Document:

a50319423ex4_1.htm

Exhibit 4.1

 

 

CLI FUNDING V LLC

 

Issuer

 

 

and

 

 

U.S. BANK NATIONAL ASSOCIATION

 

Indenture Trustee

 

______________________________

 

SERIES 2012-1 SUPPLEMENT

 

Dated as of June 21, 2012

 

 

to

 

INDENTURE

 

March 18, 2011

 

______________________________

 

 

FIXED RATE ASSET BACKED NOTES, SERIES 2012-1

 

 

  

  

  

 

TABLE OF CONTENTS

 

	
ARTICLE I    Definitions; Calculation Guidelines

	
1

	
Section 101.

	
Definitions

	
1

	
ARTICLE II   Creation of the Series 2012-1 Notes

	
5

	
Section 201.

	
Designation

	
5

	
Section 202.

	
Authentication and Delivery

	
6

	
Section 203.

	
Interest Payments on the Series 2012-1 Notes

	
7

	
Section 204.

	
Principal Payments on the Series 2012-1 Notes

	
8

	
Section 205.

	
Prepayment of Principal on the Series 2012-1 Notes

	
8

	
Section 206.

	
Payments of Principal and Interest

	
9

	
Section 207.

	
Restrictions on Transfer

	
9

	
ARTICLE III  Series 2012-1 Series Account and Allocation and Application of Amounts Therein; Pre-Funding Account

	
14

	
Section 301.

	
Series 2012-1 Series Account

	
14

	
Section 302.

	
Distributions from Series 2012-1 Series Account

	
15

	
Section 303.

	
Pre-Funding Account for Series 2012-1 Notes

	
17

	
Section 304.

	
LPO Account

	
18

	
ARTICLE IV  Additional Covenants

	
19 

	
Section 401.

	
Other Information

	
19

	
Section 402.

	
Use of Proceeds

	
19

	
ARTICLE V   Conditions to Issuance

	
19

	
Section 501.

	
Conditions to Issuance

	
19

	
ARTICLE VI  Representations and Warranties

	
20

	
Section 601.

	
Existence

	
20

	
Section 602.

	
Authorization

	
20

	
Section 603.

	
No Conflict; Legal Compliance

	
20

	
Section 604.

	
Validity and Binding Effect

	
20

	
Section 605.

	
Financial Statements

	
20

	
Section 606.

	
Place of Business

	
21

	
Section 607.

	
No Agreements or Contracts

	
21

	
Section 608.

	
Consents and Approvals

	
21

	
Section 609.

	
Margin Regulations

	
21

	
Section 610.

	
Taxes

	
21

	
Section 611.

	
Other Regulations

	
22

	
Section 612.

	
Solvency and Separateness

	
22

	
Section 613.

	
No Default

	
23

	
Section 614.

	
Litigation and Contingent Liabilities

	
23

	
Section 615.

	
Title; Liens

	
23

	
Section 616.

	
Subsidiaries

	
23

	
Section 617.

	
No Partnership

	
23

	
Section 618.

	
Pension and Welfare Plans

	
23

	
Section 619.

	
Ownership of the Issuer

	
23

	
Section 620.

	
Security Interest Representations

	
23

 

  

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Section 621.

	
Survival of Representations and Warranties

	
25

	
Section 622.

	
ERISA Lien

	
25

	
ARTICLE VII  Miscellaneous Provisions

	
25

	
Section 701.

	
Ratification of Indenture

	
25

	
Section 702.

	
Counterparts

	
25

	
Section 703.

	
Governing Law

	
25

	
Section 704.

	
Notices to Rating Agency

	
25

	
Section 705.

	
Statutory References

	
26

	
Section 706.

	
Amendments and Modifications

	
26

	
Section 707.

	
Consent to Jurisdiction

	
26

	
Section 708.

	
Waiver of Jury Trial

	
26

 

EXHIBITS

 

	
EXHIBIT A-1

	
Form of 144A Global Notes

	
EXHIBIT A-2

	
Form of Regulation S Temporary Global Note

	
EXHIBIT A-3

	
Form of Permanent Regulation S Global Note

	
EXHIBIT A-4

	
Form of Note Issued to Institutional Accredited Investors

	
EXHIBIT B

	
Form of Certificate to be Given by Noteholder

	
EXHIBIT C

	
Form of Certificate to be Given by Euroclear or Clearstream

	
EXHIBIT D

	
Form of Certificate to be Given by Transferee of Beneficial Interest In a Regulation S Temporary Global Note

	
EXHIBIT E

	
Form of Transfer Certificate for Exchange or Transfer From 144A Book Entry Note to Regulation S Book Entry Note

	
EXHIBIT F

	
Form of Transfer Certificate for Exchange or Transfer From Regulations S Book Entry Note to a 144A Book Entry Note

	
EXHIBIT G

	
Form of Initial Purchaser Exchange Instructions

	
EXHIBIT H

	
Form of Purchaser Letter

 

SCHEDULES

 

	
SCHEDULE 1

	
Targeted Principal Balances

 

  

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SERIES 2012-1 SUPPLEMENT, dated as June 21, 2012 (as amended, modified, and supplemented from time to time in accordance with the terms hereof, this “Supplement”), between CLI Funding V LLC, a limited liability company organized and existing under the laws of the State of Delaware (the “Issuer”), and U.S. Bank National Association, a national banking association, as Indenture Trustee (the “Indenture Trustee”).

 

WHEREAS, pursuant to the Indenture, dated as of March 18, 2011 (as amended and supplemented from time to time in accordance with its terms, the “Indenture”), between the Issuer and the Indenture Trustee, the Issuer may from time to time direct the Indenture Trustee to authenticate one or more new Series of Notes. The Principal Terms of any new Series are to be set forth in a Supplement to the Indenture; and

 

WHEREAS, pursuant to Section 1006 of the Indenture, this Supplement is entered into by the Issuer and the Indenture Trustee to create a new Series of Notes (“Series 2012-1”) and to specify the Principal Terms thereof.

 

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

 

ARTICLE I

 

Definitions; Calculation Guidelines

 

Section 101.                      Definitions

 

.  (a)  Whenever used in this Supplement, the following words and phrases shall have the following meanings, and the definitions of such terms are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such terms.

 

“144A Global Notes” means the 144A Global Notes substantially in the form of Exhibit A-1 hereto.

 

“Accelerated Principal Payment Amount” means an amount equal to the excess of (i) total principal payments actually paid to the Series 2012-1 Noteholders during the Accelerated Measurement Period, over (ii) the sum of the Minimum Principal Payment Amount, Scheduled Principal Payment Amounts and voluntary Prepayments actually paid to the Series 2012-1 Noteholders during the Accelerated Measurement Period.

 

“Accelerated Measurement Period” means the period commencing on the date on which an Early Amortization commences and ending on the date on which such Early Amortization Event is cured or waived in accordance with the terms of this Supplement and the Related Documents.

 

“Aggregate Series 2012-1 Note Principal Balance” means, as of any date of determination, an amount equal to the sum of Unpaid Principal Balances of all Series 2012-1 Notes then Outstanding which, as of the Series 2012-1 Closing Date, shall be Two Hundred Twenty-Five Million Dollars ($225,000,000).

 

  

  

  

 

“Control Party” means, with respect to the Series 2012-1 Notes, the holders of Series 2012-1 Notes that are more than 50% of the then Aggregate Series 2012-1 Note Principal Balance of all Series 2012-1 Notes then Outstanding.

 

“DB” means Deutsche Bank Securities Inc., a corporation organized under the laws of the State of Delaware and its successors and permitted assigns.

 

“Default Interest” means, the incremental interest specified in Section 203(b) hereof over the amount of interest otherwise payable on such Payment Date pursuant to Section 203(a) hereof, payable by the Issuer resulting from (i) the failure of the Issuer to pay in full on any Payment Date any accrued and unpaid interest, fees, or indemnities on any Series 2012-1 Notes then Outstanding, (ii) the failure of the Issuer to pay in full on the Series 2012-1 Legal Final Maturity Date the then Unpaid Principal Balance of any Series 2012-1 Notes, or (iii) the failure of the Issuer to pay the Unpaid Principal Balance of any Series 2012-1 Notes upon the occurrence of an Event of Default and the acceleration of the Series 2012-1 Notes in accordance with the provisions of the Indenture.

 

“Default Rate” means, for any date of determination, an interest rate per annum equal to the sum of (i) two percent (2%) per annum, plus (ii) the interest rate per annum payable on such Note prior to the event giving rise to such Default Interest.

 

“DTC” shall have the meaning set forth in Section 207.

 

“Early Exercise Date” shall have the meaning set forth in Section 304 hereof.

 

“Final Funding Period Payment Date” shall have the meaning set forth in Section 303(b) hereof.

 

“Funding Period” shall have the meaning set forth in Section 303(a) hereof.

 

“Initial Commitment” means Two Hundred Twenty-Five Million Dollars ($225,000,000).

 

“Initial Purchasers” means each of WFS and DB.

 

“Institutional Accredited Investors” shall have the meaning set forth in Section 207.

 

“Last Exercise Date” shall have the meaning set forth in Section 304 hereof.

 

“Letter of Representations” means the Letter of Representations, dated as of June 21, 2012, between the Issuer and DTC.

 

“LPO Account” shall have the meaning set forth in Section 304 hereof.

 

“Mandatory Special Redemption” shall have the meaning set forth in Section 303(b) hereof.

 

  

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“Mandatory Special Redemption Make Whole Amount” shall have the meaning set forth in Section 303(b) hereof.

 

“Mandatory Special Redemption Principal Amount” shall have the meaning set forth in Section 303(b) hereof.

 

“Minimum Principal Payment Amount” means, for the Series 2012-1 Notes on each Payment Date, an amount equal to the excess, if any, of (x) the Unpaid Principal Balance of the Series 2012-1 Notes, over (y) the Minimum Targeted Principal Balance for the Series 2012-1 Notes on such Payment Date.

 

“Minimum Targeted Principal Balance” means, with respect to the Series 2012-1 Notes for each Payment Date, the amount set opposite such Payment Date on Schedule 1 hereto, as such schedule may be adjusted from time to time in accordance with the terms of the Supplement.

 

“Multiple LPO Lease” shall have the meaning set forth in Section 304 hereof.

 

“Payment Date” means the eighteenth (18th) calendar day of each month or, if such day is not a Business Day, the next succeeding Business Day, commencing on July 18, 2012.

 

“Permanent Regulation S Global Notes” means the Permanent Regulation S Global Notes substantially in the form of Exhibit A-3.

 

“Pre-Funding Account” shall have the meaning set forth in Section 303(a) hereof.

 

“Pre-Funding Amount” shall have the meaning set forth in Section 303(a) hereof.

 

“Purchase Option” shall have the meaning set forth in Section 304 hereof.

 

“Qualified Institutional Buyers” shall have the meaning set forth in Section 207.

 

“Rating Agency” means, for Series 2012-1, S&P.

 

“Regulation S” shall have the meaning set forth in Section 207 hereof.

 

“Regulation S Global Notes” Collectively, the Regulation S Temporary Global Notes and the Permanent Regulation S Global Notes.

 

“Regulation S Temporary Global Notes” means the Regulation S Temporary Global Notes substantially in the form of Exhibit A-2.

 

“Rule 144A” shall have the meaning set forth in Section 207 hereof.

 

  

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“S&P” means Standard & Poor’s Ratings Service, a Standard & Poor’s financial Services LLC business.

 

“Scheduled Principal Payment Amount” means, for the Series 2012-1 Notes on each Payment Date, an amount equal to the excess, if any, of (x) the Unpaid Principal Balance of the Series 2012-1 Notes (calculated after giving effect to any payment of the Minimum Principal Payment Amounts for the Series 2012-1 Notes actually paid on such Payment Date), over (y) the Scheduled Targeted Principal Balance for the Series 2012-1 Notes on such Payment Date.

 

“Scheduled Targeted Principal Balance” means, with respect to the Series 2012-1 Notes for each Payment Date, the amount set forth opposite such Payment Date on Schedule 1 hereto, as such schedule may be adjusted from time to time in accordance with the terms of the Indenture.

 

“Series 2012-1” means the Series of Notes the terms of which are specified in this Supplement.

 

“Series 2012-1 Legal Final Maturity Date” means the Payment Date occurring in June 2027.

 

“Series 2012-1 Note” means any one of the notes issued pursuant to the terms of Section 201(a) of this Supplement, substantially in the form of any of Exhibit A-1, A-2, A-3, or A-4 to this Supplement, and any and all replacements or substitutions of such note.

 

“Series 2012-1 Note Interest Payment”  means, for each Payment Date, an amount equal to the product of (i) the Aggregate Series 2012-1 Note Principal Balance as of the first day of the related Interest Accrual Period, and (ii) an annual rate of interest equal to four and twenty-one hundredths of one percent (4.21%) per annum.  The Series 2012-1 Note Interest Payment will be calculated on the basis of a year consisting of twelve 30-day months.

