, commissions, fees, and costs provided for in Section 2.12(e) (as and when accrued or incurred), the fees and costs provided for in
Section 2.11 (as and when accrued or incurred), and all other payments as and when due and payable under any Loan Document to Borrowers’ Loan Account, which amounts thereafter constitute Advances hereunder and shall accrue interest
at the rate then applicable to Advances hereunder. Any interest not paid when due shall be compounded by being charged to Borrowers’ Loan Account and shall thereafter constitute Advances hereunder and shall accrue interest at the rate then
applicable to Advances that are Base Rate Loans hereunder. 
 (e) Computation. All interest and fees chargeable under the Loan
Documents shall be computed on the basis of a 360 day year for the actual number of days elapsed. In the event the Base Rate is changed from time to time hereafter, the rates of interest hereunder based upon the Base Rate automatically and
immediately shall be increased or decreased by an amount equal to such change in the Base Rate. 
 (f) Intent to Limit Charges to Maximum
Lawful Rate. In no event shall the interest rate or rates payable under this Agreement, plus any other amounts paid in connection herewith, exceed the highest rate permissible under any law that a court of competent jurisdiction shall, in a
final determination, deem applicable. Borrowers and the Lender Group, in executing and delivering this Agreement, intend legally to agree upon the rate or rates of interest and manner of payment stated within it; provided, however,
that, anything contained herein to the contrary notwithstanding, if said rate or rates of interest or manner of payment exceeds the maximum allowable under applicable law, then, ipso facto, as of the date of this Agreement, Borrowers are and
shall be liable only for the payment of such maximum as allowed by law, and payment received from Borrowers in excess of such legal maximum, whenever received, shall be applied to reduce the principal balance of the Obligations to the extent of such
excess. 
  

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 2.7 Cash Management. 
 (a) Borrowers shall (i) establish and maintain cash management services of a type and on terms satisfactory to Agent at one or more of the banks set
forth on Schedule 2.7(a) (each a “Cash Management Bank”), and shall request in writing and otherwise take such reasonable steps to ensure that all of its Account Debtors forward payment of the amounts owed by them directly to
such Cash Management Bank, and (ii) deposit or cause to be deposited promptly, and in any event no later than the first Business Day after the date of receipt thereof, all Collections of any Borrower (including those sent directly by Account
Debtors to a Cash Management Bank) into a bank account in Agent’s name (a “Cash Management Account”) at one of the Cash Management Banks. 
 (b) Each Cash Management Bank shall establish and maintain Cash Management Agreements with Agent and Borrowers, in form and substance acceptable to Agent. Each such Cash Management Agreement shall provide, among other
things, that (i) all items of payment deposited in such Cash Management Account and proceeds thereof are held by such Cash Management Bank agent or bailee-in-possession for Agent, (ii) the Cash Management Bank has no rights of setoff or
recoupment or any other claim against the applicable Cash Management Account, other than for payment of its service fees and other charges directly related to the administration of such Cash Management Account and for returned checks or other items
of payment, and (iii) it immediately will forward by daily sweep all amounts in the applicable Cash Management Account to the Agent’s Account. 
 (c) So long as no Default or Event of Default has occurred and is continuing, Administrative Borrower may amend Schedule 2.7(a) to add or replace a Cash Management Account Bank or Cash Management Account;
provided, however, that (i) such prospective Cash Management Bank shall be satisfactory to Agent and Agent shall have consented in writing in advance to the opening of such Cash Management Account with the prospective Cash
Management Bank, and (ii) prior to the time of the opening of such Cash Management Account, Borrowers and such prospective Cash Management Bank shall have executed and delivered to Agent a Cash Management Agreement. Borrowers shall, within 60
days of notice from Agent that the creditworthiness of any Cash Management Bank is no longer acceptable in Agent’s reasonable judgment, or as promptly as practicable and in any event within 60 days of notice from Agent that the operating
performance, funds transfer, or availability procedures or performance of the Cash Management Bank with respect to Cash Management Accounts or Agent’s liability under any Cash Management Agreement with such Cash Management Bank is no longer
acceptable in Agent’s reasonable judgment, (x) establish replacement Cash Management Accounts in accordance with clauses (i) and (ii) above, and (y) direct all Account Debtors to remit payments to the new Cash Management
Accounts in writing, and Borrowers shall close such unacceptable Cash Management Accounts as soon as reasonably practicable thereafter. 
 (d) The Cash Management Accounts shall be cash collateral accounts, with all cash, checks and similar items of payment in such accounts securing payment of the Obligations, and in which Borrowers are hereby deemed to have granted a Lien to
Agent. 
  

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 2.8 Crediting Payments; Float Charge. The receipt of any payment item by Agent (whether
from transfers to Agent by the Cash Management Banks pursuant to the Cash Management Agreements or otherwise) shall not be considered a payment on account unless such payment item is a wire transfer of immediately available federal funds made to the
Agent’s Account or unless and until such payment item is honored when presented for payment. Should any payment item not be honored when presented for payment, then Borrowers shall be deemed not to have made such payment and interest shall be
calculated accordingly. Anything to the contrary contained herein notwithstanding, any payment item shall be deemed received by Agent only if it is received into the Agent’s Account on a Business Day on or before 2:00 p.m. (Georgia time). If
any payment item is received into the Agent’s Account on a non-Business Day or after 2:00 p.m. (Georgia time) on a Business Day, it shall be deemed to have been received by Agent as of the opening of business on the immediately following
Business Day. From and after the Closing Date, Agent shall be entitled to charge Borrowers for one Business Day of ‘clearance’ or ‘float’ at the rate applicable to Advances that are Base Rate Loans under Section 2.6
on all Collections that are received by any Borrower (regardless of whether forwarded by the Cash Management Banks to Agent). This across-the-board one Business Day clearance or float charge on all such Collections is acknowledged by the parties to
constitute an integral aspect of the pricing of the financing of Borrowers and shall apply irrespective of whether or not there are any outstanding monetary Obligations; the effect of such clearance or float charge being the equivalent of charging
one Business Day of interest on such Collections. The parties acknowledge and agree that the economic benefit of the foregoing provisions of this Section 2.8 shall be for the exclusive benefit of Agent. 
 2.9 Designated Account. Agent is authorized to make the Advances and Issuing Lender is authorized to issue the Letters of Credit, under
this Agreement based upon telephonic or other instructions received from anyone purporting to be an Authorized Person, or without instructions if pursuant to Section 2.6(d). Administrative Borrower agrees to establish and maintain the
Designated Account with the Designated Account Bank for the purpose of receiving the proceeds of the Advances requested by Borrowers and made by Agent or the Lenders hereunder. Unless otherwise agreed by Agent and Administrative Borrower, any
Advance, Agent Advance, or Swing Loan requested by Borrowers and made by Agent or the Lenders hereunder shall be made to the Designated Account. 
 2.10 Maintenance of Loan Account; Statements of Obligations. Agent shall maintain an account on its books in the name of Borrowers (the “Loan Account”) on which Borrowers will be charged with all Advances
(including Agent Advances and Swing Loans) made by Agent, Swing Lender, or the Lenders to Borrowers or for Borrowers’ account, the Letters of Credit issued by Issuing Lender for Borrowers’ account, and with all other payment Obligations
hereunder or under the other Loan Documents, including, accrued interest, fees and expenses, and Lender Group Expenses. In accordance with Section 2.8, the Loan Account will be credited with all payments received by Agent from Borrowers
or for Borrowers’ account, including all amounts received in the Agent’s Account from any Cash Management Bank. Agent shall render statements regarding the Loan Account to Administrative Borrower, including principal, interest, fees, and
including an itemization of all charges and expenses constituting Lender Group Expenses owing, and such statements shall be conclusively presumed to be correct and accurate and constitute an account stated 

  

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between Borrowers and the Lender Group unless, within 30 days after receipt thereof by Administrative Borrower, Administrative Borrower shall deliver to
Agent written objection thereto describing the error or errors contained in any such statements. 
 2.11 Fees.
Borrowers shall pay to Agent the following fees and charges, which fees and charges shall be non-refundable when paid (irrespective of whether this Agreement is terminated thereafter) and shall be apportioned among the Lenders in accordance with the
terms of letter agreements between Agent and individual Lenders: 
 (a) Unused Line Fee. On the first day of each month during the term
of this Agreement, an unused line fee in the amount equal to 0.375% per annum times the result of (a) the Maximum Revolver Amount, less (b) the sum of (i) the average Daily Balance of Advances that were outstanding during the
immediately preceding month, plus (ii) the average Daily Balance of the Letter of Credit Usage during the immediately preceding month, 
 (b) Fee Letter Fees. As and when due and payable under the terms of the Fee Letter, Borrowers shall pay to Agent the fees set forth in the Fee Letter, and 
 (c) Audit, Appraisal, and Valuation Charges. For the separate account of Agent, audit, appraisal, and valuation fees and charges as follows, (i) a fee of $850 per day, per auditor, plus reasonable
out-of-pocket expenses for each financial audit of a Borrower performed by personnel employed by Agent, (ii) reasonable out-of-pocket expenses for each appraisal of the Collateral performed by personnel employed by Agent, and (iii) the
actual charges paid or incurred by Agent if it elects to employ the services of one or more third Persons to perform financial audits of Borrowers, to appraise the Collateral, or any portion thereof, or to assess a Borrower’s business
valuation. 
 2.12 Letters of Credit 
 (a) Subject to the terms and conditions of this Agreement, the Issuing Lender agrees to issue letters of credit for the account of Borrowers (each, an
“L/C”) or to purchase participations or execute indemnities or reimbursement obligations (each such undertaking, an “L/C Undertaking”) with respect to letters of credit issued by an Underlying Issuer (as of the
Closing Date, the prospective Underlying Issuer is to be Wells Fargo) for the account of Borrowers. To request the issuance of an L/C or an L/C Undertaking (or the amendment, renewal, or extension of an outstanding L/C or L/C Undertaking),
Administrative Borrower shall hand deliver or telecopy (or transmit by electronic communication, if arrangements for doing so have been approved by the Issuing Lender) to the Issuing Lender and Agent (reasonably in advance of the requested date of
issuance, amendment, renewal, or extension) a notice requesting the issuance of an L/C or L/C Undertaking, or identifying the L/C or L/C Undertaking to be amended, renewed, or extended, the date of issuance, amendment, renewal, or extension, the
date on which such L/C or L/C Undertaking is to expire, the amount of such L/C or L/C Undertaking, the name and address of the beneficiary thereof (or of the Underlying Letter of Credit, as applicable), and such other information as shall be
necessary to prepare, amend, renew, or extend such L/C or L/C Undertaking. If requested by the Issuing Lender, Borrowers also shall be an applicant under the application with respect to any Underlying Letter of Credit that is to be the subject of an
L/C Undertaking. The Issuing Lender shall have no obligation to issue a Letter of Credit if any of the following would result after giving effect to the requested Letter of Credit: 
 (i) the Letter of Credit Usage would exceed the Borrowing Base less the amount of outstanding Advances, or 
  

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 (ii) the Letter of Credit Usage would exceed $15,000,000, or 
 (iii) the Letter of Credit Usage would exceed the Maximum Revolver Amount less the then extant amount of outstanding Advances.

 Borrowers and the Lender Group acknowledge and agree that certain Underlying Letters of Credit may be issued to support letters of credit
that already are outstanding as of the Closing Date. Each Letter of Credit (and corresponding Underlying Letter of Credit) shall have an expiry date no later than 30 days prior to the Maturity Date and all such Letters of Credit (and corresponding
Underlying Letter of Credit) shall be in form and substance acceptable to the Issuing Lender (in the exercise of its Permitted Discretion), including the requirement that the amounts payable thereunder must be payable in Dollars. If Issuing Lender
is obligated to advance funds under a Letter of Credit, Borrowers immediately shall reimburse such L/C Disbursement to Issuing Lender by paying to Agent an amount equal to such L/C Disbursement not later than 2:00 p.m., Georgia time, on the date
that such L/C Disbursement is made, if Administrative Borrower shall have received written or telephonic notice of such L/C Disbursement prior to 1:00 p.m., Georgia time, on such date, or, if such notice has not been received by Administrative
Borrower prior to such time on such date, then not later than 2:00 p.m., Georgia time, on (i) the Business Day that Administrative Borrower receives such notice, if such notice is received prior to 1:00 p.m., Georgia time, on the date of
receipt, and, in the absence of such reimbursement, the L/C Disbursement immediately and automatically shall be deemed to be an Advance hereunder and, thereafter, shall bear interest at the rate then applicable to Advances that are Base Rate Loans
under Section 2.6. To the extent an L/C Disbursement is deemed to be an Advance hereunder, Borrowers’ obligation to reimburse such L/C Disbursement shall be discharged and replaced by the resulting Advance. Promptly following
receipt by Agent of any payment from Borrowers pursuant to this paragraph, Agent shall distribute such payment to the Issuing Lender or, to the extent that Lenders have made payments pursuant to Section 2.12(c) to reimburse the Issuing
Lender, then to such Lenders and the Issuing Lender as their interest may appear. 
 (b) Promptly following receipt of a notice of L/C
Disbursement pursuant to Section 2.12(a), each Lender with a Commitment agrees to fund its Pro Rata Share of any Advance deemed made pursuant to the foregoing subsection on the same terms and conditions as if Borrowers had requested such
Advance and Agent shall promptly pay to Issuing Lender the amounts so received by it from the Lenders. By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further action on the
part of the Issuing Lender or the Lenders with Commitments, the Issuing Lender shall be deemed to have granted to each Lender with a Commitment, and each Lender with a Commitment shall be deemed to have purchased, a participation in each Letter of
Credit, in an amount equal to its Pro Rata Share of the Risk Participation Liability of such Letter of Credit, and each such Lender agrees to pay to Agent, for the account of the Issuing Lender, such 

  

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Lender’s Pro Rata Share of any payments made by the Issuing Lender under such Letter of Credit. In consideration and in furtherance of the foregoing,
each Lender with a Commitment hereby absolutely and unconditionally agrees to pay to Agent, for the account of the Issuing Lender, such Lender’s Pro Rata Share of each L/C Disbursement made by the Issuing Lender and not reimbursed by Borrowers
on the date due as provided in clause (a) of this Section, or of any reimbursement payment required to be refunded to Borrowers for any reason. Each Lender with a Commitment acknowledges and agrees that its obligation to deliver to Agent, for
the account of the Issuing Lender, an amount equal to its respective Pro Rata Share pursuant to this Section 2.12(b) shall be absolute and unconditional and such remittance shall be made notwithstanding the occurrence or continuation of
an Event of Default or Default or the failure to satisfy any condition set forth in Section 3 hereof. If any such Lender fails to make available to Agent the amount of such Lender’s Pro Rata Share of any payments made by the Issuing
Lender in respect of such Letter of Credit as provided in this Section, Agent (for the account of the Issuing Lender) shall be entitled to recover such amount on demand from such Lender together with interest thereon at the Defaulting Lender Rate
until paid in full. 
 (c) Each Borrower hereby agrees to indemnify, save, defend, and hold the Lender Group harmless from any loss, cost,
expense, or liability, and reasonable attorneys fees incurred by the Lender Group arising out of or in connection with any Letter of Credit; provided, however, that no Borrower shall be obligated hereunder to indemnify for any loss,
cost, expense, or liability that is caused by the gross negligence or willful misconduct of the Issuing Lender or any other member of the Lender Group. Each Borrower agrees to be bound by the Underlying Issuer’s regulations and interpretations
of any Underlying Letter of Credit or by Issuing Lender’s interpretations of any L/C issued by Issuing Lender to or for such Borrower’s account, even though this interpretation may be different from such Borrower’s own, and each
Borrower understands and agrees that the Lender Group shall not be liable for any error, negligence, or mistake, whether of omission or commission, in following Borrowers’ instructions or those contained in the Letter of Credit or any
modifications, amendments, or supplements thereto. Each Borrower understands that the L/C Undertakings may require Issuing Lender to indemnify the Underlying Issuer for certain costs or liabilities arising out of claims by Borrowers against such
Underlying Issuer. Each Borrower hereby agrees to indemnify, save, defend, and hold the Lender Group harmless with respect to any loss, cost, expense (including reasonable attorneys fees), or liability incurred by the Lender Group under any L/C
Undertaking as a result of the Lender Group’s indemnification of any Underlying Issuer; provided, however, that no Borrower shall be obligated hereunder to indemnify for any loss, cost, expense, or liability that is caused by the
gross negligence or willful misconduct of the Issuing Lender or any other member of the Lender Group. 
 (d) Each Borrower hereby authorizes
and directs any Underlying Issuer to deliver to the Issuing Lender all instruments, documents, and other writings and property received by such Underlying Issuer pursuant to such Underlying Letter of Credit and to accept and rely upon the Issuing
Lender’s instructions with respect to all matters arising in connection with such Underlying Letter of Credit and the related application. 
 (e) Any and all charges, commissions, fees, and costs incurred by the Issuing Lender relating to Underlying Letters of Credit shall be Lender Group Expenses for purposes of this Agreement and immediately shall be reimbursable by Borrowers
to Agent for the account of 

  

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the Issuing Lender; it being acknowledged and agreed by each Borrower that, as of the Closing Date, the issuance charge imposed by the prospective Underlying
Issuer is .825% per annum times the face amount of each Underlying Letter of Credit, that such issuance charge may be changed from time to time, and that the Underlying Issuer also imposes a schedule of charges for amendments, extensions,
drawings, and renewals. 
 (f) If by reason of (i) any change after the date of this Agreement in any applicable law, treaty, rule, or
regulation or any change after the date of this Agreement in the interpretation or application thereof by any Governmental Authority, or (ii) compliance by the Underlying Issuer or the Lender Group with any direction, request, or requirement
(irrespective of whether having the force of law) of any Governmental Authority or monetary authority including, Regulation D of the Federal Reserve Board as from time to time in effect (and any successor thereto): 
 (i) any reserve, deposit, or similar requirement is or shall be imposed or modified in respect of any Letter of Credit issued hereunder,
or 
 (ii) there shall be imposed on the Underlying Issuer or the Lender Group any other condition regarding any Underlying
Letter of Credit or any Letter of Credit issued pursuant hereto; 
 and the result of the foregoing is to increase, directly or indirectly, the cost to the
Lender Group of issuing, making, guaranteeing, or maintaining any Letter of Credit or to reduce the amount receivable in respect thereof by the Lender Group, then, and in any such case, Agent may, at any time within a reasonable period after the
additional cost is incurred or the amount received is reduced, notify Administrative Borrower, and Borrowers shall pay on demand such amounts as Agent may specify to be necessary to compensate the Lender Group for such additional cost or reduced
receipt, together with interest on such amount from the date of such demand until payment in full thereof at the rate then applicable to Base Rate Loans hereunder. The determination by Agent of any amount due pursuant to this Section, as set forth
in a certificate setting forth the calculation thereof in reasonable detail, shall, in the absence of manifest or demonstrable error, be final and conclusive and binding on all of the parties hereto. 
 (g) Each Borrower acknowledges and agrees that certain of the Qualified Import Letters of Credit may provide for the presentation of time drafts to the
Underlying Issuer. If an Underlying Issuer accepts such a time draft that is presented under an Underlying Letter of Credit, it is acknowledged and agreed that (i) the Letter of Credit will require the Issuing Lender to reimburse the Underlying
Issuer for amounts paid on account of such time draft on or after the maturity date thereof, (ii)the pricing provisions hereof (including Sections 2.6(b) and 2.12(e)) shall continue to apply, until payment of such time draft on or
after the maturity date thereof, as if the Underlying Letter of Credit were still outstanding, and (iii) on the date on which Issuing Lender makes payment to the Underlying Issuer of the amounts paid on account of such time draft, the Borrowers
immediately shall reimburse such amount to Issuing Lender and such amount shall constitute an L/C Disbursement hereunder. 
  

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 2.13 LIBOR Option. 
 (a) Interest and Interest Payment Dates. In lieu of having interest charged at the rate based upon the Base Rate, Borrowers shall have the option
(the “LIBOR Option”) to have interest on all or a portion of the Advances be charged at the LIBOR Rate. Interest on LIBOR Rate Loans shall be payable on the earliest of (i) the last day of the Interest Period applicable
thereto, (ii) the occurrence of an Event of Default in consequence of which the Required Lenders or Agent on behalf thereof elect to accelerate the maturity of the Obligations, or (iii) termination of this Agreement pursuant to the terms
hereof. On the last day of each applicable Interest Period, unless Administrative Borrower properly has exercised the LIBOR Option with respect thereto, the interest rate applicable to such LIBOR Rate Loan automatically shall convert to the rate of
interest then applicable to Base Rate Loans of the same type hereunder. At any time that an Event of Default has occurred and is continuing, Borrowers no longer shall have the option to request that Advances bear interest at the LIBOR Rate and Agent
shall have the right to convert the interest rate on all outstanding LIBOR Rate Loans to the rate then applicable to Base Rate Loans hereunder. 
 (b) LIBOR Election. 
 (i) Administrative Borrower may, at any time and from time to time, so long as no Event of
Default has occurred and is continuing, elect to exercise the LIBOR Option by notifying Agent prior to 2:00 p.m. (Georgia time) at least 3 Business Days prior to the commencement of the proposed Interest Period (the “LIBOR
Deadline”). Notice of Administrative Borrower’s election of the LIBOR Option for a permitted portion of the Advances and an Interest Period pursuant to this Section shall be made by delivery to Agent of a LIBOR Notice received by Agent
before the LIBOR Deadline, or by telephonic notice received by Agent before the LIBOR Deadline (to be confirmed by delivery to Agent of a LIBOR Notice received by Agent prior to 5:00 p.m. (Georgia time) on the same day. Promptly upon its receipt of
each such LIBOR Notice, Agent shall provide a copy thereof to each of the Lenders having a Commitment. 
 (ii) Each LIBOR
Notice shall be irrevocable and binding on Borrowers. In connection with each LIBOR Rate Loan, each Borrower shall indemnify, defend, and hold Agent and the Lenders harmless against any loss, cost, or expense incurred by Agent or any Lender as a
result of (a) the payment of any principal of any LIBOR Rate Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any LIBOR Rate Loan other than on
the last day of the Interest Period applicable thereto, or (c) the failure to borrow, convert, continue or prepay any LIBOR Rate Loan on the date specified in any LIBOR Notice delivered pursuant hereto (such losses, costs, and expenses,
collectively, “Funding Losses”). Funding Losses shall, with respect to Agent or any Lender, be deemed to equal the amount determined by Agent or such Lender to be the excess, if any, of (i) the amount of interest that would
have accrued on the principal amount of such LIBOR Rate Loan had such event not occurred, at the LIBOR Rate that would have been applicable thereto, for the period from the date of such event to the last 

  

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day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the
Interest Period therefor), minus (ii) the amount of interest that would accrue on such principal amount for such period at the interest rate which Agent or such Lender would be offered were it to be offered, at the commencement of such period,
Dollar deposits of a comparable amount and period in the London interbank market. A certificate of Agent or a Lender delivered to Administrative Borrower setting forth any amount or amounts that Agent or such Lender is entitled to receive pursuant
to this Section shall be conclusive absent manifest error. 
 (iii) Borrowers shall have not more than 5 LIBOR Rate Loans in
effect at any given time. Borrowers only may exercise the LIBOR Option for LIBOR Rate Loans of at least $1,000,000 and integral multiples of $500,000 in excess thereof. 
 (c) Prepayments. Borrowers may prepay LIBOR Rate Loans at any time; provided, however, that in the event that LIBOR Rate Loans are prepaid on any date that is not the last day of the Interest
Period applicable thereto, including as a result of any automatic prepayment through the required application by Agent of proceeds of Collections in accordance with Section 2.4(b) or for any other reason, including early termination of
the term of this Agreement or acceleration of the Obligations pursuant to the terms hereof, each Borrower shall indemnify, defend, and hold Agent and the Lenders and their Participants harmless against any and all Funding Losses in accordance with
clause (b) above. 
 (d) Special Provisions Applicable to LIBOR Rate. 
 (i) The LIBOR Rate may be adjusted by Agent with respect to any Lender on a prospective basis to take into account any additional or
increased costs to such Lender of maintaining or obtaining any eurodollar deposits or increased costs due to changes in applicable law occurring subsequent to the commencement of the then applicable Interest Period, including changes in tax laws
(except changes of general applicability in corporate income tax laws) and changes in the reserve requirements imposed by the Board of Governors of the Federal Reserve System (or any successor), excluding the Reserve Percentage, which additional or
increased costs would increase the cost of funding loans bearing interest at the LIBOR Rate. In any such event, the affected Lender shall give Administrative Borrower and Agent notice of such a determination and adjustment and Agent promptly shall
transmit the notice to each other Lender and, upon its receipt of the notice from the affected Lender, Administrative Borrower may, by notice to such affected Lender (y) require such Lender to furnish to Administrative Borrower a statement
setting forth the basis for adjusting such LIBOR Rate and the method for determining the amount of such adjustment, or (z) repay the LIBOR Rate Loans with respect to which such adjustment is made (together with any amounts due under clause
(b)(ii) above). 
 (ii) In the event that any change in market conditions or any law, regulation, treaty, or directive, or any
change therein or in the interpretation of 

  

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application thereof, shall at any time after the date hereof, in the reasonable opinion of any Lender, make it unlawful or impractical for such Lender to
fund or maintain LIBOR Advances or to continue such funding or maintaining, or to determine or charge interest rates at the LIBOR Rate, such Lender shall give notice of such changed circumstances to Agent and Administrative Borrower and Agent
promptly shall transmit the notice to each other Lender and (y) in the case of any LIBOR Rate Loans of such Lender that are outstanding, the date specified in such Lender’s notice shall be deemed to be the last day of the Interest Period
of such LIBOR Rate Loans, and interest upon the LIBOR Rate Loans of such Lender thereafter shall accrue interest at the rate then applicable to Base Rate Loans, and (z) Borrowers shall not be entitled to elect the LIBOR Option until such Lender
determines that it would no longer be unlawful or impractical to do so. 
 (e) No Requirement of Matched Funding. Anything to the
contrary contained herein notwithstanding, neither Agent, nor any Lender, nor any of their Participants, is required actually to acquire eurodollar deposits to fund or otherwise match fund any Obligation as to which interest accrues at the LIBOR
Rate. The provisions of this Section shall apply as if each Lender or its Participants had match funded any Obligation as to which interest is accruing at the LIBOR Rate by acquiring eurodollar deposits for each Interest Period in the amount of the
LIBOR Rate Loans. 
 2.14 Capital Requirements. If, after the date hereof, any Lender determines that
(i) the adoption of or change in any law, rule, regulation or guideline regarding capital requirements for banks or bank holding companies, or any change in the interpretation or application thereof by any Governmental Authority charged with
the administration thereof, or (ii) compliance by such Lender or its parent bank holding company with any guideline, request or directive of any such entity regarding capital adequacy (whether or not having the force of law), has the effect of
reducing the return on such Lender’s or such holding company’s capital as a consequence of such Lender’s Commitments hereunder to a level below that which such Lender or such holding company could have achieved but for such adoption,
change, or compliance (taking into consideration such Lender’s or such holding company’s then existing policies with respect to capital adequacy and assuming the full utilization of such entity’s capital) by any amount deemed by such
Lender to be material, then such Lender may notify Administrative Borrower and Agent thereof within 360 days after such Lender obtains knowledge of such reduction. Following receipt of such notice, Borrowers agree to pay such Lender on demand the
amount of such reduction of return of capital as and when such reduction is determined, payable within 90 days after presentation by such Lender of a statement in the amount and setting forth in reasonable detail such Lender’s calculation
thereof and the assumptions upon which such calculation was based (which statement shall be deemed true and correct absent manifest error). In determining such amount, such Lender may use any reasonable averaging and attribution methods. 

2.15 Joint and Several Liability of Borrowers. 
 (a) Each of Borrowers is accepting joint and several liability hereunder and under the other Loan Documents in consideration of the financial
accommodations to be provided by the Agent and the Lenders under this Agreement, for the mutual benefit, directly and indirectly, of each of Borrowers and in consideration of the undertakings of the other Borrowers to accept joint and several
liability for the Obligations. 
  

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 (b) Each of Borrowers, jointly and severally, hereby irrevocably and unconditionally accepts, not merely
as a surety but also as a co-debtor, joint and several liability with the other Borrowers, with respect to the payment and performance of all of the Obligations (including, without limitation, any Obligations arising under this
Section 2.15), it being the intention of the parties hereto that all the Obligations shall be the joint and several obligations of each Person composing Borrowers without preferences or distinction among them. 
 (c) If and to the extent that any of Borrowers shall fail to make any payment with respect to any of the Obligations as and when due or to perform any of
the Obligations in accordance with the terms thereof, then in each such event the other Persons composing Borrowers will make such payment with respect to, or perform, such Obligation. 
 (d) The Obligations of each Person composing Borrowers under the provisions of this Section 2.15 constitute the absolute and unconditional,
full recourse Obligations of each Person composing Borrowers enforceable against each such Borrower to the full extent of its properties and assets, irrespective of the validity, regularity or enforceability of this Agreement or any other
circumstances whatsoever. 
 (e) Except as otherwise expressly provided in this Agreement, each Person composing Borrowers hereby waives
notice of acceptance of its joint and several liability, notice of any Advances or Letters of Credit issued under or pursuant to this Agreement, notice of the occurrence of any Default, Event of Default, or of any demand for any payment under this
Agreement, notice of any action at any time taken or omitted by Agent or Lenders under or in respect of any of the Obligations, any requirement of diligence or to mitigate damages and, generally, to the extent permitted by applicable law, all
demands, notices and other formalities of every kind in connection with this Agreement (except as otherwise provided in this Agreement). Each Person composing Borrowers hereby assents to, and waives notice of, any extension or postponement of the
time for the payment of any of the Obligations, the acceptance of any payment of any of the Obligations, the acceptance of any partial payment thereon, any waiver, consent or other action or acquiescence by Agent or Lenders at any time or times in
respect of any default by any Person composing Borrowers in the performance or satisfaction of any term, covenant, condition or provision of this Agreement, any and all other indulgences whatsoever by Agent or Lenders in respect of any of the
Obligations, and the taking, addition, substitution or release, in whole or in part, at any time or times, of any security for any of the Obligations or the addition, substitution or release, in whole or in part, of any Person composing Borrowers.
Without limiting the generality of the foregoing, each of Borrowers assents to any other action or delay in acting or failure to act on the part of any Agent or Lender with respect to the failure by any Person composing Borrowers to comply with any
of its respective Obligations, including, without limitation, any failure strictly or diligently to assert any right or to pursue any remedy or to comply fully with applicable laws or regulations thereunder, which might, but for the provisions of
this Section 2.15 afford grounds for terminating, discharging or relieving any Person composing Borrowers, in whole or in part, from any of its Obligations under this Section 2.15, it being the intention of each Person
composing Borrowers that, so long as any of the Obligations hereunder remain unsatisfied, the Obligations of such Person composing 

  

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Borrowers under this Section 2.15 shall not be discharged except by performance and then only to the extent of such performance. The Obligations
of each Person composing Borrowers under this Section 2.15 shall not be diminished or rendered unenforceable by any winding up, reorganization, arrangement, liquidation, reconstruction or similar proceeding with respect to any Person
composing Borrowers or any Agent or Lender. The joint and several liability of the Persons composing Borrowers hereunder shall continue in full force and effect notwithstanding any absorption, merger, amalgamation or any other change whatsoever in
the name, constitution or place of formation of any of the Persons composing Borrowers or any Agent or Lender. 
 (f) Each Person composing
Borrowers represents and warrants to Agent and Lenders that such Borrower is currently informed of the financial condition of Borrowers and of all other circumstances which a diligent inquiry would reveal and which bear upon the risk of nonpayment
of the Obligations. Each Person composing Borrowers further represents and warrants to Agent and Lenders that such Borrower has read and understands the terms and conditions of the Loan Documents. Each Person composing Borrowers hereby covenants
that such Borrower will continue to keep informed of Borrowers’ financial condition, the financial condition of other guarantors, if any, and of all other circumstances which bear upon the risk of nonpayment or nonperformance of the
Obligations. 
 (g) Intentionally Omitted. 
 (h) Each of the Persons composing Borrowers waives all rights and defenses that such Borrower may have because the Obligations are secured by Real Property. This means, among other things: 
 (i) Agent and Lenders may collect from such Borrower without first foreclosing on any Real or Personal Property Collateral pledged by
Borrowers. 
 (ii) If Agent or any Lender forecloses on any Real Property Collateral pledged by Borrowers: 
 A. The amount of the Obligations may be reduced only by the price for which that collateral is sold at the foreclosure sale, even if the
collateral is worth more than the sale price. 
 B. Agent and Lenders may collect from such Borrower even if Agent or
Lenders, by foreclosing on the Real Property Collateral, has destroyed any right such Borrower may have to collect from the other Borrowers. 
 This is an
unconditional and irrevocable waiver of any rights and defenses such Borrower may have because the Obligations are secured by Real Property. 
 (i) The provisions of this Section 2.15 are made for the benefit of the Agent, the Lenders and their respective successors and assigns, and may be enforced by it or them from time to time against any or all of the Persons
composing Borrowers as often as occasion therefor may arise and without requirement on the part of any such Agent, Lender, successor or assign first to marshal any of its or their claims or to exercise any of its or their rights against any of the

  

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other Persons composing Borrowers or to exhaust any remedies available to it or them against any of the other Persons composing Borrowers or to resort to any
other source or means of obtaining payment of any of the Obligations hereunder or to elect any other remedy. The provisions of this Section 2.15 shall remain in effect until all of the Obligations shall have been paid in full or
otherwise fully satisfied. If at any time, any payment, or any part thereof, made in respect of any of the Obligations, is rescinded or must otherwise be restored or returned by any Agent or Lender upon the insolvency, bankruptcy or reorganization
of any of the Persons composing Borrowers, or otherwise, the provisions of this Section 2.15 will forthwith be reinstated in effect, as though such payment had not been made. 
 (j) Each of the Persons composing Borrowers hereby agrees that it will not enforce any of its rights of contribution or subrogation against the other
Persons composing Borrowers with respect to any liability incurred by it hereunder or under any of the other Loan Documents, any payments made by it to the Agent or the Lenders with respect to any of the Obligations or any collateral security
therefor until such time as all of the Obligations have been paid in full in cash. Any claim which any Borrower may have against any other Borrower with respect to any payments to any Agent or Lender hereunder or under any other Loan Documents are
hereby expressly made subordinate and junior in right of payment, without limitation as to any increases in the Obligations arising hereunder or thereunder, to the prior payment in full in cash of the Obligations and, in the event of any insolvency,
bankruptcy, receivership, liquidation, reorganization or other similar proceeding under the laws of any jurisdiction relating to any Borrower, its debts or its assets, whether voluntary or involuntary, all such Obligations shall be paid in full in
cash before any payment or distribution of any character, whether in cash, securities or other property, shall be made to any other Borrower therefor. 
 (k) Each of the Persons composing Borrowers hereby agrees that, after the occurrence and during the continuance of any Default or Event of Default, the payment of any amounts due with respect to the indebtedness owing
by any Borrower to any other Borrower is hereby subordinated to the prior payment in full in cash of the Obligations. Each Borrower hereby agrees that after the occurrence and during the continuance of any Default or Event of Default, such Borrower
will not demand, sue for or otherwise attempt to collect any indebtedness of any other Borrower owing to such Borrower until the Obligations shall have been paid in full in cash. If, notwithstanding the foregoing sentence, such Borrower shall
collect, enforce or receive any amounts in respect of such indebtedness, such amounts shall be collected, enforced and received by such Borrower as trustee for the Agent, and the Agent shall deliver any such amounts to the Administrative Agent for
application to the Obligations in accordance with Section 2.4(b). 
 3. CONDITIONS; TERM OF AGREEMENT. 
 3.1 Conditions Precedent to the Initial Extension of Credit. The obligation of the Lender Group (or any member thereof) to
make the initial Advance (or otherwise to extend any credit provided for hereunder), is subject to the fulfillment, to the satisfaction of Agent, of each of the conditions precedent set forth below: 
 (a) the Closing Date shall occur on or before March 31, 2006; 
  

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 (b) Agent shall have received all financing statements required by Agent, duly authorized by the
applicable Borrowers; 
 (c) Agent shall have received each of the following documents, in form and substance satisfactory to Agent, duly
executed, and each such document shall be in full force and effect: 
 (i) the Disbursement Letter, 
 (ii) the Fee Letter, and 
 (iii) the Reaffirmation Agreement. 
 (d) Agent shall have received a certificate from the Secretary of each
Borrower attesting to the resolutions of such Borrower’s Board of Directors authorizing its execution, delivery, and performance of this Agreement and the other Loan Documents to which such Borrower is a party and authorizing specific officers
of such Borrower to execute the same; 
 (e) Agent shall have received copies of each Borrower’s Governing Documents, as amended,
modified, or supplemented to the Closing Date, certified by the Secretary of such Borrower; 
 (f) Agent shall have received a certificate of
status with respect to each Borrower, dated as of a recent date, such certificate to be issued by the appropriate officer of the jurisdiction of organization of such Borrower, which certificate shall indicate that such Borrower is in good standing
in such jurisdiction; 
 (g) Agent shall have received certificates of status with respect to each Borrower, each dated as of a recent date,
such certificates to be issued by the appropriate officer of the jurisdictions (other than the jurisdiction of organization of such Borrower) in which its failure to be duly qualified or licensed would constitute a Material Adverse Change, which
certificates shall indicate that such Borrower is in good standing in such jurisdictions; 
 (h) Agent shall have received opinions of
Borrowers’ counsel in form and substance satisfactory to Agent; 
 (i) Agent shall have received satisfactory evidence (including a
certificate of the chief financial officer of each Borrower) that all tax returns required to be filed by Borrowers have been timely filed and all taxes upon Borrowers or their properties, assets, income, and franchises (including Real Property
taxes and payroll taxes) have been paid prior to delinquency, except such taxes that are the subject of a Permitted Protest; 
 (j) Agent
shall have received copies of Borrowers’ audited consolidated and consolidating financial statements for the fiscal year ended November 30, 2005; 
 (k) Borrowers shall pay all Lender Group Expenses incurred in connection with the transactions evidenced by this Agreement; 
  

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 (l) Agent shall have received Borrowers’ Closing Date Business Plan; 
 (m) Borrowers shall have received all licenses, approvals or evidence of other actions required by any Governmental Authority in connection with the
execution and delivery by Borrowers of this Agreement or any other Loan Document or with the consummation of the transactions contemplated hereby and thereby; and 
 (n) all other documents and legal matters in connection with the transactions contemplated by this Agreement shall have been delivered, executed, or recorded and shall be in form and substance satisfactory to Agent.

 3.2 Conditions Subsequent to the Initial Extension of Credit. The obligation of the Lender Group (or any member thereof) to
continue to make Advances (or otherwise extend credit hereunder) is subject to the fulfillment, on or before the date applicable thereto, of each of the conditions subsequent set forth below (the failure by Borrowers to so perform or cause to be
performed constituting an Event of Default): 
 (a) within 60 days of the Closing Date (as may be extended by Agent in its sole discretion),
Borrowers shall deliver to Agent any amendments, consents, modification, filings, notices or other agreements reasonably requested by Agent necessary or desirable to maintain the perfection and priority of the security interest and other rights
granted pursuant to the Stock Pledge Agreements pledging to Agent 65% of the Stock and other equity interests held by any Borrower in any First Tier Foreign Subsidiary (other than those Subsidiaries listed on Schedule 3.2), together with all
opinions of foreign and U.S. counsel reasonably requested in connection therewith; and 
 (b) within 10 days of the Closing Date, Borrower
shall deliver to Agent copies of each Borrower’s Governing Documents as filed with the Secretary of State (or other appropriate officer) of the jurisdiction of organization of such Borrower, which shall be certified by such Secretary of State
(or such other appropriate officer) and dated within 10 days of the Closing Date. 
 3.3 Conditions Precedent to all Extensions of
Credit. The obligation of the Lender Group (or any member thereof) to make all Advances (or to extend any other credit hereunder) shall be subject to the following conditions precedent: 
 (a) the representations and warranties contained in this Agreement and the other Loan Documents shall be true and correct in all material respects on and
as of the date of such extension of credit, as though made on and as of such date (except to the extent that such representations and warranties relate solely to an earlier date); 
 (b) no Default or Event of Default shall have occurred and be continuing on the date of such extension of credit, nor shall either result from the making
thereof; 
 (c) no injunction, writ, restraining order, or other order of any nature prohibiting, directly or indirectly, the extending of
such credit shall have been issued and remain in force by any Governmental Authority against any Borrower, Agent, any Lender, or any of their Affiliates; and 
 (d) no Material Adverse Change shall have occurred. 
  

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 3.4 Intentionally Omitted. 
 3.5 Term. This Agreement shall become effective upon the execution and delivery hereof by Borrowers, Agent, and the Lenders and shall
continue in full force and effect for a term ending on September 27, 2009 (the “Maturity Date”). The foregoing notwithstanding, the Lender Group, upon the election of the Required Lenders, shall have the right to terminate its
obligations under this Agreement immediately and without notice upon the occurrence and during the continuation of an Event of Default. 
 3.6 Effect of Termination. On the date of termination of this Agreement, all Obligations (including contingent reimbursement obligations of Borrowers with respect to any outstanding Letters of Credit)
immediately shall become due and payable without notice or demand (including either (i) providing cash collateral to be held by Agent for the benefit of those Lenders with a Commitment in an amount equal to 105% of the then extant Letter of
Credit Usage, or (ii) causing the original Letters of Credit to be returned to the Issuing Lender). No termination of this Agreement, however, shall relieve or discharge Borrowers of their duties, Obligations, or covenants hereunder and the
Agent’s Liens in the Collateral shall remain in effect until all Obligations have been fully and finally discharged and the Lender Group’s obligations to provide additional credit hereunder have been terminated. When this Agreement has
been terminated and all of the Obligations have been fully and finally discharged and the Lender Group’s obligations to provide additional credit under the Loan Documents have been terminated irrevocably, Agent will, at Borrowers’ sole
expense, execute and deliver any UCC termination statements, lien releases, mortgage releases, re-assignments of trademarks, discharges of security interests, and other similar discharge or release documents (and, if applicable, in recordable form)
as are reasonably necessary to release, as of record, the Agent’s Liens and all notices of security interests and liens previously filed by Agent with respect to the Obligations. 
 3.7 Early Termination by Borrowers. Borrowers have the option, at any time upon 90 days prior written notice by
Administrative Borrower to Agent, to terminate this Agreement by paying to Agent, for the benefit of the Lender Group, in cash, the Obligations (including either (i) providing cash collateral to be held by Agent for the benefit of those Lenders
with a Commitment in an amount equal to 105% of the then extant Letter of Credit Usage, or (ii) causing the original Letters of Credit to be returned to the Issuing Lender), in full, together with the Applicable Prepayment Premium (to be
allocated based upon letter agreements between Agent and individual Lenders). If Administrative Borrower has sent a notice of termination pursuant to the provisions of this Section, then the Commitments shall terminate and Borrowers shall be
obligated to repay the Obligations (including either (i) providing cash collateral to be held by Agent for the benefit of those Lenders with a Commitment in an amount equal to 105% of the then extant Letter of Credit Usage, or (ii) causing
the original Letters of Credit to be returned to the Issuing Lender), in full, together with the Applicable Prepayment Premium, on the date set forth as the date of termination of this Agreement in such notice. In the event of the termination of
this Agreement and repayment of the Obligations at any time prior to the Maturity Date, for any other reason, including (a) termination upon the election of the Required Lenders to terminate after the 

  

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occurrence of an Event of Default, (b) foreclosure and sale of Collateral, (c) sale of the Collateral in any Insolvency Proceeding, or
(iv) restructure, reorganization or compromise of the Obligations by the confirmation of a plan of reorganization, or any other plan of compromise, restructure, or arrangement in any Insolvency Proceeding, then, in view of the impracticability
and extreme difficulty of ascertaining the actual amount of damages to the Lender Group or profits lost by the Lender Group as a result of such early termination, and by mutual agreement of the parties as to a reasonable estimation and calculation
of the lost profits or damages of the Lender Group, Borrowers shall pay the Applicable Prepayment Premium to Agent (to be allocated based upon letter agreements between Agent and individual Lenders), measured as of the date of such termination.

 3.8 Effect of this Amendment and Restatement. Upon this Agreement becoming effective pursuant to
Section 3.1: 
 (a) the terms and conditions of the Prior Loan Agreement shall be amended as set forth herein and, as so amended, shall
be restated in their entirety, but only with respect to the rights, duties and obligations between Borrowers and the members of the Lender Group accruing from and after the Closing Date; 
 (b) this Agreement shall not in any way release or impair the rights, duties or obligations created pursuant to the Prior Loan Agreement and any other
Loan Document (as defined in the Prior Loan Agreement) or affect the relative priorities thereof, in each case to the extent in force and effect thereunder as of the Closing Date and except as modified hereby or by documents, instruments and
agreements executed and delivered in connection herewith, and all such rights, duties and obligations are assumed, ratified and affirmed by Borrowers; 
 (c) (i) the Obligations represent, among other things, the amendment, restatement, renewal, extension, consolidation and modification of the Obligations (as defined in the Prior Loan Agreement) arising in
connection with the Prior Loan Agreement and the other Loan Documents (as defined in the Prior Loan Agreement) executed in connection therewith; (ii) Borrowers, Agent and the Lenders intend that the Prior Loan Agreement and the other Loan
Documents (as defined in the Prior Loan Agreement) executed in connection therewith and the collateral pledged thereunder shall secure, without interruption or impairment of any kind, all existing Obligations (as defined in the Prior Loan Agreement)
under the Prior Loan Agreement and the other Loan Documents (as defined in the Prior Loan Agreement) executed in connection therewith as amended, restated, renewed, extended, consolidated and modified hereunder, together with all other Obligations
hereunder; (iii) all Liens (as defined in the Prior Loan Agreement) evidenced by the Prior Loan Agreement and the other Loan Documents (as defined in the Prior Loan Agreement) executed in connection therewith are hereby ratified, confirmed and
continued; (iv) this Agreement is intended to restate, renew, extend, consolidate, amend and modify the Prior Loan Agreement; and (v) the Loan Documents (as defined in the Prior Loan Agreement) (other than the Prior Loan Agreement which
shall be restated, renewed, extended, consolidated, amended and modified as set forth herein) shall remain extant and in full force and effect (except to the extent amended and modified as of the date hereof); 
 (d) all indemnification obligations of Borrowers under the Prior Loan Agreement and any other Loan Documents (as defined in the Prior Loan Agreement)
shall, to the 

  

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extent therein expressly provided, survive the execution and delivery of this Agreement and shall so continue in full force and effect for the benefit of the
members of the Lender Group and any other Person indemnified under the Prior Loan Agreement or any other Loan Document (as defined in the Prior Loan Agreement) at any time prior to the Closing Date; 
 (e) any and all references to the Prior Loan Agreement (including, without limitation, in any other Loan Document) shall, without further action of the
parties, be deemed a reference to the Prior Loan Agreement, as amended and restated by this Agreement, and as this Agreement may be further amended, restated, supplemented or otherwise modified from time to time hereafter; and 
 (f) the interest, fees, expenses and other amounts accrued under the Prior Loan Agreement as of the Closing Date shall be due and payable on the Closing
Date to Agent, in its capacity as administrative agent under the Prior Loan Agreement and on behalf of the Lenders (as defined in the Prior Loan Agreement) and not shared pro rata with any other Lenders in their capacity as a Lender under this
Agreement after the Closing Date. 
 4. CREATION OF SECURITY INTEREST. 
 4.1 Grant of Security Interest. Each Borrower hereby grants to Agent, for the benefit of the Lender Group, a continuing
security interest in all of its right, title, and interest in all currently existing and hereafter acquired or arising Personal Property Collateral in order to secure prompt repayment of any and all of the Obligations in accordance with the terms
and conditions of the Loan Documents and in order to secure prompt performance by Borrowers of each of their covenants and duties under the Loan Documents. The Agent’s Liens in and to the Personal Property Collateral shall attach to all
Personal Property Collateral without further act on the part of Agent or Borrowers. Anything contained in this Agreement or any other Loan Document to the contrary notwithstanding, except for Permitted Dispositions, Borrowers have no authority,
express or implied, to dispose of any item or portion of the Collateral. 
 4.2 Negotiable Collateral. In the
event that any Collateral, including proceeds, is evidenced by or consists of Negotiable Collateral, and if and to the extent that perfection or priority of Agent’s security interest is dependent on or enhanced by possession, the applicable
Borrower, immediately upon the request of Agent, shall endorse and deliver physical possession of such Negotiable Collateral to Agent. 
 4.3 Collection of Accounts, General Intangibles, and Negotiable Collateral. At any time after the occurrence and during the continuation of an Event of Default, Agent or Agent’s designee may
(a) notify Account Debtors of Borrowers that the Accounts, chattel paper, or General Intangibles have been assigned to Agent or that Agent has a security interest therein, or (b) collect the Accounts, chattel paper, or General Intangibles
directly and charge the collection costs and expenses to the Loan Account. Each Borrower agrees that it will hold in trust for the Lender Group, as the Lender Group’s trustee, Collections of any Borrower that such Borrower receives and
immediately will deliver said Collections to Agent or a Cash Management Bank in their original form as received by the applicable Borrower. 
  

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 4.4 Delivery of Additional Documentation Required; Authorization to File UCC
Financing Statements. Each Borrower authorizes Agent to file, transmit, or communicate, as applicable, UCC financing statements, in-lieu financing statements and amendments describing the Collateral as “all personal property of
Borrowers” or words of similar effect, in order to perfect the Agent’s Liens on the Collateral without such Borrower’s signature to the extent permitted by applicable law. Notwithstanding the foregoing, at any time upon the request of
Agent, Borrowers shall execute and deliver to Agent, any and all financing statements, original financing statements in lieu of continuation statements, fixture filings, security agreements, pledges, assignments, endorsements of certificates of
title, and all other documents (the “Additional Documents”) upon which any Borrower’s signature may be required and that Agent may request in its Permitted Discretion, in form and substance satisfactory to Agent, to perfect and
continue perfected or better perfect the Agent’s Liens in the Collateral (whether now owned or hereafter arising or acquired), to create and perfect Liens in favor of Agent in any Real Property acquired after the Closing Date, and in order to
fully consummate all of the transactions contemplated hereby and under the other Loan Documents. To the maximum extent permitted by applicable law, each Borrower authorizes Agent to execute any such Additional Documents in the applicable
Borrower’s name and authorize Agent to file such executed Additional Documents in any appropriate filing office. No Borrower shall terminate, amend or file a correction statement with respect to any UCC financing statement filed pursuant to
this Section 4 without Agent’s prior written consent. In addition, on such periodic basis as Agent shall require, Borrowers shall (a) provide Agent with a report of all new patentable, copyrightable, or trademarkable materials
acquired or generated by Borrowers during the prior period, and (b) cause to be prepared, executed, and delivered to Agent supplemental schedules to the applicable Loan Documents to identify such patents, copyrights, and trademarks as being
subject to the security interests created thereunder. In addition, Borrowers agree that, upon acquiring any interest in a commercial tort claim such Borrower shall, in writing, describe the details of such claim and assign an interest thereto to
Agent, and upon acquiring any chattel paper after the date hereof (electronic, tangible or otherwise), such Borrower shall assign to Agent a security interest in such chattel paper, or if applicable, deliver such chattel paper to Agent as Collateral
hereunder. 
 4.5 Power of Attorney. Each Borrower hereby irrevocably makes, constitutes, and appoints Agent
(and any of Agent’s officers, employees, or agents designated by Agent) as such Borrower’s true and lawful attorney, with power to (a) if such Borrower refuses to, or fails timely to execute and deliver any of the documents described
in Section 4.4, sign the name of such Borrower on any of the documents described in Section 4.4, (b) at any time that an Event of Default has occurred and is continuing, sign such Borrower’s name on any invoice or
bill of lading relating to the Collateral, drafts against Account Debtors, or notices to Account Debtors, (c) send requests for verification of Accounts, (d) endorse such Borrower’s name on any Collection item that may come into the
Lender Group’s possession, (e) at any time that an Event of 

  

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Default has occurred and is continuing, make, settle, and adjust all claims under such Borrower’s policies of insurance and make all determinations and
decisions with respect to such policies of insurance, and (f) at any time that an Event of Default has occurred and is continuing, settle and adjust disputes and claims respecting the Accounts, chattel paper, or General Intangibles directly
with Account Debtors, for amounts and upon terms that Agent determines to be reasonable, and Agent may cause to be executed and delivered any documents and releases that Agent determines to be necessary. The appointment of Agent as each
Borrower’s attorney, and each and every one of its rights and powers, being coupled with an interest, is irrevocable until all of the Obligations have been fully and finally repaid and performed and the Lender Group’s obligations to extend
credit hereunder are terminated. 
 4.6 Right to Inspect. Agent and each Lender (through any of their respective
officers, employees, or agents) shall have the right, from time to time and during normal business hours, to inspect the Books and to check, test, and appraise the Collateral in order to verify Borrowers’ financial condition or the amount,
quality, value, condition of, or any other matter relating to, the Collateral. Borrower shall allow Agent to conduct Inventory appraisals, at Agent’s option, one time each quarter, and shall provide Agent with Real Property appraisals and Phase
I environmental reports upon request, but absent the occurrence of an Event of Default, not more frequently than once every 2 years, in form and substance satisfactory to Agent. 
 4.7 Control Agreements. Each Borrower agrees that it will not transfer assets out of any Securities Accounts other than as
permitted under Section 7.19 and, if to another securities intermediary, unless each of the applicable Borrower, Agent, and the substitute securities intermediary have entered into a Control Agreement. No arrangement contemplated hereby
or by any Control Agreement in respect of any Securities Accounts or other Investment Property shall be modified by Borrowers without the prior written consent of Agent. Upon the occurrence and during the continuance of an Event of Default, Agent
may notify any securities intermediary to liquidate the applicable Securities Account or any related Investment Property maintained or held thereby and remit the proceeds thereof to the Agent’s Account. 
 5. REPRESENTATIONS AND WARRANTIES. 
 In order to
induce the Lender Group to enter into this Agreement, each Borrower makes the following representations and warranties to the Lender Group which shall be true, correct, and complete, in all material respects, as of the date hereof, and shall be
true, correct, and complete, in all material respects, as of the Closing Date, and at and as of the date of the making of each Advance (or other extension of credit) made thereafter, as though made on and as of the date of such Advance (or other
extension of credit) (except to the extent that such representations and warranties relate solely to an earlier date) and such representations and warranties shall survive the execution and delivery of this Agreement: 
 5.1 No Encumbrances. Each Borrower has good and indefeasible title to its Collateral and the Real Property, free and clear
of Liens except for Permitted Liens. 
 5.2 Eligible Accounts. The Eligible Accounts are bona fide existing
payment obligations of Account Debtors created by the sale and delivery of Inventory or the rendition of services to such Account Debtors in the ordinary course of Borrowers’ business, owed to 

  

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Borrowers without defenses, disputes, offsets, counterclaims, or rights of return or cancellation. As to each Account that is included as an Eligible Account
on a Borrowing Base Certificate, such Account meets all of the requirements of an Eligible Account. 
 5.3 Eligible
Inventory. All Eligible Inventory is of good and merchantable quality, free from defects. As to each item of Inventory that is included as Eligible Inventory on a Borrowing Base Certificate, such Inventory meets all of the requirements for
Eligible Inventory. 
 5.4 Equipment. All of the Equipment is used or held for use in Borrowers’ business
and is fit for such purposes. 
 5.5 Location of Inventory and Equipment. Except as disclosed on Schedule
5.5, the Inventory and Equipment are not stored with a bailee, warehouseman, or similar party and are located only at the locations in the U.S. identified on Schedule 5.5. 
 5.6 Inventory Records. Each Borrower keeps correct and accurate records itemizing and describing the type, quality, and
quantity of its Inventory and the book value thereof. 
 5.7 Location of Chief Executive Office; FEIN. The chief
executive office of each Borrower is located at the address indicated in Schedule 5.7 and each Borrower’s FEIN and organizational identification number issued by such Borrower’s state of formation or incorporation is identified in
Schedule 5.7. 
 5.8 Due Organization and Qualification; Subsidiaries 
 (a) Each Borrower is duly organized and existing and in good standing under the laws of the jurisdiction of its organization and qualified to do business
in any state where the failure to be so qualified reasonably could be expected to have a Material Adverse Change. 
 (b) Set forth on
Schedule 5.8(b), is a complete and accurate description of the authorized Stock of each Borrower, by class, and, as of the Closing Date, a description of the number of shares of each such class that are issued and outstanding. Other than as
described on Schedule 5.8(b), there are no subscriptions, options, warrants, or calls relating to any shares of each Borrower’s Stock, including any right of conversion or exchange under any outstanding security or other instrument. No
Borrower is subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of its Stock or any security convertible into or exchangeable for any of its Stock. 
 (c) Set forth on Schedule 5.8(c), is a complete and accurate list of each Borrower’s direct and indirect Subsidiaries, showing: (i) the
jurisdiction of their organization; (ii) the number of shares of each class of common and preferred Stock authorized for each of such Subsidiaries; and (iii) the number and the percentage of the outstanding shares of each such class owned
directly or indirectly by the applicable Borrower. All of the outstanding Stock of each such Subsidiary has been validly issued and is fully paid and non-assessable. 
 (d) Except as set forth on Schedule 5.8(c), there are no subscriptions, options, warrants, or calls relating to any shares of any Borrower’s Subsidiaries’ Stock, including any 

  

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right of conversion or exchange under any outstanding security or other instrument. No Borrower or any of its respective Subsidiaries is subject to any
obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of any Borrower’s Subsidiaries’ Stock or any security convertible into or exchangeable for any such Stock. 
 5.9 Due Authorization; No Conflict. 
 (a) As to each Borrower, the execution, delivery, and performance by such Borrower of this Agreement and the Loan Documents to which it is a party have been duly authorized by all necessary action on the part of such
Borrower. 
 (b) As to each Borrower, the execution, delivery, and performance by such Borrower of this Agreement and the Loan Documents to
which it is a party do not and will not (i) violate any provision of federal, state, or local law or regulation applicable to any Borrower, the Governing Documents of any Borrower, or any order, judgment, or decree of any court or other
Governmental Authority binding on any Borrower, (ii) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any material contractual obligation of any Borrower, (iii) result in or
require the creation or imposition of any Lien of any nature whatsoever upon any properties or assets of Borrower, other than Permitted Liens, or (iv) except as set forth on Schedule 5.9, require any approval of any Borrower’s
interestholders or any approval or consent of any Person under any material contractual obligation of any Borrower. 
 (c) Other than the
filing of financing statements, fixture filings, and Mortgages (if any), the execution, delivery, and performance by each Borrower of this Agreement and the Loan Documents to which such Borrower is a party do not and will not require any
registration with, consent, or approval of, or notice to, or other action with or by, any Governmental Authority or other Person, except such consents, registrations or other similar filings as may be required in connection with the pledge of Stock
of Foreign Subsidiaries. 
 (d) As to each Borrower, this Agreement and the other Loan Documents to which such Borrower is a party, and all
other documents contemplated hereby and thereby, when executed and delivered by such Borrower will be the legally valid and binding obligations of such Borrower, enforceable against such Borrower in accordance with their respective terms, except as
enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors’ rights generally. 
 (e) The Agent’s Liens are validly created, perfected, and first priority Liens, subject only to Permitted Liens. 
 5.10 Litigation. Other than those matters disclosed on Schedule 5.10, there are no actions, suits, or proceedings
pending or, to the best knowledge of Borrowers, threatened against Borrowers, or any of their Subsidiaries, as applicable, except for (a) matters that are fully covered by insurance (subject to customary deductibles), and (b) matters
arising after the Closing Date that, if decided adversely to Borrowers, or any of their Subsidiaries, as applicable, reasonably could not be expected to result in a Material Adverse Change. 
  

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 5.11 No Material Adverse Change. All financial statements relating to
Borrowers that have been delivered by Borrowers to the Lender Group have been prepared in accordance with GAAP (except, in the case of unaudited financial statements, for the lack of footnotes and being subject to year-end audit adjustments) and
present fairly in all material respects, Borrowers’ financial condition as of the date thereof and results of operations for the period then ended. There has not been a Material Adverse Change with respect to Borrowers since the date of the
latest financial statements submitted to the Lender Group on or before the Closing Date. 
 5.12 Fraudulent
Transfer. 
 (a) Each Borrower is Solvent (except for CellStar International Corporation/SA, a Delaware corporation, and CellStar
International Corporation/Asia, a Delaware corporation). 
 (b) No transfer of property is being made by any Borrower and no obligation is
being incurred by any Borrower in connection with the transactions contemplated by this Agreement or the other Loan Documents with the intent to hinder, delay, or defraud either present or future creditors of Borrowers. 
 5.13 Employee Benefits. None of Borrowers, any of their Subsidiaries or any of their ERISA Affiliates maintains or
contributes to any Benefit Plan. 
 5.14 Environmental Condition. Except as set forth on Schedule 5.14,
(a) to Borrowers’ knowledge, none of Borrowers’ owned properties or assets has ever been used by Borrowers or by previous owners or operators in the disposal of, or to produce, store, handle, treat, release, or transport, any
Hazardous Materials, where such production, storage, handling, treatment, release or transport was in violation, in any material respect, of applicable Environmental Law, (b) to Borrowers’ knowledge, none of Borrowers’ properties or
assets has ever been designated or identified in any manner pursuant to any Environmental Law as a Hazardous Materials disposal site, (c) none of Borrowers have received notice that a Lien arising under any Environmental Law has attached to any
revenues or to any Real Property owned or operated by Borrowers, and (d) none of Borrowers have received a summons, citation, notice, or directive from the Environmental Protection Agency or any other federal or state governmental agency
concerning any action or omission by any Borrower resulting in the releasing or disposing of Hazardous Materials into the environment. 
 5.15 Brokerage Fees. Except for the services described in the engagement letter dated as of May 19, 2005, as amended, with Raymond James & Associates, Inc., Borrowers have not utilized the
services of any broker or finder in connection with Borrowers’ obtaining financing from the Lender Group under this Agreement and no brokerage commission or finders fee is payable by Borrowers in connection herewith. 
 5.16 Intellectual Property. Each Borrower owns, or holds licenses in, all trademarks, trade names, copyrights, patents,
patent rights, and licenses that are necessary to the conduct of its business as currently conducted. Attached hereto as Schedule 5.16 is a 

  

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true, correct, and complete listing of all material patents, patent applications, trademarks, trademark applications, copyrights, and copyright registrations
as to which each Borrower is the owner or is an exclusive licensee. 
 5.17 Leases. Borrowers enjoy peaceful and
undisturbed possession under all leases material to the business of Borrowers and to which Borrowers are a party or under which Borrowers are operating. All of such leases are valid and subsisting and no material default by Borrowers exists under
any of them. 
 5.18 DDAs. Set forth on Schedule 5.18 are all of the DDAs of each Borrower, including,
with respect to each depository (i) the name and address of that depository, and (ii) the account numbers of the accounts maintained with such depository. 
 5.19 Complete Disclosure. All factual information (taken as a whole) furnished by or on behalf of Borrowers in writing to
Agent or any Lender (including all information contained in the Schedules hereto or in the other Loan Documents) for purposes of or in connection with this Agreement, the other Loan Documents or any transaction contemplated herein or therein is, and
all other such factual information (taken as a whole) hereafter furnished by or on behalf of Borrowers in writing to the Agent or any Lender will be, true and accurate in all material respects on the date as of which such information is dated or
certified and not incomplete by omitting to state any fact necessary to make such information (taken as a whole) not misleading in any material respect at such time in light of the circumstances under which such information was provided. On the
Closing Date, the Closing Date Projections represent, and as of the date on which any other Projections are delivered to Agent, such additional Projections represent Borrowers’ good faith best estimate of its future performance for the periods
covered thereby. 
 5.20 Indebtedness. Set forth on Schedule 5.20 is a true and complete list of all
Indebtedness of Parent and each of its Subsidiaries outstanding immediately prior to the Closing Date that is to remain outstanding after the Closing Date and such Schedule accurately reflects the aggregate principal amount of such Indebtedness and
the principal terms thereof. 
 5.21 Management Agreements. Set forth on Schedule 5.21 is a true and
complete list of all Management Agreements of any Borrower in effect as of the Closing Date. 
 6. AFFIRMATIVE COVENANTS. 
 Each Borrower covenants and agrees that, so long as any credit hereunder shall be available and until full and final payment of the Obligations, Borrowers
shall and shall cause each of their respective Subsidiaries to do all of the following: 
 6.1 Accounting
System. Maintain a system of accounting that enables Administrative Borrower to produce financial statements in accordance with GAAP and maintain records pertaining to the Collateral that contain information as from time to time reasonably
may be requested by Agent. Borrowers also shall keep an inventory reporting system that shows all additions, sales, claims, returns, and allowances with respect to the Inventory. 
  

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 6.2 Collateral Reporting. Provide Agent (and if so requested by Agent, with
copies for each Lender) with the following documents at the following times in form satisfactory to Agent: 
  

			
	Weekly	  	(a) summary agings of Accounts (including, without limitation, the Miami, Florida based Accounts owed to Borrowers by non-U.S. Account Debtors), and
		
		  	(b) a list of the top 10 customers, with total Account balances and summary agings of such Account balances, and
		
		  	(c) Inventory reports specifying each Borrower’s cost of its Inventory, by category.
		
	Monthly (not later than the 15th day of each month)	  	(d) a sales journal, collection journal, and credit register since the last such schedule and calculation of the Borrowing Base as of such date, including Asurion and Dobson,
and
		
		  	(e) a detailed calculation of the Borrowing Base (including detail regarding those Accounts that are not Eligible Accounts), and
		
		  	(f) a summary aging, by vendor, of Borrowers’ accounts payable and any book overdraft, and
		
		  	(g) a calculation of Dilution for the prior month.
		
	Quarterly	  	(h) a detailed list of each Borrower’s customers, and
		
		  	(i) a report regarding each Borrower’s accrued, but unpaid, ad valorem taxes.
		
	Upon request by Agent	  	(j) copies of invoices in connection with the Accounts, credit memos, remittance advices, deposit slips, shipping and delivery documents in connection with the Accounts and, for Inventory and
Equipment acquired by Borrowers, purchase orders and invoices, and
		
		  	(k) such other reports as to the Collateral, or the financial condition of Borrowers as Agent may request.

 If Excess Availability is less than $10,000,000 at any time, Agent may request, and Borrowers
shall implement, the Collateral reporting described in this Section more frequently than as set forth above, including, without limitation, certain daily reporting requirements. 
  

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 6.3 Financial Statements, Reports, Certificates. Deliver to Agent, with
copies to each Lender: 
 (a) as soon as available, but in any event within 45 days (60 days in the case of a month that is the end of one of
the first 3 fiscal quarters in a fiscal year) after the end of each month during each of Parent’s fiscal years, 
 (i) a
company prepared balance sheet and income statement, covering operations during such period, on both a consolidated and consolidating basis for Parent, its Subsidiaries and the Domestic Business Unit, in form and substance reasonably satisfactory to
Agent, 
 (ii) a company prepared statement of cash flow, covering operations on a year to date basis, on a consolidated basis
for Parent in form and substance reasonably satisfactory to Agent, 
 (iii) a certificate signed by the chief executive
officer, president, chief financial officer, treasurer or controller of Administrative Borrower to the effect that: 
 A. the
financial statements delivered hereunder have been prepared in accordance with GAAP (except for the lack of footnotes and being subject to year-end audit adjustments) and fairly present in all material respects the financial condition of Parent and
its Subsidiaries, 
 B. the representations and warranties of Borrowers contained in this Agreement and the other Loan
Documents are true and correct in all material respects on and as of the date of such certificate, as though made on and as of such date (except to the extent that such representations and warranties relate solely to an earlier date), and

 C. there does not exist any condition or event that constitutes a Default or Event of Default (or, to the extent of any
non-compliance, describing such non-compliance as to which he or she may have knowledge and what action Borrowers have taken, are taking, or propose to take with respect thereto), and 
 (iv) for each month that is the date on which a financial covenant in Section 7.20 is to be tested, a Compliance Certificate
demonstrating, in reasonable detail, compliance at the end of such period with the applicable financial covenants contained in Section 7.20, and 
 (b) as soon as available, but in any event within 120 days after the end of each of Parent’s fiscal years, financial statements of Parent and its Subsidiaries for each such fiscal year, audited by independent
certified public accountants reasonably acceptable to Agent and 

  

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certified, without any qualifications, by such accountants to have been prepared in accordance with GAAP (such audited financial statements to include a
balance sheet, income statement, and statement of cash flow and, if prepared, such accountants’ letter to management), 
 (c) as soon as
available, but in any event at least 30 days prior to the start of each of Parent’s fiscal years, 
 (i) copies of
Projections, in form and substance (including as to scope and underlying assumptions) satisfactory to Agent, in its sole discretion, for the forthcoming 3 years, year by year, and for the forthcoming fiscal year, month by month, for the Parent and
the Domestic Business Unit, in each case certified by the chief executive officer, president, chief financial officer, treasurer or controller of Administrative Borrower as being such officer’s good faith best estimate of the financial
performance of Parent and its Subsidiaries during the period covered thereby, 
 (d) if and when filed by any Borrower, within five days of
such filing, 
 (i) 10-Q quarterly reports, Form 10-K annual reports, and Form 8-K current reports, 
 (ii) any other filings made by any Borrower with the SEC, 
 (iii) copies of Borrowers’ federal income tax returns, and any amendments thereto, filed with the Internal Revenue Service, and

 (iv) any other information that is provided by Parent to its shareholders generally, 
 (e) if and when filed by any Borrower and as requested by Agent, within five days of the later of the filing or such request, satisfactory evidence of
payment of applicable excise taxes in each jurisdictions in which (i) any Borrower conducts business or is required to pay any such excise tax, (ii) where any Borrower’s failure to pay any such applicable excise tax would result in a
Lien on the properties or assets of any Borrower, or (iii) where any Borrower’s failure to pay any such applicable excise tax reasonably could be expected to result in a Material Adverse Change, 
 (f) as soon as a Borrower has knowledge of any event or condition that constitutes a Default or an Event of Default, notice thereof and a statement of
the curative action that Borrowers propose to take with respect thereto, 
 (g) promptly upon any Borrower obtaining knowledge thereof,
notice of any price decrease (without consideration of price protection agreements) established by any Material Vendor, affecting the value of Eligible Inventory included in the Borrowing Base by more than 5%, 
  

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 (h) promptly upon the Parent obtaining knowledge or notice thereof, notice of any demand for payment
pursuant to the Parent’s guarantee of trade payables and real property operating leases of any Foreign Subsidiary, 
 (i) promptly upon
the Parent obtaining knowledge or notice thereof, notice of any default, event of default, or request for payment from Parent pursuant to any Permitted Foreign Subsidiary Credit Facility that Parent has guaranteed, and 
 (j) upon the request of Agent, any other report reasonably requested relating to the financial condition of Borrowers. 
 In addition to the financial statements referred to above, Borrowers agree to deliver financial statements prepared on both a consolidated and
consolidating basis and that no Borrower, or any Subsidiary of a Borrower, will have a fiscal year different from that of Parent, other than certain Foreign Subsidiaries, but only to the extent such Foreign Subsidiary’s jurisdiction of
organization requires a different fiscal year by law. Borrowers agree that their independent certified public accountants are authorized to communicate with Agent and to release to Agent whatever financial information concerning Borrowers that Agent
reasonably may request, provided, however, that Administrative Borrower will be provided with reasonable notice of the time and place for such communication and have the opportunity to be present during such communication. Each
Borrower waives the right to assert a confidential relationship, if any, it may have with any accounting firm or service bureau in connection with any information requested by Agent pursuant to or in accordance with this Agreement, and agree that
Agent may contact directly any such accounting firm or service bureau in order to obtain such information. 
 6.4
Intentionally Omitted. 
 6.5 Return. Cause returns and allowances as between Borrowers and
their Account Debtors, to be on the same basis and in accordance with the usual customary practices of the applicable Borrower, as they exist at the time of the execution and delivery of this Agreement. 
 6.6 Maintenance of Properties. Maintain and preserve all of its properties which are necessary or useful in the proper
conduct to its business in good working order and condition, ordinary wear and tear excepted, and comply at all times with the provisions of all leases to which it is a party as lessee, so as to prevent any loss or forfeiture thereof or thereunder.

 6.7 Taxes. Cause all assessments and taxes, whether real, personal, or otherwise, due or payable by, or
imposed, levied, or assessed against Borrowers or any of their assets to be paid in full, before delinquency or before the expiration of any extension period, except to the extent that the validity of such assessment or tax shall be the subject of a
Permitted Protest. Borrowers will make timely payment or deposit of all tax payments and withholding taxes required of it by applicable laws, including those laws concerning F.I.C.A., F.U.T.A., state disability, and local, state, and federal income
taxes, and will, upon request, furnish Agent with proof satisfactory to Agent indicating that the applicable Borrower has made such payments or deposits. Borrowers shall deliver satisfactory evidence of payment of applicable excise taxes in each
jurisdictions in which any Borrower is required to pay any such excise tax. 
  

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 6.8 Insurance. 
 (a) At Borrowers’ expense, maintain insurance respecting its property and assets wherever located, covering loss or damage by fire, theft, explosion,
and all other hazards and risks as ordinarily are insured against by other Persons engaged in the same or similar businesses. Borrowers also shall maintain business interruption, public liability, and product liability insurance, as well as
insurance against larceny, embezzlement, and criminal misappropriation. All such policies of insurance shall be in such amounts and with such insurance companies as are reasonably satisfactory to Agent. Borrowers shall deliver copies of all such
policies to Agent with a satisfactory lender’s loss payable endorsement naming Agent as loss payee as its interest may appear or additional insured, as appropriate. Each policy of insurance or endorsement shall contain a clause requiring the
insurer to give not less than 30 days prior written notice to Agent in the event of cancellation of the policy for any reason whatsoever. 
 (b) Administrative Borrower shall give Agent prompt notice of any loss in excess of $100,000 covered by such insurance attributable to operations in the U.S. Agent shall have the exclusive right to adjust any losses payable under any such
insurance policies in excess of $250,000, without any liability to Borrowers whatsoever in respect of such adjustments. Any monies received as payment for any loss under any insurance policy mentioned above (other than liability insurance policies)
or as payment of any award or compensation for condemnation or taking by eminent domain, shall be paid over to Agent to be applied at the option of the Required Lenders either to the prepayment of the Obligations or shall be disbursed to
Administrative Borrower under staged payment terms reasonably satisfactory to the Required Lenders for application to the cost of repairs, replacements, or restorations. Any such repairs, replacements, or restorations shall be effected with
reasonable promptness and shall be of a value at least equal to the value of the items or property destroyed prior to such damage or destruction. 
 (c) Borrowers shall not take out separate insurance concurrent in form or contributing in the event of loss with that required to be maintained under this Section 6.8, unless Agent is included thereon as named insured with the
loss payable to Agent under a lender’s loss payable endorsement or its equivalent. Administrative Borrower immediately shall notify Agent whenever such separate insurance is taken out, specifying the insurer thereunder and full particulars as
to the policies evidencing the same, and copies of such policies promptly shall be provided to Agent. 
 6.9 Location of
Inventory and Equipment. Except for Inventory and Equipment with an aggregate market value less than $500,000 and Inventory and Equipment delivered to repair facilities in the normal course of business, keep the Inventory and Equipment only
at the locations identified on Schedule 5.5; provided, however, that Administrative Borrower may amend Schedule 5.5 so long as such amendment occurs by written notice to Agent not less than 30 days prior to the date on
which the Inventory or Equipment is moved to such new location, so long as such new location is within the continental United States, and so long as, at the time of such written notification, the applicable Borrower provides any financing statements
or fixture filings necessary to perfect and continue perfected the Agent’s Liens on such assets and also provides to Agent a Collateral Access Agreement. 
  

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 6.10 Compliance with Laws. Comply with the requirements of all applicable
laws, rules, regulations, and orders of any Governmental Authority, including the Fair Labor Standards Act and the Americans With Disabilities Act, other than laws, rules, regulations, and orders the non-compliance with which, individually or in the
aggregate, would not result in and reasonably could not be expected to result in a Material Adverse Change. 
 6.11
Leases. Pay when due all rents and other amounts payable under any leases to which any Borrower is a party or by which any Borrower’s properties and assets are bound, unless such payments are the subject of a Permitted Protest.

 6.12 Brokerage Commissions. Pay any and all brokerage commission or finders fees incurred in connection with
or as a result of Borrowers’ obtaining financing from the Lender Group under this Agreement. Borrowers agree and acknowledge that payment of all such brokerage commissions or finders fees shall be the sole responsibility of Borrowers, and each
Borrower agrees to indemnify, defend, and hold Agent and the Lender Group harmless from and against any claim of any broker or finder arising out of Borrowers’ obtaining financing from the Lender Group under this Agreement. 
 6.13 Existence. At all times preserve and keep in full force and effect each Borrower’s valid existence and good
standing and any rights and franchises material to Borrowers’ businesses. 
 6.14 Environmental.
(a) Keep any property either owned or operated by any Borrower free of any Environmental Liens or post bonds or other financial assurances sufficient to satisfy the obligations or liability evidenced by such Environmental Liens,
(b) comply, in all material respects, with Environmental Laws and provide to Agent documentation of such compliance which Agent reasonably requests, (c) promptly notify Agent of any release of a Hazardous Material of any reportable
quantity under Environmental Laws from or onto property owned or operated by any Borrower and take any Remedial Actions required to abate said release or otherwise to come into compliance with applicable Environmental Law, and (d) promptly
provide Agent with written notice within 10 days of the receipt of any of the following: (i) notice that an Environmental Lien has been filed against any of the real or personal property of any Borrower, (ii) commencement of any
Environmental Action or notice that an Environmental Action will be filed against any Borrower, and (iii) notice of a violation, citation, or other administrative order which reasonably could be expected to result in a Material Adverse Change.

 6.15 Disclosure Updates. Promptly and in no event later than 5 Business Days after obtaining knowledge
thereof, (a) notify Agent if any written information, exhibit, or report furnished to the Lender Group contained any untrue statement of a material fact or omitted to state any material fact necessary to make the statements contained therein
not misleading in light of the circumstances in which made, and (b) correct any defect or error that may be discovered therein or in any Loan Document or in the execution, acknowledgement, filing, or recordation thereof. 
  

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 7. NEGATIVE COVENANTS. 
 Each Borrower covenants and agrees that, so long as any credit hereunder shall be available and until full and final payment of the Obligations, Borrowers will not and will not permit any of their respective
Subsidiaries to do any of the following: 
 7.1 Indebtedness. Create, incur, assume, permit, guarantee, or
otherwise become or remain, directly or indirectly, liable with respect to any Indebtedness, except: 
 (a) Indebtedness evidenced by this
Agreement and the other Loan Documents, together with Indebtedness owed to Underlying Issuers with respect to Underlying Letters of Credit; 
 (b) the Indebtedness set forth on Schedule 5.20; 
 (c) Permitted Purchase Money Indebtedness; 
 (d) refinancings, renewals, or extensions of Indebtedness permitted under clauses (b), (c) and (e) of this Section 7.1 (and
continuance or renewal of any Permitted Liens associated therewith) so long as: (i) the terms and conditions of such refinancings, renewals, or extensions do not, in Agent’s judgment, materially impair the prospects of repayment of the
Obligations by Borrowers or materially impair Borrowers’ creditworthiness, (ii) such refinancings, renewals, or extensions do not result in an increase in the principal amount of, interest payment on, or interest rate with respect to, the
Indebtedness so refinanced, renewed, or extended, (iii) such refinancings, renewals, or extensions do not result in a shortening of the average weighted maturity of the Indebtedness so refinanced, renewed, or extended, nor are they on terms or
conditions, that, taken as a whole, are materially more burdensome or restrictive to the applicable Borrower, and (iv) if the Indebtedness that is refinanced, renewed, or extended was subordinated in right of payment to the Obligations, then
the terms and conditions of the refinancing, renewal, or extension of such Indebtedness must include subordination terms and conditions that are at least as favorable to the Lender Group as those that were applicable to the refinanced, renewed, or
extended Indebtedness; 
 (e) (i) any Permitted Foreign Subsidiary Credit Facility, (ii) any accounts receivable factoring facility
entered into by CellStar Mexico for general working capital needs in an aggregate amount not exceeding $30,000,000 outstanding at any time; provided such factoring facility (x) is not guaranteed by any Borrower; provided, such factoring
facility may be guaranteed by a Borrower if such guaranty is unsecured and subject to a subordination agreement satisfactory to Agent, and (y) does not limit or prohibit the payment of any Management Fees to any Borrower, and (iii) any
accounts receivable factoring facility or other credit facility for the Miami, Florida based Accounts owed by non-U.S. Account Debtors entered into by CellStar Ltd. and/or National Auto Center, Inc. for general working capital needs; provided such
factoring facility or other credit facility (x) is not guaranteed by or with recourse (other than standard carve-outs for commercial disputes, delivery of non-conforming goods and similar exceptions) to any Borrower; provided, such factoring
facility may be guaranteed by or with recourse to a Borrower if such guaranty or other liability is unsecured and subject to a subordination agreement satisfactory to Agent, (y) does not limit or prohibit the payment of any Management Fees to
any Borrower, and (z) is on terms satisfactory to Agent; 
  

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 (f) Indebtedness permitted by Section 7.6; 
 (g) Indebtedness that constitutes a Permitted Affiliate Transaction; 
 (h) Customary, prudent and non-speculative Hedging Obligations entered into in the ordinary course of business for the purpose of protecting the Parent and its Subsidiaries against fluctuations in interests rates,
currency exchange rates and similar risks; and 
 (i) Customary and prudent insurance financing arrangements for the financing of insurance
premiums by third party insurance finance companies in the ordinary course of business, provided the aggregate Indebtedness outstanding in connection therewith shall not exceed $5,000,000 at any time. 
 7.2 Liens. Create, incur, assume, or permit to exist, directly or indirectly, any Lien on or with respect to any of its
assets, of any kind, whether now owned or hereafter acquired, or any income or profits therefrom, except for (a) Permitted Liens (including Liens that are replacements of Permitted Liens to the extent that the original Indebtedness is
refinanced, renewed, or extended under Section 7.1(d) and so long as the replacement Liens only encumber those assets that secured the refinanced, renewed, or extended Indebtedness) and (b) (i) Liens on the assets of any
Foreign Subsidiaries securing any Permitted Foreign Subsidiary Credit Facility, and (ii) Liens on accounts receivable of CellStar Mexico securing an accounts receivable factoring facility permitted by Section 7.1(e)(ii) hereof. 

7.3 Restrictions on Fundamental Changes. 
 (a) Enter into any merger, consolidation, reorganization, or recapitalization, or reclassify its Stock. 
 (b) Liquidate, wind up, or dissolve itself (or suffer any liquidation or dissolution). 
 (c) Convey, sell, lease, license, assign,
transfer, or otherwise dispose of, in one transaction or a series of transactions, all or any substantial part of its assets. 
 Notwithstanding the foregoing, so long as no Default or Event of Default exists or would result therefrom and the Agent receives at least 30 days prior written notice and delivery of any documentation requested to ensure the continued
perfection and priority of Agent’s Liens: 
 (i) any Borrower (other than Administrative Borrower) may merge or
consolidate with any other Borrower; 
 (ii) any Borrower may be dissolved or liquidated so long as such dissolution or
liquidation results in all assets of such Borrower being owned by another Borrower; and 
  

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 (iii) any Subsidiary that is not a Borrower hereunder and in which Agent does not have a
Stock pledge may be dissolved or liquidated, so long as such dissolution or liquidation results in all assets of such Subsidiary being owned by a Borrower or another Subsidiary in which Agent has a valid perfected first priority Lien in the Stock of
such transferee Subsidiary. 
 7.4 Disposal of Assets. Convey, sell, lease, license, assign, transfer, or
otherwise dispose of any of its assets other than (a) Permitted Dispositions, and (b) pursuant to a Permitted Affiliate Transaction. 
 7.5 Change Name. Change any Borrower’s name, FEIN, corporate structure or identity, or add any new fictitious name; provided, however, that a Borrower may change its name upon at least
30 days prior written notice by Administrative Borrower to Agent of such change and so long as, at the time of such written notification, such Borrower provides any financing statements or fixture filings necessary to perfect and continue perfected
Agent’s Liens. 
 7.6 Guarantee. Guarantee or otherwise become in any way liable with respect to the
obligations of any third Person except (a) as provided herein, (b) by endorsement of instruments or items of payment for deposit to the account of such Person or which are transmitted or turned over to Agent, (c) guarantees that
constitute a Permitted Affiliate Transaction, and (d) guarantees by Parent of the key executive employment agreements of any of its subsidiaries entered into in the ordinary course of business. 
 7.7 Nature of Business. Make any change in the principal nature of Borrowers’ business. 
 7.8 Prepayments and Amendments. 
 (a) Except in connection with a refinancing permitted by Section 7.1(d), prepay, redeem, defease, purchase, or otherwise acquire any Indebtedness of any Borrower or make any payment on the Existing
Subordinated Debt, other than (i) the Obligations in accordance with this Agreement, and (ii) payments and prepayments of principal and interest on the Existing Subordinated Debt provided that (A) no Default or Event of Default has
occurred or will be caused thereby and (B) not more than $2,400,000 from the proceeds of Advances available under Section 2.1(a)(v) or (w) shall be used for payments or prepayments of principal of the Existing Subordinated
Debt, and (iii) Indebtedness under Permitted Affiliate Transactions to the extent the repayment thereof is permitted by the Intercompany Subordination Agreement, and 
 (b) Except in connection with a refinancing permitted by Section 7.1(d), directly or indirectly, amend, modify, alter, increase, or change any of the terms or conditions of any agreement, instrument,
document, indenture, or other writing evidencing or concerning Indebtedness permitted under Sections 7.1(b) or (c). 
 7.9 Change of Control. Cause, permit, or suffer, directly or indirectly, any Change of Control. 
  

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 7.10 Consignments. Consign any Inventory or sell any Inventory on bill and
hold (without providing prior notice to Agent thereof), sale or return, sale on approval, or other conditional terms of sale, except for (a) Inventory with an aggregate market value, at any point in time, not in excess of $100,000, and
(b) the consignment by the Domestic Business Unit of Inventory consisting of accessories; provided, in the case of this clause (b), (i) the aggregate book value of all such accessory Inventory on consignment shall not exceed $5,000,000 at
any time, and (ii) prior to placing any such Inventory on consignment, the Agent shall have received a Collateral Access Agreement from the consignee, together with all applicable uniform commercial code notice filings and such other documents
and certificates as the Agent shall reasonably request. 
 7.11 Distributions. Other than distributions or
declaration and payment of dividends by a Borrower to another Borrower and payment of dividends by a Foreign Subsidiary to another Foreign Subsidiary that is a Loan Party, or to a Borrower, make any distribution or declare or pay any dividends (in
cash or other property, other than common Stock) on, or purchase, acquire, redeem, or retire any Stock, of any class, whether now or hereafter outstanding of such Person, except for the payment of Management Fees to Parent. 
 7.12 Accounting Methods. Modify or change its method of accounting (other than as may be required to conform to GAAP) or
enter into, modify, or terminate any agreement currently existing, or at any time hereafter entered into with any third party accounting firm or service bureau for the preparation or storage of Borrowers’ accounting records without said
accounting firm or service bureau agreeing to provide Agent information regarding the Collateral or Borrowers’ financial condition. 
 7.13 Investments. Directly or indirectly, make or acquire any Investment, or incur any liabilities (including contingent obligations) for or in connection with any Investment except for
(a) Permitted Investments; provided, however, that Borrowers shall not have Permitted Investments constituting Cash Equivalents (other than in the Cash Management Accounts) in excess of $1,000,000 outstanding at any one time unless the
applicable Borrower and the applicable securities intermediary or bank have entered into Control Agreements or similar arrangements governing such Permitted Investments, as Agent shall determine in its Permitted Discretion, to perfect (and further
establish) the Agent’s Liens in such Permitted Investments, (b) the ownership of the Stock of any Subsidiary or Foreign Affiliate owned on the Closing Date, (c) the ownership of the Stock of any wholly-owned Subsidiary created after
the Closing Date; provided, if such new Subsidiary is a Domestic Subsidiary at the time of its creation, it becomes a Borrower hereunder by executing an amendment to this Agreement assuming all Obligations hereunder and delivers to Agent all other
documentation necessary to grant Agent a first-priority perfected Lien on its assets and the parent of such new Subsidiary executes and delivers a Stock Pledge Agreement to Agent pledging the Stock of such new Subsidiary in favor of Agent, or, if
such new Subsidiary is a First Tier Foreign Subsidiary, at the time of its creation, Agent receives a pledge of 65% of such First Tier Foreign Subsidiary’s Stock, (d) Investments that constitute a Permitted Affiliate Transaction, and
(e) advances made by any Borrower or any Subsidiary of any Borrower to its respective officers and employees in the ordinary course of business not to exceed $100,000 in the aggregate outstanding at any time. 
  

 74 

 7.14 Transactions with Affiliates. Directly or indirectly enter into or
permit to exist any transaction with any Affiliate of any Borrower except for (a) transactions that are in the ordinary course of Borrowers’ or such Subsidiary’s business, upon fair and reasonable terms, that are fully disclosed to
Agent, and that are no less favorable to Borrowers or such Subsidiary than would be obtained in an arm’s length transaction with a non-Affiliate, or (b) Permitted Affiliate Transactions. Notwithstanding the foregoing, Borrowers shall not
sell Eligible Inventory with a value in excess of $2,000,000 in the aggregate in any month to Foreign Subsidiaries unless Borrowers (x) promptly notify Agent of the occurrence of such sale and the aggregate amount of the transaction, and
(y) promptly upon the occurrence of such transaction, deduct the aggregate amount of such Eligible Inventory sold, from the Borrowing Base. 
 7.15 Suspension. Suspend or go out of a substantial portion of its business except as permitted by Section 7.3 or in connection with a Permitted Disposition. 
 7.16 Intentionally Omitted. 
 7.17 Use of Proceeds. Use the proceeds of the Advances for any purpose other than (a) to repay, in full or in part, the outstanding principal, accrued interest, and accrued fees and expenses owing
with respect to the Existing Subordinated Debt, (b) to pay transactional fees, costs, and expenses incurred in connection with this Agreement, the other Loan Documents, and the transactions contemplated hereby and thereby and (c) other
uses consistent with the terms and conditions hereof, for its lawful and permitted purposes. Notwithstanding the foregoing, Borrowers shall not be permitted to use Advances to fund the repayment of the Existing Subordinated Debt unless the
Administrative Borrower shall have first delivered a Pay-Off Letter with respect to such repayment that is in form and substance satisfactory to the Agent; provided, however, not more than $2,400,000 from the proceeds of
Advances available under Section 2.1(a)(v) or (w) shall be used for payments or prepayments of principal of the Existing Subordinated Debt and such amounts shall only be available for such purpose after Borrowers shall have used all
availability created under Section 2.1(a)(x); provided, further, proceeds of Advances available under Section 2.1(a)(x) shall not be used for any purpose other than the payments or prepayments of principal of the
Existing Subordinated Debt. 
 7.18 Change in Location of Chief Executive Office; Inventory and Equipment with
Bailees. Relocate the chief executive office of any Borrower to a new location without Administrative Borrower providing 30 days prior written notification thereof to Agent and so long as, at the time of such written notification, the
applicable Borrower provides any financing statements or fixture filings necessary to perfect and continue perfected the Agent’s Liens and also provides to Agent a Collateral Access Agreement with respect to such new location. The Inventory and
Equipment shall not at any time now or hereafter be stored with a bailee, warehouseman, or similar party without Agent’s prior written consent. 
 7.19 Securities Accounts. Establish or maintain any Securities Account of a Borrower unless Agent shall have received a Control Agreement in respect of such Securities Account. Borrowers agree to not
transfer assets out of any Securities Account; provided, 

  

 75 

 
however, that, so long as no Event of Default has occurred and is continuing or would result therefrom, Borrowers may use such assets (and the
proceeds thereof) to the extent not prohibited by this Agreement. 
 7.20 Financial Covenants. 
 (a) Minimum EBITDA. Parent and its Subsidiaries, taken as a whole, shall not permit EBITDA, measured on a quarter-end basis, to be less than the
required amount set forth in the following table for the applicable period set forth opposite thereto: 
  

			
	 Applicable Amount
	  	 Applicable Period

	 $1,500,000
	  	For the one fiscal quarter period ending November 30, 2005
	 $1,100,000
	  	For the two fiscal quarter period ending February 28, 2006
	 $1,750,000
	  	For the three fiscal quarter period ending May 31, 2006
	 $5,400,000
	  	For the four fiscal quarter period ending August 31, 2006
	 $7,500,000
	  	For the four fiscal quarter period ending November 30, 2006
	 The greater of (i) 80% of the EBITDA contained in the Projections for such period or (ii)
$7,500,000
	  	For the four fiscal quarter period ending February 28, 2007 and each four fiscal quarter period ending thereafter

 (b) Fixed Charge Coverage Ratio. Parent and its Subsidiaries, taken as a whole, shall fail
to maintain a Fixed Charge Coverage Ratio of at least the required ratio set forth in the following table as of the last day of each fiscal quarter for the applicable period set forth opposite thereto: 
  

			
	 Required Ratio
	  	 Applicable Period

	 0.75:1.00
	  	For the one fiscal quarter period ending November 30, 2005
	 0.10:1.00
	  	For the two fiscal quarter period ending February 28, 2006

  

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	 Required Ratio
	  	 Applicable Period

	 0.10:1.00
	  	For the three fiscal quarter period ending May 31, 2006
	 0.90:1.00
	  	For the four fiscal quarter period ending August 31, 2006
	 1.40:1.00
	  	For the four fiscal quarter period ending November 30, 2006
	 The greater of (i) 80% of the Fixed Charge Coverage Ratio calculated for such period based on the
Projections or (ii) 1.40:1.00
	  	For the four fiscal quarter period ending February 28, 2007 and each four fiscal quarter period ending thereafter

 (c) Capital Expenditures. Make capital expenditures in any fiscal year in excess of the
amount set forth in the following table for the applicable period: 
  

			
	 Applicable Amount
	  	 Applicable Period

	 $3,000,000
	  	Fiscal Year 2005
	 $5,000,000
	  	Fiscal Year 2006
	 $7,000,000
	  	Each Fiscal Year thereafter

 7.21 Permitted Foreign Subsidiary Credit Facilities. Allow any
Foreign Subsidiary to enter into any credit facility that is not a Permitted Foreign Subsidiary Credit Facility. 
 8. EVENTS OF DEFAULT. 