 

“Series 2012-1 Note Principal Balance” means, with respect to any Series 2012-1 Note as of any date of determination, an amount equal to the excess of (x) the Initial Commitment of such Series 2012-1 Note as of the Closing Date, over (y) the cumulative amount of all Minimum Principal Payment Amounts, Scheduled Principal Payment Amounts and any other principal payments actually paid to the Series 2012-1 Noteholders subsequent to the Closing Date.

 

“Series 2012-1 Note Purchase Agreement” means the Series 2012-1 Note Purchase Agreement, dated as of June 15, 2012, among the Issuer, the Manager and the Initial Purchasers.

 

“Series 2012-1 Noteholder” means, at any time of determination for the Series 2012-1 Notes, any Person in whose name a Series 2012-1 Note is registered in the Note Register.

 

“Series 2012-1 Series Account” means the account of that name established in accordance with Section 301 hereof.

 

  

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“Series 2012-1 Transaction Documents” shall mean, with respect to this Agreement, any and all of the Indenture, this Supplement, the Series 2012-1 Notes, the Management Agreement, the Contribution and Sale Agreement, the Series 2012-1 Note Purchase Agreement, the Director Services Agreement, the Intercreditor Agreement, the Manager Transition Agreement, any Interest Rate Hedge Agreements, together with any insurance policies related thereto, and any and all other agreements, documents, and instruments executed and delivered by or on behalf or in support of the Issuer with respect to the issuance and sale or administration of the Series 2012-1 Notes, as any of the foregoing may from time to time be amended, modified, supplemented, or renewed.

 

“Transferor” shall have the meaning set forth in Section 207 hereof.

 

“U.S. Person” shall have the meaning set forth in Section 207 hereof.

 

“WFS” means Wells Fargo Securities, LLC, a limited liability company organized under the laws of the State of Delaware and its successors and permitted assigns.

 

(b)           Capitalized terms used herein and not otherwise defined shall have the meaning set forth in the Indenture or, if not defined therein, as defined in the Series 2012-1 Note Purchase Agreement.

 

ARTICLE II

 

Creation of the Series 2012-1 Notes

 

Section 201.                      Designation.

 

(a)           There is hereby created a Series of Notes to be issued in one Class pursuant to the Indenture and this Supplement to be known as “CLI Funding V LLC Fixed Rate Asset Backed Notes, Series 2012-1”.  The Series 2012-1 Notes will be issued in the initial principal balance of Two Hundred Twenty-Five Million Dollars ($225,000,000).  The Series 2012-1 Notes shall be “Senior Notes” under the Indenture and will not have priority over any other Senior Series of Notes, except to the extent set forth in the Supplement for such other Senior Series of Notes, and will not be subordinate to any other Senior Series of Notes.  The issuance date of the Series 2012-1 Notes is June 21, 2012.

 

(b)           The Payment Date with respect to the Series 2012-1 Notes shall be the eighteenth (18th) calendar day of each month, or, if such day is not a Business Day, the immediately following Business Day, commencing July 18, 2012 .

 

(c)           Payments of principal on the Series 2012-1 Notes shall be payable from funds on deposit in the Series 2012-1 Series Account or otherwise at the times and in the amounts set forth in Article III of the Indenture and Article III of this Supplement.

 

(d)           The Series 2012-1 Notes are designated as a “Senior Series” and a Series of “Term Notes”, as each such term is used in the Indenture.

 

  

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(e)           The “Expected Final Maturity Date” for Series 2012-1, as such term is used in the Indenture, is the Payment Date occurring in December 2022.

 

(f)           All of the Early Amortization Events set forth in Article XII of the Indenture are applicable to Series 2012-1.

 

(g)           The “Advance Rate” for Series 2012-1, as such term is used in the Indenture, is eighty-five percent (85%).

 

(h)           The “Related Documents” for Series 2012-1, as such term is used in the Indenture, shall be the Series 2012-1 Transaction Documents.

 

(i)           The “Rating Agency” for Series 2012-1, as such term is used in the Indenture, shall be S&P.

 

(j)           The “Record Date” with respect to the initial Payment Date for Series 2012-1 shall be June 21, 2012; and the “Record Date” with respect to each subsequent Payment Date for Series 2012-1 shall be determined in accordance with the definition of “Record Date” as set forth in Section 101 of the Indenture.

 

(k)           In accordance with Section 1006(b)(vii)(B) of the Indenture, the following conditions precedent shall constitute additional conditions precedent to the issuance of any additional Series under the Indenture on or following the date hereof: (A) such additional Series shall have a Legal Final Maturity Date (as defined in the Supplement for such additional Series) that is on or later than the Series 2012-1 Legal Final Maturity Date, (B) such additional Series shall have a Weighted Average Life that is not less than the remaining Weighted Average Life of the Series 2012-1 Notes as of the date of issuance of such additional Series and (C) unless such additional Series is a Subordinate Series, such additional Series shall have an Advance Rate that is equal to or less than the Advance Rate for the Series 2012-1 Notes.

 

(l)           In the event that any term or provision contained herein shall conflict with or be inconsistent with any term or provision contained in the Indenture, the terms and provisions of this Supplement shall govern.

 

Section 202.                      Authentication and Delivery.

 

(a)           On the Closing Date, the Issuer shall sign, and shall direct the Indenture Trustee in writing pursuant to Section 201 of the Indenture to duly authenticate, and the Indenture Trustee, upon receiving such direction, shall (i) authenticate, subject to compliance with the conditions precedent set forth in Section 501 hereof, the Series 2012-1 Notes in accordance with such written directions, and (ii) subject to compliance with the conditions precedent set forth in Section 501 hereof, deliver such Series 2012-1 Notes to the Initial Purchasers in accordance with such written directions.

 

(b)           In accordance with Section 202 of the Indenture, the Series 2012-1 Notes sold in reliance on Rule 144A shall be represented by one or more Rule 144A Global Notes.  Any Series 2012-1 Notes sold in reliance on Regulation S shall be represented by one or more Regulation S Global Notes.  Any Series 2012-1 Notes sold to Institutional Accredited Investors shall be represented by one or more Definitive Notes.

 

  

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(c)           The Series 2012-1 Notes shall be executed by manual or facsimile signature on behalf of the Issuer by any officer of the Issuer and shall be substantially in the forms of Exhibit A-1, A-2, A-3 and A-4 hereto, as applicable.

 

(d)           The Series 2012-1 Notes shall be issued in minimum denominations of $100,000 and in integral multiples of $1,000 thereafter; provided that one Note may be issued in a non-standard denomination.

 

Section 203.                      Interest Payments on the Series 2012-1 Notes.

 

(a)           Interest on Series 2012-1 Notes.  Interest on each Series 2012-1 Note shall (i) accrue during each Interest Accrual Period at a rate per annum equal to four and twenty-one hundredths of one percent (4.21%), (ii) be calculated on the basis of a year consisting of twelve 30-day months, (iii) be due and payable on each Payment Date, (iv) be calculated based on the Series 2012-1 Note Principal Balance of such Series 2012-1 Note, and (v) be payable from the Series 2012-1 Series Account in accordance with Section 302 hereto.  To the extent that the amount of interest which is due and payable on any Payment Date is not paid in full on such date, such shortfall, together with interest thereon at the Default Rate, shall be due and payable on the immediately succeeding Payment Date.

 

(b)           Default Interest on Overdue Amounts.  If the Issuer shall default in the payment of (i) the Series 2012-1 Note Principal Balance of any Series 2012-1 Notes on the Series 2012-1 Legal Final Maturity Date, or (ii) the Series 2012-1 Note Interest Payment on any Series 2012-1 Note on any Payment Date, or (iii) any other amount becoming due under this Supplement, the Issuer shall, from time to time, pay Default Interest on such unpaid amounts, to the extent permitted by Applicable Law, at a rate per annum equal to the Default Rate, for the period during which such principal, interest or other amount shall be unpaid from the due date of such payment to, but not including, the date of actual payment thereof (as well as before judgment).  Default Interest shall be payable at the times and subject to the priorities set forth in Section 302 of the Indenture and Section 302 of this Supplement.

 

(c)           Maximum Interest Rate.  In no event shall the interest charged with respect to a Series 2012-1 Note exceed the maximum amount permitted by Applicable Law.  If at any time the interest rate charged with respect to the Series 2012-1 Notes exceeds the maximum rate permitted by Applicable Law, the rate of interest to accrue pursuant to this Supplement and such Series 2012-1 Note shall be limited to the maximum rate permitted by Applicable Law.  If the total amount of interest paid or accrued on the Series 2012-1 Note under the foregoing provisions is less than the total amount of interest that would have accrued if the interest rate had at all times been in effect, the Issuer agrees to pay to the Series 2012-1 Noteholders an amount equal to the difference between (a) the lesser of (i) the amount of interest that would have accrued if the maximum rate permitted by Applicable Law had at all times been in effect, or (ii) the amount of interest that would have accrued if the interest rate had at all times been in effect, and (b) the amount of interest accrued in accordance with the other provisions of this Supplement.

 

  

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Section 204.                      Principal Payments on the Series 2012-1 Notes.  The principal balance of the Series 2012-1 Notes shall be payable on each Payment Date from amounts on deposit in the Series 2012-1 Series Account in an amount equal to (i) so long as no Early Amortization Event nor an Event of Default is continuing, the Minimum Principal Payment Amount, the Scheduled Principal Payment Amount, and the allocable portion of the Supplemental Principal Payment Amount (if any) for such Series 2012-1 Note for such Payment Date to the extent that funds are available for such purpose in accordance with the provisions of Part I of paragraph (c) of Section 302 of the Indenture, (ii) if an Early Amortization Event, but not an Event of Default, has occurred and is continuing, the Minimum Principal Payment Amount, the Scheduled Principal Payment Amount and the Aggregate Series 2012-1 Note Principal Balance on such Payment Date (after giving effect to any payment of the Minimum Principal Payment Amount and the Scheduled Principal Amount for the Series 2012-1 Notes then outstanding actually paid on such Payment Date) to the extent that funds are available for such purposes in accordance with the provisions of Part (II) of paragraph (c) of Section 302 of the Indenture or (iii) if an Event of Default has occurred and is then continuing, the Minimum Principal Payment Amount, the Scheduled Principal Payment Amount and the Aggregate Series 2012-1 Note Principal Balance (after giving effect to any payment of the Minimum Principal Payment Amount and the Scheduled Principal Amount for the Series 2012-1 Notes then outstanding actually paid on such Payment Date) to the extent that funds are available for such purposes in accordance with the provisions of Part (III) of paragraph (c) of Section 302 of the Indenture.  Payment of the Supplemental Principal Payment Amount on each Payment Date is subordinated to payment in full on such Payment Date of the Minimum Principal Payment Amount and the Scheduled Principal Payment Amount for the Series 2012-1 Notes and any other Notes then Outstanding.  The unpaid principal amount of each Series 2012-1 Note, together with all unpaid interest (including all Default Interest), indemnifications, fees, expenses, costs, and other amounts payable by the Issuer to the Series 2012-1 Noteholders, the Indenture Trustee and any Interest Rate Hedge Provider pursuant to the terms of the Indenture and this Supplement, shall be due and payable in full on the earlier to occur of (x) the date on which an Event of Default shall occur and the Series 2012-1 Notes have been accelerated in accordance with the provisions of Section 802 of the Indenture and (y) the Series 2012-1 Legal Final Maturity Date.

 

Section 205.                      Prepayment of Principal on the Series 2012-1 Notes.

 

(a)           The Issuer will not be permitted to make a voluntary Prepayment of all or a portion of, the principal balance of the Series 2012-1 Notes prior to the twenty-fourth (24th) Payment Date following the Series 2012-1 Closing Date.  On the twenty-fifth (25th) Payment Date following the Series 2012-1 Closing Date and on each Payment Date thereafter, the Issuer will have the option to prepay without penalty on any Payment Date all, or any portion of, the Principal Balance of the Series 2012-1 Notes in a minimum amount of $100,000, together with accrued interest thereon and any early termination fees owing pursuant to the terms of any Interest Rate Hedge Agreements.  The Issuer shall provide prior written notice of any Prepayment to the Indenture Trustee and the Series 2012-1 Noteholders.  Nothing contained herein shall prohibit any allocation to the Series 2012-1 Noteholders of Supplemental Principal Payment Amounts in accordance with Section 702(a) of the Indenture on any Payment Date or the mandatory redemption of the Notes on the Final Funding Period Payment Date from amounts on deposit in the Pre-Funding Account.  Any optional Prepayment of the Series 2012-1 Note Principal Balance shall also include any early termination fees owing pursuant to the terms of any Interest Rate Hedge Agreement and accrued interest to the date of Prepayment on the amount being prepaid.  The Issuer may not make such optional Prepayment from funds in the Trust Account, the Series 2012-1 Series Account, the Restricted Cash Account, the Manager Collection Account, the Pre-Funding Account or the Manager Transition Account, except to the extent that funds in any such account would otherwise be payable to the Issuer in accordance with the terms of this Supplement.  In the event of any optional Prepayment of the Notes in accordance with this Section 205 or any other provision of the Indenture, the Issuer shall pay any termination, notional reduction, breakage or other fees or costs assessed by any Interest Rate Hedge Provider by reason thereof.

 

  

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(b)           Any Prepayment of less than the Aggregate Series 2012-1 Note Principal Balance of the Series 2012-1 Notes made in accordance with the provisions of Section 205 hereof shall be applied to reduce, by a pro rated portion of the amount of such Prepayment, the Minimum Targeted Principal Balances and Scheduled Targeted Principal Balances in respect of each subsequent Payment Date.

 

In addition, if an Early Amortization Event has occurred and been subsequently cured and/or waived, the Accelerated Principal Payment Amount shall be applied to reduce, by a pro rated portion of such Accelerated Principal Payment Amount, the Minimum Targeted Principal Balances and Scheduled Targeted Principal Balances in respect of each subsequent Payment Date.

 

(c)           The Issuer shall provide at least three (3) Business Days’ prior written notice of any Prepayment to the Indenture Trustee and the Holders of the Series 2012-1 Notes.

 

Section 206.                      Payments of Principal and Interest.  All payments of principal and interest on the Series 2012-1 Notes shall be paid to the Series 2012-1 Noteholders reflected in the Note Register as of the related Record Date by wire transfer of immediately available funds for receipt prior to 2:00 p.m. (New York City time) on the related Payment Date.  Any payments received by the Series 2012-1 Noteholders after 2:00 p.m. (New York City time) on any day shall be considered to have been received prior to 2:00 p.m. (New York City time) on the next succeeding Business Day.

 

Section 207.                      Restrictions on Transfer.

 

(a)           On the Closing Date, the Issuer shall sell the Series 2012-1 Notes to the Initial Purchasers pursuant to the Series 2012-1 Note Purchase Agreement and deliver such Series 2012-1 Notes in accordance herewith and therewith.  Thereafter, no Series 2012-1 Note may be sold, transferred, or otherwise disposed of except in compliance with the provisions of the Indenture and except as follows:

 

(A)           to Persons that the transferring Person reasonably believes are Qualified Institutional Buyers in reliance on the exemption from the registration requirements of the Securities Act provided by Rule 144A promulgated thereunder (“Rule 144A”);

 

(B)           not to a U.S. Person in offshore transactions in reliance on Regulation S under the Securities Act (“Regulation S”); or

 

  

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(C)           to institutional “accredited investors” within the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act (“Institutional Accredited Investors”) that take delivery of such Series 2012-1 Note in an amount of at least $100,000 and that deliver an Purchaser Letter substantially in the form of Exhibit H to this Supplement to the Indenture Trustee.

 

The Indenture Trustee shall have no obligations or duties with respect to determining whether any transfers of the Series 2012-1 Notes are made in accordance with the Securities Act or any other law; provided that with respect to Definitive Notes, the Indenture Trustee shall enforce such transfer restrictions in accordance with the terms set forth in this Supplement.

 

(b)           Each purchaser (other than the Initial Purchasers) of the Series 2012-1 Notes (including any purchaser, other than the Initial Purchasers, of an interest in the Series 2012-1 Notes which are Global Notes) shall be deemed to have acknowledged and agreed as follows:

 

(i)           It is (A) a qualified institutional buyer as defined in Rule 144A (“Qualified Institutional Buyer”) and is acquiring such Series 2012-1 Notes for its own institutional account or for the account or accounts of a Qualified Institutional Buyer, (B) purchasing such Series 2012-1 Notes in a transaction exempt from registration under the Securities Act and in compliance with the provisions of this Supplement and in compliance with the legend set forth in clause (iv) below, or (C) not a U.S. Person as defined in Regulation S (a “U.S. Person”) and is acquiring such Series 2012-1 Notes outside of the United States;

 

(ii)           It represents and warrants to the Initial Purchasers, the Issuer, the Indenture Trustee, and the Manager that (a) either (1) it is not, and is not acting on behalf of, a Plan or a governmental, church or non-U.S. plan which is subject to any federal, state, local, or non-U.S. law that is similar to the prohibited transaction provisions of Section 406 of ERISA or Section 4975 of the Code, and no part of the assets to be used by it to purchase or hold the Notes or any interest therein constitutes the assets of any Plan or such a governmental, church, or non-U.S. plan; or (2) (A) the acquisition, holding, and disposition of the Note will not give rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code (or, in the case of a governmental, church, or non-U.S. plan, a violation of any similar federal, state, local, or non-U.S. law) and (B) the Notes are rated investment grade or better and such Person believes that the Notes are properly treated as indebtedness without substantial equity features for purposes of Section 2510.3-101 of the regulations issued by the U.S. Department of Labor, and agrees to so treat the Notes; and (b) it will not sell or otherwise transfer the Notes or any interest therein otherwise than to a purchaser or transferee that represents and agrees with respect to its purchase, holding, and disposition of the Notes to the same effect as the purchaser's representation and agreement set forth in this clause (b)(ii) of Section 207;

 

(iii)           It understands that the Series 2012-1 Notes are being transferred to it in a transaction not involving any public offering within the meaning of the Securities Act, and that, if in the future it decides to resell, pledge, or otherwise transfer any Series 2012-1 Notes, such Series 2012-1 Notes may be resold, pledged or transferred only in accordance with applicable state securities laws and (1) in a transaction meeting the requirements of Rule 144A, to a Person that the seller reasonably believes is a Qualified Institutional Buyer that purchases for its own account (or for the account or accounts of a Qualified Institutional Buyer) and to whom notice is given that the resale, pledge, or transfer is being made in reliance on Rule 144A, (2) to a Person that is an Institutional Accredited Investor, is taking delivery of such Series 2012-1 Notes in an amount of at least $100,000, and delivers a Purchaser Letter to the Indenture Trustee, or (3) in an offshore transaction in accordance with Rule 903 or 904 of Regulation S; and

 

  

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(iv)           It understands that each Series 2012-1 Note shall bear a legend substantially to the following effect:

 

[For Book-Entry Notes Only:  UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRANSFEROR OF SUCH NOTE (THE “TRANSFEROR”) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR THE 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.

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).  THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES THAT SUCH NOTE MAY BE RESOLD, PLEDGED, OR TRANSFERRED ONLY IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS AND (1) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON THAT THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT (OR FOR THE ACCOUNT OR ACCOUNTS OF A QUALIFIED INSTITUTIONAL BUYER) AND TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (2) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT OR (3) TO A PERSON THAT IS AN INSTITUTIONAL “ACCREDITED INVESTOR,” WITHIN THE MEANING OF RULE 501(a)(1), (2), (3), OR (7) OF REGULATION D UNDER THE SECURITIES ACT, IS TAKING DELIVERY OF SUCH NOTE IN AN AMOUNT OF AT LEAST $100,000 AND DELIVERS A PURCHASER LETTER TO THE INDENTURE TRUSTEE IN THE FORM ATTACHED TO THE SUPPLEMENTS.

 

  

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EACH PURCHASER OF A NOTE SHALL REPRESENT OR BE DEEMED TO REPRESENT AND WARRANT TO THE INITIAL PURCHASERS, THE ISSUER, THE INDENTURE TRUSTEE, AND THE MANAGER THAT (A) EITHER (1) IT IS NOT, AND IS NOT ACTING ON BEHALF OF, A PLAN OR A GOVERNMENTAL, CHURCH, OR NON-U.S. PLAN WHICH IS SUBJECT TO ANY FEDERAL, STATE, LOCAL, OR NON-U.S. LAW THAT IS SIMILAR TO THE PROHIBITED TRANSACTION PROVISIONS OF SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND NO PART OF THE ASSETS TO BE USED BY IT TO PURCHASE OR HOLD THE NOTES OR ANY INTEREST THEREIN CONSTITUTES THE ASSETS OF ANY PLAN OR SUCH A GOVERNMENTAL, CHURCH, OR NON-U.S. PLAN; OR (2) (A) THE ACQUISITION, HOLDING, AND DISPOSITION OF THE NOTE WILL NOT GIVE RISE TO A NONEXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE (OR, IN THE CASE OF A GOVERNMENTAL, CHURCH, OR NON-U.S. PLAN, A VIOLATION OF ANY SIMILAR FEDERAL, STATE, LOCAL, OR NON-U.S. LAW) AND (B) THE NOTES ARE RATED INVESTMENT GRADE OR BETTER AND SUCH PERSON BELIEVES THAT THE SERIES 2012-1 NOTES ARE PROPERLY TREATED AS INDEBTEDNESS WITHOUT SUBSTANTIAL EQUITY FEATURES FOR PURPOSES OF SECTION 2510.3-101 OF THE REGULATIONS ISSUED BY THE U.S. DEPARTMENT OF LABOR, AND AGREES TO SO TREAT THE NOTES; AND (B) IT WILL NOT SELL OR OTHERWISE TRANSFER THE NOTES OR ANY INTEREST THEREIN OTHERWISE THAN TO A PURCHASER OR TRANSFEREE THAT REPRESENTS AND AGREES WITH RESPECT TO ITS PURCHASE, HOLDING, AND DISPOSITION OF THE NOTES TO THE SAME EFFECT AS THE PURCHASER'S REPRESENTATION AND AGREEMENT SET FORTH IN THIS SENTENCE.

 

THIS NOTE IS NOT GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.]

 

(v)           It is not a Competitor.

 

(vi)           Each investor described in Section 207(a)(B) understands that the Series 2012-1 Notes have not and will not be registered under the Securities Act, that any offers, sales, or deliveries of the Series 2012-1 Notes purchased by it in the United States or to U.S. Persons prior to the date that is 40 days after the later of (i) the commencement of the distribution of the Series 2012-1 Notes and (ii) the Closing Date, may constitute a violation of United States law, and that distributions of principal and interest will be made in respect of such Series 2012-1 Notes only following the delivery by the holder of a certification of non-U.S. beneficial ownership or the exchange of beneficial interest in Regulation S Temporary Global Notes for beneficial interests in the related 144A Book-Entry Global Notes (which in each case will itself require a certification of non-U.S. beneficial ownership), at the times and in the manner set forth in this Supplement.

 

  

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(vii)           The Regulation S Temporary Global Notes representing the Series 2012-1 Notes sold to each investor described in Section 207(a)(B) will bear a legend to the following effect, unless the Issuer determines otherwise consistent with Applicable Law:

 

[FOR REGULATION S TEMPORARY GLOBAL NOTES ONLY:

 

1.           EACH INVESTOR IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT UNDERSTANDS THAT THE NOTES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT, THAT ANY OFFERS, SALES, OR DELIVERIES OF THE NOTES PURCHASED BY IT IN THE UNITED STATES OR TO U.S. PERSONS PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF (I) THE COMMENCEMENT OF THE DISTRIBUTION OF THE NOTES AND (II) THE CLOSING DATE, MAY CONSTITUTE A VIOLATION OF UNITED STATES LAW, AND THAT DISTRIBUTIONS OF PRINCIPAL AND INTEREST WILL BE MADE IN RESPECT OF SUCH NOTES ONLY FOLLOWING THE DELIVERY BY THE HOLDER OF A CERTIFICATION OF NON-U.S. BENEFICIAL OWNERSHIP OR THE EXCHANGE OF BENEFICIAL INTEREST IN REGULATION S TEMPORARY BOOK-ENTRY NOTES FOR BENEFICIAL INTERESTS IN THE RELATED RULE 144A BOOK-ENTRY NOTES (WHICH IN EACH CASE WILL ITSELF REQUIRE A CERTIFICATION OF NON-U.S. BENEFICIAL OWNERSHIP), AT THE TIMES AND IN THE MANNER SET FORTH IN THE INDENTURE AND THE SUPPLEMENT.

 

2.           THE REGULATION S TEMPORARY BOOK-ENTRY NOTES REPRESENTING THE NOTES SOLD TO EACH INVESTOR IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT WILL BEAR A LEGEND TO THE FOLLOWING EFFECT, UNLESS THE ISSUER DETERMINES OTHERWISE CONSISTENT WITH APPLICABLE LAW:

 

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND, PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF (I) THE COMPLETION OF THE DISTRIBUTION OF THE NOTES AND (II) THE CLOSING DATE, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE PROCEDURES SPECIFIED IN THE INDENTURE.]

 

  

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(viii)           It is purchasing one or more Series 2012-1 Notes in an amount of at least $100,000 and it understands that such Series 2012-1 Notes may be resold, pledged, or otherwise transferred only in an amount of at least $100,000.