Any one or more of the following events shall constitute an event of default (each, an “Event of Default”) under this Agreement:

 8.1 If Borrowers fail to pay when due and payable or when declared due and payable, all or any portion of the
Obligations (whether of principal, interest (including any interest which, but for the provisions of the Bankruptcy Code, would have accrued on such amounts), fees and charges due the Lender Group, reimbursement of Lender Group Expenses, or other
amounts constituting Obligations); provided, however, that in the case of Overadvances that are caused by the charging of interest, fees or Lender Group Expenses to the Loan Account, such event shall not cause an Event of Default if,
within 3 Business Days of incurring such Overadvance, Borrowers repay or otherwise eliminate such Overadvance; 
  

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 8.2 (a) If Borrowers fail to perform, keep, or observe any term, provision,
condition, covenant, or agreement contained in Sections 6.2 (Collateral Reporting), 6.3 (Financial Statements, Reports, Certificates), 6.5 (Returns), 6.9 (Location of Inventory and Equipment), or 6.10 (Compliance
with Laws), and such failure continues for a period of 3 Business Days; (b) Borrowers fail to perform, keep, or observe any term, provision, condition, covenant, or agreement contained in Sections 6.1 (Accounting System), 6.6
(Maintenance of Properties), or 6.11 (Leases), and such failure continues for a period of 10 Business Days; or (c) Borrowers fail to perform, keep, or observe any other term, provision, condition, covenant, or agreement contained in this
Agreement, in any of the Loan Documents, or in any other present or future agreement between Borrower and any member of the Lender Group; 
 8.3 If any material portion of any Loan Party’s assets is attached, seized, subjected to a writ or distress warrant, levied upon, or comes into the possession of any third Person; 
 8.4 If an Insolvency Proceeding is commenced by any Loan Party; 
 8.5 If an Insolvency Proceeding is commenced against any Loan Party, and any of the following events occur: (a) the applicable
Loan Party consents to the institution of the Insolvency Proceeding against it, (b) the petition commencing the Insolvency Proceeding is not timely controverted, (c) the petition commencing the Insolvency Proceeding is not dismissed within
60 calendar days of the date of the filing thereof; provided, however, that, during the pendency of such period, Agent (including any successor agent) and each other member of the Lender Group shall be relieved of their obligation to extend credit
hereunder, (d) an interim trustee is appointed to take possession of all or any substantial portion of the properties or assets of, or to operate all or any substantial portion of the business of, any Loan Party, or (e) an order for relief
shall have been entered therein; 
 8.6 If any Loan Party is enjoined, restrained, or in any way prevented by court
order from continuing to conduct all or any material part of its business affairs; 
 8.7 If a notice of Lien, levy, or
assessment in excess of (a) with respect to any Borrower, $1,000,000, and (b) with respect to any Loan Party that is a Foreign Subsidiary, $2,500,000, either individually, or in the aggregate, is filed of record with respect to any Loan
Party’s assets by the United States, or any department, agency, or instrumentality thereof, or by any state, county, municipal, or governmental agency (including a foreign governmental agency or entity), or if any taxes or debts owing at any
time hereafter to any one or more of such entities becomes a Lien, whether choate or otherwise, upon any such Person’s assets and the same is not paid on the payment date thereof; 
 8.8 If a judgment or other claim in excess of (a) with respect to any Borrower, $1,000,000, and (b) with respect to any
Loan Party that is a Foreign Subsidiary, $2,500,000, either individually, or in the aggregate, becomes a Lien or encumbrance upon such Person’s properties or assets; 
 8.9 If there is a default in any material agreement to which any (a) Borrower is a party and such default (i) occurs
prior to the final maturity of the obligations thereunder, or (ii) results in a right by the other party thereto, irrespective of whether exercised, to accelerate 

  

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the maturity of the applicable Borrower’s obligations thereunder, to terminate such agreement, or to refuse to renew such agreement pursuant to an
automatic renewal right therein, including, without limitation, the Existing Subordinated Debt Documents, or (b) Loan Party is a party and such default (i) occurs prior to the final maturity of the obligations thereunder, or
(ii) results in a right by the other party thereto, irrespective of whether exercised, to accelerate the maturity of the applicable Loan Party’s obligations thereunder, to terminate such agreement, or to refuse to renew such agreement
pursuant to an automatic renewal right therein, and such termination could be reasonably expected to result in a Material Adverse Change; 
 8.10 If any Loan Party makes any payment on account of Indebtedness that has been contractually subordinated in right of payment to the payment of the Obligations, except to the extent such payment is permitted
by the terms of the subordination provisions applicable to such Indebtedness, including, without limitation, the Existing Subordinated Debt Documents; 
 8.11 If any material misstatement or misrepresentation exists now or hereafter in any warranty, representation, statement, or Record made to the Lender Group by any Borrower, its Subsidiaries, or any officer,
employee, agent, or director of any Borrower or any of its Subsidiaries; 
 8.12 If this Agreement or any other Loan
Document that purports to create a Lien, shall, for any reason, fail or cease to create a valid and perfected and, except to the extent permitted by the terms hereof or thereof, first priority Lien on or security interest in the Collateral covered
hereby or thereby; 
 8.13 Any provision of any Loan Document shall at any time for any reason be declared to be null
and void, or the validity or enforceability thereof shall be contested by any Borrower, or a proceeding shall be commenced by any Borrower, or by any Governmental Authority having jurisdiction over any Borrower, seeking to establish the invalidity
or unenforceability thereof, or any Borrower shall deny that any Borrower has any liability or obligation purported to be created under any Loan Document; or 
 8.14 If there shall occur a termination of a supply agreement with any Material Vendor, or a termination, non-renewal or suspension
of any Management Agreement or any Subsidiary is enjoined, restrained or otherwise prevented from, or fails or otherwise refuses to pay any Management Fees, unless such termination, non-renewal, cancellation or non-payment could not reasonably be
expected to have a Material Adverse Effect. 
 9. THE LENDER GROUP’S RIGHTS AND REMEDIES. 
 9.1 Rights and Remedies. Upon the occurrence, and during the continuation, of an Event of Default, the Required Lenders (at
their election but without notice of their election and without demand) may authorize and instruct Agent to do any one or more of the following on behalf of the Lender Group (and Agent, acting upon the instructions of the Required Lenders, shall do
the same on behalf of the Lender Group), all of which are authorized by Borrowers: 
 (a) Declare all Obligations, whether evidenced by this
Agreement, by any of the other Loan Documents, or otherwise, immediately due and payable; 
  

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 (b) Cease advancing money or extending credit to or for the benefit of Borrowers under this Agreement,
under any of the Loan Documents, or under any other agreement between Borrowers and the Lender Group; 
 (c) Terminate this Agreement and any
of the other Loan Documents as to any future liability or obligation of the Lender Group, but without affecting any of the Agent’s Liens in the Collateral and without affecting the Obligations; 
 (d) Settle or adjust disputes and claims directly with Account Debtors for amounts and upon terms which Agent considers advisable, and in such cases,
Agent will credit the Loan Account with only the net amounts received by Agent in payment of such disputed Accounts after deducting all Lender Group Expenses incurred or expended in connection therewith; 
 (e) Cause Borrowers to hold all returned Inventory in trust for the Lender Group, segregate all returned Inventory from all other assets of Borrowers or
in Borrowers’ possession and conspicuously label said returned Inventory as the property of the Lender Group; 
 (f) Without notice to
or demand upon any Borrower, make such payments and do such acts as Agent considers necessary or reasonable to protect its security interests in the Collateral. Each Borrower agrees to assemble the Personal Property Collateral if Agent so requires,
and to make the Personal Property Collateral available to Agent at a place that Agent may designate which is reasonably convenient to both parties. Each Borrower authorizes Agent to enter the premises where the Personal Property Collateral is
located, to take and maintain possession of the Personal Property Collateral, or any part of it, and to pay, purchase, contest, or compromise any Lien that in Agent’s determination appears to conflict with the Agent’s Liens and to pay all
expenses incurred in connection therewith and to charge Borrowers’ Loan Account therefor. With respect to any of Borrowers’ owned or leased premises, each Borrower hereby grants Agent a license to enter into possession of such premises and
to occupy the same, without charge, in order to exercise any of the Lender Group’s rights or remedies provided herein, at law, in equity, or otherwise; 
 (g) Without notice to any Borrower (such notice being expressly waived), and without constituting a retention of any collateral in satisfaction of an obligation (within the meaning of the Code), set off and apply to
the Obligations any and all (i) balances and deposits of any Borrower held by the Lender Group (including any amounts received in the Cash Management Accounts), or (ii) Indebtedness at any time owing to or for the credit or the account of
any Borrower held by the Lender Group; 
 (h) Hold, as cash collateral, any and all balances and deposits of any Borrower held by the Lender
Group, and any amounts received in the Cash Management Accounts, to secure the full and final repayment of all of the Obligations; 
 (i)
Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell (in the manner provided for herein) the Personal Property Collateral. 

  

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Each Borrower hereby grants to Agent a license or other right to use, without charge, such Borrower’s labels, patents, copyrights, trade secrets, trade
names, trademarks, service marks, and advertising matter, or any property of a similar nature, as it pertains to the Personal Property Collateral, in completing production of, advertising for sale, and selling any Personal Property Collateral and
such Borrower’s rights under all licenses and all franchise agreements shall inure to the Lender Group’s benefit; 
 (j) Sell the
Personal Property Collateral at either a public or private sale, or both, by way of one or more contracts or transactions, for cash or on terms, in such manner and at such places (including Borrowers’ premises) as Agent determines is
commercially reasonable. It is not necessary that the Personal Property Collateral be present at any such sale; 
 (k) Agent shall give
notice of the disposition of the Personal Property Collateral as follows: 
 (i) Agent shall give Administrative Borrower (for
the benefit of the applicable Borrower) a notice in writing of the time and place of public sale, or, if the sale is a private sale or some other disposition other than a public sale is to be made of the Personal Property Collateral, the time on or
after which the private sale or other disposition is to be made; and 
 (ii) The notice shall be personally delivered or
mailed, postage prepaid, to Administrative Borrower as provided in Section 12, at least 10 days before the earliest time of disposition set forth in the notice; no notice needs to be given prior to the disposition of any portion of the
Personal Property Collateral that is perishable or threatens to decline speedily in value or that is of a type customarily sold on a recognized market; 
 (l) Agent, on behalf of the Lender Group may credit bid and purchase at any public sale; 
 (m) Agent may
seek the appointment of a receiver or keeper to take possession of all or any portion of the Collateral or to operate same and, to the maximum extent permitted by law, may seek the appointment of such a receiver without the requirement of prior
notice or a hearing; 
 (n) The Lender Group shall have all other rights and remedies available to it at law or in equity pursuant to any
other Loan Documents; and 
 (o) Any deficiency that exists after disposition of the Personal Property Collateral as provided above and the
Real Property in accordance with applicable law will be paid immediately by Borrowers. Any excess will be returned, without interest and subject to the rights of third Persons, by Agent to Administrative Borrower (for the benefit of the applicable
Borrower). 
 9.2 Remedies Cumulative. The rights and remedies of the Lender Group under this Agreement, the
other Loan Documents, and all other agreements shall be cumulative. The Lender Group shall have all other rights and remedies not inconsistent herewith as provided 

  

 81 

 
under the Code, by law, or in equity. No exercise by the Lender Group of one right or remedy shall be deemed an election, and no waiver by the Lender Group
of any Event of Default shall be deemed a continuing waiver. No delay by the Lender Group shall constitute a waiver, election, or acquiescence by it. 
 10. TAXES AND EXPENSES. 
 If any Borrower fails to pay any monies (whether taxes, assessments, insurance premiums, or, in the
case of leased properties or assets, rents or other amounts payable under such leases) due to third Persons, or fails to make any deposits or furnish any required proof of payment or deposit, all as required under the terms of this Agreement, then,
Agent, in its sole discretion and without prior notice to any Borrower, may do any or all of the following: (a) make payment of the same or any part thereof, (b) set up such reserves in Borrowers’ Loan Account as Agent deems necessary
to protect the Lender Group from the exposure created by such failure, or (c) in the case of the failure to comply with Section 6.8 hereof, obtain and maintain insurance policies of the type described in Section 6.8 and
take any action with respect to such policies as Agent deems prudent. Any such amounts paid by Agent shall constitute Lender Group Expenses and any such payments shall not constitute an agreement by the Lender Group to make similar payments in the
future or a waiver by the Lender Group of any Event of Default under this Agreement. Agent need not inquire as to, or contest the validity of, any such expense, tax, or Lien and the receipt of the usual official notice for the payment thereof shall
be conclusive evidence that the same was validly due and owing. 
 11. WAIVERS; INDEMNIFICATION. 
 11.1 Demand; Protest; etc. Each Borrower waives demand, protest, notice of protest, notice of default or dishonor, notice of
payment and nonpayment, nonpayment at maturity, release, compromise, settlement, extension, or renewal of documents, instruments, chattel paper, and guarantees at any time held by the Lender Group on which any such Borrower may in any way be liable.

 11.2 The Lender Group’s Liability for Collateral. Each Borrower hereby agrees that: (a) so long as
the Lender Group complies with its obligations, if any, under the Code, Agent shall not in any way or manner be liable or responsible for: (i) the safekeeping of the Collateral, (ii) any loss or damage thereto occurring or arising in any
manner or fashion from any cause, (iii) any diminution in the value thereof, or (iv) any act or default of any carrier, warehouseman, bailee, forwarding agency, or other Person, and (b) all risk of loss, damage, or destruction of the
Collateral shall be borne by Borrowers. 
 11.3 Indemnification. Each Borrower shall pay, indemnify, defend, and
hold the Agent-Related Persons, the Lender-Related Persons with respect to each Lender, each Participant, and each of their respective officers, directors, employees, agents, and attorneys-in-fact (each, an “Indemnified Person”)
harmless (to the fullest extent permitted by law) from and against any and all claims, demands, suits, actions, investigations, proceedings, and damages, and all reasonable attorneys fees and disbursements and other costs and expenses actually
incurred in connection therewith (as and when they are incurred and irrespective of whether suit is brought), at any time asserted against, imposed upon, or incurred by any of 

  

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them (a) in connection with or as a result of or related to the execution, delivery, enforcement, performance, or administration of this Agreement, any
of the other Loan Documents, or the transactions contemplated hereby or thereby, and (b) with respect to any investigation, litigation, or proceeding related to this Agreement, any other Loan Document, or the use of the proceeds of the credit
provided hereunder (irrespective of whether any Indemnified Person is a party thereto), or any act, omission, event, or circumstance in any manner related thereto (all the foregoing, collectively, the “Indemnified Liabilities”). The
foregoing to the contrary notwithstanding, Borrowers shall have no obligation to any Indemnified Person under this Section 11.3 with respect to any Indemnified Liability that a court of competent jurisdiction finally determines to have
resulted from the gross negligence or willful misconduct of such Indemnified Person. This provision shall survive the termination of this Agreement and the repayment of the Obligations. If any Indemnified Person makes any payment to any other
Indemnified Person with respect to an Indemnified Liability as to which Borrowers were required to indemnify the Indemnified Person receiving such payment, the Indemnified Person making such payment is entitled to be indemnified and reimbursed by
Borrowers with respect thereto. WITHOUT LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PERSON WITH RESPECT TO INDEMNIFIED LIABILITIES WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF ANY NEGLIGENT ACT OR OMISSION OF
SUCH INDEMNIFIED PERSON OR OF ANY OTHER PERSON. 
 12. NOTICES. 
 Unless otherwise provided in this Agreement, all notices or demands by Borrowers or Agent to the other relating to this Agreement or any other Loan Document shall be in writing and (except for financial statements and
other informational documents which may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by registered or certified mail (postage prepaid, return receipt requested), overnight courier, electronic mail (at such
email addresses as Administrative Borrower or Agent, as applicable, may designate to each other in accordance herewith), or telefacsimile to Borrowers in care of Administrative Borrower or to Agent, as the case may be, at its address set forth
below: 
  

			
	If to Administrative
	Borrower:	  	CELLSTAR CORPORATION
		  	601 S. Royal Lane
		  	Coppell, Texas 75019
		  	Attn: Elaine Rodriguez, Esq.
		  	Fax No. (972) 462-3566
		
	with copies to:	  	HAYNES AND BOONE, LLP
		  	901 Main St., Suite 3100
		  	Dallas, Texas 75202
		  	Attn: Paul H. Amiel, Esq.
		  	Fax No. (214) 200-0555

  

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	If to Agent:	  	WELLS FARGO FOOTHILL, INC.
		  	1000 Abernathy Rd., N.E., Suite 1450
		  	Atlanta, Georgia 30328
		  	Attn: Business Finance Division Manager
		  	Fax No. (770) 508-1374
		
	with copies to:	  	WELLS FARGO FOOTHILL, INC.
		  	2450 Colorado Avenue, Suite 3000W
		  	Santa Monica, California 90404
		  	Attn: Business Finance Division Manager
		  	Fax No. (310) 453-7413
		
	and copies to:	  	PAUL, HASTINGS, JANOFSKY & WALKER LLP
		  	600 Peachtree Street, N.E., Suite 2400
		  	Atlanta, Georgia 30308
		  	Attn: Cindy J. K. Davis, Esq.
		  	Fax No. (404) 815-2424

 Agent and Borrowers may change the address at which they are to receive notices hereunder, by
notice in writing in the foregoing manner given to the other party. All notices or demands sent in accordance with this Section 12, other than notices by Agent in connection with enforcement rights against the Collateral under the
provisions of the Code, shall be deemed received on the earlier of the date of actual receipt or 3 Business Days after the deposit thereof in the mail. Each Borrower acknowledges and agrees that notices sent by the Lender Group in connection with
the exercise of enforcement rights against Collateral under the provisions of the Code shall be deemed sent when deposited in the mail or personally delivered, or, where permitted by law, transmitted by telefacsimile or any other method set forth
above. 
 13. CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER. 
 (a) THE VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION, INTERPRETATION,
AND ENFORCEMENT HEREOF AND THEREOF, AND THE RIGHTS OF THE PARTIES HERETO AND THERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF GEORGIA. 
 (b) THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF FULTON, STATE OF GEORGIA, PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR
OTHER PROPERTY MAY BE BROUGHT, AT AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE AGENT ELECTS TO BRING SUCH ACTION OR WHERE SUCH 

  

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COLLATERAL OR OTHER PROPERTY MAY BE FOUND. BORROWERS AND THE LENDER GROUP WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO
ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION 13(b). 
 BORROWERS AND THE LENDER GROUP HEREBY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM
OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. BORROWERS AND THE
LENDER GROUP REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN
CONSENT TO A TRIAL BY THE COURT. 
 14. ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS. 
 14.1 Assignments and Participations. 
 (a) Any Lender may, with the written consent of Agent (provided that no written consent of Agent shall be required in connection with any assignment and delegation by a Lender to an Eligible Transferee), assign and
delegate to one or more assignees (each an “Assignee”) all, or any ratable part of all, of the Obligations, the Commitments and the other rights and obligations of such Lender hereunder and under the other Loan Documents, in a
minimum amount of $5,000,000; provided, however, that Borrowers and Agent may continue to deal solely and directly with such Lender in connection with the interest so assigned to an Assignee until (i) written notice of such
assignment, together with payment instructions, addresses, and related information with respect to the Assignee, have been given to Administrative Borrower and Agent by such Lender and the Assignee, (ii) such Lender and its Assignee have
delivered to Administrative Borrower and Agent an Assignment and Acceptance in form and substance satisfactory to Agent, and (iii) the assignor Lender or Assignee has paid to Agent for Agent’s separate account a processing fee in the
amount of $5,000. Anything contained herein to the contrary notwithstanding, the consent of Agent shall not be required (and payment of any fees shall not be required) if such assignment is in connection with any merger, consolidation, sale,
transfer, or other disposition of all or any substantial portion of the business or loan portfolio of such Lender. 
 (b) From and after the
date that Agent notifies the assignor Lender (with a copy to Administrative Borrower) that it has received an executed Assignment and Acceptance and payment of the above-referenced processing fee, (i) the Assignee thereunder shall be a party
hereto and, to the extent that rights and obligations 

  

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hereunder have been assigned to it pursuant to such Assignment and Acceptance, shall have the rights and obligations of a Lender under the Loan Documents,
and (ii) the assignor Lender shall, to the extent that rights and obligations hereunder and under the other Loan Documents have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights (except with respect to
Section 11.3 hereof) and be released from its obligations under this Agreement (and in the case of an Assignment and Acceptance covering all or the remaining portion of an assigning Lender’s rights and obligations under this
Agreement and the other Loan Documents, such Lender shall cease to be a party hereto and thereto), and such assignment shall affect a novation between Borrowers and the Assignee. 
 (c) By executing and delivering an Assignment and Acceptance, the assigning Lender thereunder and the Assignee thereunder confirm to and agree with each
other and the other parties hereto as follows: (1) other than as provided in such Assignment and Acceptance, such assigning Lender makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or
representations made in or in connection with this Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any other Loan Document furnished pursuant hereto, (2) such assigning
Lender makes no representation or warranty and assumes no responsibility with respect to the financial condition of Borrowers or the performance or observance by Borrowers of any of their obligations under this Agreement or any other Loan Document
furnished pursuant hereto, (3) such Assignee confirms that it has received a copy of this Agreement, together with such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into such
Assignment and Acceptance, (4) such Assignee will, independently and without reliance upon Agent, such assigning Lender or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make
its own credit decisions in taking or not taking action under this Agreement, (5) such Assignee appoints and authorizes Agent to take such actions and to exercise such powers under this Agreement as are delegated to Agent, by the terms hereof,
together with such powers as are reasonably incidental thereto, and (6) such Assignee agrees that it will perform all of the obligations which by the terms of this Agreement are required to be performed by it as a Lender. 
 (d) Immediately upon each Assignee’s making its processing fee payment under the Assignment and Acceptance and receipt and acknowledgment by Agent
of such fully executed Assignment and Acceptance, this Agreement shall be deemed to be amended to the extent, but only to the extent, necessary to reflect the addition of the Assignee and the resulting adjustment of the Commitments arising
therefrom. The Commitment allocated to each Assignee shall reduce such Commitments of the assigning Lender pro tanto. 
 (e) Any
Lender may at any time, with the written consent of Agent, sell to one or more commercial banks, financial institutions, or other Persons not Affiliates of such Lender (a “Participant”) participating interests in its Obligations,
the Commitment, and the other rights and interests of that Lender (the “Originating Lender”) hereunder and under the other Loan Documents (provided that no written consent of Agent shall be required in connection with any sale of
any such participating interests by a Lender to an Eligible Transferee); provided, however, that (i) the Originating Lender shall remain a “Lender” for all purposes of this Agreement and the other Loan Documents and the
Participant receiving the participating interest in the Obligations, the Commitments, and the other rights and interests of the Originating Lender hereunder shall not constitute a “Lender” hereunder or under the other Loan Documents and
the Originating Lender’s obligations under this Agreement shall remain unchanged, (ii) the 

  

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Originating Lender shall remain solely responsible for the performance of such obligations, (iii) Borrowers, Agent, and the Lenders shall continue to
deal solely and directly with the Originating Lender in connection with the Originating Lender’s rights and obligations under this Agreement and the other Loan Documents, (iv) no Lender shall transfer or grant any participating interest
under which the Participant has the right to approve any amendment to, or any consent or waiver with respect to, this Agreement or any other Loan Document, except to the extent such amendment to, or consent or waiver with respect to this Agreement
or of any other Loan Document would (A) extend the final maturity date of the Obligations hereunder in which such Participant is participating, (B) reduce the interest rate applicable to the Obligations hereunder in which such Participant
is participating, (C) release all or a material portion of the Collateral or guaranties (except to the extent expressly provided herein or in any of the Loan Documents) supporting the Obligations hereunder in which such Participant is
participating, (D) postpone the payment of, or reduce the amount of, the interest or fees payable to such Participant through such Lender, or (E) change the amount or due dates of scheduled principal repayments or prepayments or premiums;
and (v) all amounts payable by Borrowers hereunder shall be determined as if such Lender had not sold such participation; except that, if amounts outstanding under this Agreement are due and unpaid, or shall have been declared or shall have
become due and payable upon the occurrence of an Event of Default, each Participant shall be deemed to have the right of set-off in respect of its participating interest in amounts owing under this Agreement to the same extent as if the amount of
its participating interest were owing directly to it as a Lender under this Agreement. The rights of any Participant only shall be derivative through the Originating Lender with whom such Participant participates and no Participant shall have any
rights under this Agreement or the other Loan Documents or any direct rights as to the other Lenders, Agent, Borrowers, the Collections, the Collateral, or otherwise in respect of the Obligations. No Participant shall have the right to participate
directly in the making of decisions by the Lenders among themselves. 
 (f) In connection with any such assignment or participation or
proposed assignment or participation, a Lender may disclose all documents and information which it now or hereafter may have relating to Borrowers or Borrowers’ business. 
 (g) Any other provision in this Agreement notwithstanding, any Lender may at any time create a security interest in, or pledge, all or any portion of its
rights under and interest in this Agreement in favor of any Federal Reserve Bank in accordance with Regulation A of the Federal Reserve Bank or U.S. Treasury Regulation 31 CFR §203.14, and such Federal Reserve Bank may enforce such pledge or
security interest in any manner permitted under applicable law. 
 14.2 Successors. This Agreement shall bind
and inure to the benefit of the respective successors and assigns of each of the parties; provided, however, that Borrowers may not assign this Agreement or any rights or duties hereunder without the Lenders’ prior written consent
and any prohibited assignment shall be absolutely void ab initio. No consent to assignment by the Lenders shall release any Borrower from its Obligations. A Lender may assign this Agreement and the other Loan Documents and its rights and
duties hereunder and thereunder pursuant to Section 14.1 hereof and, except as expressly required pursuant to Section 14.1 hereof, no consent or approval by any Borrower is required in connection with any such assignment.

  

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 15. AMENDMENTS; WAIVERS. 
 15.1 Amendments and Waivers. No amendment or waiver of any provision of this Agreement or any other Loan Document, and no
consent with respect to any departure by Borrowers therefrom, shall be effective unless the same shall be in writing and signed by the Required Lenders (or by Agent at the written request of the Required Lenders) and Administrative Borrower (on
behalf of all Borrowers) and then any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no such waiver, amendment, or consent shall, unless in
writing and signed by all of the Lenders affected thereby and Administrative Borrower (on behalf of all Borrowers) and acknowledged by Agent, do any of the following: 
 (a) increase or extend any Commitment of any Lender, 
 (b) postpone or delay any date fixed by this
Agreement or any other Loan Document for any payment of principal, interest, fees, or other amounts due hereunder or under any other Loan Document, 
 (c) reduce the principal of, or the rate of interest on, any loan or other extension of credit hereunder, or reduce any fees or other amounts payable hereunder or under any other Loan Document, 
 (d) change the percentage of the Commitments that is required to take any action hereunder, 
 (e) amend or modify this Section or any provision of the Agreement providing for consent or other action by all Lenders, 
 (f) release Collateral other than as permitted by Section 16.12, 
 (g) change the definition of “Required Lenders” or “Pro Rata Share”, 
 (h) contractually subordinate any of the Agent’s Liens, 
 (i) release any Borrower from any obligation for the payment of money, or 
 (j) change the definition of
Borrowing Base or the definitions of Eligible Accounts, Eligible Domestic Accounts, Eligible Foreign Accounts, Eligible Inventory, Maximum Revolver Amount, or change Section 2.1(b) or Section 2.4(b); or 
 (k) amend any of the provisions of Section 16. 
 and, provided further, however, that no amendment, waiver or consent shall, unless in writing and signed by Agent, Issuing Lender, or Swing Lender, affect the rights or duties of Agent, Issuing Lender, or Swing Lender,
as applicable, under this Agreement or any other Loan Document. The foregoing notwithstanding, any amendment, modification, waiver, consent, 

  

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termination, or release of, or with respect to, any provision of this Agreement or any other Loan Document that relates only to the relationship of the
Lender Group among themselves, and that does not affect the rights or obligations of Borrowers, shall not require consent by or the agreement of Borrowers. 
 15.2 Replacement of Holdout Lender. If any action to be taken by the Lender Group or Agent hereunder requires the unanimous consent, authorization, or agreement of all Lenders, and a Lender
(“Holdout Lender”) fails to give its consent, authorization, or agreement, then Agent, upon at least 5 Business Days prior irrevocable notice to the Holdout Lender, may permanently replace the Holdout Lender with one or more
substitute Lenders (each, a “Replacement Lender”), and the Holdout Lender shall have no right to refuse to be replaced hereunder. Such notice to replace the Holdout Lender shall specify an effective date for such replacement, which
date shall not be later than 15 Business Days after the date such notice is given. 
 Prior to the effective date of such replacement, the
Holdout Lender and each Replacement Lender shall execute and deliver an Assignment and Acceptance Agreement, subject only to the Holdout Lender being repaid its share of the outstanding Obligations (including an assumption of its Pro Rata Share of
the Risk Participation Liability) without any premium or penalty of any kind whatsoever. If the Holdout Lender shall refuse or fail to execute and deliver any such Assignment and Acceptance Agreement prior to the effective date of such replacement,
the Holdout Lender shall be deemed to have executed and delivered such Assignment and Acceptance Agreement. The replacement of any Holdout Lender shall be made in accordance with the terms of Section 14.1. Until such time as the
Replacement Lenders shall have acquired all of the Obligations, the Commitments, and the other rights and obligations of the Holdout Lender hereunder and under the other Loan Documents, the Holdout Lender shall remain obligated to make the Holdout
Lender’s Pro Rata Share of Advances and to purchase a participation in each Letter of Credit, in an amount equal to its Pro Rata Share of the Risk Participation Liability of such Letter of Credit. 
 15.3 No Waivers; Cumulative Remedies. No failure by Agent or any Lender to exercise any right, remedy, or option under this
Agreement or, any other Loan Document, or delay by Agent or any Lender in exercising the same, will operate as a waiver thereof. No waiver by Agent or any Lender will be effective unless it is in writing, and then only to the extent specifically
stated. No waiver by Agent or any Lender on any occasion shall affect or diminish Agent’s and each Lender’s rights thereafter to require strict performance by Borrowers of any provision of this Agreement. Agent’s and each
Lender’s rights under this Agreement and the other Loan Documents will be cumulative and not exclusive of any other right or remedy that Agent or any Lender may have. 
 16. AGENT; THE LENDER GROUP. 
 16.1 Appointment and Authorization of
Agent. Each Lender hereby designates and appoints Foothill as its representative under this Agreement and the other Loan Documents and each Lender hereby irrevocably authorizes Agent to take such action on its behalf under the provisions of
this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to Agent by the 

  

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terms of this Agreement or any other Loan Document, together with such powers as are reasonably incidental thereto. Agent agrees to act as such on the
express conditions contained in this Section 16. The provisions of this Section 16 are solely for the benefit of Agent, and the Lenders, and Borrowers shall have no rights as a third party beneficiary of any of the provisions
contained herein. Any provision to the contrary contained elsewhere in this Agreement or in any other Loan Document notwithstanding, Agent shall not have any duties or responsibilities, except those expressly set forth herein, nor shall Agent have
or be deemed to have any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against Agent;
it being expressly understood and agreed that the use of the word “Agent” is for convenience only, that Foothill is merely the representative of the Lenders, and only has the contractual duties set forth herein. Except as expressly
otherwise provided in this Agreement, Agent shall have and may use its sole discretion with respect to exercising or refraining from exercising any discretionary rights or taking or refraining from taking any actions that Agent expressly is entitled
to take or assert under or pursuant to this Agreement and the other Loan Documents. Without limiting the generality of the foregoing, or of any other provision of the Loan Documents that provides rights or powers to Agent, Lenders agree that Agent
shall have the right to exercise the following powers as long as this Agreement remains in effect: (a) maintain, in accordance with its customary business practices, ledgers and records reflecting the status of the Obligations, the Collateral,
the Collections, and related matters, (b) execute or file any and all financing or similar statements or notices, amendments, renewals, supplements, documents, instruments, proofs of claim, notices and other written agreements with respect to
the Loan Documents, (c) make Advances, for itself or on behalf of Lenders as provided in the Loan Documents, (d) exclusively receive, apply, and distribute the Collections as provided in the Loan Documents, (e) open and maintain such
bank accounts and cash management accounts as Agent deems necessary and appropriate in accordance with the Loan Documents for the foregoing purposes with respect to the Collateral and the Collections, (f) perform, exercise, and enforce any and
all other rights and remedies of the Lender Group with respect to Borrowers, the Obligations, the Collateral, the Collections, or otherwise related to any of same as provided in the Loan Documents, and (g) incur and pay such Lender Group
Expenses as Agent may deem necessary or appropriate for the performance and fulfillment of its functions and powers pursuant to the Loan Documents. 
 16.2 Delegation of Duties. Agent may execute any of its duties under this Agreement or any other Loan Document by or through agents, employees or attorneys-in-fact and shall be entitled to advice of
counsel concerning all matters pertaining to such duties. Agent shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects as long as such selection was made without gross negligence or willful
misconduct. 
 16.3 Liability of Agent. None of the Agent-Related Persons shall (i) be liable for any
action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct), or (ii) be responsible
in any manner to any of the Lenders for any recital, statement, representation or warranty made by any Borrower or any Subsidiary or Affiliate of any Borrower, or any officer or director thereof, contained 

  

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in this Agreement or in any other Loan Document, or in any certificate, report, statement or other document referred to or provided for in, or received by
Agent under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document, or for any failure of any Borrower or any other
party to any Loan Document to perform its obligations hereunder or thereunder. No Agent-Related Person shall be under any obligation to any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in,
or conditions of, this Agreement or any other Loan Document, or to inspect the Books or properties of Borrowers or the books or records or properties of any of Borrowers’ Subsidiaries or Affiliates. 
 16.4 Reliance by Agent. Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing,
resolution, notice, consent, certificate, affidavit, letter, telegram, facsimile, telex or telephone message, statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent, or made by the proper
Person or Persons, and upon advice and statements of legal counsel (including counsel to Borrowers or counsel to any Lender), independent accountants and other experts selected by Agent. Agent shall be fully justified in failing or refusing to take
any action under this Agreement or any other Loan Document unless Agent shall first receive such advice or concurrence of the Lenders as it deems appropriate and until such instructions are received, Agent shall act, or refrain from acting, as it
deems advisable. If Agent so requests, it shall first be indemnified to its reasonable satisfaction by Lenders against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action. Agent
shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of the requisite Lenders and such request and any action taken or failure to act
pursuant thereto shall be binding upon all of the Lenders. 
 16.5 Notice of Default or Event of Default. Agent
shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default, except with respect to defaults in the payment of principal, interest, fees, and expenses required to be paid to Agent for the account of the
Lenders, except with respect to Events of Default of which Agent has actual knowledge, unless Agent shall have received written notice from a Lender or Administrative Borrower referring to this Agreement, describing such Default or Event of Default,
and stating that such notice is a “notice of default.” Agent promptly will notify the Lenders of its receipt of any such notice or of any Event of Default of which Agent has actual knowledge. If any Lender obtains actual knowledge of any
Event of Default, such Lender promptly shall notify the other Lenders and Agent of such Event of Default. Each Lender shall be solely responsible for giving any notices to its Participants, if any. Subject to Section 16.4, Agent shall
take such action with respect to such Default or Event of Default as may be requested by the Required Lenders in accordance with Section 9; provided, however, that unless and until Agent has received any such request, Agent
may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable. 
 16.6 Credit Decision. Each Lender acknowledges that none of the Agent-Related Persons has made any representation or
warranty to it, and that no act by Agent 

  

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hereinafter taken, including any review of the affairs of Borrowers and their Subsidiaries or Affiliates, shall be deemed to constitute any representation or
warranty by any Agent-Related Person to any Lender. Each Lender represents to Agent that it has, independently and without reliance upon any Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of Borrowers and any other Person (other than the Lender Group) party to a Loan Document, and all applicable bank
regulatory laws relating to the transactions contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to Borrowers. Each Lender also represents that it will, independently and without reliance upon any
Agent-Related Person and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan
Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of Borrowers and any other Person (other than the Lender Group)
party to a Loan Document. Except for notices, reports, and other documents expressly herein required to be furnished to the Lenders by Agent, Agent shall not have any duty or responsibility to provide any Lender with any credit or other information
concerning the business, prospects, operations, property, financial and other condition or creditworthiness of Borrowers and any other Person party to a Loan Document that may come into the possession of any of the Agent-Related Persons. 

16.7 Costs and Expenses; Indemnification. Agent may incur and pay Lender Group Expenses to the extent Agent reasonably
deems necessary or appropriate for the performance and fulfillment of its functions, powers, and obligations pursuant to the Loan Documents, including court costs, reasonable attorneys fees and expenses, costs of collection by outside collection
agencies and auctioneer fees and costs of security guards or insurance premiums paid to maintain the Collateral, whether or not Borrowers are obligated to reimburse Agent or Lenders for such expenses pursuant to the Loan Agreement or otherwise.
Agent is authorized and directed to deduct and retain sufficient amounts from Collections received by Agent to reimburse Agent for such out-of-pocket costs and expenses prior to the distribution of any amounts to Lenders. In the event Agent is not
reimbursed for such costs and expenses from Collections received by Agent, each Lender hereby agrees that it is and shall be obligated to pay to or reimburse Agent for the amount of such Lender’s Pro Rata Share thereof. Whether or not the
transactions contemplated hereby are consummated, the Lenders shall indemnify upon demand the Agent-Related Persons (to the extent not reimbursed by or on behalf of Borrowers and without limiting the obligation of Borrowers to do so), according to
their Pro Rata Shares, from and against any and all Indemnified Liabilities; provided, however, that no Lender shall be liable for the payment to any Agent-Related Person of any portion of such Indemnified Liabilities resulting solely
from such Person’s gross negligence or willful misconduct nor shall any Lender be liable for the obligations of any Defaulting Lender in failing to make an Advance or other extension of credit hereunder. Without limitation of the foregoing,
each Lender shall reimburse Agent upon demand for such Lender’s ratable share of any costs or out-of-pocket expenses (including attorneys fees and expenses) incurred by Agent in connection with the preparation, execution, delivery,
administration, modification, amendment, or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect 

  

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of rights or responsibilities under, this Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the extent that Agent
is not reimbursed for such expenses by or on behalf of Borrowers. The undertaking in this Section shall survive the payment of all Obligations hereunder and the resignation or replacement of Agent. 
 16.8 Agent in Individual Capacity. Foothill and its Affiliates may make loans to, issue letters of credit for the account
of, accept deposits from, acquire equity interests in, and generally engage in any kind of banking, trust, financial advisory, underwriting, or other business with Borrowers and their Subsidiaries and Affiliates and any other Person (other than the
Lender Group) party to any Loan Documents as though Foothill were not Agent hereunder, and, in each case, without notice to or consent of the other members of the Lender Group. The other members of the Lender Group acknowledge that, pursuant to such
activities, Foothill or its Affiliates may receive information regarding Borrowers or their Affiliates and any other Person (other than the Lender Group) party to any Loan Documents that is subject to confidentiality obligations in favor of
Borrowers or such other Person and that prohibit the disclosure of such information to the Lenders, and the Lenders acknowledge that, in such circumstances (and in the absence of a waiver of such confidentiality obligations, which waiver Agent will
use its reasonable best efforts to obtain), Agent shall not be under any obligation to provide such information to them. The terms “Lender” and “Lenders” include Foothill in its individual capacity. 
 16.9 Successor Agent. Agent may resign as Agent upon 45 days notice to the Lenders. If Agent resigns under this Agreement,
the Required Lenders shall appoint a successor Agent for the Lenders. If no successor Agent is appointed prior to the effective date of the resignation of Agent, Agent may appoint, after consulting with the Lenders, a successor Agent. If Agent has
materially breached or failed to perform any material provision of this Agreement or of applicable law, the Required Lenders may agree in writing to remove and replace Agent with a successor Agent from among the Lenders. In any such event, upon the
acceptance of its appointment as successor Agent hereunder, such successor Agent shall succeed to all the rights, powers, and duties of the retiring Agent and the term “Agent” shall mean such successor Agent and the retiring Agent’s
appointment, powers, and duties as Agent shall be terminated. After any retiring Agent’s resignation hereunder as Agent, the provisions of this Section 16 shall inure to its benefit as to any actions taken or omitted to be taken by
it while it was Agent under this Agreement. If no successor Agent has accepted appointment as Agent by the date which is 45 days following a retiring Agent’s notice of resignation, the retiring Agent’s resignation shall nevertheless
thereupon become effective and the Lenders shall perform all of the duties of Agent hereunder until such time, if any, as the Lenders appoint a successor Agent as provided for above. 
 16.10 Lender in Individual Capacity. Any Lender and its respective Affiliates may make loans to, issue letters of credit for
the account of, accept deposits from, acquire equity interests in and generally engage in any kind of banking, trust, financial advisory, underwriting or other business with Borrowers and their Subsidiaries and Affiliates and any other Person (other
than the Lender Group) party to any Loan Documents as though such Lender were not a Lender hereunder without notice to or consent of the other members of the Lender Group. The other members of the Lender Group acknowledge that, pursuant to such

  

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activities, such Lender and its respective Affiliates may receive information regarding Borrowers or their Affiliates and any other Person (other than the
Lender Group) party to any Loan Documents that is subject to confidentiality obligations in favor of Borrowers or such other Person and that prohibit the disclosure of such information to the Lenders, and the Lenders acknowledge that, in such
circumstances (and in the absence of a waiver of such confidentiality obligations, which waiver such Lender will use its reasonable best efforts to obtain), such Lender not shall be under any obligation to provide such information to them. With
respect to the Swing Loans and Agent Advances, Swing Lender shall have the same rights and powers under this Agreement as any other Lender and may exercise the same as though it were not the sub-agent of the Agent. 
 16.11 Withholding Taxes. 
 (a) If any Lender is a “foreign corporation, partnership or trust” within the meaning of the IRC and such Lender claims exemption from, or a reduction of, U.S. withholding tax under Sections 1441 or 1442 of
the IRC, such Lender agrees with and in favor of Agent and Borrowers, to deliver to Agent and Administrative Borrower: 
 (i)
if such Lender claims an exemption from withholding tax pursuant to its portfolio interest exception, (a) a statement of the Lender, signed under penalty of perjury, that it is not a (I) a “bank” as described in
Section 881(c)(3)(A) of the IRC, (II) a 10% shareholder (within the meaning of Section 881(c)(3)(B) of the IRC), or (III) a controlled foreign corporation described in Section 881(c)(3)(C) of the IRC, and (B) a properly completed
IRS Form W-8BEN, before the first payment of any interest under this Agreement and at any other time reasonably requested by Agent or Administrative Borrower; 
 (ii) if such Lender claims an exemption from, or a reduction of, withholding tax under a United States tax treaty, properly completed IRS
Form W-8BEN before the first payment of any interest under this Agreement and at any other time reasonably requested by Agent or Administrative Borrower; 
 (iii) if such Lender claims that interest paid under this Agreement is exempt from United States withholding tax because it is effectively connected with a United States trade or business of such Lender, two properly
completed and executed copies of IRS Form W-8ECI before the first payment of any interest is due under this Agreement and at any other time reasonably requested by Agent or Administrative Borrower; 
 (iv) such other form or forms as may be required under the IRC or other laws of the United States as a condition to exemption from, or
reduction of, United States withholding tax. 
 Such Lender agrees promptly to notify Agent and Administrative Borrower of any change in circumstances which
would modify or render invalid any claimed exemption or reduction. 
  

 94 

 (b) If any Lender claims exemption from, or reduction of, withholding tax under a United States tax
treaty by providing IRS Form W-8BEN and such Lender sells, assigns, grants a participation in, or otherwise transfers all or part of the Obligations of Borrowers to such Lender, such Lender agrees to notify Agent of the percentage amount in which it
is no longer the beneficial owner of Obligations of Borrowers to such Lender. To the extent of such percentage amount, Agent will treat such Lender’s IRS Form W-8BEN as no longer valid. 
 (c) If any Lender is entitled to a reduction in the applicable withholding tax, Agent may withhold from any interest payment to such Lender an amount
equivalent to the applicable withholding tax after taking into account such reduction. If the forms or other documentation required by subsection (a) of this Section are not delivered to Agent, then Agent may withhold from any interest payment
to such Lender not providing such forms or other documentation an amount equivalent to the applicable withholding tax. 
 (d) If the IRS or
any other Governmental Authority of the United States or other jurisdiction asserts a claim that Agent did not properly withhold tax from amounts paid to or for the account of any Lender (because the appropriate form was not delivered, was not
properly executed, or because such Lender failed to notify Agent of a change in circumstances which rendered the exemption from, or reduction of, withholding tax ineffective, or for any other reason) such Lender shall indemnify and hold Agent
harmless for all amounts paid, directly or indirectly, by Agent as tax or otherwise, including penalties and interest, and including any taxes imposed by any jurisdiction on the amounts payable to Agent under this Section, together with all costs
and expenses (including attorneys fees and expenses). The obligation of the Lenders under this subsection shall survive the payment of all Obligations and the resignation or replacement of Agent. 
 (e) All payments made by Borrowers hereunder or under any note or other Loan Document will be made without setoff, counterclaim, or other defense, except
as required by applicable law other than for Taxes (as defined below). All such payments will be made free and clear of, and without deduction or withholding for, any present or future taxes, levies, imposts, duties, fees, assessments or other
charges of whatever nature now or hereafter imposed by any jurisdiction (other than the United States) or by any political subdivision or taxing authority thereof or therein (other than of the United States) with respect to such payments (but
excluding, any tax imposed by any jurisdiction or by any political subdivision or taxing authority thereof or therein (i) measured by or based on the net income or net profits of a Lender, or (ii) to the extent that such tax results from a
change in the circumstances of the Lender, including a change in the residence, place of organization, or principal place of business of the Lender, or a change in the branch or lending office of the Lender participating in the transactions set
forth herein) and all interest, penalties or similar liabilities with respect thereto (all such non-excluded taxes, levies, imposts, duties, fees, assessments or other charges being referred to collectively as “Taxes”). If any Taxes are so
levied or imposed, each Borrower agrees to pay the full amount of such Taxes, and such additional amounts as may be necessary so that every payment of all amounts due under this Agreement or under any note, including any amount paid pursuant to this
Section 16.11(e) after withholding or deduction for or on account of any Taxes, will not be less than the amount provided for herein; provided, however, that Borrowers shall not be required to increase any such amounts
payable to Agent or any Lender (i) that is not organized under the laws of the United States, if such Person fails to comply with the other requirements of this 

  

 95 

 
Section 16.11, or (ii) if the increase in such amount payable results from Agent’s or such Lender’s own willful misconduct or
gross negligence. Borrowers will furnish to Agent as promptly as possible after the date the payment of any Taxes is due pursuant to applicable law certified copies of tax receipts evidencing such payment by Borrowers. 
 16.12 Collateral Matters. 
 (a) The Lenders hereby irrevocably authorize Agent, at its option and in its sole discretion, to release any Lien on any Collateral (i) upon the termination of the Commitments and payment and satisfaction in full
by Borrowers of all Obligations, (ii) constituting property being sold or disposed of if a release is required or desirable in connection therewith and if Administrative Borrower certifies to Agent that the sale or disposition is permitted
under Section 7.4 of this Agreement or the other Loan Documents (and Agent may rely conclusively on any such certificate, without further inquiry), (iii) constituting property in which no Borrower owned any interest at the time the
security interest was granted or at any time thereafter, or (iv) constituting property leased to a Borrower under a lease that has expired or is terminated in a transaction permitted under this Agreement. Except as provided above, Agent will
not execute and deliver a release of any Lien on any Collateral without the prior written authorization of (y) if the release is of all or substantially all of the Collateral, all of the Lenders, or (z) otherwise, the Required Lenders.
Upon request by Agent or Administrative Borrower at any time, the Lenders will confirm in writing Agent’s authority to release any such Liens on particular types or items of Collateral pursuant to this Section 16.12;
provided, however, that (1) Agent shall not be required to execute any document necessary to evidence such release on terms that, in Agent’s opinion, would expose Agent to liability or create any obligation or entail any
consequence other than the release of such Lien without recourse, representation, or warranty, and (2) such release shall not in any manner discharge, affect, or impair the Obligations or any Liens (other than those expressly being released)
upon (or obligations of Borrowers in respect of) all interests retained by Borrowers, including, the proceeds of any sale, all of which shall continue to constitute part of the Collateral. 
 (b) Agent shall have no obligation whatsoever to any of the Lenders to assure that the Collateral exists or is owned by Borrowers or is cared for,
protected, or insured or has been encumbered, or that the Agent’s Liens have been properly or sufficiently or lawfully created, perfected, protected, or enforced or are entitled to any particular priority, or to exercise at all or in any
particular manner or under any duty of care, disclosure or fidelity, or to continue exercising, any of the rights, authorities and powers granted or available to Agent pursuant to any of the Loan Documents, it being understood and agreed that in
respect of the Collateral, or any act, omission, or event related thereto, subject to the terms and conditions contained herein, Agent may act in any manner it may deem appropriate, in its sole discretion given Agent’s own interest in the
Collateral in its capacity as one of the Lenders and that Agent shall have no other duty or liability whatsoever to any Lender as to any of the foregoing, except as otherwise provided herein. 
 16.13 Restrictions on Actions by Lenders; Sharing of Payments. 
 (a) Each of the Lenders agrees that it shall not, without the express consent of Agent, and that it shall, to the extent it is lawfully entitled to do so,
upon the request of Agent, set 

  

 96 

 
off against the Obligations, any amounts owing by such Lender to Borrowers or any deposit accounts of Borrowers now or hereafter maintained with such Lender.
Each of the Lenders further agrees that it shall not, unless specifically requested to do so by Agent, take or cause to be taken any action, including, the commencement of any legal or equitable proceedings, to foreclose any Lien on, or otherwise
enforce any security interest in, any of the Collateral the purpose of which is, or could be, to give such Lender any preference or priority against the other Lenders with respect to the Collateral. 
 (b) If, at any time or times any Lender shall receive (i) by payment, foreclosure, setoff, or otherwise, any proceeds of Collateral or any payments
with respect to the Obligations arising under, or relating to, this Agreement or the other Loan Documents, except for any such proceeds or payments received by such Lender from Agent pursuant to the terms of this Agreement, or (ii) payments
from Agent in excess of such Lender’s ratable portion of all such distributions by Agent, such Lender promptly shall (1) turn the same over to Agent, in kind, and with such endorsements as may be required to negotiate the same to Agent, or
in immediately available funds, as applicable, for the account of all of the Lenders and for application to the Obligations in accordance with the applicable provisions of this Agreement, or (2) purchase, without recourse or warranty, an
undivided interest and participation in the Obligations owed to the other Lenders so that such excess payment received shall be applied ratably as among the Lenders in accordance with their Pro Rata Shares; provided, however, that if all or part of
such excess payment received by the purchasing party is thereafter recovered from it, those purchases of participations shall be rescinded in whole or in part, as applicable, and the applicable portion of the purchase price paid therefor shall be
returned to such purchasing party, but without interest except to the extent that such purchasing party is required to pay interest in connection with the recovery of the excess payment. 
 16.14 Agency for Perfection. Agent hereby appoints each other Lender as its agent (and each Lender hereby accepts such
appointment) for the purpose of perfecting the Agent’s Liens in assets which, in accordance with Article 9 of the UCC can be perfected only by possession. Should any Lender obtain possession of any such Collateral, such Lender shall notify
Agent thereof, and, promptly upon Agent’s request therefor shall deliver such Collateral to Agent or in accordance with Agent’s instructions. 
 16.15 Payments by Agent to the Lenders. All payments to be made by Agent to the Lenders shall be made by bank wire transfer or internal transfer of immediately available funds pursuant to such wire
transfer instructions as each party may designate for itself by written notice to Agent. Concurrently with each such payment, Agent shall identify whether such payment (or any portion thereof) represents principal, premium, or interest of the
Obligations. 
 16.16 Concerning the Collateral and Related Loan Documents. Each member of the Lender Group
authorizes and directs Agent to enter into this Agreement and the other Loan Documents relating to the Collateral, for the benefit of the Lender Group. Each member of the Lender Group agrees that any action taken by Agent in accordance with the
terms of this Agreement or the other Loan Documents relating to the Collateral and the exercise by Agent of its powers set forth therein or herein, together with such other powers that are reasonably incidental thereto, shall be binding upon all of
the Lenders. 
  

 97 

 16.17 Field Audits and Examination Reports; Confidentiality; Disclaimers by
Lenders; Other Reports and Information. By becoming a party to this Agreement, each Lender: 
 (a) is deemed to have requested that
Agent furnish such Lender, promptly after it becomes available, a copy of each field audit or examination report (each a “Report” and collectively, “Reports”) prepared by Agent, and Agent shall so furnish each
Lender with such Reports, 
 (b) expressly agrees and acknowledges that Agent does not (i) make any representation or warranty as to the
accuracy of any Report, and (ii) shall not be liable for any information contained in any Report, 
 (c) expressly agrees and
acknowledges that the Reports are not comprehensive audits or examinations, that Agent or other party performing any audit or examination will inspect only specific information regarding Borrowers and will rely significantly upon the Books, as well
as on representations of Borrowers’ personnel, 
 (d) agrees to keep all Reports and non-public information regarding Borrowers and
their Subsidiaries and their operations, assets, and existing and contemplated business plans in a confidential manner; it being understood and agreed by Borrowers that in any event such Lender may make disclosures (a) to counsel for and other
advisors, accountants, and auditors to such Lender, (b) reasonably required by any bona fide potential or actual Assignee or Participant in connection with any contemplated or actual assignment or transfer by such Lender of an interest
herein or any participation interest in such Lender’s rights hereunder, (c) of information that has become public by disclosures made by Persons other than such Lender, its Affiliates, assignees, transferees, or Participants, or
(d) as required or requested by any court, governmental or administrative agency, pursuant to any subpoena or other legal process, or by any law, statute, regulation, or court order; provided, however, that, unless prohibited by
applicable law, statute, regulation, or court order, such Lender shall notify Administrative Borrower of any request by any court, governmental or administrative agency, or pursuant to any subpoena or other legal process for disclosure of any such
non-public material information concurrent with, or where practicable, prior to the disclosure thereof, and 
 (e) without limiting the
generality of any other indemnification provision contained in this Agreement, agrees: (i) to hold Agent and any such other Lender preparing a Report harmless from any action the indemnifying Lender may take or conclusion the indemnifying
Lender may reach or draw from any Report in connection with any loans or other credit accommodations that the indemnifying Lender has made or may make to Borrowers, or the indemnifying Lender’s participation in, or the indemnifying
Lender’s purchase of, a loan or loans of Borrowers; and (ii) to pay and protect, and indemnify, defend and hold Agent, and any such other Lender preparing a Report harmless from and against, the claims, actions, proceedings, damages,
costs, expenses, and other amounts (including, attorneys fees and costs) incurred by Agent and any such other Lender preparing a Report as the direct or indirect result of any third parties who might obtain all or part of any Report through the
indemnifying Lender. 
  

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 In addition to the foregoing: (x) any Lender may from time to time request of Agent in writing that Agent provide to
such Lender a copy of any report or document provided by Borrowers to Agent that has not been contemporaneously provided by Borrowers to such Lender, and, upon receipt of such request, Agent shall provide a copy of same to such Lender, (y) to
the extent that Agent is entitled, under any provision of the Loan Documents, to request additional reports or information from Borrowers, any Lender may, from time to time, reasonably request Agent to exercise such right as specified in such
Lender’s notice to Agent, whereupon Agent promptly shall request of Administrative Borrower the additional reports or information reasonably specified by such Lender, and, upon receipt thereof from Administrative Borrower, Agent promptly shall
provide a copy of same to such Lender, and (z) any time that Agent renders to Administrative Borrower a statement regarding the Loan Account, Agent shall send a copy of such statement to each Lender. 
 16.18 Several Obligations; No Liability. Notwithstanding that certain of the Loan Documents now or hereafter may have been
or will be executed only by or in favor of Agent in its capacity as such, and not by or in favor of the Lenders, any and all obligations on the part of Agent (if any) to make any credit available hereunder shall constitute the several (and not
joint) obligations of the respective Lenders on a ratable basis, according to their respective Commitments, to make an amount of such credit not to exceed, in principal amount, at any one time outstanding, the amount of their respective Commitments.
Nothing contained herein shall confer upon any Lender any interest in, or subject any Lender to any liability for, or in respect of, the business, assets, profits, losses, or liabilities of any other Lender. Each Lender shall be solely responsible
for notifying its Participants of any matters relating to the Loan Documents to the extent any such notice may be required, and no Lender shall have any obligation, duty, or liability to any Participant of any other Lender. Except as provided in
Section 16.7, no member of the Lender Group shall have any liability for the acts or any other member of the Lender Group. No Lender shall be responsible to any Borrower or any other Person for any failure by any other Lender to fulfill
its obligations to make credit available hereunder, nor to advance for it or on its behalf in connection with its Commitment, nor to take any other action on its behalf hereunder or in connection with the financing contemplated herein. 

16.19 Legal Representation of Agent. In connection with the negotiation, drafting, and execution of this Agreement and
the other Loan Documents, or in connection with future legal representation relating to loan administration, amendments, modifications, waivers, or enforcement of remedies, Paul, Hastings, Janofsky & Walker, LLP (“Paul
Hastings”) only has represented and only shall represent Foothill in its capacity as Agent and as a Lender. Each other Lender hereby acknowledges that Paul Hastings does not represent it in connection with any such matters. 
 17. GENERAL PROVISIONS. 
 17.1
Effectiveness. This Agreement shall be binding and deemed effective when executed by Borrowers, Agent, and each Lender whose signature is provided for on the signature pages hereof. 
  

 99 

 17.2 Section Headings. Headings and numbers have been set forth herein for
convenience only. Unless the contrary is compelled by the context, everything contained in each Section applies equally to this entire Agreement. 
 17.3 Interpretation. Neither this Agreement nor any uncertainty or ambiguity herein shall be construed or resolved against the Lender Group or Borrowers, whether under any rule of construction or
otherwise. On the contrary, this Agreement has been reviewed by all parties and shall be construed and interpreted according to the ordinary meaning of the words used so as to accomplish fairly the purposes and intentions of all parties hereto.

 17.4 Severability of Provisions. Each provision of this Agreement shall be severable from every other
provision of this Agreement for the purpose of determining the legal enforceability of any specific provision. 
 17.5
Amendments in Writing. This Agreement only can be amended by a writing in accordance with Section 15.1. 
 17.6 Counterparts; Telefacsimile Execution. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an
original, and all of which, when taken together, shall constitute but one and the same Agreement. Delivery of an executed counterpart of this Agreement by telefacsimile shall be equally as effective as delivery of an original executed counterpart of
this Agreement. Any party delivering an executed counterpart of this Agreement by telefacsimile also shall deliver an original executed counterpart of this Agreement but the failure to deliver an original executed counterpart shall not affect the
validity, enforceability, and binding effect of this Agreement. The foregoing shall apply to each other Loan Document mutatis mutandis. 
 17.7 Revival and Reinstatement of Obligations. If the incurrence or payment of the Obligations by any Borrower or the transfer to the Lender Group of any property should for any reason subsequently be
declared to be void or voidable under any state or federal law relating to creditors’ rights, including provisions of the Bankruptcy Code relating to fraudulent conveyances, preferences, or other voidable or recoverable payments of money or
transfers of property (collectively, a “Voidable Transfer”), and if the Lender Group is required to repay or restore, in whole or in part, any such Voidable Transfer, or elects to do so upon the reasonable advice of its counsel,
then, as to any such Voidable Transfer, or the amount thereof that the Lender Group is required or elects to repay or restore, and as to all reasonable costs, expenses, and attorneys fees of the Lender Group related thereto, the liability of
Borrowers automatically shall be revived, reinstated, and restored and shall exist as though such Voidable Transfer had never been made. 
 17.8 Patriot Act Notice. Agent and Lenders hereby notify Borrowers that pursuant to the requirements of the Patriot Act, Agent and Lenders are required to obtain, verify and record information that
identifies each Borrower, including its legal name, address, tax ID number and other information that will allow Agent and Lenders to identify it in accordance with the Patriot Act. Agent and Lenders will also require information regarding each
personal guarantor, if any, and may require information regarding Borrowers’ management and owners, such as legal name, address, social security number and date of birth. 
  

 100 

 17.9 Integration. This Agreement, together with the other Loan Documents,
reflects the entire understanding of the parties with respect to the transactions contemplated hereby and shall not be contradicted or qualified by any other agreement, oral or written, before the date hereof. 
 17.10 Parent as Agent for Borrowers. Each Borrower hereby irrevocably appoints Parent as the borrowing agent and
attorney-in-fact for all Borrowers (the “Administrative Borrower”) which appointment shall remain in full force and effect unless and until Agent shall have received prior written notice signed by each Borrower that such appointment
has been revoked and that another Borrower acceptable to Agent has been appointed Administrative Borrower. Each Borrower hereby irrevocably appoints and authorizes the Administrative Borrower (i) to provide Agent with all notices with respect
to Advances and Letters of Credit obtained for the benefit of any Borrower and all other notices and instructions under this Agreement and (ii) to take such action as the Administrative Borrower deems appropriate on its behalf to obtain
Advances and Letters of Credit and to exercise such other powers as are reasonably incidental thereto to carry out the purposes of this Agreement. It is understood that the handling of the Loan Account and Collateral of Borrowers in a combined
fashion, as more fully set forth herein, is done solely as an accommodation to Borrowers in order to utilize the collective borrowing powers of Borrowers in the most efficient and economical manner and at their request, and that Lender Group shall
not incur liability to any Borrower as a result hereof. Each Borrower expects to derive benefit, directly or indirectly, from the handling of the Loan Account and the Collateral in a combined fashion since the successful operation of each Borrower
is dependent on the continued successful performance of the integrated group. To induce the Lender Group to do so, and in consideration thereof, each Borrower hereby jointly and severally agrees to indemnify each member of the Lender Group and hold
each member of the Lender Group harmless against any and all liability, expense, loss or claim of damage or injury, made against the Lender Group by any Borrower or by any third party whosoever, arising from or incurred by reason of (a) the
handling of the Loan Account and Collateral of Borrowers as herein provided, (b) the Lender Group’s relying on any instructions of the Administrative Borrower, or (c) any other action taken by the Lender Group hereunder or under the
other Loan Documents, except that Borrowers will have no liability to the relevant Agent-Related Person or Lender-Related Person under this Section 17.10 with respect to any liability that has been finally determined by a court of
competent jurisdiction to have resulted solely from the gross negligence or willful misconduct of such Agent-Related Person or Lender-Related Person, as the case may be. 
 [Signature page to follow] 
  

 101 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered on
the date first above written. 
  

			
	 CELLSTAR CORPORATION,
 a Delaware
corporation

		
		 	 /s/ Elaine Flud Rodriguez

	By:	 	Elaine Flud Rodriguez
	Title:	 	Sr. VP and General Counsel
	
	 CELLSTAR, LTD.,
 a Texas limited
partnership

		
	By:	 	National Auto Center, Inc., its General Partner
		
		 	 /s/ Elaine Flud Rodriguez

	By:	 	Elaine Flud Rodriguez
	Title:	 	Sr. VP and General Counsel
	
	 NATIONAL AUTO CENTER, INC.,
 a
Delaware corporation

		
		 	 /s/ Elaine Flud Rodriguez

	By:	 	Elaine Flud Rodriguez
	Title:	 	Sr. VP and General Counsel
	
	 CELLSTAR FINANCO, INC.,
 a Delaware
corporation

		
		 	 /s/ Elaine Flud Rodriguez

	By:	 	Elaine Flud Rodriguez
	Title:	 	Sr. VP and General Counsel

 Amended and Restated Loan and Security Agreement 

			
	 CELLSTAR INTERNATIONAL CORPORATION/SA,
 a Delaware corporation

		
		 	 /s/ Elaine Flud Rodriguez

	By:	 	Elaine Flud Rodriguez
	Title:	 	Sr. VP and General Counsel
	
	 CELLSTAR FULFILLMENT, INC.,
 a
Delaware corporation

		
		 	 /s/ Elaine Flud Rodriguez

	By:	 	Elaine Flud Rodriguez
	Title:	 	Sr. VP and General Counsel
	
	 CELLSTAR INTERNATIONAL CORPORATION/ASIA,
 a Delaware Corporation

		
		 	 /s/ Elaine Flud Rodriguez

	By:	 	Elaine Flud Rodriguez
	Title:	 	Sr. VP and General Counsel
	
	 AUDIOMEX EXPORT CORP.,
 a Texas
corporation

		
		 	 /s/ Elaine Flud Rodriguez

	By:	 	Elaine Flud Rodriguez
	Title:	 	Sr. VP and General Counsel
	
	 NAC HOLDINGS, INC.,
 a Nevada
corporation

		
		 	 /s/ Elaine Flud Rodriguez

	By:	 	Elaine Flud Rodriguez
	Title:	 	President
	
	 CELLSTAR FULFILLMENT LTD.,
 a Texas
limited partnership

		
	By:	 	CellStar Fulfillment, Inc., its General Partner
		
		 	 /s/ Elaine Flud Rodriguez

	By:	 	Elaine Flud Rodriguez
	Title:	 	Sr. VP and General Counsel

 Amended and Restated Loan and Security Agreement 

			
	 WELLS FARGO FOOTHILL, INC.,
 a
California corporation, as Agent and as a Lender

		
		 	 /s/ Robert Bernier

	By:	 	Robert Bernier
	Title:	 	Vice President
	
	BANK OF AMERICA, N.A. (successor to Fleet Capital Corporation), as a Lender
		
		 	 /s/ H. Michael Wills

	Name:	 	H. Michael Wills
	Title:	 	Senior Vice President
	
	TEXTRON FINANCIAL CORPORATION, as a Lender
		
	By:	 	 /s/ Stuart A. Hall

	Name:	 	Stuart A. Hall
	Title:	 	Senior Account Executive

 Amended and Restated Loan and Security AgreementIndenture, dated December 23, 2005

 Exhibit 4.6 
  

Dated as of December 23, 2005 
  
 TABERNA PREFERRED FUNDING IV, LTD., 
 as Issuer, 
  
 TABERNA PREFERRED FUNDING IV,
INC., 
 as Co-Issuer 
  
 and 
  
 JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, 
 as Trustee 
  

  
 INDENTURE 
  

 Table of Contents 
  

					
	 	  	 	  	Page

	 ARTICLE I
	  	 DEFINITIONS AND INTERPRETATION
	  	3
			
	 Section 1.1.
	  	 Definitions
	  	3
			
	 Section 1.2.
	  	 Assumptions, Calculations and Determinations as to Collateral Debt Securities, Etc.
	  	52
			
	 Section 1.3.
	  	 Rules of Construction
	  	54
			
	 ARTICLE II
	  	 THE NOTES
	  	54
			
	 Section 2.1.
	  	 Forms Generally
	  	54
			
	 Section 2.2.
	  	 Authorized Amount; Note Interest Rate; Stated Maturity; Denominations
	  	55
			
	 Section 2.3.
	  	 Execution, Authentication, Delivery and Dating
	  	57
			
	 Section 2.4.
	  	 Registration, Transfer and Exchange of Notes and Combination Notes
	  	58
			
	 Section 2.5.
	  	 Mutilated, Defaced, Destroyed, Lost or Stolen Notes
	  	77
			
	 Section 2.6.
	  	 Payment of Principal and Interest and the Commitment Fee; Rights Preserved
	  	78
			
	 Section 2.7.
	  	 Persons Deemed Owners
	  	82
			
	 Section 2.8.
	  	 Cancellation
	  	83
			
	 Section 2.9.
	  	 Combination Notes
	  	83
			
	 ARTICLE III
	  	 CONDITIONS PRECEDENT
	  	84
			
	 Section 3.1.
	  	 General Provisions
	  	84
			
	 Section 3.2.
	  	 Security for Notes
	  	87
			
	 Section 3.3.
	  	 Custodianship; Transfer of Collateral Debt Securities and Eligible Investments
	  	89

  

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 Table of Contents 
 (continued) 
  

					
	 	  	 	  	Page

			
	 ARTICLE IV
	  	 SATISFACTION AND DISCHARGE
	  	90
			
	 Section 4.1.
	  	 Satisfaction and Discharge of Indenture
	  	90
			
	 Section 4.2.
	  	 Application of Trust Money
	  	92
			
	 Section 4.3.
	  	 Repayment of Monies Held by Paying Agent
	  	92
			
	 ARTICLE V
	  	 EVENTS OF DEFAULT; REMEDIES
	  	92
			
	 Section 5.1.
	  	 Events of Default
	  	92
			
	 Section 5.2.
	  	 Acceleration of Maturity; Rescission and Annulment
	  	94
			
	 Section 5.3.
	  	 Collection of Indebtedness and Suits for Enforcement by Trustee
	  	95
			
	 Section 5.4.
	  	 Remedies
	  	97
			
	 Section 5.5.
	  	 Preservation of Collateral
	  	99
			
	 Section 5.6.
	  	 Trustee May Enforce Claims Without Possession of Notes
	  	101
			
	 Section 5.7.
	  	 Application of Money Collected
	  	101
			
	 Section 5.8.
	  	 Limitation on Suits
	  	101
			
	 Section 5.9.
	  	 Unconditional Rights of Noteholders to Receive Principal, Interest and the Commitment Fee
	  	102
			
	 Section 5.10.
	  	 Restoration of Rights and Remedies
	  	102
			
	 Section 5.11.
	  	 Rights and Remedies Cumulative
	  	102
			
	 Section 5.12.
	  	 Delay or Omission Not Waiver
	  	102
			
	 Section 5.13.
	  	 Control by Controlling Class
	  	103

  

 -ii- 

 Table of Contents 
 (continued) 
  

					
	 	  	 	  	Page

			
	 Section 5.14.
	  	 Waiver of Past Defaults
	  	103
			
	 Section 5.15.
	  	 Undertaking for Costs
	  	104
			
	 Section 5.16.
	  	 Waiver of Stay or Extension Laws
	  	104
			
	 Section 5.17.
	  	 Sale of Collateral
	  	104
			
	 Section 5.18.
	  	 Action on the Notes
	  	105
			
	 ARTICLE VI
	  	 THE TRUSTEE
	  	106
			
	 Section 6.1.
	  	 Certain Duties and Responsibilities
	  	106
			
	 Section 6.2.
	  	 Notice of Default
	  	107
			
	 Section 6.3.
	  	 Certain Rights of Trustee
	  	108
			
	 Section 6.4.
	  	 Authenticating Agents
	  	109
			
	 Section 6.5.
	  	 Not Responsible for Recitals or Issuance of Notes
	  	110
			
	 Section 6.6.
	  	 May Hold Notes
	  	110
			
	 Section 6.7.
	  	 Money Held in Trust
	  	110
			
	 Section 6.8.
	  	 Compensation and Reimbursement
	  	110
			
	 Section 6.9.
	  	 Corporate Trustee Required; Eligibility
	  	112
			
	 Section 6.10.
	  	 Resignation and Removal; Appointment of Successor
	  	112
			
	 Section 6.11.
	  	 Acceptance of Appointment by Successor
	  	114
			
	 Section 6.12.
	  	 Merger, Conversion, Consolidation or Succession to Business of Trustee
	  	114
			
	 Section 6.13.
	  	 Co-Trustees
	  	115
			
	 Section 6.14.
	  	 Certain Duties Related to Delayed Payment of Proceeds
	  	116
			
	 Section 6.15.
	  	 Representations and Warranties of the Bank
	  	117

  

 -iii- 

 Table of Contents 
 (continued) 
  

					
	 	  	 	  	Page

			
	 Section 6.16.
	  	 Exchange Offers
	  	118
			
	 Section 6.17.
	  	 Fiduciary for Noteholders Only; Agent For Other Secured Parties
	  	118
			
	 ARTICLE VII
	  	 COVENANTS
	  	118
			
	 Section 7.1.
	  	 Payment of Principal, Interest and the Commitment Fee
	  	118
			
	 Section 7.2.
	  	 Maintenance of Office or Agency
	  	119
			
	 Section 7.3.
	  	 Money for Payments to be Held in Trust
	  	119
			
	 Section 7.4.
	  	 Existence of the Co-Issuers
	  	121
			
	 Section 7.5.
	  	 Protection of Collateral
	  	122
			
	 Section 7.6.
	  	 Opinions as to Collateral
	  	124
			
	 Section 7.7.
	  	 Performance of Obligations
	  	124
			
	 Section 7.8.
	  	 Negative Covenants
	  	125
			
	 Section 7.9.
	  	 Statement as to Compliance
	  	127
			
	 Section 7.10.
	  	 Co-Issuers May Consolidate, Etc., Only on Certain Terms
	  	127
			
	 Section 7.11.
	  	 Successor Substituted
	  	130
			
	 Section 7.12.
	  	 No Other Business
	  	130
			
	 Section 7.13.
	  	 Annual Rating Review
	  	130
			
	 Section 7.14.
	  	 Reporting
	  	131
			
	 Section 7.15.
	  	 Calculation Agent
	  	131
			
	 Section 7.16.
	  	 Listing
	  	132
			
	 Section 7.17.
	  	 Amendment of Certain Documents
	  	132

  

 -iv- 

 Table of Contents 
 (continued) 
  

					
	 	  	 	  	Page

			
	 Section 7.18.
	  	 Use of Uninvested Proceeds to Purchase Additional Collateral Debt Securities Prior to Ramp-Up Completion Date, Subject to the Ratings
Confirmation
	  	132
			
	 Section 7.19.
	  	 Compliance with Collateral Purchase Agreements
	  	134
			
	 Section 7.20.
	  	 Section 3(c)(7) Procedures
	  	134
			
	 Section 7.21.
	  	 Fiscal Year
	  	136
			
	 Section 7.22.
	  	 Restrictions With Respect to Certain Activities Relating to the Collateral
	  	136
			
	 ARTICLE VIII
	  	 SUPPLEMENTAL INDENTURES
	  	136
			
	 Section 8.1.
	  	 Supplemental Indentures Without Consent of Noteholders
	  	136
			
	 Section 8.2.
	  	 Supplemental Indentures with Consent of Noteholders
	  	138
			
	 Section 8.3.
	  	 Execution of Supplemental Indentures
	  	141
			
	 Section 8.4.
	  	 Effect of Supplemental Indentures
	  	141
			
	 Section 8.5.
	  	 Reference in Notes to Supplemental Indentures
	  	142
			
	 Section 8.6.
	  	 Class A-2 Agency and Amending Agreement
	  	142
			
	 ARTICLE IX
	  	 REDEMPTION OF NOTES
	  	142
			
	 Section 9.1.
	  	 Redemption of Notes
	  	142
			
	 Section 9.2.
	  	 Notice to Trustee of Optional Redemption and Tax Redemption
	  	144
			
	 Section 9.3.
	  	 Notice of Auction Call Redemption, Optional Redemption or Tax Redemption or Maturity by the Co-Issuers
	  	144
			
	 Section 9.4.
	  	 Notes Payable on Redemption Date
	  	145

  

 -v- 

 Table of Contents 
 (continued) 
  

					
	 	  	 	  	Page

			
	 Section 9.5.
	  	 Auction Call Redemption
	  	146
			
	 Section 9.6.
	  	 Borrowing
	  	148
			
	 Section 9.7.
	  	 Redemption and Disposition of Combination Notes
	  	148
			
	 ARTICLE X
	  	 ACCOUNTS, ACCOUNTINGS AND RELEASES
	  	149
			
	 Section 10.1.
	  	 Collection of Money
	  	149
			
	 Section 10.2.
	  	 Principal Collection Account; Interest Collection Account; Custodial Account
	  	149
			
	 Section 10.3.
	  	 Payment Account
	  	152
			
	 Section 10.4.
	  	 Expense Account, Semi-Annual Interest Reserve Account, Interest Reserve Account and First Distribution Date Reserve Account
	  	152
			
	 Section 10.5.
	  	 Uninvested Proceeds Account
	  	154
			
	 Section 10.6.
	  	 Hedge Counterparty Collateral Account
	  	155
			
	 Section 10.7.
	  	 Reports by Trustee
	  	155
			
	 Section 10.8.
	  	 Accountings
	  	156
			
	 Section 10.9.
	  	 Release of Securities
	  	163
			
	 Section 10.10.
	  	 Reports by Independent Accountants
	  	164
			
	 Section 10.11.
	  	 Reports to Rating Agencies, Etc.
	  	164
			
	 Section 10.12.
	  	 Tax Matters
	  	165
			
	 Section 10.13.
	  	 Posting of Documents on Repository
	  	165
			
	 Section 10.14.
	  	 Consent to Posting of Documents on Repository
	  	166

  

 -vi- 

 Table of Contents 
 (continued) 
  

					
	 	  	 	  	Page

			
	 ARTICLE XI
	  	 APPLICATION OF MONIES
	  	166
			
	 Section 11.1.
	  	 Disbursements of Monies from Payment Account
	  	166
			
	 Section 11.2.
	  	 Trust Accounts
	  	173
			
	 ARTICLE XII
	  	 SALE OF COLLATERAL DEBT SECURITIES
	  	173
			
	 Section 12.1.
	  	 Sale of Collateral Debt Securities
	  	173
			
	 Section 12.2.
	  	 Conditions Applicable to all Transactions Involving Sales
	  	175
			
	 ARTICLE XIII
	  	 SECURED PARTIES’ RELATIONS
	  	176
			
	 Section 13.1.
	  	 Subordination
	  	176
			
	 Section 13.2.
	  	 Standard of Conduct
	  	177
			
	 ARTICLE XIV
	  	 MISCELLANEOUS
	  	178
			
	 Section 14.1.
	  	 Form of Documents Delivered to Trustee
	  	178
			
	 Section 14.2.
	  	 Acts of Noteholders and Hedge Counterparty
	  	179
			
	 Section 14.3.
	  	 Notices, Etc., to Trustee, the Issuer, the Co-Issuer, the Collateral Manager and the Rating Agencies
	  	179
			
	 Section 14.4.
	  	 Notices and Reports to Noteholders; Waiver
	  	181
			
	 Section 14.5.
	  	 Effect of Headings and Table of Contents
	  	182
			
	 Section 14.6.
	  	 Successors and Assigns
	  	182
			
	 Section 14.7.
	  	 Severability
	  	182
			
	 Section 14.8.
	  	 Benefits of Indenture
	  	182
			
	 Section 14.9.
	  	 Governing Law
	  	183
			
	 Section 14.10.
	  	 Submission to Jurisdiction
	  	183
			
	 Section 14.11.
	  	 Counterparts
	  	183
			
	 Section 14.12.
	  	 Judgment Currency
	  	183
			
	 Section 14.13.
	  	 Confidentiality; Confidential Treatment of Documents
	  	184

  

 -vii- 

 Table of Contents 
 (continued) 
  

					
	 	  	 	  	Page

			
	 ARTICLE XV
	  	 ASSIGNMENT OF CERTAIN AGREEMENTS
	  	185
			
	 Section 15.1.
	  	 Assignment
	  	185
			
	 Section 15.2.
	  	 No Impairment
	  	185
			
	 Section 15.3.
	  	 Termination, Etc.
	  	185
			
	 Section 15.4.
	  	 Issuer Agreements, Etc.
	  	186
			
	 ARTICLE XVI
	  	 HEDGE AGREEMENTS
	  	187
			
	 Section 16.1.
	  	 Hedge Agreements
	  	187

  

 -viii- 

 TABLE OF CONTENTS 
 (continued) 
  

			
	 SCHEDULES
	  	 
		
	 Schedule A
	  	Schedule of Collateral Debt Securities
	 Schedule B
	  	LIBOR Formula
	 Schedule C
	  	Auction Procedures
	 Schedule D
	  	Asset Classes Eligible to be Notched to determine S&P Rating
		
	 EXHIBITS
	  	 
		
	 Exhibit A-1
	  	Form of Regulation S Global Note
	 Exhibit A-2
	  	Form of Restricted Global Note
	 Exhibit B-1
	  	Form of Regulation S Definitive Note
	 Exhibit B-2
	  	Form of Restricted Definitive Note
	 Exhibit C-1
	  	Form of Rule 144A Note Transfer Certificate
	 Exhibit C-2
	  	Form of Regulation S Note Transfer Certificate
	 Exhibit D
	  	Form of Funding Certificate
	 Exhibit E
	  	Form of Opinion of Mayer, Brown, Rowe & Maw LLP
	 Exhibit F
	  	Form of Opinion of Counsel to the Collateral Manager
	 Exhibit G
	  	Form of Opinion of Counsel to the Trustee
	 Exhibit H
	  	Form of Opinion of Cayman Islands Counsel to the Issuer
	 Exhibit I
	  	[Reserved]
	 Exhibit J
	  	Form of Opinion of Internal Counsel to Hedge Counterparty
	 Exhibit K
	  	Perfection Representations, Warranties and Covenants
	 Exhibit L
	  	Form of Beneficial Owner Certificate
	 Exhibit M
	  	Form of Section 3(c)(7) Reminder Notice
	 Exhibit N
	  	Form of Important Section 3(c)(7) Notice
	 Exhibit O
	  	Fitch Recovery Rate Matrix
	 Exhibit P
	  	Standard & Poor’s Recovery Rate Matrix
	 Exhibit Q
	  	Moody’s Recovery Rate Matrix

  

 -ix- 

 THIS INDENTURE, dated as of December 23, 2005, between TABERNA PREFERRED FUNDING IV, LTD., an
exempted company incorporated under the laws of the Cayman Islands (the “Issuer”), TABERNA PREFERRED FUNDING IV, INC., a corporation incorporated under the laws of the State of Delaware (the “Co-Issuer” and, together with the
Issuer, the “Co-Issuers”), and JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, a national banking association organized under the laws of the United States, as trustee (in such capacity, together with its permitted successors in the trusts
hereunder, called the “Trustee”). 
  
 PRELIMINARY
STATEMENT 
  
 The Co-Issuers are duly authorized to execute and
deliver this Indenture to provide for the issuance of the Notes and Combination Notes as provided in this Indenture. All covenants and agreements made by the Co-Issuers herein are for the benefit and security of the Noteholders, the Trustee, the
Hedge Counterparty, the Collateral Manager and the Collateral Administrator (collectively, the “Secured Parties”). The Co-Issuers are entering into this Indenture, and the Trustee is accepting the trusts created hereby, for good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged. 
  
 All things necessary to make this Indenture a valid agreement of the Co-Issuers in accordance with its terms have been done. 
  
 GRANTING CLAUSES 
  
 The Issuer hereby Grants to the Trustee, for the benefit and security of the Secured Parties, all of its right, title and interest in, to and under, in
each case, whether now owned or existing, or hereafter acquired or arising, all accounts, general intangibles, chattel paper, instruments, securities, investment property and any and all other property (other than Excepted Property) of any type or
nature owned by it, including (a) the Collateral Debt Securities and Equity Securities (listed, as of the Closing Date, in the Schedule of Collateral Debt Securities) which the Issuer causes to be delivered to the Trustee (directly or through a
Securities Intermediary) herewith, all payments thereon or with respect thereto, all Collateral Debt Securities and Equity Securities which are delivered to the Trustee (directly or through a Securities Intermediary) after the Closing Date pursuant
to the terms hereof and all payments thereon or with respect thereto, (b) the Accounts, Eligible Investments purchased with funds on deposit in said Accounts and all income from the investment of funds therein, (c) the Collateral
Management Agreement, the Hedge Agreements and the Hedge Collateral (if any), and the Collateral Administration Agreement, (d) all Cash and Money delivered to the Trustee (directly or through a Securities Intermediary) and (e) all
proceeds, accessions, profits, income benefits, substitutions and replacements, whether voluntary or involuntary, of and to any of the property of the Issuer described in the preceding clauses (collectively, the “Collateral”). Such Grants
are made, however, in trust, to secure the Notes and the Combination Notes equally and ratably without prejudice, priority or distinction between any Note and any other Note by reason of difference in time of issuance or otherwise, except as
expressly provided in this Indenture, and to secure (i) the payment of all amounts due on the Notes and the Combination Notes in accordance with their respective terms, (ii) the payment of all other sums payable under this Indenture
(including the Collateral Management Fee and all amounts payable to the Collateral Manager under this Indenture and the Collateral Management Agreement), (iii) the payment of all 

  

 1 

 
amounts due from the Issuer to the Hedge Counterparty under the Hedge Agreements in accordance with their respective terms and (iv) compliance with the
provisions of this Indenture and the Hedge Agreements, all as provided in this Indenture and the Hedge Agreements (collectively, the “Secured Obligations”). 
  
 Except to the extent otherwise provided in this Indenture, the Issuer does hereby constitute and irrevocably appoint the
Trustee the true and lawful attorney of the Issuer, with full power (in the name of the Issuer or otherwise), to exercise all rights of the Issuer with respect to the Collateral held for the benefit and security of the Secured Parties, and to ask,
require, demand, receive, settle, compromise, compound and give acquittance for any and all moneys and claims for moneys due and to become due under or arising out of any of the Collateral held for the benefit of and security of the Secured Parties,
to endorse any checks or other instruments or orders in connection therewith and to file any claims or take any action or institute any proceedings which the Trustee may deem to be necessary or advisable in the premises. The power of attorney
Granted pursuant to this Indenture and all authority hereby conferred are granted and conferred solely to protect the Trustee’s interest in the (i) Collateral held for the benefit and security of the Secured Parties, and shall not impose
any duty upon the Trustee to exercise any power. This power of attorney shall be irrevocable as one coupled with an interest prior to the payment in full of all the obligations secured hereby. 
  
 Except to the extent otherwise provided in this Indenture, this Indenture
shall constitute a security agreement under the laws of the State of New York applicable to agreements made and to be performed therein. Upon the occurrence of any Event of Default with respect to the Notes, and in addition to any other rights
available under this Indenture or any other instruments included in the Collateral held for the benefit and security of the Secured Parties, or otherwise available at law or in equity, the Trustee shall have all rights and remedies of a secured
party on default under the laws of the State of New York and other applicable law to enforce the assignments and security interests contained herein and, in addition, shall have the right, subject to compliance with any mandatory requirements of
applicable law, to sell or apply any rights and other interests assigned or pledged hereby in accordance with the terms hereof at public or private sale. 
  
 It is expressly agreed that anything therein contained to the contrary notwithstanding, the Issuer shall remain liable under any instruments included in
the Collateral to perform all the obligations assumed by it thereunder, all in accordance with and pursuant to the terms and provisions thereof, and except as otherwise expressly provided herein, the Trustee shall not have any obligations or
liabilities under such instruments by reason of or arising out of this Indenture, nor shall the Trustee be required or obligated in any manner to perform or fulfill any obligations of the Issuer under or pursuant to such instruments or to make any
payment, to make any inquiry as to the nature or sufficiency of any payment received by it, to present or file any claim, or to take any action to collect or enforce the payment of any amounts which may have been assigned to it or to which it may be
entitled at any time or times. 
  
 The designation of the Trustee
in any transfer document or record is intended and shall be deemed, first, to refer to the Trustee as custodian on behalf of the Issuer and, second, to refer to the Trustee as secured party on behalf of the Secured Parties; provided, that the
Grant 

  

 2 

 
made by the Issuer to the Trustee pursuant to the Granting Clauses hereof shall apply to any Collateral bearing such designation. 
  
 The Trustee acknowledges such Grants, accepts the trusts hereunder in
accordance with the provisions hereof, and agrees to perform the duties herein to the best of its ability such that the interests of the Secured Parties may be adequately and effectively protected. 
  
 ARTICLE I 
  
 DEFINITIONS AND INTERPRETATION 
  
 Section 1.1. Definitions 
  
 (a) Except as otherwise specified herein or as the context may otherwise require, the following terms have the respective
meanings set forth below for all purposes of this Indenture. Whenever any reference is made to an amount, the determination or calculation of which is governed by Section 1.2, the provisions of Section 1.2 shall be applicable to such
determination or calculation, whether or not reference is specifically made to Section 1.2, unless some other method of determination or calculation is expressly specified in the particular provision. 
  
 “Account” means any of the Interest Collection Account, the Hedge
Counterparty Collateral Account, the Principal Collection Account, the Payment Account, the Expense Account, the First Distribution Date Reserve Account, the Interest Reserve Account, the Semi-Annual Interest Reserve Account, the Uninvested Proceeds
Account and the Custodial Account, each of which may be sub-accounts of one account and may include any number of sub-accounts that the Trustee deems necessary or appropriate. 
  
 “Account Control Agreement” means the Securities Account Control Agreement dated as of the Closing Date between
the Trustee and the Custodian, and acknowledged by the Issuer. 
  
 “Accountants’ Report” means a report of a firm of Independent certified public accountants of recognized national reputation appointed by the Issuer pursuant to Section 10.8(a), which may be the firm of Independent
accountants that reviews or performs procedures with respect to the financial reports prepared by the Issuer or the Collateral Manager. 
  
 “Act” and “Acts of Noteholders” have the respective meanings specified in Section 14.2. 
  
 “Administration Agreement” means the Administration Agreement dated
December 23, 2005, between the Administrator and the Issuer. 
  
 “Administrative Expenses” means the amounts due or accrued on any Distribution Date and payable by the Issuer or the Co-Issuer (including in respect of any indemnities) to (i) the Trustee pursuant to Section 6.8 or any
co-trustee appointed pursuant to Section 6.13, (ii) the Bank under the Collateral Administration Agreement, (iii) the Preferred Share Paying Agent under the Preferred Share Paying Agency Agreement, (iv) the Administrator under
the Administration Agreement, (v) the Class A-2 Auction Agent under the Class A-2 Agency and 

  

 3 

 
Amending Agreement, (vi) the Independent accountants, agents and counsel of the Issuer for reasonable fees and expenses (including amounts payable in
connection with the preparation of tax forms on behalf of the Co-Issuers), (vii) the Rating Agencies for fees and expenses in connection with any rating (including the annual fee payable with respect to the monitoring of any rating) of the
Notes, including fees and expenses due or accrued in connection with any rating of the Collateral Debt Securities, (viii) the Collateral Manager under this Indenture and the Collateral Management Agreement (including amounts payable pursuant to
Section 10 of the Collateral Management Agreement), (ix) any other Person in respect of any governmental fee, charge or tax in relation to the Issuer or the Co-Issuer (in each case as certified by an Authorized Officer of the Issuer or the
Co-Issuer to the Trustee) and (x) any other Person in respect of any other fees or expenses (including indemnities) permitted under this Indenture and the documents delivered pursuant to or in connection with this Indenture and the Notes;
provided, that Administrative Expenses shall not include (a) any amounts due or accrued with respect to the actions taken on or in connection with the Closing Date, (b) amounts payable in respect of the Notes, (c) amounts
payable under each Hedge Agreement and (d) any Collateral Management Fee payable pursuant to the Collateral Management Agreement. 
  
 “Administrator” means Walkers SPV Limited and any successor thereto appointed under the Administration Agreement. 
  
 “Affected Class” means, in relation to any Tax Redemption, any
Class of Notes that, as a result of the occurrence of a Tax Event, has not received 100% of the aggregate amount of principal and interest payable to such Class on any Distribution Date. 
  
 “Affiliate” or “Affiliated” with respect to a specified Person, means (a) any
other Person who, directly or indirectly, is in control of, or controlled by, or is under common control with, such Person or (b) any other Person who is a director, Officer, employee, member or general partner of such Person. For the purposes
of this definition, “control” of a Person means the power, direct or indirect, (i) to vote more than 50% of the securities having ordinary voting power for the election of directors of such Person or (ii) to direct or cause the
direction of the management and policies of such Person whether by contract or otherwise. 
  
 “Aggregate Outstanding Principal Amount” means, when used with respect to any of the Notes at any time, the aggregate principal amount of such Notes Outstanding at such time. Except as otherwise provided
herein, the Aggregate Outstanding Principal Amount of Class A-1 Notes at any time shall not include the Aggregate Undrawn Amount, the Aggregate Outstanding Principal Amount of any Class C Notes at any time shall include all Class C Deferred
Interest, the Aggregate Outstanding Principal Amount of the Class D Notes at any time shall include all Class D Deferred Interest and the Aggregate Outstanding Principal Amount of any Class E Notes shall include all Class E Deferred Interest.