 

(ix)           The Indenture Trustee shall not permit the transfer of any Series 2012-1 Notes unless such transfer complies with the terms of the foregoing legends and, in the case of a transfer to an Institutional Accredited Investor (other than a Qualified Institutional Buyer), the transferee delivers a completed Purchaser Letter to the Indenture Trustee.

 

(c)           Forms substantially in the form of Exhibit(s) B through G, as appropriate, shall be completed in connection with any transfer of the Series 2012-1 Notes.

 

Any notice to the Holders of Notes will be validly given (i) by either of (a) the information contained in such notice appearing on the relevant page of the Reuters Screen or such other medium for the electronic display of data as may be approved by the Issuer with notice to Holders of the Notes or (b) publication in the Financial Times and The Wall Street Journal (National Edition) or, if either newspaper will cease to be published or timely publication therein will not be practicable, in such English language newspaper or newspapers as the Issuer will approve having a general circulation in Europe and the United States and (ii) until such time as any Definitive Notes are issued in exchange for the Notes and, so long as such Notes are registered in the name of a nominee for DTC, Euroclear, and/or Clearstream, delivery of the relevant notice to DTC, Euroclear, and/or Clearstream for communication by them to the Holders of the Notes.

 

ARTICLE III

 

Series 2012-1 Series Account and Allocation and Application

of Amounts Therein; Pre-Funding Account

 

Section 301.                      Series 2012-1 Series Account.  The Indenture Trustee shall establish on or prior to the Closing Date and maintain, so long as any Series 2012-1 Note is Outstanding, an Eligible Account which shall be designated as the Series 2012-1 Series Account, which account shall be held in the name of the Indenture Trustee (in its capacity as Securities Intermediary of the Indenture Trustee) for the benefit of the Series 2012-1 Noteholders.  In furtherance of the Grant set forth in the Indenture, the Issuer hereby Grants to the Indenture Trustee for the benefit of the Series 2012-1 Noteholders, among other things, a Lien on the Series 2012-1 Series Account.  All deposits of funds by or for the benefit of the Series 2012-1 Noteholders from the Trust Account, shall be accumulated in, and withdrawn from, the Series 2012-1 Series Account in accordance with the provisions of the Indenture and this Supplement.

 

  

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Section 302.                      Distributions from Series 2012-1 Series Account.  On each Payment Date, the Indenture Trustee shall distribute funds then on deposit in the Series 2012-1 Series Account in accordance with the provisions of either subsection (I), (II) or (III) of this Section 302.

 

(I)           If neither an Early Amortization Event nor an Event of Default shall have occurred and be continuing with respect to any Series of Notes:

 

(1)           To each Holder of a Series 2012-1 Note on the immediately preceding Record Date, an amount equal to its pro rata portion of the Series 2012-1 Note Interest Payment (exclusive of Default Interest) then due and payable for such Payment Date;

 

(2)           To each Holder of a Series 2012-1 Note on the immediately preceding Record Date, an amount equal to its pro rata portion of the Minimum Principal Payment Amount then due and payable to the Holders of the Series 2012-1 Notes on such Payment Date;

 

(3)           To each Holder of a Series 2012-1 Note on the immediately preceding Record Date, an amount equal to its pro rata portion of the Scheduled Principal Payment Amount then due and payable to the Holders of the Series 2012-1 Notes on such Payment Date;

 

(4)           To each Holder of a Series 2012-1 Note on the immediately preceding Record Date, an amount equal to its pro rata portion of the Supplemental Principal Payment Amount then due and payable to the Holders of the Series 2012-1 Notes on such Payment Date, if any;

 

(5)           To each Holder of a Series 2012-1 Note on the immediately preceding Record Date, any indemnification, expenses, and any other amounts (including Default Interest) then due and owing, pro rata; and

 

(6)           After application of the amounts required to be paid pursuant to Section 302 of the Indenture, to the Issuer or at the Issuer’s direction, including to the LPO Account in accordance with Section 304 hereof.

 

(II)           If an Early Amortization Event shall have occurred and be continuing with respect to any Series but no Event of Default shall have occurred and be continuing with respect to any Series:

 

(1)           To each Holder of a Series 2012-1 Note on the immediately preceding Record Date, an amount equal to its pro rata portion of the Series 2012-1 Note Interest Payments (exclusive of Default Interest) then due and payable on such Payment Date;

 

(2)           To each Holder of a Series 2012-1 Note on the immediately preceding Record Date, an amount equal to its pro rata portion of the Minimum Principal Payment Amount then due and payable to the Holders of the Series 2012-1 Notes on such Payment Date;

 

(3)           To each Holder of a Series 2012-1 Note on the immediately preceding Record Date, an amount equal to its pro rata portion of the Scheduled Principal Payment Amount then due and payable to the Holders of the Series 2012-1 Notes on such Payment Date;

 

  

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(4)           To each Holder of a Series 2012-1 Note on the immediately preceding Record Date, an amount equal to the Aggregate Series 2012-1 Note Principal Balance, pro rata, based on the then Unpaid Principal Balance for Series 2012-1;

 

(5)           To each Holder of a Series 2012-1 Note on the immediately preceding Record Date, any indemnification, expenses and any other amounts (exclusive of Default Interest) due and owing to each Holder of a Series 2012-1 Note on the immediately preceding Record Date;

 

(6)           To each Holder of a Series 2012-1 Note on the immediately preceding Record Date, an amount equal to the Default Interest then due and payable to the Holders of a Series 2012-1 Note, including accrued and unpaid Default Interest, pro rata; and

 

(7)           After application of the amounts required to be paid pursuant to Section 302 of the Indenture, to the Issuer, any remaining Available Distribution Amounts.

 

(III)           If an Event of Default shall have occurred and be continuing with respect to any Series:

 

(1)           To each Holder of a Series 2012-1 Note on the immediately preceding Record Date, an amount equal to its pro rata portion of the Series 2012-1 Note Interest Payments (exclusive of Default Interest) then due and payable on such Payment Date;

 

(2)           To each Holder of a Series 2012-1 Note on the immediately preceding Record Date, an amount equal to the Minimum Principal Payment Amount then due and payable on such Payment Date, pro rata, based on the Unpaid Principal Balance at the time of such Event of Default;

 

(3)           To each Holder of a Series 2012-1 Note on the immediately preceding Record Date, an amount equal to the Scheduled Principal Payment Amount then due and payable on such Payment Date, pro rata, based on the Unpaid Principal Balance at the time of such Event of Default;

 

(4)           To each Holder of a Series 2012-1 Note on the immediately preceding Record Date, an amount equal to the Aggregate Series 2012-1 Note Principal Balance, pro rata, based on the then Unpaid Principal Balance of Series 2012-1 at the time of such Event of Default;

 

(5)           To each Holder of a Series 2012-1 Note on the immediately preceding Record Date, an amount equal to any other amounts (including Default Interest) then due and payable to the Holders of Series 2012-1 Note, including accrued and unpaid Default Interest, pro rata; and

 

(6)           After application of the amounts required to be paid pursuant to Section 302 of the Indenture, to the Issuer, any remaining Available Distribution Amounts.

 

  

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Any amounts payable to a Noteholder shall be made by wire transfer of immediately available funds to the account that such Noteholder has designated to the Indenture Trustee in writing on or prior to the Business Day immediately preceding the Payment Date.

 

Section 303.                      Pre-Funding Account for Series 2012-1 Notes.

 

(a)           The Indenture Trustee has established and shall maintain in its name, so long as such account is required under the Indenture, an Eligible Account which shall be designated as the Pre-Funding Account (the “Pre-Funding Account”).  The Pre-Funding Account shall only be relocated in accordance with the provisions of Section 303(e) of the Indenture.  On the Closing Date, the Issuer shall deposit into the Pre-Funding Account approximately $25,000,000 (the “Pre-Funding Amount”) from the proceeds of the sale of the Series 2012-1 Notes.  The Pre-Funding Account is designed solely to hold funds that will be used to acquire additional Containers from the Seller during the Funding Period.  The “Funding Period” will be the period from the Closing Date until the earliest to occur of (i) the date on which the remaining Pre-Funding Amount is less than $25,000, (ii) the date on which an Event of Default occurs, (iii) the date on which an Early Amortization Event occurs or (iv) the close of business on the date that is the three-month anniversary of the Closing Date.

 

(b)           In the event that any portion of the Pre-Funding Amount remains on deposit in the Pre-Funding Account after giving effect to the sale by the Seller to the Issuer of all additional Containers, including any such acquisition and conveyance on the date on which the Funding Period ends, the Series 2012-1 Notes will be redeemed (a “Mandatory Special Redemption”) in part on the Payment Date (the “Final Funding Period Payment Date”) immediately succeeding the date on which the Funding Period ends (or on the Payment Date on which the Funding Period ends, if the Funding Period ends on a Payment Date).  The aggregate principal amount of the Series 2012-1 Notes redeemed in the Mandatory Special Redemption (such amount, the “Mandatory Special Redemption Principal Amount”) shall be equal to the amount remaining on deposit in the Pre-Funding Account on the Final Funding Period Payment Date and shall be deposited in the Series Account for the Series 2012-1 Notes.  In addition, a Mandatory Special Redemption Make Whole Amount shall be due and payable by the Issuer to the Noteholders pro rata on the Final Funding Period Payment Date with respect to any Mandatory Special Redemption.  The “Mandatory Special Redemption Make Whole Amount” shall be equal to the positive difference, if any, of (i) the present value of the expected principal and interest payments with respect to the Mandatory Special Redemption Principal Amount, if it were assumed that the Mandatory Special Redemption Principal Amount would remain outstanding and pay timely interest, minimum and scheduled principal payments through the twenty-fourth (24th) Payment Date following the Closing Date, at which time it would be assumed to be paid in full, discounted at the Mandatory Special Redemption Discount Rate, minus (ii) the Mandatory Special Redemption Principal Amount.  The “Mandatory Special Redemption Discount Rate” will be the interpolated “Swap Rate” with a tenor that is equal to the remaining weighted average life of the Mandatory Special Redemption Principal Amount, based on assumed minimum and scheduled principal payments through a repayment on the 24th Payment Date following the Closing Date.

 

(c)           In the event that no Series 2012-1 Notes are Outstanding on the Final Funding Period Payment Date, all funds then on deposit in the Pre-Funding Account shall be transferred to the Trust Account for application in accordance with Section 302 on such Payment Date.

 

  

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Section 304.                      LPO Account.

 

(a)           The Indenture Trustee has established and shall maintain in its name, so long as the Issuer owns any Multiple LPO Lease, an Eligible Account which shall be designated as the LPO Account (the “LPO Account”).  The LPO Account will hold a portion of the funds otherwise distributable to the Issuer pursuant to the priority of payments set forth in Section 302 of the Indenture if the User under a lease which contains multiple fixed price purchase options (each, a “Purchase Option”) exercisable by such User (each such lease, a “Multiple LPO Lease”) exercises such purchase option at the earliest exercise date set forth in such Multiple LPO Lease (such date, the “Early Exercise Date”).

 

(b)           If a User under a Multiple LPO Lease exercises the Purchase Option on the Early Exercise Date, the Issuer hereby irrevocably directs the Indenture Trustee to deposit into the LPO Account on the Payment Date immediately following such Early Exercise Date from funds otherwise distributable to the Issuer pursuant to the priority of payments set forth in Section 302 of the Indenture an amount equal to the lesser of (x) the product of (i) the Advance Rate and (ii) the fixed price purchase option payment paid by the User on the Early Exercise Date and (y) the amount of funds distributable to the Issuer pursuant to Section 302 of the Indenture on such Payment Date.

 

(c)           From time to time, the Issuer may, at its option, elect to deposit additional funds into the LPO Account from amounts otherwise distributable to the Issuer in accordance with the terms of the Indenture or from other sources of funds available to the Issuer.  Any such deposits made pursuant to the terms of this Section 304(c) shall be in addition to funds deposited into the LPO Account pursuant to Section 304(b).  Any funds deposited into the LPO Account by the Issuer pursuant to the provisions of this Section 304(c) shall be released to the Issuer only at the times and in the amounts set forth in Section 304(f).

 

(d)           The Indenture Trustee shall, based on the Manager Report, withdraw amounts from the LPO Account on each Payment Date (on which no Early Amortization Event is continuing) occurring prior to the last exercise date of fixed purchase option set forth in a Multiple LPO Lease (such date, the “Last Exercise Date”) to the extent necessary to pay in full the Minimum Principal Payment Amounts and Scheduled Principal Payment Amounts on the Series 2012-1 Notes, all previously issued Series of Notes and all Additional Series in accordance with the priority set forth in Section 302(d) of the Indenture.  All such amounts withdrawn from the LPO Account will be paid by the Indenture Trustee directly to the Noteholders of the appropriate Series.

 

(e)           On the first Payment Date on which an Early Amortization Event has occurred and is continuing, all amounts then on deposit in the LPO Account shall be paid as an additional principal payment to the Holders of the Series 2012-1 Notes, all previously issued Series of Notes and all Additional Series in accordance with the priority of payments set forth in clauses (11)(A), (12) and (13) of Part II of Section 302(c) of the Indenture.

 

  

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(f)           On the Payment Date immediately following the Last Exercise Date for the LPO Lease with the latest Last Exercise Date, if no Early Amortization Date is then continuing, any remaining funds related to such Multiple LPO Lease then on deposit in the LPO Account will be released to the Issuer.

 

(g)           On and following the date on which no Series 2012-1 Notes are Outstanding, the provisions of this Section 303 shall nevertheless remain in effect until the remaining funds on deposit in the LPO Account have been applied in accordance with paragraphs (d), (e) or (f) of this Section 304.  The provisions of Section 303 of the Indenture shall be applicable to the LPO Account and are hereby incorporated by reference into this Section 304.

 

ARTICLE IV

 

Additional Covenants

 

In addition to the covenants set forth in Article VI of the Indenture, the Issuer hereby makes the following additional covenants for the benefit of the Series 2012-1 Noteholders:

 

Section 401.                      Other Information.  For so long as any of the Series 2012-1 Notes are “restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act and the Issuer is not subject to  Section 13 or 15(d) of the Exchange Act, the Issuer will, and shall cause the Manager to (i) provide or cause to be provided to any Series 2012-1 Noteholder, or to any prospective purchaser thereof designated by such Series 2012-1 Noteholder, upon the request of such Noteholder or prospective Series 2012-1 Noteholder, the information required to be provided to such Holder or prospective purchaser by Rule 144A(d)(4) under the Securities Act; and (ii) update such information to prevent such information from becoming materially false and materially misleading in a manner adverse to any Series 2012-1 Noteholder.

 

Section 402.                      Use of Proceeds.  The proceeds from the issuance of the Series 2012-1 Notes shall be used as follows:  (i) to acquire additional Containers, Sold Assets, and other Collateral (ii) to reduce certain outstanding Indebtedness of the Issuer, (iii) to pay the costs of issuance of the Series 2012-1 Notes and (iv) for other general business purposes.

 

ARTICLE V

 

Conditions to Issuance

 

Section 501.                      Conditions to Issuance.  The Indenture Trustee shall not authenticate the Series 2012-1 Notes unless (i) all conditions to the issuance and purchase of the Series 2012-1 Notes under the Series 2012-1 Note Purchase Agreement shall have been satisfied, and (ii) the Issuer shall have delivered a certificate to the Indenture Trustee to the effect that all conditions set forth in the Series 2012-1 Note Purchase Agreement shall have been satisfied.

 

  

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ARTICLE VI

 

Representations and Warranties

 

To induce the Series 2012-1 Noteholders to purchase the Series 2012-1 Notes hereunder, the Issuer hereby represents and warrants as of the Closing Date to the Indenture Trustee for the benefit of the Series 2012-1 Noteholders that:

 

Section 601.                      Existence.  The Issuer is a limited liability company duly organized and validly existing under the laws of the State of Delaware.  The Issuer is in good standing and is duly qualified to do business in each jurisdiction where the failure to do so would have a material adverse effect upon the financial condition and business of the Issuer, including, without limitation, its ability to collect payments under the Leases.

 

Section 602.                      Authorization.  The Issuer has the power and is duly authorized to execute and deliver the Indenture, this Supplement, and the other Related Documents to which it is a party; the Issuer is and will continue to be duly authorized to borrow monies hereunder and under the Indenture; and the Issuer is and will continue to be authorized to perform its obligations under the Indenture, this Supplement, and the other Related Documents.  The execution, delivery, and performance by the Issuer of the Indenture, this Supplement, and the other Related Documents to which it is a party and the borrowings hereunder do not and will not require any consent or approval of any Governmental Authority, the Manager, or any other Person which has not already been obtained.

 

Section 603.                      No Conflict; Legal Compliance.  The execution, delivery, and performance of the Indenture, this Supplement, and each of the other Related Documents and the execution, delivery, and payment of the Series 2012-1 Notes will not: (a) contravene any provision of the Issuer’s constituent or organizational documents; (b) contravene, conflict with, or violate any Applicable Law or regulation, or any order, writ, judgment, injunction, decree, determination, or award of any Governmental Authority; or (c) violate or result in the breach of, or constitute a default under the Indenture, the other Related Documents, any other indenture or other loan or credit agreement, or other agreement or instrument to which the Issuer is a party or by which the Issuer, or its property and assets may be bound or affected.  The Issuer is not in violation or breach of or default under any law, rule, regulation, order, writ, judgment, injunction, decree, determination, or award or any contract, agreement, lease, license, indenture, or other instrument to which it is a party.

 

Section 604.                      Validity and Binding Effect.  Each of this Supplement and each Series 2012-1 Transaction Document to which the Issuer is a party, when duly executed and delivered, will be the legal, valid and binding obligations of the Issuer, enforceable against the Issuer in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, or other similar laws of general application affecting the enforcement of creditors’ rights or by general principles of equity limiting the availability of equitable remedies.

 

Section 605.                      Financial Statements.  Since December 31, 2011, there has been no Material Adverse Change in the financial condition of any of the Seller, the Manager, or the Issuer.

 

  

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Section 606.                      Place of Business.  The Issuer’s only “place of business” (within the meaning of 9-307 of the UCC) is located at c/o Container Leasing International, LLC, One Maynard Drive, Park Ridge, New Jersey 07656.

 

Section 607.                      No Agreements or Contracts.  The Issuer is not now and has not been a party to any contract or agreement (whether written or oral) other than the Indenture and the Related Documents.

 

Section 608.                      Consents and Approvals.  No approval, authorization, or consent of any trustee or holder of any Indebtedness or obligation of the Issuer or of any other Person under any agreement, contract, lease, or license or similar document or instrument to which the Issuer is a party or by which the Issuer is bound, is required to be obtained by the Issuer in order to make or consummate the transactions contemplated under the Indenture and the Related Documents, except for those approvals, authorizations, and consents that have been obtained on or prior to the Closing Date.  All consents and approvals of, filings and registrations with, and other actions in respect of, all Governmental Authorities required to be obtained by the Issuer in order to make or consummate the transactions contemplated under the Indenture and the Related Documents have been, or prior to the time when required will have been, obtained, given, filed, or taken and are or will be in full force and effect.

 

Section 609.                      Margin Regulations.  The Issuer does not own any “margin security”, as that term is defined in Regulation U of the Federal Reserve Board, and the proceeds of the Series 2012-1 Notes issued under this Supplement will be used only for the purposes contemplated hereunder. None of such proceeds will be used, directly, or indirectly, for the purpose of purchasing or carrying any margin security, for the purpose of reducing or retiring any Indebtedness which was originally incurred to purchase or carry any margin security or for any other purpose which might cause any of the loans under this Supplement to be considered a “purpose credit” within the meaning of Regulations T, U, and X.  The Issuer will not take or permit any agent acting on its behalf to take any action which might cause this Supplement or any document or instrument delivered pursuant hereto to violate any regulation of the Federal Reserve Board.

 

Section 610.                      Taxes.  All federal, state, local, and foreign tax returns, reports, and statements required to be filed by the Issuer have been filed with the appropriate Governmental Authorities, and all taxes and other impositions shown thereon to be due and payable by the Issuer have been paid prior to the date on which any fine, penalty, interest, or late charge may be added thereto for nonpayment thereof, or any such fine, penalty, interest, late charge, or loss has been paid, or the Issuer is contesting its liability therefor in good faith and has fully reserved all such amounts according to GAAP in the financial statements provided pursuant to Section 626 of the Indenture.  The Issuer has paid when due and payable all material charges upon the books of the Issuer and no Governmental Authority has asserted any Lien against the Issuer with respect to unpaid taxes. Proper and accurate amounts have been withheld by the Issuer from its employees for all periods in full and complete compliance with the tax, social security, and unemployment withholding provisions of applicable federal, state, local, and foreign law and such withholdings have been timely paid to the respective Governmental Authorities.

 

  

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Section 611.                      Other Regulations.  The Issuer is not an “investment company,” or an “affiliated person” of, or a “promoter” or “principal underwriter” for, an “investment company,” as such terms are defined in the Investment Company Act of 1940, as amended. The issuance of the Series 2012-1 Notes hereunder and the application of the proceeds and repayment thereof by the Issuer and the performance of the transactions contemplated by the Indenture, this Supplement and the other Related Documents will not violate any provision of the Investment Company Act, or any rule, regulation, or order issued by the Securities and Exchange Commission thereunder.

 

Section 612.                      Solvency and Separateness.

 

(i)           The capital of the Issuer is adequate for the business and undertakings of the Issuer.

 

(ii)           Other than with respect to the transactions contemplated hereby and by the other Related Documents, the Issuer is not engaged in any business transactions with the Manager, except as permitted by the Management Agreement or with the Seller except as permitted under the Contribution and Sale Agreement.

 

(iii)           At all times, at least two (2) members of the Board of Managers of the Issuer comply with the definition of Independent Person.

 

(iv)           The Issuer’s funds and assets are not, and will not be, commingled with those of the Seller or the Manager, except as permitted by the Management Agreement and the Intercreditor Agreement.

 

(v)           The limited liability company agreement of the Issuer requires it to maintain (A) correct and complete books and records of account, and (B) minutes of the meetings and other proceedings of its members.

 

(vi)           The Issuer has not engaged in any business activities, except as permitted by the present and express terms of the Indenture and the Related Documents and Section 2.3 of its limited liability company agreement.

 

(vii)           The Issuer is not insolvent under the Insolvency Law and will not be rendered insolvent by the transactions contemplated by the Related Documents and after giving effect to such transactions, the Issuer will not be left with an unreasonably small amount of capital with which to engage in its business nor will the Issuer have intended to incur, or believe that it has incurred, debts beyond its ability to pay such debts as they mature.  The Issuer does not contemplate the commencement of Insolvency Proceedings or the appointment of a receiver, liquidator, trustee, or similar official in respect of the Issuer or any of its assets.

 

(viii)           The Issuer is not liable for any unbonded or uninsured final non-appealable judgments or liabilities which in aggregate exceed $50,000.

 

  

-22-

  

 

Section 613.                      No Default.  No Event of Default or Early Amortization Event has occurred and is continuing.  No event or condition which with the giving of notice or passage of time (or both) could reasonably be expected to constitute an Event of Default or Early Amortization Event has occurred or is continuing.

 

Section 614.                      Litigation and Contingent Liabilities.  No claims, litigation, arbitration Proceedings, or governmental Proceedings by any Governmental Authority are pending or, to the Issuer’s knowledge, threatened against the Issuer the results of which might interfere with the consummation of any of the transactions contemplated by the Indenture, this Supplement or any document issued or delivered in connection herewith.

 

Section 615.                      Title; Liens.  On the Closing Date, the Issuer will have good, legal, and marketable title to each of its respective assets, and none of such assets is subject to any Lien, except for Permitted Encumbrances.

 

Section 616.                      Subsidiaries.  The Issuer has no Subsidiaries.

 

Section 617.                      No Partnership.  The Issuer is not a partner or joint venturer in any partnership or joint venture.

 

Section 618.                      Pension and Welfare Plans.  The Issuer does not maintain or contribute to, and has never maintained or contributed to, any Plan.  The Issuer does not have any obligation under any collective bargaining agreement.  As of the Closing Date, the Issuer is not an employee benefit plan within the meaning of ERISA or a “plan” within the meaning of section 4975 of the Code and assets of the Issuer do not constitute “plan assets” within the meaning of section 2510.3-101 of the regulations of the United States Department of Labor.

 

Section 619.                      Ownership of the Issuer.  On the Closing Date, all the equity interests in the Issuer are owned by the Seller.

 

Section 620.                      Security Interest Representations.

 

(a)           This Supplement and the Indenture create a valid and continuing security interest (as defined in the UCC) in the Collateral in favor of the Indenture Trustee, for the benefit of the Noteholders and each Interest Rate Hedge Provider, which security interest is prior to all other Liens (subject to Permitted Encumbrances), and is enforceable as such as against creditors of and purchasers from the Issuer.

 

(b)           The Containers constitute “goods” or “inventory” within the meaning of the applicable UCC.  The Leases constitute “tangible chattel paper” within the meaning of the UCC.  The Lease receivables constitute “accounts” or “proceeds” of the Leases within the meaning of the UCC.  The Trust Account, the Restricted Cash Account, the Pre-Funding Account, the Series 2012-1 Series Account, the LPO Account and Manager Transition Account constitute “securities accounts” within the meaning of the UCC.  The Issuer’s contractual rights under any Interest Rate Hedge Agreements, the Contribution and Sale Agreement, and the Management Agreement constitute “general intangibles” within the meaning of the UCC.

 

  

-23-

  

 

(c)           The Issuer owns and has good and marketable title to the Collateral, free and clear of any Lien (whether senior, junior, or pari passu), claim or encumbrance of any Person, except for Permitted Encumbrances.