  
 “Aggregate Principal Balance” means, when used with
respect to any Pledged Securities as of any date of determination, the sum of the Principal Balances on such date of determination of all such Pledged Securities. 
  
 “Aggregate Ramp-Up Par Amount” means U.S. $650,000,000. 
  

 4 

 “Aggregate Undrawn Amount” means at any time, with respect to the Class A-1 Notes, the
aggregate amount of the unutilized Commitments in respect of all Class A-1 Notes. 
  
 “Applicable Recovery Rate” means, with respect to any Collateral Debt Security, the least of the Fitch Recovery Rate for such Collateral Debt Security, the Moody’s Recovery Rate for such Collateral Debt
Security and the Standard & Poor’s Recovery Rate for such Collateral Debt Security. 
  
 “Auction” has the meaning specified in Section 9.5. 
  
 “Auction Call Redemption” has the meaning specified in Section 9.5. 
  
 “Auction Call Redemption Amount” means the sum of (x) the
Total Senior Redemption Amount, plus (y) an amount equal to the greater of (1)(A) the aggregate original purchase price of the Preferred Shares, minus (B) the aggregate amount of all cash distributions on the Preferred
Shares (whether in respect of dividends or redemption payments made to the Preferred Share Paying Agent for distribution to the Preferred Shareholders on or prior to the relevant Auction Date) and (2) zero. 
  
 “Auction Date” has the meaning specified in Section 9.5.

  
 “Auction Procedures” has the meaning specified in
Section 9.5. 
  
 “Auction Purchase Agreement” has
the meaning specified in Schedule C. 
  
 “Authenticating
Agent” means, with respect to the Notes or any Class of Notes, the Person designated by the Trustee, if any, to authenticate such Notes or such Class of Notes on behalf of the Trustee pursuant to Section 6.4. 
  
 “Authorized Denomination” means the denominations specified in
Section 2.2. 
  
 “Authorized Officer” means
(i) with respect to the Issuer or the Co-Issuer, any Officer of the Issuer or the Co-Issuer who is authorized to act for the Issuer or the Co-Issuer, as applicable, in matters relating to, and binding upon, the Issuer or the Co-Issuer,
(ii) with respect to the Collateral Manager, any Officer, employee or agent of the Collateral Manager or its Affiliates who is authorized to act for the Collateral Manager in matters relating to, and binding upon, the Collateral Manager with
respect to the subject matter of the request, certificate or order in question and (iii) with respect to the Trustee or any other bank or trust company acting as trustee of an express trust or as custodian, a Trust Officer. Each party may
receive and accept a certification of the authority of any other party as conclusive evidence of the authority of any person to act, and such certification may be considered as in full force and effect until receipt by such other party of written
notice to the contrary. 
  
 “Balance” means, at any
time, with respect to Cash or Eligible Investments in any Account at such time, the aggregate of (i) the current balance of Cash, demand deposits, time deposits, certificates of deposit and federal funds; (ii) the principal amount of
interest-bearing corporate and government securities, money market accounts and repurchase obligations; and 

  

 5 

 
(iii) the purchase price (but not greater than the face amount) of non-interest-bearing government and corporate securities and commercial paper. 

 
 “Bank” means JPMorgan Chase Bank, National Association, a
national banking association organized under the laws of the United States, in its individual capacity and not as Trustee. 
  
 “Bankruptcy Code” means the United States Bankruptcy Code, Title 11 of the United States Code, as amended, or, where the context requires, the
applicable insolvency provisions of the laws of the Cayman Islands. 
  
 “Base Collateral Management Fee” means the fee payable to the Collateral Manager in arrears on each Distribution Date pursuant to Section 8 of the Collateral Management Agreement (or any comparable provision in any
replacement collateral management agreement), in an amount (which shall be certified by the Collateral Manager to the Trustee) equal to 0.20% per annum of the Quarterly Asset Amount for such Due Period and subject to the Priority of
Payments. 
  
 “Basis Swap” means the transaction under
the ISDA Master Agreement and Schedule, dated as of the Closing Date, between the Issuer and the Basis Swap Counterparty. 
  
 “Basis Swap Counterparty” means the Initial Basis Swap Counterparty or any permitted assignee or successor under the Basis Swap, which assignee
or successor satisfies the Rating Condition. 
  
 “Beneficial
Owner” means any Person owning an interest in a Global Note as reflected on the books of the Depositary or on the books of a Depositary Participant or on the books of an indirect participant for which a Depositary Participant of the Depositary
acts as agent. 
  
 “Board of Directors” means, with
respect to the Issuer, the directors of the Issuer duly appointed in accordance with the Issuer Charter, and, with respect to the Co-Issuer, the directors of the Co-Issuer duly appointed by the shareholders of the Co-Issuer. 
  
 “Board Resolution” means, with respect to the Co-Issuers, a
resolution of the Board of Directors. 
  
 “Business Day”
means a day on which commercial banks and foreign exchange markets settle payments in each of New York City, London and the city in which the Corporate Trust Office of the Trustee is located and, in the case of the final payment of principal of a
Note, the place of presentation of such Note. 
  
 “Calculation Agent” has the meaning specified in Section 7.15. 
  
 “Calculation Amount” means, with respect to any Defaulted Security or Deferred Interest Collateral Debt Security at any time, the product of the Applicable Recovery Rate and the Principal Balance of such
Defaulted Security or Deferred Interest Collateral Debt Security. 
  

 6 

 “Call Premium” means any premiums received in connection with the redemption of any Collateral
Debt Securities. 
  
 “Capitalized Leases” means all
leases that have been or should be, in accordance with GAAP, recorded as capitalized leases. 
  
 “Cash” means such funds denominated with currency of the United States of America as at the time shall be legal tender for payment of all public and private debts, including funds credited to a deposit
account or a Securities Account. 
  
 “Certificate of
Authentication” has the meaning specified in Section 2.3(f). 
  
 “Certificated Security” has the meaning specified in Section 8-102(a)(4) of the UCC. 
  
 “Certifying Person” means any Person who certifies substantially in the form of Exhibit L that it is the owner of a beneficial interest in a
Global Note. 
  
 “Class” means each of the
Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class B-1 Notes, Class B-2 Notes, Class C-1 Notes, Class C-2 Notes, Class C-3 Notes, Class D-1 Notes, Class D-2 Notes and Class E Notes, respectively. 
  
 “Class A Notes” means the Class A-1 Notes, the Class A-2
Notes and the Class A-3 Notes. 
  
 “Class A/B Coverage
Tests” means the Class A/B Overcollateralization Test and the Class A/B Interest Coverage Test. 
  
 “Class A/B Interest Coverage Ratio,” “Class C Interest Coverage Ratio,” “Class D Interest Coverage Ratio” or “Class E
Interest Coverage Ratio” means, as of any Measurement Date, the ratio (expressed as a percentage) obtained by dividing: 
  
 (a) the sum of (i) the scheduled interest payments due (in each case regardless of whether the due date for any such interest payment
has yet occurred) in the Due Period in which such Measurement Date occurs on (x) the Collateral Debt Securities and (y) any Eligible Investments held in the Collection Accounts (whether such Eligible Investments were purchased with
Interest Proceeds or Principal Proceeds), plus (ii) any fees actually received by the Issuer during such Due Period that constitute Interest Proceeds, plus (iii) the net amount, if any, scheduled to be paid to the Issuer by
the Hedge Counterparty under the Hedge Agreements on the Distribution Date relating to such Due Period, minus (iv) the amount, if any, scheduled to be paid during such Due Period or on the Distribution Date relating to such Due Period
for taxes and filing and registration fees owed by the Issuer plus (v) the amount, if any, in the First Distribution Date Reserve Account, the Interest Reserve Account and the amount, if any, which will be transferred from the
Semi-Annual Interest Reserve Account to the Payment Account on the business day prior to the Distribution Date relating to such Due Period, minus (vi) the amount, if any, scheduled to be paid during such Due Period or on the Distribution
Date relating to such Due Period under Section 11.1(a)(i)(2) (x) to the Trustee, the Preferred Share 

  

 7 

 
Paying Agent, the Collateral Administrator, the Class A-2 Auction Agent and the Note Registrar of accrued and unpaid fees and expenses owing to them
under this Indenture, the Preferred Share Paying Agency Agreement and the Collateral Administration Agreement and (y) for other accrued and unpaid Administrative Expenses of the Issuer (excluding Collateral Management Fee and principal of and
interest on the Notes), to the extent all such payments pursuant to this clause (vi)(y) do not exceed for any Distribution Date an amount equal to U.S.$100,000, minus (vii) the amount, if any, scheduled to be paid on the Distribution
Date relating to such Due Period to the Collateral Manager in respect of accrued and unpaid Base Collateral Management Fee under Section 11.1(a)(i)(3) minus (viii) the portion of the scheduled distributions in clause
(i) required to be deposited into the Semi-Annual Interest Reserve Account; by 
  
 (b) an amount equal to (i) the net amount, if any, scheduled to be paid to the Hedge Counterparty by the Issuer under the Hedge
Agreements on the Distribution Date relating to such Due Period, plus (ii) (A) in the case of the Class A/B Interest Coverage Ratio, the scheduled interest on the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes and
Class B Notes (including any Defaulted Interest thereon and any accrued interest on such Defaulted Interest) and the Commitment Fee Amount payable on the Distribution Date relating to such Due Period, (B) in the case of the Class C Interest
Coverage Ratio, the scheduled interest on the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class B Notes and Class C Notes (including any Defaulted Interest thereon, any accrued interest on such Defaulted Interest, any accrued
interest on Class C Deferred Interest, but excluding any Class C Deferred Interest) and the Commitment Fee Amount payable on the Distribution Date relating to such Due Period, (C) in the case of the Class D Interest Coverage Ratio, the
scheduled interest on the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class B Notes, Class C Notes and Class D Notes (including any Defaulted Interest thereon, any accrued interest on such Defaulted Interest, any accrued
interest on Class C Deferred Interest and Class D Deferred Interest, but excluding any Class C Deferred Interest or Class D Deferred Interest) and the Commitment Fee Amount payable on the Distribution Date relating to such Due Period and (D) in
the case of the Class E Interest Coverage Ratio, the scheduled interest on the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class B Notes, Class C Notes, Class D Notes and Class E Notes (including any Defaulted Interest thereon,
any accrued interest on such Defaulted Interest, any accrued interest on Class C Deferred Interest, Class D Deferred Interest and Class E Deferred Interest, but excluding any Class C Deferred Interest, Class D Deferred Interest or Class E Deferred
Interest) and the Commitment Fee Amount payable on the Distribution Date relating to such Due Period. 
  
 For the purpose of determining compliance with any Interest Coverage Test, there will be excluded all scheduled payments of interest or principal on
Defaulted Securities and Deferred Interest Collateral Debt Securities and any payment, including any Hedge Receipt Amount payable to the Issuer by the Hedge Counterparty, that will not be made in cash or received when due, as determined by the
Collateral Manager in its reasonable judgment. For purposes of calculating any Interest Coverage Ratio, (i) the expected interest income on floating rate, fixed rate and fixed/floating rate Collateral Debt Securities and Eligible Investments
and under the Hedge Agreements and the expected interest payable on the Notes will be calculated using the interest rates applicable thereto on the applicable Measurement Date, (ii) accrued 

  

 8 

 
original issue discount on Eligible Investments will be deemed to be a scheduled interest payment thereon due on the date such original issue discount is
scheduled to be paid, (iii) payments made by the Basis Swap Counterparty pursuant to the Basis Swap will not constitute scheduled interest on any Class of Notes and (iv) it will be assumed that no principal payments are made on the Notes
during the applicable periods. 
  
 “Class A/B Interest
Coverage Test” means a test satisfied on any Measurement Date occurring on or after the Ramp-Up Completion Date and on which any Class A Notes and Class B Notes remain outstanding if the Class A/B Interest Coverage Ratio on such
Measurement Date is equal to or greater than 115.0%. 
  
 “Class A/B Overcollateralization Ratio” means, as of any Measurement Date, the number (expressed as a percentage) calculated by dividing (a) the Net Outstanding Portfolio Collateral Balance on such Measurement Date by
(b) the sum of the (1) aggregate outstanding principal amount of the Class A-1 Notes (including any unfunded Commitments with respect to the Class A-1 Notes) plus (2) the aggregate outstanding principal amount of the
Class A-2 Notes plus (3) the aggregate outstanding principal amount of the Class A-3 Notes plus (4) the aggregate outstanding principal amount of the Class B Notes. 
  
 “Class A/B Overcollateralization Test” means a test satisfied on any Measurement Date occurring on or after the
Ramp-Up Completion Date and on which any Class A Notes or Class B Notes remain outstanding (or if the Commitment Period Termination Date has not occurred) if the Class A/B Overcollateralization Ratio on such Measurement Date is equal to or
greater than 124.3%. 
  
 “Class A-1 Note Redemption
Price” means, with respect to any Distribution Date upon which any Class A-1 Note is subject to redemption pursuant to Section 9.1, an amount (determined without duplication) equal to the sum of (a) 100% of the outstanding
principal amount of such Class A-1 Note being redeemed plus (b) accrued interest through such Redemption Date (including any Defaulted Interest and interest on Defaulted Interest) thereon plus (c) in the case of any
reduction in the related Commitment in respect of any Class A-1 Note, an amount equal to the accrued Commitment Fee. 
  
 “Class A-1 Note Purchase Agreement” means the note purchase agreement dated on or prior to the Closing Date between the Co-Issuers, the Trustee,
Merrill Lynch Pierce Fenner & Smith Incorporated as distribution agent and the Beneficial Owners from time to time of the Class A-1 Notes, as modified and supplemented and in effect from time to time. 
  
 “Class A-1 Notes” means the Class A-1 First Priority Delayed
Draw Senior Secured Floating Rate Notes due May 5, 2036, issued by the Co-Issuers on the Closing Date, that bear interest at a floating rate per annum equal to LIBOR plus 0.37%. 
  
 “Class A-2 Account Control Agreement” means the agreement dated as
of the Closing Date between the Issuer, the Trustee and the Custodian relating to accounts for the Class A-2 Notes. 
  

 9 

 “Class A-2 Agency and Amending Agreement” means the agreement dated as of the Closing Date
between the Co-Issuers, the Trustee and the agent specified therein whereby such agent undertakes to perform certain tasks specified therein on behalf of the Co-Issuers. 
  
 “Class A-2 Auction Agent” means the agent appointed pursuant to the Class A-2 Agency and Amending Agreement.

  
 “Class A-2 Note Redemption Price” means, with
respect to any Distribution Date upon which any Class A-2 Note is subject to redemption pursuant to Section 9.1, an amount (determined without duplication) equal to the sum of (a) 100% of the outstanding principal amount of such
Class A-2 Note being redeemed plus (b) accrued interest through such Redemption Date (including any Defaulted Interest and interest on Defaulted Interest) thereon. 
  
 “Class A-2 Notes” means the Class A-2 Second Priority Senior Secured Floating Rate Notes due May 5,
2036, issued by the Co-Issuers on the Closing Date, that bear interest at a floating rate per annum not to exceed LIBOR plus 1.00%. 
  
 “Class A-3 Note Redemption Price” means, with respect to any Distribution Date upon which any Class A-3 Note is subject to redemption
pursuant to Section 9.1, an amount (determined without duplication) equal to the sum of (a) 100% of the outstanding principal amount of such Class A-3 Note being redeemed plus (b) accrued interest through such Redemption
Date (including any Defaulted Interest and interest on Defaulted Interest) thereon. 
  
 “Class A-3 Notes” means the Class A-3 Third Priority Senior Secured Floating Rate Notes due May 5, 2036, issued by the Co-Issuers on the Closing Date, that bear interest at a floating rate per
annum equal to LIBOR plus 0.55%. 
  
 “Class B Notes”
means the Class B-1 Notes and the Class B-2 Notes. 
  
 “Class
B-1 Note Redemption Price” means, with respect to any Distribution Date upon which any Class B-1 Note is subject to redemption pursuant to Section 9.1, an amount (determined without duplication) equal to the sum of (a) 100% of the
outstanding principal amount of such Class B-1 Note being redeemed plus (b) accrued interest through such Redemption Date (including any Defaulted Interest and interest on Defaulted Interest) thereon. 
  
 “Class B-1 Notes” means the Class B-1 Fourth Priority Secured
Floating Rate Notes due May 5, 2036, issued by the Co-Issuers on the Closing Date, that bear interest at a floating rate per annum equal to LIBOR plus 0.80%. 
  
 “Class B-2 Note Redemption Price” means, with respect to any Distribution Date upon which any Class B-2 Note is
subject to redemption pursuant to Section 9.1, an amount (determined without duplication) equal to the sum of (a) 100% of the outstanding principal amount of such Class B-2 Note being redeemed plus (b) accrued interest through
such Redemption Date (including any Defaulted Interest and interest on Defaulted Interest) thereon plus (c) the excess, if any, of (x) the present value of the scheduled payments of interest and principal which are remaining with
respect to such Class B-2 Note as of such Redemption Date, based on the assumption that no principal is paid on such Class B-2 Note until such Class B-2 Note is paid in full on the Distribution Date occurring in February 2016, and using a discount

  

 10 

 
factor equal to the yield to maturity (calculated as of the 45th day preceding such Redemption Date) on the USD-ISDA-Swap Rate with a maturity no longer than the period of time between such Redemption Date and the Distribution Date occurring in February 2016, plus
0.80% over (y) 100% of the outstanding principal amount of such Class B-2 Note being redeemed. 
  
 “Class B-2 Notes” means the Class B-2 Fourth Priority Secured Fixed Rate Notes due May 5, 2036, issued by the Co-Issuers on the Closing
Date, that bear interest at a fixed rate per annum equal to 5.91%. 
  
 “Class C Coverage Tests” means the Class C Overcollateralization Test and the Class C Interest Coverage Test. 
  
 “Class C Deferred Interest” means, with respect to the Class C Notes, any interest due on such Notes which is not available to be paid as a
result of the operation of the Priority of Payments on any Distribution Date and which is deferred and added to the Aggregate Outstanding Principal Amount of the Class C Notes until the Distribution Date on which such interest is available to be
paid in accordance with the Priority of Payments pursuant to Section 2.6(a). 
  
 “Class C Interest Coverage Test” means a test satisfied on any Measurement Date occurring on or after the Closing Date and on which any Class C Notes remain outstanding if the Class C Interest
Coverage Ratio on such Measurement Date is equal to or greater than 112.5%. 
  
 “Class C Notes” means the Class C-1 Notes, the Class C-2 Notes and the Class C-3 Notes. 
  
 “Class C Overcollateralization Ratio” means, as of any Measurement Date, the number (expressed as a percentage) calculated by dividing
(a) the Net Outstanding Portfolio Collateral Balance on such Measurement Date by (b) (1) the aggregate outstanding principal amount of the Class A-1 Notes (including any unfunded Commitments with respect to the
Class A-1 Notes) plus (2) the aggregate outstanding principal amount of the Class A-2 Notes plus (3) the aggregate outstanding principal amount of the Class A-3 Notes plus (4) the aggregate
outstanding principal amount of the Class B Notes plus (5) the aggregate outstanding principal amount of the Class C Notes (including, without duplication, any Class C Deferred Interest). 
  
 “Class C Overcollateralization Test” means a test satisfied on any
Measurement Date occurring on or after the Ramp-Up Completion Date and on which any Class C Notes remain outstanding if the Class C Overcollateralization Ratio on such Measurement Date is equal to or greater than 108.6%. 
  
 “Class C-1 Note Redemption Price” means, with respect to any
Distribution Date upon which any Class C-1 Note is subject to redemption pursuant to Section 9.1, an amount (determined without duplication) equal to the sum of (a) 100% of the outstanding principal amount of such Class C-1 Note being
redeemed plus (b) accrued interest through such Redemption Date (including any Defaulted Interest and interest on Defaulted Interest and any Deferred Interest and interest on any Deferred Interest) thereon. 
  

 11 

 “Class C-1 Notes” means the Class C-1 Deferrable Fifth Priority Secured Floating Rate Notes due
May 5, 2036, issued by the Co-Issuers on the Closing Date, that bear interest at a floating rate per annum equal to LIBOR plus 1.45%. 
  
 “Class C-2 Note Redemption Price” means, with respect to any Distribution Date upon which any Class C-2 Note is subject to redemption pursuant
to Section 9.1, an amount (determined without duplication) equal to (a) 100% of the outstanding principal amount of such Class C-2 Note being redeemed, plus (b) accrued interest through such Redemption Date (including any
Defaulted Interest and interest on Defaulted Interest and any Deferred Interest and interest on any Deferred Interest) thereon, plus (c) the excess, if any, of (x) the present value of the scheduled payments of interest and
principal which are remaining with respect to such Class C-2 Note as of such Redemption Date, based on the assumption that no principal is paid on such Class C-2 Note until such Class C-2 Note is paid in full on the Distribution Date occurring in
February 2009, and using a discount factor equal to the yield to maturity (calculated as of the 45th day preceding
such Redemption Date) on the USD-ISDA-Swap Rate with a maturity no longer than the period of time between such Redemption Date and the Distribution Date occurring in February 2009, plus 1.45% over (y) 100% of the outstanding principal amount of
such Class C-2 Note being redeemed. 
  
 “Class C-2
Notes” means the Class C-2 Deferrable Fifth Priority Secured Fixed/Floating Rate Notes due May 5, 2036, issued by the Co-Issuers on the Closing Date, that bear interest at a fixed rate per annum equal to 6.247% for the period from
the Closing Date to the last day of the Interest Period ending immediately prior to the Distribution Date in February 2009, and floating rate per annum equal to LIBOR plus 1.45% at all times thereafter. 
  
 “Class C-3 Note Redemption Price” means, with respect to any
Distribution Date upon which any Class C-3 Note is subject to redemption pursuant to Section 9.1, an amount (determined without duplication) equal to (a) 100% of the outstanding principal amount of such Class C-3 Note being redeemed,
plus (b) accrued interest through such Redemption Date (including any Defaulted Interest and interest on Defaulted Interest and any Deferred Interest and interest on any Deferred Interest) thereon, plus (c) the excess, if
any, of (x) the present value of the scheduled payments of interest and principal which are remaining with respect to such Class C-3 Note as of such Redemption Date, based on the assumption that no principal is paid on such Class C-3 Note until
such Class C-3 Note is paid in full on the Distribution Date occurring in February 2011, and using a discount factor equal to the yield to maturity (calculated as of the 45th day preceding such Redemption Date) on the USD-ISDA-Swap Rate with a maturity no longer than the period of time between such Redemption Date and the
Distribution Date occurring in February 2011, plus 1.45% over (y) 100% of the outstanding principal amount of such Class C-3 Note being redeemed. 
  
 “Class C-3 Notes” means the Class C-3 Deferrable Fifth Priority Secured Fixed/Floating Rate Notes due May 5, 2036, issued by the Co-Issuers
on the Closing Date, that bear interest at a fixed rate per annum equal to 6.293% for the period from the Closing Date to the last day of the Interest Period ending immediately prior to the Distribution Date in February 2011, and floating
rate per annum equal to LIBOR plus 1.45% at all times thereafter. 
  

 12 

 “Class D Coverage Tests” means the Class D Overcollateralization Test and the Class D Interest
Coverage Test. 
  
 “Class D Interest Coverage Test”
means a test satisfied on any Measurement Date occurring on or after the Closing Date and on which any Class D Notes remain outstanding if the Class D Interest Coverage Ratio on such Measurement Date is equal to or greater than 105.0%. 

 
 “Class D Notes” means the Class D-1 Notes and the Class D-2
Notes. 
  
 “Class D Overcollateralization Ratio” means,
as of any Measurement Date, the number (expressed as a percentage) calculated by dividing (a) the Net Outstanding Portfolio Collateral Balance on such Measurement Date by (b) (1) the aggregate outstanding principal
amount of the Class A-1 Notes (including any unfunded Commitments with respect to the Class A-1 Notes) plus (2) the aggregate outstanding principal amount of the Class A-2 Notes plus (3) the aggregate
outstanding principal amount of the Class A-3 Notes plus (4) the aggregate outstanding principal amount of the Class B Notes plus (5) the aggregate outstanding principal amount of the Class C Notes (including without
duplication, any Class C Deferred Interest) plus (5) the aggregate outstanding principal amount of the Class D Notes (including, without duplication, any Class D Deferred Interest). 
  
 “Class D Overcollateralization Test” means a test satisfied on any
Measurement Date occurring on or after the Ramp-Up Completion Date and on which any Class D Notes remain outstanding if the Class D Overcollateralization Ratio on such Measurement Date is equal to or greater than 104.3%. 
  
 “Class D-1 Note Redemption Price” means, with respect to any
Distribution Date upon which any Class D Note is subject to redemption pursuant to Section 9.1, an amount (determined without duplication) equal to the sum of (a) 100% of the outstanding principal amount of such Class D-1 Note being
redeemed plus (b) accrued interest through such Redemption Date (including any Defaulted Interest and interest on Defaulted Interest and any Deferred Interest and interest on any Deferred Interest) thereon. 
  
 “Class D-1 Notes” means the Class D-1 Deferrable Mezzanine Secured
Floating Rate Notes due May 5, 2036, issued by the Co-Issuers on the Closing Date, that bear interest at a floating rate per annum equal to LIBOR plus 2.60%. 
  
 “Class D-2 Note Redemption Price” means, with respect to any Distribution Date upon which any Class D-2 Note is
subject to redemption pursuant to Section 9.1, an amount (determined without duplication) equal to the sum of (a) 100% of the outstanding principal amount of such Class D-2 Note being redeemed plus (b) accrued interest through
such Redemption Date (including any Defaulted Interest and interest on Defaulted Interest and any Deferred Interest and interest on any Deferred Interest) thereon plus (c) the excess, if any, of (x) the present value of the
scheduled payments of interest and principal which are remaining with respect to such Class D-2 Note as of such Redemption Date, based on the assumption that no principal is paid on such Class D-2 Note until such Class D-2 Note is paid in full on
the Distribution Date occurring in February 2016, and using a discount factor equal to the yield to maturity (calculated as of the 45th day preceding such Redemption Date) on the USD-ISDA-Swap 

  

 13 

 
Rate with a maturity no longer than the period of time between such Redemption Date and the Distribution Date occurring in February 2016, plus 2.60% over
(y) 100% of the outstanding principal amount of such Class D-2 Note being redeemed. 
  
 “Class D-2 Notes” means the Class D-2 Deferrable Mezzanine Secured Fixed Rate Notes due May 5, 2036, issued by the Co-Issuers on the Closing Date, that bear interest at a fixed rate per annum
equal to 7.71%. 
  
 “Class E Coverage Tests” means the
Class E Overcollateralization Test and the Class E Interest Coverage Test. 
  
 “Class E Deferred Interest” means, with respect to the Class E Notes, any interest due on such Notes which is not available to be paid as a result of the operation of the Priority of Payments on any
Distribution Date and which is deferred and added to the Aggregate Outstanding Principal Amount of the Class E Notes until the Distribution Date on which such interest is available to be paid in accordance with the Priority of Payments pursuant to
Section 2.6(a). 
  
 “Class E Interest Coverage
Test” means a test satisfied on any Measurement Date occurring on or after the Closing Date and on which any Class E Notes remain outstanding if the Class E Interest Coverage Ratio on such Measurement Date is equal to or greater than 102.5%.

  
 “Class E Note Redemption Price” means, with respect
to any Distribution Date upon which any Class E Note is subject to redemption pursuant to Section 9.1, an amount (determined without duplication) equal to the sum of (a) 100% of the outstanding principal amount of such Class E Note being
redeemed plus (b) accrued interest through such Redemption Date (including any Defaulted Interest and interest on Defaulted Interest and any Deferred Interest and interest on any Deferred Interest) thereon. 
  
 “Class E Notes” means the Class E Deferrable Subordinate Secured
Floating Rate Notes due May 5, 2036, issued by the Issuer on the Closing Date, that bear interest at a floating rate per annum equal to LIBOR plus 4.25%. 
  
 “Class E Overcollateralization Ratio” means, as of any Measurement Date, the number (expressed as a percentage)
calculated by dividing (a) the Net Outstanding Portfolio Collateral Balance on such Measurement Date by (b) (1) the aggregate outstanding principal amount of the Class A-1 Notes (including any unfunded Commitments
with respect to the Class A-1 Notes) plus (2) the aggregate outstanding principal amount of the Class A-2 Notes plus (3) the aggregate outstanding principal amount of the Class A-3 Notes plus
(4) the aggregate outstanding principal amount of the Class B Notes plus (5) the aggregate outstanding principal amount of the Class C Notes (including without duplication, any Class C Deferred Interest) plus (6) the
aggregate outstanding principal amount of the Class D Notes (including, without duplication, any Class D Deferred Interest) plus (7) the aggregate outstanding principal amount of the Class E Notes (including, without duplication, any
Class E Deferred Interest). 
  
 “Class E
Overcollateralization Test” means a test satisfied on any Measurement Date occurring on or after the Ramp-Up Completion Date and on which any Class E Notes 

  

 14 

 
remain outstanding if the Class E Overcollateralization Ratio on such Measurement Date is equal to or greater than 101.6%. 
  
 “Clearing Agency” means an organization registered as a
“clearing agency” pursuant to Section 17A of the Exchange Act. 
  
 “Clearing Corporation” has the meaning specified in Section 8-102(a)(5) of the UCC. 
  
 “Clearstream, Luxembourg” means Clearstream Banking, société anonyme. 
  
 “Closing Date” means December 23, 2005. 
  
 “CMBS” means commercial mortgage-backed securities issued by a CMBS
issuer (each, a “CMBS Issuer”) and acquired in secondary market transactions. 
  
 “CMBS Issuer” has the meaning specified in the definition of “CMBS.” 
  
 “Code” means the U.S. Internal Revenue Code of 1986, as amended. 
  
 “Co-Issuer” means TABERNA PREFERRED FUNDING IV, INC., a Delaware corporation, unless a successor Person shall have
become the Co-Issuer pursuant to the applicable provisions of this Indenture, and thereafter Co-Issuer shall mean such successor Person. 
  
 “Co-Issuer Notes” means the Class A Notes, the Class B Notes, the Class C Notes and the Class D Notes. 
  
 “Co-Issuers” means, collectively, the Issuer and the Co-Issuer.

  
 “Collateral” has the meaning specified in the
Granting Clauses. 
  
 “Collateral Administration
Agreement” means the Collateral Administration Agreement, dated as of the Closing Date, between the Issuer, the Collateral Manager and the Collateral Administrator relating to certain functions performed by the Collateral Administrator for the
Issuer and the Collateral Manager with respect to this Indenture and the Collateral. 
  
 “Collateral Administrator” means JPMorgan Chase Bank, National Association, a national banking association organized under the laws of the United States, and any successor appointed as Collateral
Administrator pursuant to the Collateral Administration Agreement. 
  
 “Collateral Debt Securities Issuers” means (i) with respect to Trust Preferred Securities, Trust Preferred Securities Issuers, (ii) with respect to CMBS, CMBS Issuers, (iii) with respect to Senior Notes, Senior Note
Issuers and (iv) with respect to Subordinated Notes, Subordinated Note Issuers. 
  
 “Collateral Debt Security” means certain Trust Preferred Securities, CMBS, Subordinated Notes, and Senior Notes issued by Collateral Debt Securities Issuers purchased or 

  

 15 

 
otherwise acquired by the Issuer, including, without limitation, the Trust Preferred Securities, the Subordinated Notes, the Senior Notes and the CMBS
identified on the Closing Date on the Schedule of Collateral Debt Securities and, at the time of purchase thereof by the Issuer, satisfy the Collateral Debt Security Criteria and the Eligibility Criteria. 
  
 “Collateral Debt Security Criteria” means the criteria that will be
met with respect to each Collateral Debt Security on the Closing Date (or, in the case of the Collateral Debt Securities purchased or acquired in accordance with Section 7.18, on the date of such purchase or acquisition), if such security is a
U.S. dollar-denominated, (w) Trust Preferred Security issued by a Trust Preferred Securities Issuer that meets the requirements set forth herein, (x) Subordinated Note issued by a Subordinated Issuer that meets the requirements set forth
herein, (y) CMBS issued by a CMBS Issuer that meets the requirements set forth herein or (z) Senior Note issued by a Senior Note Issuer that meets the requirements set forth herein, identified on the Schedule of Collateral Debt Securities
that, in each case, at the time of its purchase and initial pledge: 
  
 (i) provides for periodic payment of interest thereon in cash no less frequently than semi-annually (subject, in the case of Trust Preferred Securities, to deferrals thereof in accordance with clause
(vii) below); 
  
 (ii) provides for a fixed
amount of principal to be payable on or before the maturity thereof; 
  
 (iii) is not a Defaulted Security or a Credit Risk Security; 
  
 (iv) is not the subject of an Offer; 
  
 (v) matures (including as a result of any put right) on or before the Stated Maturity of the Notes or, in the case of CMBS, has an
expected balloon payment date occurring prior to the Stated Maturity of the Notes; 
  
 (vi) is not a debt obligation pursuant to which future advances may be required to be made to the borrower or, in the case of Trust
Preferred Securities, the Corresponding Debentures is not a debt obligation pursuant to which future advances may be required to be made to the borrower; 
  
 (vii) in the case of Trust Preferred Securities or Subordinated Notes, provides that distributions of interest thereon may not at any time
be deferred for a period of more than five (5) consecutive years; 
  
 (viii) (x) in the case of a Trust Preferred Security, based on opinions of special tax counsel to the Trust Preferred Securities Issuers, for U.S. Federal income tax purposes (I) Trust Preferred Securities
are issued by a trust that is treated as a grantor trust and, accordingly, the Issuer generally will be considered the owner of a pro rata undivided interest in the Corresponding Debentures issued by the Trust Preferred Securities Issuer, and
(II) the Corresponding Debentures will be treated as indebtedness, and (y) in the case of any other Collateral Debt Security, any one of the following is satisfied: (I) based on opinions of special tax counsel to the Collateral Debt
Securities Issuers, for U.S. Federal 

  

 16 

 
income tax purposes either (A) such Collateral Debt Securities are treated as indebtedness or (B) if not treated as indebtedness, (1) payments
on such Collateral Debt Security will not be subject to withholding tax imposed by the United States (or, if the issuer thereof is organized in a jurisdiction outside the United States, such other jurisdiction) and (2) the Issuer’s
ownership of such Collateral Debt Security will not result in the Issuer being subject to income tax imposed on a net basis in the United States (or, if the issuer thereof is organized in a jurisdiction outside the United States, such other
jurisdiction) or (II) the offering documents with respect to such Collateral Debt Security either (A) state that an opinion of U.S. tax counsel had been rendered when such Collateral Debt Security was issued to the effect that such Collateral
Debt Security will be treated as debt for U.S. Federal income tax purposes and there has been no change in the terms of the Collateral Debt Security since its issuance, (B) in the case of CMBS, state that opinions of U.S. tax counsel had been
rendered when such CMBS was issued to the effect that such CMBS is a “regular interest” in a REMIC and that the respective issuer qualifies as a REMIC or (C) in the case of a Senior Note of a REIT, describe the tax consequences to
investors as if such Senior Note were debt for U.S. Federal income tax purposes, state that payments on the Senior Note to non-U.S. holders are generally eligible for the exemption from U.S. withholding tax for “portfolio interest”
provided in Section 881(b)(2) of the Code and do not require that any holder thereof treat such Senior Note other than as debt for U.S. Federal income tax purposes; provided, that a limited amount of Collateral Debt Securities not to
exceed 10% of the aggregate Principal Balance of Collateral Debt Securities as of the Ramp-Up Completion Date may be purchased by the Issuer in the secondary market if the requirements in clauses (x) and (y) above are not satisfied but the
Issuer otherwise reasonably believes that the Corresponding Debentures, Subordinated Notes, CMBS or Senior Notes, as applicable, will be treated as debt for U.S. Federal income tax purposes; 
  
 (ix) does not have payments subject to (and payments on any
related Corresponding Debentures are not subject to) foreign or United States withholding tax; 
  
 (x) it was issued after July 18, 1984 and is in “registered form”; 
  
 (xi) is not by its terms exchangeable or convertible into an
Equity Security; 
  
 (xii) would not cause the
Issuer, the Co-Issuer or the pool of Collateral to be required to register under the Investment Company Act; 
  
 (xiii) is not Margin Stock (as defined under Regulation U issued by the Board of Governors of the Federal Reserve System); 
  
 (xiv) is not currently making payments of interest in kind;

  
 (xv) if rated by Standard &
Poor’s, does not have a subscript of “p,” “q,” “r,” “pi” or “t” associated with such rating; 
  
 (xvi) is eligible to be pledged to the Trustee; 
  

 17 

 (xvii) in the case of a Secondary Senior Note, is rated at least “BB+” by
Fitch, “Ba1” by Moody’s and “BB+” by Standard & Poor’s; provided, that if the Secondary Senior Note is not rated by Fitch but has a public rating from Standard & Poor’s, then the Fitch
rating of such Secondary Senior Note will be the Fitch equivalent of the rating assigned by Standard & Poor’s; 
  
 (xviii) in the case of CMBS, is rated at least “BBB-” by Fitch, “Baa3” by Moody’s and “BBB-” by
Standard & Poor’s; provided, that if the CMBS is not rated by Fitch but has a public rating from Standard & Poor’s, then the Fitch rating of such CMBS will be the Fitch equivalent of the rating assigned by
Standard & Poor’s and provided, further that if the CMBS is not rated by Standard & Poor’s but has a public rating from either Moody’s or Fitch then the S&P Rating of such CMBS shall be the rating inferred
using Schedule D hereto; 
  
 (xix) in the case of
a Trust Preferred Security, a Subordinated Note or a Primary Senior Note, has been submitted for a credit estimate from Standard & Poor’s and Fitch or the issuing entity (or the direct or indirect parent of such issuing entity) of such
Trust Preferred Security, Subordinated Note or Primary Senior Note has a public rating by Standard & Poor’s; 
  
 (xx) the Board or an authorized individual of the Issuer or the Board shall have given its consent to the acquisition of such Collateral
Debt Security, if such acquisition occurs after the Closing Date; 
  
 (xxi) will not constitute an interest in United States real property within the meaning of Section 897 of the Code; and 
  
 (xxii) in the case of CMBS or Senior Notes of a REIT, either (x) an opinion from tax counsel states that the respective issuer
qualifies as a REMIC or REIT, as the case may be, for U.S. Federal income tax purposes or (y) the offering documents with respect to such CMBS or Senior Note state that an opinion of tax counsel had been rendered to the effect that such issuer
qualifies as a REMIC or REIT, as applicable, for U.S. Federal income tax purposes. 
  
 “Collateral Management Agreement” means the Collateral Management Agreement, dated as of the Closing Date, between the Issuer and the Collateral Manager. 
  
 “Collateral Management Fee” means the Base Collateral Management
Fee and the Subordinate Collateral Management Fee. 
  
 “Collateral Manager” means Taberna Capital Management, in its capacity as Collateral Manager under the Collateral Management Agreement, unless a successor Person shall have become the collateral manager pursuant to the provisions
of the Collateral Management Agreement, and thereafter Collateral Manager shall mean such successor Person. 
  
 “Collateral Quality Tests” means the Weighted Average Hybrid Coupon Test, the Weighted Average Spread Test, the Weighted Average Coupon Test and
the Standard & Poor’s CDO Monitor Test. 
  

 18 

 “Collection Accounts” means the Interest Collection Account and the Principal Collection
Account. 
  
 “Combination Notes” means the Series I
7.08% Combination Notes due May 5, 2036, issued by the Co-Issuers on the Closing Date, comprised of components representing the aggregate initial principal amount of the Class B-2 Notes and the Class D-2 Notes. 
  
 “Commitment” means at any time in respect of any Class A-1
Note, the maximum aggregate principal amount of advances (whether at the time funded or unfunded) that the holder of such Class A-1 Note is obligated from time to time under the Class A-1 Note Purchase Agreement to make to the Co-Issuers.

  
 “Commitment Fee” means, with respect to the
Class A-1 Notes, the commitment fee payable by the Co-Issuers to the Holders of the Class A-1 Notes on the Aggregate Undrawn Amount of the Class A-1 Notes, for each day from and including the Closing Date to but excluding the
Commitment Period Termination Date at a rate per annum equal to the Commitment Fee Rate. 
  
 “Commitment Fee Amount” means with respect to the Class A-1 Notes as of any Distribution Date, the sum of (a) the aggregate amount of Commitment Fee accrued during the Interest Period ending on
such Distribution Date plus (b) any Commitment Fee Amount due but not paid in any previous Interest Period plus (c) any Defaulted Interest in respect of any Commitment Fee Amount due but not paid on any prior Distribution Date (which
Defaulted Interest shall accrue at the Note Interest Rate applicable to the Class A-1 Notes). 
  
 “Commitment Fee Rate” means a rate per annum equal to 0.185%. 
  
 “Commitment Period” means the commitment period commencing with and including the Closing Date and ending on but
excluding the Commitment Period Termination Date. 
  
 “Commitment Period Termination Date” means the earliest to occur of (a) the first Business Day following the Ramp-Up Completion Date; (b) the redemption of the Class A-1 Notes in full; (c) the first date on
which the Aggregate Undrawn Amount of the Class A-1 Notes has been reduced to zero; (d) the occurrence of an Event of Default specified in Section 5.1(d), 5.1(f) or 5.1(g); and (e) the sale, foreclosure or other disposition of
the Collateral pursuant to Section 5.4. 
  
 “Component” means the component of the Combination Notes representing the aggregate initial principal amount of the Class B-2 Notes and the component of the Combination Notes representing the aggregate initial principal amount of
the Class D-2 Notes. 
  
 “Consolidated” refers to the
consolidation of accounts in accordance with GAAP. 
  
 “Controlling Class” means the Class A Notes voting together or, if there are no Class A Notes Outstanding (and the Commitment Period Termination Date has occurred), the Class B Notes, or, if there are no Class B Notes
Outstanding, the Class C Notes, or, if there are 

  

 19 

 
no Class C Notes Outstanding, the Class D Notes or, if there are no Class D Notes Outstanding, the Class E Notes. 
  
 “Corporate Trust Office” means the designated corporate trust
office of the Trustee, currently located at JPMorgan Chase Tower, 600 Travis Street, 50th Floor, Houston, Texas
77002, Attn.: Worldwide Securities Services TABERNA PREFERRED FUNDING IV, LTD., telephone number (713) 216-4181, fax number (713) 216-2101 or such other address as the Trustee may designate from time to time by notice to the Noteholders,
the Collateral Manager and the Co-Issuers or the principal corporate trust office of any successor trustee. 
  
 “Corresponding Debentures” means the junior subordinated deferrable interest debt securities issued by a Real Estate Entity. 
  
 “Coverage Tests” means the Overcollateralization Tests and the
Interest Coverage Tests applicable at the time of determination. 
  
 “Credit Risk Security” means any Collateral Debt Security with respect to which (i) any default or event of default under the related Underlying Instrument which will entitle the holder thereof, with the giving of notice or
passage of time or both, to accelerate the maturity of all or a portion of the principal amount of such Collateral Debt Security is imminent; provided, that any such security shall be considered a Credit Risk Security only until such time as
such default or event of default is no longer imminent, or (ii) the issuer or obligor thereof is subject to any regulatory intervention. 
  
 “Current Coupon” means, as of any date of determination, (i) with respect to any Collateral Debt Security which is a Fixed Rate Collateral
Debt Security, the stated rate at which interest accrues on such Fixed Rate Collateral Debt Security and (ii) with respect to any Collateral Debt Security which is a Deemed Fixed Rate Collateral Debt Security, the Deemed Fixed Spread plus the
Deemed Fixed Rate, each related to such Deemed Fixed Rate Collateral Debt Security. 
  
 “Current Spread” means, as of any date of determination, (i) with respect to any Collateral Debt Security which is a floating rate Collateral Debt Security, the stated spread above or below LIBOR at
which interest accrues on such floating rate Collateral Debt Security, (ii) with respect to any Collateral Debt Security which is a Deemed Floating Rate Collateral Debt Security, the Deemed Floating Spread, each related to such Deemed Floating
Rate Collateral Debt Security. 
  
 “Custodial Account”
means the Securities Account designated as the “Custodial Account” and established at the Custodian in the name of the Trustee pursuant to Section 10.2(i). 
  
 “Custodian” has the meaning specified in Section 3.3(a). 
  
 “Debt” means (a) indebtedness for borrowed money,
(b) obligations evidenced by bonds, debentures, notes or other similar instruments and (c) obligations as lessee under leases that shall have been or should be, in accordance with generally accepted accounting principles, recorded as
Capitalized Leases; provided, however, that “Debt” shall not be deemed to include (w) trade payables not overdue or being contested in good faith, (x) obligations under 

  

 20 

 
any interest rate agreements, (y) Preferred Interests and (z) any debt subordinate to the applicable Collateral Debt Security. 
  
 “Deemed Fixed Rate” means a rate equal to the fixed rate that the
related Hedge Counterparty agrees to pay on a Deemed Fixed Rate Hedge Agreement at the time such agreement is executed. 
  
 “Deemed Fixed Rate Collateral Debt Security” means a floating rate Collateral Debt Security the interest rate of which is hedged into a Fixed
Rate Collateral Debt Security pursuant to the terms of a Deemed Fixed Rate Hedge Agreement. 
  
 “Deemed Fixed Rate Hedge Agreement” means, with respect to a floating rate Collateral Debt Security, an interest rate swap having a notional amount (or scheduled notional amounts) equal to the Principal
Balance (as it may be reduced by expected amortization) of such floating rate Collateral Debt Security. 
  
 “Deemed Fixed Spread” means the spread over LIBOR on each floating rate Collateral Debt Security that comprises a Deemed Fixed Rate Collateral
Debt Security (excluding all Defaulted Securities and Deferred Interest Collateral Debt Securities) less the amount of such spread, if any, required to be paid to the related Hedge Counterparty. For purposes of this definition, in the case of any
floating rate Collateral Debt Security that does not bear interest at a rate expressed as a stated spread above or below LIBOR, the stated spread to LIBOR relating to such floating rate Collateral Debt Security shall be calculated on any Measurement
Date by the Collateral Manager in its sole judgment on behalf of the Issuer by subtracting LIBOR (as determined on the most recent LIBOR Determination Date) from the interest rate payable on such floating rate Collateral Debt Security. 

 
 “Deemed Floating Rate” means the floating rate in excess of
LIBOR or such other floating rate index as applicable that the related Hedge Counterparty agrees to pay on a Deemed Floating Rate Hedge Agreement at the time such agreement is executed. 
  
 “Deemed Floating Rate Collateral Debt Security” means a fixed rate Collateral Debt Security the interest rate of
which is hedged into a floating rate Collateral Debt Security pursuant to the terms of a Deemed Floating Rate Hedge Agreement; provided, that the aggregate principal balance of all Deemed Fixed Rate Collateral Debt Securities and Deemed
Floating Rate Collateral Debt Securities shall not exceed 10% of the aggregate Principal Balance of all Collateral Debt Securities. 
  
 “Deemed Floating Rate Hedge Agreement” means, with respect to a fixed rate Collateral Debt Security, an interest rate swap having a notional
amount (or scheduled notional amounts) equal to the Principal Balance (as it may be reduced by expected amortization) of such fixed rate Collateral Debt Security. 
  
 “Deemed Floating Spread” means the difference between the stated rate at which interest accrues on each fixed rate
Collateral Debt Security that comprises a Deemed Floating Rate Collateral Debt Security (excluding all Defaulted Securities and Deferred Interest Collateral Debt Securities) and the Fixed Payment Rate. 
  

 21 

 “Default” means any Event of Default or any event or occurrence that, with notice or the lapse
of time or both, would become an Event of Default. 
  
 “Defaulted Interest” means any interest due and payable in respect of any Note (or when used with respect to the Class A-1 Notes and the calculation of the Commitment Fee Amount, the Commitment Fee) that is not punctually
paid or duly provided for on the applicable Distribution Date or at Stated Maturity. Defaulted Interest will not include Class C Deferred Interest, Class D Deferred Interest or Class E Deferred Interest. 
  
 “Defaulted Security” means any Pledged Security with respect to
which (i) there has occurred and is continuing any default or event of default under the related Underlying Instrument which entitles the holders thereof, with the giving of notice or passage of time or both, to accelerate the maturity of all
or a portion of the principal amount of such Pledged Security, (ii) any bankruptcy, insolvency or receivership proceeding has been initiated in connection with the issuer of such Pledged Security or Eligible Security or there has been effected
any distressed exchange or any other debt restructuring where the issuer or obligor of such Pledged Security has offered the debt holders a new security or package of securities that does not meet the definition of “Collateral Debt
Security” contained herein, (iii) is rated “D” or “SD” by Standard & Poor’s, (iv) is rated “CC” or below by Fitch or (v) the Collateral Manager knows the issuer thereof or obligor
thereon is in default (without giving effect to any applicable grace period or waiver) as to payment of principal and/or interest on another obligation (and such default has not been cured or waived) which is senior or pari passu in right of
payment to such Pledged Security; provided, that any such security shall be considered a Defaulted Security only until such time as the default or event of default has been cured or waived and such security otherwise satisfies the criteria
for inclusion of securities in the Collateral described in the definition of “Collateral Debt Security” or “Eligible Investments,” as applicable to such security. 
  
 “Deferred Interest Collateral Debt Security” means a Collateral Debt Security with respect to which payment of
interest either in whole or in part has been deferred for which any such deferred interest remains outstanding, but only until such time as payment of interest on such Collateral Debt Security has resumed and all capitalized and deferred interest
has been paid in accordance with the terms of the Underlying Instruments. 
  
 “Definitive Note” has the meaning specified in Section 2.4(b)(vii). 
  
 “Depositary” means, with respect to the Notes issued in the form of one or more Global Notes, the Person designated as Depositary pursuant to
Section 2.2(e) or any successor thereto appointed pursuant to the applicable provisions of this Indenture. 
  
 “Depositary Participant” means a broker, dealer, bank or other financial institution or other Person for whom from time to time the Depositary
effects book-entry transfers and 
  
 “Determination
Date” means the last day of a Due Period. 
  
 “Directives” means, collectively, the European Union Transparency Directive and Prospectus Directive, which, when effective (and, in the case of the Transparency Directive, if adopted), if applicable to the Issuer, could impose
financial reporting requirements on the Issuer, 

  

 22 

 
including, at a minimum, the Issuer’s delivery of semi-annual and annual financial reports prepared in accordance with International Accounting
Standards or other equivalent accounting standards. 
  
 “Distribution” means any payment of principal, interest or fee or any dividend or premium payment made on, or any other distribution in respect of, an obligation or security. 
  
 “Distribution Date” means
February 5, May 5, August 5 and November 5 of each year; provided, that (a) the first Distribution Date will be May 5, 2006, (b) the final Distribution Date will be May 5, 2036, and
(c) if a Distribution Date would otherwise fall on a day that is not a Business Day, the related Distribution Date will be the first following day that is a Business Day. 
  
 “Dollar” or “U.S.$” means a dollar or other equivalent unit in such coin or currency of the United
States as at the time shall be legal tender for all debts, public and private. 
  
 “DTC” means The Depository Trust Company, a New York corporation. 
  
 “Due Date” means each date on which a Distribution is due on a Pledged Security. 
  
 “Due Period” means each period from, but excluding, the first day of a calendar month relating to any Distribution
Date to, and including, the first day of the calendar month relating to the next succeeding Distribution Date, except that (a) the initial Due Period will commence on, and include, the Closing Date and (b) the final Due Period will end on,
and include, the day preceding the Stated Maturity of the Notes. The “Distribution Date” relating to any Due Period shall be the Distribution Date that next succeeds the last day of such Due Period. For the avoidance of doubt, amounts that
would otherwise have been payable in respect of a Pledged Collateral Debt Security on or before the last day of a Due Period, but for such day not being a designated business day in the Underlying Instruments or a Business Day under this Indenture,
shall be considered included in collections received during such Due Period. 
  
 “EBITDA” means for any Real Estate Entity and its subsidiaries for any period, the Consolidated net operating income for such Real Estate Entity and its subsidiaries for such period (determined in accordance
with GAAP), plus (i) all amounts if at all deducted in arriving at such Consolidated net operating income amount for such period for interest expense and for federal, state and local income tax expense and for amortization of intangibles and
for depreciation of property, plant and equipment, and (ii) normalized gains or losses on sales in accordance with GAAP; provided, that EBITDA shall exclude all amounts in respect of extraordinary items, non cash and non-recurring
expenses. For the purpose of this definition, EBITDA of any Real Estate Entity that has completed a formation transaction (i.e., an initial public offering or a recapitalization) within the preceding 18 months shall be adjusted in order to reflect
net operating income on a fully ramped up basis and excluding any formation transaction costs. 
  
 “Eligibility Criteria” means, with respect to the Trust Preferred Securities, Subordinated Notes and Primary Senior Notes, when acquired by the Issuer and pledged to the Trustee on or prior to the Ramp-Up
Completion Date, must be, or have been, issued by (a) a 

  

 23 

 
Collateral Debt Securities Issuer whose parent is a REIT that meets the following criteria or (b) Collateral Debt Securities Issuer whose parent is a
REOC that meets clauses (1) and (2) of the following criteria: 
  
 (1) it has, following the issuance of such securities, total assets of at least $100 million; 
  
 (2) the issuing entity (or the direct or indirect parent of such issuing entity) of such Collateral Debt Security has a public rating from
Standard & Poor’s, Moody’s and Fitch (or (i) if not rated by Fitch but has a public rating from Standard & Poor’s is deemed to have a Fitch rating equivalent to the rating assigned by Standard &
Poor’s and (ii) if not rated by Moody’s, has been evaluated by Moody’s for purposes of assigning a pool wide default probability) or has been submitted for a credit estimate from Standard & Poor’s and Fitch.

  
 The above criteria and the Collateral Debt Security Criteria
are herein collectively referred to as the “Eligibility Criteria.” Notwithstanding the foregoing, one or more Collateral Debt Securities Issuers may not satisfy the aforementioned criteria to the extent that Standard & Poor’s
and Fitch confirm that any exceptions to the criteria will not adversely affect the ratings assigned to the Notes on the Closing Date. 
  
 “Eligible Investments” means any Dollar-denominated investment that is one or more of the following (and may include investments for which the
Trustee and/or its affiliates or the Collateral Manager and/or its affiliates provides services or receives compensation): 
  
 (a) direct registered obligations of, and registered obligations the timely payment of principal of and interest on which is fully and
expressly guaranteed by, the United States of America, or any agency or instrumentality of the United States of America the obligations of which are backed by the full faith and credit of the United States of America; 
  
 (b) demand and time deposits in, and certificates of deposit
of, bankers acceptances issued by, or federal funds sold by any depository institution or trust company (including the Trustee) organized under the laws of the United States of America or any state thereof and subject to the supervision and
examination by federal and/or state banking authorities so long as the commercial paper and/or debt obligations of such depository institution or trust company (or, in the case of the principal depository institution in a holding company system, the
commercial paper or debt obligations of such holding company) at the time of such investment or contractual commitment providing for such investment have a credit rating of “Aa2” by Moody’s, “AA-” by Standard &
Poor’s and, if rated by Fitch, “AA-” by Fitch, in the case of debt obligations, or “P-1” by Moody’s and, if rated by Fitch, “F1+” by Fitch or better, in the case of commercial paper and short-term debt
obligations; 
  
 (c) registered securities
bearing interest or sold at a discount issued by any corporation under the laws of the United States of America or any state thereof that have a credit rating of “Aa3” by Moody’s, “AA-” by Standard & Poor’s
and, if rated by Fitch, 

  

 24 

 
“AA-” by Fitch at the time of such investment or contractual commitment providing for such investment; 
  
 (d) unleveraged repurchase obligations with respect to any
security described in clause (a) above, entered into with a depository institution or trust company (acting as principal) described in clause (b) or entered into with a corporation (acting as principal) whose short-term debt has a credit
rating of “P-1” by Moody’s, “A-1+” by Standard & Poor’s and, if rated by Fitch, “F1+” by Fitch or better at the time of such investment in the case of any repurchase obligation for a security having a
maturity not more than 183 days from the date of its issuance or whose long-term debt has a credit rating of “Aa3” by Moody’s, “AA-” by Standard & Poor’s and, if rated by Fitch, “AA-” by Fitch or
better at the time of such investment in the case of any repurchase obligation for a security having a maturity more than 183 days from the date of its issuance; 
  
 (e) commercial paper or other short-term obligations having at the time of such investment a credit rating
of “P-1” by Moody’s, “A-1+” by Standard & Poor’s and, if rated by Fitch, “F1+” by Fitch or better and either are bearing interest or are sold at a discount from the face amount thereof and that have a
maturity of not more than 183 days from its date of issuance; provided, that in the case of commercial paper with a maturity of longer than 91 days, the issuer of such commercial paper (or, in the case of a principal depository institution in
a holding company system, the holding company of such system), if rated by any Rating Agency, must have at the time of such investment a long-term credit rating of “Aa2” by Moody’s, “AA-” by Standard & Poor’s
and, if rated by Fitch, “AA-” by Fitch; 
  
 (f) offshore money market funds with respect to any investments described in clauses (a) through (e) above having, at the time of such investment, a credit rating of not less than “MR1+” and “Aaa” by
Moody’s, “AAAm” or “AAAm-G” by Standard & Poor’s and, if rated by Fitch, “AAA” by Fitch; and 
  
 (g) interest-bearing demand cash accounts held at the Bank; 
  
 provided, that Eligible Investments purchased with funds in the Collection Account shall be held until maturity except as otherwise
specifically provided herein and shall include only such obligations or securities as mature no later than the Business Day prior to the Distribution Date next succeeding the date of investment in such obligations or securities, unless such Eligible
Investments are issued by the Trustee in its capacity as a banking institution, in which event such Eligible Investments may mature on such Distribution Date; and provided, further, that Eligible Investments shall not have payments
subject to foreign or United States withholding tax, shall not be subject to an Offer, shall not be “mortgage-backed securities,” shall not have a Standard & Poor’s rating which contains a subscript “r,”
“t,” “p,” “pi” or “q” and shall not have all, or substantially all, of the remaining amounts payable thereunder consist of interest and not principal payments. 
  
 “Entitlement Holder” has the meaning specified in
Section 8-102(a)(7) of the UCC. 
  

 25 

 “Entitlement Order” has the meaning specified in Section 8-102(a)(8) of the UCC.

  
 “Equity Security” means any equity security that
does not entitle the holder thereto to receive periodic payments of interest and one or more installments of principal. 
  
 “ERISA” means the United States Employee Retirement Income Security Act of 1974, as amended. 
  
 “Euroclear” means Euroclear Bank S.A./N.V., as operator of the
Euroclear System. 
  
 “Event of Default” has the meaning
specified in Section 5.1. 
  
 “Excel CDO Monitor Input
File” means an electronic file format which specifies the data elements and constraints for asset and transactional information that Standard & Poor’s requires for its surveillance and analysis. 
  
 “Excepted Property” means the U.S.$1,000 of capital contributed to
the Issuer in respect of the Issuer’s ordinary shares in accordance with the Issuer Charter, U.S.$1,000 representing a profit fee to the Issuer, any bank account in which such funds are held (provided, that such account shall not be one
of the accounts named herein), the amount of any transaction fees, if any, paid to the Issuer in connection with the issuance of the Notes and the rights of the Issuer under the Administration Agreement. 
  
 “Exchange Act” means the United States Securities Exchange Act of
1934, as amended. 
  
 “Expense Account” means the
Securities Account designated the “Expense Account” and established in the name of the Trustee pursuant to Section 10.4. 
  
 “Financial Asset” has the meaning specified in Section 8-102(a)(9) of the UCC. 
  
 “Financing Statement” means a financing statement relating to the
Collateral naming the Issuer as debtor and the Trustee on behalf of the Secured Parties as secured party. 
  
 “First Distribution Date Reserve Account” means the Securities Account designated the “First Distribution Date Reserve Account” and
established in the name of the Trustee pursuant to Section 10.4. 
  
 “Fitch” means Fitch, Inc. and any successor or successors thereto. 
  
 “Fitch Recovery Rate” means, with respect to any Defaulted Security on any Measurement Date, an amount equal to the percentage corresponding to the domicile, original rating, seniority and tranche thickness
of such Defaulted Security, as applicable, as set forth in the Fitch Recovery Rate Matrix attached to this Indenture; provided, that the applicable percentage shall be the percentage corresponding to the most senior Outstanding Class of Notes
then rated by Fitch. 
  

 26 

 “Fixed Charge Coverage Ratio” means, as of the last day of the preceding fiscal quarter
determined (i) on a four quarter trailing basis, or (ii) with respect to the preceding fiscal quarter, whichever is greater, the ratio of (a) EBITDA of the Real Estate Entity and its subsidiaries determined on a Consolidated basis to
(b) the sum of (i) Interest Expense of such Real Estate Entity and its subsidiaries determined on a Consolidated basis and (ii) without duplication, for such Real Estate Entity and its subsidiaries, determined on a Consolidated basis,
the aggregate amount of dividends paid or payable with respect to Preferred Interests that are not Qualified Preferred Stock, during such period. For the purpose of this definition, EBITDA of any Real Estate Entity that has completed a formation
transaction (i.e., an initial public offering or a recapitalization) within the preceding 18 months shall be adjusted in order to reflect net operating income on a fully ramped up basis and excluding any formation transaction costs. 
  
 “Fixed Payment Rate” means the fixed rate that the Issuer agrees to
pay to the related Hedge Counterparty under a Deemed Floating Rate Hedge Agreement at the time such agreement is executed. 
  
 “Fixed Rate Collateral Debt Security” means any Collateral Debt Security other than a Floating Rate Collateral Debt Security. 
  
 “Floating Rate Collateral Debt Security” means any Collateral Debt
Security that is expressly stated to bear interest expressed as a floating rate based upon a LIBOR Rate or the applicable rate on U.S. Treasury bills, prime rate, rate for commercial paper, federal funds rate or other index acceptable to each Rating
Agency; provided, that any Collateral Debt Security that bears interest at a fixed rate for a specified period of time and then bears interest at a floating rate until its maturity, shall be a Floating Rate Collateral Debt Security only at
such times that such Collateral Debt Security is bearing interest at a floating rate. 
  
 “Flow-Through Investment Vehicle” has the meaning specified in Section 2.4(c)(11). 
  
 “GAAP” means generally accepted accounting principles in the United States of America as in effect from time to time. 
  
 “Global Notes” means the Regulation S Global Notes, the Restricted
Global Notes, the Regulation S Global Combination Notes and the Restricted Combination Notes. 
  
 “Grant” means to grant, bargain, sell, warrant, alienate, remise, demise, release, convey, assign, transfer, mortgage, pledge and create a security interest in and right of set-off against, deposit, set over
and confirm. A Grant of the Pledged Securities, or of any other instrument, shall include all rights, powers and options (but none of the obligations) of the granting party thereunder, including the immediate continuing right to claim for, collect,
receive and receipt for principal, interest and fee payments in respect of the Pledged Securities or such other instruments, and all other Monies payable thereunder, to give and receive notices and other communications, to make waivers or other
agreements, to exercise all rights and options, to bring Proceedings in the name of the granting party or otherwise, and generally to do and receive anything that the granting party is or may be entitled to do or receive thereunder or with respect

  

 27 

 
thereto. The Issuer shall Grant each Pledged Security to the Trustee on the date on which the Issuer enters into a firm commitment to purchase such security.

  
 “Hedge Agreements” means (i) one or more
interest rate protection agreements, each consisting of one or more interest rate swaps, one or more interest rate caps and a master agreement entered into between the Issuer and the Hedge Counterparty as of the Closing Date (or such other date on
or prior to the Ramp-Up Completion Date on which the Issuer may enter into such agreements pursuant to Section 16.1), in each case for the sole purpose of hedging interest rate and cash flow mismatch risks between the portfolio of Collateral
Debt Securities and the Notes, and any replacement or revised Hedge Agreement on substantially identical terms (or on such other terms satisfying the Rating Condition) and with a Hedge Counterparty with respect to which the Rating Condition shall
have been satisfied entered into pursuant to Section 16.1, (ii) the Basis Swap and (iii) one or more Deemed Fixed Rate Hedge Agreements or Deemed Floating Rate Hedge Agreements entered into for the purpose of hedging fixed/floating
interest rate risk entered into by the Issuer from time to time in accordance with Section 16.1 and any replacement or revised Hedge Agreement on substantially identical terms (or on other terms satisfying the Rating Condition) and with a Hedge
Counterparty with respect to which the Rating Condition shall be satisfied. 
  
 “Hedge Collateral” means all rights, title and interest of the Issuer in, under and to the Hedge Agreements, each Transaction (as defined in any Hedge Agreement) thereunder, and all present and future Hedge
Receipt Amounts under or otherwise in connection with any Hedge Agreement or Transaction thereunder, whether or not evidenced by a confirmation. 
  
 “Hedge Counterparty” means (a) Merrill Lynch Capital Services, Inc., a Delaware corporation that is an Affiliate of the Placement Agent,
(b) the Basis Swap Counterparty or (c) any permitted assignee or successor under the Hedge Agreements that satisfies the Rating Condition. 
  
 “Hedge Counterparty Collateral Account” means the Securities Account designated as the “Hedge Counterparty Collateral Account” and
established in the name of the Trustee pursuant to Section 10.6. 
  
 “Hedge Counterparty Ratings Requirement” means, with respect to the Hedge Counterparty or any transferee thereof, (a) either (i) the rating of the short-term senior unsecured, unguaranteed and otherwise unsupported debt
obligations of the related Hedge Rating Determining Party or such transferee is at least “A-1” by Standard & Poor’s or (ii) the rating of the long-term senior unsecured, unguaranteed and otherwise unsupported debt
obligations of the related Hedge Rating Determining Party or such transferee is at least “A+” by Standard & Poor’s if the related Hedge Rating Determining Party does not have a short-term rating, (b) (i) if the
related Hedge Rating Determining Party or such transferee has an unsecured, unguaranteed and otherwise unsupported long-term debt rating by Moody’s, the rating of the long-term senior unsecured, unguaranteed and otherwise unsupported debt
obligations of the related Hedge Rating Determining Party or such transferee is at least “Aa3” (and is not on credit watch for possible downgrade) by Moody’s or (ii) if the related Hedge Rating Determining Party has both a
long-term and a short-term rating, (x) the rating of the unsecured, unguaranteed and otherwise unsupported long-term senior debt obligations of the related Hedge Rating Determining Party or 

  

 28 

 
such transferee is at least “A1” (and is not on credit watch for possible downgrade) by Moody’s and (y) the rating of the unsecured,
unguaranteed and otherwise unsupported short-term senior debt obligations of the related Hedge Rating Determining Party or such transferee (or any affiliate of such transferee that unconditionally and absolutely guarantees the obligations of such
transferee hereunder) is “P-1” (and is not on credit watch for possible downgrade) by Moody’s or (c) either (i) the rating of the long-term senior unsecured, unguaranteed and otherwise unsupported debt obligations of the
related Hedge Rating Determining Party or such transferee is at least “A” by Fitch if the related Hedge Rating Determining Party or such transferee does not have a short-term rating by Fitch or (ii) the rating of the short-term senior
unsecured, unguaranteed and otherwise unsupported debt obligations of the related Hedge Rating Determining Party or such transferee is at least “F1” by Fitch. 
  
 “Hedge Payment Amount” means, with respect to a Hedge Agreement and any Distribution Date, the amount, if any,
then payable to the Hedge Counterparty by the Issuer net of all amounts payable to the Issuer by the Hedge Counterparty as determined by the Collateral Manager on behalf of the Issuer and certified to the Trustee. 
  
 “Hedge Ratings Determining Party” means, (a) unless clause
(b) applies, the Hedge Counterparty or any transferee thereof or (b) any affiliate of the Hedge Counterparty or any transferee thereof that unconditionally and absolutely guarantees (with such form of guarantee satisfying
Standard & Poor’s then-published criteria with respect to guarantee) the obligations of the Hedge Counterparty or such transferee, as the case may be, under this Agreement. For the purpose of this definition, no direct or indirect
recourse against one or more shareholders of the Hedge Counterparty or any such transferee (or against any Person in control of, or controlled by, or under common control with any such shareholder) shall be deemed to constitute a guarantee, security
or support of the obligations of the Hedge Counterparty or any such transferee. 
  
 “Hedge Receipt Amount” With respect to a Hedge Agreement and any Distribution Date, the amount, if any, then payable to the Issuer by the Hedge Counterparty (including any applicable termination or notional
reduction payments) net of all amounts payable to the Hedge Counterparty by the Issuer. 
  
 “Highest Auction Price” means, with respect to an Auction Call Redemption, the greater of (a) the highest price bid by any Qualified Bidder for all of the Collateral Debt Securities and (b) the sum
of the highest prices bid by one or more Qualified Bidders for each Subpool. In each case, the price bid by a Qualified Bidder shall be the Dollar amount which the Collateral Manager certifies to the Trustee based on the Collateral Manager’s
review of the bids, which certification shall be binding and conclusive. 
  
 “Holder” means a Noteholder, a Combination Noteholder and/or a Preferred Shareholder as the context may require. 
  
 “Important Section 3(c)(7) Notice” means a notice substantially in the form of Exhibit N. 
  

 29 

 “Indenture” means this instrument and, if from time to time supplemented or amended by one or
more indentures supplemental hereto entered into pursuant to the applicable provisions hereof, as so supplemented or amended. 
  
 “Independent” means, as to any Person, any other Person (including, in the case of an accountant, or lawyer, a firm of accountants or lawyers
and any member thereof) who (i) does not have and is not committed to acquire any material direct or any material indirect financial interest in such Person or in any Affiliate of such Person, (ii) is not connected with such Person as an
Officer, employee, promoter, underwriter, voting trustee, partner, director or Person performing similar functions and (iii) if required to deliver an opinion or certificate to the Trustee pursuant to this Indenture, states in such opinion or
certificate that the signer has read this definition and that the signer is Independent within the meaning hereof. “Independent” when used with respect to any accountant may include an accountant who audits the books of such Person if in
addition to satisfying the criteria set forth above the accountant is independent with respect to such Person within the meaning of Rule 101 of the Code of Ethics of the American Institute of Certified Public Accountants. 
  
 “Initial Basis Swap Counterparty” means Merrill Lynch Capital
Services, Inc., a Delaware corporation that is an Affiliate of the Placement Agent. 
  
 “Initial Hedge Agreement” has the meaning specified in Section 16.1(a) herein. 
  
 “Initial Hedge Counterparty” has the meaning specified in Section 16.1(a) herein. 
  
 “Instruction” has the meaning specified in
Section 8-102(a)(12) of the UCC. 
  
 “Instrument”
has the meaning specified in Section 9-102(a)(47) of the UCC. 
  
 “Interest Collection Account” means the Securities Account designated the “Interest Collection Account” and established in the name of the Trustee pursuant to Section 10.2. 
  
 “Interest Coverage Tests” means the Class A/B Interest Coverage
Test, the Class C Interest Coverage Test, the Class D Interest Coverage Test and the Class E Interest Coverage Test. 
  
 “Interest Distribution Amount” means, with respect to any Class of Notes and any Distribution Date, the sum of (i) the aggregate amount of
interest accrued at the Note Interest Rate for such Class, during the Interest Period ending immediately prior to such Distribution Date, on the Aggregate Outstanding Principal Amount of the Notes of such Class on the first day of such Interest
Period (after giving effect to any redemption of the Notes of such Class or other payment of principal of the Notes of such Class on any preceding Distribution Date), plus (ii) any Defaulted Interest in respect of the Notes of such Class and
accrued interest thereon. The Interest Distribution Amount with respect to the Class C Notes shall not include Class C Deferred Interest (but shall include interest on such Class C Deferred Interest). The Interest Distribution Amount with respect to
the Class D Notes shall not include Class D Deferred Interest (but shall include interest on such Class D Deferred Interest). The Interest Distribution 

  

 30 

 
Amount with respect to the Class E Notes shall not include Class E Deferred Interest (but shall include interest on such Class E Deferred Interest).

  
 “Interest Excess” means the lesser of
(i) U.S.$1,000,000 and (ii) the amount on deposit in the Uninvested Proceeds Account on the Ramp-Up Completion Date (which is not required to be applied to purchase Collateral Debt Securities which the Issuer has committed to purchase);
provided that, on the Ramp-Up Completion Date, the sum of the aggregate Principal Balance of the Collateral Securities which the Issuer has purchased or committed to purchase, plus the aggregate Principal Balance of all Eligible
Investments purchased with Principal Proceeds on deposit in the Principal Collection Account is greater than U.S.$650,000,000; provided, however, that the Interest Excess shall be zero if a Ramp-Up Ratings Confirmation Failure occurs.

  
 “Interest Expense” means, for any related Real
Estate Entity and each of its subsidiaries, for any period, the aggregate of all cash interest expense with respect to all outstanding Debt, as determined in accordance with GAAP for such period. 
  
 “Interest Period” means (i) in the case of the initial
Interest Period, the period from, and including, the Closing Date (or, with respect to any Borrowing, the applicable Borrowing Date) to, but excluding, the first Distribution Date, and (ii) thereafter, the period from, and including, the
Distribution Date immediately following the last day of the immediately preceding Interest Period to, but excluding, the next succeeding Distribution Date; provided, that in the event that any date identified as a Distribution Date (other
than a Redemption Date or at Stated Maturity) falls on a day other than a Business Day, the Distribution Date shall be deemed to be the next succeeding Business Day and, except with respect to the Class B-2 Notes, the Class D-2 Notes and, when such
Notes bear interest at a fixed rate, the Class C-2 Notes and Class C-3 Notes, interest shall accrue on such payment for the period from and after any such identified date to such next succeeding Business Day. 
  
 “Interest Proceeds” means, with respect to any Due Period, the sum
(without duplication) of: (i) all payments of interest with respect to any Pledged Security received during such Due Period, (ii) the Reinvestment Income, if any, representing interest or other earnings on amounts deposited in the
Collection Account which is received during the related Due Period, (iii) the portion of any payments of interest received during the related Due Period on the Pledged Securities representing interest accrued prior to the date of purchase,
(iv) all amendments and waiver fees, all late payment fees and all other fees and commissions received during the related Due Period (other than fees and commissions received in connection with Defaulted Securities and Deferred Interest
Collateral Securities), (v) all payments received from the Interest Reserve Account, the First Distribution Date Reserve Account and the Semi-Annual Interest Reserve Account, (vi) all payments received pursuant to the Hedge Agreements
including payments received up to the Distribution Date (excluding any payments received by reason of an event of default or termination event that are required to be used for the purchase of one or more replacement Hedge Agreements) less any
deferred premium payments payable by the Issuer under the Hedge Agreements on the Distribution Date immediately following such Due Period, (vii) all premiums (including call premiums from tender) received during such Due Period and
(viii) if the aggregate par amount of the Collateral Debt Securities held by the Issuer is at least equal to the Aggregate Ramp-Up Par Amount, Uninvested Proceeds on deposit in the 

  

 31 

 
Uninvested Proceeds Account on the Ramp-Up Completion Date in an amount equal to the Interest Excess; provided, that, solely for purposes of
distributions thereof on any Distribution Date and not for any other purpose (including, without limitation, any Coverage Test), amounts representing Sale Proceeds that are intended to be reinvested in additional Collateral Debt Securities as
permitted by this Indenture shall be excluded from this definition; and provided, further, that interest received on Defaulted Securities (other than interest received on the Defaulted Securities in excess of par) shall be excluded
from this definition. 
  
 “Interest Reserve Account”
means the Securities Account designated the “Interest Reserve Account” and established in the name of the Trustee pursuant to Section 10.4. 
  
 “Investment Company Act” means the United States Investment Company Act of 1940, as amended, and the rules thereunder. 
  
 “Irish Paying Agent” has the meaning specified in Section 7.2.

  
 “Irish Stock Exchange” means the Irish Stock
Exchange Limited. 
  
 “Issuer” means TABERNA PREFERRED
FUNDING IV, LTD., an exempted company incorporated under the laws of the Cayman Islands, unless a successor Person shall have become the Issuer pursuant to the applicable provisions of this Indenture, and thereafter Issuer shall mean such successor
Person. 
  
 “Issuer Charter” means the Memorandum and
Articles of Association of the Issuer, filed under The Companies Law (2004 Revision) of the Cayman Islands, as modified and supplemented and in effect from time to time. 
  
 “Issuer Order” and “Issuer Request” mean, respectively, a written order or a written request, in each
case dated and signed in the name of the Issuer by an Authorized Officer of the Issuer and (if appropriate) the Co-Issuer, or by an Authorized Officer of the Collateral Manager where permitted pursuant to this Indenture or the Collateral Management
Agreement, as the context may require or permit. 
  
 “LIBOR” has the meaning specified in Schedule B. 
  
 “LIBOR Business Day” has the meaning specified in Schedule B. 
  
 “LIBOR Determination Date” has the meaning specified in Schedule B. 
  
 “Majority” means, with respect to any Class or Classes of Notes, the Holders of more than 50% of the Aggregate Outstanding Principal Amount of
the Notes of such Class or Classes of Notes, as the case may be. 
  
 “Majority-in-Interest of Preferred Shareholders” means, at any time, Preferred Shareholders whose aggregate Voting Percentages at such time exceed 50% of all Preferred Shareholders’ Voting Percentages at such time.

  

 32 

 “Margin Stock” means “margin stock” as defined under Regulation U issued by the Board
of Governors of the Federal Reserve System. 
  
 “Master
Forward Sale Agreement” means the Master Forward Sale Agreement, dated as of the Closing Date, between Merrill Lynch International and the Issuer. 
  
 “Maturity” means, with respect to any Note, the date on which all Outstanding unpaid principal of such Note becomes due and payable as therein
or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise. 
  
 “Measurement Date” means: (i) the Closing Date; (ii) the Ramp-Up Completion Date; (iii) any date after the Ramp-Up Completion
Date on which the Issuer disposes of any Collateral Debt Security; (iv) any date after the Ramp-Up Completion Date on which a Collateral Debt Security becomes a Defaulted Security; (v) each Determination Date; (vi) the last Business
Day of any calendar month ending after the Ramp-Up Completion Date (excluding any month preceding the month in which a Determination Date falls); and (vii) with two Business Days’ notice to the Issuer and the Trustee, any other Business
Day that the holders of more than 50% of the aggregate outstanding principal amount of any Class of Notes requests to be a “Measurement Date”; provided, that if any such date would otherwise fall on a day that is not a Business Day,
the relevant Measurement Date will be the next succeeding Business Day. 
  
 “Money” has the meaning specified in Section 1-201(24) of the UCC. 
  
 “Monthly Report” has the meaning specified in Section 10.9(a). 
  
 “Moody’s” means Moody’s Investor’s Service, Inc. and any successor or successors thereto. 
  
 “Moody’s Recovery Rate” means with respect to any Collateral
Debt Security that does not have a publicly assigned rating from Moody’s, 15% and with respect to any Collateral Debt Security that has a publicly assigned rating from Moody’s, as set forth in the Moody’s Recovery Rate Matrix attached
to this Indenture. 
  
 “Net Outstanding Portfolio Collateral
Balance” means, on any Measurement Date, the amount of the aggregate Principal Balance on such Measurement Date of all Collateral Debt Securities, plus (a) the aggregate Principal Balance of all Principal Proceeds and Uninvested Proceeds
held as cash and Eligible Investments and any amount on deposit at such time in the Principal Collection Account or the Uninvested Proceeds Account, minus (b) the aggregate Principal Balance on such Measurement Date of all Collateral Debt
Securities that are Defaulted Securities or Deferred Interest Collateral Debt Securities, plus (c) for each Defaulted Security or Deferred Interest Collateral Debt Security, the Calculation Amount with respect to such Defaulted Security or
Deferred Interest Collateral Debt Security. 
  
 “Non-Qualified Termination Payments” means any termination payment required to be made by the Issuer to the Hedge Counterparty pursuant to a Hedge Agreement in respect of which the Hedge Counterparty is the “Defaulting
Party” or the sole “Affected Party” (each as defined in the related Hedge Agreement); provided, that “Non-Qualified Termination Payments” shall not include any termination payment payable in connection with an early
termination of a 

  

 33 

 
Hedge Agreement, in whole or in part, resulting from an “Illegality” (as such term is defined in such Hedge Agreement) or a “Tax Event”
(as such term is defined in such Hedge Agreement) with respect to which the Hedge Counterparty is the sole “Affected Party.” 
  
 “Note Interest Rate” means, with respect to the Notes of any Class for any Interest Period, the annual rate at which interest accrues on the
Notes of such Class for such Interest Period, as specified in Section 2.2; provided, that, prior to the First Distribution Date, the Note Interest Rate applicable to the Class A-1 Notes shall mean the annual rate at which interest
accrues on each portion of the Class A-1 Notes drawn during such period. 
  
 “Note Register” and “Note Registrar” have the respective meanings specified in Section 2.4(a). 
  
 “Note Valuation Report” has the meaning specified in Section 10.8(c). 
  
 “Noteholder” means the Person in whose name a Note is registered in the Note Register. 
  
 “Notes” means the Class A Notes, Class B Notes, Class C Notes,
Class D Notes and Class E Notes authorized by, and authenticated and delivered under, this Indenture. 
  
 “Offer” means, with respect to any security, any (a) offer by the issuer of such security or by any other Person made to all of the holders
of such security to purchase or otherwise acquire such security (other than pursuant to any redemption in accordance with the terms of its Underlying Instruments) or to convert or exchange such security into or for Cash, securities or any other type
of consideration or (b) solicitation by the issuer of such security or any other Person to amend, modify or waive any provision of such security or any of its Underlying Instruments. 
  
 “Offering” means the offering of the Notes under the Offering Circular. 
  
 “Offering Circular” means the Offering Circular, prepared and
delivered in connection with the offer and sale of the Notes, as amended or supplemented on or prior to the Closing Date. 
  
 “Officer” means, (a) with respect to the Issuer, the Co-Issuer and any corporation, the Chairman of the Board of Directors (or, with
respect to the Issuer, any director or attorney in fact of the Issuer), the President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer or any Assistant Treasurer of such entity; (b) with respect to any bank or trust
company acting as trustee of an express trust or as custodian, any Trust Officer; and (c) with respect to any limited liability company, any managing member thereof or any person to whom the rights and powers of management thereof are delegated
in accordance with the limited liability company agreement of such limited liability company. 
  
 “Opinion of Counsel” means a written opinion addressed to the Issuer, the Co-Issuer, the Trustee, the Collateral Manager, the Hedge Counterparty and each Rating Agency (each, a “Recipient”), in
form and substance reasonably satisfactory to each Recipient, of an attorney at law admitted to practice before the highest court of any state of the United States or 

  

 34 

 
the District of Columbia (or the Cayman Islands, in the case of an opinion relating to the laws of the Cayman Islands), which attorney may, except as
otherwise expressly provided in this Indenture, be counsel for the Issuer or the Co-Issuer and which attorney shall be reasonably satisfactory to the Trustee. Whenever an Opinion of Counsel is required hereunder, such Opinion of Counsel may rely on
opinions of other counsel who are so admitted and so satisfactory which opinions of other counsel shall accompany such Opinion of Counsel and shall either be addressed to each Recipient or shall state that each Recipient shall be entitled to rely
thereon. 
  
 “Optional Redemption” has the meaning
specified in Section 9.1(a). 
  
 “Outstanding”
means, with respect to the Notes, or a particular Class of Notes, as of any date of determination, all of (a) the Notes or (b) the Notes of such Class theretofore authenticated and delivered under this Indenture except: 
  
 (i) Notes theretofore canceled by a Note Registrar or
delivered to a Note Registrar for cancellation; 
  
 (ii) Notes or portions thereof for whose payment or redemption funds in the necessary amount have been theretofore irrevocably deposited with the Trustee or any Paying Agent in trust for the Holders of such Notes; provided, that, if
such Notes or portions thereof are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made; 
  
 (iii) Notes in exchange for, or in lieu of, other Notes
which have been authenticated and delivered pursuant to this Indenture, unless proof satisfactory to the Trustee is presented that any such Notes are held by a holder in due course; and 
  
 (iv) Notes alleged to have been mutilated, destroyed, lost or stolen for which replacement Notes have been
issued as provided in Section 2.5; 
  
 provided, that in determining
whether the Holders of the requisite Aggregate Outstanding Principal Amount have given any request, demand, authorization, direction, notice, consent or waiver hereunder (1) prior to the Commitment Period Termination Date, the Aggregate
Outstanding Principal Amount of the Class A-1 Notes shall be deemed to include the Aggregate Undrawn Amount of such Notes, (2) Notes beneficially owned by the Issuer or the Co-Issuer shall be disregarded and deemed not to be outstanding
and (3) Notes held by, or with respect to which discretionary voting rights are held by, the Collateral Manager or any of its Affiliates shall be disregarded and deemed not to be outstanding with respect to the exercise of any rights to remove
the Collateral Manager or terminate the Collateral Management Agreement but, if a decision has been made to terminate the Collateral Management Agreement, Notes held by, or with respect to which discretionary voting rights are held by, the
Collateral Manager or any of its Affiliates will not be disregarded and will be outstanding for purposes of any vote, consent or other action to be taken in selecting or approving a replacement Collateral Manager, except that, in determining whether
the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Notes that the Trustee knows to be beneficially owned in the manner indicated in clause (1), (2) or
(3) above shall be so disregarded. 

  

 35 

 
Notes owned in the manner indicated in clause (1), (2) or (3) above that have been pledged in good faith may be regarded as Outstanding if the
pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Notes and that the pledgee is not the Issuer, the Co-Issuer, the Collateral Manager or any other obligor upon the Notes or any Affiliate
of the Issuer, the Co-Issuer, the Collateral Manager or such other obligor or an account with respect to which the Collateral Manager or an Affiliate of the Collateral Manager has discretionary voting rights. 
  
 “Overcollateralization Tests” means the Class A/B
Overcollateralization Test, Class C Overcollateralization Test, Class D Overcollateralization Test and Class E Overcollateralization Test. 
  
 “Paying Agent” means any Person authorized by the Issuer to pay the principal of or interest on or the Commitment Fee on any Notes on behalf of
the Issuer as specified in Section 7.2. 
  
 “Payment
Account” means the Securities Account designated the “Payment Account” and established in the name of the Trustee pursuant to Section 10.3. 
  

“Perfection Representations” means the representations, warranties and covenants of the Issuer set forth in Exhibit K attached hereto.

  
 “Person” means an individual, corporation (including
a business trust), partnership, limited liability company, joint venture, association, joint stock company, trust (including any beneficiary thereof), unincorporated association or government or any agency or political subdivision thereof.

  
 “Placement Agent” means Merrill Lynch, Pierce,
Fenner & Smith Incorporated. 
  
 “Pledged Collateral
Debt Security” means, as of any date of determination, any Collateral Debt Security that has been Granted to the Trustee and has not been released from the lien of this Indenture pursuant to Section 10.10. 
  
 “Pledged Securities” means, at any date of determination, the
Collateral Debt Securities and the Eligible Investments in the Trust Estate. 
  
 “Preferred Interests” means, with respect to any Real Estate Entity, equity interests issued by such Real Estate Entity that are entitled to a preference or priority over any other equity interests issued by
such Real Estate Entity upon any distribution of such Real Estate Entity’s property and assets, whether by dividend or upon liquidation. 
  
 “Preferred Share Paying Agency Agreement” means the Preferred Share Paying Agency Agreement dated as of December 23, 2005, between the
Issuer and the Preferred Share Paying Agent. 
  
 “Preferred
Share Paying Agent” means JPMorgan Chase Bank, National Association (or any successor thereto), a national banking association organized under the laws of the United States, as Preferred Share Paying Agent for the Preferred Shares, or any
Person 

  

 36 

 
authorized by the Issuer from time to time to make payments on the Preferred Shares and to deliver notices to the Preferred Shareholders on behalf of the
Issuer. 
  
 “Preferred Share Registrar” means Walkers
SPV Limited (on behalf of the Issuer) and any successor thereto. 
  
 “Preferred Shareholders” means the Persons in whose names Preferred Shares are registered in the ownership register relating to the Preferred Shares maintained by the Preferred Share Registrar. 
  
 “Preferred Shares” means the Preferred Shares, par value $0.01 per
share, in the capital of and issued by the Issuer concurrently with the issuance of the Notes by the Co-Issuers. 
  
 “Primary Senior Notes” means Senior Notes originated for inclusion in the Pledged Securities and acquired by the Issuer from the issuers of such
Senior Notes or out of the warehousing arrangements from the Placement Agent or an affiliate thereof or under the Master Forward Sale Agreement. 
  
 “Principal Balance” or “par” means, with respect to any Pledged Security, as of any date of determination, the outstanding principal
amount of such Pledged Security; provided, that 
  
 (a) the Principal Balance of a Collateral Debt Security received upon acceptance of an Offer for another Collateral Debt Security, which Offer expressly states that failure to accept such Offer may result in a default under the Underlying
Instruments, shall be deemed to be the Calculation Amount of such other Collateral Debt Security until such time as Interest Proceeds and Principal Proceeds, as applicable, are received when due with respect to such other Collateral Debt Security;

  
 (b) the Principal Balance of any Equity
Security, unless otherwise expressly stated herein, shall be deemed to be zero; 
  
 (c) the Principal Balance of any Deferred Interest Collateral Debt Security shall be equal to the outstanding principal amount thereof
(exclusive of any principal thereof representing capitalized interest); 
  
 (d) the Principal Balance of any Eligible Investment that does not pay cash interest on a current basis will be the accreted value of such Eligible Investment (as reported by the Collateral Manager to the Trustee on
the date of purchase of such Eligible Investment); 
  
 (e) to the extent that any two of the three REIT/REOC Coverage Tests reported by the Collateral Manager are not satisfied as of the Measurement Date with respect to any Real Estate Entity, the Principal Balance of the related Collateral
Debt Security shall be deemed to be equal to 80% of the outstanding principal amount of such Collateral Debt Security; and 
  

 37 

 (f) to the extent any two Real Estate Entity Trigger Events occur with respect to any
Real Estate Entity, the Principal Balance of the related Collateral Debt Security shall be deemed to be equal to 50% of the outstanding principal amount of such Collateral Debt Security. 
  
 “Principal Collection Account” means the Securities Account designated the “Principal Collection
Account” and established in the name of the Trustee pursuant to Section 10.2(b). 
  
 “Principal Proceeds” means, with respect to any Due Period, the sum (without duplication) of: (i) all principal payments (including prepayments) received during the related Due Period on the Pledged
Securities (excluding Eligible Investments purchased with Interest Proceeds and excluding Uninvested Proceeds); (ii) all recoveries (excluding for purposes of this clause (ii), Sale Proceeds) on Defaulted Securities; (iii) all Sale
Proceeds of any sale of any Equity Security, Defaulted Security or Credit Risk Security, (iv) any proceeds resulting from the termination and liquidation of the Hedge Agreements received during such Due Period, to the extent such proceeds
exceed the cost of entering into one or more replacement Hedge Agreements in accordance with the requirements set forth in this Indenture, in the event any Hedge Agreement or replacement Hedge Agreement is entered into; (v) any net proceeds of
the issuance and sale of the Offered Securities not used to purchase Collateral Debt Securities and not deposited in the Expense Account or the Uninvested Proceeds Account as of the Closing Date; (vi) notwithstanding clause (i) above, any
Uninvested Proceeds on deposit in the Payment Account following a Ramp-Up Ratings Confirmation Failure, to the extent such funds are in excess of the amount of Uninvested Proceeds that must be used to make payments in respect of principal on the
Notes in order to obtain a Ratings Confirmation; (vii) notwithstanding clause (i) above, if a Ratings Confirmation occurs, Uninvested Proceeds on deposit in the Uninvested Proceeds Account on the Ramp-Up Completion Date (other than any
such Uninvested Proceeds to be used to complete the purchase of Collateral Debt Securities and any Interest Excess to be applied as Interest Proceeds); (viii) any other payments received with respect to the Collateral and not included in
Interest Proceeds; and (ix) any other amount provided by the Issuer to the Trustee for inclusion in Principal Proceeds; provided, that, solely for purposes of distributions thereof on any Distribution Date and not for any other purpose
(including, without limitation, any Coverage Test), amounts representing Sale Proceeds that are intended to be reinvested in additional Collateral Debt Securities as permitted by this Indenture shall be excluded from this definition. 
  
 “Priority of Payments” has the meaning specified in
Section 11.1(a). 
  
 “Proceeding” means any suit in
equity, action at law or other judicial or administrative proceeding. 
  
 “Qualified Bidder List” means a list of not less than two and not more than twenty Persons prepared by the Collateral Manager and delivered to the Trustee at least two Business Days prior to any Auction Date, as may be amended and
supplemented by the Collateral Manager from time to time upon written notice to the Trustee; provided, that any such notice shall only be effective on any Auction Date if it was received by the Trustee at least two Business Days prior to such
Auction Date. 
  

 38 

 “Qualified Bidders” means the Persons whose names appear from time to time on the Qualified
Bidder List. 
  
 “Qualified Institutional Buyer” has the
meaning specified in Rule 144A under the Securities Act. 
  
 “Qualified Preferred Stock” shall mean any Preferred Interest of the Company in respect of which no dividends thereon (other than dividends payable solely in kind) shall be required to be paid at any time or to the extent that
such payment would be prohibited by the terms of any credit agreement, and that is not redeemable prior to the tenth anniversary of the effective date under such credit agreement under any circumstance. 
  
 “Qualified Purchaser” has the meaning specified in
Section 2(a)(51) of the Investment Company Act. 
  
 “Qualified Termination Payments” means any termination payments payable under the applicable Hedge Agreements, other than Non-Qualified Termination Payments. 
  
 “Qualifying Investment Vehicle” means an entity (i) as to which all of the beneficial owners of any
securities issued by such entity have made, and as to which (in accordance with the document pursuant to which such entity was organized or the agreement or other document governing such securities) each such beneficial owner must require any
transferee of any such security to make, to the Issuer or the Co-Issuers, as the case may be, and the Note Registrar (in the case of the Notes) or the Preferred Share Registrar (in the case of the Preferred Shares) each of the representations set
forth herein and in the Preferred Share Paying Agency Agreement required to be made upon transfer of any of the relevant Class of Notes or Preferred Shares (with modifications to such representations satisfactory to the Collateral Manager and the
Issuer to reflect the indirect nature of the interests of such beneficial owners in such Notes or Preferred Shares, including any modification permitting an initial beneficial owner of securities issued by such entity to represent that it is an
Accredited Investor in lieu of being a Qualified Institutional Buyer). 
  
 “Quarterly Asset Amount” means, with respect to any Distribution Date, the Net Outstanding Portfolio Collateral Balance on the first day of the related Due Period or, in the case of the first Due Period, on the Closing Date.

  
 “Ramp-Up Completion Date” means the date that is the
earlier of (a) 120 days following the Closing Date and (b) the first day on which the aggregate par amount of the Collateral Debt Securities held by the Issuer is at least equal to the Aggregate Ramp-Up Par Amount. 
  
 “Ramp-Up Notice” has the meaning specified in Section 7.18(e).

  
 “Ramp-Up Ratings Confirmation Failure” has the
meaning specified in Section 7.18(e). 
  
 “Rating
Agency” means each of (i) Standard & Poor’s, for so long as any of the Outstanding Notes are rated by Standard & Poor’s (including any private or confidential rating) 

  

 39 

 
and (ii) Fitch, for so long as any of the Outstanding Notes are rated by Fitch (including any private or confidential rating and
(iii) Moody’s, for so long as any of the Outstanding Notes are rated by Moody’s (including any private or confidential ratings). 
  
 “Rating Condition” means, with respect to any action taken or to be taken or any determination made or to be made under this Indenture, a
condition that is satisfied when each Rating Agency (or, if only one Rating Agency is specified, such Rating Agency) has confirmed in writing to the Issuer, the Trustee, each Hedge Counterparty and the Collateral Manager that such action will not
result in the withdrawal, reduction or other adverse action with respect to its then-current rating (including any private or confidential rating) of any Class of Notes; provided, that, with respect to any action that requires that the Rating
Condition be satisfied by Standard & Poor’s and Moody’s, but not Fitch, the Issuer shall provide (or shall cause the Collateral Manager to provide) Fitch with written notice of such action within 30 days thereof. 
  
 “Rating Criteria” has the meaning specified in the Class A-1
Note Purchase Agreement. 
  
 “Ratings Confirmation” has
the meaning specified in Section 7.18(d). 
  
 “Ratings
Confirmation Failure” has the meaning specified in Section 7.18(d). 
  
 “Ratings Threshold” means, with respect to the Hedge Counterparty or any transferee thereof, (a)(i) the rating of the long-term senior unsecured, unguaranteed and otherwise unsupported debt obligations of
the related Hedge Ratings Determining Party or such transferee (or any affiliate of such transferee that unconditionally and absolutely guarantees the obligations of such transferee hereunder) is withdrawn, suspended or falls below “BBB-”
by Standard & Poor’s or (ii) the rating of the short-term, unsecured, unguaranteed and otherwise unsupported debt obligations of the related Hedge Ratings Determining Party or such transferee (or any affiliate of such transferee
that unconditionally and absolutely guarantees the obligations of such transferee hereunder) is withdrawn, suspended or falls below “A-3” by Standard & Poor’s or (b)(i) if the related Hedge Ratings Determining Party or such
transferee (or any affiliate of such transferee that unconditionally and absolutely guarantees the obligations of such transferee hereunder) has an unsecured, unguaranteed and otherwise unsupported long-term debt rating by Moody’s (and not a
short-term rating), the rating of the long-term senior unsecured, unguaranteed and otherwise unsupported debt obligations of the related Hedge Ratings Determining Party or such transferee (or any affiliate of such transferee that unconditionally and
absolutely guarantees the obligations of such transferee hereunder) is withdrawn, suspended or falls to or below “A2” by Moody’s or (ii) if the related Hedge Ratings Determining Party or such transferee (or any affiliate of such
transferee that unconditionally and absolutely guarantees the obligations of such transferee hereunder) has both a long-term and a short-term rating, (x) the rating of the unsecured, unguaranteed and otherwise unsupported long-term senior debt
obligations of the related Hedge Ratings Determining Party or such transferee (or any affiliate of such transferee that unconditionally and absolutely guarantees the obligations of such transferee hereunder) falls to or below “A3” by
Moody’s and (y) the rating of the unsecured, unguaranteed and otherwise unsupported short-term senior debt obligations of the related Hedge Ratings Determining Party or such transferee (or any affiliate of such transferee that
unconditionally and absolutely guarantees the obligations of such transferee hereunder) falls to or below “P-2” by 

  

 40 

 
Moody’s or (c)(i) the rating of the long-term senior unsecured, unguaranteed and otherwise unsupported debt obligations of the related Hedge Ratings
Determining Party or such transferee (or any affiliate of such transferee that unconditionally and absolutely guarantees the obligations of such transferee hereunder) is withdrawn, suspended or falls below “BBB+” by Fitch or (ii) the
rating of the short-term, unsecured, unguaranteed and otherwise unsupported debt obligations of the related Hedge Ratings Determining Party or such transferee (or any affiliate of such transferee that unconditionally and absolutely guarantees the
obligation of such transferee hereunder) is withdrawn, suspended or falls below “F2” by Fitch. 
  
 “Real Estate Entities” means, collectively, REITs and REOCs. 
  
 “Real Estate Entity” means REITs or REOCs, as applicable. 
  
 “Real Estate Entity Trigger Event” means, with respect to any Real
Estate Entity, the occurrence of any of the following events: 
  
 (i) the failure by the related REIT to pay dividends on its common stock for two consecutive calendar quarters so long as such distribution is required for purposes of satisfying Section 856 through 860 (or any
successor sections thereto) of the Code; 
  
 (ii)
the failure to maintain a Fixed Charge Coverage Ratio of 1:1 or more as of each Measurement Date; and 
  
 (iii) the failure to cure any monetary default with respect to any indebtedness owed by the related Real Estate Entity within 30 days of
the occurrence of the same. 
  
 “Record Date” means the
date on which the Holders of Notes entitled to receive a payment in respect of principal or interest or the Commitment Fee on the succeeding Distribution Date or Redemption Date are determined, such date as to any Distribution Date or Redemption
Date being the 15th day (whether or not a Business Day) prior to such Distribution Date or Redemption Date. 
  
 “Redemption Date” means any date set for a redemption of Notes pursuant to Section 9.1 or, if such date is not a Business Day, the next
following Business Day. 
  
 “Redemption Date Statement”
has the meaning specified in Section 10.8(e). 
  
 “Redemption Price” means, as applicable, the Class A-1 Note Redemption Price, Class A-2 Note Redemption Price, Class A-3 Note Redemption Price, Class B-1 Note Redemption Price, Class B-2 Note Redemption Price, Class
C-1 Note Redemption Price, Class C-2 Note Redemption Price, Class C-3 Note Redemption Price, Class D-1 Note Redemption Price, Class D-2 Note Redemption Price, and Class E Note Redemption Price. 
  
 “Reference Banks” has the meaning specified in Schedule B.

  
 “Reg Y Institution” means any Preferred Shareholder
that is, or is controlled by a person that is, subject to the provisions of Regulation Y of the Board of Governors of the Federal Reserve System of the United States or any successor to such regulation, but excludes, in any 

  

 41 

 
event, (a) any “qualifying foreign banking organization” within the meaning of Regulation Y of the Board of Governors of the Federal Reserve
System (12 C.F.R. Section 211.23) that has booked its investment in the Preferred Shares outside the United States and (b) any financial holding company or subsidiary of a financial holding company authorized to engage in merchant banking
activities pursuant to Section 4(k)(4)(H) of the Bank Holding Company Act of 1956, as amended. 
  
 “Registered Form” has the meaning specified in Section 8-102(a)(13) of the UCC. 
  
 “Regulation S Combination Note” has the meaning specified in
Section 2.1(a). 
  
 “Regulation S Global Note” has
the meaning specified in Section 2.1(a). 
  
 “Regulation
S Global Securities” has the meaning specified in Section 2.1(a). 
  
 “Regulation S Notes” means, collectively, Regulation S Global Notes and Regulation S Definitive Notes. 
  
 “Regulation S Note Transfer Certificate” has the meaning specified in Section 2.4(b)(i)(C). 
  
 “Regulation U” means Regulation U of the Board of Governors of the
Federal Reserve System, 12 C.F.R. § 221, or any successor regulation. 
  
 “Reinvestment Income” means any interest or other earnings on Eligible Investments in the Collection Accounts, including any amount representing the accreted portion of a discount from the face amount of an
Eligible Investment and all payments of principal, including prepayments, on Eligible Investments purchased with amounts from the Interest Collection Account. 
  

“REIT” means a real estate investment trust, company or other organization that satisfies the requirements of Sections 856 through 860 of the
Code. 
  
 “REIT/REOC Coverage Tests” means the REIT/REOC
Interest Coverage Test, the Total Debt to Total Capitalization Test and the Tangible Net Worth Test. 
  
 “REIT/REOC Interest Coverage Ratio” means, as of the last day of the preceding fiscal quarter, determined (i) on a four quarter trailing
basis or (ii) with respect to the preceding fiscal quarter, whichever is greater, the ratio of (a) EBITDA of the related Real Estate Entity and its subsidiaries determined on a Consolidated basis to (b) Interest Expense of such Real
Estate Entity and its subsidiaries determined on a Consolidated basis during such period. 
  
 “REIT/REOC Interest Coverage Test” means a test that is satisfied on any Measurement Date occurring on or after the Ramp-Up Completion Date if the REIT/REOC Interest Coverage Ratio is equal to or greater
than (i) 1.5:1 with respect to equity Real Estate Entities and (ii) 1.35:1 with respect to mortgage Real Estate Entities. 
  

 42 

 “Relevant Jurisdiction” means, as to any obligor on any Collateral Debt Security, any
jurisdiction (a) in which the obligor is incorporated, organized, managed and controlled or considered to have its seat, (b) where an office through which the obligor is acting for purposes of the relevant Collateral Debt Security is
located, (c) in which the obligor executes Underlying Instruments or (d) in relation to any payment, from or through which such payment is made. 
  
 “Relevant Persons” has the meaning specified in Section 2.7. 
  
 “REOC” means a real estate operating company, trust or other organization that does not satisfy the requirements
of Sections 856 through 860 of the Code. 
  
 “Repository” means the internet-based password protected electronic repository of transaction documents relating to privately offered and sold collateralized debt obligation securities located at www.cdolibrary.com. 
  
 “Restricted Combination Note” has the meaning specified in
Section 2.1(b). 
  
 “Restricted Definitive Note”
has the meaning specified in Section 2.1(c). 
  
 “Restricted Global Note” has the meaning specified in Section 2.1(b). 
  
 “Restricted Notes” means, collectively, Restricted Global Notes and Restrictive Definitive Notes. 
  
 “Rule 144A” means Rule 144A under the Securities Act. 
  

“Rule 144A Information” means such information as is specified pursuant to Rule 144A(d)(4 under the Securities Act (or any successor
provision thereto). 
  
 “Rule 144A Note Transfer
Certificate” has the meaning specified in Section 2.4(b)(i)(B). 
  
 “Sale” has the meaning specified in Section 5.17. 
  
 “Sale Proceeds” means all proceeds received from the sale or other disposition of any Credit Risk Security, Defaulted Security or any Equity
Security net of any reasonable amounts expended by the Collateral Administrator or the Trustee in connection with such sale or other disposition. 
  
 “Schedule of Collateral Debt Securities” means the list of Collateral Debt Securities securing the Notes that is attached as Schedule A, which
Schedule shall include the Collateral Debt Securities Issuers, the Real Estate Entities relating to the Trust Preferred Securities Issuers and the par amount of each Collateral Debt Security purchased on the Closing Date. 
  
 “Scheduled Distribution” means, with respect to any Pledged
Security, for each Due Date, the scheduled payment in Cash of principal and/or interest and/or fee due on such Due 

  

 43 

 
Date with respect to such Pledged Security, determined in accordance with the assumptions specified in Section 1.2. 
  
 “Second Currency” has the meaning specified in Section 14.12.

  
 “Secondary Senior Notes” means Senior Notes
purchased by the Issuer in secondary market transactions from the sellers thereof, which are not the issuers of such Senior Notes. 
  
 “Section 3(c)(7) Procedures” means, collectively, the actions taken by the Issuer pursuant to Sections 7.20(a), (b), (c) and (d).

  
 “Section 3(c)(7) Reminder Notice” means a notice
from the Issuer to the Noteholders (to be delivered in accordance with Section 10.9(d)) in substantially the form of Exhibit M. 
  
 “Secured Obligations” has the meaning specified in the Granting Clauses of this Indenture. 
  
 “Secured Parties” has the meaning specified in the Preliminary
Statement of this Indenture. 
  
 “Securities Account”
has the meaning specified in Section 8-501(a) of the UCC. 
  
 “Securities Act” means the United States Securities Act of 1933, as amended. 
  
 “Securities Intermediary” has the meaning specified in Section 8-102(a)(14) of the UCC. 
  
 “Security” has the meaning specified in Section 8-102(a)(15)
of the UCC. 
  
 “Security Certificate” has the meaning
specified in Section 8-102(a)(16) of the UCC. 
  
 “Security Entitlement” has the meaning specified in Section 8-102(a)(17) of the UCC. 
  
 “Semi-Annual Interest Reserve Account” means the Securities Account designated on the “Semi-Annual Interest Reserve Account” and
established in the name of the Trustee pursuant to Section 10.4. 
  
 “Senior Note Issuer” has the meaning specified in the definition of “Senior Notes.” 
  
 “Senior Notes” means senior notes issued by Real Estate Entities (or, in the case of one issuer a business development company as defined under
Section 2(a)(48) under the Investment Company Act of 1940) (each, a “Senior Note Issuer”). 
  

 44 

 “Share Register” and “Share Registrar” have the respective meanings specified in
Section 2.4(a). 
  
 “Shortfall Amount” means, with
respect to any Distribution Date on which the Interest Proceeds available for distribution on such date are insufficient to pay the items identified in Section 11.1(a)(i)(5) and Section 11.1(a)(i)(7), an amount equal to the lesser of
(a) an amount sufficient, when added to the Interest Proceeds that are available for such purpose on such Distribution Date, to pay such items in full on such Distribution Date and (b) the entire balance in the Interest Reserve Account.

  
 “Sold Security” has the meaning specified in
Section 12.3. 
  
 “Specified Change” means any
amendment or waiver of, or supplement to, an Underlying Instrument governing or relating to a Collateral Debt Security that (a) reduces the principal amount of such Collateral Debt Security, (b) reduces the rate of interest or any fee
payable on such Collateral Debt Security, (c) postpones the Due Date of any Scheduled Distribution in respect of such Collateral Debt Security, (d) alters the pro rata allocation or sharing, or the relative priorities, of
Distributions required by such Underlying Instrument, (e) releases any material guarantor of such Collateral Debt Security from its obligations, (f) terminates or releases any material lien or security interest securing such Collateral
Debt Security or (g) changes any of the provisions of such Underlying Instrument specifying the number or percentage of lenders or holders required to effect any of the foregoing; provided, that any amendment, waiver or supplement
referred to in any of clauses (a) through (d) shall constitute a “Specified Change” only to the extent the Issuer would be adversely affected thereby. 
  
 “Specified Currency” has the meaning specified in Section 14.12. 
  
 “Specified Person” has the meaning specified in Section 2.5.

  
 “Specified Place” has the meaning specified in
Section 14.12. 
  
 “Standard &
Poor’s” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and any successor or successors thereto. 
  
 “Standard & Poor’s Recovery Rate” means, with respect to any Collateral Debt Security on any
Measurement Date, an amount equal to the percentage for such Collateral Debt Security set forth in the Standard & Poor’s recovery rate matrix set forth hereto as Exhibit P in (x) the table applicable to the rating assigned on the
Closing Date to each rated Class of Notes then rated by Standard & Poor’s and (y) the row in such table opposite the actual rating by Standard & Poor’s of such Collateral Debt Security on such Measurement Date.

  
 “Standard & Poor’s Break-Even Default
Rate” means, at any time, the maximum percentage of defaults which the Standard & Poor’s Current Portfolio or the Standard & Poor’s Proposed Portfolio, as applicable, can sustain (as determined by the
Standard & Poor’s CDO Monitor), which after giving effect to Standard & Poor’s assumptions on recoveries and timing and to the Priority of Payments will result in insufficient funds remaining for the payment of the

  

 45 

 
Class A Notes in full by their Stated Maturity and the timely payment of interest on the Class A Notes, as determined by Standard &
Poor’s. 
  
 “Standard & Poor’s CDO
Monitor” means a dynamic, analytical computer model developed by Standard & Poor’s and used to determine the credit risk of a portfolio of Collateral Debt Securities and provided to the Collateral Manager and the Issuer on or
before the Closing Date, as it may be modified by Standard & Poor’s from time to time. 
  
 “Standard & Poor’s CDO Monitor Test” means a test that will be satisfied on the Ramp-Up Completion Date if, after giving effect to
the purchase or sale of a Collateral Debt Security (or both), as the case may be, (i) the Standard & Poor’s Loss Differential of the Standard & Poor’s Proposed Portfolio is positive or (ii) the
Standard & Poor’s Loss Differential of the Standard & Poor’s Proposed Portfolio is greater than the Standard & Poor’s Loss Differential of the Standard & Poor’s Current Portfolio. 

 
 “Standard & Poor’s Current Portfolio” means the
portfolio (measured by principal balance) of Collateral Debt Securities and the proceeds of the disposition thereof held as cash and Eligible Investments purchased with the proceeds of the disposition of Collateral Debt Securities, existing
immediately prior to the sale, maturity or other disposition of a Collateral Debt Security or immediately prior to the acquisition of a Collateral Debt Security, as the case may be. 
  
 “Standard & Poor’s Loss Differential” means, at any time, the rate calculated by subtracting the
Standard & Poor’s Scenario Default Rate from the Standard & Poor’s Break-Even Default Rate at such time. 
  
 “Standard & Poor’s Proposed Portfolio” means the portfolio (measured by principal balance) of Collateral Debt Securities and the
proceeds of the disposition thereof held as cash and Eligible Investments purchased with the proceeds of the disposition of Collateral Debt Securities resulting from the sale, maturity or other disposition of a Collateral Debt Security or a proposed
purchase of a Collateral Debt Security, as the case may be. 
  
 “Standard & Poor’s Scenario Default Rate” means, at any time, means an estimate of the cumulative default rate for the Standard & Poor’s Current Portfolio or the Standard & Poor’s Proposed
Portfolio, as applicable, consistent with a “AAA” rating by Standard & Poor’s with respect to the Class A Notes, determined by application of the Standard & Poor’s CDO Monitor at such time. 
  
 “Stated Maturity” means, with respect to (a) any security
(other than a Note), the date specified in such security as the fixed date on which the final payment of principal of such security is due and payable, (b) any repurchase obligation, the repurchase date thereunder on which the final repurchase
obligation thereunder is due and payable, and (c) any Class of Notes, May 5, 2036, or, with respect to clause (c), if such date is not a Business Day, the next following Business Day. 
  
 “Subordinate Collateral Management Fee” means the fee payable to
the Collateral Manager in arrears on each Distribution Date pursuant to Section 8 of the Collateral Management Agreement (or any comparable provision in any replacement collateral 

  

 46 

 
management agreement), in an amount (which shall be certified by the Collateral Manager to the Trustee) equal to 0.20% per annum of the Quarterly Asset
Amount for such Due Period and subject to the Priority of Payments. 
  
 “Subordinate Interests” has the meaning specified in Section 13.1(a), (b), (c), (d) or (e), as applicable. 
  
 “Subordinated Note Issuer” has the meaning specified in the definition of “Subordinated Notes.” 
  
 “Subordinated Notes ” means subordinated notes issued by Real
Estate Entities (each, a “Subordinated Note Issuer”). 
  
 “Subpool” means each of the groups of Collateral Debt Securities designated by the Collateral Manager in accordance with the Auction Procedures on which Qualified Bidders may provide a separate bid in an Auction. 
  
 “Taberna Capital Management” means Taberna Capital Management, LLC,
a Delaware limited liability company. 
  
 “Tangible Net
Worth” means as of any Measurement Date, the greater of (i) undepreciated book value or (ii) fair market value of the total amount of assets of a Real Estate Entity and its subsidiaries on a Consolidated basis, plus any debt
subordinate to the applicable Collateral Debt Security, less (i) intangible assets and (ii) total liabilities of such Real Estate Entity and its subsidiaries (excluding any debt subordinate to the applicable Collateral Debt Security),
determined using (A) the average on a four quarter trailing basis, or (B) such amount as of the end of the preceding fiscal quarter of such Real Estate Entity whichever is greater, all as reflected in the balance sheet of such Real Estate
Entity and its subsidiaries as of the end of the most recently ended fiscal quarter, as determined by the Collateral Manager. 
  
 “Tangible Net Worth Test” means a test that is satisfied on any Measurement Date occurring on or after the Ramp-Up Completion Date if the
Tangible Net Worth is equal to or greater than $75,000,000. 
  
 “Tax Event” means an event that occurs if (a) any obligor or paying agent is required to deduct or withhold from any payment under any Collateral Debt Security to the Issuer or under any Corresponding Debenture or in respect
of any Limited Guarantee for or on account of any tax for whatever reason, whether or not as a result of any change in law or interpretation, and the related obligor or paying agent is not required to pay to the Issuer such additional amount as is
necessary to ensure that the net amount actually received by the Issuer (free and clear of taxes, whether assessed against such obligor or the Issuer) will equal the full amount that the Issuer would have received had no such deduction or
withholding occurred or (b) a net income, profits or similar tax is imposed on a Trust Preferred Securities Issuer or (c) a net income, profits or similar tax is imposed on the Issuer. 
  
 “Tax Materiality Condition” means a condition that is satisfied
during any 12-month period if the sum of (i) the aggregate amount deducted or withheld during such 12-month period for or on account of any tax by all obligors or paying agents from payments to 

  

 47 

 
the Issuer under any Collateral Debt Security or under any Corresponding Debenture or in respect of any Limited Guarantee (net of any gross-up payment made
by such obligor to the Issuer) and (ii) the aggregate amount of any net income, profits or similar tax imposed on the Issuer during such 12-month period exceeds U.S.$2,000,000. 
  
 “Tax Redemption” has the meaning specified in Section 9.1(a). 
  
 “Total Capitalization” means, with respect to any Real Estate
Entity and its subsidiaries on a Consolidated basis, as of the last day of the preceding fiscal quarter of such Real Estate Entity and its subsidiaries, the sum of: (a) the Total Debt as of such day plus (b) the greater of (i) the net
worth (the greater of book or market value) of such Real Estate Entity (on a consolidated basis) as of such day or (ii) the product of (A) the total number of common shares issued and outstanding and (B) the closing price per share as
of such day plus (c) without duplication of clause (b), the sum of minority interests in other Persons held by such Real Estate Entity (on a consolidated basis) plus (d) without duplication of clause (b), Preferred Interests as of such
day. 
  
 “Total Debt” means, with respect to any Real
Estate Entity and its subsidiaries on a Consolidated basis, as of the last day of the preceding fiscal quarter of such Real Estate Entity and its subsidiaries, the aggregate outstanding principal amount of Debt of such Real Estate Entity (on a
consolidated basis) as of such day. For the purpose of this definition, Total Debt shall not include the Collateral Debt Security or any substantially similar security issued by such Real Estate Entity. 
  
 “Total Debt to Total Capitalization Ratio” means, as of any
Measurement Date, the ratio (expressed as a decimal) of: (a) the Total Debt minus cash and other unencumbered assets as of such day to (b) the Total Capitalization as of such day, in each case determined as of the last day of the most
recently ended fiscal quarter of the related Real Estate Entity using (i) the average on a four quarter trailing basis or (ii) such ratio as of the last day of such preceding fiscal quarter, whichever is lesser. 
  
 “Total Debt to Total Capitalization Test” means a test that is
satisfied on any Measurement Date occurring on or after the Ramp-Up Completion Date if the Total Debt to Total Capitalization Ratio is equal to or less than (i) 0.75:1 with respect to equity Real Estate Entities and (ii) 0.95:1 with
respect to mortgage Real Estate Entities. 
  
 “Total Senior
Redemption Amount” means the aggregate amount necessary to pay all amounts (including fees and expenses incurred by the Trustee and the Collateral Manager in connection with any applicable sale) due and payable by the Issuer under
Section 11.1(a) prior to the payment of the Notes, to pay any accrued and unpaid Hedge Payment Amounts (including termination payments) payable by the Issuer pursuant to the Hedge Agreements and any fees and expenses incurred by the Trustee and
the Collateral Manager in connection with such sale of Collateral Debt Securities and to redeem the Notes on the scheduled Redemption Date at the applicable Redemption Price therefor, together with all accrued interest and the Commitment Fee to the
date of redemption. 
  

 48 

 “Transaction Documents” means collectively, this Indenture, the Hedge Agreements, the
Collateral Management Agreement, the Collateral Administration Agreement, the Securities Account Control Agreement, the Class A-2 Agency and Amending Agreement, the Class A-2 Account Control Agreement, the Issuer Charter, the Preferred
Shares and the Notes. 
  
 “Transfer Agent” means the
Person or Persons, which may be the Issuer, authorized by the Issuer to exchange or register the transfer of Notes. 
  
 “Trust Estate” means all of the assets of the Issuer in which a security interest is Granted to the Trustee pursuant to this Indenture.

  
 “Trust Officer” means, when used with respect to the
Trustee, any Officer within the Corporate Trust Office (or any successor group of the Trustee) authorized to act for and on behalf of the Trustee, including any vice president, assistant vice president or other Officer of the Trustee customarily
performing functions similar to those performed by the persons who at the time shall be such Officers, respectively, or to whom any corporate trust matter is referred at the Corporate Trust Office because of such person’s knowledge of and
familiarity with the particular subject. 
  
 “Trust Preferred
Securities” means certain trust preferred securities issued by trust subsidiaries (each a “Trust Preferred Securities Issuer”) of Real Estate Entities. 
  
 “Trust Preferred Securities Issuer” has the meaning specified in the definition of “Trust Preferred
Securities.” 
  
 “Trustee” means JPMorgan Chase
Bank, National Association, a national banking association organized under the laws of the United States, solely in its capacity as trustee hereunder, unless a successor Person shall have become the Trustee pursuant to the applicable provisions of
this Indenture, and thereafter Trustee shall mean such successor Person. 
  
 “UCC” means the Uniform Commercial Code as in effect in the State of New York or, if applicable, the State of the United States that governs the relevant security interest, as amended from time to time.

  
 “Underlying Instruments” means the indenture or
other agreement pursuant to which a Pledged Security or Equity Security has been issued or created and each other agreement that governs the terms of or secures the obligations represented by such Pledged Security or Equity Security or of which the
holders of such Pledged Security or Equity Security are the beneficiaries. 
  
 “Uninvested Interest Proceeds” has the meaning specified for such term in Section 10.2(j). 
  
 “Uninvested Proceeds” means, at any time, the net proceeds received by the Issuer on the Closing Date from the initial issuance of the
Securities, to the extent such proceeds have not been deposited into the Expense Account pursuant to Section 10.4(a) or invested in Collateral Debt Securities in accordance with the terms of this Indenture. 
  

 49 

 “Uninvested Proceeds Account” has the meaning specified in Section 10.5. 
  
 “United States” and “U.S.” means the United States of
America, including the States thereof and the District of Columbia. 
  
 “Unregistered Securities” has the meaning specified in Section 5.17(c). 
  
 “U.S. Person” has the meaning specified in Regulation S under the Securities Act. 
  
 “U.S. Security” means any Collateral Debt Security or Hedge Agreement, as to which a borrower, issuer or guarantor
thereof in the case of a Collateral Debt Security, or the Hedge Counterparty in the case of a Hedge Agreement, is a United States person as defined under Section 7701(a)(30) of the Code. 
  
 “USA PATRIOT Act” means the United States Uniting and Strengthening
America By Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, signed into law on and effective as of October 26, 2001, which, among other things, requires that financial institutions, a term that includes
banks, broker-dealers and investment companies, establish and maintain compliance programs to guard against money laundering activities. 
  
 “USD-ISDA-Swap Rate” means that the rate for a reset date will be the rate for U.S. Dollar swaps with a maturity of the designated
maturity, expressed as a percentage, which appears on the Reuters Screen ISDAFIXI Page as of 11:00 a.m., New York City time, on the day that is two Business Days preceding that reset date. If such rate does not appear on the Reuters Screen ISDAFIXI
Page, the rate for that reset date will be a percentage determined on the basis of mid-market semi-annual swap rate quotations provided by the Trustee at approximately 11:00 a.m. New York City time, on the day that is two Business Days preceding
that reset date. 
  
 “Voting Percentage” means the ratio
(expressed as a percentage) of a Preferred Shareholder’s Voting Preferred Shares to the aggregate Voting Preferred Shares of all Preferred Shareholders at such time. 
  
 “Voting Preferred Shares” means (a) for each Preferred Shareholder other than a Reg Y Institution, the number
of Preferred Shares held by such Preferred Shareholder at such time and (b) for any Reg Y Institution, an amount equal to the lesser of (i) the number of Preferred Shares held by such Preferred Shareholder at such time and (ii) 4.99%
of the aggregate number of Preferred Shares held by all Preferred Shareholders at such time. 
  
 “Weighted Average Coupon” means, as of any date of determination, the fraction (expressed as a percentage) obtained by (i) multiplying the principal balance of each fixed rate Collateral Debt Security
(excluding hybrids) or Deemed Fixed Rate Collateral Debt Securities by the Current Coupon, (ii) summing the amounts determined pursuant to clause (i) for all fixed rate Collateral Debt Securities held by the Issuer as of such date of
determination, and (iii) dividing such sum by the aggregate principal balance of all fixed rate Collateral Debt Securities (excluding hybrids) or Deemed Fixed Rate Collateral Debt Securities held by the Issuer as of such date of determination.
For fixed rate Collateral Debt Securities, if any, whose fixed rate changes over the life of such fixed rate Collateral Debt Security, the per annum rate of interest 

  

 50 

 
for purposes of calculating the Weighted Average Coupon shall be the current interest rate on such fixed rate Collateral Debt Security. For Deferred Interest
Collateral Debt Securities and Defaulted Securities, the Current Coupon shall be zero for the purposes of calculating the Weighted Average Coupon. 
  
 “Weighted Average Coupon Test” means a test that will be satisfied on the Ramp-Up Completion Date if the Weighted Average Coupon with respect to
CMBS and Secondary Senior Notes is equal to or greater than 5.35% on such date. 
  
 “Weighted Average Hybrid Coupon” means, as of any date of determination, the fraction (expressed as a percentage) obtained by (a) multiplying the principal balance of each fixed/floating rate Collateral
Debt Security that by its terms bears interest at a fixed rate for up to five years or up to ten years, after which it bears interest at a floating spread (the “Five Year Collateral” and “Ten Year Collateral,” respectively) by
the fixed coupon thereof, (b) summing the amounts determined pursuant to clause (a) for all Five Year Collateral and Ten Year Collateral held by the Issuer as of such date of determination, and (c) dividing such sum by the aggregate
principal balance of all Five Year Collateral and Ten Year Collateral held by the Issuer as of such date of determination. For the avoidance of doubt, Five Year Collateral and Ten Year Collateral will not apply to this definition after they are no
longer bearing a fixed rate of interest. For Deferred Interest Collateral Debt Securities and Defaulted Securities, the current interest rate shall be zero for the purposes of calculating the Weighted Average Hybrid Coupon. 
  
 “Weighted Average Hybrid Coupon Test” means a test that will be
satisfied on the Ramp-Up Completion Date if the Weighted Average Hybrid Coupon with respect to Trust Preferred Securities, Primary Senior Notes and Subordinated Notes that are classified as Five Year Collateral or Ten Year Collateral is equal to or
greater than 7.10% on such date. 
  
 “Weighted Average
Spread” means, as of any date or determination, a fraction (expressed as a percentage) obtained by (i) multiplying the principal balance of each floating rate Collateral Debt Security or Deemed Floating Rate Collateral Debt Security by the
Current Spread, (ii) summing the amounts determined pursuant to clause (i) for all floating rate Collateral Debt Securities or Deemed Floating Rate Collateral Debt Securities held by the Issuer as of such date of determination and
(iii) dividing such sum by the aggregate principal balance of the floating rate Collateral Debt Securities or Deemed Floating Rate Collateral Debt Securities held by the Issuer as of such date of determination. For floating rate Collateral Debt
Securities, if any, that provide for the payment of interest only after the expiration of a specified period or that by their terms provide for the payment of interest at a rate that increases after the expiration of a specified period of time prior
to its maturity, the per annum rate of interest for purposes of calculating the Weighted Average Spread shall be the Current Spread on such floating rate Collateral Debt Security. For Collateral Debt Securities that bear interest at a fixed rate
until a specified date and then bear interest at a floating rate thereafter, the per annum rate of interest for purposes of calculating the Weighted Average Spread shall be the floating rate at which such Collateral Debt Security will eventually
bear interest, as if such rate were in effect on the date of determination. For Deferred Interest Collateral Debt Securities and Defaulted Securities, the Current Spread shall be zero for the purposes of calculating Weighted Average Spread.

  

 51 

 “Weighted Average Spread Test” means, a test that will be satisfied if the Weighted Average
Spread with respect to Trust Preferred Securities, Primary Senior Notes and Subordinated Notes is 2.70% on the Ramp-Up Completion Date. 
  
 Section 1.2. Assumptions, Calculations and Determinations as to Collateral Debt Securities, Etc. 
  
 (a) The provisions set forth in this Section 1.2 shall be applied in
connection with all calculations or determinations required to be made pursuant to this Indenture with respect to Scheduled Distributions on any Pledged Security, or any payments on any other assets included in the Collateral, and with respect to
the income that can be earned on Scheduled Distributions on such Pledged Securities and on any other amounts that may be received for deposit in the Collection Accounts. 
  
 (b) All calculations and determinations with respect to Scheduled Distributions on the Pledged Securities securing the Notes
shall be made by the Collateral Manager using (in the case of the Collateral Debt Securities) the assumptions that (i) no Pledged Security defaults or is sold, (ii) any clean-up call with respect to a Pledged Security will be exercised
when economic to the Person or Persons entitled to exercise such call, and (iii) no other optional redemption of any Pledged Security will occur except for those that have actually occurred or as to which irrevocable notice thereof shall have
been given. To the extent they are not manifestly in error, any information or report received by the Collateral Manager with respect to a Collateral Debt Security may be conclusively relied upon in making such calculations. 
  
 (c) For purposes of determining compliance with the Coverage Tests, except as
otherwise specified in the Coverage Tests, there shall be excluded all Scheduled Distributions in respect of any Defaulted Security, Deferred Interest Collateral Debt Security or Equity Security or any payment including any Hedge Payment Amounts
payable to the Issuer by the Hedge Counterparty as to which the Collateral Manager has determined in its reasonable judgment will not be made in Cash or will not be received when due. For purposes of calculating each Interest Coverage Ratio:

  
 (i) the expected interest income on Floating
Rate Collateral Debt Securities, Eligible Investments and under the Hedge Agreements and the expected interest payable on the Notes will be calculated using the interest rates applicable thereto on the applicable Measurement Date; 
  
 (ii) accrued original issue discount on Eligible Investments
will be deemed to be a scheduled interest payment thereon due on the date such original issue discount is scheduled to be paid; 
  
 (iii) payments made by the Basis Swap Counterparty pursuant to the Basis Swap will not constitute scheduled interest on any Class of
Notes; and 
  
 (iv) it will be assumed that no
principal payments are made on the Notes during the applicable periods. 
  

 52 

 (d) For each Due Period, the Scheduled Distribution on any Pledged Security (other than (A) a
Defaulted Security or (B) a Deferred Interest Collateral Debt Security, which in either case, except as otherwise provided herein, shall be assumed to have a Scheduled Distribution of zero) shall be the sum of (x) the total amount of
payments and collections in respect of such Pledged Security that, if paid as scheduled, will be available in the Collection Accounts at the end of the Due Period for payment on the Notes and of certain expenses of the Issuer and the Co-Issuer, plus
(y) any such amounts received in prior Due Periods that were not disbursed on a previous Distribution Date; provided, that such sum shall be computed without regard to any amounts excluded from the determination of compliance with the
Coverage Tests pursuant to Section 1.2(c). 
  
 (e) Subject to
Section 1.2(c), each Scheduled Distribution receivable with respect to a Pledged Security shall be assumed to be received on the applicable Due Date, and each such Scheduled Distribution shall be assumed to be immediately deposited in the
Interest Collection Account or the Principal Collection Account, as the case may be. All such funds shall be assumed to continue to earn interest until the date on which they are required to be available in the Collection Accounts for transfer to
the Payment Account and application, in accordance with the terms hereof, to payments of principal of or interest and the Commitment Fee on the Notes or other amounts payable pursuant to this Indenture. 
  
 (f) With respect to any Collateral Debt Security as to which any interest or
other payment thereon is subject to withholding tax of any Relevant Jurisdiction, each Distribution thereon shall, for purposes of the Coverage Tests, be deemed to be payable net of such withholding tax unless the issuer thereof or obligor thereon
is required to make additional payments sufficient on an after tax basis to cover any withholding tax imposed on payments to the Issuer with respect thereto. On any date of determination, the amount of any Scheduled Distribution due on any future
date shall be assumed to be made net of any such uncompensated withholding tax based upon withholding tax rates in effect on such date of determination. 
  
 (g) Any reference in Section 1.1(a) in the definition of “Base Collateral Management Fee,” “Commitment Fee,” “Commitment Fee
Rate”, “Subordinate Collateral Management Fee” to an amount calculated with respect to a period at a per annum rate or to interest determined at a fixed rate per annum shall be computed on the basis of a 360-day year of twelve 30-day
months. 
  
 (h) For the purpose of determining any payment to be
made on any Distribution Date pursuant to any applicable clause of Section 11.1(a), any Coverage Test referred to in such clause shall be calculated as of the relevant Distribution Date after giving effect to all payments to be made on such
Distribution Date prior to such payment in accordance with such clause of Section 11.1(a). In addition, for purposes of determining whether any Interest Coverage Test is satisfied pursuant to Section 11.1(a)(i), if a payment of principal
of any Class of Notes is to be made at the same level or at a more senior level in the Priority of Payments set forth in Section 11.1(a)(i), then the related Interest Coverage Ratio shall be calculated on a pro forma basis on the assumption
that (i) such payment of principal had been made on the immediately preceding Distribution Date and (ii) the Interest Distribution Amount for such Class of Notes for the current Distribution Date was correspondingly reduced to reflect the
lower Aggregate Outstanding Principal Amount of such Class of Notes. 
  

 53 

 (i) For the purpose of interpreting the definitions of Interest Proceeds and Principal Proceeds, all
payments of interest received or amounts collected that are attributable to interest received on the Collateral Debt Securities during the relevant Due Period shall be excluded from Interest Proceeds and included in Principal Proceeds to the extent
such payments or amounts constitute accrued interest purchased with Principal Proceeds. 
  
 Section 1.3. Rules of Construction 
  
 Unless the context otherwise clearly requires: 
  
 (a) the definitions of terms herein shall apply equally to the singular and plural forms of the terms defined; 
  
 (b) whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms; 
  
 (c) the words “include,” “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”; 
  
 (d) the word “will” shall be construed to have the same meaning and effect as the word “shall”; 
  
 (e) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or
modifications set forth herein); 
  
 (f) any reference herein to
any Person, or to any Person in a specified capacity, shall be construed to include such Person’s successors and assigns or such Person’s successors in such capacity, as the case may be; and 
  
 (g) all references in this instrument to designated “Sections,”
“clauses” and other subdivisions are to the designated Sections, clauses and other subdivisions of this instrument as originally executed, and the words “herein,” “hereof,” “hereunder” and other words of
similar import refer to this Indenture as a whole and not to any particular Section, clause or other subdivision. 
  
 ARTICLE II 
  
 THE NOTES 
  
 Section 2.1. Forms
Generally 
  
 (a) Notes and Combination Notes offered and sold
in reliance on Regulation S shall be issued in fully Registered Form without interest coupons substantially in the form of the note attached as Exhibit A-1 (each, a “Regulation S Global Note” or “Regulation S Combination Note”),
with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture and such legends as may be applicable thereto, which 

  

 54 

 
shall be deposited with the Trustee as custodian for DTC and registered in the name of DTC or a nominee of DTC, duly executed by the Co-Issuers (or, in the
case of Class E Notes, the Issuer) and authenticated by the Trustee or the Authenticating Agent as hereinafter provided. The aggregate principal amount of each Regulation S Global Note or Regulation S Combination Note may from time to time be
increased or decreased by adjustments made on the records of the Trustee, as custodian for DTC or its nominee, as the case may be. 
  
 (b) Notes and Combination Notes offered and sold in the United States to Qualified Purchasers that are Qualified Institutional Buyers pursuant to an
exemption from the registration requirements of the Securities Act shall be issued in fully Registered Form without interest coupons substantially in the forms of the note attached as Exhibits A-2 and A-3 (each, a “Restricted Global Note”
or “Restricted Global Combination Note”), with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture and such legends as may be applicable thereto, which shall be
deposited with the Trustee as custodian for DTC and registered in the name of DTC or a nominee of DTC, duly executed by the Co-Issuers (or, in the case of Class E Notes, the Issuer) and authenticated by the Trustee or the Authenticating Agent as
hereinafter provided. The aggregate principal amount of each Restricted Global Note and Restricted Global Combination Note may from time to time be increased or decreased by adjustments made on the records of the Trustee, as custodian for DTC or its
nominee, as the case may be. 
  
 (c) Global Notes which are
Regulation S Global Notes, Restricted Global Notes, Regulation S Combination Notes and Restricted Global Combination Notes may be exchanged under the limited circumstances set forth in Section 2.4 for Definitive Notes (in the form attached as
Exhibit B-1 or Exhibit B-2 hereto, as applicable) which are Regulation S Definitive Notes, Restricted Definitive Notes, Regulation S Definitive Combination Notes or Restricted Definitive Combination Notes, with such legends as may be applicable
thereto, which shall be duly executed by the Co-Issuers (or, in the case of Class E Notes, the Issuer) and authenticated by the Trustee or the Authenticating Agent as hereinafter provided. 
  
 (d) The Co-Issuers, in issuing the Notes and Combination Notes, may use
“CUSIP” or “private placement” numbers (if then generally in use), and, if so, the Trustee will indicate the “CUSIP” or “private placement” numbers of the Notes and Combination Notes in notices of redemption
and related materials as a convenience to Holders; provided, that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Notes and Combination Notes or as contained in any
notice of redemption and related materials. 
  
 Section 2.2.
Authorized Amount; Note Interest Rate; Stated Maturity; Denominations 
  
 (a) The aggregate principal amount of Notes which may be issued under this Indenture may not exceed U.S.$ 630,175,000 excluding Notes issued upon registration of, transfer of, or in exchange for, or in lieu of, other
Notes pursuant to Section 2.4, 2.5 or 8.5. 
  

 55 

 (b) The Notes shall be divided into eleven Classes of Notes having designations, original principal
amounts, original Note Interest Rates and Stated Maturities as follows: 
  

								
	 Designation

	  	Original Principal
Amount

	  	 Note
Interest Rate

	  	 Note
 Stated Maturity

	 Class A-1 Notes
	  	U.S.$	313,350,000	  	LIBOR plus 0.37%	  	May 5, 2036
	 Class A-2 Notes
	  	U.S.$	50,000,000	  	Up to LIBOR plus 1.00%	  	May 5, 2036
	 Class A-3 Notes
	  	U.S.$	20,000,000	  	LIBOR plus 0.55%	  	May 5, 2036
	 Class B-1 Notes
	  	U.S.$	81,450,000	  	LIBOR plus 0.80%	  	May 5, 2036
	 Class B-2 Notes
	  	U.S.$	7,000,000	  	5.91%	  	May 5, 2036
	 Class C-1 Notes
	  	U.S.$	45,000,000	  	LIBOR plus 1.45%	  	May 5, 2036
	 Class C-2 Notes
	  	U.S.$	20,000,000	  	See below	  	May 5, 2036
	 Class C-3 Notes
	  	U.S.$	35,000,000	  	See below	  	May 5, 2036
	 Class D-1 Notes
	  	U.S.$	21,000,000	  	LIBOR plus 2.60%	  	May 5, 2036
	 Class D-2 Notes
	  	U.S.$	13,000,000	  	7.71%	  	May 5, 2036
	 Class E Notes
	  	U.S.$	24,375,000	  	LIBOR plus 4.25%	  	May 5, 2036

  
 The Class C-2 Notes will bear interest
at a fixed rate per annum equal to 6.247% for the period from the Closing Date to the last day of the Interest Period ending immediately prior to the Distribution Date in February 2009, and a floating rate per annum equal to LIBOR plus 1.45%
thereafter. The Class C-3 Notes will bear interest at a fixed rate per annum equal to 6.293% for the period from the Closing Date to the last day of the Interest Period ending immediately prior to the Distribution Date in February 2011, and a
floating rate per annum equal to LIBOR plus 1.45% thereafter. 
  
 The Notes will be issuable in minimum denominations of U.S.$250,000 and in integral multiples of U.S.$1,000 in excess thereof (but in the case of the Class A-1 Notes, will evidence only the Aggregate Outstanding Principal Amount of
Borrowings under the Class A-1 Note Purchase Agreement). After issuance, (v) a Note may fail to be in compliance with the minimum denomination requirement stated above as a result of the repayment of principal thereof in accordance with
the Priority of Payments or in connection with any repayment of principal required by the Rating Agencies following a Ramp-Up Ratings Confirmation Failure or in the case of the Class A-1 Notes due to Borrowings with respect thereto,
(w) Class C Notes may fail to be in an amount which is an integral multiple of U.S.$1,000 due to the addition to the principal amount thereof of Class C Deferred Interest, (x) Class D Notes may fail to be in an amount which is an integral
multiple of U.S.$1,000 due to the addition to the principal amount thereof of Class D Deferred Interest and (y) Class E Notes may fail to be in an amount which is an integral multiple of U.S.$1,000 due to the addition to the principal amount
thereof of Class E Deferred Interest. 
  
 (c) Interest shall
accrue on the Aggregate Outstanding Principal Amount of each Class of Notes (determined as of the first day of each Interest Period and after giving effect to any redemption or other payment of principal occurring on such day) from the Closing Date
and will be payable quarterly in arrears on each Distribution Date. Commitment Fees shall accrue on the Aggregate Undrawn Amount of the Class A-1 Notes (determined as of the first day of each applicable Interest Period and after giving effect
to any payment of principal occurring on such day), for each day from and including the Closing Date to but excluding the Commitment Period Termination Date, at a rate per annum equal to the Commitment Fee Rate. Interest and the Commitment Fees
accruing for any Interest Period shall accrue for the period from and including 

  

 56 

 
the first day of such Interest Period to and including the last day of such Interest Period. Interest on the Notes and interest on Defaulted Interest in
respect thereof will be computed on the basis of a 360-day year and the actual number of days elapsed; provided that interest on the Class B-2 Notes, the Class D-2 Notes and, when bearing interest at a fixed rate, the Class C-2 Notes and the
Class C-3 Notes will be computed on the basis of a 360-day year of twelve 30-day months. 
  
 (d) The Notes shall be redeemable as provided in Sections 9 and 12. 
  
 (e) The Depositary for the Global Notes shall initially be DTC. 
  

(f) The Notes shall be numbered, lettered or otherwise distinguished in such manner as may be consistent herewith, determined by the Authorized
Officers of the Co-Issuers (or, in the case of Class E Notes, the Issuer) executing such Notes as evidenced by their execution of such Notes. 
  
 (g) Except for the portion of the Class A-1 Notes issued to evidence Borrowings after the Closing Date under the Class A-1 Note Purchase
Agreement, all of the Notes will be issued on the Closing Date. 
  
 (h) Under the terms hereof, the Co-Issuers and the Trustee will treat the persons in whose names the Notes are registered (including Notes represented by a Global Note) as the owners thereof for the purpose of receiving payments and for any
and all other purposes whatsoever; provided, that with respect to remedies, consents, determinations and other information and reports deliverable to a Holder, a beneficial owner of an interest in a Note or that provides certification of
ownership in the form of Exhibit L will be considered an owner of such Note to the extent of such investor’s beneficial interest therein. Payments in respect of the principal of, and interest on, a Global Note registered in the name of a
nominee of DTC will be payable by the Trustee to DTC or its nominee as the registered holder of such Note hereunder. Consequently, none of the Issuer, the Co-Issuer, the Trustee or any of their respective agents has or will have any responsibility
or liability for (i) any aspect of DTC’s records or any direct participant’s or indirect participant’s records relating to, or payments made on account of, beneficial ownership interests in any Global Note or for maintaining,
supervising or reviewing any of DTC’s records or any direct participant’s or indirect participant’s records relating to the beneficial ownership interests in any Global Note or (ii) any other matter relating to the actions and
practices of DTC or any of its direct participants or indirect participants. 
  
 Section 2.3. Execution, Authentication, Delivery and Dating 
  
 (a) The Notes and the Combination Notes shall be executed on behalf of the Co-Issuers by an Authorized Officer of each of the Co-Issuers (or, in the case
of Class E Notes, the Issuer). The signatures of such Authorized Officers on each of the Notes and Combination Notes may be manual or facsimile (including in counterparts). 
  
 (b) Notes and Combination Notes bearing the manual or facsimile signatures of individuals who were at any time the
Authorized Officers of the Issuer or the Co-Issuer shall bind such Person, notwithstanding the fact that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Notes and Combination Notes or
did not hold such offices at the date of issuance of such Notes and Combination Notes. 
  

 57 

 (c) At any time and from time to time after the execution and delivery of this Indenture, the Co-Issuers
may deliver Notes and Combination Notes, executed by the Co-Issuers (or, in the case of Class E Notes, the Issuer), to the Trustee or the Authenticating Agent for authentication, and the Trustee or the Authenticating Agent, upon Issuer Order, shall
authenticate and deliver such Notes and Combination Notes as provided in this Indenture and not otherwise. 
  
 (d) Each Note and Combination Note authenticated and delivered by the Trustee or the Authenticating Agent to or upon Issuer Order on the Closing Date
shall be dated as of the Closing Date. All other Notes and Combination Notes that are authenticated after the Closing Date for any other purpose under this Indenture shall be dated the date of their authentication. 
  
 (e) Notes and Combination Notes issued upon transfer, exchange or replacement
of other Notes and Combination Notes shall be issued in authorized denominations reflecting the original aggregate principal amount of the Notes and Combination Notes so transferred, exchanged or replaced, but shall represent only the current
Aggregate Outstanding Principal Amount of the Notes and Combination Notes so transferred, exchanged or replaced. In the event that any Note or Combination Note is divided into more than one Note or Combination Note in accordance with this
Section 2, the original principal amount of such Note or Combination Note and the current Aggregate Outstanding Principal Amount of such Note or Combination Note shall be proportionately divided among the Notes and Combination Notes delivered
in exchange therefor and shall be deemed to be the original aggregate principal amount of such subsequently issued Notes and Combination Notes. 
  
 (f) No Note or Combination Note shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose, unless there appears on
such Note or Combination Note or a certificate of authentication (the “Certificate of Authentication”), substantially in the form provided for herein, executed by the Trustee or by the Authenticating Agent by the manual signature of one of
their Authorized Officers, and such certificate upon any Note or Combination Note shall be conclusive evidence, and the only evidence, that such Note or Combination Note has been duly authenticated and delivered hereunder. 
  
 Section 2.4. Registration, Transfer and Exchange of Notes and
Combination Notes 
  
 (a) Registration of Notes and
Combination Notes. The Trustee is hereby appointed as the registrar of the Notes and Combination Notes (the “Note Registrar”). The Trustee is hereby appointed as a Transfer Agent with respect to the Notes and Combination Notes. The
Note Registrar shall keep a register (the “Note Register”) for the Notes, subject to such reasonable regulations as it may prescribe, the Note Registrar shall provide for the registration of and the registration of transfers of Notes and
Combination Notes. Upon any resignation or removal of the Note Registrar or Share Registrar, the Issuer shall promptly appoint a successor or, in the absence of such appointment, assume the duties of the Note Registrar. The Co-Issuers may not
terminate the appointment of the Note Registrar or any Transfer Agent without the consent of a Majority of the Controlling Class. 
  
 Subject to this Section 2.4, upon surrender for registration of transfer of any Notes or Combination Notes at the office or agency of either
Co-Issuer (or, in the case of Class E Notes, the Issuer) to be maintained as provided in Section 7.2, the Co-Issuers (or, in the case of 

  

 58 

 
Class E Notes, the Issuer) shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or
more new Notes or Combination Notes of any authorized denomination and of a like aggregate principal amount. 
  
 At the option of the Holder, Notes and Combination Notes may be exchanged for Notes and Combination Notes of like terms, in any authorized denominations
and of like aggregate principal amount, upon surrender of the Notes and Combination Notes to be exchanged at such office or agency. Whenever any Note or Combination Note is surrendered for exchange, the Co-Issuers (or, in the case of Class E Notes,
the Issuer) shall execute and the Trustee shall authenticate and deliver the Notes or Combination Notes that the Noteholder making the exchange is entitled to receive. 
  
 All Notes and Combination Notes issued and authenticated upon any registration of transfer or exchange of Notes and
Combination Notes shall be the valid obligations of the Co-Issuers (or, in the case of Class E Notes, the Issuer) evidencing the same debt, and entitled to the same benefits under this Indenture, as the Notes and Combination Notes surrendered upon
such registration of transfer or exchange. 
  
 Every Note or
Combination Note presented or surrendered for registration of transfer or exchange shall be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Co-Issuers and the Note Registrar duly executed, by the
Holder thereof or his attorney duly authorized in writing. 
  
 No
service charge shall be made to a Holder for any registration of transfer or exchange of Notes and Combination Notes, but the Trustee may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection
therewith and expenses of delivery (if any) not made by regular mail. 
  
 The Trustee shall keep a register (the “Class A-1 Register”) at the Corporate Trust Office in which the Trustee shall maintain a record of the Commitments applicable to each Holder of Class A-1 Notes and the Aggregate
Outstanding Principal Amount of advances from time to time outstanding in respect of such Class A-1 Notes. 
  
 (b) Transfers of Notes and Combination Notes. 
  
 (i) Subject to Section 2.4(b)(vii), exchanges or transfers of beneficial interests in a Global Note may be made only in accordance
with the rules and regulations of the Depositary (and, in the case of a Regulation S Global Note, Euroclear and Clearstream, Luxembourg) and the transfer restrictions contained in the legend on such Global Note and exchanges or transfers of
interests in a Global Note may be made only in accordance with the following: 
  
 (A) Subject to clauses (B) and (C) of this Section 2.4(b)(i), transfers of a Global Note shall be limited to transfers of such Global Note in whole, but not in part, to nominees of the Depositary or to
a successor of the Depositary or such successor’s nominee. 
  

 59 

 (B) The Trustee shall cause the exchange or transfer of any beneficial interest in a
Regulation S Global Note or a Regulation S Global Combination Note for a beneficial interest in a Restricted Global Note or a Restricted Global Combination Note upon provision to the Trustee and the Co-Issuers of a written certification
substantially in the form of Exhibit C-1 (a “Rule 144A Note Transfer Certificate”). 
  
 (C) The Trustee shall cause the exchange or transfer of any beneficial interest in a Restricted Global Note or a Restricted Global
Combination Note for a beneficial interest in a Regulation S Global Note or a Regulation S Global Combination Note upon provision to the Trustee and the Co-Issuers of a written certification substantially in the form of Exhibit C-2 (a
“Regulation S Note Transfer Certificate”). 
  
 (D) An owner of a beneficial interest in a Regulation S Global Note or Regulation S Global Combination Note may transfer such interest in the form of a beneficial interest in such Regulation S Global Note or Regulation S Global Combination
Note, as applicable, without the provision of written certification; provided, that (i) such transfer is not made to a U.S. Person or for the account or benefit of a U.S. Person, (ii) such transfer is effected through Euroclear or
Clearstream, Luxembourg in an offshore transaction as required by Regulation S and (iii) the transferee can make each of the representations set forth in Section 2.4(c). 
  
 (E) Subject to clause (F) of this Section 2.4(b)(i), an owner of a beneficial interest in a
Restricted Global Note or Restricted Global Combination Note may transfer such interest in the form of a beneficial interest in such Restricted Global Note or Restricted Global Combination Note without the provision of written certification;
provided, that the transferee can make each of the representations set forth in Section 2.4(c). 
  
 (F) Notwithstanding anything contained herein to the contrary, each initial purchaser of a Class E Note (or any interest in either of the
foregoing) will be required to represent, warrant and covenant that it will not transfer such Class E Note (or such interest therein) without providing the Issuer and the Trustee with a written certification, in the form of Exhibit R hereto, for the
benefit of the Issuer and the Trustee from the transferee thereof that such transferee is a Qualified Institutional Buyer, and that such transferee will obtain the same representation, warranty and covenant from any entity to whom it transfers such
Class E Note (or such interest therein). 
  
 (ii)
Subject to Section 2.4(b)(vi), exchanges or transfers of Definitive Notes may be made only in accordance with the transfer restrictions contained in the legend on such Definitive Note and the Trustee shall cause the transfer (a) of any
Restricted Definitive Note or Restricted Definitive Combination Note for a Regulation S Definitive Note or Regulation S Definitive Combination Note, upon provision to the Trustee, the Co-Issuers and the Note Registrar of a Regulation S Note Transfer
Certificate, and (b) of 

  

 60 

 
any Regulation S Definitive Note or Regulation S Definitive Combination Note for a Restricted Definitive Note or Restricted Definitive Combination Note, upon
provision to the Trustee, the Co-Issuers and the Note Registrar of a Rule 144A Note Transfer Certificate. 
  
 (iii) In the event Definitive Notes are issued pursuant to Section 2.4(b)(vii) in respect of Global Notes the Trustee shall cause the
transfer of any beneficial interest in a Global Note for a certificated Note in definitive, fully Registered Form without interest coupons substantially in the form of the note attached as Exhibit B-1 or Exhibit B-2, as the case may be, upon
provision to the Trustee and the Issuer of a Regulation S Note Transfer Certificate or a Rule 144A Note Transfer Certificate. 
  
 (iv) Subject to Section 2.4(b)(vi), the Trustee shall cause the transfer of a Definitive Note for a beneficial interest in a Global
Note upon provision to the Trustee and the Co-Issuers of a Regulation S Note Transfer Certificate or a Rule 144A Note Transfer Certificate. 
  
 (v) Upon acceptance for exchange or transfer of a beneficial interest in a Global Note for a Definitive Note, or upon acceptance for
exchange or transfer of a Definitive Note for a beneficial interest in a Global Note, each as provided herein, the Trustee shall instruct the Depositary to adjust the principal amount of such Global Note on its records to evidence the date of such
exchange or transfer and the change in the principal amount of such Global Note. 
  
 (vi) Subject to the restrictions on transfer and exchange set forth in this Section 2.4 and to any additional restrictions on
transfer or exchange specified in the Definitive Notes, the Holder of any Definitive Note may transfer or exchange the same in whole or in part (in a principal amount equal to the minimum authorized denomination or any larger authorized amount) by
surrendering such Definitive Note at the Corporate Trust Office or at the office of any Transfer Agent, together with (x) in the case of any transfer, an executed instrument of assignment and (y) in the case of any exchange, a written
request for exchange. Following a proper request for transfer or exchange, the Trustee shall (provided it has available in its possession an inventory of Definitive Notes), within five Business Days of such request if made at such Corporate Trust
Office, or within ten Business Days if made at the office of a Transfer Agent (other than the Trustee), authenticate and make available at such Corporate Trust Office or at the office of such Transfer Agent, as the case may be, to the transferee (in
the case of transfer) or Holder (in the case of exchange) or send by first class mail (at the risk of the transferee in the case of transfer or Holder in the case of exchange) to such address as the transferee or Holder, as applicable, may request,
a Definitive Note or Notes, as the case may require, for a like aggregate principal amount and in such authorized denomination or denominations as may be requested. The presentation for transfer or exchange of any Definitive Note shall not be valid
unless made at the Corporate Trust Office or at the office of a Transfer Agent by the registered Noteholder in person, or by a duly authorized attorney in fact. Beneficial interests in Global Notes which are Regulation S Global Notes or Restricted
Global Notes shall be exchangeable for Definitive Notes only under the limited circumstances described in Section 2.4(b)(vii). 
  

 61 

 (vii) Interests in a Global Note deposited with or on behalf of the Depositary pursuant
to Section 2.1 hereunder shall be transferred to the owners of such interests in the form of certificated Notes, in definitive, fully registered form without interest coupons in the form of a Restricted Definitive Note, Regulation S Definitive
Note, Restricted Definitive Combination Note or Regulation S Definitive Combination Note, as applicable, only if such transfer otherwise complies with this Section 2.4 (including clauses (b)(i) and (b)(iii)) and (1) the Depositary notifies
the Co-Issuers that it is unwilling or unable to continue as Depositary for the Notes, (2) the Depositary ceases to be a Clearing Agency and a successor Depositary is not appointed by the Issuer within 90 days of such notice, (3) if the
transferee of an interest in such Global Note is required by law to take physical delivery of securities in definitive form or (4) if the transferee is unable to pledge its interest in such Global Note. Regulation S Definitive Notes, Restricted
Definitive Notes and Restricted Definitive Notes are referred to collectively as “Definitive Notes,” and each is a “Definitive Note.” 
  
 (viii) If interests in any Global Note are to be transferred to the Beneficial Owners thereof in the form of Definitive Notes pursuant to
Section 2.4(b)(vii), such Global Note shall be surrendered by the Depositary, or its custodian on its behalf, to the Corporate Trust Office or to the Transfer Agent located in the Borough of Manhattan, the City of New York, and the Trustee
shall authenticate and deliver without charge, upon such transfer of interests in such Global Note, an equal aggregate principal amount of Definitive Notes of authorized denominations. The Definitive Notes transferred pursuant to this
Section 2.4 shall be executed, authenticated and delivered only in the denominations specified in Section 2.2(b) and registered in such names as the Depositary shall direct in writing. 
  
 (ix) For so long as one or more Global Notes are
Outstanding: 
  
 (A) the Trustee and its
directors, Officers, employees and agents may deal with the Depositary for all purposes (including the making of distributions on, and the giving of notices with respect to, the Global Notes); 
  
 (B) unless otherwise provided herein, the rights of
Beneficial Owners shall be exercised only through the Depositary and shall be limited to those established by law and agreements between such Beneficial Owners and the Depositary; 
  
 (C) for purposes of determining the identity of and principal amount of Notes beneficially owned by a
Beneficial Owner, the records of the Depositary shall be conclusive evidence of such identity and principal amount and the Trustee may conclusively rely on such records when acting hereunder and none of the Issuer, the Co-Issuer, the Trustee or any
of their respective agents shall have any responsibility or liability for (i) any aspect of DTC’s records or any direct participant’s or indirect participant’s records relating to, or payments made on account of, beneficial
ownership interests in any Global Note or for maintaining, supervising or reviewing any of DTC’s records or any direct participant’s or indirect participant’s records relating to the beneficial ownership interests in any 

  

 62 

 
Global Note or (ii) any other matter relating to the actions and practices of DTC or any of its direct or indirect participants; 
  
 (D) Payments in respect of the principal of, and interest
on, a Global Note registered in the name of a nominee of DTC will be payable by the Trustee to DTC or its nominee as the registered holder of such Note; 
  
 (E) the Depositary will make book entry transfers among the Depositary Participants of the Depositary and will receive and transmit
distributions of principal of and interest and the Commitment Fee on the Global Notes to such Depositary Participants; and 
  
 (F) the Depositary Participants of the Depositary shall have no rights under this Indenture under or with respect to any of the Global
Notes held on their behalf by the Depositary, and the Depositary may be treated by the Trustee and its agents, employees, Officers and directors as the absolute owner of the Global Notes for all purposes whatsoever. 
  
 (c) Representations. Each purchaser of a Definitive Note (or any
beneficial interest therein) will be required to acknowledge, represent to and agree with the Co-Issuers, as applicable, and the Placement Agent and each purchaser of a beneficial interest in a Global Note will be deemed to acknowledge, represent to
and agree with the Co-Issuers and the Placement Agent, as follows: 
  
 (1) No Governmental Approval. The purchaser understands that the Notes and Combination Notes have not been approved or disapproved by the SEC or any other governmental authority or agency of any
jurisdiction, nor has the SEC or any other governmental authority or agency passed upon the accuracy or adequacy of the Offering Circular. Any representation to the contrary is a criminal offense. 
  
 (2) Certification Upon Transfer. If required
by the other provisions of this Section 2.4, the purchaser will, prior to any sale, pledge or other transfer by it of any Note or Combination Note (or any interest therein), obtain from the transferee and deliver to the Co-Issuers and the Note
Registrar a duly executed Regulation S Note Transfer Certificate, Rule 144A Note Transfer Certificate, Regulation S Combination Note Transfer Certificate or Rule 144A Combination Note Transfer Certificate, as applicable, addressed to each of the
Trustee, the Co-Issuers, the Note Registrar and the Collateral Manager and such other certificates and other information as the Co-Issuers, the Collateral Manager, the Trustee or the Note Registrar may reasonably require to confirm that the proposed
transfer substantially complies with the transfer restrictions contained herein. Notwithstanding anything contained herein to the contrary, each initial purchaser of a Class E Note (or any interest in either of the foregoing) will be required to
represent, warrant and covenant that it will not transfer such Class E Note (or such interest therein) without providing the Issuer and the Trustee with a written certification, in the form of Exhibit R hereto, for the benefit of the Issuer and the
Trustee from the transferee thereof that such transferee is a Qualified Institutional Buyer, and that such transferee will obtain 

  

 63 

 
the same representation, warranty and covenant from any entity to whom it transfers such Class E Note (or such interest therein). 
  
 (3) Minimum Denominations; Form of Notes. The
purchaser agrees that no Note or Combination Note (or any interest therein) may be sold, pledged or otherwise transferred in a denomination of less than the applicable minimum denomination set forth herein. 
  
 (4) Securities Law Limitations on Resale. The
purchaser understands that the Notes and Combination Notes have not been registered under the Securities Act and, therefore, cannot be offered or sold in the United States or to U.S. Persons (as defined in Rule 902(k) promulgated under the
Securities Act) unless they are registered under the Securities Act or unless an exemption from registration is available. Accordingly, the certificates representing the Notes and Combination Notes will bear a legend stating that such Notes and
Combination Notes have not been registered under the Securities Act and setting forth certain of the restrictions on transfer of the Notes and Combination Notes, as the case may be, described herein. The purchaser understands that the Co-Issuers
have no obligation to register any of the Notes and Combination Notes under the Securities Act or to comply with the requirements for any exemption from the registration requirements of the Securities Act (other than to supply Rule 144A Information
pursuant to Section 7.14). 
  
 (5)
Qualified Institutional Buyer and Non-U.S. Person Status; Investment Intent. In the case of a purchaser who takes delivery of Notes in the form of a Restricted Global Note or Restricted Combination Note, it is a Qualified Institutional
Buyer. In the case of a purchaser who takes delivery of Notes in the form of a Regulation S Global Note or Regulation S Global Combination Note, it is not a U.S. Person (as defined in Regulation S) and it is purchasing such Notes or Combination
Notes (or interest therein) for its own account and not for the account or benefit of a U.S. Person and, in addition, in the case of a purchaser who takes delivery of Class E Notes in the form of a Regulation S Global Note or Regulation S Global
Combination Note, it is a Qualified Institutional Buyer. 
  
 (6) Purchaser Sophistication; Non-Reliance; Suitability; Access to Information. The purchaser (a) has such knowledge and experience in financial and business matters that the purchaser is capable of
evaluating the merits and risks (including for tax, legal, regulatory, accounting and other financial purposes) of its prospective investment in Notes and Combination Notes, (b) is financially able to bear such risk, (c) in making such
investment is not relying on the advice or recommendations of the Placement Agent, the Issuer, the Co-Issuer, the Collateral Manager or any of their respective affiliates (or any representative of any of the foregoing) and (d) has determined
that an investment in Notes or Combination Notes is suitable and appropriate for it. The initial purchaser has received, and has had an adequate opportunity to review the contents of, the Offering Circular. The purchaser has had access to such
financial and other information concerning the Co-Issuers, the Preferred Shares, the Combination Notes and the Notes as it has deemed necessary to make its own independent decision to purchase Notes or Combination Notes, including the opportunity,
at a reasonable time 

  

 64 

 
prior to its purchase of Notes or Combination Notes, to ask questions and receive answers concerning the Co-Issuers and the terms and conditions of the
offering of the Notes or Combination Notes. 
  
 (7) Certain Resale Limitations; Rule 144A. No Note or Combination Note (or any interest therein) may be offered, sold, pledged or otherwise transferred to (i) a transferee acquiring a Restricted Note or a Restricted
Combination Note except (a) to a transferee that the seller reasonably believes is a Qualified Institutional Buyer, purchasing for its own account, to whom notice is given that the resale, pledge or other transfer is being made in reliance on
the exemption from the registration requirements of the Securities Act provided by Rule 144A, (b) to a Qualified Purchaser, (c) to a transferee that is not a Flow-Through Investment Vehicle (other than a Qualifying Investment Vehicle),
(d) if such transfer is made in compliance with the certification and other requirements set forth in this Indenture and (e) if such transfer is made in accordance with any applicable securities laws of any state of the United States and
any other relevant jurisdiction or (ii) a transferee acquiring an interest in a Regulation S Note except (a) to a transferee that is acquiring such interest in an offshore transaction (within the meaning of Regulation S) in accordance with
Rule 904 of Regulation S, (b) to a transferee that is not a U.S. Person, (c) in the case of transferee of a Class E Note, to a transferee that is a Qualified Institutional Buyer, (d) to a transferee that is not a Flow-Through
Investment Vehicle (other than a Qualifying Investment Vehicle), (e) if such transfer is made in compliance with the other requirements set forth in this Indenture and (f) if such transfer is made in accordance with any applicable
securities laws of any state of the United States and any other relevant jurisdiction. 
  
 (8) Limited Liquidity. The purchaser understands that there is no market for Notes and that no assurance can be given as to
the liquidity of any trading market for Notes and that it is unlikely that a trading market for any of the Notes or Combination Notes will develop. The purchaser further understands that, although the Placement Agent may from time to time make a
market in Notes or Combination Notes, the Placement Agent is under no obligation to do so and, following the commencement of any market-making, may discontinue such market-making at any time. Accordingly, the purchaser must be prepared to hold Notes
or Combination Notes for an indefinite period of time or until their maturity. 
  
 (9) ERISA. (a) In the case of each purchaser or transferee of a Class A Note, Class B Note, Class C Note, Class D
Note or Combination Note (or an interest in any of the foregoing), either (i) it is not (and for so long as it holds such Note or Combination Note will not be), and is not acting on behalf of (and for so long as it holds such Note or
Combination Note will not be acting on behalf of), an “employee benefit plan” as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA, a “plan” described in Section 4975(e)(1) of the Code, an entity
which is deemed to hold plan assets of any of the foregoing by reason of investment by an employee benefit plan or plan in such entity or a governmental plan which is subject to any applicable law that is substantially similar to ERISA or
Section 4975 of the Code, or (ii) its purchase, holding and disposition of the Note or Combination Note will not result in a non-exempt prohibited transaction under 

  

 65 

 
Section 406 of ERISA or Section 4975 of the Code (or, in the case of a governmental plan, any substantially similar applicable law). 
  
 (b) In the case of each purchaser or transferee of a Class E
Note (or an interest therein), it is not (and for so long as it holds such Note will not be), and is not acting on behalf of (and for so long as it holds such Note will not be acting on behalf of), an “employee benefit plan” as defined in
Section 3(3) of ERISA (whether or not subject to Title I of ERISA, and including, without limitation, foreign and governmental plans), a “plan” described in Section 4975(e)(1) of the Code or an entity which is deemed to hold plan
assets of any of the foregoing by reason of investment by an employee benefit plan or plan in such entity (including, without limitation, certain insurance company general accounts) (each of the foregoing, a “Benefit Plan Investor). 

 
 (10) 1940 Act. In the case of each
purchaser of a Note, Combination Note or Preferred Shares, (A) if the Purchaser is purchasing a Class E Note, the Purchaser is a “qualified institutional buyer” as defined in Rule 144A under the Securities Act; and (B) if the
purchaser is a U.S. Person, the purchaser (i) is both a “qualified purchaser” for purposes of Section 3(c)(7) of the 1940 Act and a “qualified institutional buyer” as defined in Rule 144A under the Securities Act;
(ii) is acquiring the Offered Securities as principal solely for its own account for investment and not with a view to the resale, distribution or other disposition thereof in violation of the Securities Act; (iii) has made investments
prior to the date hereof and was not formed solely for the purpose of investing in the Offered Securities, or, if it has not made investments prior to the date hereof and was formed solely for the purpose of investing in the Offered Securities, each
beneficial owner of the purchaser is a “qualified purchaser” for purposes of Section 3(c)(7) of the 1940 Act; (iv) is not a (A) partnership, (B) common trust fund, or (C) special trust, pension, profit sharing or
other retirement trust fund or plan in which the partners, beneficiaries or participants may designate the particular investments to be made; (v) agrees that it shall not hold any Offered Securities for the benefit of any other person, that it
shall at all times be the sole beneficial owner thereof for purposes of the 1940 Act and all other purposes and that it shall not sell participation interests in the Offered Securities or enter into any other arrangement pursuant to which any other
person shall be entitled to a beneficial interest in the distributions on the Offered Securities; and (vii) agrees that all Offered Securities (together with any other securities of the Co-Issuers) purchased and held directly or indirectly by
it constitute in the aggregate an investment of no more than 40% of its assets or capital. 
  
 If the purchaser is a U.S. Person, the purchaser represents that, unless the purchaser is a Qualifying Investment Vehicle (as defined
below), (a) if the purchaser would be an investment company but for the exception in Section 3(c)(1) or Section 3(c)(7) of the 1940 Act, the amount of the purchaser’s investment in the Notes, Combination Notes or Preferred Shares
does not exceed 40% of the total assets (determined on a consolidated basis with its subsidiaries) of the purchaser; (b) no person owning any equity or similar interest in the purchaser has the ability to control any investment decision of the
purchaser or to determine, on an investment-by-investment basis, the amount of such person’s contribution to any investment made by the purchaser; (c) the purchaser was not organized or reorganized for the specific purpose of acquiring a

  

 66 

 
Note or Combination Note; and (d) no additional capital or similar contributions were specifically solicited from any person owning an equity or similar
interest in the purchaser for the purpose of enabling the purchaser to purchase Notes or Combination Notes (any such transferee in (a), (b), (c) or (d) above being herein referred to as a “Flow-Through Investment Vehicle”). For
this purpose, a “Qualifying Investment Vehicle” is an entity (i) as to which all of the beneficial owners of any securities issued by such entity have made, and as to which (in accordance with the document pursuant to which such
entity was organized or the agreement or other document governing such securities) each such beneficial owner must require any transferee of any such security to make, to the Issuer or the Co-Issuers, as the case may be, and the Note Registrar each
of the representations set forth herein required to be made upon transfer of any of the relevant Class of Notes or Combination Notes (with modifications to such representations satisfactory to the Collateral Manager and the Issuer to reflect the
indirect nature of the interests of such beneficial owners in such Notes or Combination Notes). If the purchaser is a Flow-Through Investment Vehicle, the purchaser represents and warrants that either (a) none of the beneficial owners of its
securities are U.S. Persons or (b) some or all of the beneficial owners of its securities are U.S. Persons and each such beneficial owner has certified to the purchaser that it is a Qualified Purchaser. If the purchaser is a Flow-Through
Investment Vehicle, the purchaser also represents and warrants that it has only one class of securities outstanding (other than any nominal share capital the distributions in respect of which are not correlated to or dependent upon distributions on,
or the performance of, the Notes, Combination Notes or Preferred Shares). 
  
 (11) Certain Transfers Void. In the case of a purchaser who takes delivery of Notes in the form of a Restricted Definitive Note or an interest in a Restricted Global Note, Regulation S Global Note,
Restricted Global Combination Note or Regulation S Global Combination Note, the purchaser agrees that (a) any sale, pledge or other transfer of a Note (or any interest therein) made in violation of the transfer restrictions contained in this
Indenture, or made based upon any false or inaccurate representation made by the purchaser or a transferee to the Issuer, the Co-Issuer, the Trustee or the Note Registrar, will be void and of no force or effect and (b) none of the Issuer, the
Co-Issuer, the Trustee or the Note Registrar has any obligation to recognize any sale, pledge or other transfer of a Note or Combination Note (or any interest therein) made in violation of any such transfer restriction or made based upon any such
false or inaccurate representation. 
  
 (12)
Cayman Islands. The purchaser is not a member of the public in the Cayman Islands. 
  
 (13) Reliance on Representations, etc. The purchaser acknowledges that the Co-Issuers, the Placement Agent, the Trustee, the
Note Registrar and others will rely upon the truth and accuracy of the foregoing acknowledgments, representations and agreements and agrees that, if any of the acknowledgments, representations or warranties made or deemed to have been made by it in
connection with its purchase of Notes or Combination Notes are no longer accurate, the purchaser will promptly notify the Co-Issuers and the Placement Agent. 
  

 67 

 (14) Legend for Notes and Combination Notes. The purchaser understands and
agrees that a legend in substantially each of the following forms will be placed on each certificate representing any Notes or Combination Notes: 
  
 LEGEND FOR CLASS A NOTES, CLASS B NOTES, CLASS C NOTES 
 AND CLASS D NOTES 
  
 NOTES LEGEND 
  
 THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION, AND MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO A “QUALIFIED PURCHASER” (AS
DEFINED FOR PURPOSES OF SECTION 3(C)(7) OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE “1940 ACT”)), THAT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT), IN RELIANCE ON THE
EXEMPTION FROM SECURITIES ACT REGISTRATION PROVIDED BY SUCH RULE OR (B) TO A TRANSFEREE THAT IS NOT A “U.S. PERSON” (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) IN AN OFFSHORE TRANSACTION (WITHIN THE MEANING OF REGULATION S
UNDER THE SECURITIES ACT) IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, AND IN EACH CASE IN COMPLIANCE WITH THE CERTIFICATION AND OTHER REQUIREMENTS SPECIFIED IN THE INDENTURE REFERRED TO HEREIN AND IN COMPLIANCE WITH ANY
APPLICABLE SECURITIES LAW OF ANY APPLICABLE JURISDICTION. 
  
 EACH PURCHASER OF
THIS NOTE OR ANY INTEREST HEREIN WILL BE DEEMED TO HAVE MADE, OR WILL BE REQUIRED TO MAKE, THE REPRESENTATIONS AND AGREEMENTS SET FORTH IN SECTION 2.4 OF THE INDENTURE. TRANSFERS OF THIS NOTE OR ANY INTEREST HEREIN MUST GENERALLY BE ACCOMPANIED BY
APPROPRIATE TAX AND ERISA (AS DEFINED BELOW) TRANSFER DOCUMENTATION AND ARE SUBJECT TO RESTRICTIONS AS PROVIDED IN THE INDENTURE. ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE
TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE CO-ISSUER, THE TRUSTEE OR ANY INTERMEDIARY. IF AT ANY TIME THE ISSUER OR THE CO-ISSUER DETERMINES OR IS NOTIFIED THAT THE HOLDER OF THIS
NOTE OR OF ANY BENEFICIAL INTEREST HEREIN WAS IN BREACH, AT THE TIME GIVEN, OF ANY OF THE REPRESENTATIONS SET FORTH IN THE INDENTURE, THE TRUSTEE MAY CONSIDER THE ACQUISITION OF THIS NOTE OR OF SUCH INTEREST HEREIN VOID AND REQUIRE THAT THIS NOTE OR
SUCH INTEREST HEREIN BE TRANSFERRED TO A PERSON DESIGNATED BY THE ISSUER AND THE CO-ISSUER, IF APPLICABLE. 
  
 NEITHER OF THE CO-ISSUERS HAVE BEEN REGISTERED UNDER THE U.S. INVESTMENT COMPANY ACT OF 1940. NO TRANSFER OF THIS NOTE OR ANY INTEREST HEREIN MAY BE MADE (AND NEITHER THE TRUSTEE NOR THE NOTE REGISTRAR WILL RECOGNIZE
ANY SUCH TRANSFER) IF (A) SUCH TRANSFER WOULD BE MADE TO A TRANSFEREE WHO IS A U.S. PERSON (WITHIN THE MEANING OF REGULATION S) THAT IS NOT BOTH A “QUALIFIED PURCHASER” (AS 

  

 68 

 
DEFINED FOR PURPOSES OF SECTION 3(C)(7) OF THE 1940 ACT) AND A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT),
(B) SUCH TRANSFER WOULD HAVE THE EFFECT OF REQUIRING EITHER OF THE CO-ISSUERS OR THE COLLATERAL TO REGISTER AS AN INVESTMENT COMPANY UNDER THE 1940 ACT, (C) SUCH TRANSFER WOULD BE MADE TO A TRANSFEREE THAT IS A FLOW-THROUGH INVESTMENT
VEHICLE OTHER THAN A QUALIFYING INVESTMENT VEHICLE (EACH AS DEFINED IN THE INDENTURE), OR (D) SUCH TRANSFER WOULD BE MADE TO A PERSON WHO IS OTHERWISE UNABLE TO MAKE THE CERTIFICATIONS AND REPRESENTATIONS REQUIRED BY THE INDENTURE. ACCORDINGLY,
ANY INVESTOR IN THIS NOTE MUST BE PREPARED TO BEAR THE ECONOMIC RISK OF SUCH INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. 
  
 EACH PURCHASER AND TRANSFEREE OF A CLASS A NOTE, CLASS B NOTE, CLASS C NOTE OR CLASS D NOTE (OR AN INTEREST IN ANY OF THE FOREGOING) WILL BE DEEMED TO REPRESENT AND
WARRANT EITHER THAT (A) IT IS NOT (AND FOR SO LONG AS IT HOLDS SUCH NOTE WILL NOT BE), AND IS NOT ACTING ON BEHALF OF (AND FOR SO LONG AS IT HOLDS SUCH NOTE WILL NOT BE ACTING ON BEHALF OF), AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN
SECTION 3(3) OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), WHICH IS SUBJECT TO TITLE I OF ERISA, A “PLAN” DESCRIBED IN SECTION 4975(e)(1) OF THE U.S. INTERNAL REVENUE CODE OF 1986, AS AMENDED
(THE “CODE”), AN ENTITY WHICH IS DEEMED TO HOLD PLAN ASSETS OF ANY OF THE FOREGOING BY REASON OF INVESTMENT BY AN EMPLOYEE BENEFIT PLAN OR PLAN IN SUCH ENTITY OR A GOVERNMENTAL PLAN WHICH IS SUBJECT TO ANY APPLICABLE LAW THAT IS
SUBSTANTIALLY SIMILAR TO ERISA OR SECTION 4975 OF THE CODE, OR (B) ITS PURCHASE, OWNERSHIP AND DISPOSITION OF SUCH NOTE WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE (OR, IN THE
CASE OF A GOVERNMENTAL PLAN, ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW). 
  
 IF,
NOTWITHSTANDING THE RESTRICTIONS ON TRANSFER CONTAINED HEREIN, EITHER OF THE CO-ISSUERS DETERMINES THAT ANY BENEFICIAL OWNER OF THIS NOTE (OR ANY INTEREST HEREIN) (A) IS A U.S. PERSON AND (B) WAS NOT BOTH A QUALIFIED PURCHASER AND A
QUALIFIED INSTITUTIONAL BUYER AT THE TIME OF ITS ACQUISITION HEREOF (OR OF ANY INTEREST HEREIN), THEN EITHER OF THE CO-ISSUERS MAY REQUIRE, BY NOTICE TO SUCH HOLDER, THAT SUCH HOLDER SELL ALL OF ITS RIGHT, TITLE AND INTEREST HEREIN TO A PERSON THAT
IS BOTH A QUALIFIED PURCHASER AND A QUALIFIED INSTITUTIONAL BUYER, WITH SUCH SALE TO BE EFFECTED WITHIN 30 DAYS AFTER NOTICE OF SUCH SALE REQUIREMENT IS GIVEN. IF SUCH BENEFICIAL OWNER FAILS TO EFFECT THE TRANSFER REQUIRED WITHIN SUCH 30-DAY PERIOD,
(I) UPON DIRECTION FROM THE ISSUER, THE TRUSTEE (ON BEHALF OF AND AT THE EXPENSE OF THE ISSUER) SHALL CAUSE SUCH BENEFICIAL OWNER’S INTEREST HEREIN TO BE TRANSFERRED IN A COMMERCIALLY REASONABLE SALE (CONDUCTED BY THE TRUSTEE IN ACCORDANCE
WITH SECTION 9-610(B) OF THE UNIFORM COMMERCIAL CODE AS IN EFFECT IN THE STATE OF NEW YORK) TO A PERSON THAT CERTIFIES TO THE TRUSTEE, THE CO-ISSUERS AND THE COLLATERAL MANAGER, IN CONNECTION WITH SUCH TRANSFER, THAT SUCH PERSON IS BOTH A QUALIFIED
PURCHASER AND A QUALIFIED INSTITUTIONAL 

  

 69 

 
BUYER AND (II) PENDING SUCH TRANSFER, NO FURTHER PAYMENTS WILL BE MADE IN RESPECT OF THIS NOTE. 
  
 ANY TRANSFEREE OF THIS NOTE (OR ANY INTEREST HEREIN), AND EACH ACCOUNT FOR WHICH IT IS PURCHASING THIS NOTE (OR ANY INTEREST HEREIN), IS
REQUIRED TO HOLD AND TRANSFER AT LEAST THE MINIMUM DENOMINATIONS REQUIRED BY THE INDENTURE. EACH TRANSFEREE IS REQUIRED TO PROVIDE WRITTEN NOTICE OF THE TRANSFER RESTRICTIONS TO ANY SUBSEQUENT TRANSFEREES. 
  
 UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY
(“DTC”) TO THE NOTE REGISTRAR FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE 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 MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 LEGEND
FOR CLASS E NOTES 
  
 THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION, AND MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO A
“QUALIFIED PURCHASER” (AS DEFINED FOR PURPOSES OF SECTION 3(C)(7) OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE “1940 ACT”)), THAT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT), IN RELIANCE ON THE EXEMPTION FROM SECURITIES ACT REGISTRATION PROVIDED BY SUCH RULE OR (B) TO A TRANSFEREE THAT IS A QUALIFIED INSTITUTIONAL BUYER THAT IS NOT A “U.S. PERSON” (AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT) IN AN OFFSHORE TRANSACTION (WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT) IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, AND IN EACH CASE IN COMPLIANCE WITH THE CERTIFICATION AND OTHER
REQUIREMENTS SPECIFIED IN THE INDENTURE REFERRED TO HEREIN AND IN COMPLIANCE WITH ANY APPLICABLE SECURITIES LAW OF ANY APPLICABLE JURISDICTION. 
  
 EACH PURCHASER OF THIS NOTE OR ANY INTEREST HEREIN WILL BE DEEMED TO HAVE MADE, OR WILL BE REQUIRED TO MAKE, THE REPRESENTATIONS AND AGREEMENTS SET FORTH IN SECTION 2.4
OF THE INDENTURE. TRANSFERS OF THIS NOTE OR ANY INTEREST HEREIN MUST GENERALLY BE ACCOMPANIED BY APPROPRIATE TAX AND ERISA (AS DEFINED BELOW) TRANSFER DOCUMENTATION AND ARE SUBJECT TO RESTRICTIONS AS PROVIDED IN THE INDENTURE. IN ADDITION, EACH
INITIAL PURCHASER OF THIS NOTE (OR ANY INTEREST HEREIN) REPRESENTS, WARRANTS AND COVENANTS THAT IT WILL NOT TRANSFER THIS NOTE OR ANY INTEREST HEREIN WITHOUT PROVIDING THE ISSUER AND THE TRUSTEE WITH A WRITTEN CERTIFICATION FOR THE BENEFIT 

  

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OF THE ISSUER AND THE TRUSTEE FROM THE TRANSFEREE HEREOF THAT SUCH TRANSFEREE IS A QUALIFIED INSTITUTIONAL BUYER, AND THAT SUCH TRANSFEREE WILL OBTAIN THE
SAME REPRESENTATION, WARRANTY AND COVENANT FROM ANY ENTITY TO WHOM IT TRANSFERS THIS NOTE OR ANY INTEREST HEREIN. ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY
RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE CO-ISSUER, THE TRUSTEE OR ANY INTERMEDIARY. IF AT ANY TIME THE ISSUER OR THE CO-ISSUER DETERMINES OR IS NOTIFIED THAT THE HOLDER OF THIS NOTE OR OF ANY
BENEFICIAL INTEREST HEREIN WAS IN BREACH, AT THE TIME GIVEN, OF ANY OF THE REPRESENTATIONS SET FORTH IN THE INDENTURE, THE TRUSTEE MAY CONSIDER THE ACQUISITION OF THIS NOTE OR OF SUCH INTEREST VOID AND REQUIRE THAT THIS NOTE OR SUCH INTEREST HEREIN
BE TRANSFERRED TO A PERSON DESIGNATED BY THE ISSUER AND THE CO-ISSUER, IF APPLICABLE. 
  
 THE ISSUER HAS NOT BEEN REGISTERED UNDER THE U.S. INVESTMENT COMPANY ACT OF 1940. NO TRANSFER OF THIS NOTE OR ANY INTEREST HEREIN MAY BE MADE (AND NEITHER THE TRUSTEE NOR THE NOTE REGISTRAR WILL RECOGNIZE ANY SUCH TRANSFER) IF (A) SUCH
TRANSFER WOULD BE MADE TO A TRANSFEREE WHO IS A U.S. PERSON (WITHIN THE MEANING OF REGULATION S) THAT IS NOT BOTH A “QUALIFIED PURCHASER” (AS DEFINED FOR PURPOSES OF SECTION 3(C)(7) OF THE 1940 ACT) AND A “QUALIFIED INSTITUTIONAL
BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT), (B) SUCH TRANSFER WOULD HAVE THE EFFECT OF REQUIRING EITHER OF THE CO-ISSUERS OR THE COLLATERAL TO REGISTER AS AN INVESTMENT COMPANY UNDER THE 1940 ACT, (C) SUCH TRANSFER
WOULD BE MADE TO A TRANSFEREE THAT IS A FLOW-THROUGH INVESTMENT VEHICLE OTHER THAN A QUALIFYING INVESTMENT VEHICLE (EACH AS DEFINED IN THE INDENTURE), OR (D) SUCH TRANSFER WOULD BE MADE TO A PERSON WHO IS OTHERWISE UNABLE TO MAKE THE
CERTIFICATIONS AND REPRESENTATIONS REQUIRED BY THE INDENTURE. ACCORDINGLY, ANY INVESTOR IN THIS NOTE MUST BE PREPARED TO BEAR THE ECONOMIC RISK OF SUCH INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. 
  
 EACH PURCHASER AND TRANSFEREE OF A CLASS E NOTE (OR AN INTEREST THEREIN) WILL BE DEEMED TO
REPRESENT AND WARRANT THAT IT IS NOT (AND FOR SO LONG AS IT HOLDS SUCH NOTE WILL NOT BE), AND IS NOT ACTING ON BEHALF OF (AND FOR SO LONG AS IT HOLDS SUCH NOTE WILL NOT BE ACTING ON BEHALF OF), (A) AN “EMPLOYEE BENEFIT PLAN” AS
DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) (WHETHER OR NOT SUBJECT TO TITLE I OF ERISA, AND INCLUDING, WITHOUT LIMITATION, FOREIGN AND GOVERNMENTAL PLANS), A “PLAN”
DESCRIBED IN SECTION 4975(e)(1) OF THE U.S. INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) OR AN ENTITY WHICH IS DEEMED TO HOLD PLAN ASSETS OF ANY OF THE FOREGOING BY REASON OF INVESTMENT BY AN EMPLOYEE BENEFIT PLAN OR PLAN IN SUCH
ENTITY (INCLUDING, WITHOUT LIMITATION, CERTAIN INSURANCE COMPANY GENERAL ACCOUNTS). 
  