 

(d)           The Issuer has caused the filing of all appropriate financing statements or documents of similar import in the proper filing office in the appropriate jurisdictions under Applicable Law in order to perfect the security interest in the Collateral granted to the Indenture Trustee in this Supplement and the Indenture.  All financing statements filed against the Issuer in favor of the Indenture Trustee in connection herewith describing the Collateral contain a statement to the following effect: “A purchase of or security interest in any collateral described in this financing statement will violate the rights of the Indenture Trustee.”

 

(e)           Other than the security interest granted to the Indenture Trustee pursuant to this Supplement and the Indenture, the Issuer has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Collateral, except as permitted pursuant to the Indenture.  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 or document of similar import (i) relating to the security interest granted to the Indenture Trustee in this Supplement or the Indenture or (ii) that has been terminated.  The Issuer has no actual knowledge of any judgment or tax lien filings against the Issuer.

 

(f)           The Issuer has received a written acknowledgment from the Manager that the Manager is holding the Leases on behalf of, and for the benefit of, the Indenture Trustee. None of the Leases that constitute or evidence the Collateral have any marks or notations indicating that they have been pledged, assigned, or otherwise conveyed to any Person other than the Indenture Trustee.  The Seller has caused the filing of all appropriate financing statements or documents of similar import in the proper filing office in the appropriate jurisdictions under Applicable Law in order to perfect the security interest of the Issuer (and the Indenture Trustee as its assignee) in the Leases (to the extent that such Leases are related to the Containers) granted to the Issuer in the Contribution and Sale Agreement.

 

(g)           The Issuer has received all necessary consents and approvals required by the terms of the Collateral to the pledge to the Indenture Trustee of its interest and rights in such Collateral hereunder or under the Indenture.

 

(h)           The Issuer has taken all steps necessary to cause U.S. Bank National Association (in its capacity as securities intermediary) to identify in its records the Indenture Trustee as the Person having a Security Entitlement in each of the Trust Account, the Restricted Cash Account, the Pre-Funding Account, the Series 2012-1 Series Account, and the Manager Transition Account.

 

(i)           The Trust Account, the Restricted Cash Account, the Pre-Funding Account, Series 2012-1 Series Account, the LPO Account and the Manager Transition Account are not in the name of any Person other than the Indenture Trustee.  The Issuer has not given its consent to U.S. Bank National Association (as the securities intermediary of the Trust Account, the Restricted Cash Account, the Pre-Funding Account, the Series 2012-1 Series Account, and the Manager Transition Account) to comply with entitlement orders of any Person other than the Indenture Trustee.  The Manager Collection Account is subject to a control agreement which has perfected the security interest of the Collateral Agent therein on Gross Revenues for the benefit of the Indenture Trustee as the named party thereunder.

 

  

-24-

  

 

(j)           No creditor of the Issuer (other than the Manager in its capacity as Manager under the Management Agreement) has in its possession any goods that constitute or evidence the Collateral.

 

The representations and warranties set forth in this Section 620 shall survive until this Supplement is terminated in accordance with its terms and the terms of the Indenture.  Any breaches of the representations and warranties set forth in this Section 620 may be waived by the Indenture Trustee, only with the prior written consent of the Control Party and with prior written notice to the Rating Agency.

 

Section 621.                      Survival of Representations and Warranties.  So long as any of the Series 2012-1 Notes shall be Outstanding and until payment and performance in full of the aggregate Outstanding Obligations, the representations and warranties contained herein shall have a continuing effect as having been true when made.

 

Section 622.                      ERISA Lien.  As of the Closing Date, the Issuer has not received notice that any Lien arising under ERISA has been filed against the assets of the Issuer.

 

ARTICLE VII

 

Miscellaneous Provisions

 

Section 701.                      Ratification of Indenture.  As supplemented by this Supplement, the Indenture is in all respects ratified and confirmed and the Indenture as so supplemented by this Supplement shall be read, taken, and construed as one and the same instrument.

 

Section 702.                      Counterparts.  This Supplement may be executed in two or more counterparts, and by different parties on separate counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument.  Delivery of an executed counterpart of this Supplement by facsimile or by electronic means shall be equally effective as of the delivery of an originally executed counterpart.

 

Section 703.                      Governing Law.  THIS SUPPLEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAWS BUT OTHERWISE WITHOUT REFERENCE TO ITS CONFLICTS OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

Section 704.                      Notices to Rating Agency.  Whenever any notice or other communication is required to be given to the Rating Agency pursuant to the Indenture or this Supplement, such notice or communication shall be delivered Standard & Poor’s Ratings Services, 55 Water Street, 41st Floor, New York, New York 10041, Attention:  Asset-Backed Surveillance Group - phone: (212-438-2435), fax: (212-438-2664).  Any rights to notices conveyed to the Rating Agency pursuant to the terms of this Supplement shall terminate immediately if the Rating Agency no longer has a rating outstanding with respect to the Series 2012-1 Notes.

 

  

-25-

  

 

Section 705.                      Statutory References.  References in this Supplement and any other Series 2012-1 Transaction Document to any section of the Uniform Commercial Code or the UCC shall mean, on or after the effective date of adoption of any revision to the Uniform Commercial Code or the UCC in the applicable jurisdiction, such revised or successor section thereto.

 

Section 706.                      Amendments and Modifications.  The terms of the Supplement may be waived, modified, or amended only in a written instrument signed by each of the Issuer, the Control Party, and the Indenture Trustee and, with respect to the matters set forth in (and subject to the terms of) Section 1002(a) of the Indenture, only with the prior written consent of the Requisite Global Majority or, with respect to the matters set forth in Section 1002(b) of the Indenture, the prior written consent of the Holders of all Series 2012-1 Notes then Outstanding affected thereby.

 

Section 707.                      Consent to Jurisdiction.  ANY LEGAL SUIT, ACTION, OR PROCEEDING AGAINST THE ISSUER ARISING OUT OF OR RELATING TO THIS SUPPLEMENT, OR ANY TRANSACTION CONTEMPLATED HEREBY, MAY BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE COUNTY OF NEW YORK, STATE OF NEW YORK AND THE ISSUER HEREBY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION, OR PROCEEDING, AND, SOLELY FOR THE PURPOSES OF ENFORCING THIS SUPPLEMENT, THE ISSUER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING.  THE ISSUER HEREBY IRREVOCABLY APPOINTS AND DESIGNATES CORPORATION SERVICE COMPANY, HAVING AN ADDRESS AT 1133 AVENUE OF THE AMERICAS, SUITE 3100, NEW YORK, NY 10036-6710, ITS TRUE AND LAWFUL ATTORNEY-IN-FACT AND DULY AUTHORIZED AGENT FOR THE LIMITED PURPOSE OF ACCEPTING SERVICING OF LEGAL PROCESS AND THE ISSUER AGREES THAT SERVICE OF PROCESS UPON SUCH PARTY SHALL CONSTITUTE PERSONAL SERVICE OF SUCH PROCESS ON SUCH PERSON.  THE ISSUER SHALL MAINTAIN THE DESIGNATION AND APPOINTMENT OF SUCH AUTHORIZED AGENT UNTIL ALL AMOUNTS PAYABLE UNDER THIS SUPPLEMENT SHALL HAVE BEEN PAID IN FULL.  IF SUCH AGENT SHALL CEASE TO SO ACT, THE ISSUER SHALL IMMEDIATELY DESIGNATE AND APPOINT ANOTHER SUCH AGENT SATISFACTORY TO THE INDENTURE TRUSTEE AND SHALL PROMPTLY DELIVER TO THE INDENTURE TRUSTEE EVIDENCE IN WRITING OF SUCH OTHER AGENT’S ACCEPTANCE OF SUCH APPOINTMENT.

 

  

-26-

  

 

Section 708.                      Waiver of Jury Trial.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, AS AGAINST THE OTHER PARTIES HERETO, ANY RIGHTS IT MAY HAVE TO A JURY TRIAL IN RESPECT OF ANY CIVIL ACTION OR PROCEEDING (WHETHER ARISING IN CONTRACT OR TORT OR OTHERWISE), INCLUDING ANY COUNTERCLAIM, ARISING UNDER OR RELATING TO THIS AGREEMENT OR ANY OTHER OPERATIVE DOCUMENT, INCLUDING IN RESPECT OF THE NEGOTIATION, ADMINISTRATION, OR ENFORCEMENT HEREOF OR THEREOF.

 

[Signature pages follow]

 

  

-27-

  

 

IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused this Supplement to be duly executed and delivered by their respective officers all as of the day and year first above written.

 

	  	
CLI FUNDING V LLC

	 	 
	  	
By:

	

/s/  David F. Doorley

	  	  	
Name:  David F. Doorley

	  	  	
Title:    Treasurer

 

  

Series 2012-1 Supplement

  

 

	  	
U.S. BANK NATIONAL ASSOCIATION, as Indenture Trustee

	 	 
	  	
By:

	

/s/  Bryan J. Hill

	  	  	
Name:  Bryan J. Hill

	  	  	
Title:    Vice President

 

  

Series 2012-1 Supplement

  

 

EXHIBIT A-1

 

FORM OF 144A GLOBAL NOTES

 

 UNLESS THIS SERIES 2012-1 NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRANSFEROR OF SUCH NOTE (THE “TRANSFEROR”) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SERIES 2012-1 NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR THE 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.

 

THIS SERIES 2012-1 NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).  THE HOLDER HEREOF, BY PURCHASING THIS SERIES 2012-1 NOTE, AGREES THAT SUCH SERIES 2012-1 NOTE MAY BE RESOLD, PLEDGED OR TRANSFERRED ONLY IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS AND (1) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT, TO A PERSON THAT THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT (OR FOR THE ACCOUNT OR ACCOUNTS OF A QUALIFIED INSTITUTIONAL BUYER) AND TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (2) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT OR (3) TO A PERSON THAT IS AN INSTITUTIONAL “ACCREDITED INVESTOR,” WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT, IS TAKING DELIVERY OF SUCH SERIES 2012-1 NOTE IN AN AMOUNT OF AT LEAST $100,000 AND DELIVERS A PURCHASER LETTER TO THE INDENTURE TRUSTEE IN THE FORM ATTACHED TO THE SUPPLEMENTS.

 

EACH PURCHASER OF A SERIES 2012-1 NOTE SHALL REPRESENT OR BE DEEMED TO REPRESENT AND WARRANT TO THE INITIAL PURCHASERS, THE ISSUER, THE INDENTURE TRUSTEE AND THE MANAGER THAT (A) EITHER (1) IT IS NOT, AND IS NOT ACTING ON BEHALF OF, A PLAN OR A GOVERNMENTAL, CHURCH OR NON-U.S. PLAN WHICH IS SUBJECT TO ANY FEDERAL, STATE, LOCAL OR NON-U.S. LAW THAT IS SIMILAR TO THE PROHIBITED TRANSACTION PROVISIONS OF SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND NO PART OF THE ASSETS TO BE USED BY IT TO PURCHASE OR HOLD THE SERIES 2012-1 NOTES OR ANY INTEREST THEREIN CONSTITUTES THE ASSETS OF ANY PLAN OR SUCH A GOVERNMENTAL, CHURCH OR NON-U.S. PLAN; OR (2) (A) THE ACQUISITION, HOLDING AND DISPOSITION OF THE SERIES 2012-1 NOTE WILL NOT GIVE RISE TO A NONEXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE (OR, IN THE CASE OF A GOVERNMENTAL, CHURCH OR NON-U.S. PLAN, A VIOLATION OF ANY SIMILAR FEDERAL, STATE, LOCAL OR NON-U.S. LAW) AND (B) THE SERIES 2012-1 NOTES ARE RATED INVESTMENT GRADE OR BETTER AND SUCH PERSON BELIEVES THAT THE SERIES 2012-1 NOTES ARE PROPERLY TREATED AS INDEBTEDNESS WITHOUT SUBSTANTIAL EQUITY FEATURES FOR PURPOSES OF SECTION 2510.3-101 OF THE REGULATIONS ISSUED BY THE U.S. DEPARTMENT OF LABOR, AND AGREES TO SO TREAT THE SERIES 2012-1 NOTES; AND (b) IT WILL NOT SELL OR OTHERWISE TRANSFER THE SERIES 2012-1 NOTES OR ANY INTEREST THEREIN OTHERWISE THAN TO A PURCHASER OR TRANSFEREE THAT REPRESENTS AND AGREES WITH RESPECT TO ITS PURCHASE, HOLDING AND DISPOSITION OF THE SERIES 2012-1 NOTES TO THE SAME EFFECT AS THE PURCHASER’S REPRESENTATION AND AGREEMENT SET FORTH IN THIS SENTENCE.