 IF, NOTWITHSTANDING THE RESTRICTIONS ON TRANSFER CONTAINED HEREIN, THE ISSUER DETERMINES THAT ANY BENEFICIAL OWNER OF THIS NOTE (OR ANY INTEREST HEREIN) WAS NOT A QUALIFIED INSTITUTIONAL BUYER (OR IN THE 

  

 71 

 
CASE OF A U.S. PERSON, WAS NOT BOTH A QUALIFIED PURCHASER AND A QUALIFIED INSTITUTIONAL BUYER) AT THE TIME OF ITS ACQUISITION HEREOF, THEN THE ISSUER MAY
REQUIRE, BY NOTICE TO SUCH HOLDER, THAT SUCH HOLDER SELL ALL OF ITS RIGHT, TITLE AND INTEREST HEREIN (OR INTEREST HEREIN) TO A PERSON THAT IS A QUALIFIED INSTITUTIONAL BUYER (OR IN THE CASE OF A U.S. PERSON, A PERSON THAT IS BOTH A QUALIFIED
PURCHASER AND A QUALIFIED INSTITUTIONAL BUYER) WITH SUCH SALE TO BE EFFECTED WITHIN 30 DAYS AFTER NOTICE OF SUCH SALE REQUIREMENT IS GIVEN. IF SUCH BENEFICIAL OWNER FAILS TO EFFECT THE TRANSFER REQUIRED WITHIN SUCH 30-DAY PERIOD, (I) UPON
DIRECTION FROM THE ISSUER, THE TRUSTEE (ON BEHALF OF AND AT THE EXPENSE OF THE ISSUER) SHALL CAUSE SUCH BENEFICIAL OWNER’S INTEREST HEREIN TO BE TRANSFERRED IN A COMMERCIALLY REASONABLE SALE (CONDUCTED BY THE TRUSTEE IN ACCORDANCE WITH SECTION
9-610(B) OF THE UNIFORM COMMERCIAL CODE AS IN EFFECT IN THE STATE OF NEW YORK) TO A PERSON THAT CERTIFIES TO THE TRUSTEE, THE CO-ISSUERS AND THE COLLATERAL MANAGER, IN CONNECTION WITH SUCH TRANSFER, THAT SUCH PERSON IS A QUALIFIED INSTITUTIONAL
BUYER (OR IN THE CASE OF A U.S. PERSON, BOTH A QUALIFIED PURCHASER AND A QUALIFIED INSTITUTIONAL BUYER) AND (II) PENDING SUCH TRANSFER, NO FURTHER PAYMENTS WILL BE MADE IN RESPECT OF SUCH NOTE HELD BY SUCH BENEFICIAL OWNER. 
  
 ANY TRANSFEREE OF THIS NOTE (OR ANY INTEREST HEREIN), AND EACH ACCOUNT FOR WHICH IT IS
PURCHASING THIS NOTE (OR ANY INTEREST HEREIN), IS REQUIRED TO HOLD AND TRANSFER AT LEAST THE MINIMUM DENOMINATIONS REQUIRED BY THE INDENTURE. EACH TRANSFEREE IS REQUIRED TO PROVIDE WRITTEN NOTICE OF THE TRANSFER RESTRICTIONS TO ANY SUBSEQUENT
TRANSFEREES. 
  
 UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY (“DTC”) TO THE NOTE REGISTRAR FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE 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 MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 LEGEND FOR COMBINATION NOTES 
  
 THIS
COMBINATION NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION, AND MAY BE REOFFERED, RESOLD,
PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO A “QUALIFIED PURCHASER” (AS DEFINED FOR PURPOSES OF SECTION 3(C)(7) OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE “1940 ACT”)), THAT IS A “QUALIFIED INSTITUTIONAL
BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT), IN RELIANCE ON THE EXEMPTION FROM SECURITIES ACT REGISTRATION PROVIDED BY SUCH RULE OR 

  

 72 

 
(B) TO A TRANSFEREE THAT IS NOT A “U.S. PERSON” (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) IN AN OFFSHORE TRANSACTION (WITHIN THE
MEANING OF REGULATION S UNDER THE SECURITIES ACT) IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, AND IN EACH CASE IN COMPLIANCE WITH THE CERTIFICATION AND OTHER REQUIREMENTS SPECIFIED IN THE INDENTURE REFERRED TO HEREIN AND IN
COMPLIANCE WITH ANY APPLICABLE SECURITIES LAW OF ANY APPLICABLE JURISDICTION. 
  
 EACH PURCHASER OF THIS COMBINATION NOTE OR ANY INTEREST HEREIN WILL BE DEEMED TO HAVE MADE, OR WILL BE REQUIRED TO MAKE, THE REPRESENTATIONS AND AGREEMENTS SET FORTH IN SECTION 2.4 OF THE INDENTURE. TRANSFERS OF THIS COMBINATION NOTE OR ANY
INTEREST HEREIN MUST GENERALLY BE ACCOMPANIED BY APPROPRIATE TAX AND ERISA (AS DEFINED BELOW) TRANSFER DOCUMENTATION AND ARE SUBJECT TO RESTRICTIONS AS PROVIDED IN THE INDENTURE. ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND
EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE CO-ISSUER, THE TRUSTEE OR ANY INTERMEDIARY. IF AT ANY TIME THE ISSUER OR
THE CO-ISSUER DETERMINES OR IS NOTIFIED THAT THE HOLDER OF THIS COMBINATION NOTE OR OF ANY BENEFICIAL INTEREST HEREIN WAS IN BREACH, AT THE TIME GIVEN, OF ANY OF THE REPRESENTATIONS SET FORTH IN THE INDENTURE, THE TRUSTEE MAY CONSIDER THE
ACQUISITION OF THIS COMBINATION NOTE OR OF SUCH INTEREST HEREIN VOID AND REQUIRE THAT THIS COMBINATION NOTE OR SUCH INTEREST HEREIN BE TRANSFERRED TO A PERSON DESIGNATED BY THE ISSUER AND THE CO-ISSUER, IF APPLICABLE. 
  
 NEITHER OF THE CO-ISSUERS HAS BEEN REGISTERED UNDER THE U.S. INVESTMENT COMPANY ACT OF 1940.
NO TRANSFER OF THIS COMBINATION NOTE OR ANY INTEREST HEREIN MAY BE MADE (AND NEITHER THE TRUSTEE NOR THE NOTE REGISTRAR WILL RECOGNIZE ANY SUCH TRANSFER) IF (A) SUCH TRANSFER WOULD BE MADE TO A TRANSFEREE WHO IS A U.S. PERSON (WITHIN THE
MEANING OF REGULATION S) THAT IS NOT BOTH A “QUALIFIED PURCHASER” (AS DEFINED FOR PURPOSES OF SECTION 3(C)(7) OF THE 1940 ACT) AND A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT),
(B) SUCH TRANSFER WOULD HAVE THE EFFECT OF REQUIRING EITHER OF THE CO-ISSUERS OR THE COLLATERAL TO REGISTER AS AN INVESTMENT COMPANY UNDER THE 1940 ACT, (C) SUCH TRANSFER WOULD BE MADE TO A TRANSFEREE THAT IS A FLOW-THROUGH INVESTMENT
VEHICLE OTHER THAN A QUALIFYING INVESTMENT VEHICLE (EACH AS DEFINED IN THE INDENTURE), OR (D) SUCH TRANSFER WOULD BE MADE TO A PERSON WHO IS OTHERWISE UNABLE TO MAKE THE CERTIFICATIONS AND REPRESENTATIONS REQUIRED BY THE INDENTURE. ACCORDINGLY,
ANY INVESTOR IN THIS COMBINATION NOTE MUST BE PREPARED TO BEAR THE ECONOMIC RISK OF SUCH INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. 
  
 EACH PURCHASER AND TRANSFEREE OF A COMBINATION NOTE (OR AN INTEREST THEREIN) WILL BE DEEMED TO REPRESENT AND WARRANT EITHER THAT (A) IT IS NOT (AND FOR SO LONG AS IT
HOLDS SUCH COMBINATION NOTE WILL NOT BE), AND IS NOT ACTING ON BEHALF OF (AND FOR SO LONG AS IT HOLDS SUCH COMBINATION NOTE WILL NOT BE ACTING ON BEHALF OF), AN 

  

 73 

 
“EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”),
WHICH IS SUBJECT TO TITLE I OF ERISA, A “PLAN” DESCRIBED IN SECTION 4975(e)(1) OF THE U.S. INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY WHICH IS DEEMED TO HOLD PLAN ASSETS OF ANY OF THE FOREGOING BY REASON OF
INVESTMENT BY AN EMPLOYEE BENEFIT PLAN OR PLAN IN SUCH ENTITY OR A GOVERNMENTAL PLAN WHICH IS SUBJECT TO ANY APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO ERISA OR SECTION 4975 OF THE CODE, OR (B) ITS PURCHASE, OWNERSHIP AND DISPOSITION OF
SUCH COMBINATION NOTE WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE (OR, IN THE CASE OF A GOVERNMENTAL PLAN, ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW). 
  
 IF, NOTWITHSTANDING THE RESTRICTIONS ON TRANSFER CONTAINED HEREIN, EITHER OF THE CO-ISSUERS
DETERMINES THAT ANY BENEFICIAL OWNER OF THIS COMBINATION NOTE (OR ANY INTEREST HEREIN) (A) IS A U.S. PERSON AND (B) WAS NOT BOTH A QUALIFIED PURCHASER AND A QUALIFIED INSTITUTIONAL BUYER AT THE TIME OF ITS ACQUISITION HEREOF (OR OF ANY
INTEREST HEREIN), THEN EITHER OF THE CO-ISSUERS MAY REQUIRE, BY NOTICE TO SUCH HOLDER, THAT SUCH HOLDER SELL ALL OF ITS RIGHT, TITLE AND INTEREST HEREIN TO A PERSON THAT IS BOTH A QUALIFIED PURCHASER AND A QUALIFIED INSTITUTIONAL BUYER, WITH SUCH
SALE TO BE EFFECTED WITHIN 30 DAYS AFTER NOTICE OF SUCH SALE REQUIREMENT IS GIVEN. IF SUCH BENEFICIAL OWNER FAILS TO EFFECT THE TRANSFER REQUIRED WITHIN SUCH 30-DAY PERIOD, (I) UPON DIRECTION FROM THE ISSUER, THE TRUSTEE (ON BEHALF OF AND AT
THE EXPENSE OF THE ISSUER) SHALL CAUSE SUCH BENEFICIAL OWNER’S INTEREST HEREIN TO BE TRANSFERRED IN A COMMERCIALLY REASONABLE SALE (CONDUCTED BY THE TRUSTEE IN ACCORDANCE WITH SECTION 9-610(B) OF THE UNIFORM COMMERCIAL CODE AS IN EFFECT IN THE
STATE OF NEW YORK) TO A PERSON THAT CERTIFIES TO THE TRUSTEE, THE CO-ISSUERS AND THE COLLATERAL MANAGER, IN CONNECTION WITH SUCH TRANSFER, THAT SUCH PERSON IS BOTH A QUALIFIED PURCHASER AND A QUALIFIED INSTITUTIONAL BUYER AND (II) PENDING SUCH
TRANSFER, NO FURTHER PAYMENTS WILL BE MADE IN RESPECT OF THIS COMBINATION NOTE. 
  
 ANY TRANSFEREE OF THIS COMBINATION NOTE (OR ANY INTEREST HEREIN), AND EACH ACCOUNT FOR WHICH IT IS PURCHASING THIS COMBINATION NOTE (OR ANY INTEREST HEREIN), IS REQUIRED TO HOLD AND TRANSFER AT LEAST THE MINIMUM DENOMINATIONS REQUIRED BY
THE INDENTURE. EACH TRANSFEREE IS REQUIRED TO PROVIDE WRITTEN NOTICE OF THE TRANSFER RESTRICTIONS TO ANY SUBSEQUENT TRANSFEREES. 
  
 UNLESS THIS COMBINATION NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”) TO THE NOTE REGISTRAR FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE 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 MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY 

  

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PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 (d) Denominations; Qualified Purchaser Status. No Person may hold a
beneficial interest in any Note or Combination Note except in a denomination authorized therefor under Section 2.2(b). No transfer of a Note or Combination Note may be made to a Flow-Through Investment Vehicle other than a Qualifying Investment
Vehicle and no transfer of a Note or Combination Note may be made to any investor that is not a Qualified Purchaser. Any purported transfer that is not in compliance with this Section 2.4 will be void ab initio. 
  
 If, notwithstanding the restrictions on transfer set forth herein, either of
the Co-Issuers determines that any beneficial owner of a Class A Note, Class B Note, Class C Note, Class D Note, Class E Note or Combination Note (or any interest therein) (A) is a U.S. Person and (B) was not both a Qualified
Purchaser and a Qualified Institutional Buyer at the time of its acquisition thereof, then either of the Co-Issuers may require, by notice to such holder, that such holder sell all of its right, title and interest in such Note or Combination Note
(or interest therein) to a Person that is both a Qualified Purchaser and a Qualified Institutional Buyer with such sale to be effected within 30 days after notice of such sale requirement is given. If such beneficial owner fails to effect the
transfer required within such 30-day period, (i) upon direction from the Issuer, the Trustee (on behalf of and at the expense of the Issuer) shall cause such beneficial owner’s interest in such Note or Combination Note to be transferred in
a commercially reasonable sale (conducted by the Trustee in accordance with Section 9-610(b) of the Uniform Commercial Code as in effect in the State of New York) to a person that certifies to the Trustee, the Co-Issuers and the Collateral
Manager, in connection with such transfer, that such person is both a Qualified Purchaser and a Qualified Institutional Buyer and (ii) pending such transfer, no further payments will be made in respect of such Note or Combination Note held by
such beneficial owner. 
  
 If, notwithstanding the restrictions on
transfer set forth herein, the Issuer determines that any beneficial owner of a Class E Note (or any interest therein) was not a Qualified Institutional Buyer (or in the case of a U.S. Person, was not both a Qualified Purchaser and a Qualified
Institutional Buyer) at the time of its acquisition thereof, then the Issuer may require, by notice to such holder, that such holder sell all of its right, title and interest in such Note (or interest therein) to a Person that is a Qualified
Institutional Buyer (or in the case of a U.S. Person, a Person that is both a Qualified Purchaser and a Qualified Institutional Buyer) with such sale to be effected within 30 days after notice of such sale requirement is given. If such beneficial
owner fails to effect the transfer required within such 30-day period, (i) upon direction from the Issuer, the Trustee (on behalf of and at the expense of the Issuer) shall cause such beneficial owner’s interest in such Note to be
transferred in a commercially reasonable sale (conducted by the Trustee in accordance with Section 9-610(b) of the Uniform Commercial Code as in effect in the State of New York) to a person that certifies to the Trustee, the Co-Issuers and the
Collateral Manager, in connection with such transfer, that such person is a Qualified Institutional Buyer (or in the case of a U.S. Person, both a Qualified Purchaser and a Qualified Institutional Buyer) and (ii) pending such transfer, no
further payments will be made in respect of such Note held by such beneficial owner. 
  

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 (e) Legends. Any Note issued upon the transfer, exchange or replacement of Notes shall bear such
applicable legend set forth in the relevant exhibit hereto unless there is delivered to the Trustee, the Note Registrar, the Collateral Manager, the Issuer and the Co-Issuer such satisfactory evidence, which may include an Opinion of Counsel, as may
be reasonably required by any of the Trustee, the Note Registrar, the Issuer or the Co-Issuer to the effect that neither such applicable legend nor the restrictions on transfer set forth therein are required to ensure that transfers thereof comply
with the provisions of an applicable exemption to the registration requirements of the Securities Act, to ensure that neither the Issuer nor the pool of Collateral becomes an investment company required to be registered under the Investment Company
Act and to ensure that the Co-Issuers are not adversely effected regarding tax or ERISA issues. Upon provision of such satisfactory evidence, the Trustee, at the direction of the Co-Issuers, shall authenticate and deliver Notes that do not bear such
applicable legend. 
  
 (f) Expenses; Acknowledgment of
Transfer. Transfer, registration and exchange shall be permitted as provided in this Section 2.4 without any charge to the Holder except for the expenses of delivery (if any) not made by regular mail. Registration of the transfer of a Note
by the Trustee shall be deemed to be the acknowledgment of such transfer on behalf of the Co-Issuers. 
  
 (g) Surrender upon Final Payment. Upon final payment due on the Maturity of a Note, the Holder thereof shall present and surrender such Note at the
Corporate Trust Office of the Trustee or at the office of any Paying Agent. 
  
 (h) Repurchase and Cancellation of Notes. The Co-Issuers will not purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the Outstanding Notes except upon the redemption of the Notes in
accordance with the terms of this Indenture and the Notes. The Co-Issuers will promptly cancel all Notes acquired by them pursuant to any payment, purchase, redemption, prepayment or other acquisition of Notes pursuant to any provision of this
Indenture and no Notes may be issued in substitution or exchange for any such Notes. 
  
 (i) Compliance with Transfer Restrictions. Notwithstanding anything contained herein to the contrary, neither the Trustee nor the Note Registrar shall be responsible for ascertaining whether any transfer
complies with the registration provisions of or exemptions from the Securities Act, applicable state securities laws, the rules of any Depositary, ERISA, the Code or the Investment Company Act; provided, that if a certificate is specifically
required by the express terms of this Section 2.4 to be delivered to the Trustee or the Note Registrar by a purchaser or transferee of a Note, the Trustee or the Note Registrar, as the case may be, shall be under a duty to receive and examine
the same to determine whether the certificate substantially complies on its face with the express terms of this Indenture and shall promptly notify the party delivering the same if such transfer does not comply with such terms. 
  
 (j) Physical Notes. The Co-Issuers will promptly make available to the
Trustee without charge a reasonable supply of Definitive Notes in definitive, fully Registered Form, without interest coupons. 
  

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 Section 2.5. Mutilated, Defaced, Destroyed, Lost or Stolen Notes 
  
 If (a) any mutilated or defaced Note is surrendered to a Transfer Agent,
or if there shall be delivered to the Co-Issuers, the Trustee and the Transfer Agent (each, a “Specified Person”) evidence to their reasonable satisfaction of the destruction, loss or theft of any Note and (b) there is delivered to
the Specified Persons such security or indemnity as may reasonably be required by them to save each of them harmless, then, in the absence of notice to the Specified Persons that such Note has been acquired by a bona fide purchaser, the Co-Issuers
(or, in the case of Class E Notes, the Issuer) shall execute and shall direct the Trustee to authenticate, and upon Issuer Request the Trustee shall authenticate and deliver, in lieu of any such mutilated, defaced, destroyed, lost or stolen Note or
a new Note of like tenor as such mutilated, defaced, destroyed, lost or stolen Note, of like tenor (including the same date of issuance) and equal principal amount, registered in the same manner, dated the date of its authentication, bearing
interest from the date to which interest has been paid on the mutilated, defaced, destroyed, lost or stolen Note and bearing a number not contemporaneously outstanding. 
  
 If, after delivery of such new Note, a bona fide purchaser of the predecessor Note presents for payment, transfer or
exchange such predecessor Note, the Specified Persons shall be entitled to recover such new Note from the Person to whom it was delivered or any Person taking therefrom, and shall be entitled to recover upon the security or indemnity provided
therefor to the extent of any loss, damage, cost or expense incurred by the Specified Persons in connection therewith. 
  
 In case any such mutilated, defaced, destroyed, lost or stolen Note has become due and payable, the Co-Issuers (or, in the case of Class E Notes, the
Issuer) in their discretion may, instead of issuing a new Note, pay such Note without requiring surrender thereof except that any mutilated Note shall be surrendered. 
  
 Upon the issuance of any new Note under this Section 2.5, the Co-Issuers, the Trustee or any Transfer Agent may require
the payment by the registered Holder thereof of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.

  
 Every new Note issued pursuant to this Section 2.5 in
lieu of any mutilated, defaced, destroyed, lost or stolen Note shall constitute an original additional contractual obligation of the Co-Issuers (or, in the case of Class E Notes, the Issuer) and such new Note shall be entitled, subject to the second
paragraph of this Section 2.5, to all the benefits of this Indenture equally and proportionately with any and all other Notes duly issued hereunder. 
  
 The provisions of this Section 2.5 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, defaced, destroyed, lost or stolen Notes. 
  

 77 

 Section 2.6. Payment of Principal and Interest and the Commitment Fee; Rights Preserved

  
 Each Class of Notes shall accrue interest during each Interest
Period applicable to such Class at the applicable Note Interest Rate specified in Section 2.2. Interest on each Class of Notes shall be due and payable on each Distribution Date; provided, that (i) payment of interest on the
Class A-2 Notes is subordinated to the payment on each Distribution Date of the interest due and payable on the Class A-1 Notes (together with Defaulted Interest thereon and interest on such Defaulted Interest, if any) and the Commitment
Fee on each Distribution Date, (ii) payment of interest on the Class A-3 Notes is subordinated to the payment on each Distribution Date of the interest due and payable on the Class A-1 Notes and the Class A-2 Notes (together with
Defaulted Interest thereon and interest on such Defaulted Interest, if any) and the Commitment Fee on each Distribution Date, (iii) payment of interest on the Class B Notes is subordinated to the payment on each Distribution Date of the
interest due and payable on the Class A-1 Notes, Class A-2 Notes and Class A-3 Notes (together with Defaulted Interest thereon, and interest on such Defaulted Interest, if any) and the Commitment Fee on each Distribution Date,
(iv) payment of interest on the Class C Notes is subordinated to the payment on each Distribution Date of the interest due and payable on the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes and Class B Notes (together with
Defaulted Interest thereon, Class C Deferred Interest and interest on such Defaulted Interest or Class C Deferred Interest, if any) and the Commitment Fee on each Distribution Date, (v) payment of interest on the Class D Notes is subordinated
to the payment on each Distribution Date of the interest due and payable on the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class B Notes and Class C Notes (together with Defaulted Interest thereon, Class D Deferred Interest
and interest on such Defaulted Interest or Class D Deferred Interest if any) and the Commitment Fee on each Distribution Date, (vi) payment of interest on the Class E Notes is subordinated to the payment on each Distribution Date of the
interest due and payable on the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class B Notes, Class C Notes and Class D Notes (together with Defaulted Interest thereon, Class E Deferred Interest and interest on such Defaulted
Interest or Class E Deferred Interest, if any) and the Commitment Fee on each Distribution Date, and (vii) payments of interest on all Notes are subordinated to the payment on each Distribution Date of other amounts in accordance with the
Priority of Payments. Except as provided in Section 5.5, no payment shall be made by the Co-Issuers hereunder other than on a Distribution Date. The Class A-1 Notes shall accrue Commitment Fee during each Interest Period for each day from
and including the Closing Date to but excluding the Commitment Period Termination Date as specified in Section 2.2. Commitment Fee shall be due and payable on each Distribution Date; provided, that payment of the Commitment Fee is
subordinated to the payment on each Distribution Date of other amounts in accordance with the Priority of Payments. 
  
 So long as any Class A Notes and Class B Notes are Outstanding (or if the Commitment Period Termination Date has not occurred), any interest due on
the Class C Notes, the Class D Notes or the Class E Notes which is not available to be paid as a result of the operation of the Priority of Payments on any Distribution Date shall not be considered “due and payable” for the purposes of
Section 5.1(a) until the Distribution Date on which such interest is available to be paid in accordance with the Priority of Payments and shall be added to the Aggregate Outstanding Principal Amount of the Class C Notes as Class C Deferred
Interest, as applicable, shall be added to the Aggregate outstanding Principal Amount of the Class D Notes 

  

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as Class D Deferred Interest, as applicable and shall be added to the Aggregate Outstanding Principal Amount of the Class E Notes as Class E Deferred
Interest. Class C Deferred Interest on the Class C Notes accrued to any Distribution Date shall bear interest at the Note Interest Rate applicable to the Class C Notes and shall be payable on the first Distribution Date on which funds are permitted
to be used for such purpose in accordance with the Priority of Payments. Upon the payment of Class C Deferred Interest previously capitalized as principal, the Aggregate Outstanding Principal Amount of the Class C Notes will be reduced by the amount
of such payment. Class D Deferred Interest on the Class D Notes accrued to any Distribution Date shall bear interest at the Note Interest Rate applicable to the Class D Notes and shall be payable on the first Distribution Date on which funds are
permitted to be used for such purpose in accordance with the Priority of Payments. Upon the payment of Class D Deferred Interest previously capitalized as principal, the Aggregate Outstanding Principal Amount of the Class D Notes will be reduced by
the amount of such payment. To the extent lawful and enforceable, interest shall accrue on any Defaulted Interest on any Note at the applicable Note Interest Rate until paid as provided herein. 
  
 In the event that any date identified as a Distribution Date (other than a
Redemption Date or at Stated Maturity) falls on a day other than a Business Day, the Distribution Date shall be deemed to be the next succeeding Business Day and, except with respect to the Class B-2 Notes, the Class D-2 Notes and, when bearing
interest at a fixed rate, the Class C-2 Notes and the Class C-3 Notes, interest shall accrue on such payment for the period from and after any such identified date to such next succeeding Business Day. 
  
 (a) The principal of each Note shall be payable no later than the Stated
Maturity thereof unless the unpaid principal of such Note becomes due and payable at an earlier date by declaration of acceleration, call for redemption or otherwise; provided, that, so long as any Class A-1 Notes are Outstanding (or if
the Commitment Period Termination Date has not occurred), except as otherwise provided in Section 9 and the Priority of Payments, the payment of principal of the Class A-2 Notes (x) may only occur after principal of the Class A-1
Notes has been paid in full and (y) shall be subordinated to the payment on each Distribution Date of the principal and interest due and payable on the Class A-1 Notes and other amounts payable in accordance with the Priority of Payments;
provided, further, that so long as any Class A-1 Notes or Class A-2 Notes are Outstanding (or if the Commitment Period Termination Date has not occurred), except as otherwise provided in Section 9 and the Priority of
Payments, the payment of principal of the Class A-3 Notes (x) may only occur after principal of the Class A-1 Notes and the Class A-2 Notes have been paid in full and (y) shall be subordinated to the payment on each
Distribution Date of the principal and interest due and payable on the Class A-1 Notes, the principal and interest due and payable on the Class A-2 Notes and other amounts payable in accordance with the Priority of Payments;
provided, further, that so long as any Class A-1 Notes, Class A-2 Notes or Class A-3 Notes are Outstanding (or if the Commitment Period Termination Date has not occurred), except as otherwise provided in Section 9
and the Priority of Payments, the payment of principal of the Class B Notes (x) may only occur after principal of the Class A-1 Notes, the Class A-2 Notes and the Class A-3 Notes have been paid in full and (y) shall be
subordinated to the payment on each Distribution Date of the principal and interest due and payable on the Class A-1 Notes, the principal and interest due and payable on the Class A-2 Notes, the principal and interest due and payable on
the Class A-3 Notes and other amounts payable in accordance with the Priority of Payments; provided, further, that so long as any 

  

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Class A-1 Notes, Class A-2 Notes, Class A-3 Notes or Class B Notes are Outstanding (or if the Commitment Period Termination Date has not
occurred), except as otherwise provided in Section 9 and the Priority of Payments, the payment of principal of the Class C Notes (x) may only occur after principal of the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes and
Class B Notes have been paid in full and (y) shall be subordinated to the payment on each Distribution Date of the principal and interest due and payable on the Class A-1 Notes, the principal and interest due and payable on the
Class A-2 Notes, the principal and interest due and payable on the Class A-3 Notes, the principal and interest due and payable on the Class B Notes, and other amounts payable in accordance with the Priority of Payments; provided,
further, that so long as any Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class B Notes or Class C Notes are Outstanding (or if the Commitment Period Termination Date has not occurred), except as otherwise provided in
Section 9 and the Priority of Payment, the payment of principal of the Class D Notes (x) may only occur after principal of the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class B Notes and Class C Notes have been paid
in full and (y) shall be subordinated to the payment on each Distribution Date of the principal and interest due and payable on the Class A-1 Notes, the principal and interest due and payable on the Class A-2 Notes, the principal and
interest due and payable on the Class A-3 Notes, the principal and interest due and payable on the Class B Notes, the principal and interest due and payable on the Class C Notes and other amounts payable in accordance with the Priority of
Payments; provided, further, that so long as any Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class B Notes, Class C Notes or Class D Notes are Outstanding (or if the Commitment Period Termination Date has not
occurred), except as otherwise provided in Section 9 and the Priority of Payments, the payment of principal of the Class E Notes (x) may only occur after principal of the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes,
Class B Notes, Class C Notes and Class D Notes has been paid in full and (y) shall be subordinated to the payment on each Distribution Date of the principal and interest due and payable on the Class A-1 Notes, the principal and interest
due and payable on the Class A-2 Notes, the principal and interest due and payable on the Class A-3 Notes, the principal and interest due and payable on the Class B Notes, the principal and interest due and payable on the Class C Notes,
the principal and interest due and payable on the Class D Notes, the principal and interest due and payable on the Class E Notes and other amounts payable in accordance with the Priority of Payments; provided, further, that so long as
any Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class B Notes, Class C Notes or Class D Notes are Outstanding (or if the Commitment Period Termination Date has not occurred), except as otherwise provided in Section 9 and
the Priority of Payments, the payment of principal of the Class E Notes (x) may only occur after principal of the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class B Notes, Class C Notes, Class D Notes and Class E Notes
has been paid in full and (y) shall be subordinated to the payment on each Distribution Date of the principal and interest due and payable on the Class A-1 Notes, the principal and interest due and payable on the Class A-2 Notes, the
principal and interest due and payable on the Class A-3 Notes, the principal and interest due and payable on the Class B Notes, the principal and interest due and payable on the Class C Notes, the principal and interest due and payable on the
Class D Notes and Class E Notes and other amounts payable in accordance with the Priority of Payments; provided, further, that any payment of principal of any Class of Notes (other than the most senior Class of Notes then Outstanding)
that is not paid in accordance with the Priority of Payments on any Distribution Date shall not be considered “due and payable” for purposes of Section 5.1(b) until the Distribution Date on which such principal may be paid in
accordance with the Priority of Payments. 
  

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 (b) So long as the Coverage Tests are satisfied, principal will not be payable on any Class of Notes
except (i) upon the occurrence of an Auction Call Redemption, Optional Redemption or Tax Redemption, (ii) as necessary to obtain a Ratings Confirmation, (iii) in the case of any Class C Notes, to pay amounts in respect of Class C
Deferred Interest, (iv) in the case of any Class D Notes, to pay amounts in respect of Class D Deferred Interest, (v) in the case of any Class E Notes, to pay amounts in respect of Class E Deferred Interest, and (vi) on each
Distribution Date principal will be payable from Principal Proceeds and, in certain circumstances, Interest Proceeds, in accordance with the Priority of Payments. 
  
 (c) As a condition to the payment of any principal of or interest or the Commitment Fee on any Note without U.S. federal
back-up withholding, the Co-Issuers shall require the delivery of properly completed and signed applicable U.S. federal income tax certifications (generally, an Internal Revenue Service Form W-9 (or applicable successor form) in the case of a person
that is a “United States person” within the meaning of Section 7701(a)(30) of the Code or an Internal Revenue Service Form W-8 (or applicable successor form) in the case of a person that is not a “United States person”
within the meaning of Section 7701(a)(30) of the Code). In addition, any Paying Agent may require further certification acceptable to it to enable the Co-Issuers, the Trustee and any Paying Agent to determine their duties and liabilities with
respect to any taxes or other charges that they may be required to pay, deduct or withhold in respect of such Note or the Holder of such Note under any present or future law or regulation of the Cayman Islands or the United States or any present or
future law or regulation of any political subdivision thereof or taxing authority therein or to comply with any reporting or other requirements under any such law or regulation. All payments made by the Co-Issuers under this Indenture and the Notes
will be made without any deduction or withholding for or on the account of any tax unless such deduction or withholding is required by applicable law, as modified by the practice of any relevant governmental revenue authority, then in effect. If the
Co-Issuers are so required to deduct or withhold, then the Co-Issuers will not be obligated to pay any additional amounts in respect of such withholding or deduction. 
  
 (d) Payments in respect of principal of and interest and the Commitment Fee on the Notes or Combination Note shall be
payable by wire transfer in immediately available funds to a Dollar account maintained by the Noteholders in accordance with wire transfer instructions received by any Paying Agent on or before the Record Date or, if no wire transfer instructions
are received by a Paying Agent, by a Dollar check drawn on a bank in the United States mailed by first-class mail to the address of such Noteholder as it appears on the Note Register at the close of business on the Record Date for such payment.

  
 (e) The principal of and interest and the Commitment Fee on
any Note or Combination Note that is payable on a Redemption Date or in accordance with the Priority of Payments on a Distribution Date and is punctually paid or duly provided for on such Redemption Date or Distribution Date shall be paid to the
Person in whose name that Note (or one or more predecessor Notes) is registered at the close of business on the Record Date for such payment. All such payments that are mailed or wired and returned to the Paying Agent shall be held for 

  

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payment as herein provided at the office or agency of the Issuer or Co-Issuer to be maintained as provided in Section 7.2. 
  
 Payments to Holders of the Notes of each Class shall be made in the
proportion that the Aggregate Outstanding Principal Amount of the Notes of such Class registered in the name of each such Holder on the Record Date for such payment bears to the Aggregate Outstanding Principal Amount of all Notes of such Class on
such Record Date. 
  
 (f) Payment of any Defaulted Interest may be
made in any other lawful manner in accordance with the Priority of Payments if notice of such payment is given by the Trustee to the Co-Issuers, the Hedge Counterparty and the Noteholders, and such manner of payment shall be deemed practicable by
the Trustee. 
  
 (g) All reductions in the principal amount of a
Note (or one or more predecessor Notes) effected by payments of installments of principal made on any Distribution Date or Redemption Date shall be binding upon all future Holders of such Note and of any Note issued upon the registration of transfer
thereof or in exchange therefor or in lieu thereof, whether or not such payment is noted on such Note. 
  
 (h) The obligations of the Co-Issuers under the Notes and this Indenture are non-recourse obligations of the Co-Issuers payable solely from the Collateral
and in accordance with the Priority of Payments, and following realization of the Collateral and its reduction to zero any claims of the Noteholders shall be extinguished and shall not thereafter revive. No recourse shall be had against any Officer,
Preferred Shareholder, director, manager, employee, security holder or incorporator of the Issuer, the Co-Issuer, the Collateral Manager, the Trustee, any Rating Agency, the Placement Agent or their respective successors or assigns for the payment
of any amounts payable under the Notes or this Indenture. It is understood that the foregoing provisions of this Section 2.6(i) shall not (i) prevent recourse to the Collateral for the sums due or to become due under any security,
instrument or agreement that is part of the Collateral or (ii) constitute a waiver, release or discharge of any indebtedness or obligation evidenced by the Notes or secured by this Indenture until such Collateral has been realized, whereupon
any outstanding indebtedness or obligation shall be extinguished. It is further understood that the foregoing provisions of this Section 2.6(i) shall not limit the right of any Person to name either Co-Issuers as a party defendant in any action
or suit or in the exercise of any other remedy under the Notes or this Indenture, so long as no judgment in the nature of a deficiency judgment or seeking personal liability shall be asked for or (if obtained) enforced against any such Person or
entity. 
  
 (i) Subject to the foregoing provisions of this
Section 2.6 and the provisions of Sections 2.4 and 2.5, each Note delivered under this Indenture and upon registration of transfer of or in exchange for or in lieu of any other Note shall carry the rights of unpaid interest and the Commitment
Fee and principal that were carried by such other Note. 
  
 Section 2.7. Persons Deemed Owners 
  
 The
Co-Issuers, the Trustee and any agent of any of them (collectively, the “Relevant Persons”) may treat the Person in whose name any Note or Combination Note on the 

  

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Note Register is registered as the owner of such Note or Combination Note on the applicable Record Date for the purpose of receiving payments of principal of
and interest and the Commitment Fee on such Note and on any other date for all other purposes whatsoever (whether or not such Note is overdue), and no Relevant Person shall be affected by notice to the contrary. 
  
 Section 2.8. Cancellation 
  
 All Notes surrendered for payment, registration of transfer, exchange or
redemption, or deemed lost or stolen, shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee, shall promptly be canceled by it and may not be reissued or resold. No Notes shall be authenticated in lieu of or in
exchange for any Notes canceled as provided in this Section 2.8, except as expressly permitted by this Indenture. All canceled Notes held by the Trustee shall be destroyed or held by the Trustee in accordance with its standard retention policy
unless the Co-Issuers shall direct by an Issuer Order that they be returned to it. Any Notes purchased by the Co-Issuers shall be immediately delivered to the Trustee for cancellation. 
  
 Section 2.9. Combination Notes 
  
 (a) The Combination Notes will be treated as Class B-2 Notes and Class D-2 Notes, to the extent of the respective Components
thereof, for purposes of voting, notice or other action. On each Distribution Date on which payments of interest, principal, redemption amounts or other payments are made on the Class B-2 Notes or Class D-2 Notes, a portion of such payments shall be
allocated to each related Component of the Combination Notes as provided below. The Combination Notes are non-recourse obligations of the Co-Issuers and are payable solely from payments of interest, principal or other distributions in respect of the
Components thereof which comprise Class B-2 Notes and Class D-2 Notes. The Combination Notes will be entitled to no other payments. 
  
 Each Holder of a Combination Note shall be deemed to make the applicable representations and agreements set forth in Section 2.4(c) with respect to
the Components thereof. 
  
 Distributions to which the Combination
Notes shall be entitled shall be made on each Distribution Date, including the Stated Maturity. The Combination Notes shall be paid distributions solely to the extent that interest or other amounts are paid on the relevant underlying Components.
Payments in respect of interest, principal, redemption or other amounts on the Class B-2 Notes or Class D-2 Notes, which are represented by the Components, shall be allocated to the related Combination Note in the proportion (which originally shall
be 100%) that (i) the Aggregate Outstanding Principal Amount of the Class B-2 Notes or Class D-2 Notes, as the case may be, represented by such Component bears to (ii) the Aggregate Outstanding Principal Amount of the Class B-2 Notes or
Class D-2 Notes (including the related Components) as a whole. No other payments shall be made in respect of the Combination Notes. 
  
 Subject to the provisions of Section 2.6, Holders of Combination Notes as of the Record Date in respect of a Distribution Date shall be entitled to
the interest accrued and payable on the corresponding Components in accordance with the Priority of Payments and principal payable on the corresponding Components in accordance with the Priority of Payments on such 

  

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Distribution Date. All such payments that are mailed or wired and returned to the Paying Agent shall be held for payment as herein provided at the office or
agency of the Issuer and the Co-Issuer to be maintained as provided in Section 7.2 (or returned to the Trustee). 
  
 Amounts payable on any Combination Note which are payable, and are punctually paid or duly provided for, on any Distribution Date shall be paid to the
Person in whose name that Combination Note (or one or more predecessor Notes) is registered at the close of business on the Record Date for such interest. 
  
 The indicated rating of the Combination Notes on the Closing Date addresses the ultimate payment of the principal of the Combination Notes. 
  
 If an owner of a Combination Note wishes at any time to exchange such
Combination Note for the Classes represented by its Components, such exchange may be made, and shall only be made, in accordance with paragraph (b) below. 
  

Each Component of a Combination Note must satisfy the Authorized Denomination for its underlying Class specified in Section 2.2(b). 
  
 (b) If a holder of a Combination Note wishes at any time to exchange such
Combination Note for the Classes of Notes represented by its Components, such exchange may be made, and shall only be made, in accordance with this Section 2.9(b). A Holder of a Combination Note may exchange such Combination Note for one or
more Class B-2 Notes and Class D-2 Notes representing such Components (unless such Component has been fully paid). No exchange of a Combination Note for Notes representing its underlying Components shall be made until receipt by the Notes Registrar
of a certificate substantially in the form of Exhibit C-1 or C-2, if applicable, duly executed by the Holder of such Combination Note accompanied by such Holder’s Combination Note. 
  
 Upon receipt by the Note Registrar of the documents referred to in the preceding sentence, the Note Registrar shall cancel
such Combination Note, record the exchange in the Note Register in accordance with Section 2.8, instruct the Co-Issuers to execute, and thereafter authenticate and deliver Notes representing the underlying Components consisting of Notes in the
form so requested in the same respective principal amounts as such underlying Component represents and notify the Issuer and the Transfer Agent of the exchange. 
  

ARTICLE III 
  
 CONDITIONS PRECEDENT 
  
 Section 3.1. General Provisions 
  
 The Notes, including any Class A-1 Notes issued after the Closing Date pursuant to the Class A-1 Note Purchase Agreement, may be executed by the Co-Issuers (or, in the case of Class E Notes, the Issuer) and
delivered to the Trustee for authentication and thereupon the same 

  

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shall be authenticated and delivered by the Trustee (or an Authenticating Agent on its behalf) upon Issuer Order, upon receipt by the Trustee of the
following: 
  
 (a) an Officer’s certificate of the Issuer
(i) evidencing the authorization by Board Resolution of the execution and delivery of, and the performance of the Issuer’s obligations under, this Indenture, each Hedge Agreement, the Collateral Administration Agreement, the Account
Control Agreement, the Preferred Share Paying Agency Agreement, the Class A-1 Note Purchase Agreement, the Class A-2 Agency and Amending Agreement, the Class A-2 Account Control Agreement, the Collateral Management Agreement and the
Administration Agreement, in each case as may be amended on or prior to, and as in effect on, the Closing Date, and the execution, authentication and delivery of the Notes and the Preferred Shares and specifying the Stated Maturity, the principal
amount and the Note Interest Rate with respect to each Class of Notes to be authenticated and delivered and (ii) certifying that (A) the attached copy of such Board Resolution is a true and complete copy thereof, (B) such resolutions
have not been rescinded and are in full force and effect on and as of the Closing Date and (C) the Officers authorized to execute and deliver such documents hold the offices and have the signatures indicated thereon; 
  
 (b) an Officer’s certificate of the Co-Issuer (i) evidencing the
authorization by Board Resolution of the execution and delivery of, and the performance of the Co-Issuer’s obligations under, this Indenture, as may be amended on or prior to, and as in effect on, the Closing Date, and the execution,
authentication and delivery of the Co-Issuer Notes and specifying the Stated Maturity, the principal amount and Note Interest Rate of each Class of Co-Issuer Notes to be authenticated and delivered and (ii) certifying that (A) the attached
copy of such Board Resolution is a true and complete copy thereof, (B) such resolutions have not been rescinded and are in full force and effect on and as of the Closing Date and (C) the Officers authorized to execute and deliver such
documents hold the offices and have the signatures indicated thereon; 
  
 (c) either (i) a certificate of the Issuer, or other official document evidencing the due authorization, approval or consent of any governmental body or bodies, at the time having jurisdiction in the premises, together with an Opinion
of Counsel to the Issuer satisfactory in form and substance to the Trustee on which the Trustee is entitled to rely to the effect that no other authorization, approval or consent of any governmental body is required for the valid issuance of the
Notes, the Combination Notes and the Preferred Shares or (ii) an Opinion of Counsel to the Issuer satisfactory in form and substance to the Trustee to the effect that no such authorization, approval or consent of any governmental body is
required for the valid issuance of the Notes, the Combination Notes and the Preferred Shares except as may have been given; 
  
 (d) either (A) a certificate of the Co-Issuer or other official document evidencing the due authorization, approval or consent of any governmental
body or bodies, at the time having jurisdiction in the premises, together with an Opinion of Counsel to the Co-Issuer satisfactory in form and substance to the Trustee on which the Trustee is entitled to rely to the effect that no other
authorization, approval or consent of any governmental body is required for the valid issuance of the Co-Issuer Notes and the Combination Notes, or (B) an Opinion of Counsel to the Co-Issuer satisfactory in form and substance to the Trustee
that no such authorization, approval or consent of any governmental body is required for the valid issuance of the Co-Issuer Notes and the Combination Notes except as may have been given; 
  

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 (e) (i) an opinion of Mayer, Brown, Rowe & Maw LLP, special New York counsel to the
Co-Issuers, dated the Closing Date, substantially in the form of Exhibit E; 
  
 (ii) an opinion of Weil, Gotshal & Manges LLP, counsel to the Collateral Manager, dated the Closing Date, substantially in the form of Exhibit F; 
  
 (iii) an opinion of Gardere Wynne Sewell LLP, counsel to the Trustee, dated the Closing Date, substantially
in the form of Exhibit G; 
  
 (iv) an opinion of
Walkers, Cayman Islands counsel to the Issuer, dated the Closing Date, substantially in the form of Exhibit H; and 
  
 (v) an opinion of internal counsel to the Hedge Counterparty dated the Closing Date, substantially in the form of Exhibit J. 

 
 (f) an Officer’s certificate of the Issuer, stating that the Issuer
is not in Default under this Indenture and that the issuance of the Notes and the Preferred Shares will not result in a breach of any of the terms, conditions or provisions of, or constitute a Default under, the Issuer Charter, any indenture or
other agreement or instrument to which the Issuer is a party or by which it is bound, or any order of any court or administrative agency entered in any Proceeding to which the Issuer is a party or by which it may be bound or to which it may be
subject; that no Event of Default shall have occurred and be continuing; that all of the representations and warranties contained herein are true and correct as of the Closing Date; that all conditions precedent provided in this Indenture relating
to the authentication and delivery of the Notes, the Combination Notes and the Preferred Shares applied for (including in Section 3.2) have been complied with; and that all expenses due or accrued with respect to the Offering or relating to
actions taken on or in connection with the Closing Date have been paid; 
  
 (g) an Officer’s certificate of the Co-Issuer stating that the Co-Issuer is not in Default under this Indenture and that the issuance of the Notes will not result in a breach of any of the terms, conditions or provisions of, or
constitute a Default under, the Certificate of Incorporation or By-Laws of the Co-Issuer, any indenture or other agreement or instrument to which the Co-Issuer is a party or by which it is bound, or any order of any court or administrative agency
entered in any Proceeding to which the Co-Issuer is a party or by which it may be bound or to which it may be subject; that no Event of Default shall have occurred and be continuing; that all of the representations and warranties contained herein
are true and correct as of the Closing Date; that all conditions precedent provided in this Indenture relating to the authentication and delivery of the Co-Issuer Notes applied for have been complied with; and that all expenses due or accrued with
respect to the Offering or relating to actions taken on or in connection with the Closing Date have been paid; 
  
 (h) an Accountants’ Report in form and substance acceptable to the Issuer (i) confirming that Schedule A attached to this Indenture conforms
with the closing date collateral database provided on behalf of the Issuer, and which lists the Collateral Debt Securities to be Granted to the Trustee on the Closing Date pursuant to Section 3.2(a) hereof and confirming the information with
respect to each Collateral Debt Security set forth on the Schedule of Collateral Debt Securities attached hereto as Schedule A and the information 

  

 86 

 
provided by the Issuer with respect to every other asset forming part of the Collateral, by reference to such sources as shall be specified therein;
(ii) confirming that as of the Closing Date, the aggregate Principal Balance of the Collateral Debt Securities issued by any one issuer (including its Affiliates), does not account for more than 3.75% of the Aggregate Ramp-Up Par Amount and
compliance with the Collateral Quality Tests (excluding the Standard & Poor’s CDO Monitor Test); and (iii) with respect to each of the following categories of Collateral Debt Securities: (A) the Trust Preferred Securities,
(B) the Subordinated Notes, (C) the Primary Senior Notes, (D) the Secondary Senior Notes and (E) the CMBS, stating each of the following as of the Closing Date: (1) the aggregate Principal Balance of Collateral Debt
Securities in each such category, (2) the percentage of the total aggregate Principal Balance of all Collateral Debt Securities represented by Collateral Debt Securities in each such category, (3) the smallest and largest Principal Balance
of any individual issuance of Collateral Debt Securities in each such category, (4) the mean and median Principal Balances of Collateral Debt Securities in each such category and (5) the number of Trust Preferred Securities Issuers (and
the number of Real Estate Entities, if applicable), Subordinated Note Issuers, Primary Senior Note Issuers, Secondary Senior Note Issuers and CMBS Issuers of Collateral Debt Securities in each such category; 
  
 (i) an executed counterpart of the Collateral Administration Agreement, the
Class A-1 Note Purchase Agreement, the Account Control Agreement, the Class A-2 Agency and Amending Agreement, the Class A-2 Account Control Agreement, the Collateral Management Agreement, the Administration Agreement and the
Preferred Share Paying Agency Agreement; 
  
 (j) an executed copy
of each Hedge Agreement (including the initial Basis Swap) entered into on or prior to such date (and all acknowledgments thereto); 
  
 (k) delivery of a Financing Statement for filing with the Recorder of Deeds in the District of Columbia against the Issuer; 
  
 (l) evidence of the registration of a charge against the Issuer in the Cayman
Islands; 
  
 (m) an Issuer Order executed by the Co-Issuers
directing the Trustee to (i) authenticate the Notes and Combination Notes, as applicable, specified therein, in the amounts set forth therein and registered in the name(s) set forth therein and (ii) deliver the authenticated Notes and
Combination Notes, as applicable, to the Issuer to hold on behalf of the Co-Issuers or as otherwise directed by the Issuer or the Co-Issuer; and 
  
 (n) such other documents as the Trustee may reasonably require. 
  

Section 3.2. Security for Notes 
  
 Prior to the issuance of the Notes on the Closing Date, the Issuer shall cause the following conditions to be satisfied: 
  
 (a) Grant of Security Interest; Delivery of Collateral Debt
Securities. The Grant pursuant to the Granting Clauses of this Indenture of all of the Issuer’s right, title and interest in and to the Collateral and the transfer of all Collateral Debt Securities purchased by the Issuer on the Closing
Date and any Equity Securities acquired in connection therewith (as set forth in the Schedule of Collateral Debt Securities) to the Trustee in the manner provided in Section 3.3(b). 
  

 87 

 (b) Certificate of the Issuer. The delivery to the Trustee of a certificate of an Authorized
Officer of the Issuer or the Collateral Manager, for and on behalf of the Issuer, dated as of the Closing Date, to the effect that, in the case of each Collateral Debt Security and Equity Security pledged to the Trustee for inclusion in the
Collateral on the Closing Date and immediately prior to the delivery thereof on the Closing Date: 
  
 (i) the Issuer is the owner of such Collateral Debt Security or Equity Security free and clear of any liens, claims or encumbrances of any
nature whatsoever except for those which are being released on the Closing Date and except for those Granted pursuant to this Indenture and encumbrances arising from due bills, if any, with respect to interest, or a portion thereof, accrued on such
Collateral Debt Security or Equity Security prior to the first payment date and owed by the Issuer to the seller of such Collateral Debt Security or Equity Security; 
  
 (ii) the Issuer has acquired its ownership in such Collateral Debt Security or Equity Security in good faith
without notice of any adverse claim (within the meaning given to such term by Section 8-102(a)(1) of the UCC), except as described in clause (i) above; 
  
 (iii) the Issuer has not assigned, pledged or otherwise encumbered any interest in such Collateral Debt
Security or Equity Security (or, if any such interest has been assigned, pledged or otherwise encumbered, it has been released) other than interests Granted pursuant to this Indenture; 
  
 (iv) the Issuer has full right to Grant a security interest in and assign and pledge all of its right, title
and interest in such Collateral Debt Security or Equity Security to the Trustee; 
  
 (v) the information set forth with respect to such Collateral Debt Security or Equity Security in the Schedule of Collateral Debt
Securities is correct; 
  
 (vi) each Collateral
Debt Security included in the Collateral satisfies the Collateral Debt Security Criteria and is transferred to the Trustee as required by Section 3.2(a); 
  

(vii) each Collateral Debt Security and Equity Security was acquired in accordance with all applicable requirements of this Indenture;
and 
  
 (viii) upon Grant by the Issuer, the
Trustee has a first priority perfected security interest in the Collateral (assuming that any Clearing Corporation, Securities Intermediary or other entity not within the control of the Issuer involved in the Grant of Collateral takes the actions
required of it under Section 3.3(b) for perfection of that interest) and a Securities Entitlement with respect to Financial Assets. 
  
 (c) Rating Letters. The delivery to the Trustee of an Officer’s certificate of the Issuer, to the effect that (i) attached thereto are
true and correct copies of (A) a letter signed by Standard & Poor’s confirming that the Class A-1 Notes have been rated “AAA” by Standard & Poor’s, the Class A-2 Notes have been rated
“AAA” by Standard & Poor’s, the Class A-3 Notes 

  

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have been rated “AAA” by Standard & Poor’s, the Class B Notes have been rated “AA” by Standard & Poor’s, the
Class C Notes have been rated “A” by Standard & Poor’s, the Class D Notes have been rated “BBB” by Standard & Poor’s and the Class E Notes have been rated “BB+” by Standard &
Poor’s; (B) one or more letters signed by Fitch confirming that the Class A-1 Notes have been rated “AAA” by Fitch, the Class A-2 Notes have been rated “AAA” by Fitch, the Class A-3 Notes have been rated
“AAA” by Fitch, the Class B Notes have been rated “AA” by Fitch, the Class C Notes have been rated “A” by Fitch, the Class D Notes have been rated “BBB” by Fitch, the Class E Notes have been rated
“BB+” by Fitch and the Combination Notes have been rated “AA” by Fitch; and (C) a letter signed by Moody’s confirming that the Class A-1 Notes have been rated “Aaa” by Moody’s and the Class B Notes
have been rated “Aa2” by Moody’s. 
  
 (d)
Accounts. The delivery by the Trustee of evidence of the establishment of the Payment Account, the Interest Collection Account, the Hedge Counterparty Collateral Account, the Principal Collection Account, the First Distribution Date Reserve
Account, the Semi-Annual Interest Reserve Account, the Expense Account, the Interest Reserve Account, the Uninvested Proceeds Account and the Custodial Account. 
  

(e) Funding Certificate. The delivery to the Trustee of a Funding Certificate, duly executed by an Authorized Officer of the Issuer, relating
to, among other things, the disposition of the proceeds of the issuance of the Notes, and the Preferred Shares, dated the Closing Date, in substantially the form of Exhibit D hereto. 
  
 (f) Purchases. The delivery to the Trustee of evidence that the Issuer expects to purchase or enter into one or more
agreements to purchase, for settlement on or following the Closing Date in accordance with customary settlement procedures in the relevant markets, Collateral Debt Securities having an Aggregate Principal Balance of not less than U.S.$423,125,000.

  
 (g) Proceeds of the Preferred Shares. The Issuer has
issued Preferred Shares with an aggregate liquidation preference of U.S.$ 43,000,000 and received payment therefor. 
  
 Section 3.3. Custodianship; Transfer of Collateral Debt Securities and Eligible Investments 
  
 (a) The Trustee shall hold all Certificated Securities and Instruments in
physical form at the office of a custodian appointed by it in the Borough of Manhattan, City of New York (together with any successor in such capacity, the “Custodian”). Initially, such Custodian shall be JPMorgan Chase Bank, National
Association, with its address at WSS Window, 4 New York Plaza, Ground Floor, New York, New York 10004, Attn: Worldwide Securities Services, TABERNA PREFERRED FUNDING IV, LTD. Any successor custodian shall be a state or national bank or trust company
which is not an Affiliate of the Issuer or the Co-Issuer and has a combined capital and surplus of at least U.S.$ 200,000,000. 
  
 (b) Each Collateral Debt Security, Equity Security and Eligible Investment shall be credited to the appropriate Account. Each time that the Issuer, or the
Collateral Manager on behalf of the Issuer, shall direct or cause the acquisition of any Collateral Debt Security, Equity 

  

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Security or Eligible Investment, the Collateral Manager (on behalf of the Issuer) shall, if such Collateral Debt Security, Equity Security or Eligible
Investment has not already been transferred to the Custodial Account and credited thereto, cause the transfer of such Collateral Debt Security, Equity Security or Eligible Investment to the Custodian to be held in and credited to the Custodial
Account for the benefit of the Trustee in accordance with the terms of this Indenture. The security interest of the Trustee in the funds or other property utilized in connection with such acquisition shall, immediately and without further action on
the part of the Trustee, be released. The security interest of the Trustee shall nevertheless come into existence and continue in the Collateral Debt Security, Equity Security or Eligible Investment so acquired, including all rights of the Issuer in
and to any contracts related to and proceeds of such Collateral Debt Security, Equity Security or Eligible Investment. On the Closing Date and on each day any Collateral is acquired or otherwise becomes subject to the lien of this Indenture, the
Issuer hereby makes the Perfection Representations set forth in Exhibit K hereto, which representations shall be a part of this Indenture for all purposes. The Trustee (x) shall not, without satisfying the Rating Condition, waive any of the
Perfection Representations and (y) shall provide each Rating Agency with prompt written notice of any breach of the Perfection Representations of which the Trustee has knowledge. 
  
 (c) In order to perfect the security interest in the Collateral Granted to the Trustee hereunder, the Issuer shall:

  
 (i) in the case of a “financial
asset” (within the meaning of the applicable Uniform Commercial Code) credited to the Accounts, (A) deliver on the Closing Date to the Trustee a fully executed Account Control Agreement pursuant to which the Custodian, as Securities
Intermediary, has agreed to comply with all instructions originated by the Trustee directing disposition of the funds in the Accounts without further consent by the Issuer and (B) take all steps necessary to cause the Custodian, as Securities
Intermediary, to identify in its records the Trustee as the person having a security entitlement against the Custodian, as Securities Intermediary, in each of the Accounts; and 
  
 (ii) in the case of a “general intangible” (within the meaning of the applicable Uniform
Commercial Code), cause, within 10 days of the Closing Date (or 10 days of the acquisition date of such account), the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under applicable law.

  
 ARTICLE IV 
  
 SATISFACTION AND DISCHARGE 
  
 Section 4.1. Satisfaction and Discharge of Indenture 

 
 This Indenture shall be discharged and shall cease to be of further effect
with respect to the Notes and the Collateral securing the Notes, except as to (i) rights of registration of transfer and exchange, (ii) substitution of mutilated, defaced, destroyed, lost or stolen Notes, (iii) the rights of
Noteholders to receive payments of principal thereof and interest and the Commitment Fee thereon, as provided herein and the rights of the Hedge Counterparty to receive 

  

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Hedge Payment Amounts as provided herein (including as provided in the Priority of Payments and Section 13), (iv) the rights, obligations and
immunities of the Trustee hereunder, (v) the rights and immunities of the Collateral Manager hereunder and under the Collateral Management Agreement and (vi) the rights of the Secured Parties as beneficiaries hereof with respect to the
property deposited with the Trustee and payable to all or any of them; and the Trustee, on demand of and at the expense of the Issuer, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when: 
  
 (a) either: 
  
 (i) all Notes theretofore authenticated and delivered (other than (A) Notes that have been mutilated,
defaced, destroyed, lost or stolen and that have been replaced or paid as provided in Section 2.5 and (B) Notes for whose payment Money has theretofore irrevocably been deposited in trust and thereafter repaid to the Issuer or discharged
from such trust, as provided in Section 7.3) have been delivered to the Trustee for cancellation; or 
  
 (ii) all Notes not theretofore delivered to the Trustee for cancellation (A) have become due and payable, (B) will become due
and payable at their Stated Maturity within one year or (C) are to be called for redemption pursuant to Section 9.1 under an arrangement satisfactory to the Trustee for the giving of notice of redemption by the Co-Issuers pursuant to
Section 9.3 and the Issuer has irrevocably deposited or caused to be deposited with the Trustee, in trust for such purpose, Cash or noncallable direct obligations of the United States in an amount sufficient, as verified by a firm of nationally
recognized Independent certified public accountants, to pay and discharge the entire indebtedness on all Notes not theretofore delivered to the Trustee for cancellation, including all principal and interest (including the Class C Deferred Interest,
the Class D Deferred Interest and the Class E Deferred Interest and interest on Defaulted Interest, if any) and the Commitment Fee accrued to the date of such deposit (in the case of Notes which have become due and payable) or to the Stated Maturity
or the Redemption Date, as the case may be; provided, that (x) such obligations are entitled to the full faith and credit of the United States and (y) this subclause (ii) shall not apply if an election to act in accordance with the
provisions of Section 5.5(a) shall have been made and not rescinded; 
  
 (b) the Co-Issuers have paid or caused to be paid all other sums payable hereunder (including amounts payable pursuant to the Collateral Administration Agreement, the Hedge Agreements (including amounts associated
with the termination thereof), the Collateral Management Agreement, the Preferred Share Paying Agency Agreement, the Class A-1 Note Purchase Agreement, the Class A-2 Agency and Amending Agreement, the Administration Agreement and the other
documents executed in connection herewith) and no other amounts will become due and payable by the Co-Issuers; and 
  
 (c) each of the Issuer and the Co-Issuer has delivered to the Trustee an Officer’s certificate and an Opinion of Counsel, each stating that all
conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with. 
  

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 Notwithstanding the satisfaction and discharge of this Indenture, the rights and obligations of the
Issuer, the Co-Issuer, the Hedge Counterparty, the Trustee, the Collateral Manager and, if applicable, the Noteholders, as the case may be, under Sections 2.6, 4.2, 5.4(d) 5.9, 5.18, 6.7, 6.8, 7.1 and 7.3 shall survive. 
  
 Section 4.2. Application of Trust Money 
  
 All Cash deposited with the Trustee pursuant to Section 4.1 for the
payment of principal of and interest and the Commitment Fee on the Notes and amounts payable hereunder and pursuant to the Hedge Agreements, the Collateral Administration Agreement, the Collateral Management Agreement, the Class A-1 Note
Purchase Agreement, the Class A-2 Agency and Amending Agreement, the Administration Agreement and the Preferred Share Paying Agency Agreement shall be held in trust and applied by it in accordance with the provisions of the Notes and this
Indenture, including the Priority of Payments, for the payment either directly or through any Paying Agent, as the Trustee may determine, to the Person entitled thereto of the respective amounts in respect of which such Cash has been deposited with
the Trustee; but such Cash need not be segregated from other funds held by the Trustee except to the extent required herein or required by law. 
  
 Section 4.3. Repayment of Monies Held by Paying Agent 
  

In connection with the satisfaction and discharge of this Indenture with respect to the Notes, all Cash then held by any Paying Agent other than the
Trustee under the provisions of this Indenture shall, upon demand of the Co-Issuers, be paid to the Trustee to be held and applied pursuant to Section 7.3 and in accordance with the Priority of Payments and thereupon such Paying Agent shall be
released from all further liability with respect to such Cash. 
  
 ARTICLE V 
  
 EVENTS OF DEFAULT; REMEDIES

  
 Section 5.1. Events of Default 
  
 “Event of Default,” wherever used herein, means any one of the
following events (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body): 
  
 (a) a default in the
payment of any interest or the Commitment Fee (i) on any Class A-1 Note, Class A-2 Note, Class A-3 Note or Class B Note, (ii) if there are no Class B Notes outstanding, on any Class C Notes or (iii) if there are no
Class C Notes outstanding, on any Class D Notes or (iv) if there are no Class D Notes outstanding, on any Class E Notes when the same becomes due and payable, in each case which default continues for a period of three (3) Business Days,
such three Business Day period not to be abridged or extended unless the consent of all Holders of Outstanding Notes is obtained (or, in the case of a default in payment resulting solely from an administrative error or omission by the Trustee, a
Paying Agent (other than the Preferred Share Paying Agent) or the Note Registrar, such default continues for a period of seven days after written notice thereof); 
  

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 (b) a default in the payment of principal of any Note when the same becomes due and payable at its Stated
Maturity or Redemption Date (or, in the case of a default in payment resulting solely from an administrative error or omission by the Trustee, a Paying Agent (other than the Preferred Share Paying Agent) or the Note Registrar, such default continues
for a period of seven days after written notice thereof); 
  
 (c)
the failure on any Distribution Date to disburse amounts available in the Interest Collection Account or Principal Collection Account in accordance with the order of priority set forth in Section 11.1 (other than a default in payment described
in clause (a) or (b) of this Section 5.1), which failure continues for a period of three (3) Business Days, such three Business Day period not to be abridged or extended unless the consent of all Holders of Outstanding Notes is
obtained (or, in the case of a failure resulting solely from an administrative error or omission by the Trustee, a Paying Agent (other than the Preferred Share Paying Agent) or the Note Registrar, such default continues for a period of seven days
after written notice thereof); 
  
 (d) the Issuer, the Co-Issuer
or the pool of Collateral becomes an investment company required to be registered under the Investment Company Act; 
  
 (e) (i) a default in the performance, or a breach, of any other covenant or other agreement (other than the covenant to satisfy the Coverage Tests
and the Collateral Quality Tests) of the Issuer under this Indenture or (ii) any representation or warranty of the Issuer made in this Indenture or in any certificate or other writing delivered pursuant hereto or in connection herewith proves
to be incorrect in any material respect when made, and, in the case of both clauses (i) and (ii) above, the continuation of such default or breach for a period of 30 days (or, if such default or breach has an adverse effect on the
validity, perfection or priority of the security interest granted hereunder, 15 days) after the Issuer or the Collateral Manager has actual knowledge that such default or breach has occurred or after written notice thereof to the Issuer and the
Collateral Manager by the Trustee, or to the Issuer, the Collateral Manager and the Trustee by the Holders of at least 25% in Aggregate Outstanding Principal Amount of Notes of the Controlling Class or the Hedge Counterparty; 
  
 (f) an involuntary proceeding shall be commenced or an involuntary petition
shall be filed seeking (i) winding up, liquidation, reorganization or other relief in respect of either the Issuer or the Co-Issuer or its debts, or of a substantial part of its assets, under any bankruptcy, insolvency, receivership or similar
law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for either the Issuer or the Co-Issuer or for a substantial part of its assets in connection with any
winding up, liquidation, reorganization or other relief under any bankruptcy, insolvency, receivership or similar law, and, in any such case, such proceeding or petition shall continue undismissed for 60 days; or an order or decree approving or
ordering any of the foregoing shall be entered; or the Issuer or its assets shall become subject to any event that, under the applicable laws of the Cayman Islands, has an analogous effect to any of the foregoing; 
  
 (g) the Issuer or the Co-Issuer shall (i) voluntarily commence any
proceeding or file any petition seeking winding up, liquidation, reorganization or other relief under any bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in
a timely and appropriate manner, any proceeding or petition described in 

  

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Section 5.1(f), (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for
the Issuer or the Co-Issuer or for a substantial part of its assets in connection with any winding up, liquidation, reorganization or other relief under any bankruptcy, insolvency, receivership or similar law, (iv) file an answer admitting the
material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing; or the Issuer shall cause or
become subject to any event with respect to the Issuer that, under the applicable laws of the Cayman Islands, has an analogous effect to any of the foregoing; 
  

(h) one or more final judgments being rendered against the Issuer or the Co-Issuer that exceed, in the aggregate, U.S.$5,000,000 and which remain
unstayed, undischarged and unsatisfied for 30 days after such judgment(s) becomes nonappealable, unless adequate funds have been reserved or set aside for the payment thereof, and unless (except as otherwise specified in writing by
Standard & Poor’s and Moody’s) the Rating Condition shall have been satisfied; or 
  
 (i) the failure, on any Measurement Date, to cause the Class A/B Overcollateralization Ratio to be equal to or greater than 100.0%. 
  
 If either the Issuer or the Co-Issuer shall obtain actual knowledge that a
Default or an Event of Default has occurred and is continuing, the Issuer or the Co-Issuer, as applicable, shall promptly notify the Trustee, the Collateral Manager, the Noteholders, the Preferred Share Paying Agent, the Hedge Counterparty and each
Rating Agency in writing of such Default or Event of Default. 
  
 Section 5.2. Acceleration of Maturity; Rescission and Annulment 
  
 (a) If an Event of Default occurs and is continuing (other than an Event of Default specified in Section 5.1(f) or 5.1(g)), with the consent of a Majority of the Controlling Class, the Trustee may and, at the
direction of a Majority of the Controlling Class, the Trustee shall, declare the principal of all of the Notes to be immediately due and payable and reduce the unfunded Commitments with respect to the Class A-1 Notes to zero, and upon any such
declaration such principal, together with all accrued and unpaid interest and the Commitment Fee thereon, and other amounts payable hereunder, shall become immediately due and payable. Notwithstanding the preceding sentence, if an Event of Default
specified in Section 5.1(a) or 5.1(b) occurs and is continuing solely with respect to a default in the payment of any principal of or interest on Notes of a Class other than the Controlling Class, neither the Trustee nor the Holders of such
non-Controlling Class shall have the right to declare such principal and other amounts to be immediately due and payable. If an Event of Default specified in Section 5.1(f) or 5.1(g) occurs, all unpaid principal, together with all accrued and
unpaid interest and the Commitment Fee thereon, of all the Notes, and other amounts payable hereunder, shall automatically become due and payable and the unfunded Commitments shall be automatically reduced to zero, in each case without any
declaration or other act on the part of the Trustee or any Noteholder. 
  

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 (b) At any time after such a declaration of acceleration of maturity has been made and before a judgment
or decree for payment of the Money due has been obtained by the Trustee as hereinafter provided in this Section 5, a Majority of the Controlling Class, by written notice to the Co-Issuers and the Trustee, may rescind and annul such declaration
and its consequences if: 
  
 (i) the Issuer has
paid or deposited with the Trustee a sum sufficient to pay: 
  
 (A) all overdue installments of principal of and interest and the Commitment Fee on the Notes, 
  
 (B) interest upon the Class C Deferred Interest at the applicable Note Interest Rate, interest upon the Class D Deferred Interest at the
applicable Note Interest Rate, interest upon the Class E Deferred Interest at the applicable Note Interest Rate and, to the extent that payment of such interest is lawful, upon Defaulted Interest at the applicable Note Interest Rate, 
  
 (C) any accrued and unpaid amounts (including termination
payments, if any) payable by the Issuer pursuant to the Hedge Agreements, and 
  
 (D) all unpaid taxes and administrative expenses and other sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel;

  
 (ii) the Trustee has determined that all
Events of Default, other than the nonpayment of the principal of or interest or the Commitment Fee on the Notes that have become due solely by such acceleration, have been cured and a Majority of the Controlling Class by written notice to the
Trustee has agreed with such determination or waived such Default or Event of Default as provided in Section 5.14; and 
  
 (iii) the Hedge Agreements in effect at the time of a declaration of an acceleration shall remain in effect until liquidation of the
Collateral has begun and such declaration is no longer capable of being rescinded or annulled. 
  
 At any such time as the Trustee shall rescind and annul such declaration and its consequences, the Trustee shall preserve the Collateral in accordance with the provisions of Section 5.5; provided, that, if
such preservation of the Collateral is rescinded pursuant to Section 5.5, the Notes may be accelerated pursuant to Section 5.2(a), notwithstanding any previous rescission and annulment of a declaration of acceleration pursuant to this
Section 5.2(b). 
  
 No such rescission and annulment shall
affect any subsequent Default or impair any right consequent thereon. 
  
 Section 5.3. Collection of Indebtedness and Suits for Enforcement by Trustee 
  
 The Co-Issuers covenant (or, in the case of Class E Notes, the Issuer covenants) that if a Default shall occur in respect of the payment of any principal
of or interest on or the Commitment Fee on any Class A Note or Class B Note, the payment of principal of or interest on any Class C Note, Class D Note or Class E Note (but with respect to interest, only after the 

  

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Class A Notes, and the Class B Notes and, as applicable, the Class C Notes, the Class D Notes and the Class E Notes, and all interest accrued thereon have
been paid in full and the Aggregate Undrawn Amount under the Class A-1 Notes has been reduced to zero), as applicable, the Co-Issuers (or, in the case of Class E Notes, the Issuer) will upon demand of the Trustee or any affected Noteholder, pay to
the Trustee, for the benefit of the Holder of such Note, the whole amount, if any, then due and payable on such Note for principal and interest and the Commitment Fee with interest upon the overdue principal and the Commitment Fee and, to the extent
that payments of such interest shall be legally enforceable, upon overdue installments of interest at the applicable Note Interest Rate and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee and such Noteholder and their respective agents and counsel. 
  
 If the Issuer or the Co-Issuer fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as
trustee of an express trust, may institute a Proceeding for the collection of the sums so due and unpaid, and may, and shall, upon the direction by a Majority of the Controlling Class, prosecute such Proceeding to judgment or final decree, and may
enforce the same against the Co-Issuers or any other obligor upon the Notes and collect the Monies adjudged or decreed to be payable in the manner provided by law out of the Collateral. 
  
 If an Event of Default occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights
and the rights of the Secured Parties by such appropriate Proceedings as the Trustee shall deem most effectual (if no direction by a Majority of the Controlling Class is received by the Trustee) or as the Trustee may be directed by a Majority of the
Controlling Class, to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy or legal or
equitable right vested in the Trustee by this Indenture or by law. 
  
 In case there shall be pending Proceedings relative to the Issuer or the Co-Issuer or any other obligor upon the Notes under the Bankruptcy Code or any other applicable bankruptcy, insolvency or other similar law, or in case a receiver,
assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator or similar official shall have been appointed for or taken possession of the Issuer, the Co-Issuer or their respective property or such other obligor or its property, or
in case of any other comparable Proceedings relative to the Issuer, the Co-Issuer or other obligor upon the Notes, or the creditors or property of the Issuer, the Co-Issuer or such other obligor, the Trustee, regardless of whether the principal of
any Notes shall then be due and payable as therein expressed or by declaration or otherwise and regardless of whether the Trustee shall have made any demand pursuant to the provisions of this Section 5.3, shall be entitled and empowered, by
intervention in such Proceedings or otherwise: 
  
 (a) to file and
prove a claim or claims for the whole amount of principal and interest and the Commitment Fee owing and unpaid in respect of the Notes upon direction by a Majority of the Controlling Class and to file such other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any claim for reasonable compensation to the Trustee and each predecessor Trustee, and their respective agents, attorneys 

  

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and counsel, and for reimbursement of all expenses and liabilities incurred, and all advances made, by the Trustee and each predecessor Trustee) and of the
Noteholders allowed in any Proceedings relative to the Issuer, the Co-Issuer or other obligor upon the Notes and the Hedge Agreements or to the creditors or property of the Issuer, the Co-Issuer or such other obligor; 
  
 (b) unless prohibited by applicable law and regulations, to vote on behalf of
the Holders of the Notes, upon the direction of such Holders, in any election of a trustee or a standby trustee in arrangement, reorganization, liquidation or other bankruptcy or insolvency Proceedings or person performing similar functions in
comparable Proceedings; and 
  
 (c) to collect and receive any
Monies or other property payable to or deliverable on any such claims, and to distribute all amounts received with respect to the claims of the Noteholders and of the Trustee on behalf of the Noteholders and the Trustee; and any trustee, receiver or
liquidator, custodian or other similar official is hereby authorized by each of the Noteholders to make payments to the Trustee, and, in the event that the Trustee shall consent to the making of payments directly to the Noteholders, to pay to the
Trustee such amounts as shall be sufficient to cover reasonable compensation to the Trustee, each predecessor Trustee and their respective agents, attorneys and counsel, and all other reasonable expenses and liabilities incurred, and all advances
made, by the Trustee and each predecessor Trustee except as a result of negligence or bad faith. 
  
 Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or vote for or accept or adopt on behalf of any Noteholder,
any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Noteholder in any such Proceeding except, as aforesaid, to
vote for the election of a trustee in bankruptcy or similar person. 
  
 All rights of action and of asserting claims under this Indenture, or under any of the Notes, may be enforced by the Trustee without the possession of any of the Notes or the production thereof in any trial or other Proceedings relative
thereto, and any action or Proceedings instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment, subject to the payment of the reasonable expenses, disbursements and compensation of the
Trustee, each predecessor trustee and their respective agents and attorneys and counsel, shall be for the benefit of the Secured Parties and payable to the Secured Parties in accordance with the Priority of Payments. 
  
 In any Proceedings brought by the Trustee on behalf of the Holders, the
Trustee shall be held to represent, subject to Section 6.17, all the Secured Parties. 
  
 Notwithstanding anything in this Section 5.3 to the contrary, the Trustee may not sell or liquidate the Collateral or institute Proceedings in furtherance thereof pursuant to this Section 5.3 except in
accordance with Section 5.5(a). 
  
 Section 5.4.
Remedies 
  
 (a) If an Event of Default shall have occurred
and be continuing, and the Notes have been declared due and payable and such declaration and its consequences have not been 

  

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rescinded and annulled, the Co-Issuers agree that the Trustee may after notice to the Noteholders, the Collateral Manager, the Hedge Counterparty, the
Preferred Share Paying Agent and each Rating Agency, and shall, upon direction by a Majority of the Controlling Class, to the extent permitted by applicable law, exercise one or more of the following rights, privileges and remedies: 
  
 (i) institute Proceedings for the collection of all amounts
then payable on the Notes or otherwise payable under this Indenture, whether by declaration or otherwise, enforce any judgment obtained, and collect from the Collateral any Monies adjudged due; 
  
 (ii) sell all or a portion of the Collateral or rights of
interest therein at one or more public or private sales called and conducted in any manner permitted by law and in accordance with Section 5.17; 
  
 (iii) institute Proceedings from time to time for the complete or partial foreclosure of this Indenture with respect to the Collateral;

  
 (iv) exercise any remedies of a secured party
under the UCC and take any other appropriate action to protect and enforce the rights and remedies of the Secured Parties hereunder; and 
  
 (v) exercise any other rights and remedies that may be available at law or in equity; 
  
 provided, that the Trustee may not sell or liquidate the Collateral or institute
Proceedings in furtherance thereof pursuant to this Section 5.4 except in accordance with Section 5.5(a). 
  
 The Trustee may, but need not, obtain and rely upon an opinion of an Independent investment banking firm of national reputation as to the feasibility of
any action proposed to be taken in accordance with this Section 5.4 and as to the sufficiency of the proceeds and other amounts receivable with respect to the Collateral to make the required payments of principal of and interest and the
Commitment Fee on the Notes, which opinion shall be conclusive evidence as to such feasibility or sufficiency. 
  
 (b) If an Event of Default as described in Section 5.1(e) shall have occurred and be continuing, the Trustee may, and at the request of the Holders
of not less than 25% of the Aggregate Outstanding Principal Amount of the Controlling Class or the Hedge Counterparty shall, institute a Proceeding solely to compel performance of the covenant or agreement or to cure the representation or warranty,
the breach of which gave rise to the Event of Default under such Section, and enforce any equitable decree or order arising from such proceeding. 
  
 (c) Upon any sale, whether made under the power of sale hereby given or by virtue of judicial proceedings, any Noteholder or Noteholders may bid for and
purchase the Collateral or any part thereof and, upon compliance with the terms of sale, may hold, retain, possess or dispose of such property in its or their own absolute right without accountability. 
  
 Upon any sale, whether made under the power of sale hereby given or by virtue
of judicial proceedings, the receipt of the Trustee, or of the Officer making a sale under judicial 

  

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proceedings, shall be a sufficient discharge to the purchaser or purchasers at any sale for its or their purchase Money, and such purchaser or purchasers
shall not be obliged to see to the application thereof. 
  
 Any
such sale, whether under any power of sale hereby given or by virtue of judicial proceedings, shall bind the Co-Issuers, the Trustee, the Hedge Counterparty and the Noteholders, shall operate to divest all right, title and interest whatsoever,
either at law or in equity, of each of them in and to the property sold, and shall be a perpetual bar, both at law and in equity, against each of them and their successors and assigns, and against any and all Persons claiming through or under them.

  
 (d) Notwithstanding any other provision of this Indenture, the
Trustee may not, prior to the date which is one year and one day, or if longer the applicable preference period then in effect, after the payment in full of all Notes, institute against, or join any other Person in instituting against, the Issuer or
the Co-Issuer any bankruptcy, reorganization, arrangement, insolvency, moratorium or liquidation proceedings, or other proceedings under federal or state bankruptcy or similar laws or the laws of any jurisdiction. Nothing in this Section 5.4
shall preclude, or be deemed to stop, the Trustee (i) from taking any action prior to the expiration of the aforementioned one year and one day period, or if longer the applicable preference period then in effect, in (A) any case or
proceeding voluntarily filed or commenced by the Issuer or the Co-Issuer or (B) any involuntary insolvency proceeding filed or commenced by a Person other than the Trustee or (ii) from commencing against the Issuer or the Co-Issuer or any
of its properties any legal action which is not a bankruptcy, reorganization, arrangement, insolvency, moratorium, liquidation or similar proceeding. 
  
 Section 5.5. Preservation of Collateral 
  
 (a) If an Event of Default shall have occurred and be continuing when any Class of Notes is Outstanding (and the Commitment Period Termination Date has
not occurred), the Trustee shall retain the Collateral securing the Notes intact, collect and cause the collection of the proceeds thereof and make and apply all payments and deposits and maintain all accounts in respect of the Collateral securing
the Notes in accordance with the Priority of Payments and the provisions of Sections 10, 12 and 13 unless: 
  
 (i) the Trustee determines that the anticipated proceeds of a sale or liquidation of the Collateral (after deducting the reasonable
expenses of such sale or liquidation) would be sufficient to discharge in full the amounts then due and unpaid on the Notes for principal, interest (including Class C Deferred Interest, Class D Deferred Interest, Class E Deferred Interest, Defaulted
Interest and interest on Defaulted Interest, if any), Commitment Fee due and unpaid administrative expenses as limited by clause (2) of Section 11.1(a)(i) and any accrued and unpaid Hedge Payment Amounts payable by the Issuer pursuant to
the Hedge Agreements, including termination payments (assuming, for this purpose, that each Hedge Agreement has been terminated by reason of an event of default or termination with respect to the Issuer); or 
  

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 (ii) if the Holders of at least 66-2/3% in Aggregate Outstanding Principal Amount of each
Class of Notes voting as a separate Class direct, subject to the provisions hereof, the sale and liquidation of the Collateral. 
  
 The Trustee shall give written notice of the retention of the Collateral to the Issuer, with a copy to the Co-Issuer, the Hedge Counterparty and the
Collateral Manager. So long as such Event of Default is continuing, any such retention pursuant to this Section 5.5(a) may be rescinded at any time when the conditions specified in clause (i) or (ii) exist. 
  
 (b) Nothing contained in Section 5.5(a) shall be construed to require
the Trustee to preserve the Collateral securing the Notes if prohibited by applicable law. 
  
 (c) In determining whether the condition specified in Section 5.5(a)(i) exists, (i) the Trustee shall obtain bid prices with respect to each security contained in the Collateral from two nationally
recognized dealers, as specified by the Collateral Manager in writing, which are Independent from each other and the Collateral Manager and its Affiliates, at the time making a market in such securities and shall compute the anticipated proceeds of
sale or liquidation on the basis of the lower of such bid prices for each such security and (ii) such condition will be deemed not to exist if the Holders of at least 66-2/3% in Aggregate Outstanding Principal Amount of the Controlling Class
give notice to the Trustee to the effect that the Trustee has not followed the procedures set forth in this Indenture in making the relevant determinations required pursuant to Section 5.5(a)(i). For the purposes of making the determinations
required pursuant to Section 5.5(a)(i), the Trustee shall apply the standards set forth in Section 9.1(b). In addition, for the purposes of determining issues relating to the execution of a sale or liquidation of the Pledged Securities and
the execution of a sale or other liquidation thereof in connection with a determination whether the condition specified in Section 5.5(a)(i) exists, the Trustee may retain and rely on an opinion of an Independent investment banking firm of
national reputation. 
  
 The Trustee shall deliver to the
Noteholders, the Collateral Manager, the Hedge Counterparty and the Co-Issuers a report stating the results of any determination required pursuant to Section 5.5(a)(i) no later than 10 days after making such determination. The Trustee shall
make the determinations required by Section 5.5(a)(i) within 30 days after an Event of Default and at the request of a Majority of the Controlling Class at any time during which the Trustee retains the Collateral pursuant to
Section 5.5(a)(i). In the case of each calculation made by the Trustee pursuant to Section 5.5(a)(i), the Trustee shall obtain a letter of an Independent certified public accountant confirming the accuracy of the computations of the
Trustee and certifying their conformity to the requirements of this Indenture. In determining whether the Holders of the requisite Aggregate Outstanding Principal Amount of any Class of Notes have given any direction or notice or have agreed
pursuant to Section 5.5(a), any Holder of a Note of a Class who is also a Holder of Notes of another Class or any Affiliate of any such Holder shall be counted as a Holder of each such Note for all purposes. 
  
 (d) If an Event of Default shall have occurred and be continuing at a time
when no Note is Outstanding (and the Commitment Period Termination Date has occurred), the Trustee shall retain the Collateral securing the Notes intact, collect and cause the collection of the proceeds thereof and make and apply all payments and
deposits and maintain all accounts in respect of the Collateral and the Notes in accordance with the Priority of Payments and the 

  

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provisions of Section 10 and Section 12 unless a Majority-in-Interest of Preferred Shareholders direct the sale and liquidation of the Collateral.

  
 Section 5.6. Trustee May Enforce Claims Without
Possession of Notes. 
  
 All rights of action and claims under
this Indenture or the Notes may be prosecuted and enforced by the Trustee without the possession of any of the Notes or the production thereof in any Proceeding relating thereto, and any such Proceeding instituted by the Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment shall be applied as set forth in Section 5.7. 
  
 Section 5.7. Application of Money Collected 
  
 Any Money collected by the Trustee with respect to the Notes pursuant to this Section 5 and any Money that may then be held or thereafter received by
the Trustee with respect to the Notes hereunder shall be applied subject to Section 13.1 and in accordance with the provisions of Section 11.1, at the date or dates fixed by the Trustee. 
  
 Section 5.8. Limitation on Suits 
  
 No Holder of any Note shall have any right to institute any Proceedings,
judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless: 
  
 (a) such Holder has previously given to the Trustee written notice of an Event of Default; 
  
 (b) except as otherwise provided in Section 5.9, the Holders of at least 25% in Aggregate Outstanding Principal Amount
of the Controlling Class shall have made written request to the Trustee to institute Proceedings in respect of such Event of Default in its own name as Trustee hereunder and such Holder or Holders have offered to the Trustee reasonable indemnity
against the costs, expenses and liabilities to be incurred in compliance with such request; 
  
 (c) the Trustee for 30 days after its receipt of such notice, request and offer of indemnity has failed to institute any such Proceeding; and 
  
 (d) no direction inconsistent with such written request has been given to the Trustee during such 30-day period by a
Majority of the Controlling Class; 
  
 it being understood and
intended that no one or more Holders of Notes shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other Holders of Notes or to obtain or to
seek to obtain priority or preference over any other Holders of the Notes or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all the Holders of Notes of the same Class subject
to and in accordance with Section 13.1 and the Priority of Payments. 
  

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 If the Trustee shall receive conflicting or inconsistent requests and indemnity from two or more groups
of Holders of the Controlling Class, each representing less than a Majority of the Controlling Class, the Trustee shall follow the instructions of the group representing the higher percentage of interest in the Controlling Class, notwithstanding any
other provisions of this Indenture. 
  
 Section 5.9.
Unconditional Rights of Noteholders to Receive Principal, Interest and the Commitment Fee 
  
 Notwithstanding any other provision in this Indenture (other than Section 2.6(i)), the Holder of any Note shall have the right, which is absolute and
unconditional, to receive payment of the principal of and interest and the Commitment Fee on such Note as such principal and interest and the Commitment Fee become due and payable in accordance with Section 13.1 and the Priority of Payments
and, subject to the provisions of Section 5.8, to institute proceedings for the enforcement of any such payment, and such right shall not be impaired without the consent of such Holder. 
  
 Section 5.10. Restoration of Rights and Remedies 
  
 If the Trustee or any Noteholder has instituted any Proceeding to enforce any
right or remedy under this Indenture and such Proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Noteholder, then and in every such case the Co-Issuers, the Trustee and the
Noteholder shall, subject to any determination in such Proceeding, be restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies of the Secured Parties shall continue as though no such Proceeding
had been instituted. 
  
 Section 5.11. Rights and Remedies
Cumulative 
  
 No right or remedy herein conferred upon or
reserved to the Trustee or to the Noteholders or Hedge Counterparty is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and
remedy given hereunder or now or hereafter existing by law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right
or remedy. 
  
 Section 5.12. Delay or Omission Not
Waiver 
  
 No delay or omission of the Trustee or of any
Noteholder or Hedge Counterparty to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by
this Section 5 or by law to the Trustee or to the Noteholders or Hedge Counterparty may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Noteholders or Hedge Counterparty, as the case may be.

  

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 Section 5.13. Control by Controlling Class 
  
 Notwithstanding any other provision of this Indenture (but subject to the
proviso in the definition of “Outstanding” in Section 1.1(a)), a Majority of the Controlling Class shall have the right to cause the institution of and direct the time, method and place of conducting any Proceeding for any remedy
available to the Trustee or for exercising any trust, right, remedy or power conferred on the Trustee; provided, that: 
  
 (a) such direction shall not conflict with any rule of law or with this Indenture; 
  
 (b) the Trustee may take any other action deemed proper by the Trustee that is not inconsistent with such direction;
provided, that, subject to Section 6.1, the Trustee need not take any action that it determines might involve it in liability (unless the Trustee has received satisfactory indemnity against such liability as set forth below); 

 
 (c) the Trustee shall have been provided with indemnity reasonably
satisfactory to it; and 
  
 (d) any direction to the Trustee to
undertake a Sale of the Collateral shall be made only pursuant to, and in accordance with, Sections 5.4 and 5.5. 
  
 Section 5.14. Waiver of Past Defaults 
  
 Prior to the time a judgment or decree for payment of the Money due has been obtained by the Trustee, as provided in this Section 5, a Majority of
the Controlling Class may on behalf of the Holders of all the Notes, acting with the consent of the Hedge Counterparty, waive any past Default and its consequences, except a Default: 
  
 (a) in the payment of the principal of any Note or in the payment of interest (including Defaulted Interest and interest on
Defaulted Interest, if any) or the Commitment Fee on the Class A Notes or Class B Notes or, after the Class A Notes and Class B Notes have been paid in full, on the Class C Notes, or, after the Class C Notes have been paid in full, on the
Class D Notes or, after the Class D Notes have been paid in full, on the Class E Notes (including Class C Deferred Interest, Class D Deferred Interest, Class E Deferred Interest, Defaulted Interest and interest on Defaulted Interest, if any); or

  
 (b) in respect of a covenant or provision hereof that under
Section 8.2 cannot be modified or amended without the waiver or consent of the Holder of each Outstanding Note affected thereby; or 
  
 (c) Arising under Section 5.1(f) or 5.1(g). 
  
 In the case of any such waiver, (i) the Co-Issuers, the Trustee and the Holders of the Notes shall be restored to their former positions and rights
hereunder, respectively, but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereto and (ii) the Trustee shall promptly give written notice of any such waiver to the Collateral Manager, the
Preferred Share Paying Agent and each Holder of Notes. The Rating Agencies shall be promptly notified in writing by the Issuer of any such waiver. 
  

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 Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall
be deemed to have been cured for every purpose of this Indenture, but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereto. 
  
 Section 5.15. Undertaking for Costs 
  
 All parties to this Indenture agree, and each Holder of any Note by its acceptance thereof shall be deemed to have agreed,
that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken, or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good
faith of the claims or defenses made by such party litigant; but the provisions of this Section 5.15 shall not apply to any suit instituted by the Trustee or any Noteholder, or group of Noteholders, holding in the aggregate more than 10% in
Aggregate Outstanding Principal Amount of the Controlling Class, or to any suit instituted by any Noteholder for the enforcement of the payment of the principal of or interest or the Commitment Fee on any Note on or after the Stated Maturity
expressed in such Note (or, in the case of redemption, on or after the applicable Redemption Date). 
  
 Section 5.16. Waiver of Stay or Extension Laws 
  
 Each of the Co-Issuers covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force (including filing a voluntary petition under Chapter 11 of the Bankruptcy Code and by the voluntary commencement
of a proceeding or the filing of a petition seeking winding up, liquidation, reorganization or other relief under any bankruptcy, insolvency, receivership or similar law now or hereafter in effect), which may affect the covenants, the performance of
or any remedies under this Indenture; and each of the Co-Issuers (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any
power herein Granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. 
  
 Section 5.17. Sale of Collateral 
  
 (a) The power to effect any sale (a “Sale”) of any portion of the Collateral pursuant to Sections 5.4 and 5.5 shall not be exhausted by any one
or more Sales as to any portion of such Collateral remaining unsold, but shall continue unimpaired until the entire Collateral shall have been sold or all amounts secured by the Collateral shall have been paid. The Trustee may upon notice to the
Noteholders and the Hedge Counterparty, and shall, upon direction of a Majority of the Controlling Class from time to time postpone any Sale by announcement made at the time and place of such Sale; provided that, if the Sale is rescheduled
for a date more than 10 Business Days after the date of the determination by the Trustee pursuant to Section 5.5, such Sale shall not occur unless and until the Trustee has again made the determination required by Section 5.5. 

  

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The Trustee hereby expressly waives its rights to any amount fixed by law as compensation for any Sale; provided, that the Trustee shall be authorized
to deduct the reasonable costs, charges and expenses incurred by it in connection with such Sale from the proceeds thereof notwithstanding the provisions of Section 6.7. 
  
 (b) The Trustee may bid for and acquire any portion of the Collateral in connection with a public Sale thereof, by crediting
all or part of the net proceeds of such Sale after deducting the reasonable costs, charges and expenses incurred by the Trustee in connection with such Sale notwithstanding the provisions of Section 6.7. The Notes need not be produced in order
to complete any such Sale, or in order for the net proceeds of such Sale to be credited against amounts owing on the Notes. The Trustee may hold, lease, operate, manage or otherwise deal with any properly so acquired in any manner permitted by law
in accordance with this Indenture. 
  
 (c) If any portion of the
Collateral consists of securities not registered under the Securities Act (“Unregistered Securities”), the Trustee may seek an Opinion of Counsel, or, if no such Opinion of Counsel can be obtained and with the consent of a Majority of the
Controlling Class, seek a no-action position from the United States Securities and Exchange Commission or any other relevant federal or state regulatory authorities, regarding the legality of a public or private sale of such Unregistered Securities
(the costs of which, in each case, shall be reimbursable to the Trustee pursuant to Section 6.8). 
  
 (d) The Trustee shall execute and deliver an appropriate instrument of conveyance transferring its interest in any portion of the Collateral in connection
with a sale thereof. In addition, the Trustee is hereby irrevocably appointed the agent and attorney-in-fact of the Issuer to transfer and convey its interest in any portion of the Collateral in connection with a sale thereof, and to take all action
necessary to effect such sale. No purchaser or transferee at such a sale shall be bound to ascertain the Trustee’s authority, to inquire into the satisfaction of any conditions precedent or see to the application of any Monies. 
  
 Section 5.18. Action on the Notes 
  
 The Trustee’s right to seek and recover judgment on the Notes or under
this Indenture shall not be affected by the seeking or obtaining of or application for any other relief under or with respect to this Indenture. Neither the lien of this Indenture nor any rights or remedies of the Secured Parties shall be impaired
by the recovery of any judgment by the Trustee against the Issuer or by the levy of any execution under such judgment upon any portion of the Collateral or upon any of the assets of the Issuer or the Co-Issuer. 
  

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 ARTICLE VI 
  

THE TRUSTEE 
  
 Section 6.1. Certain Duties and Responsibilities 
  
 (a) Except during the continuance of an Event of Default: 
  
 (i) the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture, and no implied
covenants or obligations shall be read into this Indenture against the Trustee; and 
  
 (ii) in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of
the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; provided, that, in the case of any such certificates or opinions which by any provision hereof are
specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they substantially conform to the requirements of this Indenture and shall promptly, but in any event within
three Business Days in the case of an Officer’s certificate furnished by the Collateral Manager, notify the party delivering the same if such certificate or opinion does not conform. In the case of an Officer’s Certificate to be provided
by the Collateral Manager or the Issuer, if a corrected form shall not have been delivered to the Trustee within 15 days after such notice from the Trustee, the Trustee shall so notify the Noteholders. 
  
 (b) In case an Event of Default known to the Trustee has occurred and is
continuing, the Trustee shall, prior to the receipt of directions, if any, from a Majority of the Controlling Class, exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in its exercise as
a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs. 
  
 (c) No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act
or its own willful misconduct, except that: 
  
 (i) this subclause (c) shall not be construed to limit the effect of subclause (a) of this Section 6.1; 
  
 (ii) the Trustee shall not be liable for any error of judgment made in good faith by a Trust Officer, unless it shall be proven that the
Trustee was negligent in ascertaining the pertinent facts; 
  
 (iii) the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Issuer, the Co-Issuer, the Collateral Manager in accordance
with this Indenture, or a Majority (or such other percentage as may be required by the terms hereof) of the Controlling Class (or other Class if required or permitted by the terms hereof) relating to the time, method and place of conducting any
Proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture; 
  
 (iv) no provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability
in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers contemplated hereunder, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured to it (if the amount of 

  

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such funds or risk or liability does not exceed the amount payable to the Trustee pursuant to Section 11.1(a)(i)(2) net of the amounts specified in
Section 6.8(a)(i), the Trustee shall be deemed to be reasonably assured of such repayment) unless such risk or liability relates to performance of its ordinary non-remedial services, including under Section 5, under this Indenture; and

  
 (v) the Trustee shall not be liable to the
Noteholders for any action taken or omitted by it in good faith at the direction of the Issuer, the Co-Issuer, the Collateral Manager or the Holders of the Notes under the circumstances in which such direction is required or permitted by the terms
of this Indenture. 
  
 (d) For all purposes under this Indenture,
the Trustee shall not be deemed to have notice or knowledge of any Event of Default described in Section 5.1(d), 5.1(f), 5.1(g) or 5.1(i) or any Default described in Section 5.1(e) or 5.1(h) unless a Trust Officer assigned to and working
in the Corporate Trust Office has actual knowledge thereof or unless written notice of any event which is in fact such an Event of Default or such a Default, as the case may be, is received by the Trustee at the Corporate Trust Office. For purposes
of determining the Trustee’s responsibility and liability hereunder, whenever reference is made in this Indenture to such an Event of Default or such a Default, as the case may be, such reference shall be construed to refer only to such an
Event of Default or such a Default, as the case may be, of which the Trustee is deemed to have notice as described in this Section 6.1(d). 
  
 (e) Whether or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording
protection to the Trustee shall be subject to the provisions of this Section 6. 
  
 (f) The Trustee shall, upon reasonable (but no less than one Business Day’s) prior written notice to the Trustee, permit any representative of a Holder of a Note, during the Trustee’s normal business hours,
to examine all books of account, records, reports and other papers of the Trustee (other than items protected by attorney-client privilege) relating to the Notes, to make copies and extracts therefrom (the reasonable out-of-pocket expenses incurred
in making any such copies or extracts to be reimbursed to the Trustee by such Holder) and to discuss the Trustee’s actions, as such actions relate to the Trustee’s duties with respect to the Notes, with the Trustee’s Officers and
employees responsible for carrying out the Trustee’s duties with respect to the Notes. 
  
 (g) With respect to the security interests created hereunder, the Trustee acts as a fiduciary for the Noteholders only, and serves as a collateral agent for the Collateral Manager and the Hedge Counterparty.

  
 Section 6.2. Notice of Default 
  
 Promptly (and in no event later than two Business Days) after the occurrence
of any Default known to the Trustee or after any declaration of acceleration has been made or delivered to the Trustee pursuant to Section 5.2, the Trustee shall mail to the Collateral Manager, the Preferred Share Paying Agent, the Hedge
Counterparty, each Rating Agency (for so long as any Class of Notes is Outstanding) and to all Holders of Notes, as their names and addresses 

  

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appear on the Note Register, notice of all Defaults hereunder known to the Trustee, unless such Default shall have been cured or waived. 
  
 Section 6.3. Certain Rights of Trustee 
  
 Except as otherwise provided in Sections 6.1, 8.1 and 8.2: 
  
 (a) the Trustee may rely and shall be protected in acting or refraining from
acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note or other paper or document reasonably believed by it to be genuine and to have been signed or presented by the
proper party or parties; 
  
 (b) any request or direction of the
Issuer or the Co-Issuer mentioned herein shall be sufficiently evidenced by an Issuer Request or Issuer Order, as the case may be; 
  
 (c) whenever in the administration of this Indenture the Trustee shall (i) deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, rely upon an Officer’s certificate or (ii) be required to determine the value
of any Collateral or funds hereunder or the cash flows projected to be received therefrom, the Trustee may, in the absence of bad faith on its part, rely on reports of nationally recognized accountants, investment bankers or other Persons qualified
to provide the information required to make such determination, including nationally recognized dealers in securities of the type being valued and securities quotation services; 
  
 (d) as a condition to the taking or omitting of any action by it hereunder, the Trustee may consult with counsel and the
advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken or omitted by it hereunder in good faith and in reliance thereon; 
  
 (e) the Trustee shall be under no obligation to exercise or to honor any of
the rights or powers vested in it by this Indenture at the request or direction of any of the Noteholders pursuant to this Indenture, unless such Noteholders shall have offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities which might reasonably be incurred by it in compliance with such request or direction; 
  
 (f) the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, note or other paper documents, but the Trustee, in its discretion, may and, upon the written direction of a Majority of any Class or any Rating Agency, shall make such further
inquiry or investigation into such facts or matters as it may see fit or as it shall be directed, and the Trustee shall be entitled, on reasonable prior notice to the Co-Issuers and the Collateral Manager, to examine the books and records of the
Co-Issuers and the Collateral Manager relating to the Notes and the Collateral, personally or by agent or attorney during normal business hours; provided, that the Trustee shall, and shall cause its agents to, hold in confidence all such
information, except (i) to the extent disclosure may be required by law by any regulatory authority or by the documents delivered pursuant to or in connection with this 

  

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Indenture and the Notes and (ii) to the extent that the Trustee, in its sole judgment, may determine that such disclosure is consistent with its
obligations hereunder; 
  
 (g) the Trustee may execute any of the
trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys; provided, that the Trustee shall not be responsible for any misconduct or negligence on the part of any agent (other than any
Affiliate of the Trustee) appointed and supervised, or attorney appointed, with due care by it hereunder; 
  
 (h) the Trustee shall not be liable for any action it takes or omits to take in good faith that it reasonably and, after the occurrence and during the
continuance of an Event of Default, prudently believes to be authorized or within its rights or powers hereunder; 
  
 (i) to the extent permitted by law, the Trustee shall not be required to give any bond or surety in respect of the execution of this Indenture or
otherwise; and 
  
 (j) the permissive right of the Trustee to take
or refrain from taking any actions enumerated in this Indenture shall not be construed as a duty. 
  
 Section 6.4. Authenticating Agents 
  
 Upon the request of the Co-Issuers, the Trustee shall, and if the Trustee so chooses the Trustee may, appoint one or more Authenticating Agents with power
to act on its behalf and subject to its direction in the authentication of Notes in connection with issuance, transfers and exchanges under Sections 2.4, 2.5 and 8.5, as fully to all intents and purposes as though each such Authenticating Agent had
been expressly authorized by those Sections to authenticate such Notes. For all purposes of this Indenture, the authentication of Notes by an Authenticating Agent pursuant to this Section 6.4 shall be deemed to be the authentication of Notes
“by the Trustee.” 
  
 Any entity into which any
Authenticating Agent may be merged or converted or with which it may be consolidated, or any entity resulting from any merger, consolidation or conversion to which any Authenticating Agent shall be a party, or any entity succeeding to the corporate
trust business of any Authenticating Agent, shall be the successor of such Authenticating Agent hereunder, without the execution or filing of any further act on the part of the parties hereto or such Authenticating Agent or such successor entity.

  
 Any Authenticating Agent may at any time resign by giving
written notice of resignation to the Trustee and the Co-Issuers. The Trustee may at any time terminate the agency of any Authenticating Agent by giving written notice of termination to such Authenticating Agent and the Co-Issuers. Upon receiving
such notice of resignation or upon such a termination, the Trustee shall promptly appoint a successor Authenticating Agent and shall give written notice of such appointment to the Co-Issuers. 
  
 The Trustee agrees to pay to each Authenticating Agent from time to time
reasonable compensation for its services and reimbursement for its reasonable expenses relating thereto and the Trustee shall be entitled to be reimbursed for such payments, subject to Section 6.8. The provisions of Sections 2.8, 6.5 and 6.6
shall be applicable to any Authenticating Agent. 
  

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 Section 6.5. Not Responsible for Recitals or Issuance of Notes 
  
 The recitals contained herein and in the Notes, other than the Certificate of
Authentication thereon, shall be taken as the statements of the Co-Issuers, and the Trustee assumes no responsibility for their correctness. The Trustee makes no representation as to the validity or sufficiency of this Indenture (except as may be
made with respect to the validity of the Trustee’s obligations hereunder), of the Collateral or of the Notes. The Trustee shall not be accountable for the use or application by the Co-Issuers of the Notes or the proceeds thereof or any Money
paid to the Co-Issuers pursuant to the provisions hereof. 
  
 Section 6.6. May Hold Notes 
  
 The
Trustee, any Paying Agent, the Note Registrar or any other agent of the Co-Issuers, in its individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal with the Co-Issuers or any of their Affiliates with the same
rights it would have if it were not Trustee, Paying Agent, Note Registrar or such other agent. 
  
 Section 6.7. Money Held in Trust 
  
 Money held by the Trustee hereunder shall be held in trust to the extent required herein. The Trustee shall be under no liability for interest on any Money received by it hereunder except as otherwise agreed upon with
the Issuer and except to the extent of income or other gain on investments which are deposits in or certificates of deposit of the Trustee in its commercial capacity and income or other gain actually received by the Trustee on Eligible Investments.

  
 Section 6.8. Compensation and Reimbursement

  
 (a) The Issuer agrees: 
  
 (i) to pay the Trustee on each Distribution Date reasonable
compensation for all services, including custodial services, rendered by it hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust); 
  
 (ii) except as otherwise expressly provided herein, to
reimburse the Trustee (subject to any written agreement between the Issuer and the Trustee) in a timely manner upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any provision
of this Indenture (or any other agreement associated herewith, whether acting as Trustee or in any other capacity) or in the enforcement of any provision hereof and expenses related to the maintenance and administration of the Collateral (including
securities transaction charges and the reasonable compensation and expenses and disbursements of its agents and legal counsel and of any accounting firm or investment banking firm employed by the Trustee pursuant to Section 5.4, 5.5, 5.17 or
10.11, except any such expense, disbursement or advance as may be attributable to its negligence, willful misconduct or bad faith, but only to the extent any such securities transaction charges have not been waived during a Due Period 

  

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due to the Trustee’s receipt of a payment from a financial institution with respect to certain Eligible Investments, as specified by the Collateral
Manager); 
  
 (iii) to indemnify the Trustee and
its Officers, directors, employees and agents for, and to hold them harmless against, any loss, liability or expense incurred without negligence, willful misconduct or bad faith on their part, arising out of or in connection with the acceptance or
administration of this trust, including the costs and expenses (including reasonable counsel fees) of defending themselves against any claim or liability in connection with the exercise or performance of any of their powers or duties hereunder (or
under any other agreement associated herewith, whether acting as Trustee or in any other capacity); and 
  
 (iv) to pay the Trustee reasonable additional compensation together with its expenses (including reasonable counsel fees) for any
collection action taken pursuant to Section 6.14. 
  
 (b) The
Issuer may remit payment for such fees and expenses to the Trustee or, in the absence thereof, the Trustee may from time to time deduct payment of its fees and expenses hereunder from Moneys on deposit in the Payment Account for the Notes pursuant
to Section 11.1. 
  
 (c) The Trustee hereby agrees not to
cause the filing of a petition in bankruptcy against the Issuer for the non-payment to the Trustee of any amounts provided by this Section 6.8 until at least one year and one day, or if longer the applicable preference period then in effect,
after the payment in full of all Notes issued under this Indenture. 
  
 (d) The amounts payable to the Trustee pursuant to Sections 6.8(a) (other than amounts received by the Trustee from financial institutions under clause (a)(ii) above) shall not, except as provided by Section 11.1(a)(i)(21) or
Section 11.1(a)(ii)(13), exceed on any Distribution Date the Dollar limitation described in Section 11.1(a)(i)(2) for such Distribution Date and the Trustee shall have a lien ranking senior to that of the Noteholders upon all property and
funds held or collected as part of the Collateral to secure payment of amounts payable to the Trustee under this Section 6.8 not to exceed such amount with respect to any Distribution Date; provided, that (i) the Trustee shall not
institute any proceeding for enforcement of such lien except in connection with an action pursuant to Section 5.3 or 5.4 for the enforcement of the lien of this Indenture for the benefit of the Secured Parties and (ii) the Trustee may only
enforce such a lien in conjunction with the enforcement of the rights of the Secured Parties in the manner set forth in Section 5.4. 
  
 The Trustee shall, subject to the Priority of Payments, receive amounts pursuant to this Section 6.8 and Sections 11.1(a)(i) and (ii) only to
the extent that the payment thereof will not result in an Event of Default and the failure to pay such amounts to the Trustee will not, by itself, constitute an Event of Default. Subject to Section 6.10, the Trustee shall continue to serve as
Trustee under this Indenture notwithstanding the fact that the Trustee shall not have received amounts due it hereunder and hereby agrees not to cause the filing of a petition in bankruptcy against the Issuer or the Co-Issuer for the nonpayment to
the Trustee of any amounts provided by this Section 6.8 until at least one year and one day, or if longer, the applicable preference period 

  

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then in effect, after the payment in full of all Notes issued under this Indenture. No direction by a Majority of the Controlling Class shall affect the
right of the Trustee to collect amounts owed to it under this Indenture. 
  
 The indemnifications in favor of the Trustee in this Section 6.8 shall survive any resignation or removal of any Person acting as Trustee (to the extent of any indemnified liabilities, costs, expenses and other
amounts arising or incurred prior to, or arising out of actions or omissions occurring prior to, such resignation or removal). 
  
 Section 6.9. Corporate Trustee Required; Eligibility 
  

There shall at all times be a Trustee hereunder which shall be a corporation or trust company organized and doing business under the laws of the United
States or of any State thereof, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least U.S.$200,000,000, subject to supervision or examination by federal or state authority, having a rating
of at least “BBB+” by Standard & Poor’s, at least “Baa1” by Moody’s and at least “BBB+” by Fitch and a short-term debt rating of “F1” by Fitch and having an office within the United States.
If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section 6.9, the combined capital and surplus of
such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this
Section 6.9, it shall resign immediately in the manner and with the effect hereinafter specified in this Section 6. 
  
 Section 6.10. Resignation and Removal; Appointment of Successor 
  
 (a) No resignation or removal of the Trustee and no appointment of a successor trustee pursuant to this Section 6 shall
become effective until the acceptance of appointment by the successor trustee under Section 6.11. 
  
 (b) The Trustee may resign at any time by giving at least 30 days’ prior written notice thereof to the Co-Issuers, the Noteholders, the Hedge
Counterparty, the Collateral Manager, the Preferred Share Paying Agent and each Rating Agency. Upon receiving such notice of resignation, the Co-Issuers shall promptly appoint a successor trustee or trustees by written instrument, in duplicate,
executed by an Authorized Officer of each Co-Issuer, one copy of which shall be delivered to the Trustee so resigning and one copy to the successor trustee or trustees, together with a copy to each Noteholder; provided, that such successor
trustee shall be appointed only upon the written consent of a Majority of each Class or, at any time when an Event of Default shall have occurred and be continuing, by a Majority of the Controlling Class; and provided, further, that
such successor trustee shall be appointed only upon the satisfaction of the requirements set forth in Section 6.10(f). If no successor trustee shall have been appointed and an instrument of acceptance by a successor trustee shall not have been
delivered to the Trustee within 30 days after the giving of such notice of resignation, the resigning Trustee, any Holder of a Note, on behalf of itself and all others similarly situated, may petition any court of competent jurisdiction for the
appointment of a successor trustee. 
  

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 (c) Subject to Section 6.10(a), the Trustee may be removed at any time by Act of a Majority of each
Class or at any time when an Event of Default shall have occurred and be continuing by Act of a Majority of the Controlling Class, delivered to the Trustee and to the Co-Issuers. 
  
 (d) If at any time: 
  
 (i) the Trustee shall cease to be eligible under Section 6.9 and shall fail to resign after written request therefor by the
Co-Issuers or by any Holder; or 
  
 (ii) the
Trustee shall become incapable of acting or shall be adjudged as bankrupt or insolvent or a receiver or liquidator of the Trustee or of its property shall be appointed or any public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or liquidation; 
  
 then, in any such case (subject to Section 6.10(a)), (A) the Co-Issuers, by Issuer Order, may remove the Trustee or (B) subject to Section 5.15, any Holder may, on behalf of itself and all others
similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor trustee. 
  
 (e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of the Trustee for any reason, the
Co-Issuers, by Issuer Order, shall promptly appoint a successor trustee. If the Co-Issuers shall fail to appoint a successor trustee within 60 days after such resignation, removal or incapability or the occurrence of such vacancy, a successor
trustee may be appointed by Act of a Majority of the Controlling Class delivered to the Co-Issuers and the retiring Trustee. The successor trustee so appointed shall, forthwith upon its acceptance of such appointment, become the successor trustee
and supersede any successor trustee proposed by the Co-Issuers. If no successor trustee shall have been so appointed by the Co-Issuers or such Holders and shall have accepted appointment in the manner hereinafter provided, subject to
Section 5.15, any Holder may, on behalf of itself and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor trustee. 
  
 (f) Any successor trustee appointed pursuant to this Section 6.10 shall: 
  
 (i) be a bank; 
  
 (ii) have at all times an aggregate capital, surplus and
undivided profits of at least $200,000,000 (provided, that if such trustee publishes reports of condition at least annually, pursuant to law or to the requirements of its supervising or examining authority, for purposes of such requirement, the
aggregate capital, surplus and undivided profits of such trustee shall be deemed to be its aggregate capital, surplus and undivided profits as set forth in its most recent report of condition so published); 
  
 (iii) not be affiliated (as such term is defined in Rule 405
under the Securities Act) with the Issuer or with any person involved with the organization or operation of the Issuer; 
  

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 (iv) not offer or provide credit or credit enhancement to the Issuer; 
  
 (v) enter into an Indenture (or agree to be bound by the
terms of this Indenture) that provides that such successor trustee shall not resign until either (A) the Pledged Securities have been completely liquidated and the proceeds of such liquidation have been distributed to the holders of the Notes
or (B) a successor trustee meeting the requirements of such Indenture has been designated and has accepted such trusteeship; and 
  
 (vi) meet each of the requirements set forth in Section 6.9 hereof. 
  
 (g) The Co-Issuers shall give prompt notice of each resignation and each removal of the Trustee and each appointment of a
successor trustee by mailing written notice of such event by first class mail, postage prepaid, to the Collateral Manager, the Hedge Counterparty, each Rating Agency and the Holders as their names and addresses appear in the Note Register. Each
notice shall include the name of the successor trustee and the address of its Corporate Trust Office. If the Co-Issuers fail to mail such notice within ten days after acceptance of appointment by the successor trustee, the successor trustee shall
cause such notice to be given at the expense of the Co-Issuers. 
  
 Section 6.11. Acceptance of Appointment by Successor 
  
 Every successor trustee appointed hereunder shall execute, acknowledge and deliver to the Co-Issuers and the retiring Trustee an instrument accepting such appointment. Upon delivery of the required instruments, the
resignation or removal of the retiring Trustee shall become effective and such successor trustee, without any other act, deed or conveyance, shall become vested with all the rights, powers, trusts, duties and obligations of the retiring Trustee;
but, on request of the Issuer, the Co-Issuer or a Majority of any Class or the successor trustee, such retiring Trustee shall, upon payment of its charges, fees, indemnities and expenses then unpaid, execute and deliver an instrument transferring to
such successor trustee all the rights, powers and trusts of the retiring Trustee, and shall duly assign, transfer and deliver to such successor trustee all property and Money held by such retiring Trustee hereunder, subject nevertheless to its lien,
if any, provided for in Section 6.8(d). Upon request of any such successor trustee, the Co-Issuers shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor trustee all such rights, powers
and trusts. 
  
 No successor trustee shall accept its appointment
unless (a) at the time of such acceptance such successor shall be qualified and eligible under this Section 6 and (b) the Rating Condition with respect to the appointment of such successor trustee shall have been satisfied. No
appointment of a successor trustee shall become effective if a Majority of the Controlling Class objects to such appointment; and no appointment of a successor trustee shall become effective until the date ten days after notice of such appointment
has been given to each Noteholder. 
  
 Section 6.12.
Merger, Conversion, Consolidation or Succession to Business of Trustee 
  
 Any Person into which the Trustee may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any
Person succeeding to all or substantially all of the 

  

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corporate trust business of the Trustee, shall be the successor of the Trustee hereunder; provided such Person shall be otherwise qualified and eligible
under this Section 6, without the execution or filing of any paper or any further act on the part of any of the parties hereto. In case any of the Notes have been authenticated, but not delivered, by the Trustee then in office, any successor by
merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Notes so authenticated with the same effect as if such successor trustee had itself authenticated such Notes. 
  
 Section 6.13. Co-Trustees 
  
 At any time or times, for the purpose of meeting the legal requirements of
any jurisdiction in which any part of the Collateral as the case may be, may at the time be located, the Co-Issuers and the Trustee shall have power to appoint one or more Persons to act as co-trustee, jointly with the Trustee of all or any part of
the Collateral with the power to file such proofs of claim and take such other actions pursuant to Section 5.6 and to make such claims and enforce such rights of action on behalf of the Holders of the Notes subject to the other provisions of this
Section 6.13. 
  
 The Co-Issuers shall join with the Trustee in
the execution, delivery and performance of all instruments and agreements necessary or proper to appoint a co-trustee. If the Co-Issuers do not join in such appointment within 15 days after the receipt by them of a request to do so, the Trustee
shall have power to make such appointment. 
  
 Should any written
instrument from the Co-Issuers be required by any co-trustee so appointed for more fully confirming to such co-trustee such property, title, right or power, any and all such instruments shall, on request, be executed, acknowledged and delivered by
the Co-Issuers. The Co-Issuers agree to pay (subject to the Priority of Payments) for any reasonable fees and expenses in connection with such appointment. 
  
 Every co-trustee shall, to the extent permitted by law, but to such extent only, be appointed subject to the following terms: 
  
 (a) the Notes shall be authenticated and delivered and all rights, powers,
duties and obligations hereunder in respect of the custody of securities, Cash and other personal property held by, or required to be deposited or pledged with, the Trustee hereunder shall be exercised solely by the Trustee; 
  
 (b) the rights, powers, duties and obligations hereby conferred or imposed
upon the Trustee in respect of any property covered by the appointment of a co-trustee shall be conferred or imposed upon and exercised or performed by the Trustee or by the Trustee and such co-trustee jointly, as shall be provided in the instrument
appointing such co-trustee, except to the extent that under any law of any jurisdiction in which any particular act is to be performed, the Trustee shall be incompetent or unqualified to perform such act, in which event such rights, powers, duties
and obligations shall be exercised and performed by a co-trustee; 
  
 (c) the Trustee at any time, by an instrument in writing executed by it, with the concurrence of the Co-Issuers evidenced by an Issuer Order, may accept the resignation of or remove any co-trustee appointed under this Section 6.13, and in
case an Event of Default has 

  

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occurred and is continuing, the Trustee shall have the power to accept the resignation of, or remove, any such co-trustee without the concurrence of the
Co-Issuers. A successor to any co-trustee so resigned or removed may be appointed in the manner provided in this Section 6.13; 
  
 (d) no co-trustee hereunder shall be personally liable by reason of any act or omission of the Trustee or any other co-trustee hereunder; 
  
 (e) the Trustee shall not be liable by reason of any act or omission of a
co-trustee; 
  
 (f) any Act of Noteholders delivered to the
Trustee shall be deemed to have been delivered to each co-trustee; and 
  
 (g) any co-trustee appointed pursuant to this Section 6.13 shall: 
  
 (i) be a bank; 
  
 (ii) have at all times an aggregate capital, surplus and undivided profits of at least $200,000,000, subject to supervision or examination
by federal or state authority, having a rating of at least “BBB+” by Standard & Poor’s, at least “Baa1” by Moody’s and at least “BBB+” by Fitch and a short-term debt rating of “F1” by Fitch
and having an office within the United States (provided, that if such trustee publishes reports of condition at least annually, pursuant to law or to the requirements of its supervising or examining authority, for purposes of such
requirement, the aggregate capital, surplus and undivided profits of such trustee shall be deemed to be its aggregate capital, surplus and undivided profits as set forth in its most recent report of condition so published); 
  
 (iii) not be affiliated (as such term is defined in Rule 405
under the Securities Act) with the Issuer or with any person involved with the organization or operation of the Issuer; 
  
 (iv) not offer or provide credit or credit enhancement to the Issuer; and 
  
 (v) enter into an Indenture (or agree to be bound by the terms of this Indenture) that provides that the
trustee shall not resign until either (A) the Pledged Securities have been completely liquidated and the proceeds of such liquidation have been distributed to the holders of the Notes or (B) a successor trustee meeting the requirements of
such Indenture has been designated and has accepted such trusteeship. 
  
 Section 6.14. Certain Duties Related to Delayed Payment of Proceeds 
  
 In the event that the Trustee shall not have received a payment with respect to any Pledged Security on its Due Date (unless otherwise directed by the Collateral Manager in connection with any Pledged Security with
respect to which there was a default in payment during the preceding Due Period as to which the Collateral Manager is taking action hereunder or under the Collateral Management Agreement or directing the Trustee to take action hereunder),
(a) the Trustee shall promptly notify the Issuer and the Collateral Manager in writing and (b) unless within three Business Days (or the end of the applicable grace period for such payment, if longer) after such notice (i) such
payment shall have been received by the Trustee or 

  

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(ii) the Issuer, in its absolute discretion (but only to the extent permitted by Section 10.2(c)), shall have made provision for such payment
satisfactory to the Trustee in accordance with Section 10.2(c), the Trustee shall request the issuer of such Pledged Security, the trustee under the related Underlying Instrument or paying agent designated by either of them, as the case may be,
to make such payment as soon as practicable after such request but in no event later than three Business Days after the date of such request. In the event that such payment is not made within such time period, the Trustee, subject to the provisions
of Section 6.1(c)(iv), shall take such action as the Collateral Manager shall direct in writing. Any such action shall be without prejudice to any right to claim a Default under this Indenture. In the event that the Issuer or the Collateral
Manager requests a release of a Pledged Security and/or delivers a new Collateral Debt Security in connection with any such action under the Collateral Management Agreement, such release and/or delivery shall be subject to Section 10.10 and
Section 12, as the case may be. Notwithstanding any other provision hereof, the Trustee shall deliver to the Issuer or its designee any payment with respect to any Pledged Security received after the Due Date thereof to the extent the Issuer
previously made provisions for such payment satisfactory to the Trustee in accordance with Section 10.2(c) and this Section 6.14 and such payment shall not be deemed part of the Collateral. 
  
 Section 6.15. Representations and Warranties of the Bank

  
 (a) Organization. The Bank has been duly organized and is
validly existing as a national banking association organized under the laws of the United States and has the power to conduct its business and affairs as a trustee. 
  
 (b) Authorization; Binding Obligations. The Bank has the corporate power and authority to perform the duties and obligations
of Trustee, Note Registrar and Transfer Agent under this Indenture. The Bank has taken all necessary corporate action to authorize the execution, delivery and performance of this Indenture, and all of the documents required to be executed by the
Bank pursuant hereto. This Indenture has been duly executed and delivered by the Bank. Upon execution and delivery by the Co-Issuers, this Indenture will constitute the legal, valid and binding obligation of the Bank enforceable in accordance with
its terms. 
  
 (c) Eligibility. The Bank is eligible under
Section 6.9 to serve as Trustee hereunder. 
  
 (d) No
Conflict. Neither the execution, delivery and performance of this Indenture, nor the consummation of the transactions contemplated by this Indenture, (i) is prohibited by, or requires the Bank to obtain any consent, authorization, approval or
registration under, any law, statute, rule, regulation, judgment, order, writ, injunction or decree that is binding upon the Bank or any of its properties or assets or (ii) will violate any provision of, result in any default or acceleration of
any obligations under, result in the creation or imposition of any lien pursuant to or require any consent under, any agreement to which the Bank is a party or by which it or any of its property is bound. 
  
 (e) No Proceedings. There are no proceedings pending, or to the best
knowledge of the Bank, threatened against the Bank before any federal, state or other governmental agency, authority, administrator or regulatory body, arbitrator, court or other tribunal, foreign or 

  

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domestic, that could have a material adverse effect on the Collateral or any action taken or to be taken by the Bank under this Indenture. 
  
 Section 6.16. Exchange Offers 
  
 The Collateral Manager may, on behalf of the Issuer, instruct the Trustee
pursuant to an Issuer Order to, and the Trustee shall, take any of the following actions with respect to a Collateral Debt Security or Equity Security as to which an exchange offer has been made: (i) exchange such instrument for other
securities or a mixture of securities and other consideration pursuant to such exchange offer (and in making a determination whether or not to exchange any security, none of the restrictions set forth in Section 12 shall be applicable); and
(ii) give consent, grant waiver, vote or exercise any or all other rights or remedies with respect to any such Collateral Debt Security or Equity Security. 
  

Section 6.17. Fiduciary for Noteholders Only; Agent For Other Secured Parties 
  
 With respect to the security interests created hereunder, the pledge of any portion of the Collateral to the Trustee is to
the Trustee as representative of the Noteholders and agent for other Secured Parties. In furtherance of the foregoing, the possession by the Trustee of any portion of the Collateral and the endorsement to or registration in the name of the Trustee
of any portion of the Collateral (including without limitation as Entitlement Holder of the Custodian Account) are all undertaken by the Trustee in its capacity as representative of the Noteholders and as agent for the other Secured Parties. The
Trustee shall not by reason of this Indenture be deemed to be acting as fiduciary for the Collateral Manager or the Hedge Counterparty; provided, that the foregoing shall not limit any of the express obligations of the Trustee under this
Indenture. 
  
 ARTICLE VII 
  
 COVENANTS 
  
 Section 7.1. Payment of Principal, Interest and the Commitment Fee 
  
 The Co-Issuers will duly and punctually pay all principal, interest
(including Class C Deferred Interest, Class D Deferred Interest, Class E Deferred Interest, Defaulted Interest and interest thereon, if any), Commitment Fee and other amounts owing hereunder or under any other agreement or instrument to which the
Issuer or the Co-Issuer is a party in accordance with the terms of the Notes, this Indenture and such other agreements or instruments. The Trustee hereby provides notice to each Noteholder that the failure of such Noteholder to provide the Trustee
with appropriate tax certifications may result in amounts being withheld from payments to such Noteholder under this Indenture; provided, that amounts withheld pursuant to applicable tax laws shall be considered as having been paid by the
Co-Issuers as provided above. Amounts properly withheld under the Code or other applicable law by any Person from a payment to any Noteholder of principal and/or interest or the Commitment Fee shall be considered as having been paid by the
Co-Issuers to such Noteholder for all purposes of this Indenture. 
  

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 Section 7.2. Maintenance of Office or Agency 
  
 The Co-Issuers hereby appoint the Trustee as a Paying Agent for the payment
of principal of and interest and the Commitment Fee on the Notes and the Co-Issuers hereby appoint the Trustee (New York Office), WSS Window, 4 New York Plaza, Ground Floor, New York, New York 10004, Attention: Worldwide Securities Services
—TABERNA PREFERRED FUNDING IV, LTD., as the Co-Issuers’ agent where notices and demands to or upon the Issuer in respect of the Notes or this Indenture may be served and where Notes and Preferred Shares may be surrendered for registration
of transfer or exchange. 
  
 The Co-Issuers may at any time and
from time to time vary or terminate the appointment of any such agent or appoint any additional agents for any or all of such purposes; provided, that (i) the Co-Issuers will maintain in the Borough of Manhattan, The City of New York, an
office or agency where notices and demands to or upon the Co-Issuers in respect of such Notes and this Indenture may be served, (ii) no Paying Agent shall be appointed in a jurisdiction which would subject payments on the Notes to withholding
tax and (iii) so long as any Class of Notes is listed on the Irish Stock Exchange and the rules of such exchange so require, the Co-Issuers will maintain in Ireland a Paying Agent and an office or agency where notices and demands to or upon the
Co-Issuers in respect of such Notes and this Indenture may be served and where such Notes may be surrendered for registration of transfer or exchange. The Co-Issuers hereby appoint, for so long as any Class of Notes is listed on the Irish Stock
Exchange, JPMorgan Bank (Ireland) PLC (the “Irish Paying Agent”) as Paying Agent in Ireland with respect to such Notes for the payment of principal and interest on such Notes and as the Co-Issuers’ agent where notices and demands to
or upon the Co-Issuers in respect of such Notes or this Indenture may be served. In the event that the Irish Paying Agent is replaced at any time during such period, notice of the appointment of any replacement will be given to the Company
Announcements Office of the Irish Stock Exchange as promptly as practicable after such appointment. The Co-Issuers shall at all times maintain a duplicate copy of the Note Register with respect to the Notes at the Corporate Trust Office. The
Co-Issuers shall give prompt written notice to the Trustee, each Rating Agency, the Preferred Shareholders and the Noteholders of the appointment or termination of any such agent and of the location and any change in the location of any such office
or agency. For so long as the Preferred Shares are listed on the Channel Islands Stock Exchange, and the rules of such exchange shall so require, the Issuer will maintain a listing agent with respect to such Preferred Shares in Jersey, Channel
Islands. 
  
 If at any time the Co-Issuers shall fail to maintain
any such required office or agency in the Borough of Manhattan, The City of New York or shall fail to furnish the Trustee with the address thereof, presentations and surrenders may be made (subject to the limitations described in the preceding
paragraph) at and notices and demands may be served on the Co-Issuers, and Notes may be presented and surrendered for payment to any Paying Agent at its main office, and the Co-Issuers hereby appoint the same as their agent to receive such
respective presentations, surrenders, notices and demands. 
  
 Section 7.3. Money for Payments to be Held in Trust 
  
 All payments of amounts due and payable with respect to any Notes and Preferred Shares that are to be made from amounts withdrawn from the Payment Account shall be made on 

  

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behalf of the Co-Issuers by the Trustee or a Paying Agent with respect to payments on the Notes in accordance with this Indenture or to the Preferred Share
Paying Agent for distribution on the Preferred Shares in accordance with the Preferred Share Paying Agency Agreement. 
  
 When the Co-Issuers shall have a Paying Agent that is not also a Note Registrar, it shall furnish, or cause the Note Registrar to furnish, no later than
the fifth calendar day after each Record Date a list, if necessary, in such form as such Paying Agent may reasonably request, of the names and addresses of the Holders and of the certificate numbers of individual Notes held by each such Holder.

  
 Whenever the Co-Issuers shall have a Paying Agent other than
the Trustee, it shall, on or before the Business Day next preceding each Distribution Date or Redemption Date, as the case may be, direct the Trustee to deposit on such Distribution Date or Redemption Date, as the case may be, with such Paying
Agent, if necessary, an aggregate sum sufficient to pay the amounts then becoming due (to the extent funds are then available for such purpose in the Payment Account or Principal Collection Account, as the case may be), such sum to be held in trust
for the benefit of the Persons entitled thereto and (unless such Paying Agent is the Trustee) the Co-Issuers shall promptly notify the Trustee of its action or failure so to act. Any Moneys deposited with a Paying Agent (other than the Trustee) in
excess of an amount sufficient to pay the amounts then becoming due on the Notes with respect to which such deposit was made shall be paid over by such Paying Agent to the Trustee for application in accordance with Section 10. 
  
 The initial paying agent shall be as set forth in Section 7.2. Any
additional or successor paying agents shall be appointed by Issuer Order with written notice thereof to the Trustee; provided, that so long as any Class of Notes is rated by the Rating Agencies and with respect to any additional or successor
paying agent for the Notes, (i) either (a) the Paying Agent for the Notes has a rating of not less than “AA-” and not less than “A-1+” by Standard & Poor’s and a rating of not less than “AA-” and
not less than “F1+” by Fitch or (ii) the Rating Condition with respect to the appointment of such Paying Agent shall have been satisfied. In the event that (i) such successor paying agent ceases to have a rating of at least
“AA-” and of “A-l+” by Standard & Poor’s and a rating of at least “AA-” and of “F1+” by Fitch or (ii) the Rating Condition with respect to the appointment of such Paying Agent shall not have
been satisfied, the Co-Issuers shall promptly remove such Paying Agent and appoint a successor paying agent. The Co-Issuers shall not appoint any Paying Agent (other than an initial paying agent) that is not, at the time of such appointment, a
depository institution or trust company subject to supervision and examination by federal and/or state and/or national banking authorities. The Co-Issuers shall cause each Paying Agent other than the Trustee to execute and deliver to the Trustee an
instrument in which such Paying Agent shall agree with the Trustee (and if the Trustee acts as Paying Agent, it hereby so agrees), subject to the provisions of this Section 7.3, that such Paying Agent will: 
  
 (a) allocate all sums received for payment to the Holders of Notes for which
it acts as Paying Agent on each Distribution Date and Redemption Date among such Holders in the proportion specified in the instructions set forth in the applicable Note Valuation Report or Redemption Date Statement or as otherwise provided herein,
in each case to the extent permitted by applicable law and provide the Depository (if applicable) with payment factors and such other 

  

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information as the Depository may reasonably require to facilitate the allocation of funds to the Holders of Notes; 
  
 (b) hold all sums held by it for the payment of amounts due with respect to
the Notes in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided and pay such sums to such Persons as herein provided; 
  
 (c) if such Paying Agent is not the Trustee, immediately resign as a Paying
Agent and forthwith pay to the Trustee all sums held by it in trust for the payment of Notes if at any time it ceases to meet the standards set forth above required to be met by a Paying Agent at the time of its appointment; 
  
 (d) if such Paying Agent is not the Trustee, immediately give the Trustee
notice of any Default by the Co-Issuers (or any other obligor upon the Notes) in the making of any payment required to be made; and 
  
 (e) if such Paying Agent is not the Trustee at any time during the continuance of any such Default, upon the written request of the Trustee, forthwith pay
to the Trustee all sums so held in trust by such Paying Agent. 
  
 The Co-Issuers may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Issuer Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the
Co-Issuers or such Paying Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Co-Issuers or such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent
shall be released from all further liability with respect to such Money. 
  
 Except as otherwise required by applicable law, any Money deposited with the Trustee or any Paying Agent in trust for the payment of the principal of or interest or the Commitment Fee on any Note and remaining
unclaimed for two years after such principal or interest or the Commitment Fee has become due and payable shall be paid to the Co-Issuers on Issuer Request; and the Holder of such Note shall thereafter, as an unsecured general creditor, look only to
the Issuer or the Co-Issuer for payment of such amounts and all liability of the Trustee or such Paying Agent with respect to such trust Money (but only to the extent of the amounts so paid to the Co-Issuers) shall thereupon cease. The Trustee or
such Paying Agent, before being required to make any such release of payment, may, but shall not be required to, adopt and employ, at the expense of the Co-Issuers, any reasonable means of notification of such release of payment, including mailing
notice of such release to Holders whose Notes have been called but have not been surrendered for redemption or whose right to or interest in Monies due and payable but not claimed is determinable from the records of any Paying Agent, at the last
address of record of each such Holder. 
  
 Section 7.4.
Existence of the Co-Issuers 
  
 The Issuer shall maintain
in full force and effect its existence and rights as an exempted company incorporated and registered under the laws of the Cayman Islands and the 

  

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Co-Issuer shall maintain in full force and effect its existence and rights as a corporation incorporated under the laws of the State of Delaware, and each of
the Co-Issuers shall obtain and preserve their qualification to do business in each jurisdiction in which such qualifications are or shall be necessary to protect the validity and enforceability of this Indenture, the Notes, the Combination Notes or
any of the Collateral. 
  
 The Issuer and the Co-Issuer shall
ensure that all corporate or other formalities regarding its existence (including holding regular board of directors’ and shareholders’, or other similar, meetings) or registrations are followed. Neither the Issuer nor the Co-Issuer shall
take any action, or conduct its affairs in any manner, that is likely to result in its separate existence being ignored or in its assets and liabilities being substantively consolidated with any other Person in a bankruptcy, reorganization or other
insolvency proceeding. Without limiting the foregoing, (a) the Issuer shall not have any subsidiaries other than the Co-Issuer and shall not have any employees except its directors and officers, (b) the Co-Issuer shall not have any
subsidiaries or employees and (c) neither the Issuer nor the Co-Issuer shall (i) conduct its business under any name other than its own, (ii) engage in any transaction with any shareholder that would constitute a conflict of interest
or (iii) pay dividends other than in accordance with the terms of this Indenture and the Preferred Share Paying Agency Agreement; provided, that the foregoing shall not prohibit the Issuer from entering into the transactions contemplated
by the Administration Agreement with the Administrator. 
  
 Section 7.5. Protection of Collateral 
  
 (a)
The Collateral Manager, on behalf of the Issuer, shall from time to time execute and deliver or cause to be executed and delivered all such supplements and amendments hereto and all such Financing Statements, continuation statements, instruments of
further assurance and other instruments, and shall take such other action as may be necessary or advisable or desirable to secure the rights and remedies of the Secured Parties hereunder and to: 
  
 (i) Grant more effectively all or any portion of the
Collateral; 
  
 (ii) maintain, preserve and
perfect the lien (and the first priority nature thereof) of this Indenture or to carry out more effectively the purposes hereof; 
  
 (iii) perfect, publish notice of or protect the validity of any Grant made or to be made by this Indenture (including any and all actions
necessary or desirable as a result of changes in law or regulations); 
  
 (iv) enforce any of the Pledged Securities or other instruments or property included in the Collateral; 
  
 (v) preserve and defend title to the Collateral and the rights therein of the Trustee and the Holders of the Notes against the claims of
all persons and parties; or 
  
 (vi) pay or cause
to be paid any and all taxes levied or assessed upon all or any part of the Collateral. 
  

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 The Issuer hereby authorizes the Trustee to file, without the signature of the Issuer where permitted by
law, Financing Statements describing as the collateral covered thereby “all of the Issuer’s personal property or assets” or words to that effect, notwithstanding that such wording may be broader in scope than the Collateral. The
Issuer hereby designates the Trustee its agent and attorney-in-fact to execute, pursuant to the written direction of the Issuer or the Collateral Manager, any Financing Statement, continuation statement or other instrument required pursuant to this
Section 7.5; provided, that such appointment shall not impose upon the Trustee any of the Issuer’s obligations under this Section 7.5. The Issuer agrees that a carbon, photographic, photostatic or other reproduction of this
Indenture or of a Financing Statement is sufficient as a Financing Statement. 
  
 Subject to Section 6.1(c)(iv) and Section 7.7, the Trustee shall, in accordance with written instructions of the Collateral Manager (i) upon a Collateral Debt Security becoming a Defaulted Security,
attempt to maximize the recovery value of such Defaulted Security by engaging in restructuring efforts, bringing enforcement proceedings and/or taking such other measures as may be deemed appropriate and (ii) approve or disapprove any waiver or
amendment of the terms of Collateral Debt Securities requested by the issuer thereof, in each case, to the extent that the Trustee has received advice of nationally recognized tax counsel experienced in such matters that such actions will not cause
the Issuer to be engaged in a U.S. trade or business for U.S. federal income tax purposes; provided, that, in performing (i) and (ii) above, the Trustee shall rely on the written instructions of the Collateral Manager and the
Trustee, with the consent of the Collateral Manager, may retain such advisors (including legal advisers and investment banking or asset management firms) selected by it (whose fees shall constitute Administrative Expenses payable by the Issuer
hereunder in accordance with the Priority of Payments; provided, further that, notwithstanding the provisions of this paragraph, but subject to Section 7.7, the Trustee shall follow any instructions provided by the Requisite Noteholders
to the Trustee with respect to actions contemplated by clauses (i) and (ii) above. For the purposes of the immediately preceding proviso, the term “Requisite Noteholders” shall mean a Majority of each Class of Notes, voting
separately by Class. 
  
 (b) The Trustee shall not (i) except
in accordance with Section 10.10(a), (b) or (c), as applicable, remove any portion of the Collateral that consists of Cash or is evidenced by an Instrument, certificate or other writing (A) from the jurisdiction in which it was held
at the date the most recent Opinion of Counsel was delivered pursuant to Section 7.6 (or from the jurisdiction in which it was held as described in the Opinion of Counsel delivered at the Closing Date pursuant to Section 3.1(c), if no
Opinion of Counsel has yet been delivered pursuant to Section 7.6) or (B) from the possession of the Person who held it on such date or (ii) cause or permit ownership or the pledge of any portion of the Collateral that consists of
book-entry securities to be recorded on the books of a Person (A) located in a different jurisdiction from the jurisdiction in which such ownership or pledge was recorded at such date or (B) other than the Person on whose books such
ownership or pledge was recorded at such date, unless the Trustee shall have first received an Opinion of Counsel to the effect that the lien and security interest created by this Indenture with respect to such property will continue to be
maintained after giving effect to such action or actions. 
  
 (c)
The Issuer shall pay or cause to be paid taxes, if any, levied on account of the beneficial ownership by the Issuer of any Pledged Securities that secure the Notes. 
  

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 (d) The Issuer shall enforce all of its material rights and remedies under the Collateral Management
Agreement, the Collateral Administration Agreement and the Administration Agreement. If any Holder of Class A-1 Notes shall at any time prior to the Commitment Period Termination Date fail to satisfy the Rating Criteria specified in the
Class A-1 Note Purchase Agreement, the Issuer will enforce its rights under the Class A-1 Note Purchase Agreement to cause such Holder to transfer its rights and obligations in respect of the Class A-1 Notes to a Person that satisfies
such Rating Criteria. The Issuer will not enter into any agreement amending, modifying or terminating the Collateral Administration Agreement or the Class A-1 Note Purchase Agreement without (i) 10 days’ prior notice to each Rating
Agency and the Hedge Counterparty, (ii) 10 days’ prior notice thereof to the Trustee, which notice shall specify the action proposed to be taken by the Issuer (and the Trustee shall promptly deliver a copy of such notice to each
Noteholder) and (iii) the Rating Condition shall have been satisfied with respect to such amendment, modification or termination. 
  
 (e) Without at least 30 days’ prior written notice to the Trustee and each Rating Agency, the Issuer shall not change its name, or the name under
which it does business, from the name shown on the signature pages hereto. 
  
 Section 7.6. Opinions as to Collateral 
  
 On or before December 31 in each calendar year, commencing in 2006, the Issuer shall furnish to the Trustee and each Rating Agency (with copies to the Hedge Counterparty) an Opinion of Counsel (which shall
include assumptions and qualifications substantially similar to those set forth in Exhibit E) stating that, in the opinion of such counsel, as of the date of such opinion, the lien and security interest created by this Indenture with respect to the
Collateral remains a valid and perfected first priority lien and describing the manner in which such security interest shall remain perfected. 
  
 Section 7.7. Performance of Obligations 
  
 (a) The Issuer (or the Trustee on behalf of the Issuer) may not enter into any amendment or waiver of or supplement to any Underlying Instrument included
in the Collateral without the prior consent of a Majority of the Controlling Class and the Hedge Counterparty and satisfaction of the Rating Condition; provided, that, notwithstanding anything in this Section 7.7(a) to the contrary, the
Issuer (or the Trustee on behalf of the Issuer) may enter into any amendment or waiver of or supplement to any such Underlying Instrument, with notice of such amendment to Standard & Poor’s and Fitch: 
  
 (i) if such amendment, supplement or waiver is required by
the provisions of any Underlying Instrument or by applicable law (other than pursuant to an Underlying Instrument), 
  
 (ii) if such amendment, supplement or waiver is necessary to cure any ambiguity, inconsistency or formal defect or omission in such
Underlying Instrument, 
  
 (iii) to the extent
expressly permitted or authorized by any amendment of or supplement to this Indenture entered into in accordance with Section 8.1 or 8.2 (but subject to the conditions therein specified), 
  

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 (iv) to make any other change deemed necessary by the Issuer or the Collateral Manager
(but only if, as of the date of any such proposed amendment, waiver or supplement occurring on or after the Ramp-Up Completion Date, the Overcollateralization Tests and the Collateral Quality Tests are satisfied), or 
  
 (v) to make any other change deemed necessary by the Issuer
or the Collateral Manager (but only if (A) such proposed amendment, waiver or supplement does not effect a Specified Change and (B) such change does not materially adversely affect the interests of the Noteholders in the Collateral as
determined by the Trustee and the Issuer in good faith). 
  
 (b)
The Co-Issuers may, with the prior written consent of a Majority of each Class and the Hedge Counterparty (which consent shall be deemed to have been given in the case of agreements entered into on or prior to the Closing Date), contract with other
Persons, including the Collateral Manager and the Bank, for the performance of actions and obligations to be performed by the Co-Issuers hereunder by such Persons and the performance of the actions and other obligations with respect to the
Collateral of the nature set forth in the Collateral Management Agreement by the Collateral Manager. Notwithstanding any such arrangement, the Co-Issuers shall remain liable for all such actions and obligations. In the event of such contract, the
performance of such actions and obligations by such Persons shall be deemed to be performance of such actions and obligations by the Co-Issuers; and the Co-Issuers will punctually perform, and use its best efforts to cause the Collateral Manager or
such other Person to perform, all of their obligations and agreements contained in the Collateral Management Agreement or such other agreement. 
  
 (c) The Issuer shall treat all acquisitions of Collateral Debt Securities as a “purchase” for tax, accounting and reporting purposes.

  
 Section 7.8. Negative Covenants 
  
 (a) The Issuer will not (and, with respect to clauses (ii) through
(viii), the Co-Issuer will not): 
  
 (i) sell,
assign, participate, transfer, exchange or otherwise dispose of, or pledge, mortgage, hypothecate or otherwise encumber (or permit such to occur or suffer such to exist), any part of the Collateral, except as expressly permitted by this Indenture;

  
 (ii) claim any credit on, make any deduction
from or dispute the enforceability of the payment of the principal, interest, Commitment Fee or any other amount payable in respect of the Notes (other than amounts required to be paid, deducted or withheld in accordance with any applicable law or
regulation of any governmental authority) or assert any claim against any present or future Noteholder by reason of the payment of any taxes levied or assessed upon any part of the Collateral; 
  
 (iii) (A) incur or assume or guarantee any
indebtedness, other than the Notes and this Indenture and the transactions contemplated hereby; or (B) issue any additional class of securities; 
  

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 (iv) (A) permit the validity or effectiveness of this Indenture or any Grant
hereunder to be impaired, or permit the lien of this Indenture to be amended, hypothecated, subordinated, terminated or discharged, or permit any Person to be released from any covenants or obligations with respect to this Indenture or the Notes,
except as may be expressly permitted hereby, (B) permit any lien, charge, adverse claim, security interest, mortgage or other encumbrance (other than the lien of this Indenture) to be created on or extend to or otherwise arise upon or burden
the Collateral or any part thereof, any interest therein or the proceeds thereof or (C) take any action that would permit the lien of this Indenture not to constitute a valid first priority perfected security interest in the Collateral (other
than in respect of any item of Collateral that has been released from the lien of this Indenture pursuant to Section 10.10); 
  
 (v) change its name in any manner unless it shall have given the Trustee, the Collateral Manager, the Hedge Counterparty and each Rating
Agency at least 60 days’ prior written notice thereof, shall have effected any necessary or appropriate filings of financing statements or amendments thereto and shall have delivered to the Trustee, the Hedge Counterparty and the Collateral
Manager an Opinion of Counsel of the type described in Section 7.6; 
  
 (vi) use any of the proceeds of the Notes issued hereunder (A) to extend “purpose credit” within the meaning given to such term in Regulation U or (B) to purchase or otherwise acquire any Margin
Stock; 
  
 (vii) amend the Collateral Management
Agreement except pursuant to Section 15; 
  
 (viii) dissolve or liquidate in whole or in part, except as permitted hereunder; or 
  
 (ix) amend or waive or permit the amendment or waiver of any non-petition or limited recourse provision contained in any Transaction
Document or any other document entered into by the Issuer in connection herewith, or enter into any agreement (except for sale and purchase agreements on customary terms) that does not contain non-petition or limited recourse provisions binding on
the other party thereto. 
  
 (b) Neither the Issuer nor the
Trustee shall sell, transfer, exchange or otherwise dispose of Collateral, or enter into or engage in any business with respect to any part of the Collateral except as expressly permitted by this Indenture and the Collateral Management Agreement.

  
 (c) The Co-Issuer will not invest any of its assets in
“securities” (as such term is defined in the Investment Company Act), and will keep all of its assets in Cash. 
  
 (d) For so long as any of the Co-Issuer Notes are Outstanding (and the Commitment Period Termination Date has not occurred), the Co-Issuer shall not
transfer, and the Issuer shall not permit the Co-Issuer to issue, any capital stock of the Co-Issuer to any Person other than the Issuer. For so long as any of the Co-Issuer Notes are Outstanding, the Issuer shall not transfer or otherwise dispose
of the capital stock of the Co-Issuer issued to it. 
  

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 (e) The Issuer shall not dispose of or acquire any Collateral Debt Security for the primary purpose of
recognizing gains or decreasing losses resulting from market value changes. 
  
 Section 7.9. Statement as to Compliance 
  
 On or before December 31 in each calendar year commencing in 2006, or immediately if there has been a Default in the fulfillment of an obligation under this Indenture, the Issuer shall deliver to the Trustee, the
Irish Paying Agent, the Hedge Counterparty, the Preferred Share Paying Agent and each Rating Agency and each Noteholder making a written request therefor an Officer’s certificate stating, as to each signer thereof, that: 
  
 (a) a review of the activities of the Issuer and of the Issuer’s
performance under this Indenture during the twelve-month period ending on December 31 of the previous year has been made under such Officer’s supervision; and 
  
 (b) to the best of such Officer’s knowledge, based on such review, the Issuer has fulfilled all of its obligations
under this Indenture throughout the period, or, if there has been a Default in the fulfillment of any such obligation, specifying each such Default known to such Officer and the nature and status thereof, including actions undertaken to remedy the
same. 
  
 Section 7.10. Co-Issuers May Consolidate, Etc.,
Only on Certain Terms 
  
 (a) The Issuer shall not consolidate
or merge with or into any other Person or transfer or convey all or substantially all of its assets to any Person, unless permitted by law and unless: 
  
 (i) the Issuer shall be the surviving entity, or the Person (if other than the Issuer) formed by such consolidation or into which the
Issuer is merged or to which all or substantially all of the assets of the Issuer are transferred or conveyed shall be an exempted company incorporated and existing under the laws of the Cayman Islands or such other jurisdiction outside the United
States as may be approved by a Majority of each Class of Notes and the Hedge Counterparty, and shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, the Hedge Counterparty and each Noteholder, the due
and punctual payment of the principal of and interest and the Commitment Fee on all Notes and the performance of every covenant of this Indenture and the Hedge Agreements on the part of the Issuer to be performed or observed, all as provided herein;

  
 (ii) each Rating Agency shall have received
written notification of such consolidation, merger, transfer or conveyance and the Rating Condition shall have been satisfied with respect to the consummation of such transaction; 
  
 (iii) if the Issuer is not the surviving entity, the Person formed by such consolidation or into which the
Issuer is merged or to which all or substantially all of the assets of the Issuer are transferred or conveyed shall have agreed with the Trustee (A) to observe the same legal requirements for the recognition of such formed or surviving entity
as a legal entity separate and apart from any of its Affiliates as are applicable to the Issuer with respect to its Affiliates and (B) not to consolidate or merge with or into any 

  

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other Person or transfer or convey the Collateral or all or substantially all of its assets to any other Person except in accordance with the provisions of
this Section 7.10; 
  
 (iv) if the Issuer is
not the surviving entity, the Person formed by such consolidation or into which the Issuer is merged or to which all or substantially all of the assets of the Issuer are transferred or conveyed shall have delivered to the Trustee and each Rating
Agency an Officer’s certificate and an Opinion of Counsel each stating that such Person shall be duly organized, validly existing and (if applicable) in good standing in the jurisdiction in which such Person is organized; that such Person has
sufficient power and authority to assume the obligations set forth in subclause (a)(i) above and to execute and deliver an indenture supplemental hereto for the purpose of assuming such obligations; that such Person has duly authorized the
execution, delivery and performance of an indenture supplemental hereto for the purpose of assuming such obligations and that such supplemental indenture is a valid, legal and binding obligation of such Person, enforceable in accordance with its
terms, subject only to bankruptcy, reorganization, insolvency, moratorium and other laws affecting the enforcement of creditors’ rights generally and to general principles of equity (regardless of whether such enforceability is considered in a
proceeding in equity or at law); that, immediately following the event that causes such Person to become the successor to the Issuer, (A) such Person has good and marketable title, free and clear of any lien, security interest or charge, other
than the lien and security interest of this Indenture, to the Collateral; (B) the Trustee continues to have a valid perfected first priority security interest in the Collateral securing all of the Notes; (C) such Person has received an
Opinion of Counsel to the effect that such Person will not be classified for U.S. federal income tax purposes as an association or publicly traded partnership taxable as a corporation; and (D) such other matters as the Trustee may reasonably
request; 
  
 (v) immediately after giving effect
to such transaction, no Default shall have occurred and be continuing; 
  
 (vi) the Issuer shall have delivered to the Trustee, the Hedge Counterparty and each Noteholder an Officer’s certificate and an Opinion of Counsel each stating that such consolidation, merger, transfer or
conveyance and such supplemental indenture comply with this Section 7, that all conditions precedent in this Section 7 relating to such transaction have been complied with and that no adverse tax consequences will result therefrom to the
Issuer, the Hedge Counterparty or any Noteholder; and 
  
 (vii) the Issuer shall have delivered to the Trustee an Opinion of Counsel stating that after giving effect to such transaction, neither Co-Issuer nor the Collateral will be required to register as an investment company under the Investment
Company Act. 
  
 (b) The Co-Issuer shall not consolidate or merge
with or into any other Person or transfer or convey all or substantially all of its assets to any Person, unless: 
  
 (i) the Co-Issuer shall be the surviving entity, or the Person (if other than the Co-Issuer) formed by such consolidation or into which
the Co-Issuer is merged or to 

  

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which all or substantially all of the assets of the Co-Issuer are transferred or conveyed shall expressly assume, by an indenture supplemental hereto,
executed and delivered to the Trustee, the due and punctual payment of the principal of and interest and the Commitment Fee on all Notes and the performance of every covenant of this Indenture on the part of the Co-Issuer to be performed or
observed, all as provided herein; 
  
 (ii) each
Rating Agency shall have received written notification of such consolidation, merger, transfer or conveyance and the Rating Condition shall have been satisfied with respect to the consummation of such transaction shall have consented to such
consolidation, merger, transfer or conveyance; 
  
 (iii) if the Co-Issuer is not the surviving entity, the Person formed by such consolidation or into which the Co-Issuer is merged or to which all or substantially all of the assets of the Co-Issuer are transferred or conveyed shall have
agreed with the Trustee (A) to observe the same legal requirements for the recognition of such formed or surviving entity as a legal entity separate and apart from any of its Affiliates as are applicable to the Co-Issuer with respect to its
Affiliates and (B) not to consolidate or merge with or into any other Person or transfer or convey all or substantially all of its assets to any other Person except in accordance with the provisions of this Section 7.10; 
  
 (iv) if the Co-Issuer is not the surviving entity, the
Person formed by such consolidation or into which the Co-Issuer is merged or to which all or substantially all of the assets of the Co-Issuer are transferred or conveyed shall have delivered to the Trustee and each Rating Agency an Officer’s
certificate and an Opinion of Counsel each stating that such Person shall be duly organized, validly existing and (if applicable) in good standing in the jurisdiction in which such Person is organized; that such Person has sufficient power and
authority to assume the obligations set forth in subclause (b)(i) above and to execute and deliver an indenture supplemental hereto for the purpose of assuming such obligations; that such Person has duly authorized the execution, delivery and
performance of an indenture supplemental hereto for the purpose of assuming such obligations and that such supplemental indenture is a valid, legal and binding obligation of such Person, enforceable in accordance with its terms, subject only to
bankruptcy, reorganization, insolvency, moratorium and other laws affecting the enforcement of creditors’ rights generally and to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or
at law); and such other matters as the Trustee may reasonably request; 
  
 (v) immediately after giving effect to such transaction, no Default shall have occurred and be continuing; 
  
 (vi) the Co-Issuer shall have delivered to the Trustee, the Hedge Counterparty and each Noteholder an Officer’s certificate and an
Opinion of Counsel each stating that such consolidation, merger, conveyance or transfer and such supplemental indenture comply with this Section 7 and that all conditions precedent in this Section 7 provided for relating to such
transaction have been complied with and that no adverse tax consequences will result therefrom to the Co-Issuer, the Hedge Counterparty or any Noteholder; 
  

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 (vii) the Co-Issuer shall have delivered to the Trustee an Opinion of Counsel stating
that after giving effect to such transaction, neither Co-Issuer will be required to register as an investment company under the Investment Company Act; and 
  
 (viii) after giving effect to such transaction, the outstanding stock of the Co-Issuer will not be beneficially owned by any Person other
than the Issuer. 
  
 Section 7.11. Successor Substituted

  
 Upon any consolidation or merger, or transfer or conveyance of
all or substantially all of the assets of the Issuer or the Co-Issuer, in accordance with Section 7.10, the Person formed by or surviving such consolidation or merger (if other than the Issuer or the Co-Issuer, as applicable) or the Person to which
such transfer or conveyance is made shall succeed to, and be substituted for, and may exercise every right and power of, and shall be bound by each obligation or covenant of, the Issuer or the Co-Issuer, as applicable, under this Indenture with the
same effect as if such Person had been named as the Issuer or the Co-Issuer, as applicable, herein. In the event of any such consolidation, merger, transfer or conveyance, the Person named as the “Issuer” or the “Co-Issuer” in
the first paragraph of this Indenture or any successor that shall theretofore have become such in the manner prescribed in this Section 7 may be dissolved, wound-up and liquidated at any time thereafter, and such Person thereafter shall be released
from its liabilities as obligor and maker on all the Notes and from its obligations under this Indenture. 
  
 Section 7.12. No Other Business 
  
 The Co-Issuers shall not engage in any business or activity other than issuing and selling the Notes and, in the case of the Issuer, the Preferred Shares
pursuant to this Indenture and the Issuer Charter, performing its obligations under each agreement or instrument to which it is a party and investing in and disposing of, solely for its own account, Collateral Debt Securities, other Collateral
described in clauses (a) through (f) of the first sentence of the Granting Clauses and such other activities as are incidental thereto or connected therewith. The Co-Issuer will not amend its Certificate of Incorporation or By-Laws, unless the
Rating Condition would be satisfied with respect to such action. The declaration of trust pursuant to which the ordinary shares of the Issuer are held on trust provides that the holders of such shares may not exercise their voting rights with
respect to such shares so as to amend the Issuer Charter unless the Rating Condition is satisfied with respect to such modification and the Holders of any Class of Notes would not be materially adversely affected by such modification. 
  
 Section 7.13. Annual Rating Review 
  
 (a) So long as any Class of Notes remains Outstanding (and the Commitment
Period Termination Date has not occurred), on or before May 31 in each year commencing in 2007, the Co-Issuers shall obtain and pay for an annual review of the rating of each Class of Notes from each Rating Agency. 
  
 (b) The Co-Issuers shall promptly notify the Trustee in writing and the
Trustee shall promptly notify the Noteholders, the Hedge Counterparty and the Preferred Shareholders if at any time the rating of any Class of Notes has been, or is known will be, changed or withdrawn. 
  

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 Section 7.14. Reporting 
  
 At any time when either Co-Issuer is not subject to Section 13 or 15(d) of the Exchange Act and is not exempt from
reporting pursuant to Rule 12g3-2(b) under the Exchange Act, upon the request of a Holder or Beneficial Owner of a Note, the Issuer or the Co-Issuer, as applicable, shall promptly furnish or cause to be furnished Rule 144A Information to such Holder
or Beneficial Owner, to a prospective purchaser of such Note designated by such Holder or Beneficial Owner or to the Trustee for delivery to such Holder or Beneficial Owner or a prospective purchaser designated by such Holder or Beneficial Owner, as
the case may be, in order to permit compliance by such Holder or Beneficial Owner with Rule 144A under the Securities Act in connection with the resale of such Note by such Holder or Beneficial Owner. 
  
 Section 7.15. Calculation Agent 
  
 (a) The Co-Issuers hereby agree that, for so long as any of the Notes remain
Outstanding (and the Commitment Period Termination Date has not occurred), the Co-Issuers will at all times cause there to be an agent appointed to calculate LIBOR in respect of each Interest Period in accordance with the terms of Schedule B (the
“Calculation Agent”), which agent shall be a financial institution, subject to supervision or examination by federal or state authority, having a rating of at least “BBB+” by Standard & Poor’s and “BBB+”
by Fitch and having an office within the United States. The Co-Issuers have initially appointed the Trustee as Calculation Agent for purposes of determining LIBOR for each Interest Period. The Calculation Agent may be removed by the Co-Issuers at
any time. If the Calculation Agent is unable or unwilling to act as such, is removed by the Co-Issuers or fails to determine the Note Interest Rate for any Class of Notes or the amount of interest payable in respect of any Class of Notes for any
Interest Period, the Co-Issuers will promptly appoint as a replacement Calculation Agent a leading bank that is engaged in transactions in U.S. Eurodollar deposits in the international Eurodollar market and which does not control and is not
controlled by or under common control with the Issuer, the Co-Issuer or any of their respective Affiliates. The Calculation Agent may not resign its duties without a successor having been duly appointed. The determination of the Note Interest Rate
for the Notes for each Interest Period by the Calculation Agent shall (in the absence of manifest error) be final and binding on all parties. 
  
 (b) The Calculation Agent shall, as soon as possible after 11:00 a.m. (London time) on each LIBOR Determination Date, but in no event later than 11:00
a.m. (London time) on the Business Day immediately following each LIBOR Determination Date, calculate the Note Interest Rate for each Class of Notes (or, with respect to any LIBOR Determination Date relating to a Borrowing Date, the Note Interest
Rate for the portion of the Class A-1 Notes being drawn on such Borrowing Date) for the related Interest Period and the amount of interest for the related Interest Period payable in respect of each U.S.$1,000 in principal amount of each Class
of Notes (in each case rounded to the nearest cent, with half a cent being rounded upward) on the related Distribution Date and will communicate such rates and amounts and the related Distribution Date to the Co-Issuers, the Trustee, each Paying
Agent (other than the Preferred Share Paying Agent), the Depositary, Euroclear, Clearstream, Luxembourg and (in the case of any Class of Notes listed on the Irish Stock Exchange) the Irish Stock Exchange. The Calculation Agent will also specify to
the Co-Issuers the quotations upon which the Note Interest Rate for each Class of Notes is based, and in any event the Calculation Agent shall notify the Co-Issuers before 5:00 

  

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p.m. (London time) on each LIBOR Determination Date that either: (i) it has determined or is in the process of determining the Note Interest Rate for
each Class of Notes or (ii) it has not determined and is not in the process of determining such Note Interest Rates, together with its reasons therefor. The Calculation Agent also will cause the Note Interest Rate for each Interest Period for
each Class of Notes listed on the Irish Stock Exchange, the amount of interest payable in respect of each Class of Notes listed on the Irish Stock Exchange and each Distribution Date to be delivered to the Company Announcements Office of the Irish
Stock Exchange as soon as possible after the Calculation Agent has determined such Note Interest Rates and amounts. 
  
 Section 7.16. Listing 
  
 The Issuer will use its best efforts to obtain and maintain the listing of each Class of Notes on the Irish Stock Exchange, and the listing of the
Preferred Shares on the Channel Islands Stock Exchange. 
  
 Section 7.17. Amendment of Certain Documents 
  
 Prior to entering into any amendment to the Collateral Management Agreement, the Collateral Administration Agreement, any Hedge Agreement or the Administration Agreement, the Rating Condition shall have been satisfied with respect to the
entry by the Issuer into such amendment. Prior to entering into any waiver in respect of any of the foregoing agreements, the Issuer shall provide Standard & Poor’s, Moody’s and Fitch, the Hedge Counterparty, the Collateral
Manager and the Trustee with written notice thereof and otherwise comply with the requirements of Section 7.5(d). 
  
 Section 7.18. Use of Uninvested Proceeds to Purchase Additional Collateral Debt Securities Prior to Ramp-Up Completion Date, Subject to the
Ratings Confirmation 
  
 (a) In accordance with the terms of
this Section 7.18, following the Closing Date until the Ramp-Up Completion Date, the Issuer will use Uninvested Proceeds and Uninvested Interest Proceeds to purchase additional Collateral Debt Securities, including pursuant to the Master
Forward Sale Agreement, such that the total amount of Collateral Debt Securities held by the Issuer following such purchases will be approximately equal to the Aggregate Ramp-Up Par Amount; provided, that the Issuer will only use Uninvested
Proceeds and Uninvested Interest Proceeds to purchase Collateral Debt Securities if: (i) such securities meet the Collateral Debt Security Criteria; (ii) the Eligibility Criteria are satisfied with respect thereto (or, in the case of any
securities purchased pursuant to the Master Forward Sale Agreement, the Eligibility Criteria are satisfied with respect to such securities on the date a forward sale transaction was entered into by the Issuer with respect thereto); (iii) no
Event of Default exists or will exist after giving effect to such acquisition; and (iv) each such Collateral Debt Security shall have been Granted to the Trustee hereunder, the procedures identified in Section 3.3 of this Indenture
relating to the perfection of the Trustee’s security interest in the Collateral Debt Security have taken place and the Trustee shall have a first priority, perfected security interest therein. All such purchases of additional Collateral Debt
Securities shall be made on the terms set forth in this Indenture, and the Issuer shall not acquire any Collateral Debt Securities after the Closing Date in violation of any of the requirements of this Indenture. In addition, the Issuer may purchase
additional Collateral Debt Securities from time to time prior to the Ramp-Up Completion Date from Merrill 

  

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Lynch International pursuant to the Master Forward Sale Agreement. Issuer may not acquire any Collateral Debt Securities unless such acquisition is made (a)
on an “arm’s length basis” for fair market value or (b) pursuant to a warehouse agreement or the Master Forward Sale Agreement. The Issuer will not acquire any Collateral Debt Securities after the Ramp-Up Completion Date, except for
the settlement of purchases of Collateral Debt Securities pursuant to agreements entered into on or prior to the Ramp-Up Completion Date. Notwithstanding the foregoing, the Issuer will not acquire any Collateral Debt Security if such acquisition is
for the primary purpose of recognizing gains or decreasing losses resulting from market value changes. 
  
 (b) Seven Business Days after the Ramp-Up Completion Date, the Issuer (or the Collateral Manager on its behalf) shall deliver an Officer’s
certificate to the Trustee, each Hedge Counterparty and each Rating Agency demonstrating compliance by the Issuer with its obligations under this Section 7.18 and satisfaction of each applicable Coverage Test and each Collateral Quality Test and
certifying the satisfaction of the Collateral Debt Security Criteria and the Eligibility Criteria with respect to each Collateral Debt Security or, if on the Ramp-Up Completion Date, the Issuer shall be in default in the performance of its
obligations under this Section 7.18 or any of the Coverage Tests or Collateral Quality Tests shall fail to be satisfied, or any of the Collateral Debt Security Criteria or Eligibility Criteria shall fail to be satisfied with respect to any
Collateral Debt Security, the Issuer (or the Collateral Manager on behalf of the Issuer) shall deliver an Officer’s certificate to the Trustee, each Hedge Counterparty and each Rating Agency specifying the details of such default or failure. In
addition, the Issuer (or the Collateral Manager on behalf of the Issuer) shall promptly notify each Rating Agency when a Collateral Debt Security becomes a Defaulted Security. As of the Ramp-Up Completion Date, in addition to satisfying the
conditions set forth above, the following criteria must be met and shall be included in the items to be certified pursuant to the Officer’s certificate referred to above: 
  
 The aggregate Principal Balance of Pledged Securities that evidence obligations of a single issuer must: 
  
 (i) not exceed 3.75% of the aggregate Principal Balance on such date and,
with respect to the date on which any additional Collateral Debt Security is purchased, the purchase of such additional Collateral Debt Security must not cause the aggregate Principal Balance of Pledged Securities that evidence obligations of a
single issuer to exceed 3.75% of the aggregate Principal Balance on such date or; 
  
 (ii) if the aggregate Principal Balance of Pledged Securities that evidence obligations of the obligor of such additional collateral debt security exceeds 3.75% of the aggregate Principal Balance prior to such
purchase, such purchase must not cause such percentage to increase. 
  
 (c) No later than seven Business Days after the Ramp-Up Completion Date, the Issuer (or the Collateral Manager on its behalf) shall deliver or cause to be delivered to the Trustee, each Hedge Counterparty and each Rating Agency a list of
all Collateral Debt Securities and Equity Securities held by the Issuer (or with respect to which the Issuer has entered into a binding purchase agreement) on the Ramp-Up Completion Date and an Accountants’ Report certifying the procedures
applied and their associated findings with respect to the Collateral Quality Tests set forth in Section 7.18 for each Pledged Collateral Debt Security held by the Issuer on the Ramp-Up Completion Date. 
  

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 (d) No later than seven Business Days after the Ramp-Up Completion Date, the Issuer (or the Collateral
Manager on its behalf) shall notify the Trustee, each of the Rating Agencies and each Hedge Counterparty of the occurrence of the Ramp-Up Completion Date and request in writing (each, a “Ramp-Up Notice”) that each of the Rating Agencies
confirm in writing within 30 days after receipt of such Ramp-Up Notice that it has not reduced or withdrawn the ratings (including any shadow, private or confidential ratings, if any) assigned by it, if any, on the Closing Date to any Class of Notes
(a “Ratings Confirmation”). The Issuer will be deemed to have obtained a confirmation of the ratings assigned by Fitch on the Closing Date if (i) such Rating Agency does not notify the Issuer in writing within 30 days after receipt of
such Ramp-Up Notice that any such rating (including shadow, private or confidential ratings, if any) has been reduced or withdrawn and (ii) all Coverage Tests and Collateral Quality Tests are satisfied on the Ramp-Up Completion Date. In the
event that the Issuer is unable to obtain a Ratings Confirmation after the occurrence of the Ramp-Up Completion Date (a “Ramp-Up Ratings Confirmation Failure”), the Issuer will be required to apply Uninvested Proceeds and, to the extent
that Uninvested Proceeds are insufficient to redeem the Notes in full, Interest Proceeds (including Uninvested Interest Proceeds) and Principal Proceeds to the repayment of, first, the Class A-1 Notes, second, the Class A-2 Notes, third,
the Class A-3 Notes, fourth, the Class B Notes, pro rata, fifth, the Class C Notes, pro rata, sixth, the Class D Notes, pro rata, and seventh, the Class E Notes, in accordance with Section 11.1(a) as, and to the
extent, necessary to obtain a Ratings Confirmation from each Rating Agency. 
  
 (e) No later than seven Business Days after the Ramp-Up Completion Date, the Issuer (or the Collateral Manager on its behalf) shall deliver to Moody’s and Fitch a geographic breakdown of all Collateral Debt
Securities and Equity Securities held by the Issuer on the Ramp-Up Completion Date. 
  
 Section 7.19. Compliance with Collateral Purchase Agreements 
  
 The Issuer agrees to perform all actions required to be performed, and to refrain from performing any actions prohibited, under the purchase agreements
with respect to the Collateral Debt Securities. The Issuer also agrees to take all actions as may be necessary to ensure that all of the Issuer’s representations and warranties made pursuant to the purchase agreements with respect to the
Collateral Debt Securities are true and correct as of the date thereof and continue to be true and correct for so long as any Notes are Outstanding. 
  
 Section 7.20. Section 3(c)(7) Procedures 
  
 (a) The Issuer shall send to the Noteholders a Section 3(c)(7) Reminder Notice at the times required under Section 10.9(d). Without limiting the
foregoing, the Issuer shall send a copy of each report referred to in Section 10.9 to DTC, with a request that DTC forward each such report to the relevant DTC participants for further delivery to beneficial owners of the Global Securities.

  

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 (b) The Issuer will direct DTC to take the following steps in connection with the Rule 144A Global
Securities: 
  
 (i) The Issuer will direct DTC to
include the “3c7” marker in the DTC 20-character security descriptor and the 48-character additional descriptor for the Rule 144A Global Securities in order to indicate that sales are limited to Qualified Purchasers that are Qualified
Institutional Buyers. 
  
 (ii) The Issuer will
direct DTC to cause each physical DTC deliver order ticket delivered by DTC to purchasers to contain the DTC 20-character security descriptor; and will direct DTC to cause each DTC deliver order ticket delivered by DTC to purchasers in electronic
form to contain the “3c7” indicator and a related user manual for participants, which will contain a description of the relevant restrictions. 
  
 (iii) The Issuer will instruct DTC to send an Important Section 3(c)(7) Notice to all DTC Participants in connection with the
offering of the Rule 144A Global Securities. 
  
 (iv) The Issuer will advise DTC that it is a Section 3(c)(7) issuer and will request DTC to include the Rule 144A Global Securities in DTC’s “Reference Directory” of Section 3(c)(7) offerings. 
  
 (v) The Issuer will from time to time (upon the request of
the Trustee, the Hedge Counterparty, the Note Registrar or the Collateral Administrator) request DTC to deliver to the Issuer a list of all DTC Participants holding an interest in the Rule 144A Global Securities. 
  
 (c) The Issuer shall from time to time request all third-party vendors to
include on screens maintained by such vendors appropriate legends regarding Rule 144A and Section 3(c)(7) restrictions on the Rule 144A Global Securities. Without limiting the foregoing, the Issuer will request Bloomberg, L.P. to include the
following on each Bloomberg screen containing information about the Rule 144A Global Securities: 
  
 (i) The “Note Box” on the bottom of the “Security Display” page describing each Rule 144A Global Security should
state: “Iss’d Under 144A/3c7.” 
  
 (ii) The “Security Display” page should have a flashing red indicator stating “See Other Available Information.” 
  
 (iii) Such indicator should link to an “Additional Security Information” page, which should state that the Rule 144A Global
Securities “are being offered in reliance on the exemption from registration under Rule 144A to Persons that are both (1) qualified institutional buyers (as defined in Rule 144A) and (2) qualified purchasers (as defined under
Section 3(c)(7) under the Investment Company Act of 1940). 
  
 (d) The Issuer shall cause each “CUSIP” number obtained for the Rule 144A Global Securities to have an attached “fixed field” that contains “3c7” and “144A” indicators. 
  

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 Section 7.21. Fiscal Year. Each of the Co-Issuer’s fiscal year will end on
December 31 of each year unless determined otherwise by the Co-Issuers in consultation with an Independent accountant. Upon such determination, the Issuer or Co-Issuer, as applicable, will provide notice of such fiscal year change to the
Noteholders and the Preferred Shareholders. 
  
 Section 7.22.
Restrictions With Respect to Certain Activities Relating to the Collateral 
  
 The Issuer shall not: 
  
 (a) act
as, or engage in any activities customarily undertaken by an underwriter, agent, arranger or structuring agent with respect to, or negotiate (other than to negotiate the terms of a Hedge Agreement) the terms of, any U.S. Security; 
  
 (b) act as, hold itself out as, represent to others that it is, or engage in
any activities customarily undertaken by, a dealer, middleman, market maker, retailer or wholesaler in any U.S. Security, or otherwise make a market in, or hold as inventory for purposes of resale to customers, any securities or assets owned by the
Issuer; 
  
 (c) acquire any security, or enter into, assign or
terminate any derivatives transaction, in any case, in order to earn a dealer spread or dealer mark-up over its cost; 
  
 (d) register as a broker/dealer under the laws of any country or political subdivision thereof; or 
  
 (e) take any action causing it to be treated as a bank, insurance company,
financial guarantor, surety bond issuer, finance company, loan originator or similar financial institution for purposes of: 
  
 (i) any tax, securities law or other filing or submission made to any governmental authority; 
  
 (ii) any application made to a rating agency; or 

 
 (iii) qualification for any exemption from tax,
securities law or any other legal requirements. 
  
 ARTICLE VIII

  
 SUPPLEMENTAL INDENTURES 
  
 Section 8.1. Supplemental Indentures Without Consent of
Noteholders 
  
 Without the consent of the Noteholders, the
Combination Noteholders, the Hedge Counterparty or the Preferred Shareholders, the Co-Issuers, when authorized by Board Resolutions, and the Trustee, at any time and from time to time subject to the requirement provided below in this
Section 8.1 with respect to the ratings of the Notes and subject to Section 8.3, may enter into one or more indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following purposes: 
  
 (a) to evidence the succession of another Person to the Issuer or the
Co-Issuer and the assumption by any such successor Person of the covenants of the Issuer or the Co-Issuer herein and in the Notes and Combination Notes pursuant to Section 7.10 or 7.11; 
  

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 (b) to add to the covenants of the Issuer, the Co-Issuer or the Trustee for the benefit of the Holders of
all of the Notes and Combination Notes or to surrender any right or power herein conferred upon the Issuer or the Co-Issuer; 
  
 (c) to convey, transfer, assign, mortgage or pledge any property to or with the Trustee; 
  
 (d) to evidence and provide for the acceptance of appointment hereunder by a successor trustee that meets the requirements
of Section 6.10 herein and to add to or change any of the provisions of this Indenture as shall be necessary to facilitate the administration of the trusts hereunder by more than one Trustee, pursuant to the requirements of Sections 6.10, 6.12
and 6.13; 
  
 (e) to correct or amplify the description of any
property at any time subject to the lien of this Indenture, or to better assure, convey and confirm unto the Trustee any property subject or required to be subjected to the lien of this Indenture (including any and all actions necessary or desirable
as a result of changes in law or regulations) or to subject to the lien of this Indenture any additional property; 
  
 (f) to modify the restrictions on and procedures for resale and other transfer of the Notes or Combination Notes to reflect any changes in any applicable
law or regulation (or the interpretation thereof) or to enable the Co-Issuers to rely upon any less restrictive exemption from registration under the Securities Act or the Investment Company Act or to remove restrictions on resale and transfer to
the extent not required thereunder; 
  
 (g) to correct any
inconsistency, defect or ambiguity in this Indenture, including so as to conform the terms of this Indenture to the disclosure set forth in the Offering Memorandum; 
  
 (h) to make non-material administrative changes as the Co-Issuers deem appropriate; 
  
 (i) to avoid imposition of tax on the net income of the Issuer or the
Co-Issuer or to avoid the Issuer or the Co-Issuer being required to register as an investment company under the Investment Company Act; 
  
 (j) to facilitate the listing of any of the Offered Securities on any exchange and to authorize the appointment of any listing agent, transfer agent,
paying agent, or additional registrar for any Offered Securities appropriate in connection with the listing of any Offered Securities on any stock exchange, and otherwise to amend this Indenture to incorporate any changes required or requested by
any governmental authority, stock exchange authority, listing agent, transfer agent, paying agent, or additional registrar for any Offered Securities in connection with its appointment; 
  
 (k) to modify the REIT/REOC Coverage Tests, the Real Estate Entity Trigger Events and the related definitions thereunder; or

  

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 (l) to evidence or implement any change to this Indenture required by regulations or guidelines enacted
to support the USA PATRIOT Act or any other similar applicable laws and regulations in the Cayman Islands. 
  
 The Trustee is hereby authorized to join in the execution of any such supplemental indenture and to make any further appropriate agreements and
stipulations which may be therein contained, but the Trustee shall not be obligated to enter into any such supplemental indenture that affects the Trustee’s own rights, duties, liabilities or indemnities under this Indenture or otherwise,
except to the extent required by law. 
  
 The Trustee shall not
enter into any such supplemental indenture described in clauses (a) through (k) of this Section 8.1 if, as a result of such supplemental indenture, the interests of any Holder, any Preferred Shareholder or the Hedge Counterparty would
be materially adversely affected thereby. Unless notified by (i) a Majority of any Class of Notes or a Majority-in-Interest of Preferred Shareholders that such Class or Preferred Shareholders will be materially adversely affected or
(ii) the Hedge Counterparty that such Hedge Counterparty will be materially adversely affected, the Trustee shall be entitled to rely on an Opinion of Counsel delivered to the Trustee as described in Section 8.3 as to whether or not the
interests of any Holders, any Preferred Shareholder or the Hedge Counterparty, as applicable, would be materially adversely affected by any such supplemental indenture (after giving notice of such change to each Holder, each Preferred Shareholder
and the Hedge Counterparty). The Trustee shall not enter into any such supplemental indenture pursuant to this Section 8.1 that could reasonably be expected to materially adversely affect the Collateral Manager unless the Collateral Manager
gives written consent to the Trustee and the Issuer to such supplemental indenture at least one (1) Business Day prior to such execution and delivery. At the cost of the Co-Issuers, the Trustee shall provide to the Noteholders, the Hedge
Counterparty and the Preferred Share Paying Agent a copy of any proposed supplemental indenture at least 15 Business Days prior to the execution thereof by the Trustee and a copy of the executed supplemental indenture after its execution. At the
cost of the Co-Issuers, the Trustee shall provide to each Rating Agency a copy of any proposed supplemental indenture at least 15 Business Days’ prior to the execution thereof by the Trustee, and, for so long as any Notes are Outstanding (and
the Commitment Period Termination Date has not occurred), request that the Rating Condition with respect to such supplemental indenture be satisfied, and, as soon as practicable after the execution by the Trustee and the Co-Issuers of any such
supplemental indenture, provide to each Rating Agency a copy of the executed supplemental indenture. The Trustee shall not enter into any such supplemental indenture if, with respect to such supplemental indenture, the Rating Condition would not be
satisfied; provided, that the Trustee may, with the consent of the Holders of 100% of the Aggregate Outstanding Principal Amount of Notes of each Class and the Hedge Counterparty, enter into any such supplemental indenture notwithstanding any
such reduction or withdrawal of the ratings of any Outstanding Class of Notes. 
  
 Section 8.2. Supplemental Indentures with Consent of Noteholders 
  
 With the consent of (v) each Holder of each Outstanding Note of each Class materially adversely affected thereby and a Majority-in-Interest of
Preferred Shareholders (if the Preferred Shareholders are materially adversely affected thereby), by Act of said Noteholders or by written 

  

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consent of the Preferred Shareholders (which consent shall be evidenced by an Officer’s certificate of the Issuer certifying that such consent has been
obtained) delivered to the Trustee and the Co-Issuers and (w) the consent of the Hedge Counterparty (if materially adversely affected thereby) (delivered by the Hedge Counterparty to the Trustee and the Co-Issuers), the Trustee and the
Co-Issuers may, subject to the requirement provided below in this Section 8.2 with respect to the ratings of the Notes and subject to Section 8.3, enter into one or more indentures supplemental hereto to add any provisions to, or change in
any manner or eliminate any of the provisions of, this Indenture or modify in any manner the rights of the Holders of the Notes of such Class, the Preferred Shares or the Hedge Counterparty, as the case may be, under this Indenture; provided,
that notwithstanding anything in this Indenture to the contrary, no such supplemental indenture shall be entered into without the consent of (i) each Holder of each Outstanding Note of each Class, (ii) each Preferred Shareholder (which
consent shall be evidenced by an Officer’s certificate of the Issuer certifying that such consent has been obtained) and (iii) the Hedge Counterparty (if materially adversely affected thereby) (delivered by the Hedge Counterparty to the
Trustee and the Co-Issuers), if such supplemental indenture proposes to: 
  
 (a) change the Stated Maturity of the principal of or the due date of any installment of interest or the Commitment Fee on any Note, reduce the principal amount thereof or the Note Interest Rate or the Commitment Fee
Rate thereon, or the Redemption Price with respect thereto, change the earliest date on which the Co-Issuers may redeem any Note, change the provisions of this Indenture relating to the application of proceeds of any Collateral to the payment of
principal of or interest or the Commitment Fee on the Notes, change any place where, or the coin or currency in which, any Note or the principal thereof or interest or the Commitment Fee thereon is payable or impair the right to institute suit for
the enforcement of any such payment on or after the Stated Maturity thereof (or, in the case of redemption, on or after the applicable Redemption Date); 
  
 (b) reduce the percentage of the Aggregate Outstanding Principal Amount of Holders of Notes of each Class whose consent is required for the authorization
of any supplemental indenture or for any waiver of compliance with certain provisions of this Indenture or certain Defaults hereunder or their consequences provided for in this Indenture; 
  
 (c) impair or adversely affect the Collateral except as otherwise expressly permitted in this Indenture; 
  
 (d) permit the creation of any lien ranking prior to or on a parity with the
lien of this Indenture with respect to any part of the Collateral or terminate such lien on any property at any time subject hereto (other than in connection with the sale thereof in accordance with this Indenture) or deprive the Holder of any Note
of the security afforded by the lien of this Indenture; 
  
 (e)
reduce the percentage of the Aggregate Outstanding Principal Amount of Holders of Notes of each Class whose consent is required to request that the Trustee preserve the Collateral or rescind the Trustee’s election to preserve the Collateral
pursuant to Section 5.5 or to sell or liquidate the Collateral pursuant to Section 5.4 or 5.5; 
  

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 (f) modify any of the provisions of this Section 8.2, except to increase any such percentage or to
provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Note affected thereby; 
  
 (g) modify the definition of the term “Outstanding,” Section 11.1 or Section 13.1; 
  
 (h) change the permitted minimum denominations of any Class of Notes; or

  
 (i) modify any of the provisions of this Indenture in such a
manner as to affect the calculation of the amount of any payment of interest or the Commitment Fee on or principal of any Note or the rights of the Holders of Notes to the benefit of any provisions for the redemption of such Notes contained herein.

  
 With the consent of the Holders of a majority of the
Combination Notes materially adversely affected thereby, the Co-Issuers and the Trustee may, at any time and from time to time, enter into one or more supplemental indentures to amend the provisions of the Indenture relating to the Combination
Notes; provided, that the Trustee may not enter into any supplemental indenture that would amend such provisions in any manner that would, if such amendment were being made to all of the Notes and not just the Combination Notes, require the
consent of all of the holders of Notes, without the consent of all of the holders of the Combination Notes. 
  
 The Trustee is hereby authorized to join in the execution of any such supplemental indenture and to make any further appropriate agreements and
stipulations which may be therein contained, but the Trustee shall not be obligated to enter into any such supplemental indenture that affects the Trustee’s own rights, duties, liabilities or indemnities under this Indenture or otherwise,
except to the extent required by law. 
  
 Not later than 15
Business Days prior to the execution of any proposed supplemental indenture pursuant to this Section 8.2, the Trustee, at the expense of the Co-Issuers, shall mail to the Noteholders, the Hedge Counterparty, the Collateral Manager, the
Preferred Share Paying Agent and each Rating Agency a copy of such proposed supplemental indenture (or a description of the substance thereof) and shall request that the Rating Condition with respect to such supplemental indenture be satisfied. If
any Class of Notes is then rated by any Rating Agency, the Trustee shall not enter into any such supplemental indenture if, as a result of such supplemental indenture, the Rating Condition would not be satisfied with respect to such supplemental
indenture, unless each Holder of Notes of each Class whose rating will be reduced or withdrawn has, after notice that the proposed supplemental indenture would result in such reduction or withdrawal of the rating of the Class of Notes held by such
Holder, consented to such supplemental indenture. The Trustee shall not enter into any such supplemental indenture if, as a result of such supplemental indenture, the interests of any Holder, Preferred Shareholder or Hedge Counterparty would be
materially adversely affected thereby. Unless notified by a Majority of any Class of Notes, a Majority-in-Interest of Preferred Shareholders or the Hedge Counterparty that such Class of Notes, the Preferred Shares or the Hedge Counterparty, as the
case may be, will be materially adversely affected, the Trustee may, consistent with the written advice of counsel, determine whether or not such Class of Notes, the Preferred Shares or the Hedge Counterparty would be materially adversely affected
by such change (after giving notice 

  

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of such change to each Noteholder, Preferred Shareholder and the Hedge Counterparty). Such determination shall be conclusive and binding on all present and
future Holders, Preferred Shareholders and the Hedge Counterparty. The Trustee shall not be liable for any such determination made in good faith and in reliance in good faith upon an Opinion of Counsel delivered to the Trustee as described in
Section 8.3. 
  