 

  

A-1-1

  

 

THIS SERIES 2012-1 NOTE IS NOT GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

 

	
CLI FUNDING V LLC FIXED RATE ASSET BACKED NOTE, SERIES 2012-1

	 
	
$225,000,000

	  	
CUSIP No.: 125634 AE5

	  	  	
No. 1

	  	  	
June 21, 2012

 

KNOW ALL PERSONS BY THESE PRESENTS that CLI FUNDING V LLC, a limited liability company organized and existing under the laws of the State of Delaware (the “Issuer”), for value received, hereby promises to pay to Cede & Co., or registered assigns, at the principal corporate trust office of the Indenture Trustee named below, (i) the principal sum of up to Two Hundred Twenty-Five Million Dollars ($225,000,000), which sum shall be payable on the dates and in the amounts set forth in the Indenture, dated as of March 18, 2011 (as amended, restated, or otherwise modified from time to time, the “Indenture”) and the Series 2012-1 Supplement, dated as of June 21, 2012 (as amended, restated, or otherwise modified from time to time, the “Series 2012-1 Supplement”), each between the Issuer and U.S. Bank National Association as indenture trustee (the “Indenture Trustee”), and (ii) interest on the outstanding principal amount of this Note on the dates and in the amounts set forth in the Indenture and the Series 2012-1 Supplement.  Capitalized terms not otherwise defined herein will have the meaning set forth in the Indenture and the Series 2012-1 Supplement.

 

Payment of the principal of and interest on this Note shall be made in lawful money of the United States of America which at the time of payment is legal tender for payment of public and private debts. The principal balance of, and interest on this Note is payable at the times and in the amounts set forth in the Indenture and the Series 2012-1 Supplement by wire transfer of immediately available funds to the account designated by the Holder of record on the immediately preceding Record Date.

 

  

A-1-2

  

 

This Note is one of the authorized notes identified in the title hereto and issued in the aggregate principal amount of up to Two Hundred Twenty-Five Million Dollars ($225,000,000) pursuant to the Indenture and the Series 2012-1 Supplement.

 

The Notes shall be an obligation of the Issuer and shall be secured by the Collateral, all as defined in, and subject to limitations set forth in, the Indenture and the Series 2012-1 Supplement.

 

This Note is transferable as provided in the Indenture and the Series 2012-1 Supplement, subject to certain limitations therein contained, only upon the books for registration and transfer kept by the Indenture Trustee, and only upon surrender of this Note for transfer to the Indenture Trustee duly endorsed by, or accompanied by a written instrument of transfer in form reasonably satisfactory to the Indenture Trustee duly executed by, the registered Holder hereof or his attorney duly authorized in writing. The Indenture Trustee or the Issuer may require payment by the Holder of a sum sufficient to cover any tax expense or other governmental charge payable in connection with any transfer or exchange of the Notes.

 

The Issuer, the Indenture Trustee, and any other agent of the Issuer may treat the person in whose name this Note is registered as the absolute owner hereof for all purposes, and neither the Issuer, the Indenture Trustee, nor any other such agent shall be affected by notice to the contrary.

 

The Notes are subject to Prepayment, at the times and subject to the conditions set forth in the Indenture and the Series 2012-1 Supplement.

 

If an Event of Default shall occur and be continuing, the principal of and accrued interest on this Note may be declared to be due and payable in the manner and with the effect provided in the Indenture and the Series 2012-1 Supplement.

 

The Indenture permits, with certain exceptions as therein provided, the issuance of supplemental indentures with the consent of the Requisite Global Majority, in certain specifically described instances. Any consent given by the Requisite Global Majority shall be conclusive and binding upon the Holder of this Note and on all future holders of this Note and of any Note issued in lieu hereof whether or not notation of such consent is made upon this Note. Supplements and amendments to the Indenture and the Series 2012-1 Supplement may be made only to the extent and in circumstances permitted by the Indenture and the Series 2012-1 Supplement.

 

The Holder of this Note shall have no right to enforce the provisions of the Indenture and the Series 2012-1 Supplement or to institute action to enforce the covenants, or to take any action with respect to a default under the Indenture and the Series 2012-1 Supplement, or to institute, appear in, or defend any suit or other proceedings with respect thereto, except as provided under certain circumstances described in the Indenture and the Series 2012-1 Supplement; provided, however, that nothing contained in the Indenture and the Series 2012-1 Supplement shall affect or impair any right of enforcement conferred on the Holder hereof to enforce any payment of the principal of and interest on this Note on or after the due date thereof; provided further, however, that by acceptance hereof the Holder is deemed to have covenanted and agreed that it will not institute against the Issuer any bankruptcy, reorganization, arrangement, insolvency, or liquidation proceedings, or other proceedings under any applicable bankruptcy or similar law, at any time other than at such time as permitted by Section 1311 of the Indenture and the Series 2012-1 Supplement.

 

  

A-1-3

  

 

Each purchaser of a Note shall be deemed to represent and warrant to the Initial Purchasers, the Issuer, the Indenture Trustee, and the Manager that (a) either (1) it is not, and is not acting on behalf of, a Plan or a governmental, church, or non-U.S. plan which is subject to any federal, state, local, or non-U.S. law that is similar to the prohibited transaction provisions of Section 406 of ERISA or Section 4975 of the Code, and no part of the assets to be used by it to purchase or hold the Series 2012-1 Notes or any interest therein constitutes the assets of any Plan or such a governmental, church, or non-U.S. plan; or (2) (A) the acquisition, holding, and disposition of the Series 2012-1 Note will not give rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code (or, in the case of a governmental, church, or non-U.S. plan, a violation of any similar federal, state, local, or non-U.S. law) and (B) the Notes are rated investment grade or better and such person believes that the Series 2012-1 Notes are properly treated as indebtedness without substantial equity features for purposes of Section 2510.3-101 of the regulations issued by the U.S. Department of Labor, and agrees to so treat the Series 2012-1 Notes; and (b) it will not sell or otherwise transfer the Series 2012-1 Notes or any interest therein otherwise than to a purchaser or transferee that represents and agrees with respect to its purchase, holding, and disposition of the Series 2012-1 Notes to the same effect as the purchaser's representation and agreement set forth in this sentence.

 

This Note, and the rights and obligations of the parties hereunder, shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York without giving effect to principles of conflict of laws.

 

All terms and provisions of the Indenture and the Series 2012-1 Supplement are herein incorporated by reference as if set forth herein in their entirety.

 

IT IS HEREBY CERTIFIED, RECITED, AND DECLARED, that all acts, conditions, and things required to exist, happen, and be performed precedent to the execution and delivery of the Indenture and the Series 2012-1 Supplement and the issuance of this Note and the issue of which it is a part, do exist, have happened and have been timely performed in regular form and manner as required by law.

 

Unless the certificate of authentication hereon has been executed by the Indenture Trustee by manual signature of one of its authorized officers, this Note shall not be entitled to any benefit under the Indenture and the Series 2012-1 Supplement, or be valid or obligatory for any purpose.

 

  

A-1-4

  

 

IN WITNESS WHEREOF, CLI Funding V LLC has caused this Note to be duly executed by its duly authorized representative, on this __ day of June 2012.

 

	  	
CLI FUNDING V LLC

	 	 
	  	
By:

	  
	  	  	
Name:

	  	  	
Title:

 

This Note is one of the Notes described in the within-mentioned Indenture and the Series 2012-1 Supplement.

 

	  	
U.S. Bank National Association, as Indenture Trustee

	 	 
	  	
By:

	  
	  	  	
Name:

	  	  	
Title:

 

  

A-1-5

  

 

EXHIBIT A-2

 

FORM OF REGULATION S TEMPORARY GLOBAL NOTE

 

UNLESS THIS SERIES 2012-1 NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRANSFEROR OF SUCH NOTE (THE “TRANSFEROR”) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SERIES 2012-1 NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR THE 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.

 

THIS SERIES 2012-1 NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).  THE HOLDER HEREOF, BY PURCHASING THIS SERIES 2012-1 NOTE, AGREES THAT SUCH SERIES 2012-1 NOTE MAY BE RESOLD, PLEDGED OR TRANSFERRED ONLY IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS AND (1) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT, TO A PERSON THAT THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT (OR FOR THE ACCOUNT OR ACCOUNTS OF A QUALIFIED INSTITUTIONAL BUYER) AND TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (2) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT OR (3) TO A PERSON THAT IS AN INSTITUTIONAL “ACCREDITED INVESTOR,” WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT, IS TAKING DELIVERY OF SUCH SERIES 2012-1 NOTE IN AN AMOUNT OF AT LEAST $100,000 AND DELIVERS A PURCHASER LETTER TO THE INDENTURE TRUSTEE IN THE FORM ATTACHED TO THE SUPPLEMENTS.

 

EACH PURCHASER OF A SERIES 2012-1 NOTE SHALL REPRESENT OR BE DEEMED TO REPRESENT AND WARRANT TO THE INITIAL PURCHASERS, THE ISSUER, THE INDENTURE TRUSTEE AND THE MANAGER THAT (A) EITHER (1) IT IS NOT, AND IS NOT ACTING ON BEHALF OF, A PLAN OR A GOVERNMENTAL, CHURCH OR NON-U.S. PLAN WHICH IS SUBJECT TO ANY FEDERAL, STATE, LOCAL OR NON-U.S. LAW THAT IS SIMILAR TO THE PROHIBITED TRANSACTION PROVISIONS OF SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND NO PART OF THE ASSETS TO BE USED BY IT TO PURCHASE OR HOLD THE SERIES 2012-1 NOTES OR ANY INTEREST THEREIN CONSTITUTES THE ASSETS OF ANY PLAN OR SUCH A GOVERNMENTAL, CHURCH OR NON-U.S. PLAN; OR (2) (A) THE ACQUISITION, HOLDING AND DISPOSITION OF THE SERIES 2012-1 NOTE WILL NOT GIVE RISE TO A NONEXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE (OR, IN THE CASE OF A GOVERNMENTAL, CHURCH OR NON-U.S. PLAN, A VIOLATION OF ANY SIMILAR FEDERAL, STATE, LOCAL OR NON-U.S. LAW) AND (B) THE SERIES 2012-1 NOTES ARE RATED INVESTMENT GRADE OR BETTER AND SUCH PERSON BELIEVES THAT THE SERIES 2012-1 NOTES ARE PROPERLY TREATED AS INDEBTEDNESS WITHOUT SUBSTANTIAL EQUITY FEATURES FOR PURPOSES OF SECTION 2510.3-101 OF THE REGULATIONS ISSUED BY THE U.S. DEPARTMENT OF LABOR, AND AGREES TO SO TREAT THE SERIES 2012-1 NOTES; AND (b) IT WILL NOT SELL OR OTHERWISE TRANSFER THE SERIES 2012-1 NOTES OR ANY INTEREST THEREIN OTHERWISE THAN TO A PURCHASER OR TRANSFEREE THAT REPRESENTS AND AGREES WITH RESPECT TO ITS PURCHASE, HOLDING AND DISPOSITION OF THE SERIES 2012-1 NOTES TO THE SAME EFFECT AS THE PURCHASER’S REPRESENTATION AND AGREEMENT SET FORTH IN THIS SENTENCE.

 

  

A-2-1

  

 

THIS NOTE IS NOT GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

 

THIS SERIES 2012-1 NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND, PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF (I) THE COMPLETION OF THE DISTRIBUTION OF THE SERIES 2012-1 NOTES AND (II) THE SERIES 2012-1 CLOSING DATE, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE PROCEDURES SPECIFIED IN THE INDENTURE.

 

	
CLI FUNDING V LLC FIXED RATE ASSET BACKED NOTE, SERIES 2012-1

	
$225,000,000

	  	
CUSIP No.: U18659 AC3

	  	  	
No. 1

	  	  	
June 21, 2012

 

 

KNOW ALL PERSONS BY THESE PRESENTS that CLI FUNDING V LLC, a limited liability company organized and existing under the laws of the State of Delaware (the “Issuer”), for value received, hereby promises to pay to Cede & Co., or registered assigns, at the principal corporate trust office of the Indenture Trustee named below, (i) the principal sum of up to Two Hundred Twenty-Five Million Dollars ($225,000,000), which sum shall be payable on the dates and in the amounts set forth in the Indenture, dated as of March 18, 2011 (as amended, restated, or otherwise modified from time to time, the “Indenture”) and the Series 2012-1 Supplement, dated as of June 21, 2012 (as amended, restated, or otherwise modified from time to time, the “Series 2012-1 Supplement”), each between the Issuer and U.S. Bank National Association as indenture trustee (the “Indenture Trustee”), and (ii) interest on the outstanding principal amount of this Note on the dates and in the amounts set forth in the Indenture and the Series 2012-1 Supplement.  Capitalized terms not otherwise defined herein will have the meaning set forth in the Indenture and the Series 2012-1 Supplement.