 It shall not be necessary for any Act of
Noteholders or any consent of Preferred Shareholders or Hedge Counterparty under this Section 8.2 to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act or consent shall approve the
substance thereof. 
  
 Promptly after the execution by the
Co-Issuers and the Trustee of any supplemental indenture pursuant to this Section 8.2, the Trustee, at the expense of the Co-Issuers, shall mail to the Noteholders, the Hedge Counterparty, the Preferred Share Paying Agent (for forwarding to the
Preferred Shareholders), the Collateral Manager, the Irish Stock Exchange (in the case of any Class of Notes listed on the Irish Stock Exchange) and the Channel Islands Stock Exchange (in the case of any Preferred Shares listed on the Channel
Islands Stock Exchange) and each Rating Agency a copy thereof. Any failure of the Trustee to publish or mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture. In
addition, promptly following the execution of any supplemental indenture or other modification pursuant to this Section 8.2, the Issuer shall deliver a copy of such supplemental indenture or other modification to the Repository for posting on
the Repository in the manner described in Section 10.11. 
  
 Section 8.3. Execution of Supplemental Indentures 
  
 In executing or accepting the additional trusts created by any supplemental indenture permitted by this Section 8 or the modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, and
(subject to Sections 6.1 and 6.3) shall be fully protected in relying in good faith upon an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture and that all conditions precedent
thereto have been complied with. The Trustee may, but shall not be obligated to, enter into any such supplemental indenture that affects the Trustee’s own rights, duties or indemnities under this Indenture or otherwise. The Trustee shall not
enter into any supplemental indenture (including a supplemental indenture entered into pursuant to Section 8.1 or 8.2) that alters the rights or obligations of the Collateral Manager in any respect without the written consent of the Collateral
Manager, and the Collateral Manager shall not be bound by any amendment to this Indenture which alters the rights or obligations of the Collateral Manager in any respect unless the Collateral Manager shall have consented thereto in writing.

  
 Section 8.4. Effect of Supplemental Indentures

  
 Upon the execution of any supplemental indenture under this
Section 8, this Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of Notes theretofore and thereafter authenticated and delivered
hereunder, every Holder of Preferred Shares and the Hedge Counterparty shall be bound thereby. 
  

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 Section 8.5. Reference in Notes to Supplemental Indentures 
  
 Notes authenticated and delivered after the execution of any supplemental
indenture pursuant to this Section 8 may, and if required by the Trustee shall, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Co-Issuers shall so determine, new Notes, so
modified as to conform in the opinion of the Trustee and the Co-Issuers to any such supplemental indenture, may be prepared and executed by the Co-Issuers and authenticated and delivered by the Trustee in exchange for Outstanding Notes. 

 
 Section 8.6. Class A-2 Agency and Amending Agreement

  
 On the Closing Date, the Trustee, the Issuer, the Co-Issuer
and the Class A-2 Auction Agent named therein shall, without regard to Section 8.1, 8.2 or 8.3 hereof but subject to terms reasonably satisfactory to each of the Collateral Manager, the Trustee, the Issuer and the Co-Issuer, execute and
deliver the Class A-2 Agency and Amending Agreement dated as of the Closing Date relating to the Class A-2 Notes and, upon execution thereof, this Indenture shall be amended in accordance therewith with effect on and after the Closing
Date. 
  
 ARTICLE IX 
  
 REDEMPTION OF NOTES 
  
 Section 9.1. Redemption of Notes 
  
 (a) The Notes shall be redeemable (in whole but not in part) on any
Distribution Date at the option of the Co-Issuers (such redemption, an “Optional Redemption”) from Sale Proceeds and all other funds in the Interest Collection Account, Principal Collection Account, the Interest Reserve Account, the
Expense Account, the Semi-Annual Interest Reserve Account, and the Payment Account on such Distribution Date, as specified by the Co-Issuers, at the written direction of a Majority-in-Interest of Preferred Shareholders, at the applicable Redemption
Price (exclusive of installments of principal and interest and the Commitment Fee due on or prior to such date, provided payment of which shall have been made or duly provided for, to the Holders of the Notes as provided in this Indenture);
provided, that (i) no such Optional Redemption may be effected prior to the Distribution Date occurring in February 2011, (ii) the Sale Proceeds and all Cash and Eligible Investments credited to the Interest Collection Account, the
Principal Collection Account, the Interest Reserve Account, the Semi-Annual Interest Reserve Account, the Expense Account and the Payment Account on the relevant Distribution Date must be at least sufficient to redeem the Notes simultaneously in
accordance with the procedures described in Section 9.1(b) and (iii) such Sale Proceeds are used to make such a redemption. 
  
 In addition, upon the occurrence of a Tax Event, the Notes shall be redeemable by the Co-Issuers on any Distribution Date (in whole but not in part) at
the written direction of a Majority of any Affected Class (such redemption, a “Tax Redemption”) from Sale Proceeds and Cash and Eligible Investments credited to the Interest Collection Account, Principal Collection Account, the Interest
Reserve Account, the Expense Account and the Payment Account on such Distribution Date at the applicable Redemption Price (exclusive of installments of principal and 

  

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interest and the Commitment Fee due on or prior to such date, provided payment of which has been made or duly provided for, to the Holders of the Notes as
provided in this Indenture); provided, that (i) the Sale Proceeds and all Cash and Eligible Investments credited to the Interest Collection Account, Principal Collection Account, the Interest Reserve Account, the Expense Account and the
Payment Account on the relevant Distribution Date must be at least sufficient to redeem the Notes simultaneously in accordance with the procedures described in Section 9.1(b), (ii) such Sale Proceeds are used to make such a redemption, (iii) a Tax
Event has occurred and (iv) the Tax Materiality Condition is satisfied. 
  
 In the event of an Optional Redemption or Tax Redemption pursuant to this Section 9.1(a), unless a Majority-In-Interest of the Preferred Shareholders have directed the Issuer to redeem the Preferred Shares on such Distribution Date, the
amount of Collateral Debt Securities sold in connection with such Optional Redemption shall not exceed the amount necessary for the Issuer to obtain the Total Senior Redemption Amount. 
  
 (b) The Notes shall not be redeemed pursuant to Section 9.1(a) unless at least four Business Days before the scheduled
Redemption Date, the Collateral Manager shall have furnished to the Trustee evidence (which evidence may be in the form of fax or electronic mail indicating firm bids satisfactory to the Trustee), that the Collateral Manager on behalf of the Issuer
has entered into a binding agreement or agreements with a financial institution or institutions whose long-term unsecured debt obligations (other than such obligations whose rating is based on the credit of a person other than such institution) have
a credit rating from each Rating Agency at least equal to the then-highest rating of any Notes then Outstanding or whose short-term unsecured debt obligations have a credit rating of at least “A-1” by Standard & Poor’s, at least
“P-1” by Moody’s and at least “F1” by Fitch to sell, not later than the Business Day immediately preceding the scheduled Redemption Date, in immediately available funds, all or part of the Collateral Debt Securities at a
sale price (including in such price the sale of accrued interest) which, when added to all Cash and Eligible Investments maturing on or prior to the scheduled Redemption Date, is equal to the Total Senior Redemption Amount. 
  
 Notwithstanding the foregoing paragraph, in connection with any Tax
Redemption, Holders of at least 66-2/3% of the Aggregate Outstanding Principal Amount of an Affected Class of Notes may elect to receive less than 100% of the portion of the Total Senior Redemption Amount that would otherwise be payable to Holders
of such Affected Class (and the minimum funding requirements specified in the immediately preceding paragraph will be reduced accordingly). 
  
 (c) Installments of principal and interest and the Commitment Fee due on or prior to a Redemption Date shall continue to be payable to the Holders of such
Notes as of the relevant Record Dates according to their terms. The election of the Issuer to redeem any Notes pursuant to this Section 9.1 shall be evidenced by an Issuer Order from the Collateral Manager directing the Trustee to make the payment
to the Paying Agent of the Redemption Price of all of the Notes to be redeemed from funds in the Payment Account in accordance with the Priority of Payments. The Issuer shall deposit, or cause to be deposited, the funds required for an optional
redemption pursuant to this Section 9.1 in the Payment Account on or before the fifth Business Day prior to the Redemption Date or, if later, upon receipt. 
  

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 (d) The Issuer shall set the Redemption Date and the applicable Record Date and give notice thereof to
the Trustee pursuant to Section 9.2. 
  
 (e) Any amounts
applied to the redemption of the Class A Notes, Class B Notes, Class C Notes, Class D Notes or Class E Notes pursuant to this Section 9.1 shall be applied to the Class A Notes, Class B Notes, Class C Notes, Class D Notes or Class E
Notes, respectively, in each case, pro rata in accordance with the Aggregate Outstanding Principal Amounts of such Class of Notes on the date of such redemption. 
  
 Section 9.2. Notice to Trustee of Optional Redemption and Tax Redemption 
  
 In the event of any redemption pursuant to Section 9.1, the Issuer
shall, at least 30 days (but not more than 90 days) prior to the Redemption Date (unless the Trustee shall agree to a shorter notice period), notify the Trustee, the Collateral Manager and each Paying Agent of such Redemption Date, the applicable
Record Date, the principal amount of each Class of Notes to be redeemed on such Redemption Date and the Redemption Price of such Notes in accordance with Section 9.1. 
  
 Section 9.3. Notice of Auction Call Redemption, Optional Redemption or Tax Redemption or Maturity by the
Co-Issuers 
  
 Notice of redemption pursuant to
Section 9.1 or 9.5 or the Maturity of any Class of Notes shall be given by the Trustee by first class mail, postage prepaid, mailed not less than 10 Business Days prior to the applicable Redemption Date or Maturity to each Holder of Notes to be
redeemed pursuant to Section 9.1 or 9.5 or to mature, at such Holder’s address in the Note Register with a copy to the Hedge Counterparty and each Rating Agency. In addition, if and for so long as any Class of Notes to be redeemed is
listed on the Irish Stock Exchange, the Trustee shall cause to be delivered to the Company Announcements Office of the Irish Stock Exchange notice of such Optional Redemption, Tax Redemption or Auction Call Redemption not less than 10 Business Days
prior to the applicable Redemption Date and promptly notify the Irish Stock Exchange. All notices of redemption shall state: 
  
 (a) the applicable Redemption Date; 
  
 (b) the applicable Record Date; 
  
 (c) the Redemption Price; 
  
 (d) the principal amount of each Class of Notes to be redeemed and that interest on such principal amount of Notes shall cease to accrue on the date
specified in the notice; and 
  
 (e) the place or places where
such Notes are to be surrendered for payment of the Redemption Price, which shall be the office or agency of the Co-Issuers to be maintained as provided in Section 7.2. 
  
 The Co-Issuers shall have the option to withdraw the notice of Auction Call Redemption, Optional Redemption or Tax
Redemption up to the fourth Business Day prior to the scheduled Redemption Date by written notice to the Trustee, the Hedge Counterparty and the 

  

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Collateral Manager only if the Collateral Manager shall be unable to deliver the sale agreement or agreements or certifications (described in
Section 9.1(b)), in form reasonably satisfactory to the Trustee, or to satisfy the conditions to the consummation of an Auction Call Redemption set forth in Section 9.5, as the case may be. The Trustee will, if any Class of Notes to have
been redeemed was listed on the Irish Stock Exchange, deliver a notice of such withdrawal to the Company Announcements Office of the Irish Stock Exchange not less than three Business Days prior to the scheduled Redemption Date and promptly notify
the Irish Stock Exchange of such withdrawal. 
  
 The Issuer shall
exercise its option to redeem the Notes as provided in Section 9.1(a) only upon receipt of the written direction of a Majority-in-Interest of Preferred Shareholders. 
  
 Notice of redemption shall be given by the Issuer or, at the Issuer’s request, by the Trustee in the name and at the
expense of the Issuer, to the Hedge Counterparty on the third Business Day prior to the scheduled Redemption Date; provided, that the Hedge Agreements in effect at the time notice of redemption is given shall remain in effect until
liquidation of the Collateral has begun and such notice is no longer capable of being rescinded or annulled; provided, further, that if the Hedge Agreements shall have become subject to early termination prior to the receipt of such notice,
the Issuer shall enter into one or more replacement Hedge Agreements for the terminated Hedge Agreement in accordance with Section 16.1(h). 
  
 At the cost of the Co-Issuers, the Trustee shall give notice of any withdrawal by overnight courier guaranteeing next day delivery, sent not later than
the third Business Day prior to the scheduled Redemption Date, to each Holder of Notes to be redeemed at such Holder’s address in the Note Register and to the Hedge Counterparty. 
  
 Notice of redemption shall be given by the Co-Issuers or, at the Co-Issuers’ request, by the Trustee in the name and at
the expense of the Co-Issuers. Failure to give notice of redemption, or any defect therein, to any Holder of any Note selected for redemption shall not impair or affect the validity of the redemption of any other Notes. 
  
 Section 9.4. Notes Payable on Redemption Date 
  
 Notice of redemption having been given as aforesaid, the Notes so to be
redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein specified, and from and after the Redemption Date (unless the Co-Issuers shall default in the payment of the Redemption Price and accrued interest, if
any) such Notes shall cease to bear interest and the Commitment Fee on the Redemption Date. Upon final payment on a Note to be redeemed, the Holder shall present and surrender such Note at the place specified in the notice of redemption on or prior
to such Redemption Date; provided, that if there is delivered to the Co-Issuers and the Trustee (i) in the case of a Holder that is not a Qualified Institutional Buyer, such security or indemnity as may be required by them to save each
of them harmless and (ii) an undertaking thereafter to surrender such Note, then, in the absence of notice to the Co-Issuers and the Trustee that the applicable Note has been acquired by a bona fide purchaser, such final payment shall be made
without presentation or surrender. Installments of interest on Notes of a Class so to be redeemed whose Stated Maturity is on or prior to the Redemption Date shall be 

  

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payable to the Holders of such Notes, or one or more predecessor Notes, registered as such at the close of business on the relevant Record Date according to
the terms and provisions of Section 2.6(e). 
  
 If any Note
called for redemption shall not be paid upon surrender thereof for redemption, the principal thereof shall, until paid, bear interest from the Redemption Date at the applicable Note Interest Rate for each successive Interest Period that the Note
remains Outstanding. 
  
 Section 9.5. Auction Call
Redemption 
  
 In accordance with the procedures set forth in
Schedule C (the “Auction Procedures”), the Collateral Manager shall, at the expense of the Co-Issuers, conduct an auction (the “Auction”) of all the Collateral Debt Securities if, on or prior to the Distribution Date occurring in
February 2016, the Notes have not been redeemed in full. The Auction shall be conducted not later than (a) the date that is ten (10) Business Days prior to the Distribution Date occurring in February 2016, and (b) if the Notes are not
redeemed in full on such Distribution Date, each Distribution Date thereafter until all of the Collateral Debt Securities have been sold (each such date, an “Auction Date”). Notwithstanding the foregoing, the Collateral Manager shall not
conduct an Auction on an Auction Date if an Auction was conducted on the preceding Auction Date and, due to market conditions, an Auction on such Auction Date is unlikely to be successful. Any of the Collateral Manager, the Preferred Shareholders,
the Trustee or their respective Affiliates may, but shall not be required to, bid at the Auction. The Collateral Manager shall sell and transfer, or shall instruct the Trustee to sell and transfer, the Collateral Debt Securities to the highest
bidder therefor (or the highest bidders therefor, in the event the pool of Collateral Debt Securities is divided and sold in Subpools) at the Auction; provided, that: 
  
 (i) the Auction has been conducted in accordance with the Auction Procedures; 
  
 (ii) the Collateral Manager has received bids for the
Collateral Debt Securities (or for each of the related Subpools) from at least two prospective purchasers (including the winning bidder) identified on a list of qualified bidders (such bidders, “Qualified Bidders”) furnished by the
Collateral Manager to the Trustee in accordance with this Indenture; provided, that the Issuer will be entitled to enter into an agreement for the purchase of the Collateral Debt Securities (or the relevant Subpool) with a Person other than a
Qualified Bidder in the event that (A) such Person provides a bid in an amount greater than the highest bid received from any Qualified Bidder, (B) the Rating Condition is satisfied with respect thereto and (C) such Person provides
credit support in respect of its purchase obligation in the form and amount requested, if any, by the Collateral Manager, the Issuer or any Rating Agency (including, without limitation, in the form of a letter of credit if so requested);
provided, further, that in the event the Collateral Manager, the Preferred Shareholders, the Trustee or their respective Affiliates has met the requirements set forth in subclauses (B) and (C) of the preceding proviso, the
Collateral Manager, the Preferred Shareholders, the Trustee, the Placement Agent or their respective Affiliates shall be entitled to purchase the Collateral Debt Securities, or any portion thereof, at a purchase price equal to the highest bid
received therefor; and provided, still  

  

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further, that, in accordance with the Auction Procedures, if the Trustee receives fewer than two bids to purchase all of the Collateral Debt
Securities or to purchase each Subpool, the Trustee may, if a Majority-in-Interest of the Preferred Shareholders consents thereto in writing, and in accordance with the provisions of the Indenture, accept such bid as the winning bid; 
  
 (iii) the Collateral Manager certifies that the highest
bid(s) would result in the sale of all of the Collateral Debt Securities (or the related Subpools constituting all of the Collateral Debt Securities) for a purchase price (paid in cash) which together with the balance of all Eligible Investments and
cash held by the Issuer (other than Eligible Investments and cash held in any Hedge Counterparty Collateral Account), together with the principal balance of any Subpools of Collateral Debt Securities that are not sold on or prior to such date, will
be at least equal to the sum of (x) the Total Senior Redemption Amount, plus (y) an amount equal to the greater of (1)(A) the aggregate original purchase price of the Preferred Shares on the Closing Date, minus (B) the
aggregate amount of all cash distributions on the Preferred Shares (whether in respect of dividends or redemption payments made to the Preferred Share Paying Agent for distribution to the Preferred Shareholders on or prior to the relevant Auction
Date) and (2) zero; and 
  
 (iv) subject to
the proviso in paragraph (ii) above, the Qualified Bidder(s) who offered the Highest Auction Price for the Collateral Debt Securities (or the related Subpools) enter(s) into a written agreement with the Issuer (which the Issuer shall execute if
the conditions set forth in (i) through (iii) of this Section 9.5 are satisfied, which execution shall constitute certification by the Issuer that such conditions have been satisfied) that obligates the highest bidder (or the highest
bidder for each Subpool) to purchase all of the Collateral Debt Securities (or the relevant Subpool) with the closing of such purchase (and full payment in Cash to the Trustee) to occur on or prior to the sixth Business Day following the relevant
Auction Date. 
  
 Provided that all of the conditions set forth in
clauses (i) through (iv) of this Section 9.5 have been met, the Collateral Manager shall sell and transfer, or shall instruct the Trustee to sell and transfer, the Collateral Debt Securities (or each related Subpool), without
representation, warranty or recourse, to such highest bidder (or the highest bidder for each Subpool, as the case may be) in accordance with and upon completion of the Auction Procedures. The Trustee shall deposit the purchase price for the
Collateral Debt Securities in the Collection Accounts and the Notes and, to the extent funds are available therefor, the Preferred Shares shall be redeemed on the Distribution Date immediately following the relevant Auction Date (such redemption, an
“Auction Call Redemption”) in accordance with the Priority of Payment. 
  
 If any of the foregoing conditions is not met with respect to any Auction, or if the highest bidder (or the highest bidder for any Subpool, as the case may be) fails to pay the purchase price on or before the sixth
Business Day following the relevant Auction Date (and, in the case of any credit support provider in connection with a sale described in paragraph (ii) above, the provider of such credit support shall default in its payment obligations
thereunder), (a) no Auction Call Redemption shall occur on the Distribution Date following the relevant Auction Date, (b) the Collateral Manager shall give notice to the Trustee of the withdrawal pursuant to 

  

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Section 9.3, (c) subject to clause (d) below, the Collateral Manager or the Trustee, as the case may be, shall decline to consummate such sale
and shall not solicit any further bids or otherwise negotiate any further sale of Collateral Debt Securities in relation to such Auction and (d) unless the Notes are redeemed in full prior to the next succeeding Auction Date, or the market
conditions are such that such Auction would not likely be successful, the Collateral Manager shall conduct another Auction on the next succeeding Auction Date. 
  

Section 9.6. Borrowing 
  
 (a) On the Closing Date, the Co-Issuers shall borrow U.S.$136,500,000 under the Class A-1 Notes pursuant to the Class A-1 Note Purchase
Agreement. On January 15, 2006, January 30, 2006, February 28, 2006 and thereafter on the 30th day of each month (or if any such day is not a Business Day, the next succeeding Business Day) during the Commitment Period,
additional amounts may be borrowed by the Co-Issuers under the Class A-1 Notes pursuant to the Class A-1 Note Purchase Agreement (a “Borrowing”) at the direction of the Collateral Manager acting pursuant to the Collateral
Management Agreement; provided, that (i) each applicable condition to such Borrowing specified in Section 4.2 of the Class A-1 Note Purchase Agreement is satisfied on the date of such Borrowing (a “Borrowing Date”),
(ii) in no event may the aggregate amount of Borrowings outstanding under the Class A-1 Notes exceed the aggregate amount of Commitments in respect of the Class A-1 Notes, (iii) at the time of and immediately after giving effect
to such Borrowing, no Default or Event of Default has occurred and is continuing or would result from such Borrowing and (iv) in connection with each Borrowing, the Issuer will issue and the Trustee will authenticate a Class A-1 Note in
the aggregate principal amount of the Borrowing. 
  
 (b) The
Co-Issuers shall be entitled to submit a Borrowing Request only once in each month after January 2006 and the date of any such Borrowing shall be January 15, 2006, January 30, 2006, February 28, 2006 or the 30th day of the
relevant month (or if any such day is not a Business Day, the next succeeding Business Day). 
  
 (c) On or prior to the fifth Business Day immediately preceding each Borrowing Date, the Collateral Manager on behalf of the Co-Issuers will provide notice to the Trustee of the Co-Issuers’ intentions to effect a
Borrowing. 
  
 (d) The Co-Issuers will duly and punctually perform
each of its obligations under the Class A-1 Note Purchase Agreement. 
  
 (e) Upon each funding of the Class A-1 Commitments, the outstanding principal amount of the Class A-1 Notes shall be increased by the amount of such funding in exchange for the reduction in the same amount
of the amount of the Class A-1 Commitments. 
  
 (f) On the
Commitment Period Termination Date, the entire Aggregate Undrawn Amount of the Class A-1 Notes (if any) will be reduced to zero. 
  
 Section 9.7. Redemption and Disposition of Combination Notes 
  
 Upon any redemption or disposition of Notes pursuant to this Article IX, each Combination Note with a Component of such
Notes will receive payment in respect of such 

  

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Notes. Thereafter, the Combination Notes will represent only such Component of such Notes that shall not have been redeemed. 
  
 ARTICLE X 
  
 ACCOUNTS, ACCOUNTINGS AND RELEASES 
  
 Section 10.1. Collection of Money 
  
 (a) Except as otherwise expressly provided herein, the Trustee may demand payment or delivery of, and shall receive and
collect, directly and without intervention or assistance of any fiscal agent or other intermediary, all Cash and other property payable to or receivable by the Trustee pursuant to this Indenture, including all payments due on the Pledged Securities,
in accordance with the terms and conditions of such Pledged Securities. The Trustee shall segregate and hold all such Cash and property received by it in trust for the Secured Parties and shall apply it as provided in this Indenture. 
  
 (b) Each of the parties hereto hereby agrees to cause the Custodian and any
other Securities Intermediary that holds any Cash or other property for the Co-Issuers in an Account to agree with the parties hereto that (x) each Account is a Securities Account in respect of which the Trustee is the Entitlement Holder,
(y) the Cash, Securities and other property credited to any Account is to be treated as a Financial Asset under Article 8 of the UCC and (z) the “securities intermediary’s jurisdiction” (within the meaning of
Section 8-110 of the UCC) for that purpose will be the State of New York. In no event may any Financial Asset held in any Account be registered in the name of, payable to the order of, or specially indorsed to, the Issuer unless such Financial
Asset has also been indorsed in blank or to the Custodian or other Securities Intermediary that holds such Financial Asset in such Account. Each Account shall be held and maintained at an office located in the State of New York. In addition, any
Account may include any number of sub-accounts deemed necessary or appropriate by the Trustee for convenience in administering such account. 
  
 Section 10.2. Principal Collection Account; Interest Collection Account; Custodial Account 
  
 (a) The Trustee shall, prior to the Closing Date, cause to be established a
Securities Account that shall be designated as the “Interest Collection Account,” which shall be held in the name of the Trustee as Entitlement Holder in trust for the benefit of the Secured Parties, into which the Trustee shall from time
to time deposit, in addition to the deposits required pursuant to Section 10.7(d), (i) all proceeds received from the disposition of any Collateral to the extent such proceeds constitute Interest Proceeds (unless simultaneously reinvested
pursuant to Section 10.2(f) in other Collateral Debt Securities, subject to the Collateral Debt Security Criteria and the Eligibility Criteria, or in Eligible Investments) and (ii) all other Interest Proceeds. 
  
 (b) The Trustee shall, prior to the Closing Date, cause to be established a
Securities Account that shall be designated as the “Principal Collection Account,” which shall be held in the name of the Trustee as Entitlement Holder in trust for the benefit of the Secured Parties, into which the Trustee shall from time
to time deposit, in addition to the deposits required pursuant to 

  

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Section 10.2(d), (i) all proceeds received from the disposition of any Collateral to the extent such proceeds constitute Principal Proceeds (unless
simultaneously reinvested in Eligible Investments) and (ii) all other Principal Proceeds. 
  
 (c) The Issuer may, but under no circumstances shall be required to, deposit or cause to be deposited from time to time such Cash in a Collection Account as it deems, in its sole discretion, to be advisable and by
notice to the Trustee may designate that such Cash is to be treated as Principal Proceeds or Interest Proceeds hereunder at its discretion. All Cash deposited from time to time in a Collection Account pursuant to this Indenture shall be held by the
Trustee as part of the Collateral and shall be applied to the purposes herein provided. The Collection Accounts shall remain at all times with a financial institution having a long-term debt rating of at least “BBB+” by Standard &
Poor’s, at least “Baa1” by Moody’s and at least “BBB+” by Fitch and capital and surplus of at least U.S.$200,000,000 and subject to supervision or examination by federal or state authority. 
  
 (d) All Distributions, any deposit required pursuant to Section 10.2(e)
and any net proceeds from the sale or disposition of a Collateral Debt Security or Equity Security received by the Trustee shall be immediately deposited into the Interest Collection Account or the Principal Collection Account, as the case may be
(unless, in the case of proceeds received from the sale or disposition of any Collateral, such proceeds are simultaneously reinvested pursuant to Section 10.2(f) in Eligible Investments), other than 50% of any interest payments on a semi-annual
interest paying security received in cash by the Issuer in any Due Period which will be deposited in the Semi-Annual Interest Reserve Account. Subject to Sections 10.2(f), 10.2(g) and 11.2, all amounts deposited in the Collection Accounts, together
with any securities in which funds included in such property are or will be invested or reinvested during the term of this Indenture, and any income or other gain realized from such investments, shall be held by the Trustee in the Collection
Accounts as part of the Collateral subject to disbursement and withdrawal as provided in this Section 10.2. By Issuer Order executed by an Authorized Officer of the Collateral Manager (which may be in the form of standing instructions), the
Issuer shall at all times direct the Trustee to, and, upon receipt of such Issuer Order, the Trustee shall, invest all funds received into the Collection Accounts during a Due Period, and amounts received in prior Due Periods and retained in the
Collection Accounts, as so directed in Eligible Investments. The Trustee, within one Business Day after receipt of any Distribution or other proceeds which are not Cash, shall so notify the Issuer and the Issuer shall, within five Business Days of
receipt of such notice from the Trustee, sell such Distribution or other proceeds for Cash in an arm’s-length transaction to a Person which is not an Affiliate of the Issuer or the Collateral Manager and deposit the proceeds thereof in the
Interest Collection Account or Principal Collection Account, as the case may be, for investment pursuant to this Section 10.2; provided, that the Issuer need not sell such Distributions or other proceeds if it delivers an Officer’s
certificate to the Trustee certifying that such Distributions or other proceeds constitute Collateral Debt Securities or Eligible Investments. 
  
 (e) If, prior to the occurrence of an Event of Default, the Issuer shall not have given any investment directions pursuant to Section 10.2(d), the
Trustee shall seek instructions from the Collateral Manager within three Business Days after transfer of such funds to a Collection Account. If the Trustee does not thereupon receive written instructions from the Issuer (or the Collateral Manager on
behalf of the Issuer) within five Business Days after transfer of such 

  

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funds to a Collection Account, it shall invest and reinvest the funds held in such Collection Account, as fully as practicable, but only in one or more
Eligible Investments of the type described in clause (d) of the definition thereof. After the occurrence of an Event of Default, the Trustee shall invest and reinvest such Monies as fully as practicable in Eligible Investments of the type
described in clause (d) of the definition thereof maturing not later than the earlier of (i) 30 days after the date of such investment or (ii) the Business Day immediately preceding the next Distribution Date. All interest and other
income from such investments shall be deposited into the applicable Collection Account in accordance with Sections 10.2(a) and (b), any gain realized from such investments shall be credited to the related Collection Account, and any loss resulting
from such investments shall be charged to the related Collection Account. Any gain or loss with respect to an Eligible Investment shall be allocated in such a manner as to increase or decrease, respectively, Principal Proceeds and/or Interest
Proceeds in the proportion which the amount of Principal Proceeds and/or Interest Proceeds used to acquire such Eligible Investment bears to the purchase price thereof. The Trustee shall not in any way be held liable by reason of any insufficiency
of a Collection Account resulting from any loss relating to any such investment. 
  
 (f) The Trustee shall transfer to the Payment Account for application pursuant to Section 11.1(a) and in accordance with the calculations and the instructions contained in the Note Valuation Report prepared by
the Issuer pursuant to Section 10.8(c), on or prior to the Business Day prior to each Distribution Date, any amounts then held in the Collection Accounts other than Interest Proceeds or Principal Proceeds received after the end of the Due
Period with respect to such Distribution Date (except for certain amounts that are received by the Issuer in respect of the Hedge Agreements on the Distribution Date related to such Due Period and which constitute Interest Proceeds or Principal
Proceeds); provided, that, to the extent that Principal Proceeds in the Principal Collection Account as of such date are in excess of the amounts required to be applied pursuant to the Priority of Payments up to and including the next
Distribution Date as shown in the Note Valuation Report with respect to such Distribution Date, the Issuer may direct the Trustee to retain such excess amounts in the Principal Collection Account and not to transfer such excess amounts to the
Payment Account. 
  
 (g) The Trustee shall apply amounts on
deposit in the Collection Accounts in accordance with any Redemption Date Statement delivered to the Trustee in connection with the redemption of Notes pursuant to Section 9.1. 
  
 (h) The Trustee shall, upon Issuer Order, apply amounts on deposit in the Interest Collection Account and Principal
Collection Account in accordance with Section 11.2. 
  
 (i)
The Trustee shall, prior to the Closing Date, cause the Custodian to establish a Securities Account that shall be designated as the “Custodial Account,” which shall be in the name of the Trustee as Entitlement Holder in trust for the
benefit of the Secured Parties and into which the Trustee shall from time to time deposit Collateral. All Collateral from time to time deposited in, or otherwise standing to the credit of, the Custodial Account pursuant to this Indenture shall be
held by the Trustee as part of the Collateral and shall be applied to the purposes herein provided. The Trustee agrees to give the Issuer immediate notice if the Custodial Account or any funds on deposit therein, or otherwise standing to the credit
of the Custodial Account, shall become subject to any writ, order judgment, warrant of attachment, 

  

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execution or similar process. Neither Co-Issuer shall have any legal, equitable or beneficial interest in the Custodial Account other than in accordance with
the Priority of Payments. 
  
 Section 10.3. Payment
Account 
  
 The Trustee shall, prior to the Closing Date,
establish a Securities Account that shall be designated as the “Payment Account,” which shall be held in the name of the Trustee as Entitlement Holder in trust for the benefit of the Secured Parties. Any and all funds at any time on
deposit in, or otherwise to the credit of, the Payment Account shall be held in trust by the Trustee for the benefit of the Secured Parties. Except as provided in Sections 11.1 and 11.2, the only permitted withdrawal from or application of funds on
deposit in, or otherwise standing to the credit of, the Payment Account shall be to pay the interest and the Commitment Fee on and the principal of the Notes in accordance with their terms and the provisions of this Indenture and, upon Issuer Order,
to pay administrative expenses and other amounts specified therein, each in accordance with the Priority of Payments. The Trustee agrees to give the Co-Issuers and the Hedge Counterparty immediate notice if the Payment Account or any funds on
deposit therein, or otherwise standing to the credit of the Payment Account, shall become subject to, any writ, order, judgment, warrant of attachment, execution or similar process. Neither Co-Issuer shall have any legal, equitable or beneficial
interest in the Payment Account other than in accordance with the Priority of Payments. The Payment Account shall remain at all times with a financial institution having a long-term debt rating of at least “BBB+” by Standard &
Poor’s, at least “Baa1” by Moody’s and at least “BBB+” by Fitch and capital and surplus of a least U.S.$200,000,000 and subject to supervision or examination by federal or state authority. 
  
 Section 10.4. Expense Account, Semi-Annual Interest Reserve Account,
Interest Reserve Account and First Distribution Date Reserve Account 
  
 (a) The Trustee shall, prior to the Closing Date, cause to be established a Securities Account that shall be designated as the “Expense Account” and a Securities Account which shall be designated as the
“Interest Reserve Account,” both of which shall be held in the name of the Trustee as Entitlement Holder in trust for the benefit of the Secured Parties. Any and all funds at any time on deposit in, or otherwise to the credit of, the
Expense Account or the Interest Reserve Account shall be held in trust by the Trustee for the benefit of the Secured Parties. Except as provided in Sections 11.1 and 11.2, the only permitted withdrawal from or application of funds on deposit in, or
otherwise standing to the credit of, the Expense Account shall be to pay (on any day other than a Distribution Date) accrued and unpaid administrative expenses of the Co-Issuers (other than fees and expenses of the Trustee and the Collateral
Management Fee, but including other amounts payable by the Issuer to the Collateral Manager under the Collateral Management Agreement or this Indenture). The only permitted withdrawal from or application of funds on deposit in, or otherwise standing
to the credit of, the Interest Reserve Account shall be in accordance with the terms of this Section 10.4(a). On the Closing Date, the Trustee shall deposit into the Expense Account an amount equal to U.S.$100,000 from the net proceeds received
by the Issuer on such date from the initial issuance of the Notes and the Preferred Shares. Thereafter, (i) the Trustee shall transfer to the Expense Account and the Interest Reserve Account from the Payment Account amounts required to be
deposited therein pursuant to Section 11.1(a) and, in accordance with the calculations and the instruction contained in the Note Valuation Report prepared by the Issuer pursuant to Section 10.8(c) and (ii) on each Distribution 

  

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Date on and prior to the Distribution Date in February 2009, U.S.$83,333.33 shall be deposited into the Interest Reserve Account, and on each Distribution
Date thereafter on which any Notes remain Outstanding and the amount on deposit in the Interest Reserve Account is not at least U.S.$1,000,000, 15% of the Interest Proceeds remaining following payment of interest on the Notes will be deposited into
the Interest Reserve Account until the amount on deposit therein equals U.S.$1,000,000 (after giving effect to such deposit). The Issuer shall, by Issuer Order executed by an Authorized Officer of the Collateral Manager, direct the Trustee to, and,
upon receipt of such Issuer Order, the Trustee shall, (i) transfer from the Interest Reserve Account to the Payment Account for application pursuant to Section 11.1(a) as Interest Proceeds (x) on each Distribution Date an amount equal to the
Shortfall Amount, if any, and (y) on the first Distribution Date on which there are no Notes Outstanding, all remaining amounts on deposit in the Interest Reserve Account and (ii) transfer all funds on deposit in the Expense Account, at the time
when substantially all of the Issuer’s assets have been sold or otherwise disposed of (as determined by the Collateral Manager), and deposit such funds into the Payment Account for application pursuant to Section 11.1(a) as Interest Proceeds on
the immediately succeeding Distribution Date. 
  
 (b) The Trustee
agrees to give the Co-Issuers and Hedge Counterparty immediate notice if the Expense Account or the Interest Reserve Account or any funds on deposit in either, or otherwise standing to the credit of the Expense Account or the Interest Reserve
Account, shall become subject to, any writ, order, judgment, warrant of attachment, execution or similar process. The Expense Account and the Interest Reserve Account shall remain at all times with a financial institution having a long-term debt
rating of at least “BBB+” by Standard & Poor’s, at least “Baa1” by Moody’s and at least “BBB+” by Fitch and capital and surplus of at least U.S.$200,000,000 and subject to supervision or examination by
federal or state authority. 
  
 (c) By Issuer Order executed by an
Authorized Officer of the Collateral Manager (which may be in the form of standing instructions), the Issuer shall at all times direct the Trustee to, and, upon receipt of such Issuer Order, the Trustee shall, invest all funds received into the
Expense Account or in the Interest Reserve Account during a Due Period, and amounts received in prior Due Periods and retained in the Expense Account or the Interest Reserve Account, as so directed in Eligible Investments. All interest and other
income from such investments shall be deposited in the Expense Account or the Interest Reserve Account, as applicable, any gain realized from such investments shall be credited to the Expense Account or the Interest Reserve Account, as applicable,
and any loss resulting from such investments shall be charged to the Expense Account or the Interest Reserve Account, as applicable. The Trustee shall not in any way be held liable by reason of any insufficiency of such Expense Account or Interest
Reserve Account resulting from any loss relating to any such investment. 
  
 (d) On the Closing Date, after payment of the organizational and structuring fees and expenses of the Issuer (including, without limitation, the legal fees and expenses of counsel to the Issuer, the Placement Agent
and the Collateral Manager) and the expenses of offering the Offered Securities, U.S.$550,000 from the proceeds of the offering of the Offered Securities will be deposited by the Trustee into a single, segregated account established hereunder on the
Closing Date by the Trustee and designated as the “First Distribution Date Reserve Account.” The only permitted withdrawal from or application of funds on deposit in, or otherwise standing to the credit of, the First Distribution Date
Reserve Account shall be as follows: at least one 

  

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Business Day prior to the first Distribution Date, the Trustee will transfer all amounts from the First Distribution Date Reserve Account to the Payment
Account for application (x) as Interest Proceeds on the first Distribution Date for distribution to the Holders of the Notes if, and only to the extent, necessary for such Noteholders to receive the accrued and unpaid interest due and payable
in respect of such Notes on such first Distribution Date pursuant to clauses (5) and (6) of Section 11.1(a)(i) and (y) to the extent that there are any amounts remaining after application as provided in the preceding clause (x),
for application as Interest Proceeds in accordance with the Priority of Payments. 
  
 (e) On the Closing Date, the Trustee will establish and maintain a single, segregated account designated as the “Semi-Annual Interest Reserve Account.” On any date upon which the Issuer receives interest
payments in cash in respect of semiannual interest paying securities, the Trustee will deposit 50% of such interest payments on semi-annual interest paying securities. At least one Business Day prior to each Distribution Date, the Trustee shall
transfer all amounts deposited in the Semi-Annual Interest Reserve Account on or prior to the Determination Date preceding the last Distribution Date preceding the last Distribution Date (including any interest accrued on any such amount) to the
Payment Account for application as Interest Proceeds in accordance with the Priority of Payments and such transfer shall be the only permitted withdrawal from, or application of funds on deposit in, or otherwise standing to the credit of, the
Semi-Annual Interest Reserve Account. 
  
 Section 10.5.
Uninvested Proceeds Account 
  
 The Trustee shall, prior to
the Closing Date, cause to be established a Securities Account which shall be designated as the “Uninvested Proceeds Account,” which shall be held in the name of the Trustee as Entitlement Holder in trust for the benefit of the Secured
Parties. On the Closing Date, the Trustee shall deposit therein all Uninvested Proceeds (other than the portion thereof that is (i) used by the Issuer to pay the organizational fees and other expenses of the Issuer incurred in connection with
the effectuation of the transactions contemplated by the Transaction Documents on the Closing Date (including, without limitation, the legal fees and expenses of counsel to the Issuer, the Placement Agent and the Collateral Manager), the expenses of
offering the Securities and (ii) deposited in the Expense Account on such date). The Issuer may, prior to the Ramp-Up Completion Date, use funds on deposit in the Uninvested Proceeds account to acquire Collateral Debt Securities in accordance
with the terms of Section 7.18. Prior to such use of such funds by the Issuer, the Collateral Manager on behalf of the Issuer may direct the Trustee to, and upon such direction the Trustee shall, invest funds in the Uninvested Proceeds Account
in Eligible Investments. All interest and other income from such investments shall be deposited in the Uninvested Proceeds Account, any gain realized from such investments shall be credited to the Uninvested Proceeds Account, and any loss resulting
from such investments shall be charged to the Uninvested Proceeds Account. The Trustee shall not in any way be held liable by reason of any insufficiency of such Uninvested Proceeds Account resulting from any loss relating to any such investment.
Investment earnings on Eligible Investments in the Uninvested Proceeds Account will be transferred to the Interest Collection Account, to be treated as Interest Proceeds, on or prior to the Ramp-Up Completion Date. Other than as set forth in the
preceding sentence, on or prior to the Ramp-Up Completion Date, the Trustee will transfer any Uninvested Proceeds remaining on deposit in the Uninvested Proceeds Account to the Interest Collection Account or the Payment Account at the Collateral
Manager’s 

  

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discretion (i) if a Ratings Confirmation has occurred, to the extent of Interest Excess to be treated as Interest Proceeds and the remainder to be
treated as Principal Proceeds, respectively, to be distributed in accordance with the Priority of Payments, and (ii) in the event of a Ramp-Up Ratings Confirmation Failure, to be treated as Uninvested Proceeds to the extent the Rating Agencies
require that Uninvested Proceeds be used to make payments in respect of principal on Notes and to be treated as Principal Proceeds, to be distributed in accordance with the Priority of Payments, to the extent such funds are in excess of the amount
of funds necessary to meet the requirements of the Rating Agencies. Promptly following the Ramp-Up Completion Date the Trustee shall cause the Uninvested Proceeds Account to be closed. 
  
 Section 10.6. Hedge Counterparty Collateral Account 
  
 The Trustee shall, prior to the Closing Date, cause to be established one or
more securities accounts, each of which shall be designated a “Hedge Counterparty Collateral Account,” which shall be held in the name of the Trustee as Entitlement Holder in trust for the benefit of the Secured Parties. The Trustee shall
deposit all collateral received from any Hedge Counterparty under any Hedge Agreement in the related Hedge Counterparty Collateral Account. Any and all funds at any time on deposit in, or otherwise standing to the credit of, a Hedge Counterparty
Collateral Account shall be held in trust by the Trustee for the benefit of the Secured Parties. The only permitted withdrawal from or application of funds on deposit in, or otherwise standing to the credit of, a Hedge Counterparty Collateral
Account shall be (i) for application to obligations of the relevant Hedge Counterparty to the Issuer under the relevant Hedge Agreement that are not paid when due (whether when scheduled or upon early termination) or (ii) to return
collateral to such Hedge Counterparty when and as required by the relevant Hedge Agreement (in each case as directed in writing by the Collateral Manager). The Trustee shall reinvest amounts in the Hedge Counterparty Collateral Account in Eligible
Investments in accordance with the terms of the related Hedge Agreement, upon and as set forth in written direction from the Collateral Manager, and shall have no liability for any such investments. The Trustee shall not be obligated to make any
such investment in the absence of such written instruction. 
  
 Section 10.7. Reports by Trustee 
  
 The
Trustee shall supply in a timely fashion to each Rating Agency, the Hedge Counterparty, the Issuer and the Collateral Manager any information regularly maintained by the Trustee that any Rating Agency, the Issuer, the Hedge Counterparty or the
Collateral Manager may from time to time request with respect to the Pledged Securities, the Interest Collection Account, the Principal Collection Account, the Payment Account, the Expense Account, the Hedge Counterparty Collateral Account or the
Interest Reserve Account reasonably needed to complete the Note Valuation Report or to provide any other information reasonably available to the Trustee by reason of its acting as Trustee hereunder and required to be provided by Section 10.9 or
to permit the Collateral Manager to perform its obligations under the Collateral Management Agreement. The Trustee shall forward to the Collateral Manager and to any Holder of a Note shown on the Note Register, the Hedge Counterparty or any
Preferred Shareholder upon request therefor, copies of notices and other writings received by it from the issuer of any Collateral Debt Security or from any Clearing Agency with respect to any Collateral Debt Security advising the holders of such
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respect thereto (including notices of calls and redemptions of securities) as well as all periodic financial reports received from such issuer and Clearing
Agencies with respect to such issuer; provided, that the Trustee shall not disclose any unpublished Rating assigned by any Rating Agency with respect to any Collateral Debt Security without the prior consent of such Rating Agency. The Trustee
shall provide access at the Trustee’s website to each Monthly Report and Note Valuation Report electronically to Standard & Poor’s, Moody’s and Fitch. 
  
 The Trustee shall, so long as any Class of Notes and Preferred Shares is listed on the Irish Stock Exchange, notify the
Irish Stock Exchange not later than the second Business Day preceding each Distribution Date of the amount of principal payments to be made on the Notes of each Class on such Distribution Date, the amount of any Class C Deferred Interest in respect
of the Class C Notes, the amount of any Class D Deferred Interest in respect of the Class D Notes, the amount of any Class E Deferred Interest in respect of the Class E Notes, the Aggregate Outstanding Principal Amount of the Notes of each Class and
as a percentage of the original Aggregate Outstanding Principal Amount of the Notes of such Class after giving effect to the principal payments, if any, on such Distribution Date and the distributions of dividends on the Preferred Shares on such
Distribution Date. 
  
 Section 10.8. Accountings

  
 (a) Monthly. Not later than the eighth Business Day
after the last day of each month (except for months preceding a month in which a Distribution Date occurs, in which case delivery shall occur in conjunction with delivery of the Note Valuation Report) commencing with the eighth Business Day after
the last day of April 2006, the Issuer shall compile and provide to each Rating Agency, the Trustee, the Collateral Manager, the Repository and each Transfer Agent and, upon written request therefor, any Holder of a Note shown on the Note Register,
the Hedge Counterparty, any Certifying Person and any Preferred Shareholder a monthly report (the “Monthly Report”). The Monthly Report shall contain the following information and instructions with respect to the Pledged Securities
included in the Collateral, determined as of the last day of such calendar month or, in the case of a calendar month in which a Distribution Date occurs, the Determination Date relating to such Distribution Date: 
  
 (1) (x) the Aggregate Principal Balance of all Collateral
Debt Securities, together with a calculation, in reasonable detail, of the sum of (A) the Aggregate Principal Balance of all Collateral Debt Securities (other than Defaulted Securities and Deferred Interest Collateral Debt Securities), plus (B) with
respect to each Defaulted Security or Deferred Interest Collateral Debt Security, the Calculation Amount of such Defaulted Security or Deferred Interest Collateral Debt Security and (y) the Aggregate Principal Balance of all Collateral Debt
Securities on the Ramp-Up Completion Date; 
  
 (2) the Balance of all Eligible Investments and Cash in each of the Interest Collection Account, the Principal Collection Account, the Expense Account and the Interest Reserve Account; 
  
 (3) the nature, source and amount of any proceeds in the
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received since the date of determination of the last Monthly Report or, in the case of the first Monthly Report, since the Ramp-Up Completion Date;

  
 (4) with respect to each Collateral Debt
Security and each Eligible Investment that is part of the Collateral, its Principal Balance, annual interest rate, Stated Maturity and issuer thereof; 
  
 (5) the identity of each Collateral Debt Security that was sold or disposed of pursuant to Section 12.1 indicating whether such
Collateral Debt Security is a Defaulted Security, Credit Risk Security or Equity Security (as reported in writing to the Issuer by the Collateral Manager) and whether such Collateral Debt Security was sold pursuant to Section 12.1(a)(i),
(ii) or (iii) or Granted to the Trustee since the date of determination of the most recent Monthly Report or, in the case of the first Monthly Report, since the Closing Date; 
  
 (6) the identity of each Collateral Debt Security that has become a Defaulted Security, Deferred Interest
Collateral Debt Security, Credit Risk Security or Equity Security since the date of determination of the last Monthly Report or, in the case of the first Monthly Report, since the Ramp-Up Completion Date; 
  
 (7) the identity of each Collateral Debt Security, the
related Real Estate Entity of which failed to satisfy any two of the three REIT/REOC Coverage Tests as of the date of determination of the last Monthly Report or, in the case of the first Monthly Report, since the Ramp-Up Completion Date.

  
 (8) the Aggregate Principal Balance of all
Collateral Debt Securities that have a Stated Maturity later than the Stated Maturity of the Notes; 
  
 (9) the Aggregate Principal Balance of (A) all Fixed Rate Collateral Debt Securities, (B) all Floating Rate Collateral Debt
Securities, (C) all Deemed Fixed Rate Collateral Debt Securities and (D) all Deemed Floating Rate Collateral Debt Securities; 
  
 (10) the Aggregate Principal Balance of all Trust Preferred Securities; 
  
 (11) the Aggregate Principal Balance of all Subordinated Notes; 
  
 (12) the Aggregate Principal Balance of all Primary Senior
Notes and the Aggregate Principal Balance of all Secondary Senior Notes; 
  
 (13) the Aggregate Principal Balance of all CMBS; 
  
 (14) the Aggregate Principal Balance of all Collateral Debt Securities that provide for periodic payments of interest in Cash less
frequently than quarterly; 
  

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 (15) the Weighted Average Spread, the Weighted Average Hybrid Coupon and the Weighted
Average Coupon of the Collateral Debt Securities; 
  
 (16) a calculation in reasonable detail necessary to determine compliance with each Coverage Test, and, in the case of each Overcollateralization Test, a calculation of the Class A/B Overcollateralization Ratio, the Class C
Overcollateralization Ratio, the Class D Overcollateralization Ratio and the Class E Overcollateralization Ratio and, in the case of each Interest Coverage Test, a calculation of the Class A/B Interest Coverage Ratio, the Class C Interest Coverage
Ratio, the Class D Interest Coverage Ratio and the Class E Interest Coverage Ratio; 
  
 (17) a calculation in reasonable detail necessary to determine compliance with the REIT/REOC Coverage Test; 
  
 (18) the occurrence of any REIT/REOC Trigger Event and the
identity of the related Real Estate Entity and Collateral Debt Security; 
  
 (19) the respective percentage of the Net Outstanding Portfolio Collateral Balance for each aggregate amount referred to in clauses (7) through (14) above; 
  
 (20) calculation in reasonable detail necessary to determine
compliance with the Standard & Poor’s CDO Monitor Test; and 
  
 (21) any changes to the identity of the Hedge Counterparty. 
  
 Upon receipt of each Monthly Report, the Trustee (so long as it is not also acting as the Collateral Administrator) shall compare the information contained therein to the information contained in its records with
respect to the Collateral and shall, within three Business Days after receipt of such Monthly Report, notify the Issuer and the Collateral Manager if the information contained in the Monthly Report does not conform to the information maintained by
the Trustee with respect to the Collateral. In the event that any discrepancy exists, the Trustee, the Issuer and the Collateral Manager shall attempt to resolve the discrepancy. If such discrepancy cannot be promptly resolved, the Trustee shall
within five Business Days cause the Independent accountants appointed by the Issuer pursuant to Section 10.9 to review such Monthly Report and the Trustee’s records to determine the cause of such discrepancy. If such review reveals an
error in the Monthly Report or the Trustee’s records, the Monthly Report or the Trustee’s records shall be revised accordingly and, as so revised, shall be utilized in making all calculations pursuant to this Indenture. 
  
 On or prior to the Ramp-Up Completion Date and together with each Monthly
Report, the Issuer shall provide to S&P the Excel CDO Monitor Input File and, with respect to each Collateral Debt Security, the name of each obligor thereon, the CUSIP number thereof (if applicable) and the S&P Priority Category thereof.

  
 (b) Ramp-Up Completion Date Report. Not later than the
seventh Business Day after the Ramp-Up Completion Date, the Issuer shall compile and provide to each Rating Agency, the 

  

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Trustee, the Collateral Manager, each Hedge Counterparty and each Transfer Agent and, upon written request therefor, any Holder of a Note shown on the Note
Register, any Certifying Person and any Preferred Shareholder a report (the “Ramp-Up Completion Date Report”) that contains the information set forth in Section 10.9(a) above, determined as of the Ramp-Up Completion Date;
provided, that any reference in Section 10.9(a) to the date of determination of the last Monthly Report or any similar reference shall be deemed to be a reference to the Closing Date for purposes of such report. 
  
 (c) Distribution Date Accounting. The Issuer shall render an
accounting (“Note Valuation Report”), determined as of each Determination Date, and deliver the Note Valuation Report to each Rating Agency, the Trustee, the Collateral Manager, the Repository, each Transfer Agent, the Hedge Counterparty
and, upon written request therefor, any Holder of a Note shown on the Note Register, any Certifying Person and any Preferred Shareholder, not later than the Business Day preceding the related Distribution Date. The Note Valuation Report shall
contain the following information (determined, unless otherwise specified below, as of the related Determination Date): 
  
 (1) the Aggregate Outstanding Principal Amount of the Notes of each Class and as a percentage of the original Aggregate Outstanding
Principal Amount of the Notes of such Class on the first day of the immediately preceding Interest Period, the amount of principal payments to be made on the Notes of each Class on the next Distribution Date, the amount of any Class C Deferred
Interest, if any, the amount of any Class D Deferred Interest, if any, the amount of any Class E Deferred Interest, if any, and the Aggregate Outstanding Principal Amount of the Notes of each Class and as a percentage of the original Aggregate
Outstanding Principal Amount of the Notes of such Class after giving effect to the principal payments, if any, on the next Distribution Date; 
  
 (2) the Interest Distribution Amount and the Commitment Fee payable to the Holders of the Notes for the related Distribution Date (in the
aggregate and by Class) and the amount payable to Holders of Preferred Shares for such Distribution Date; 
  
 (3) the Note Interest Rate for each Class of Notes for the Interest Period preceding the next Distribution Date; 
  
 (4) the administrative expenses payable on an itemized basis
on the next Distribution Date; 
  
 (5) for the
Interest Collection Account: 
  
 (a) the Balance
on deposit in the Interest Collection Account at the end of the related Due Period; 
  
 (b) the amounts payable from the Interest Collection Account pursuant to Section 11.1(a)(i) on the next Distribution Date; and

  

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 (c) the Balance remaining in the Interest Collection Account immediately after all
payments and deposits to be made on such Distribution Date; 
  
 (6) for the Principal Collection Account: 
  
 (a) the Balance on deposit in the Principal Collection Account at the end of the related Due Period; 
  
 (b) the amounts payable from the Principal Collection Account pursuant to Section 11.1(a)(ii) on the next Distribution Date; and

  
 (c) the Balance remaining in the Principal
Collection Account immediately after all payments and deposits to be made on such Distribution Date; 
  
 (7) the Balance on deposit in the Expense Account, the Hedge Counterparty Collateral Account and the Interest Reserve Account at the end
of the related Due Period; 
  
 (8) the Base
Collateral Management Fee and Subordinate Collateral Management Fee (if any) payable on the next Distribution Date; 
  
 (9) an Excel CDO Monitor Input File to Standard & Poor’s at the end of the related Due Period; and 
  
 (10) the Hedge Receipt Amount or Hedge Payment Amount for
its related Distribution Date. 
  
 Each Note Valuation Report
shall contain instructions to the Trustee to withdraw on the related Distribution Date from the Payment Account and pay or transfer amounts set forth in such report in the manner specified, and in accordance with the priorities established in,
Section 11.1(a). 
  
 In addition to the Note Valuation
Report, upon the written request of any Holder of a Note shown on the Note Register or any Rating Agency, the Issuer shall deliver to such Holder or Rating Agency, as the case may be, a report containing the number and identity of each Collateral
Debt Security held by the Issuer on the last day of the Due Period most recently ended (indicating whether any such Collateral Debt Security is a Defaulted Security or Deferred Interest Collateral Debt Security (as reported in writing to the Trustee
by the Collateral Manager)). 
  
 In addition to the foregoing
information, each Note Valuation Report shall include a statement to the following effect: 
  
 In order to comply with certain exemptions from registration requirements under the United States Investment Company Act of 1940, as amended (the “Investment Company Act”), the Indenture pursuant to which
the Notes were 

  

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issued requires that each Holder of a Note issued by the Co-Issuers (or any beneficial interest therein) be both a “Qualified Purchaser,” as
defined in Section 2(a)(51) of the Investment Company Act, and a Qualified Institutional Buyer, as defined in Rule 144A under the Securities Act. Under the Investment Company Act, each of the Co-Issuers or an agent acting on their behalf must
have a “reasonable belief” that each holder of its outstanding securities that is a U.S. Person, including transferees, is a Qualified Purchaser, and the Co-Issuers must exercise reasonable care to ensure that each holder of its
outstanding securities, including transferees, that is a U.S. Person is a Qualified Institutional Buyer. Consequently, and as a result of the restrictions contained in the Indenture, each resale of a Note in the United States or to a U.S. Person
must be made pursuant to Rule 144A or another exemption from the registration requirements under the United States Securities Act of 1933, as amended, solely to a purchaser that is both a Qualified Institutional Buyer and a Qualified Purchaser. Each
transferee of a beneficial interest in a Restricted Global Note will be deemed to represent at the time of purchase that: (a) the purchaser is both a Qualified Purchaser and a Qualified Institutional Buyer; (b) the transferee and each
account for which it is purchasing is required to hold and transfer at least the minimum denominations of the Notes, specified in the Indenture and (c) the purchaser will provide written notice of the foregoing, and of any applicable
restrictions on transfer, to any transferee. 
  
 The Co-Issuers
direct that the recipient of this notice, and any recipient of a copy of this notice, provide a copy to any person having an interest in the Note, with respect to which this Note Valuation Report is delivered, as indicated on the books of The
Depository Trust Company or on the books of a participant in The Depository Trust Company or on the books of an indirect participant for which such participant in The Depository Trust Company acts as agent. 
  
 If, notwithstanding the restrictions on transfer set forth in the Indenture,
either of the Co-Issuers determines that any beneficial owner of a Class A Note, Class B Note, Class C Note, Class D Note or Class E Note (or any interest therein) (A) is a U.S. Person and (B) was not both a Qualified Purchaser and a
Qualified Institutional Buyer at the time of its acquisition thereof, then either of the Co-Issuers may require, by notice to such holder, that such holder sell all of its right, title and interest in such Note (or interest therein) to a Person that
is both a Qualified Purchaser and a Qualified Institutional Buyer with such sale to be effected within 30 days after notice of such sale requirement is given. If such beneficial owner fails to effect the transfer required within such 30-day period,
(i) upon direction from the Issuer, the Trustee (on behalf of and at the expense of the Issuer) shall cause such beneficial owner’s interest in such Note to be transferred in a commercially reasonable sale (conducted by the Trustee in
accordance with Section 9-610(b) of the Uniform Commercial Code as in effect in the State of New York) to a person that certifies to the Trustee, the Co-Issuers and the Collateral Manager, in connection with such transfer, that such person is
both a Qualified Purchaser and a Qualified Institutional Buyer and (ii) pending such 

  

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transfer, no further payments will be made in respect of such Note held by such beneficial owner. 
  
 (d) Section 3(c)(7) Reminder Notice. Pursuant to
Section 7.20, the Trustee on behalf of the Issuer shall provide to each Holder, in conjunction with the Note Valuation Report delivered pursuant to Section 10.8(c), a Section 3(c)(7) Reminder Notice. 
  
 (e) Redemption Date Instructions. Not less than five Business Days
after receiving an Issuer Request requesting information regarding a redemption pursuant to Section 9.1 of the Notes of a Class as of a proposed Redemption Date set forth in such Issuer Request, the Trustee shall provide the necessary
information (to the extent it is available to the Trustee) to the Co-Issuers and the Hedge Counterparty, and the Issuer shall compute the following information and provide such information in a statement (the “Redemption Date Statement”)
delivered to the Trustee: 
  
 (i) the Aggregate
Outstanding Principal Amount of the Notes of the Class or Classes to be redeemed as of such Redemption Date; 
  
 (ii) the amount of accrued interest and the Commitment Fee due on such Notes as of the last day of the Interest Period immediately
preceding such Redemption Date; and 
  
 (iii) the
amount in the Interest Collection Account, the Principal Collection Account, the Interest Reserve Account, the Expense Account and the Payment Account available for application to the redemption of such Notes. 
  
 (f) If the Trustee shall not have received any accounting provided for in
this Section on the first Business Day after the date on which such accounting is due to the Trustee, the Trustee shall use reasonable efforts to cause such accounting to be made by the applicable Distribution Date or Redemption Date. To the extent
the Trustee is required to provide any information or reports pursuant to this Section 10.6 as a result of the failure of the Issuer to provide such information or reports, the Trustee shall be entitled to retain an Independent certified public
accountant in connection therewith at the expense of the Issuer. 
  
 (g) Appointment of Agent. The Issuer may appoint an administrator or other agent to prepare reports pursuant to this Section 10.6 and certain calculations related thereto. 
  
 (h) Annual Reports to Fitch and Moody’s. Not later than the fifth
Business Day preceding each Distribution Date occurring in November of each year, the Issuer (or the Collateral Manager on the Issuer’s behalf) shall deliver or cause to be delivered to Fitch and Moody’s (i) a list containing the name
and regulatory identification number of each Collateral Debt Securities Issuer and (ii) in the case of each Collateral Debt Securities Issuer that does not file public financial reports, such financial information regarding such Collateral Debt
Securities Issuer as Fitch or Moody’s may reasonably request (including but not limited to, the identity of each Collateral Debt Security, the related Real Estate Entity of which does not include an unqualified accountant’s letter in its
audited financial statements). 
  

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 (i) Posting of Reports on Repository. Each of the Co-Issuers, the Trustee and the Collateral
Manager acknowledges and agrees that each Monthly Report and Note Valuation Report shall be posted to the Repository for use in the manner provided in the Repository. In connection therewith, the Issuer agrees to deliver or otherwise make available
each Monthly Report and Note Valuation Report to the operator of the Repository for posting on the Repository. 
  
 Section 10.9. Release of Securities 
  
 (a) If no Event of Default has occurred and is continuing, and subject to Section 12, the Issuer may, by Issuer Order executed by an Authorized
Officer of the Collateral Manager and delivered to the Trustee at least two Business Days prior to the settlement date for any sale of a security certifying that the conditions set forth in Section 12.1 are satisfied, direct the Trustee to
release such security from the lien of this Indenture against receipt of payment therefor. 
  
 (b) The Issuer may, by Issuer Order executed by an Authorized Officer of the Collateral Manager and delivered to the Trustee at least two Business Days prior to the date set for redemption or payment in full of a
Pledged Security, certifying that such security is being redeemed or paid in full, direct the Trustee or, at the Trustee’s instructions, the Custodian to deliver such security, if in physical form, duly endorsed, or, if such security is a
Clearing Corporation Security, to cause it to be presented, to the appropriate paying agent therefor on or before the date set for redemption or payment, in each case against receipt of the redemption price or payment in full thereof. 
  
 (c) If no Event of Default has occurred and is continuing, and subject to
Section 12, the Issuer may, by Issuer Order executed by an Authorized Officer of the Collateral Manager and delivered to the Trustee or, at the Trustee’s instructions, the Custodian, at least two Business Days prior to the date set for an
exchange, tender or sale, certifying that a Collateral Debt Security is subject to an Offer and setting forth in reasonable detail the procedure for response to such Offer, direct the Trustee to deliver such security, if in physical form, duly
endorsed, or, if such security is a Clearing Corporation Security, to cause it to be delivered, in accordance with such Issuer Order, in each case against receipt of payment therefor. 
  
 (d) The Trustee shall deposit any proceeds received by it from the disposition of a Pledged Security in the Interest
Collection Account or the Principal Collection Account, as the case may be, unless simultaneously applied to the purchase of other Collateral Debt Securities or Eligible Investments as permitted under and in accordance with requirements of
Section 12 and this Section 10.10. 
  
 (e) The Trustee
shall, upon receipt of an Issuer Order at such time as there are no Notes Outstanding (and the Commitment Period Termination Date has occurred) and all obligations of the Co-Issuers hereunder have been satisfied, release the Collateral from the lien
of this Indenture. 
  
 (f) The Issuer may retain agents (including
the Collateral Manager) to assist the Issuer in preparing any notice or other report required under this Section 10.10. 
  

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 Section 10.10. Reports by Independent Accountants 
  
 (a) At the Closing Date the Issuer shall appoint a firm of Independent
certified public accountants of recognized international reputation for purposes of preparing and delivering the reports or certificates of such accountants required by this Indenture. Upon any resignation by such firm, the Issuer shall promptly
appoint by Issuer Order delivered to the Trustee, the Hedge Counterparty and each Rating Agency a successor thereto that shall also be a firm of Independent certified public accountants of recognized international reputation. If the Issuer shall
fail to appoint a successor to a firm of Independent certified public accountants which has resigned within 30 days after such resignation, the Issuer shall promptly notify the Trustee of such failure in writing. If the Issuer shall not have
appointed a successor within ten days thereafter, the Collateral Manager shall promptly appoint a successor firm of Independent certified public accountants of recognized national reputation. The fees of such Independent certified public accountants
and its successor shall be payable by the Issuer as provided in Section 11.1. 
  
 (b) On or before March 31 of each year (commencing with March 31, 2007), the Issuer shall cause to be delivered to the Trustee, the Collateral Manager and each Rating Agency an Accountants’ Report
specifying the procedures applied and their associated findings with respect to the Monthly Reports prepared in the month in which a Distribution Date occurs, the Ramp-Up Completion Date Report, the Note Valuation Reports and any Redemption Date
Statements prepared in the preceding year. At least 90 days prior to the Distribution Date in February 2007 (and, if at any time a successor firm of Independent certified public accountants is appointed, to the Distribution Date following the date
of such appointment), the Issuer shall deliver to the Trustee an Accountants’ Report specifying in advance the procedures that such firm will apply in making the aforementioned findings throughout the term of its service as accountants to the
Issuer. The Trustee shall promptly forward a copy of such Accountants’ Report to the Hedge Counterparty and each Holder of Notes of the Controlling Class, at the address shown on the Note Register. The Issuer shall not approve the institution
of such procedures if a Majority of the Controlling Class, by notice to the Issuer and the Trustee within 30 days after the date of the related notice to the Trustee, object thereto. 
  
 (c) Any statement delivered to the Trustee pursuant to clause (b) above shall be delivered by the Trustee to any Holder
of a Note shown on the Note Register or the Hedge Counterparty upon written request therefor. 
  
 Section 10.11. Reports to Rating Agencies, Etc. 
  
 In addition to the information and reports specifically required to be provided to the Rating Agencies and the Hedge Counterparty pursuant to the terms of this Indenture or the Hedge Agreements (as the case may be),
the Issuer shall provide or procure the provision to the Rating Agencies and the Hedge Counterparty of (a) all information or reports delivered to the Trustee hereunder, (b) such additional information as the Rating Agencies or the Hedge
Counterparty may from time to time reasonably request and such information may be obtained and provided without unreasonable burden or expense, (c) prompt notice of any decision of the Collateral Manager to agree to any consent, waiver or
amendment to any Underlying Instrument that modifies the cash flows of any Collateral Debt Security, (d) notice of any waiver given 

  

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pursuant to Section 5.14, (e) notice of an Event of Default, (f) notice of full or partial redemption of the Notes, (g) notice of a
breach of the terms of any Transaction Document by any of the parties thereto and (h) notice of any termination, substitution or other replacement of any party thereto. The Issuer shall promptly notify the Trustee, the Hedge Counterparty and
the Collateral Manager if the rating of any Class of Notes has been, or it is known by the Issuer that such rating will be, changed or withdrawn. In addition, as of the Ramp-Up Completion Date, the Collateral Manager shall deliver to Moody’s
and Fitch the geographic breakdown of the Collateral Debt Securities. In addition, the Collateral Manager shall provide to Fitch and Moody’s the identity and name of each Collateral Debt Securities Issuer with respect to each Trust Preferred
Security, each Subordinated Note and each Primary Senior Note included in the Trust Estate. 
  
 Section 10.12. Tax Matters 
  
 (a) Each Holder of Notes agrees to treat such Notes as indebtedness solely of the Issuer for U.S. federal, state and local income tax purposes and further agrees not to take any action inconsistent with such treatment. 
  
 (b) The Issuer agrees not to elect to be treated as other than a corporation
for U.S. federal income tax purposes. 
  
 (c) The Issuer shall
file for each of its taxable years a protective U.S. federal income tax return as described in section 1.882-4(a)(3)(vi) of the Treasury regulations. The Issuer shall not file, or cause to filed, any income or franchise tax return in any state of
the United States unless it has obtained an Opinion of Counsel prior to such filing that, under the laws of such jurisdiction, the Issuer is required to file such income or franchise tax return. 
  
 Section 10.13. Posting of Documents on Repository 
  
 (a) Any document required to be delivered to the Repository by the Issuer
pursuant to this Indenture shall be delivered or otherwise made available within three months of the Closing Date to the Repository by electronic mail as a PDF (portable document format) file to the following address (or such other address as may be
provided in writing from time to time by the operator of the Repository to the Trustee): 
  
 CDO Library 
 c/o The Bond Market Association 
 360 Madison Avenue (18th Floor) 
 New York, NY
10017 
 Electronic mail address: admin@cdolibrary.com 
  
 The Issuer shall be identified in the electronic mail message that accompanies the delivery of any document. The Issuer
shall also follow the following instructions in converting the document to a PDF file; 
  
 (i) the PDF file shall be made from the original document by printing directly from the application in which the document was created
(Microsoft Word, Quark Xpress, etc.) or by using Adobe Acrobat Distiller; 
  

 165 

 (ii) all fonts shall be embedded when converting the original document to a PDF file; and

  
 (iii) the PDF file shall not be made from
scanned pages (because making the PDF file from a scanned page would result in a much larger file size than printing directly from the application in which the original document was created). 
  
 (b) Any document required to be made available to the operator of the
Repository by the Issuer may be made available by providing the operator of the Repository with access to a website containing such report in a format that permits the user to download the document as a PDF file. 
  
 Section 10.14. Consent to Posting of Documents on Repository

  
 (a) The Issuer hereby consents to (a) the posting of the
final Offering Circular, this Indenture and the confirmations relating to interest rate swaps and interest rate caps and the periodic reports to be delivered pursuant to the Transaction Documents and any amendments or other modifications thereto on
the Repository for use in the manner provided in the Repository; and (b) the display of its name on the Repository in connection therewith. 
  
 (b) Notwithstanding anything herein to the contrary, none of the Issuer, the Co-Issuer or the Trustee makes any representation or warranty to The Bond
Market Association (or any successor thereto) or any affiliate thereof or any Person having or obtaining access to the information maintained in the Repository or to any of such Person’s affiliates regarding the accuracy or completeness of any
information, document, report or other communication transmitted to the Repository, and no Person having or obtaining access to the information maintained in the Repository shall have any rights under this Indenture or any other Transaction
Document, or otherwise by reason of the transmission of any such information, document, report or other communication to the Repository. 
  
 ARTICLE XI 
  
 APPLICATION OF MONIES 
  
 Section 11.1. Disbursements of Monies from Payment Account 
  
 (a) Notwithstanding any other provision in this Indenture, but subject to the other clauses of this Section 11 and Section 13.1, on each
Distribution Date, the Trustee shall disburse amounts transferred to the Payment Account from the Collection Accounts pursuant to Section 10.2(f) as follows and for application by the Trustee in accordance with the following priorities (the
“Priority of Payments”): 
  
 (i) On
each Distribution Date, Interest Proceeds with respect to the related Due Period will be applied in the order of priority set forth below: 
  
 (1) to the payment of taxes and filing and registration fees owed by the Issuer, if any; 
  

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 (2) (a) first, to the payment, in the following order, to the Trustee, the
Preferred Share Paying Agent, the Note Registrar and the Collateral Administrator of accrued and unpaid fees, expenses and other amounts owing to them under this Indenture, the Preferred Share Paying Agency Agreement and the Collateral
Administration Agreement, as applicable; (b) second, to the payment of all other accrued and unpaid Administrative Expenses of the Issuer (excluding fees and expenses described in clause (a) above, the Collateral Management Fee and
principal of and interest on the Notes but including other amounts for which the Collateral Manager may claim reimbursement pursuant to the Collateral Management Agreement); provided, that all payments made pursuant to this clause (b) on
such Distribution Date, together with amounts disbursed from the Expense Account during the Due Period corresponding to such Distribution Date, do not exceed U.S.$100,000; and (c) third, after application of the amounts under clauses
(a) and (b) of this paragraph (2) and if such date is not the Stated Maturity or a Redemption Date, if the balance of all Eligible Investments and cash in the Expense Account on the related Determination Date is less than
U.S.$100,000, for deposit to the Expense Account an amount equal to such amount as will cause the balance of all Eligible Investments and cash in the Expense Account immediately after such deposit to equal U.S.$100,000; 
  
 (3) to the payment to the Collateral Manager of accrued and
unpaid Base Collateral Management Fee; 
  
 (4) to
the payment of any Hedge Payment Amounts scheduled to be paid to the Hedge Counterparty by the Issuer pursuant to the Hedge Agreements, together with any Qualified Termination Payments, in each case net of any payments to be received from the Hedge
Counterparty pursuant to the Hedge Agreements; 
  
 (5) to the payment of, first, accrued and unpaid interest on the Class A-1 Notes, and the Commitment Fee on the Class A-1 Notes, and second, accrued and unpaid interest on the Class A-2 Notes, and third,
accrued and unpaid interest on the Class A-3 Notes (including, in each case, Defaulted Interest and any interest thereon); 
  
 (6) to the payment of accrued and unpaid interest on the Class B Notes, pro rata (including Defaulted Interest and interest
thereon, if any). 
  
 (7) (a) if either
Class A/B Coverage Test is not satisfied on the related Determination Date and if any Class A Note or Class B Note remains outstanding, to the payment of principal of, first, the Class A-1 Notes, second, the Class A-2
Notes, third, the Class A-3 Notes, and fourth, the Class B Notes, pro rata, to the extent necessary to cause each of the Class A/B Coverage Tests to be satisfied on the related Determination Date, and (b) on the first
Distribution Date, if a Ramp-Up Ratings Confirmation Failure has occurred, in the event that the Issuer is unable to obtain a Ratings Confirmation after the application of Uninvested Proceeds and Interest Proceeds to pay principal of the Notes, to
the payment of 

  

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principal of, first, the Class A-1 Notes, second, the Class A-2 Notes, third, the Class A-3 Notes, and fourth, the
Class B Notes, pro rata, to the extent specified by each Rating Agency in order to obtain a Ratings Confirmation; 
  
 (8) to the payment of accrued and unpaid interest on the Class C Notes, pro rata (including Defaulted Interest and interest
thereon, if any, but excluding any Class C Deferred Interest); 
  
 (9) (a) if either Class C Coverage Test is not satisfied on the related Determination Date and if any Notes remain outstanding, to the payment of principal of, first, the Class A-1 Notes,
second, the Class A-2 Notes, third, the Class A-3 Notes, fourth, the Class B Notes, pro rata, and fifth, the Class C Notes, pro rata, to the extent necessary to cause each of the Class C Coverage
Tests to be satisfied on the related Determination Date, and (b) on the first Distribution Date, if a Ramp-Up Ratings Confirmation Failure has occurred, in the event that the Issuer is unable to obtain a Ratings Confirmation after the
application of Uninvested Proceeds and Interest Proceeds to pay principal of the Notes, to the payment of principal of, first, the Class A-1 Notes, second, the Class A-2 Notes, third, the Class A-3 Notes,
fourth, the Class B Notes, pro rata, and, fifth, the Class C Notes, pro rata, to the extent specified by Standard & Poor’s and Fitch in order to obtain a Ratings Confirmation; 
  
 (10) to the payment of accrued and unpaid interest on the
Class D Notes, pro rata (including Defaulted Interest and interest thereon, if any, but excluding any Class D Deferred Interest); 
  
 (11) (a) if either Class D Coverage Test is not satisfied on the related Determination Date and if any Notes remain outstanding, to
the payment of principal of, first, the Class A-1 Notes, second, the Class A-2 Notes, third, the Class A-3 Notes, fourth, the Class B Notes, pro rata, fifth, the Class C Notes, pro
rata, and, sixth, the Class D Notes, pro rata, to the extent necessary to cause each of the Class D Coverage Tests to be satisfied on the related Determination Date, and (b) on the first Distribution Date, if a Ramp-Up Ratings
Confirmation Failure has occurred, in the event that the Issuer is unable to obtain a Ratings Confirmation after the application of Uninvested Proceeds and Interest Proceeds to pay principal of the Notes, to the payment of principal of,
first, the Class A-1 Notes, second, the Class A-2 Notes, third, the Class A-3 Notes, fourth, the Class B Notes, pro rata, fifth, the Class C Notes, pro rata, and, sixth, the
Class D Notes, pro rata, to the extent specified by Standard & Poor’s and Fitch in order to obtain a Ratings Confirmation; 
  
 (12) to the payment of accrued and unpaid interest on the Class E Notes (including Defaulted Interest and interest thereon, if any, but
excluding Class E Deferred Interest); 
  
 (13)
(a) if either Class E Coverage Test is not satisfied on the related Determination Date and if any Notes remain outstanding, to the payment of 

  

 168 

 
principal of, first, the Class A-1 Notes, second, the Class A-2 Notes, third, the Class A-3 Notes, fourth, the
Class B Notes, pro rata, fifth, the Class C Notes, pro rata, sixth, the Class D Notes, pro rata, and, seventh, the Class E Notes, to the extent necessary to cause each of the Class E Coverage Tests to be satisfied
on the related Determination Date, and (b) on the first Distribution Date, if a Ramp-Up Ratings Confirmation Failure has occurred, in the event that the Issuer is unable to obtain a Ratings Confirmation after the application of Uninvested
Proceeds and Interest Proceeds to pay principal of the Notes, to the payment of principal of, first, the Class A-1 Notes, second, the Class A-2 Notes, third, the Class A-3 Notes, fourth, the Class B Notes,
pro rata, fifth, the Class C Notes, pro rata, sixth, the Class D Notes, pro rata, and, seventh, the Class E Notes, to the extent specified by Standard & Poor’s and Fitch in order to obtain a Ratings
Confirmation; 
  
 (14) to the payment of Class C
Deferred Interest in respect of the Class C Notes (in reduction of the principal amount of the Class C Notes); 
  
 (15) to the payment of Class D Deferred Interest in respect of the Class D Notes (in reduction of the principal amount of the Class D
Notes); 
  
 (16) to the payment of Class E
Deferred Interest in respect of the Class E Notes (in reduction of the principal amount of the Class E Notes); 
  
 (17) on each Distribution Date on and prior to the Distribution Date in February 2009, $83,333.33 shall be deposited into the Interest
Reserve Account, and on each Distribution Date after such Distribution Date in February 2009, on which Notes remain outstanding and the balance in the Interest Reserve Account is less than $1,000,000, 15% of all remaining amounts shall be deposited
into the Interest Reserve Account until the balance therein equals $1,000,000; 
  
 (18) to the payment of all other accrued and unpaid administrative expenses of the Issuer (excluding any Collateral Management Fee) not
paid pursuant to paragraph (2) above (whether as the result of the limitations on amounts set forth therein or otherwise) and in the same order of priority; 
  
 (19) to the payment of any Non-Qualified Termination Payments payable by the Issuer pursuant to any Hedge
Agreement; 
  
 (20) to the payment to the
Collateral Manager of accrued and unpaid Subordinate Collateral Management Fee; 
  
 (21) on any Distribution Date on or after the Distribution Date in May 2016, to the payment of principal of, first, the
Class A-1 Notes, second, the Class A-2 Notes, third, the Class A-3 Notes, fourth, the Class B Notes, pro rata, fifth, the Class C Notes, pro rata, sixth, the Class D Notes, pro rata,
and seventh, the Class E Notes, until each such Class has been paid in full; provided, that all payments made pursuant to this paragraph (21) shall not exceed on any Distribution Date an amount equal to 60% of the Interest
Proceeds that would 

  

 169 

 
otherwise be released from the lien of the Indenture and distributed to the Preferred Share Paying Agent for distribution to the Preferred Shareholders in
accordance with paragraph (22) below (assuming solely for such purpose that no payments are to be made pursuant to this paragraph (21)); and 
  
 (22) the remainder, to be released from the lien of this Indenture and, to the fullest extent permitted under Cayman Islands law, paid to
the Preferred Share Paying Agent for distribution to the Preferred Shareholders as a dividend on the Preferred Shares or as a return of capital of the Preferred Shares as provided in the Issuer Charter. 
  
 (ii) On each Distribution Date, other than the Distribution
Date related to the Stated Maturity of the Notes, Principal Proceeds with respect to the related Due Period will be applied in the order of priority set forth below: 
  
 (1) to the payment of the amounts referred to in paragraphs (1) to (5) of Section 11.1(a)(i)
in the same order of priority specified therein, but only to the extent not paid in full thereunder; 
  
 (2) to the payment of principal of the Class A-1 Notes, until the Class A-1 Notes have been paid in full; 
  
 (3) first, to the payment of principal of the
Class A-2 Notes until the Class A-2 Notes have been paid in full; and second, to the payment of principal of the Class A-3 Notes until the Class A-3 Notes have been paid in full; 
  
 (4) to the payment of accrued and unpaid interest on the
Class B Notes, pro rata (including Defaulted Interest and interest thereon, if any); 
  
 (5) to the payment of principal of the Class B Notes, pro rata, until the Class B Notes have been paid in full; 
  
 (6) to the payment of the amounts referred to in paragraph
(8) of Section 11.1(a)(i) in the same order of priority specified therein, but only to the extent not paid in full thereunder; 
  
 (7) to the payment of principal of the Class C Notes pro rata (including, to the extent not paid in full pursuant to paragraph
(14) of Section 11.1(a)(i) Class C Deferred Interest) until the Class C Notes have been paid in full; 
  
 (8) to the payment of the amounts referred to in paragraph (10) of Section 11.1(a)(i) in the same order of priority specified
therein, but only to the extent not paid in full thereunder; 
  
 (9) to the payment of principal of the Class D Notes, pro rata (including, to the extent not paid in full pursuant to paragraph (15) of 

  

 170 

 
Section 11.1(a)(i) Class D Deferred Interest) until the Class D Notes have been paid in full; 
  
 (10) to the payment of the amounts referred to in paragraph (12) of Section 11.1(a)(i) in the same
order of priority specified therein, but only to the extent not paid in full thereunder; 
  
 (11) to the payment of principal of the Class E Notes (including, to the extent not paid in full pursuant to paragraph (16) of
Section 11.1(a)(i) Class E Deferred Interest) until the Class E Notes have been paid in full; 
  
 (12) to the payment of amounts referred to in paragraphs (18), (19) and (20) of Section 11.1(a)(i) in the same order of
priority therein, but only to the extent not paid thereunder; and 
  
 (13) the remainder, to be released from the lien of this Indenture and, to the fullest extent permitted under Cayman Islands law, paid to the Preferred Share Paying Agent for distribution to the Preferred Shareholders
as a dividend on the Preferred Shares or as a return of capital of the Preferred Shares as provided in the Issuer Charter. 
  
 On the Distribution Date related to the Stated Maturity of the Notes, Principal Proceeds will be distributed in the following order of priority
(a) to the payment of the amounts referred to in paragraphs (1) through (4) of Section 11.1(a)(i) in the same order of priority specified therein, but only to the extent not paid in full thereunder, (b) to the payment of
first, unpaid interest and the Commitment Fee on the Class A-1 Notes, second, the unpaid interest on the Class A-2 Notes, third, the unpaid interest on the Class A-3 Notes, fourth, the principal of the
Class A-1 Notes, fifth, the principal of the Class A-2 Notes, sixth, the principal of the Class A-3 Notes, seventh, unpaid interest on the Class B Notes, pro rata, eighth, the principal of the Class
B Notes, pro rata, ninth, unpaid interest on the Class C Notes, pro rata, tenth, the principal of the Class C Notes, pro rata, eleventh, unpaid interest on the Class D Notes, pro rata, twelfth, the principal
of the Class D Notes, pro rata, thirteenth, unpaid interest on the Class E Notes, and fourteenth, the principal of the Class E Notes, (c) to the payment of the amounts referred to in paragraphs (12) and (13) of
Section 11.1(a)(ii) in the same order of priority specified therein. 
  
 On the first Distribution Date, if a Ramp-Up Ratings Confirmation Failure has occurred, Uninvested Proceeds and, as necessary, Interest Proceeds will be applied to the payment of principal of, first, the
Class A-1 Notes, second, the Class A-2 Notes, third, the Class A-3 Notes, fourth, the Class B Notes, pro rata, fifth, the Class C Notes, pro rata, sixth, the Class D Notes, pro rata,
and seventh, the Class E Notes, to the extent specified by each Rating Agency in order to obtain a Ratings Confirmation. 
  
 (b) Not later than 12:00 p.m., New York time, on or before the Business Day preceding each Distribution Date, the Co-Issuers shall, pursuant to
Section 10.2(f), remit or cause to be remitted to the Trustee for deposit in the Payment Account an amount of Cash sufficient to pay the amounts described in Section 11.1(a) required to be paid on such Distribution Date. 
  

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 (c) If, on any Distribution Date, the amount available in the Payment Account from amounts received in
the related Due Period is insufficient to make the full amount of the disbursements required by the statements furnished by the Co-Issuers pursuant to Section 10.8(c), the Trustee shall make the disbursements called for in the order and
according to the priority set forth of Section 11.1(a), subject to Section 13.1, to the extent funds are available therefor. 
  
 (d) Except as otherwise expressly provided in this Section 11.1, if on any Distribution Date the amount available in the Payment Account from amounts
received in the related Due Period is insufficient to make the full amount of the disbursements required by any lettered clause of Section 11.1(a)(i) or Section 11.1(a)(ii) to different Persons, the Trustee shall make the disbursements
called for by such clause ratably in accordance with the respective amounts of such disbursements in such clause then due and payable to the extent funds are available therefor. 
  
 (e) Any amounts to be paid to the Issuer pursuant to Section 11.1(a)(i)(21) or Section 11.1(a)(ii)(13) will be
released from the lien of this Indenture. 
  
 (f) Payments in
respect of Class C Deferred Interest on any Distribution Date will be made with respect to the Class C Notes in accordance with the Interest Distribution Amount payable in respect of such Class C Notes on such Distribution Date. 
  
 (g) Payments in respect of Class D Deferred Interest on any Distribution Date
will be made with respect to the Class D Notes in accordance with the Interest Distribution Amount payable in respect of such Class D Notes on such Distribution Date. 
  
 (h) Payments in respect of Class E Deferred Interest on any Distribution Date will be made with respect to the Class E Notes
in accordance with the Interest Distribution Amount payable in respect of such Class E Notes on such Distribution Date. 
  
 (i) In respect of payments to be made pro rata as provided above, such payments shall be made (i) as to accrued and unpaid interest, pro
rata based on the amount of accrued and unpaid interest then due and payable and (ii) as to principal (including Deferred Interest), pro rata based on aggregate outstanding principal amount. 
  
 (j) In the event that the Hedge Counterparty defaults in the payment of its
obligations to the Issuer under the related Hedge Agreement on any Distribution Date, the Trustee shall make a demand on the Hedge Counterparty, or any guarantor, if applicable, demanding payment by 10:00 a.m., New York time, on such date. The
Trustee shall give notice to the Noteholders, the Collateral Manager and each Rating Agency upon the continuing failure by such Hedge Counterparty to perform its obligations during the three Business Days following a demand made by the Trustee on
such Hedge Counterparty. 
  
 (k) In the event that the Issuer
defaults in the payment of its obligations under any Hedge Agreement, such default shall not entitle the Hedge Counterparty to terminate such Hedge Agreement but such unpaid amounts shall be deferred for payment on subsequent Distribution Dates and
shall accrue interest at the agreed-upon rate stated in such Hedge Agreement documentation. 
  

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 Section 11.2. Trust Accounts 
  
 All Monies held by, or deposited with, the Trustee in the Interest Collection Account, the Principal Collection Account, the
Payment Account, the Expense Account or the Interest Reserve Account pursuant to the provisions of this Indenture, and not invested in Collateral Debt Securities or Eligible Investments as herein provided, shall be deposited in one or more trust
accounts, maintained at a financial institution whose long-term rating is at least “BBB+” by Standard & Poor’s and at least “BBB+” by Fitch and that has a capital and surplus of a least U.S.$200,000,000 and subject
to supervision or examination by federal or state authority, to be held in trust for the benefit of the Secured Parties. To the extent Monies deposited in a trust account exceed amounts insured by the Bank Insurance Fund or Savings Association
Insurance Fund administered by the Federal Deposit Insurance Corporation, or any agencies succeeding to the insurance functions thereof, and are not fully collateralized by direct obligations of the United States, such excess shall be invested in
Eligible Investments (pursuant to and as provided in Sections 10.2, 10.3, 10.4 and 10.5). 
  
 ARTICLE XII 
  
 SALE OF
COLLATERAL DEBT SECURITIES 
  
 Section 12.1. Sale of
Collateral Debt Securities 
  
 (a) Except as otherwise
expressly permitted or required by this Indenture, the Issuer will not sell or otherwise dispose of any Collateral Debt Security. Notwithstanding the above, subject to satisfaction of any applicable conditions in Section 10.9, so long as
(A) no Event of Default has occurred and is continuing and (B) on or prior to the trade date for such sale the Collateral Manager has certified to the Trustee that each of the conditions applicable to such sale set forth below has been
satisfied, the Collateral Manager on behalf of the Issuer acting pursuant to the Collateral Management Agreement may, but shall not be obligated to, elect to sell any of the following securities and, if the Collateral Manager so elects to sell any
of the following securities, shall direct the Trustee in writing to sell, and the Trustee shall sell in the manner directed by the Collateral Manager in writing (which writing shall specify whether such security is a Defaulted Security, Credit Risk
Security or Equity Security, if applicable, or whether such security is otherwise permitted to be sold pursuant to this Section 12.1(a)): 
  
 (i) any Defaulted Security at any time; 
  
 (ii) any Credit Risk Security at any time; and 
  
 (iii) any Equity Security at any time; 
  
 provided, that (i) no Defaulted Security Credit Risk Security or Equity Security may be disposed of for the
primary purpose of recognizing gains or decreasing losses resulting from market value changes and (ii) Standard & Poor’s, Moody’s and Fitch shall be given written notice thereof promptly following any such sale. 

 

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 (b) The Issuer will, 
  
 (i) at the direction of a Majority-in-Interest of the Preferred Shareholders sell any Equity Security within
30 days after such request therefor by a Majority-in-Interest of the Preferred Shareholders (or within 30 days of such later date as such security or other consideration may first be sold in accordance with its terms and applicable law); and

  
 (ii) sell any other security or other
consideration received in an exchange pursuant to Section 6.16 that is not a Collateral Debt Security or an Eligible Investment within one year after the Issuer’s receipt thereof (or within one year of such later date as such security or
other consideration may first be sold in accordance with its terms and applicable law). 
  
 (c) In connection with an Auction Call Redemption the Trustee may sell any Collateral Debt Security without regard to the foregoing limitations in Section 12.1(a) (except for the limitation that no Defaulted
Security, Credit Risk Security or Equity Security be disposed of for the primary purpose of recognizing gains or decreasing losses resulting from market value changes), and after the Issuer has notified the Trustee of an Optional Redemption or a Tax
Redemption in accordance with Section 9.2, the Collateral Manager on behalf of the Issuer acting pursuant to the Collateral Management Agreement may at any time direct the Trustee in writing to sell, and the Trustee shall sell in the manner
directed by the Collateral Manager in writing, any Collateral Debt Security without regard to the foregoing limitations in Section 12.1(a); provided, that: 
  
 (i) in connection with an Auction Call Redemption, Optional Redemption or Tax Redemption, the Sale Proceeds
therefrom must be used to pay certain expenses and redeem all of the Notes in whole but not in part pursuant to Sections 9.1(a) and (b), and upon any such sale the Trustee shall release such Collateral Debt Security pursuant to Section 10.8;

  
 (ii) in connection with an Auction Call
Redemption, Optional Redemption or Tax Redemption, the Issuer may not direct the Trustee to sell (and the Trustee shall not be required to release) a Collateral Debt Security pursuant to this Section 12.1(c) unless 
  

	 	(x)	the other provisions of this Indenture applicable to an Auction Call Redemption or an Optional Redemption, as the case may be, are met; 

  

	 	(y)	the Collateral Manager certifies to the Trustee that in its reasonable judgment based on calculations included in the certification (which shall include the sales prices of the
Collateral Debt Securities), the Sale Proceeds from the sale of one or more of the Collateral Debt Securities (based on the criteria set forth in Section 9.1(b)(i) or (ii)) will be sufficient to pay the Redemption Price with respect to all the
Notes pursuant to Section 9.1(a); and 

  

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	 	(z)	the Independent accountants appointed by the Issuer pursuant to Section 10.9 shall confirm in writing the calculations made in clause (y) above; and

  
 (iii) in connection with an
Auction Call Redemption, Optional Redemption or Tax Redemption, all the Collateral Debt Securities to be sold pursuant to this Section 12.1(c) must be sold in accordance with the requirements set forth in Section 9.1(b)(i) or (ii), as
applicable. 
  
 Section 12.2. Conditions Applicable to all
Transactions Involving Sales 
  
 (a) Any transaction effected
under this Section 12 or under Section 10.2 shall be conducted on an arm’s length basis for fair market value as determined at the time the Issuer first enters a binding commitment to dispose of such Collateral Debt Security and in
accordance with the requirements of the Collateral Management Agreement, and, if effected with the Collateral Manager, the Issuer, the Trustee or any Affiliate of any of the foregoing, shall be effected in a secondary market transaction on terms at
least as favorable to the Noteholders as would be the case if such Person were not so Affiliated. Unless the Collateral Manager determines in its reasonable judgment that sales of such Collateral Debt Securities or Eligible Investments are
appropriate, the Collateral Manager may refrain from directing the sale hereunder of securities of (i) Persons of which the Collateral Manager, its Affiliates or any of its or its Affiliates’ officers, directors or employees are directors
or officers; (ii) Persons for which the Collateral Manager or any of its Affiliates act as financial advisor or underwriter; or (iii) Persons about which the Collateral Manager or any of its Affiliates have information which the Collateral
Manager deems confidential or non-public or otherwise might prohibit it from trading such securities in accordance with applicable law. The Trustee shall have no responsibility to oversee compliance with this clause by the other parties. 

 
 (b) Upon any Grant pursuant to this Indenture, all of the Issuer’s
right, title and interest to the Pledged Securities shall be Granted to the Trustee pursuant to this Indenture, such Pledged Securities shall be registered in the name of the Trustee, and, if applicable, the Trustee shall receive such Pledged
Securities. The Trustee shall also receive, and the Issuer agrees to deliver, or to cause to be delivered, not later than the Ramp-Up Completion Date, (i) an Officer’s certificate of the Collateral Manager certifying that, as of the
Ramp-Up Completion Date, the Grant of each Collateral Debt Security acquired after the Closing Date and prior to the Ramp-Up Completion Date complies with the applicable conditions of and is permitted by this Indenture (and setting forth, to the
extent appropriate, calculations in reasonable detail necessary to determine such compliance) and (ii) an Officer’s certificate of the Issuer containing the statements set forth in Section 3.2(b). 
  
 (c) Notwithstanding anything in this Indenture to the contrary, in no event
may the Issuer acquire or hold any security or obligation that would subject the Issuer to net income tax in any jurisdiction. The foregoing shall not, however, preclude the Issuer from holding Equity Securities pending their sale in accordance with
Section 12.1(b)(i) and (ii). 
  

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 ARTICLE XIII 
  
 SECURED PARTIES’ RELATIONS 
  
 Section 13.1. Subordination 
  
 (a) Anything in this Indenture or the Notes to the contrary notwithstanding, the Co-Issuers and the Holders of the Notes
agree for the benefit of the Hedge Counterparty that the Notes and the Issuer’s rights in and to the Collateral (solely with respect to all amounts payable to the Hedge Counterparty pursuant to Sections 11.1(a)(i)(4) and 11.1(a)(ii)(1), the
“Subordinate Interests”) shall be subordinate and junior to the rights of the Hedge Counterparty with respect to payments to be made to the Hedge Counterparty pursuant to the Hedge Agreements to the extent and in the manner set forth in
Sections 11.1(a)(i)(4) and 11.1(a)(ii)(1) and hereinafter provided. If any Event of Default has not been cured or waived and acceleration occurs in accordance with Section 5, including as a result of an Event of Default specified in
Section 5.1(f) or (g), all amounts payable to the Hedge Counterparty pursuant to Sections 11.1(a)(i)(4) and 11.1(a)(ii)(1) shall be paid in Cash or, to the extent the Hedge Counterparty consents, other than in Cash, before any further payment
or distribution is made on account of the Subordinate Interests. 
  
 (b) Anything in this Indenture or the Notes to the contrary notwithstanding, the Co-Issuers and the Holders of the Class B Notes, Class C Notes, Class D Notes and Class E Notes agree for the benefit of the Holders of the Class A Notes
that the Class B Notes, the Class C Notes, the Class D Notes and the Class E Notes and the Issuer’s rights in and to the Collateral (with respect to the Class A Notes, the “Subordinate Interests”) shall be subordinate and junior
to the Class A Notes to the extent and in the manner set forth in this Indenture including as set forth in Section 11.1(a) and hereinafter provided. If any Event of Default has not been cured or waived and acceleration occurs in accordance
with Section 5, including as a result of an Event of Default specified in Section 5.1(f) or (g), the Class A Notes shall be paid in full in Cash or, to the extent a Majority of the Class A Notes consent, other than in Cash,
before any further payment or distribution is made on account of the Subordinate Interests. The Holders of Notes evidencing Subordinate Interests and the Preferred Shareholders agree, for the benefit of the Holders of the Class A Notes, not to
cause the filing of a petition in bankruptcy against the Issuer or the Co-Issuer for failure to pay to them amounts due under the Notes evidencing such Subordinate Interests or hereunder until the payment in full of the Class A Notes and not
before one year and one day have elapsed since such payment or, if longer, the applicable preference period then in effect, including any period established pursuant to the laws of the Cayman Islands. 
  
 (c) Anything in this Indenture or the Notes to the contrary notwithstanding,
the Issuer agrees for the benefit of the Holders of the Class B Notes, Class C Notes, Class D Notes and Class E Notes that the Issuer’s rights to payments in respect of the Preferred Shares (with respect to the Class B Notes, Class C Notes,
Class D Notes and Class E Notes, the “Subordinate Interests”) shall be subordinate and junior to the Class B Notes, Class C Notes, Class D Notes and Class E Notes to the extent and in the manner set forth in this Indenture, including as
set forth in Section 11.1(a) and hereinafter provided. If any Event of Default has not been cured or waived and acceleration occurs in accordance with Section 5, including as a result of an Event of Default specified in Section 5.1(f)
or (g), the Class B Notes, the Class C Notes, the Class D 

  

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Notes and the Class E Notes shall be paid in full in Cash or, to the extent a Majority of each of the Class B Notes, the Class C Notes, Class D Notes and the
Class E Notes consent, other than in Cash, before any further payment or distribution is made on account of the Subordinate Interests. The Preferred Shareholders agree, for the benefit of the Holders of the Class B Notes, Class C Notes, Class D
Notes and Class E Notes, not to cause the filing of a petition in bankruptcy against the Issuer or the Co-Issuer for failure to pay to them amounts due in respect of such Subordinate Interests or hereunder until the payment in full of the Class B
Notes, Class C Notes, Class D Notes and Class E Notes, and not before one year and one day have elapsed since such payment or, if longer, the applicable preference period then in effect, including any period established pursuant to the laws of the
Cayman Islands. 
  
 (d) In the event that notwithstanding the
provisions of this Indenture, any holder of any Subordinate Interests shall have received any payment or distribution in respect of such Subordinate Interests contrary to the provisions of this Indenture, then, unless and until all amounts payable
to the Hedge Counterparty pursuant to Sections 11.1(a)(i)(4) and 11.1(a)(ii)(1), and to the Holders of the Class A Notes, to the Holders of the Class B Notes, to the Holders of the Class C Notes, to the Holders of the Class D Notes or to the
Holders of the Class E Notes as the case may be, shall have been paid in full in Cash or, to the extent the Hedge Counterparty or a Majority of the Class A Notes, Class B Notes, Class C Notes, Class D Notes or Class E Notes, as applicable,
consent, other than in Cash in accordance with this Indenture, such payment or distribution shall be received and held in trust for the benefit of, and shall forthwith be paid over and delivered to, the Trustee, which shall pay and deliver the same
to the Hedge Counterparty or the Holders of Class A Notes, Class B Notes, Class C Notes, Class D Notes or Class E Notes, in accordance with this Indenture; provided, that, if any such payment or distribution is made other than in Cash,
it shall be held by the Trustee as part of the Collateral and subject in all respects to the provisions of this Indenture, including this Section 13.1. 
  
 (e) Each Holder of Subordinate Interests agrees with the Hedge Counterparty and all Holders of Class A Notes, Class B Notes, Class C Notes, Class D
Notes or Class E Notes, as the case may be, that such Holder of Subordinate Interests shall not demand, accept, or receive any payment or distribution in respect of such Subordinate Interests in violation of the provisions of this Indenture
including this Section 13.1; provided, that after all amounts payable pursuant to Sections 11.1(a)(i)(4) and 11.1(a)(ii)(1), the Class A Notes or the Class B Notes, as the case may be, have been paid in full, the Holders of
Subordinate Interests shall be fully subrogated to the rights of the Hedge Counterparty and the Holders of the Class A Notes, the Holders of the Class B Notes, the Holders of the Class C Notes, the Holders of the Class D Notes or the Holders of
the Class E Notes, as the case may be. Nothing in this Section 13.1 shall affect the obligation of the Co-Issuers to pay Holders of Subordinate Interests. 
  

Section 13.2. Standard of Conduct 
  
 In exercising any of its or their voting rights, rights to direct and consent or any other rights as a Secured Party under this Indenture or under the
Collateral Management Agreement, subject to the terms and conditions of this Indenture, including Section 5.9, a Secured Party or Secured Parties shall not have any obligation or duty to any Person or to consider or take into account the
interests of any Person and shall not be liable to any Person for any action taken by it or them or at its or their direction or any failure by it or them to act or to 

  

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direct that an action be taken, without regard to whether such action or inaction benefits or adversely affects any Secured Party, the Co-Issuers or any
other Person. 
  
 ARTICLE XIV 
  
 MISCELLANEOUS 
  
 Section 14.1. Form of Documents Delivered to Trustee 

 
 In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 
  
 Any certificate or opinion of an Authorized Officer of the Issuer, the
Co-Issuer or the Collateral Manager may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such Authorized Officer knows, or in the exercise of reasonable care should know, that
the certificate or opinion or representations with respect to the matters upon which his certificate or opinion is based are erroneous. Any such certificate of an Authorized Officer of the Issuer, the Co-Issuer or the Collateral Manager or Opinion
of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an Authorized Officer of the Issuer, the Co-Issuer, the Collateral Manager or any other Person, stating that the information
with respect to such factual matters is in the possession of the Issuer, the Co-Issuer, the Collateral Manager or such other Person, unless such Authorized Officer of the Issuer, the Co-Issuer or the Collateral Manager or such counsel knows that the
certificate or opinion or representations with respect to such matters are erroneous. Any Opinion of Counsel may also be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an Authorized Officer
of the Issuer or the Co-Issuer, stating that the information with respect to such matters is in the possession of the Issuer or the Co-Issuer, as applicable, unless such counsel knows that the certificate or opinion or representations with respect
to such matters are erroneous. 
  
 Where any Person is required to
make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument. 
  
 Whenever in this Indenture it is provided, that the absence of the
occurrence and continuation of a Default is a condition precedent to the taking of any action by the Trustee at the request or direction of the Issuer or the Co-Issuer, then notwithstanding that the satisfaction of such condition is a condition
precedent to the Issuer’s or the Co-Issuer’s rights to make such request or direction, the Trustee shall be protected in acting in accordance with such request or direction if it does not have knowledge of the occurrence and continuation
of such Default as provided in Section 6.1(d). 
  

 178 

 Section 14.2. Acts of Noteholders and Hedge Counterparty 
  
 (a) Any request, demand, authorization, direction, notice, consent, waiver or
other action provided by this Indenture to be given or taken by Noteholders or Hedge Counterparty may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Noteholders or Hedge Counterparty in person
or by an agent duly appointed in writing and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee, and, where it is hereby expressly required, to the
Issuer and/or the Co-Issuer. Such instrument or instruments (and the action or actions embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Noteholders or Hedge Counterparty signing such instrument
or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee, the Issuer and the Co-Issuer, if made in the manner
provided in this Section 14.2. 
  
 (b) The fact and date of
the execution by any Person of any such instrument or writing may be proved in any manner which the Trustee deems sufficient. 
  
 (c) The principal amount and registered numbers of Notes held by any Person, and the date of his holding the same, shall be proved by the Note Register.

  
 (d) Any request, demand, authorization, direction, notice,
consent, waiver or other action by the Holder of any Notes shall bind the Holder (and any transferee thereof) of such Note and of every Note issued upon the registration thereof or in exchange therefor or in lieu thereof, in respect of anything
done, omitted or suffered to be done by the Trustee or the Co-Issuers in reliance thereon, whether or not notation of such action is made upon such Note. 
  
 Section 14.3. Notices, Etc., to Trustee, the Issuer, the Co-Issuer, the Collateral Manager and the Rating Agencies 
  
 Any request, demand, authorization, direction, notice, consent, waiver or Act
of Noteholders or Hedge Counterparty or other communication or documents provided or permitted by this Indenture to be made upon, given or furnished to, or filed with: 
  
 (a) the Trustee by any Noteholder or by the Issuer or the Co-Issuer shall be sufficient for every purpose hereunder if made,
given, furnished or filed in writing to and mailed, by certified mail, return receipt requested, hand delivered, sent by overnight courier service guaranteeing next day delivery or by telecopy in legible form, to the Trustee addressed to it at its
Corporate Trust Office, telecopy no.: (713) 216-2101, Attention: Worldwide Securities Services–TABERNA PREFERRED FUNDING IV, or at any other address previously furnished in writing to the Co-Issuers or Noteholder by the Trustee;

  
 (b) the Issuer by the Trustee, the Co-Issuer or by any
Noteholder shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing and mailed, first class postage prepaid, hand delivered, sent by overnight courier service or by telecopy in legible form, to the
Issuer addressed to it at c/o Walkers SPV Limited, P.O. Box 908 G.T., Walker House, Mary Street, George Town, Grand Cayman, Cayman Islands, British West 

  

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Indies, Attention: The Directors, telecopy no. (345) 945-4757, or at any other address previously furnished in writing to the Trustee by the Issuer;

  
 (c) the Co-Issuer by the Trustee, the Issuer or by any
Noteholder shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing and mailed, first class postage prepaid, hand delivered, sent by overnight courier service or by telecopy in legible form, to the
Issuer addressed to it at c/o Puglisi and Associates, Attention: Donald J. Puglisi, 850 Library Avenue, Suite 204, Newark, Delaware 19711, or at any other address previously furnished in writing to the Trustee by the Issuer; 
  
 (d) the Collateral Manager by the Issuer or the Trustee shall be sufficient
for every purpose hereunder if in writing and mailed, first-class postage prepaid, hand delivered, sent by overnight courier service or by telecopy in legible form, to the Collateral Manager addressed to it at 450 Park Avenue, 23rd Floor, New York,
New York 10022, Attention: Mitchell Kahn, telecopy no. (212) 735-1499, or at any other address previously furnished in writing to the Issuer or the Trustee by the Collateral Manager; 
  
 (e) the Rating Agencies by the Issuer, the Collateral Manager or the Trustee shall be sufficient for every purpose hereunder
(unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, hand delivered, sent by overnight courier service or by telecopy in legible form, (i) in the case of Standard & Poor’s, addressed
to Standard & Poor’s, 55 Water Street, New York, New York, 10041, Attention: CDO Surveillance and notification of all Monthly Reports shall be sent to Standard & Poor’s electronically at cdo_surveillance@sandp.com;
(ii) in the case of Fitch addressed to Fitch, Inc., One State Street Plaza, New York, New York 10004, telecopy no. (212) 558-2618, Attention: Credit Products Surveillance – Additional Reporting and notification of all Monthly Reports
shall be sent to Fitch electronically at cdo.surveillance@fitchratings.com; and (iii) in the case of Moody’s, addressed to Moody’s Investors Service, 99 Church Street, New York, New York 10007, telecopy no. (212) 553-0355,
Attention: CBO/CLO Monitoring and notification of all Monthly Reports shall be sent to Moody’s electronically at cdomonitoring@moodys.com; or, as to any Rating Agency, at any other address previously furnished in writing to the Issuer, the
Collateral Manager or the Trustee by such Rating Agency; 
  
 (f)
the Hedge Counterparty by any party as provided by this Indenture shall be sufficient for every purpose hereunder if in writing to and mailed, first class postage prepaid, hand delivered, sent by overnight courier service or by telecopy in legible
form addressed to it at the address specified in the Hedge Agreements or at any other address previously furnished in writing by the Hedge Counterparty to such party; 
  

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 (g) the Irish Stock Exchange by the Trustee, the Collateral Manager, the Issuer or the Co-Issuer shall be
sufficient for every purpose hereunder if made, given, furnished or filed in writing to and mailed, by certified mail, return receipt requested, or sent by overnight courier service guaranteeing next day delivery, or sent by confirmed telecopy
transmission in legible form with simultaneous mailing of the original on the same day by first class mail postage prepaid, addressed to the Irish Stock Exchange at: 
  
 Irish Stock Exchange Limited 
 28 Anglesea Street 
 Dublin 2, Ireland 
 Fax: +353 1 677 6045 
  
 or at any other address furnished in writing to the Trustee, the Collateral Manager, the Issuer or the Co-Issuer by the Irish Stock Exchange; and 
  
 (h) the Paying Agent in Ireland by the Trustee, the Collateral Manager, the
Issuer or the Co-Issuer shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing to and mailed, by certified mail, return receipt requested, or sent by overnight courier service guaranteeing next day delivery, or
sent by confirmed telecopy transmission in legible form with simultaneous mailing of the original on the same day by first class mail postage prepaid, addressed to the Paying Agent in Ireland at: 
  
 JPMorgan Bank (Ireland) PLC 
 JPMorgan House 
 IFSC 
 Dublin 1, Ireland 
 Attention: Carrie McNamara

  
 or at any other address furnished in writing to the Trustee, the Collateral
Manager, the Issuer or the Co-Issuer by the Paying Agent in Ireland. 
  
 Delivery of any request, demand, authorization, direction, notice, consent, waiver or Act of Noteholders or other documents made as provided above will be deemed effective: (i) if in writing and delivered in person or by overnight
courier service, on the date it is delivered; (ii) if sent by facsimile transmission, on the date that transmission is received by the recipient in legible form (as evidenced by the sender’s written record of a telephone call to the
recipient in which the recipient acknowledged receipt of such facsimile transmission); and (iii) if sent by mail, on the date that mail is delivered or its delivery is attempted; in each case, unless the date of that delivery (or attempted
delivery) or that receipt, as applicable, is not a Business Day or that communication is delivered (or attempted) or received, as applicable, after the close of business on a Business Day, in which case that communication shall be deemed given and
effective on the first following day that is a Business Day. 
  
 Section 14.4. Notices and Reports to Noteholders; Waiver 
  
 Except as otherwise expressly provided herein, where this Indenture provides for a report to Holders or for a notice to Holders of Notes of any event, 
  
 (a) such report or notice shall be sufficiently given to Holders of Notes if in writing and mailed, first-class postage
prepaid, to each Holder of a Note affected by such event, at the address of such Holder as it appears in the Note Register, not earlier than the earliest date and not later than the latest date, prescribed for the giving of such report or notice;
and 
  
 (b) such report or notice shall be in the English
language. 
  

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 Such reports and notices will be deemed to have been given on the date of such mailing. 
  
 The Trustee will deliver to the Holder of any Note shown on the Note Register
any readily available information or notice requested to be so delivered, at the expense of the Co-Issuers. In addition, for so long as any Class of Notes is listed on the Irish Stock Exchange and so long as the rules of such exchange so require,
notices to the Holders of such Notes shall also be given by delivery to the Company Announcements Office of the Irish Stock Exchange. 
  
 Neither the failure to mail any notice, nor any defect in any notice so mailed, to any particular Holder of a Note shall affect the sufficiency of such
notice with respect to other Holders of Notes. 
  
 Where this
Indenture provides for notice in any manner, such notice may be waived in writing by any Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by
Noteholders shall be filed with the Trustee but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. 
  

In the event that, by reason of the suspension of the regular mail service as a result of a strike, work stoppage or similar activity, it shall be impractical to mail
notice of any event to Noteholders when such notice is required to be given pursuant to any provision of this Indenture, then any manner of giving such notice as shall be satisfactory to the Trustee shall be deemed to be a sufficient giving of such
notice. 
  
 Section 14.5. Effect of Headings and Table of
Contents 
  
 The Section headings herein and the Table of
Contents are for convenience only and shall not affect the construction hereof. 
  
 Section 14.6. Successors and Assigns 
  
 All covenants and agreements in this Indenture by the Co-Issuers shall bind their respective successors and assigns, whether so expressed or not. 
  
 Section 14.7. Severability 
  
 In case any provision in this Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity legality,
and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  
 Section 14.8. Benefits of Indenture 
  
 The Hedge Counterparty shall be a third party beneficiary of each agreement or obligation in this Indenture. Nothing in this Indenture or in the Notes or
Hedge Agreements, expressed or implied, shall give to any Person, other than the parties hereto and their successors hereunder, the Collateral Manager, the Hedge Counterparty, the Noteholders or the Preferred Shareholders, any benefit or any legal
or equitable right, remedy or claim under this Indenture. 
  

 182 

 Section 14.9. Governing Law 
  
 THIS INDENTURE AND EACH NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND THIS INDENTURE AND EACH NOTE AND ALL MATTERS ARISING
OUT OF OR RELATING IN ANY WAY WHATSOEVER (WHETHER IN CONTRACT, TORT OR OTHERWISE) TO THIS INDENTURE OR ANY NOTE SHALL BE GOVERNED BY, THE LAW OF THE STATE OF NEW YORK. 
  
 Section 14.10. Submission to Jurisdiction 
  
 Each of the Issuer, the Co-Issuer and the Trustee hereby irrevocably submit to the non-exclusive jurisdiction of any New
York State or federal court sitting in the Borough of Manhattan in The City of New York in any action or proceeding arising out of or relating to the Notes or this Indenture, and the Issuer, the Co-Issuer and Trustee each hereby irrevocably agree
that all claims in respect of such action or proceeding may be heard and determined in such New York State or federal court. Each of the Issuer, the Co-Issuer and the Trustee hereby irrevocably waive, to the fullest extent that they may legally do
so, the defense of an inconvenient forum to the maintenance of such action or proceeding. Each of the Issuer and the Co-Issuer irrevocably consents to the service of any and all process in any action or proceeding by the mailing or delivery of
copies of such process to it at the office of the Co-Issuers’ agent in New York set forth in Section 7.2. Each of the Issuer and the Co-Issuer agrees that a final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. 
  
 Section 14.11. Counterparts 
  
 This instrument may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument. 
  
 Section 14.12. Judgment Currency 
  
 This is
an international financing transaction in which the specification of Dollars (the “Specified Currency”), and the specification of the place of payment, as the case may be (the “Specified Place”), is of the essence, and the
Specified Currency shall be the currency of account in all events relating to payments of or on the Notes. The payment obligations of the Co-Issuers under this Indenture and the Notes shall not be discharged by an amount paid in another currency or
in another place, whether pursuant to a judgment or otherwise, to the extent that the amount so paid on conversion to the Specified Currency and transfer to the Specified Place under normal banking procedures does not yield the amount of the
Specified Currency at the Specified Place. If for the purpose of obtaining judgment in any court it is necessary to convert a sum due hereunder or the Notes in the Specified Currency into another currency (the “Second Currency”), the rate
of exchange that shall be applied shall be that at which in accordance with normal banking procedures the Trustee could purchase the Specified Currency with the Second Currency on the Business Day next preceding that on which such judgment is
rendered. The obligation of the Co-Issuers in respect of any such sum due from the Co-Issuers hereunder shall, notwithstanding the rate of exchange actually applied in rendering such judgment, be discharged 

  

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only to the extent that on the Business Day following receipt by the Trustee of any sum adjudged to be due hereunder or under the Notes in the Second
Currency the Trustee may in accordance with normal banking procedures purchase and transfer to the Specified Place the Specified Currency with the amount of the Second Currency so adjudged to be due; and the Co-Issuers hereby, as a separate
obligation and notwithstanding any such judgment (but subject to the Priority of Payments as if such separate obligation in respect of each Class of Notes constituted additional principal owing in respect of such Class of Notes), agree to indemnify
the Trustee and each Noteholder against, and to pay the Trustee or such Noteholder, as the case may be, on demand in the Specified Currency, any difference between the sum originally due to the Trustee or such Noteholder, as the case may be, in the
Specified Currency and the amount of the Specified Currency so purchased and transferred. 
  
 Section 14.13. Confidentiality; Confidential Treatment of Documents 
  
 (a) The parties hereto hereby agree that each such party (and each of their respective, and their respective affiliates’, employees, officers,
directors, agents and advisors) is, and has been from the commencement of discussions with respect to this transaction, permitted to disclose to any and all Persons, without limitation of any kind, the tax treatment, tax structure and tax aspects
(as such terms are used in Internal Revenue Code Sections 6011, 6111 and 6112 and the regulations promulgated thereunder) of this transaction, and all materials of any kind (including tax opinions or other tax analyses) that are or have been
provided to such parties related to such tax structure and tax aspects. Each party hereto further acknowledges and agrees that its disclosure of the tax structure or tax aspects of this transaction is not limited in any way by any express or implied
understanding or agreement, oral or written (whether or not such understanding or agreement is legally binding). Furthermore, each of the parties hereto acknowledges and agrees that it does not know or have reason to know that its use or disclosure
of information relating to the tax structure or tax aspects of this transaction is limited in any other manner (such as where this Indenture is claimed to be proprietary or exclusive with respect to the tax structure or tax aspects of this
transaction) for the benefit of any other Person. To the extent that disclosure of the tax structure or tax aspects of this transaction by any party hereto is limited by any existing agreement between such parties, such limitation is agreed to be
void ab initio and such agreement is hereby amended to permit disclosure of the tax structure and tax aspects of this transaction as provided in this paragraph (a). 
  
 (b) Subject to paragraph (a) above and except as otherwise provided in this Indenture or as required by law or as
required to maintain the listing of the Notes and Preferred Shares on the Irish Stock Exchange, this Indenture and the Hedge Agreements shall be treated by the parties hereto as confidential. The Trustee shall provide a copy of this Indenture to any
Holder of a beneficial interest in any Note upon written request therefor certifying that it is such a Holder; provided that the Trustee shall not disclose all or any part of the Class A-2 Agency and Amending Agreement or the Basis Swap
to any Noteholder (other than a Holder of a Class A-2 Note) unless such Noteholder requests a copy thereof in writing and the Trustee is advised by an Opinion of Counsel to the effect that such Noteholder is materially and adversely affected by
the transactions contemplated by the Class A-2 Agency and Amending Agreement or the Basis Swap, as the case may be. Any cost or expense relating to such advice and request for the disclosure of the Class A-2 Agency and Amending Agreement
or the Basis Swap shall be borne solely by the Noteholder making such request. 
  

 184 

 ARTICLE XV 
  

ASSIGNMENT OF CERTAIN AGREEMENTS 
  
 Section 15.1. Assignment 
  
 The Issuer, in furtherance of the covenants of this Indenture and as security for the Notes and amounts payable to the Noteholders hereunder and the
performance and observance of the provisions hereof, hereby assigns, transfers, conveys and sets over to the Trustee, for the benefit of the Secured Parties, all of the Issuer’s estate, right, title and interest in, to and under the Collateral
Management Agreement, the Collateral Administration Agreement and the Hedge Agreements, including (i) the right to give all notices, consents and releases thereunder, (ii) the right to give all notices of termination and to take any legal
action upon the breach of an obligation of the Collateral Manager thereunder, including the commencement, conduct and consummation of proceedings at law or in equity, (iii) the right to receive all notices, accountings, consents, releases and
statements thereunder and (iv) the right to do any and all other things whatsoever that the Issuer is or may be entitled to do thereunder; provided, that the Trustee hereby grants the Issuer a license to exercise all of the Issuer’s rights
pursuant to the Collateral Management Agreement without notice to or the consent of the Trustee (except as otherwise expressly required by this Indenture, including as set forth in Section 15.4), which license shall be and is hereby deemed to
be automatically revoked (A) upon the occurrence of an Event of Default hereunder until such time, if any, as such Event of Default is cured or waived, (B) upon the occurrence of a termination event specified in Section 15 of the
Collateral Management Agreement or (C) upon a default in the performance, or breach, of any material covenant, representation, warranty or other agreement of the Collateral Manager under the Collateral Management Agreement or in any certificate
or writing delivered pursuant thereto if Holders of at least 25% of the Aggregate Outstanding Principal Amount of the Notes of any Class give notice of such default or breach to the Trustee and the Collateral Manager and such default or breach (if
remediable) continues for a period of 30 days after receipt of such notice. 
  
 Section 15.2. No Impairment 
  
 The assignment made hereby is executed as collateral security, and the execution and delivery hereby shall not in any way impair or diminish the obligations of the Issuer under the provisions of the Collateral Management Agreement, the
Hedge Agreements or the Collateral Administration Agreement nor shall any of the obligations contained in the Collateral Management Agreement be imposed on the Trustee. 
  
 Section 15.3. Termination, Etc. 
  
 Upon the redemption and cancellation of the Notes and the payment of all other Secured Obligations and the release of the
Collateral from the lien of this Indenture, this assignment and all rights herein assigned to the Trustee for the benefit of the Secured Parties shall cease and terminate and all the estate, right, title and interest of the Trustee in, to and under
the Collateral Management Agreement, the Hedge Agreements and the Collateral Administration Agreement shall revert to the Issuer and no further instrument or act shall be necessary to evidence such termination and reversion. 
  

 185 

 Section 15.4. Issuer Agreements, Etc. 
  
 The Issuer represents that it has not executed any other assignment of the
Collateral Management Agreement, the Hedge Agreements or the Collateral Administration Agreement. The Issuer agrees that this assignment is irrevocable, and that it will not take any action which is inconsistent with this assignment or make any
other assignment inconsistent herewith. The Issuer will, from time to time upon the request of the Trustee, execute all instruments of further assurance and all such supplemental instruments with respect to this assignment as the Trustee may
reasonably specify. The Issuer hereby agrees, and hereby undertakes to obtain the agreement and consent of the Collateral Manager in the Collateral Management Agreement, to the following: 
  
 (a) the Collateral Manager consents to the provisions of this assignment and agrees to perform any provisions of this
Indenture applicable to the Collateral Manager; 
  
 (b) the
Collateral Manager acknowledges that the Issuer is assigning all of its right, title and interest in, to and under the Collateral Management Agreement to the Trustee for the benefit of the Secured Parties, and the Collateral Manager agrees that all
of the representations, covenants and agreements made by the Collateral Manager in the Collateral Management Agreement are also for the benefit of the Trustee and the other Secured Parties; 
  
 (c) the Collateral Manager shall deliver to the Trustee duplicate original
copies of all notices, statements, communications and instruments delivered or required to be delivered to the Issuer pursuant to the Collateral Management Agreement; 
  
 (d) after the Closing Date, neither the Issuer nor the Collateral Manager will enter into any agreement amending, modifying
or terminating the Collateral Management Agreement (other than in respect of an amendment or modification of the type that may be made to this Indenture without Noteholder consent) or selecting or consenting to a successor Collateral Manager except
in accordance with the Collateral Management Agreement and this Indenture; 
  
 (e) except as otherwise set forth herein and therein, the Collateral Manager shall continue to serve as Collateral Manager under the Collateral Management Agreement notwithstanding that the Collateral Manager shall
not have received amounts due it under the Collateral Management Agreement because sufficient funds were not then available hereunder to pay such amounts. The Collateral Manager agrees not to institute against, or join any other Person in
instituting against, the Issuer or the Co-Issuer any bankruptcy, reorganization, arrangement, insolvency, moratorium or liquidation proceedings or other proceedings under any bankruptcy, insolvency, reorganization or similar laws until at least one
year and one day, or if longer the applicable preference period then in effect, after the payment in full of all Notes issued under this Indenture; provided, that nothing in this clause shall preclude, or be deemed to estop, the Collateral
Manager (A) from taking any action prior to the expiration of the aforementioned one year and one day period, or if longer the applicable preference period then in effect, in (x) any case or proceeding voluntarily filed or commenced by the
Issuer or the Co-Issuer or (y) any involuntary insolvency proceeding filed or commenced against the Issuer or the Co-Issuer by a Person other than the Collateral Manager or (B) from commencing against the 

  

 186 

 
Issuer or the Co-Issuer or any properties of the Issuer any legal action which is not a bankruptcy, reorganization, arrangement, insolvency, moratorium or
liquidation proceeding; 
  
 (f) if the Collateral Manager
determines that it or any of its Affiliates have a material conflict of interest between the Issuer and any other account or portfolio for which the Collateral Manager or any of its Affiliates is serving as investment advisor that relates to any
action to be taken with respect to any Pledged Security, then the Collateral Manager will give written notice to the Noteholders briefly describing such conflict and the action it proposes to take. The Collateral Manager will perform its obligations
with respect to any such conflict in accordance with the Collateral Management Agreement and with the care, skill, prudence and diligence that a prudent person acting in a like capacity and familiar with such matters would use in the resolution of
such conflict; and 
  
 (g) the Collateral Manager irrevocably
submits to the non-exclusive jurisdiction of any New York State or federal court sitting in the Borough of Manhattan in The City of New York in any action or proceeding arising out of or relating to the Notes or this Indenture, and the Collateral
Manager irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined in such New York State or federal court. The Collateral Manager irrevocably waives, to the fullest extent it may legally do so, the
defense of an inconvenient forum to the maintenance of such action or proceeding. The Collateral Manager irrevocably consents to the service of any and all process in any action or proceeding by the mailing or delivery of copies of such process to
it at the office of the Collateral Manager. The Collateral Manager agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided
by law. 
  
 ARTICLE XVI 
  
 HEDGE AGREEMENTS 
  
 Section 16.1. Hedge Agreements 
  
 (a) On the Closing Date, the Issuer shall enter into a hedge agreement (the
“Initial Hedge Agreement”) with Merrill Lynch Capital Services, Inc. (the “Initial Hedge Counterparty”). After the Closing Date, the Issuer may enter into replacement or additional Hedge Agreements if on the date on which the
Issuer enters into a replacement or additional Hedge Agreement, (i) each Hedge Counterparty entering into a Hedge Agreement on such date (or any Affiliate of such Hedge Counterparty that shall have absolutely and unconditionally guaranteed
(using a form of guarantee complying with Standard & Poor’s then-current published criteria with respect to guarantees) the obligations of such Hedge Counterparty under the relevant Hedge Agreement) shall be required to satisfy the
Hedge Counterparty Ratings Requirement, (ii) the Issuer shall collaterally assign its rights under such Hedge Agreement to the Trustee pursuant to this Indenture and such Hedge Counterparty shall consent to such assignment and (iii) the
Rating Condition is satisfied. The Issuer shall enter into a Hedge Agreement only if (A) the relevant Hedge Counterparty shall be required in accordance with the terms of such Hedge Agreement to pay additional amounts to the Issuer sufficient
to cover any Indemnifiable Tax (as defined in the Hedge Agreement) due on payments made by such Hedge 

  

 187 

 
Counterparty to the Issuer under such Hedge Agreement, subject to the Issuer making customary payee tax representations and providing customary tax
documentation and (B) such Hedge Agreement contains “limited recourse” and “non-petition” provisions equivalent to the “limited recourse” and “non-petition” provisions set forth herein (mutatis mutandis).

  
 (b) The Trustee shall, on behalf of the Issuer and in
accordance with the Note Valuation Report, pay amounts due to each Hedge Counterparty under the Hedge Agreements on any Distribution Date subject to and in accordance with Section 11.1. 
  
 (c) Each Hedge Agreement shall provide that, in respect of any Hedge
Counterparty or transferee: 
  
 (i) if the Hedge
Rating Determining Party ceases to satisfy the Hedge Counterparty Ratings Requirement, then such Hedge Counterparty shall, within the period specified in the Hedge Agreement following such ratings downgrade (solely at the expense of the Hedge
Counterparty), post collateral pursuant to the Credit Support Annex to the related Hedge Agreement, or obtain a guarantee or make an assignment to a replacement Hedge Counterparty or take such other action which satisfies the Rating Condition; and

  
 (ii) if its Hedge Rating Determining Party
fails to satisfy the Ratings Threshold, then the Hedge Counterparty shall within ten Business Days of the occurrence of a Ratings Event (as defined in the related Hedge Agreement) either (x) assign its rights and obligations in and under the
related Hedge Agreement (at its own expense) to another Hedge Counterparty that has ratings at least equal to the Hedge Counterparty Ratings Requirement or (y) enter into any other agreement with or arrangement for the benefit of the Issuer and
the Trustee that is reasonably satisfactory to the Trustee on behalf of the Issuer and that satisfies the Rating Condition. 
  
 (d) The Hedge Agreements will provide that upon the default by the relevant Hedge Counterparty in the payment when due of its obligations to the Issuer
under such Hedge Agreement, the Issuer shall promptly provide written notice thereof to the Trustee and, if applicable, any guarantor of such Hedge Counterparty’s obligations under such Hedge Agreement. Upon its receipt of such notice (or, if
earlier, when the Trustee becomes aware of such default) the Trustee shall make a demand on such Hedge Counterparty, or any guarantor, if applicable, demanding payment forthwith. The Trustee shall give notice to the Noteholders and each Rating
Agency upon the continuance of the failure by such Hedge Counterparty to perform its obligations for two Business Days following a demand made by the Trustee on such Hedge Counterparty. 
  
 (e) If at any time any Hedge Agreement becomes subject to early termination due to the occurrence of an “Event of
Default” or a “Termination Event” (each as defined in the relevant Hedge Agreement) where the Hedge Counterparty is the Defaulting Party or the Affected Party (each as defined in the relevant Hedge Agreement), the Issuer shall give
prompt written notice thereof to the Trustee, and the Issuer and the Trustee shall take such actions (following the expiration of any applicable grace period) to enforce the rights of the Issuer and the Trustee thereunder, as instructed in writing
by the Collateral Manager and as may be permitted by the 

  

 188 

 
terms of such Hedge Agreement and consistent with the terms hereof, and shall apply the proceeds of any such actions (including the proceeds of the
liquidation of any collateral pledged by such Hedge Counterparty) to the costs of such actions and to the cost of entering into a replacement Hedge Agreement to be arranged and entered into by the Issuer on substantially identical terms or on such
other terms with respect to which the Issuer has satisfied the Rating Condition. Any costs attributable to entering into a replacement Hedge Agreement which exceed the sum of the proceeds of the liquidation of the terminated Hedge Agreement shall be
borne by the “Defaulting Party” or sole “Affected Party” (each as defined in the relevant Hedge Agreement) with respect to the applicable “Event of Default” or “Termination Event” (each as defined in the
relevant Hedge Agreement). In determining the amount payable under the terminated Hedge Agreement, the Issuer will seek quotations from “Reference Market-makers” (as defined in the relevant Hedge Agreement) that satisfy the Hedge
Counterparty Ratings Requirement. In addition, the Issuer will use its best efforts to cause the termination of a Hedge Agreement to become effective simultaneously with the entry into a replacement Hedge Agreement described as aforesaid.

  
 (f) Each Hedge Agreement shall provide that (i) any
amount payable to the Hedge Counterparty thereunder shall be subject to the Priority of Payments and (ii) such Hedge Agreement is subject to termination on the occurrence of an Event of Default and liquidation of the Collateral. 
  
 (g) Amendment and Reduction in Notional Amount 
  
 (i) The Issuer shall notify the Trustee, the Collateral
Manager and each Rating Agency in writing of all amendments and modifications to the Hedge Agreements. 
  
 (ii) The Collateral Manager, on behalf of the Issuer, may reduce the notional amount of any Hedge Agreement (and, in connection therewith,
cause the Issuer to pay a termination payment in accordance with the Priority of Payments to the Hedge Counterparty) if the Rating Condition is satisfied. 
  
 (h) In the event that amounts are applied to the redemption of Notes on any Distribution Date in accordance with the Priority of Payments by reason of a
failure to satisfy any of the Coverage Tests, then, subject to the satisfaction of the Rating Condition, the floating-fixed rate interest swaps under the Hedge Agreements will be subject to partial termination on such Distribution Date with respect
to a portion of the notional amount thereof equal to the aggregate outstanding principal amount of Notes so redeemed on such Distribution Date. In addition, subject to the satisfaction of the Rating Condition with respect to such reduction, the
Collateral Manager and a Majority-in-Interest of Preferred Shareholders (acting together) may on any Distribution Date direct the Issuer to reduce the notional amount of any interest rate swap or cap outstanding under any Hedge Agreement. Upon any
such termination or reduction of a notional amount, a termination payment with respect to the notional amount terminated or reduced may become payable by the Hedge Counterparty or the Issuer to the other party under the Hedge Agreements. Amounts
payable upon any such termination or reduction will based upon standard replacement transaction valuation methodology set forth in the 1992 ISDA Master Agreement published by the International Swaps and Derivatives Association, Inc. If any amount is
payable by the Issuer to the Hedge Counterparty in connection with the 

  

 189 

 
occurrence of any such partial termination or notional amount reduction, such amount, together with interest on such amount for the period from and including
the date of termination to but excluding the date of payment at a rate per annum (calculated using a 30/360 Day Count Fraction) equal to the cost of funds therefor, as determined in accordance with each Hedge Agreement, shall be payable on such
Distribution Date to the extent funds are available for such purpose in accordance with the Priority of Payments, and any amount not so paid on such Distribution Date shall be payable on the first Distribution Date on which such amount may be paid
in accordance with the Priority of Payments. 
  
 (i) In the event
the Issuer, at any time after the Closing Date and on or prior to the Ramp-Up Completion Date, purchases secondary market Collateral Debt Securities from the Initial Purchaser, the Issuer will be permitted, in accordance with the terms hereof, to
enter into one or more Hedge Agreements at prevailing market rates with respect to such Collateral Debt Securities so acquired; provided, that (i) such additional Hedge Agreements are entered into with Merrill Lynch Capital Services,
Inc. as the Hedge Counterparty, (ii) such additional Hedge Agreements are executed on documentation substantially similar to, and contain material terms similar to, the Hedge Agreements entered into by the Issuer on the Closing Date,
(iii) all documentation relating to each such Hedge Agreement is executed by the Issuer (or an attorney-in-fact of the Issuer) acting from its offices in the Cayman Islands or elsewhere outside the United States and (iv) the entry into
such Hedge Agreements shall be subject to the Rating Condition. In no event shall any Hedge Agreement be entered into after the Ramp-Up Completion Date unless such Hedge Agreement is otherwise permitted by the Indenture; provided, that,
Deemed Fixed Rate Hedge Agreements and Deemed Floating Rate Hedge Agreements may be entered into at any time so long as such Hedge Agreements satisfy clause (ii) of the definition of “Hedge Agreement” and clauses (iii) and
(iv) of the provision to the immediately preceding sentence and otherwise satisfy the provisions of this Section 16 and the Rating Condition is satisfied as to Standard Poor’s in connection with initially entering into any such Hedge
Agreement (and to the extent provided in clause (ii) of the definition of “Hedge Agreement,” any replacement Hedge Agreement). 
  

 190 

 IN WITNESS WHEREOF, we have set our hands as of the 23rd day of December, 2005. 
  
 Executed as a Deed by 
  

			
	 TABERNA PREFERRED FUNDING IV, LTD.,
as Issuer

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  
 In the presence of: 

	
	
	  
	 Witness

  

					
	 	 	S-1	 	Indenture

			
	 TABERNA PREFERRED FUNDING IV, INC.,
as Co-Issuer

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

					
	 	 	S-2	 	Indenture

			
	 JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,
 as Trustee

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

					
	 	 	S-3	 	Indenture

 SCHEDULE A 
  

SCHEDULE OF COLLATERAL DEBT SECURITIES 
  
 This schedule omits the names of the issuers of the collateral and identifies such issuers only by assigned numbers. A copy of this schedule including the
names of such issuers can be obtained from the Collateral Manager upon request following the execution and delivery of a confidentiality agreement by the requestor, the form of which can also be obtained from the Collateral Manager 
  

																	
	Rank

	 	Company Name

	 	Type

	 	Fixed/Floating

	 	Issue Size

	 	Initial
Coupon /
Spread

	 	Benchmark
LIBOR

	 	First
Payment
Date

	 	Frequency

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  

					
	 	 	A-1	 	Indenture

 SCHEDULE B 
  

LIBOR FORMULA 
  
 With respect to each Interest Period, “LIBOR” for purposes of calculating the Note Interest Rate for the Notes for such Interest Period will be determined by
the Calculation Agent in accordance with the following provisions: 
  
 (i) On the second LIBOR Business Day (provided, that, on such day commercial banks are open for business (including dealings in foreign currency deposits) in London (a “LIBOR Banking Day”), and
otherwise the next preceding LIBOR Business Day that is also a LIBOR Banking Day), prior to each February 5, May 5, August 5 and November 5 and, with respect to the Class A-1 Notes only, Borrowing Date (each such
day, a “LIBOR Determination Date”), LIBOR shall equal the rate, as obtained by the Calculation Agent, for U.S. Dollar deposits in Europe of the Designated Maturity which appears on Telerate (as defined in the International Swaps and
Derivatives Association, Inc. 2000 Interest Rate and Currency Exchange Definitions) Page 3750 or such other page as may replace such Page 3750, as of 11:00 a.m. (London time) on such LIBOR Determination Date, as reported by Bloomberg Financial
Markets Commodities News or any successor service (“Telerate Page 3750”). “LIBOR Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banking institutions in New York, New York, or
Wilmington, Delaware are authorized or obligated by law or executive order to be closed. If such rate is superseded on Telerate Page 3750 by a corrected rate before 12:00 noon (London time) on such LIBOR Determination Date, the corrected rate as so
substituted will be LIBOR for such LIBOR Determination Date. 
  
 (ii) If, on such LIBOR Determination Date, such rate does not appear on Telerate Page 3750, the Calculation Agent shall determine the arithmetic mean of the offered quotations of the Reference Banks (as defined below)
to leading banks in the London interbank market for U.S. Dollar deposits in Europe of the Designated Maturity in an amount determined by the Calculation Agent by reference to requests for quotations as of approximately 11:00 a.m. (London time)
on such LIBOR Determination Date made by the Calculation Agent to the Reference Banks. If, on such LIBOR Determination Date, at least two of the Reference Banks provide such quotations, LIBOR shall equal the arithmetic mean of such quotations. If,
on such LIBOR Determination Date, only one or none of the Reference Banks provides such a quotation, LIBOR shall be deemed to be the arithmetic mean of the offered quotations that at least two leading banks in The City of New York selected by the
Calculation Agent are quoting on such LIBOR Determination Date for U.S. Dollar deposits in Europe of the Designated Maturity at approximately 11:00 a.m. (London time) in an amount determined by the Calculation Agent; provided, that if
the Calculation Agent is required but is unable to determine LIBOR in accordance with at least one of the procedures provided above, LIBOR shall be LIBOR in effect for the immediately preceding Interest Period. As used herein, “Reference
Banks” means four major banks in the London interbank market selected by the Calculation Agent. 
  
 (iii) In respect of any Interest Period having a Designated Maturity other than one, two, three or six months, LIBOR shall be determined
through the use of straight line interpolation by reference to two rates calculated in accordance with clauses (i) and (ii) above, one of which shall be determined as if the maturity of the Dollar deposits referred 

  

 B-1 

 
to therein were the period of time for which rates are available next shorter than the Interest Period and the other of which shall be determined as if the
such maturity were the period of time for which rates are available next longer than the Interest Period; provided, that, if an Interest Period is less than or equal to seven days, then LIBOR shall be determined by reference to a rate
calculated in accordance with clauses (i) and (ii) above as if the maturity of the Dollar deposits referred to therein were a period of time equal to seven days. 
  
 For so long as any floating rate Note remains outstanding, the Issuer will at all times maintain an agent appointed to
calculate LIBOR in respect of each Interest Period. As soon as possible after 11:00 a.m. (London time) on each LIBOR Determination Date, but in no event later than 11:00 a.m. (London time) on the Business Day immediately following each LIBOR
Determination Date, the Calculation Agent will calculate the interest rate for the Notes (or, with respect to any LIBOR Determination Date relating to a Borrowing Date, the interest rate for the portion of the Class A-1 Notes being drawn on
such Borrowing Date) for the related Interest Period and the amount of interest for such Interest Period payable in respect of each U.S.$1,000 in principal amount of each Class of Notes (other than the Class C-2 Notes and the Class C-3 Notes at all
times that such Notes bear interest at a fixed rate) (in each case rounded to the nearest cent, with half a cent being rounded upward) on the related Distribution Date and will communicate such rates and amounts and the related Distribution Date to
the Issuer, the Trustee, each Paying Agent (other than the Preferred Share Paying Agent), Euroclear Bank, Clearstream, Luxembourg, DTC and (for so long as any Class of Notes is listed on the Irish Stock Exchange) the Irish Stock Exchange.

  
 As used herein, “Designated Maturity” means
(a) with respect to the portion of Class A-1 Notes funded after the Closing Date (i) for the initial Interest Period for a Borrowing made under the Class A-1 Notes, the number of calendar days from and including the relevant
Borrowing Date to but excluding the Distribution Date immediately following the Interest Period in which such Borrowing is made, (ii) for each Interest Period after the initial Interest Period for a Borrowing made under the Class A-1 Notes
(other than the Interest Period ending on the Stated Maturity), three months and (iii) for the Interest Period ending on the Stated Maturity, the number of calendar days from and including the first day of such Interest Period to but excluding
the final Distribution Date and (b) with respect to the Class A-1 Notes (the portion funded on the Closing Date), the Class A-2 Notes, the Class A-3 Notes, the Class B-1 Notes, the Class C Notes, the Class D-1 Notes and the Class
E Notes (i) for the initial Interest Period, the number of calendar days from and including the Closing Date to but excluding the first Distribution Date, (ii) for each Interest Period after the initial Interest Period (other than the
Interest Period ending on the Stated Maturity), three months and (iii) for the Interest Period ending on the Stated Maturity, the number of calendar days from and including the first day of such Interest Period to but excluding the final
Distribution Date. 
  

 B-2 

 SCHEDULE C 
  

AUCTION PROCEDURES 
  
 The following sets forth the auction procedures (the “Auction Procedures”) to be followed in connection with a sale effected pursuant to Section 9.5 of the
Indenture (the “Indenture”) dated as of December 23, 2005, between TABERNA PREFERRED FUNDING IV, LTD. and JPMorgan Chase Bank, National Association, as trustee (the “Trustee”). Capitalized terms used herein that are not
otherwise defined shall have the meanings ascribed thereto in the Indenture. The following procedures shall be subject to the terms of Section 9.5(ii). 
  

	I.	Pre-Auction Process 

  
 (a) The Trustee will initiate the Auction Procedures at least 24 Business Days prior to each Auction Date by: 
  
 (i) collecting a list prepared by the Collateral Manager and delivered to the Trustee containing the names of the issuer and guarantor (if any), the par
amount and the CUSIP number (if any) with respect to each Pledged Collateral Debt Security and such other information as shall be notified to the Trustee by the Collateral Manager; 
  
 (ii) collecting a list prepared by the Collateral Manager and delivered to the Trustee of the constituents of each Subpool
which shall be based upon the Collateral Manager’s good faith determination of the composition of Subpools that will maximize Sale Proceeds; and 
  
 (iii) sending the lists collected pursuant to clauses (i) and (ii) above to the Qualified Bidders identified on the then-current Qualified
Bidder List and requesting bids on the Auction Date. 
  
 (b) The general
solicitation package which the Trustee shall deliver to the Qualified Bidders will include: (i) a form of a purchase agreement provided to the Trustee by the Collateral Manager (which shall, among other things, provide that (A) upon
satisfaction of all conditions precedent therein, the purchaser is irrevocably obligated to purchase, and the Issuer is irrevocably obligated to sell, the Collateral Debt Securities (or relevant Subpool, as the case may be) on the date and on the
terms and conditions set forth therein and (B) if the Subpools are to be sold to more than one bidder, the consummation of the purchase of each Subpool must occur simultaneously and the closing of each purchase is conditional on the closing of
each of the other purchases); (ii) the minimum purchase price (which shall be the Auction Call Redemption Amount); (iii) a formal bidsheet (which shall permit the relevant bidder to bid for all of the Collateral Debt Securities, any
Subpool or separately for each of the Subpools) provided to the Trustee by the Collateral Manager including a representation from the bidder that it is eligible to purchase all of the Collateral Debt Securities; (iv) a detailed timetable; and
(v) copies of all transfer documents provided to the Trustee by the Collateral Manager (including transfer certificates and subscription agreements which a bidder must execute pursuant to the Underlying Instruments and a list of the
requirements which the bidder must satisfy under the Underlying Instruments (i.e., Qualified Institutional Buyer, etc.)). 
  

 C-1 

 (c) The Trustee shall send solicitation packages to all Qualified Bidders at least 15 Business Days before the Auction
Date. No later than 10 Business Days before the Auction Date, Qualified Bidders may submit written due diligence questions relating to the legal documentation and other information contained in the general solicitation package (including comments on
the draft purchase agreement to be used in connection with the Auction (the “Auction Purchase Agreement”)) to the Collateral Manager; provided, that the Collateral Manager shall only be obligated to answer questions relating to the
Collateral to the extent that it is able to do so by reference to information which it is required to provide under the Collateral Management Agreement. The Collateral Manager shall be solely responsible for (i) responding to all relevant
questions and/or comments submitted to it in accordance with the foregoing and (ii) distributing the questions, answers and revised final Auction Purchase Agreement to all Qualified Bidders at least five Business Days prior to the Auction Date.

  
 (d) To the extent that the information contained in the list of Collateral
Debt Securities or general solicitation package and delivered to the Qualified Bidders pursuant to clauses (a), (b) and (c) above is provided to the Trustee by the Collateral Manager, the Collateral Manager shall indemnify the Trustee and
its Officers, directors, employees and agents for, and hold them harmless against, any loss, liability or expense (including reasonable counsel fees) incurred without negligence, willful misconduct or bad faith on their part, arising out of or in
connection with the provision of such information by the Collateral Manager to the Trustee, including the costs and expenses of defending themselves against any claim or liability in connection with the exercise or performance of any of their powers
or duties hereunder. 
  

	II.	Auction Process 

  
 (a) Subject to Section 9.5(ii), the Collateral Manager will be allowed to bid in the Auction if it deems appropriate, but will not be required to do so. 
  
 (b) On the Auction Date, all bids will be due by facsimile to the offices of the Trustee by
11:00 a.m. New York City time, with the winning bidder to be notified by 2:00 p.m. New York City time. All bids from Qualified Bidders will be due on the bid sheet contained in the solicitation package. Each bid shall be for the purchase and
delivery to one purchaser of (i) all (but not less than all) of the Collateral Debt Securities or (ii) all (but not less than all) of the Collateral Debt Securities that constitute the components of one or more Subpools. 
  
 (c) If the Trustee receives fewer than two bids from Qualified Bidders to purchase all of the
Collateral Debt Securities or to purchase each Subpool, the Trustee may, if a Majority-in-Interest of the Preferred Shareholders consents thereto in writing, and in accordance with all other provisions of this Indenture, accept such bid as the
winning bid. 
  
 (d) The Trustee shall identify as the winning bidder the bid or
bids that result in the Highest Auction Price (in excess of the minimum purchase price) from one or more Qualified Bidders. 
  
 (e) Upon notification to the winning bidder(s), the winning bidder (or, if the Highest Auction Price requires the sale of Subpools to more than one bidder, each winning
bidder) will be required to deliver to the Trustee a signed counterpart of the Auction Purchase Agreement and a good faith deposit equal to one percent (1%) of the Aggregate Principal Balance will be required 

  

 C-2 

 
to be wired to the Trustee no later than 4:00 p.m. New York City time on the Auction Date. If the Highest Auction Price requires the sale of Subpools to more
than one bidder, each winning bidder shall contribute to the good faith deposit an amount equal to one percent (1%) of the Aggregate Principal Balance of the Subpool or Subpools to which its bid relates. Such deposit will not be invested. This
deposit will be credited to the purchase price but will not be refundable. The Trustee will establish a separate account for the acceptance of the good faith deposit, until such time as the winning bidder (or, if the Highest Auction Price requires
the sale of Subpools to more than one bidder, each winning bidder) pays the full purchase price in cash, at which time all monies will be transferred into the Collection Accounts, such payment in full of the purchase price to be made by the winning
bidder prior to the sixth Business Day following the relevant Auction Date. If such good faith deposit or payment in full of the purchase price is not made when due (or, if the Subpools are to be sold to more than one bidder, if any bidder fails to
make its contribution to the good faith deposit or make payment of the purchase price when due), the Trustee shall decline to consummate the sale of each Subpool and shall give notice (in accordance with Section 9.3) that the Auction Call
Redemption will not occur. 
  

 C-3 

 SCHEDULE D 
  

STANDARD & POOR’S NOTCHING OF COLLATERAL DEBT SECURITIES 
  
 The Standard & Poor’s rating of a Senior Note or CMBS that has not been assigned a rating by
Standard & Poor’s may be determined as set forth below. 
  

	 	A.	If such Collateral Debt Security is rated by Moody’s and Fitch, the Standard & Poor’s rating of such Collateral Debt Security shall be the Standard &
Poor’s equivalent of the rating that is the number of subcategories specified in Table A below the lower of the ratings assigned by Moody’s and Fitch. 

  

	 	B.	If the Collateral Debt Security is rated by Moody’s or Fitch, the Standard & Poor’s rating of such Collateral Debt Security shall be the Standard &
Poor’s equivalent of the rating that is one subcategory below the rating that is the number of subcategories specified in Table A below the rating assigned by Moody’s or Fitch. 

  
 This Schedule may be modified from time to time by Standard &
Poor’s and its applicability should be confirmed with Standard & Poor’s prior to use. 
  
 TABLE A 
  

									
	 	  	Asset-Backed Securities
issued prior to
August 1, 2001

	  	Asset-Backed Securities
issued on or after
August 31, 2001

	 	  	(Lowest) current rating is:

	  	(Lowest) current rating is:

	 	  	“BBB-” or
its
equivalent
or higher

	  	Below
“BBB-” or
its
equivalent

	  	“BBB-” or
its
equivalent
or higher

	  	Below
“BBB-” or
its
equivalent

	 1. Non-Re-REMIC CMBS
	  	-1	  	-2	  	-2	  	-3
	 CMBS – Conduit
	  	 	  	 	  	 	  	 
	 CMBS – Credit Tenant Lease
	  	 	  	 	  	 	  	 
	 CMBS – Large Loan
	  	 	  	 	  	 	  	 
	 CMBS – Single Borrower
	  	 	  	 	  	 	  	 
	 CMBS – Single Property
	  	 	  	 	  	 	  	 
					
	 2. REITs
	  	-1	  	-2	  	-2	  	-3
	 REIT – Multifamily & Mobile
	  	 	  	 	  	 	  	 
	 Home Park
	  	 	  	 	  	 	  	 
	 REIT – Retail
	  	 	  	 	  	 	  	 
	 REIT – Hospitality
	  	 	  	 	  	 	  	 
	 REIT – Office
	  	 	  	 	  	 	  	 
	 REIT – Industrial
	  	 	  	 	  	 	  	 
	 REIT – Healthcare
	  	 	  	 	  	 	  	 
	 REIT – Warehouse
	  	 	  	 	  	 	  	 
	 REIT – Self Storage
	  	 	  	 	  	 	  	 
	 REIT – Mixed Use
	  	 	  	 	  	 	  	 
					
	 3. Real Estate Operating Companies
	  	-1	  	-2	  	-2	  	-3

  
 As of
[            ], 2005 
  

 D-1 

 EXHIBIT A-1 
  
 [FORM OF REGULATION S GLOBAL NOTE] 
  

 A-1-1 

 EXHIBIT A-2 
  
 [FORM OF RESTRICTED GLOBAL NOTE] 
  

 A-2-1 

 EXHIBIT B-1 
  
 [FORM OF REGULATION S DEFINITIVE NOTE] 
  

 B-1-1 

 EXHIBIT B-2 
  
 [FORM OF RESTRICTED DEFINITIVE NOTE] 
  

 B-2-1 

 EXHIBIT C-1 
  
 [FORM OF RULE 144A TRANSFER CERTIFICATE] 
  

 C-1-1 

 EXHIBIT C-2 
  
 [FORM OF REGULATION S NOTE TRANSFER CERTIFICATE] 
  

 C-2-1 

 EXHIBIT D 
  

[FORM OF FUNDING CERTIFICATE] 
  

 D-1 

 EXHIBIT E 
  

[FORM OF OPINION OF MAYER, BROWN, ROWE & MAW LLP] 
  

 E-1 

 EXHIBIT F 
  

[FORM OF OPINION OF COUNSEL TO THE COLLATERAL MANAGER] 
  

 F-1 

 EXHIBIT G 
  

[FORM OF OPINION OF COUNSEL TO THE TRUSTEE] 
  

 G-1 

 EXHIBIT H 
  

[FORM OF OPINION OF CAYMAN ISLANDS COUNSEL TO THE ISSUER] 
  

 H-1 

 EXHIBIT I 
  

[RESERVED] 
  

 I-1 

 EXHIBIT J 
  

[FORM OF OPINION OF INTERNAL COUNSEL TO HEDGE COUNTERPARTY] 
  

 J-1 

 EXHIBIT K 
  

PERFECTION REPRESENTATIONS, WARRANTIES AND COVENANTS 
  
 In addition to the representations, warranties and covenants contained in this Indenture, the Issuer hereby represents, warrants, and covenants to the
Trustee and the Noteholders as to itself as follows, on the Closing Date: 
  
 General 
  
 1. The
Indenture creates a valid and continuing security interest (as defined in the applicable Uniform Commercial Code) in the collateral described in clauses (a) through (f) inclusive of the first paragraph of the Granting Clauses of the
Indenture (the “Collateral”) in favor of the Trustee, which security interest is prior to all other liens and is enforceable against creditors of and purchasers from the Issuer. 
  
 2. The Collateral constitutes either “general intangibles,” “instruments,” “securities
entitlements,” “certificated securities,” “uncertificated securities,” “money” or “deposit accounts” within the meaning of the applicable Uniform Commercial Code. 
  
 3. The Interest Collection Account, the Principal Collection Account, the
Payment Account, the Expense Account, the Interest Reserve Account, the Hedge Counterparty Collateral Account, the First Distribution Date Reserve Account, the Semi-Annual Interest Reserve Account and the Custodial Account (the “Accounts”)
and all subaccounts thereof, constitute either a deposit account or a securities account. 
  
 4. All of the Collateral that constitutes security entitlements has been or will be credited to the Custodial Account. The Custodian that has created and is maintaining the Custodial Account, and all subaccounts
thereof, has agreed to treat all assets credited to the Custodial Account as “financial assets” within the meaning of the applicable Uniform Commercial Code. 
  
 Creation 
  
 5. The Issuer owns and has good and marketable title to the Collateral free and clear of any lien, claim or encumbrance of any Person. 
  
 6. The Issuer has received all consents and approvals required by the terms
of any item of the Collateral to the Grant to the Trustee of its security interest and rights in the Collateral hereunder. 
  

 K-1 

 Perfection 
  

7. The Issuer has caused or will have caused, within ten days after the Closing Date of the Indenture, the filing of all appropriate financing
statements in the proper filing office in the appropriate jurisdictions under applicable law in order to perfect the security interest Granted to the Trustee hereunder in the Collateral in which a security interest may be perfected by filing.

  
 8. With respect to Collateral that constitutes deposit
accounts (as defined in the applicable Uniform Commercial Code), the Issuer has taken all steps necessary to cause the Trustee to become the account holder of such Accounts. 
  
 9. With respect to Collateral that constitutes securities accounts (as defined in the applicable Uniform Commercial Code) or
security entitlements (as defined in the applicable Uniform Commercial Code), the Issuer has delivered to the Trustee a fully executed agreement pursuant to which the securities intermediary maintaining such securities account has agreed to comply
with all entitlement orders (as such term is defined in the applicable Uniform Commercial Code) originated by the Trustee relating to the securities accounts and the related security entitlements without further consent by the Issuer. 
  
 Priority 
  
 10. Other than the security interest Granted to the Trustee pursuant to this Indenture, the Issuer has not pledged,
assigned, sold, granted a security interest in, or otherwise conveyed any of the Collateral. The Issuer has not authorized the filing of, and is not aware of, any financing statements against the Issuer that include a description of collateral
covering the Collateral other than any financing statement relating to the security interest Granted to the Trustee pursuant to this Indenture or that has been terminated. 
  
 11. The Issuer is not aware of any judgment, ERISA, Pension Benefit Guaranty Corporation or tax lien filings against the
Issuer. 
  
 12. With regard to Certificated Securities and
Instruments in physical form, the Custodian has possession of the originals thereof and none of the instruments that constitute or evidence the Collateral has any marks or notations indicating that they have been pledged, assigned or otherwise
conveyed to any Person other than the Trustee. 
  
 13. Neither the
Custodial Account nor any subaccount thereof are in the name of any person other than the Trustee. The Trustee has not consented to the securities intermediary of any Custodial Account complying with entitlement orders of any person other than the
Trustee. 
  
 14. None of the deposit accounts nor any subaccount
thereof are in the name of any person other than the Trustee. The Trustee has not consented to the bank maintaining the deposit accounts complying with instructions of any person directing disposition of any of the funds in the deposit accounts.

  

 K-2 

 Survival of Perfection Representations 
  
 15. Notwithstanding any other provision of this Indenture or any other
Transaction Document, the Perfection Representations contained in this Exhibit shall be continuing, and remain in full force and effect until such time as all obligations under the Indenture and the Notes have been finally and fully paid and
performed. 
  
 No Waiver 
  
 16. The parties to this Indenture: (i) shall not, without obtaining a
confirmation of the then-current rating of the Securities, waive any of the Perfection Representations; (ii) shall provide the Rating Agencies with prompt written notice of any breach of the Perfection Representation; and (iii) shall not,
without obtaining a confirmation of the then-current rating of the Securities (as determined after any adjustment or withdrawal of the ratings following notice of such breach) waive a breach of any of the Perfection Representations. 
  
 Issuer to Maintain Perfection and Priority 
  
 17. The Issuer covenants that, in order to evidence the interests of the
Trustee under this Indenture, the Issuer shall, or shall cause the Collateral Administrator to, take such action, or execute and deliver such instruments (other than effecting a Filing (as defined below), unless such Filing is effected in accordance
with this paragraph) as may be necessary or advisable (including, without limitation, such actions as are requested by the Trustee) to maintain and perfect, as a first priority interest, the Trustee’s security interest in the Collateral. The
Issuer shall, or shall cause the Collateral Administrator to, from time to time and within the time limits established by law, prepare and present to the Trustee for the Trustee to authorize (based in reliance on the Opinion of Counsel hereinafter
provided for) the Issuer or the Collateral Administrator on its behalf to file, all financing statements, amendments, continuations, initial financing statements in lieu of a continuation statement, terminations, partial terminations, releases or
partial releases, or any other filings necessary or advisable to continue, maintain and perfect the Trustee’s security interest in the Collateral as a first-priority interest (each a “Filing”). The Issuer shall, or shall cause the
Collateral Administrator, to present each such Filing to the Trustee together with (x) an Opinion of Counsel to the effect that such Filing is (i) consistent with the grant of the security interest to the Trustee pursuant to the Granting
Clause of this Indenture, (ii) satisfies all requirements and conditions to such Filing in this Indenture and (iii) satisfies the requirements for a Filing of such type under the Uniform Commercial Code in the applicable jurisdiction (or
if the Uniform Commercial Code does not apply, the applicable statute governing the perfection of security interests), and (y) a form of authorization for the Trustee’s signature. Upon receipt of such Opinion of Counsel and form of
authorization, the Trustee shall promptly authorize in writing the Issuer, or the Collateral Administrator on behalf of the Issuer, to, and the Issuer or the Collateral Administrator shall, effect such Filing under the Uniform Commercial Code
without the signature of the Issuer or the Trustee where allowed by applicable law. Notwithstanding anything else in the Indenture to the contrary, neither the Issuer nor the Collateral Administrator on behalf of the Issuer shall have any authority
to effect a Filing without obtaining the prior written authorization from the Trustee in accordance with this paragraph 17. 
  

 K-3 

 EXHIBIT L 
  

Form of Beneficial Owner Certificate 
  
 JPMorgan Chase Bank, National Association 
   as Trustee 

600 Travis Street 
 50th Floor 
 Houston, Texas 77002 
  
 TABERNA PREFERRED FUNDING IV, LTD. 
 c/o Walkers SPV Limited 
 Walker House 
 P.O. Box 908 GT 
 George Town 
 Grand Cayman 
 Cayman Islands 

British West Indies 
  
 Ladies and Gentlemen: 
  
 The
undersigned hereby certifies that it is the beneficial owner of $                     in principal amount of the [[Class A-1/Class A-2/Class
A-3/ Class B/ Class C/Class D/Class E] Note issued by TABERNA PREFERRED FUNDING IV, LTD. [and TABERNA PREFERRED FUNDING IV, INC.]] and hereby requests the Trustee to provide to it at the following address the [Monthly Report specified in
Section 10.9(a)] [Ramp-Up Completion Date Report in Section 10.9(b)] [Note Valuation Report specified in Section 10.9(c)] of the Indenture. 
  
 Name: 
 Address: 
  
 IN WITNESS WHEREOF, the undersigned has caused this certificate to be duly
executed this              day of                     ,
            . 
  

			
	[NAME OF BENEFICIAL OWNER]
		
	By:	 	 
	 	 	Authorized Signatory

  

 L-1 

 EXHIBIT M 
  

FORM OF SECTION 3(c)(7) REMINDER NOTICE 
  

			
	To:	  	 All DTC Participants holding an interest in
 Class A-1
First Priority Delayed Draw Senior Secured Floating Rate Notes Due May 5, 2036

	 	  	Class A-2 Second Priority Senior Secured Floating Rate Notes Due May 5, 2036
	 	  	Class A-3 Third Priority Senior Secured Floating Rate Notes Due May 5, 2036
	 	  	Class B-1 Fourth Priority Senior Secured Floating Rate Notes Due May 5, 2036
	 	  	Class B-2 Fourth Priority Senior Secured Fixed Rate Notes Due May 5, 2036
	 	  	Class C-1 Deferrable Fifth Priority Secured Floating Rate Notes Due May 5, 2036
	 	  	Class C-2 Deferrable Fifth Priority Secured Fixed/Floating Rate Notes Due May 5, 2036
	 	  	Class C-3 Deferrable Fifth Priority Secured Fixed/Floating Rate Notes Due May 5, 2036
	 	  	Class D-1 Deferrable Mezzanine Secured Floating Rate Notes Due May 5, 2036
	 	  	Class D-2 Deferrable Mezzanine Secured Fixed Rate Notes Due May 5, 2036
	 	  	Class E Deferrable Subordinate Secured Floating Rate Notes Due May 5, 2036
		
	From:	  	TABERNA PREFERRED FUNDING IV, LTD. and TABERNA PREFERRED FUNDING IV, INC.
		
	Date:	  	[insert date]
		
	Subject:	  	 Reminder of Section 3(c)(7) requirements and restrictions related to
 Class A-1 First Priority Delayed Draw Senior Secured Floating Rate Notes Due May 5, 2036

	 	  	Class A-2 Second Priority Senior Secured Floating Rate Notes Due May 5, 2036
	 	  	Class A-3 Third Priority Senior Secured Floating Rate Notes Due May 5, 2036
	 	  	Class B-1 Fourth Priority Senior Secured Floating Rate Notes Due May 5, 2036
	 	  	Class B-2 Fourth Priority Senior Secured Fixed Rate Notes Due May 5, 2036
	 	  	Class C-1 Deferrable Fifth Priority Secured Floating Rate Notes Due May 5, 2036
	 	  	Class C-2 Deferrable Fifth Priority Secured Fixed/Floating Rate Notes Due May 5, 2036
	 	  	Class C-3 Deferrable Fifth Priority Secured Fixed/Floating Rate Notes Due May 5, 2036
	 	  	Class D-1 Deferrable Mezzanine Secured Floating Rate Notes Due May 5, 2036
	 	  	Class D-2 Deferrable Mezzanine Secured Fixed Rate Notes Due May 5, 2036
	 	  	Class E Deferrable Subordinate Secured Floating Rate Notes Due May 5, 2036
		
	 	  	Reference is made to the Indenture dated as of December 23, 2005 (the “Indenture”) among TABERNA PREFERRED FUNDING IV, LTD. (the “Issuer”), TABERNA PREFERRED FUNDING IV,
INC. (the “Co-Issuer”), and JPMorgan Chase Bank, National Association (the “Trustee”). All capitalized terms used in this Reminder Notice that are not defined herein are used as defined in the Indenture.

  

 M-1 

 Every beneficial owner of an interest in a Global Note (the “Note”) (each a “Beneficial
Holder”) is required to be a Qualified Purchaser that can at all times make the following representations to the effect that such Beneficial Holder: 
  
 (1) Is a Qualified Purchaser; 
  
 (2) Is not a dealer described in paragraph (a)(1)(ii) of Rule 144A unless such purchaser owns and invests on a discretionary basis at least
U.S.$25,000,000 in securities of issuers that are not affiliated persons of the dealer; 
  
 (3) Is not a plan referred to in paragraph (a)(1)(i)(D) or (a)(1)(i)(E) of Rule 144A, or a trust fund referred to in paragraph (a)(1)(i)(F) of Rule 144A that holds the assets of such a plan, unless investment
decisions with respect to the plan are made solely by the fiduciary, trustee or sponsor of such plan; 
  
 (4) Is acting for its own account for investment purposes and not with a view to the distribution of its interest in the Note; 
  
 (5) Will hold and transfer its interest in the Note in at least the minimum
denomination set forth in the Indenture; and 
  
 (6) Is aware, and
will advise any future holder of an interest in the Note upon the transfer of the Note, that such transfer is being made in reliance on Rule 144A and is subject to the restrictions on transfer set forth in this Reminder Notice, as described more
particularly in the Indenture. 
  
 An interest in the Note can
only be transferred to a Qualified Purchaser that can make all of the representations set forth above. 
  
 The [Co-Issuers][Issuer] of the Note [have][has] the absolute and unrestricted right to refuse the transfer of an interest in the Note to any Person who
is not a Qualified Purchaser. The [Co-Issuers][Issuer] further [have][has] the right to require that any Beneficial Holder who is determined not to be a Qualified Purchaser at the time of its acquisition of such interest transfer such interest to a
Person who is a Qualified Purchaser. 
  
 Any DTC Participant or
other Person receiving this Reminder Notice that is not a Beneficial Holder is requested to forward this Reminder Notice to the appropriate Beneficial Holder, which Beneficial Holder must be able to make the representations set forth herein.

  
 Any recipient of this Reminder Notice should contact JPMorgan
Chase Bank, National Association, Corporate Trust Office, facsimile no. (713) 216-2101, Attention: Worldwide Securities Services – TABERNA PREFERRED FUNDING IV, LTD with any questions or comments regarding the content of this Reminder
Notice or to alert the Issuer of the inability of any Beneficial Holder to make any of the representations set forth herein. 
  

 M-2 

 EXHIBIT N 
  

FORM OF IMPORTANT SECTION 3(c)(7) NOTICE 
  
 The Depository Trust Company 
 IMPORTANT

  

			
	 B#:
	  	[number]
		
	 DATE:
	  	[___________], 2005
		
	 TO:
	  	ALL PARTICIPANTS
		
	 FROM:
	  	Merrill Lynch, Pierce, Fenner & Smith Incorporated
		
	 ATTENTION:
	  	Managing Partner/Officer; Cashier, Operations, Data Processing and Underwriting Managers
		
	 SUBJECT:
	  	Section 3(c)(7) restrictions for TABERNA PREFERRED FUNDING IV, LTD. and TABERNA PREFERRED FUNDING IV, INC.
	 	  	Class A-1 First Priority Delayed Draw Senior Secured Floating Rate Notes Due May 5, 2036
	 	  	Class A-2 Second Priority Senior Secured Floating Rate Notes Due May 5, 2036
	 	  	Class A-3 Third Priority Senior Secured Floating Rate Notes Due May 5, 2036
	 	  	Class B-1 Fourth Priority Senior Secured Floating Rate Notes Due May 5, 2036
	 	  	Class B-2 Fourth Priority Senior Secured Fixed Rate Notes Due May 5, 2036
	 	  	Class C-1 Deferrable Fifth Priority Secured Floating Rate Notes Due May 5, 2036
	 	  	Class C-2 Deferrable Fifth Priority Secured Fixed/Floating Rate Notes Due May 5, 2036
	 	  	Class C-3 Deferrable Fifth Priority Secured Fixed/Floating Rate Notes Due May 5, 2036
	 	  	Class D-1 Deferrable Mezzanine Secured Floating Rate Notes Due May 5, 2036
	 	  	Class D-2 Deferrable Mezzanine Secured Fixed Rate Notes Due May 5, 2036
	 	  	Class E Deferrable Subordinate Secured Floating Rate Notes Due May 5, 2036
	
	 (A) CUSIP Number See Attached Annex A.

	
	 (B) Security Description

		
	 	  	TABERNA PREFERRED FUNDING IV, LTD. and TABERNA PREFERRED FUNDING IV, INC.
	 	  	Class A-1 First Priority Delayed Draw Senior Secured Floating Rate Notes Due May 5, 2036
	 	  	Class A-2 Second Priority Senior Secured Floating Rate Notes Due May 5, 2036
	 	  	Class A-3 Third Priority Senior Secured Floating Rate Notes Due May 5, 2036
	 	  	Class B-1 Fourth Priority Senior Secured Floating Rate Notes Due May 5, 2036
	 	  	Class B-2 Fourth Priority Senior Secured Fixed Rate Notes Due May 5, 2036
	 	  	Class C-1 Deferrable Fifth Priority Secured Floating Rate Notes Due May 5, 2036
	 	  	Class C-2 Deferrable Fifth Priority Secured Fixed/Floating Rate Notes Due May 5, 2036

  

 N-1 

							
	 	  	Class C-3 Deferrable Fifth Priority Secured Fixed/Floating Rate Notes Due May 5, 2036
	 	  	Class D-1 Deferrable Mezzanine Secured Floating Rate Notes Due May 5, 2036
	 	  	Class D-2 Deferrable Mezzanine Secured Floating Rate Notes Due May 5, 2036
	 	  	Class E Deferrable Subordinate Secured Floating Rate Notes Due May 5, 2036
	
	 (C) Offer Amount:

				
	 	  	Class A-1 Notes	  	U.S.$[_________]	 	 
	 	  	Class A-2 Notes	  	U.S.$[_________]	 	 
	 	  	 Class A-3 Notes
	  	U.S.$[_________]	 	 
	 	  	 Class B-1 Notes
	  	U.S.$[_________]	 	 
	 	  	 Class B-2 Notes
	  	U.S.$[_________]	 	 
	 	  	 Class C-1 Notes
	  	U.S.$[_________]	 	 
	 	  	 Class C-2 Notes
	  	U.S.$[_________]	 	 
	 	  	 Class C-3 Notes
	  	U.S.$[_________]	 	 
	 	  	 Class D-1 Notes
	  	U.S.$[_________]	 	 
	 	  	 Class D-2 Notes
	  	U.S.$[_________]	 	 
	 	  	 Class E Notes
	  	U.S.$[_________]	 	 
		
	 (D) Managing Underwriter
	  	 Merrill Lynch, Pierce, Fenner & Smith Incorporated

		
	 (E) Paying Agent
	  	 JPMorgan Chase Bank, National Association

		
	 (F) Closing Date
	  	 [____________], 2005

  
 Special Instructions:

  
 See Attached Important Instructions from the Issuer. 
  

 N-2 

 TABERNA PREFERRED FUNDING IV, LTD. (Issuer) 
  
 TABERNA PREFERRED FUNDING IV, INC. (Co-Issuer) 
  
 Class A-1 First Priority Delayed Draw Senior Secured Floating Rate Notes Due May 5, 2036 
 Class A-2 Second Priority Senior Secured Floating Rate Notes Due May 5, 2036 
 Class A-3 Third Priority Senior Secured Floating Rate Notes Due May 5, 2036 
 Class B-1 Fourth Priority Senior Secured Floating Rate Notes Due May 5, 2036 
 Class B-2 Fourth Priority Senior Secured Fixed Rate Notes Due May 5, 2036 
 Class C-1 Deferrable Fifth Priority Secured Floating Rate Notes Due May 5, 2036 
 Class C-2 Deferrable Fifth Priority Secured Fixed/Floating Rate Notes Due May 5, 2036 
 Class C-3 Deferrable Fifth Priority Secured Fixed/Floating Rate Notes Due May 5, 2036 
 Class D-1 Deferrable Mezzanine Secured Floating Rate Notes Due May 5, 2036 
 Class D-2 Deferrable Mezzanine Secured Floating Rate Notes Due May 5, 2036 
 Class E Deferrable Subordinate Secured Floating Rate Notes Due May 5, 2036 
  
 TABERNA PREFERRED FUNDING IV, LTD. (Issuer) 
  

 N-3 

 Annex A to Important Section 3(c)(7) Notice 
  

					
	 	  	 CUSIP

	  	ISIN

	 Class A-1 Notes (Rule 144A)
	  	 87330Y AB 9
	  	US87330YAB92
	 Delayed Draw Series 1
	  	 87330Y AA 1
	  	US87330YAA10
	 Class A-1 Notes (Regulation S)
	  	 G86539 AB 2
	  	USG86539AB24
	 Delayed Draw Series 1
	  	 G86539 AA 4
	  	USG86539AA41
	 Class A-2 Notes (Rule 144A)
	  	 87330Y AC 7
	  	US87330YAC75
	 Class A-2 Notes (Regulation S)
	  	 G86539 AC 0
	  	USG86539AC07
	 Class A-3 Notes (Rule 144A)
	  	 87330Y AD 5
	  	US87330YAD58
	 Class A-3 Notes (Regulation S)
	  	 G86539 AD 8
	  	USG86539AD89
			
	 Class B-1 Notes (Rule 144A)
	  	 87330Y AE 3
	  	US87330YAE32
	 Class B-1 Notes (Regulation S)
	  	 G86539 AE 6
	  	USG86539AE62
	 Class B-2 Notes (Rule 144A)
	  	 87330Y AK 9
	  	US87330YAK91
	 Class B-2 Notes (Regulation S)
	  	 G86539 AK 2
	  	USG86539AK23
			
	 Class C-1 Notes (Rule 144A)
	  	 87330Y AF 0
	  	US87330YAF07
	 Class C-1 Notes (Regulation S)
	  	 G86539 AF 3
	  	USG86539AF38
	 Class C-2 Notes (Rule 144A)
	  	 87330Y AG 8
	  	US87330YAG89
	 Class C-2 Notes (Regulation S)
	  	 G86539 AG 1
	  	USG86539AG11
	 Class C-3 Notes (Rule 144A)
	  	 87330Y AH 6
	  	US87330YAH62
	 Class C-3 Notes (Regulation S)
	  	 G86539 AH 9
	  	USG86539AH93
			
	 Class D-1 Notes (Rule 144A)
	  	 87330Y AL 7
	  	US87330YAL74
	 Class D-1 Notes (Regulation S)
	  	 G86539 AL 0
	  	USG86539AL06
	 Class D-2 Notes (Rule 144A)
	  	 87330Y AJ 2
	  	US87330YAJ29
	 Class D-2 Notes (Regulation S)
	  	 G86539 AJ 5
	  	USG86539AJ59
			
	 Class E Notes (Rule 144A)
	  	 87330X AA 3
	  	US87330XAA37
	 Class E Notes (Regulation S)
	  	 G8653R AA 4
	  	USG8653RAA44
	 Combination Notes (Rule 144A)
	  	 87330X AB 1
	  	US87330XAB10
	 Combination Notes (Regulation S)
	  	 G8653R AB 2
	  	USG8653RAB27
	 Preferred Shares (Rule 144A)
	  	 87330X 20 4
	  	US87330X2045
	 Preferred Shares (Regulation S)
	  	 G8653R 10 6
	  	KYG8653R1065

  

 N-4 

 Exhibit O 
  

Fitch Recovery Rate Matrix 
  

	A:	For Collateral Debt Securities (other than Subordinated Notes or Trust Preferred Securities), the recovery rate is as follows: 

  
 Rating of Liability 
  

																					
	 Domicile

	  	 Seniority

	  	AAA

	 	 	AA

	 	 	A

	 	 	BBB

	 	 	BB

	 	 	B

	 
	 	  	SF Senior AAA	  	80	%	 	83	%	 	86	%	 	89	%	 	92	%	 	95	%
	 	  	SF Non Sr AAA	  	65	%	 	70	%	 	75	%	 	80	%	 	85	%	 	90	%
	 	  	SF AA Senior	  	65	%	 	69	%	 	73	%	 	77	%	 	81	%	 	85	%
	 	  	SF AA Non Sr (>10%)	  	50	%	 	56	%	 	62	%	 	68	%	 	74	%	 	80	%
	 	  	SF AA Non Sr (5-10%)	  	45	%	 	51	%	 	57	%	 	63	%	 	69	%	 	75	%
	 	  	SF AA Non Sr (0-5%)	  	40	%	 	46	%	 	52	%	 	58	%	 	64	%	 	70	%
	 	  	SF Senior A	  	60	%	 	64	%	 	68	%	 	72	%	 	76	%	 	80	%
	 	  	SF A Non Sr (>10%)	  	40	%	 	47	%	 	54	%	 	61	%	 	68	%	 	75	%
	 	  	SF A Non Sr (5-10%)	  	35	%	 	42	%	 	48	%	 	55	%	 	61	%	 	68	%
	 	  	SF A Non Sr (0-5%)	  	30	%	 	36	%	 	42	%	 	48	%	 	54	%	 	60	%
	 	  	SF Senior BBB	  	55	%	 	59	%	 	63	%	 	67	%	 	71	%	 	75	%
	 	  	SF BBB Non Sr (>10%)	  	30	%	 	38	%	 	46	%	 	54	%	 	62	%	 	70	%
	 	  	SF BBB Non Sr (5-10%)	  	25	%	 	33	%	 	41	%	 	48	%	 	56	%	 	63	%
	 	  	SF BBB Non Sr (0-5%)	  	20	%	 	27	%	 	35	%	 	42	%	 	50	%	 	55	%
	 	  	SF Senior BB	  	50	%	 	54	%	 	58	%	 	62	%	 	66	%	 	70	%
	 	  	SF BB Non Sr (>10%)	  	15	%	 	19	%	 	23	%	 	27	%	 	32	%	 	35	%
	 	  	SF BB Non Sr (5-10%)	  	10	%	 	14	%	 	18	%	 	22	%	 	27	%	 	30	%
	 	  	SF BB Non Sr (0-5%)	  	5	%	 	9	%	 	13	%	 	17	%	 	21	%	 	25	%
	 	  	SF B Non Sr (>10%)	  	12	%	 	16	%	 	20	%	 	24	%	 	28	%	 	32	%
	 	  	SF B Non Sr (5-10%)	  	8	%	 	11	%	 	15	%	 	19	%	 	23	%	 	27	%
	 	  	SF B Non Sr (0-5%)	  	3	%	 	7	%	 	11	%	 	14	%	 	18	%	 	22	%
	 	  	SF<B	  	0	%	 	4	%	 	8	%	 	12	%	 	16	%	 	20	%
	 United States
	  	Sovereign	  	20	%	 	21	%	 	23	%	 	24	%	 	24	%	 	25	%
	 United States
	  	REITS	  	52	%	 	55	%	 	59	%	 	62	%	 	63	%	 	65	%
	 United States
	  	Senior Secured	  	56	%	 	62	%	 	67	%	 	72	%	 	76	%	 	80	%
	 United States
	  	Second Lien (Non IG)	  	46	%	 	49	%	 	52	%	 	55	%	 	56	%	 	58	%
	 United States
	  	Senior Unsecured (Non IG)	  	36	%	 	38	%	 	41	%	 	43	%	 	44	%	 	45	%
	 United States
	  	Subordinate (Non IG)	  	24	%	 	26	%	 	27	%	 	29	%	 	29	%	 	30	%
	 United States
	  	Senior Unsecured (IG)	  	44	%	 	47	%	 	50	%	 	52	%	 	54	%	 	55	%
	 United States
	  	Subordinate (IG)	  	24	%	 	26	%	 	27	%	 	29	%	 	29	%	 	30	%

  
 Rating of Liability

  

 O-1 

 EXHIBIT P 
  

Standard & Poor’s Recovery Rate Matrix 
  

	A.	If the Collateral Debt Security (other than a Senior Note, Subordinated Note or a Trust Preferred Security) is the senior-most tranche of securities issued by the issuer of such
Collateral Debt Security the recovery rate is as follows: 

  

																						
	 	  	Recovery Rate by Rating of Notes

	 
	 Standard & Poor’s Rating of Collateral Debt Security

	  	AAA

	 	 	AA

	 	 	A

	 	 	BBB

	 	 	BB

	 	 	B

	 	 	CCC

	 
	 “AAA”
	  	80.0	%	 	85.0	%	 	90.0	%	 	90.0	%	 	90.0	%	 	90.0	%	 	90.0	%
	 “AA–,” “AA” or “AA+”
	  	70.0	%	 	75.0	%	 	85.0	%	 	90.0	%	 	90.0	%	 	90.0	%	 	90.0	%
	 “A-,” “A” or “A+”
	  	60.0	%	 	65.0	%	 	75.0	%	 	85.0	%	 	90.0	%	 	90.0	%	 	90.0	%
	 “BBB–,” “BBB” or “BBB+”
	  	50.0	%	 	55.0	%	 	65.0	%	 	75.0	%	 	85.0	%	 	85.0	%	 	85.0	%

  

 P-1 

	B.	If the Collateral Debt Security (other than a Senior Note, Subordinated Note or a Trust Preferred Security) is not the senior-most tranche of securities issued by the issuer of such
Collateral Debt Security the recovery rate is as follows: 

  

																						
	 Standard & Poor’s Rating of Collateral Debt Security

	  	Recovery Rate by Rating of Notes

	 
	  	AAA

	 	 	AA

	 	 	A

	 	 	BBB

	 	 	BB

	 	 	B

	 	 	CCC

	 
	 “AAA”
	  	65.0	%	 	70.0	%	 	80.0	%	 	85.0	%	 	85.0	%	 	85.0	%	 	85.0	%
	 “AA–,” “AA” or “AA+”
	  	55.0	%	 	65.0	%	 	75.0	%	 	80.0	%	 	80.0	%	 	80.0	%	 	80.0	%
	 “A-,” “A” or “A+”
	  	40.0	%	 	45.0	%	 	55.0	%	 	65.0	%	 	80.0	%	 	80.0	%	 	80.0	%
	 “BBB–,” “BBB” or “BBB+”
	  	30.0	%	 	35.0	%	 	40.0	%	 	45.0	%	 	50.0	%	 	60.0	%	 	70.0	%
	 “BB–,” “BB” or “BB+”
	  	10.0	%	 	10.0	%	 	10.0	%	 	25.0	%	 	35.0	%	 	40.0	%	 	50.0	%
	 “B–,” “B” or “B+”
	  	2.5	%	 	5.0	%	 	5.0	%	 	10.0	%	 	10.0	%	 	20.0	%	 	25.0	%
	 “CCC+” and below
	  	0.0	%	 	0.0	%	 	0.0	%	 	0.0	%	 	2.5	%	 	5.0	%	 	5.0	%

  

	C.	If the Collateral Debt Security is a Subordinated Note or a Trust Preferred Security, the recovery rate will be 25%. 

  

	D.	If the Collateral Debt Security is a Senior Note, the recovery rate will be [40]%. 

  

 P-2 

 EXHIBIT Q 
  

Moody’s Recovery Rate Matrix 
  

																			
	 Percentage of Total Capitalization

	  	Moody’s Rating*

	 
	  	Aaa

	 	 	Aa

	 	 	A

	 	 	Baa

	 	 	Ba

	 	 	B

	 
	 Greater than 70%
	  	85	%	 	80	%	 	65	%	 	55	%	 	45	%	 	30	%
	 Less than or equal to 70%, but greater than 10%
	  	75	%	 	70	%	 	55	%	 	45	%	 	35	%	 	25	%
	 Less than or equal to 10%, but greater than 5%
	  	65	%	 	55	%	 	45	%	 	35	%	 	25	%	 	15	%
	 Less than or equal to 5%, but greater than 2%
	  	55	%	 	45	%	 	35	%	 	30	%	 	20	%	 	10	%
	 Less than or equal to 2%
	  	45	%	 	35	%	 	25	%	 	20	%	 	10	%	 	5	%

  

	*	The rating assigned by Moody’s on the date of issuance for such Collateral Debt Security. 

  
 The Moody’s Recovery Rate for publicly rated REITs shall be 40%. 
  

 Q-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}]]