 

  

A-2-2

  

 

Payment of the principal of and interest on this Note shall be made in lawful money of the United States of America which at the time of payment is legal tender for payment of public and private debts. The principal balance of, and interest on this Note is payable at the times and in the amounts set forth in the Indenture and the Series 2012-1 Supplement by wire transfer of immediately available funds to the account designated by the Holder of record on the immediately preceding Record Date.

 

This Note is one of the authorized notes identified in the title hereto and issued in the aggregate principal amount of up to Two Hundred Twenty-Five Million Dollars ($225,000,000) pursuant to the Indenture and the Series 2012-1 Supplement.

 

The Notes shall be an obligation of the Issuer and shall be secured by the Collateral, all as defined in, and subject to limitations set forth in, the Indenture and the Series 2012-1 Supplement.

 

This Note is transferable as provided in the Indenture and the Series 2012-1 Supplement, subject to certain limitations therein contained, only upon the books for registration and transfer kept by the Indenture Trustee, and only upon surrender of this Note for transfer to the Indenture Trustee duly endorsed by, or accompanied by a written instrument of transfer in form reasonably satisfactory to the Indenture Trustee duly executed by, the registered Holder hereof or his attorney duly authorized in writing. The Indenture Trustee or the Issuer may require payment by the Holder of a sum sufficient to cover any tax expense or other governmental charge payable in connection with any transfer or exchange of the Notes.

 

The Issuer, the Indenture Trustee, and any other agent of the Issuer may treat the person in whose name this Note is registered as the absolute owner hereof for all purposes, and neither the Issuer, the Indenture Trustee, nor any other such agent shall be affected by notice to the contrary.

 

The Notes are subject to Prepayment, at the times and subject to the conditions set forth in the Indenture and the Series 2012-1 Supplement.

 

If an Event of Default shall occur and be continuing, the principal of and accrued interest on this Note may be declared to be due and payable in the manner and with the effect provided in the Indenture and the Series 2012-1 Supplement.

 

The Indenture permits, with certain exceptions as therein provided, the issuance of supplemental indentures with the consent of the Requisite Global Majority, in certain specifically described instances. Any consent given by the Requisite Global Majority shall be conclusive and binding upon the Holder of this Note and on all future holders of this Note and of any Note issued in lieu hereof whether or not notation of such consent is made upon this Note. Supplements and amendments to the Indenture and the Series 2012-1 Supplement may be made only to the extent and in circumstances permitted by the Indenture and the Series 2012-1 Supplement.

 

  

A-2-3

  

 

The Holder of this Note shall have no right to enforce the provisions of the Indenture and the Series 2012-1 Supplement or to institute action to enforce the covenants, or to take any action with respect to a default under the Indenture and the Series 2012-1 Supplement, or to institute, appear in, or defend any suit or other proceedings with respect thereto, except as provided under certain circumstances described in the Indenture and the Series 2012-1 Supplement; provided, however, that nothing contained in the Indenture and the Series 2012-1 Supplement shall affect or impair any right of enforcement conferred on the Holder hereof to enforce any payment of the principal of and interest on this Note on or after the due date thereof; provided further, however, that by acceptance hereof the Holder is deemed to have covenanted and agreed that it will not institute against the Issuer any bankruptcy, reorganization, arrangement, insolvency, or liquidation proceedings, or other proceedings under any applicable bankruptcy or similar law, at any time other than at such time as permitted by Section 1311 of the Indenture and the Series 2012-1 Supplement.

 

Each purchaser of a Note shall be deemed to represent and warrant to the Initial Purchasers, the Issuer, the Indenture Trustee, and the Manager that (a) either (1) it is not, and is not acting on behalf of, a Plan or a governmental, church, or non-U.S. plan which is subject to any federal, state, local, or non-U.S. law that is similar to the prohibited transaction provisions of Section 406 of ERISA or Section 4975 of the Code, and no part of the assets to be used by it to purchase or hold the Series 2012-1 Notes or any interest therein constitutes the assets of any Plan or such a governmental, church, or non-U.S. plan; or (2) (A) the acquisition, holding, and disposition of the Series 2012-1 Note will not give rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code (or, in the case of a governmental, church, or non-U.S. plan, a violation of any similar federal, state, local, or non-U.S. law) and (B) the Notes are rated investment grade or better and such person believes that the Series 2012-1 Notes are properly treated as indebtedness without substantial equity features for purposes of Section 2510.3-101 of the regulations issued by the U.S. Department of Labor, and agrees to so treat the Series 2012-1 Notes; and (b) it will not sell or otherwise transfer the Series 2012-1 Notes or any interest therein otherwise than to a purchaser or transferee that represents and agrees with respect to its purchase, holding, and disposition of the Series 2012-1 Notes to the same effect as the purchaser's representation and agreement set forth in this sentence.

 

This Note, and the rights and obligations of the parties hereunder, shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York without giving effect to principles of conflict of laws.

 

All terms and provisions of the Indenture and the Series 2012-1 Supplement are herein incorporated by reference as if set forth herein in their entirety.

 

IT IS HEREBY CERTIFIED, RECITED, AND DECLARED, that all acts, conditions, and things required to exist, happen, and be performed precedent to the execution and delivery of the Indenture and the Series 2012-1 Supplement and the issuance of this Note and the issue of which it is a part, do exist, have happened and have been timely performed in regular form and manner as required by law.

 

  

A-2-4

  

 

Unless the certificate of authentication hereon has been executed by the Indenture Trustee by manual signature of one of its authorized officers, this Note shall not be entitled to any benefit under the Indenture and the Series 2012-1 Supplement, or be valid or obligatory for any purpose.

 

  

A-2-5

  

 

IN WITNESS WHEREOF, CLI Funding V LLC has caused this Note to be duly executed by its duly authorized representative, on this __ day of June 2012.

 

	  	
CLI FUNDING V LLC

	 	 
	  	
By:

	  
	  	  	
Name:

	  	  	
Title:

 

This Note is one of the Notes described in the within-mentioned Indenture and the Series 2012-1 Supplement.

 

	  	
U.S. BANK NATIONAL ASSOCIATION, as Indenture Trustee

	 	 
	  	
By:

	  
	  	  	
Name:

	  	  	
Title:

 

  

A-2-6

  

 

EXHIBIT A-3

 

FORM OF PERMANENT REGULATION S GLOBAL NOTE

 

UNLESS THIS SERIES 2012-1 NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRANSFEROR OF SUCH NOTE (THE “TRANSFEROR”) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SERIES 2012-1 NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR THE 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.

 

THIS SERIES 2012-1 NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).  THE HOLDER HEREOF, BY PURCHASING THIS SERIES 2012-1 NOTE, AGREES THAT SUCH SERIES 2012-1 NOTE MAY BE RESOLD, PLEDGED OR TRANSFERRED ONLY IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS AND (1) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT, TO A PERSON THAT THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT (OR FOR THE ACCOUNT OR ACCOUNTS OF A QUALIFIED INSTITUTIONAL BUYER) AND TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (2) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT OR (3) TO A PERSON THAT IS AN INSTITUTIONAL “ACCREDITED INVESTOR,” WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT, IS TAKING DELIVERY OF SUCH SERIES 2012-1 NOTE IN AN AMOUNT OF AT LEAST $100,000 AND DELIVERS A PURCHASER LETTER TO THE INDENTURE TRUSTEE IN THE FORM ATTACHED TO THE SUPPLEMENTS.

 

EACH PURCHASER OF A SERIES 2012-1 NOTE SHALL REPRESENT OR BE DEEMED TO REPRESENT AND WARRANT TO THE INITIAL PURCHASERS, THE ISSUER, THE INDENTURE TRUSTEE AND THE MANAGER THAT (A) EITHER (1) IT IS NOT, AND IS NOT ACTING ON BEHALF OF, A PLAN OR A GOVERNMENTAL, CHURCH OR NON-U.S. PLAN WHICH IS SUBJECT TO ANY FEDERAL, STATE, LOCAL OR NON-U.S. LAW THAT IS SIMILAR TO THE PROHIBITED TRANSACTION PROVISIONS OF SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND NO PART OF THE ASSETS TO BE USED BY IT TO PURCHASE OR HOLD THE SERIES 2012-1 NOTES OR ANY INTEREST THEREIN CONSTITUTES THE ASSETS OF ANY PLAN OR SUCH A GOVERNMENTAL, CHURCH OR NON-U.S. PLAN; OR (2) (A) THE ACQUISITION, HOLDING AND DISPOSITION OF THE SERIES 2012-1 NOTE WILL NOT GIVE RISE TO A NONEXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE (OR, IN THE CASE OF A GOVERNMENTAL, CHURCH OR NON-U.S. PLAN, A VIOLATION OF ANY SIMILAR FEDERAL, STATE, LOCAL OR NON-U.S. LAW) AND (B) THE SERIES 2012-1 NOTES ARE RATED INVESTMENT GRADE OR BETTER AND SUCH PERSON BELIEVES THAT THE SERIES 2012-1 NOTES ARE PROPERLY TREATED AS INDEBTEDNESS WITHOUT SUBSTANTIAL EQUITY FEATURES FOR PURPOSES OF SECTION 2510.3-101 OF THE REGULATIONS ISSUED BY THE U.S. DEPARTMENT OF LABOR, AND AGREES TO SO TREAT THE SERIES 2012-1 NOTES; AND (b) IT WILL NOT SELL OR OTHERWISE TRANSFER THE SERIES 2012-1 NOTES OR ANY INTEREST THEREIN OTHERWISE THAN TO A PURCHASER OR TRANSFEREE THAT REPRESENTS AND AGREES WITH RESPECT TO ITS PURCHASE, HOLDING AND DISPOSITION OF THE SERIES 2012-1 NOTES TO THE SAME EFFECT AS THE PURCHASER’S REPRESENTATION AND AGREEMENT SET FORTH IN THIS SENTENCE.

 

  

A-3-1

  

 

THIS SERIES 2012-1 NOTE IS NOT GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

 

	
CLI FUNDING V LLC FIXED RATE ASSET BACKED NOTE, SERIES 2012-1

	
$225,000,000

	  	
CUSIP No.: U18659 AC3

	  	  	
No. 1

	  	  	
June 21, 2012

 

KNOW ALL PERSONS BY THESE PRESENTS that CLI FUNDING V LLC, a limited liability company organized and existing under the laws of the State of Delaware (the “Issuer”), for value received, hereby promises to pay to Cede & Co., or registered assigns, at the principal corporate trust office of the Indenture Trustee named below, (i) the principal sum of up to Two Hundred Twenty-Five Million Dollars ($225,000,000), which sum shall be payable on the dates and in the amounts set forth in the Indenture, dated as of March 18, 2011 (as amended, restated, or otherwise modified from time to time, the “Indenture”) and the Series 2012-1 Supplement, dated as of June 21, 2012 (as amended, restated, or otherwise modified from time to time, the “Series 2012-1 Supplement”), each between the Issuer and U.S. Bank National Association as indenture trustee (the “Indenture Trustee”), and (ii) interest on the outstanding principal amount of this Note on the dates and in the amounts set forth in the Indenture and the Series 2012-1 Supplement.  Capitalized terms not otherwise defined herein will have the meaning set forth in the Indenture and the Series 2012-1 Supplement.

 

Payment of the principal of and interest on this Note shall be made in lawful money of the United States of America which at the time of payment is legal tender for payment of public and private debts. The principal balance of, and interest on this Note is payable at the times and in the amounts set forth in the Indenture and the Series 2012-1 Supplement by wire transfer of immediately available funds to the account designated by the Holder of record on the immediately preceding Record Date.

 

  

A-3-2

  

 

This Note is one of the authorized notes identified in the title hereto and issued in the aggregate principal amount of up to Two Hundred Twenty-Five Million Dollars ($225,000,000) pursuant to the Indenture and the Series 2012-1 Supplement.

 

The Notes shall be an obligation of the Issuer and shall be secured by the Collateral, all as defined in, and subject to limitations set forth in, the Indenture and the Series 2012-1 Supplement.

 

This Note is transferable as provided in the Indenture and the Series 2012-1 Supplement, subject to certain limitations therein contained, only upon the books for registration and transfer kept by the Indenture Trustee, and only upon surrender of this Note for transfer to the Indenture Trustee duly endorsed by, or accompanied by a written instrument of transfer in form reasonably satisfactory to the Indenture Trustee duly executed by, the registered Holder hereof or his attorney duly authorized in writing. The Indenture Trustee or the Issuer may require payment by the Holder of a sum sufficient to cover any tax expense or other governmental charge payable in connection with any transfer or exchange of the Notes.

 

The Issuer, the Indenture Trustee, and any other agent of the Issuer may treat the person in whose name this Note is registered as the absolute owner hereof for all purposes, and neither the Issuer, the Indenture Trustee, nor any other such agent shall be affected by notice to the contrary.

 

The Notes are subject to Prepayment, at the times and subject to the conditions set forth in the Indenture and the Series 2012-1 Supplement.

 

If an Event of Default shall occur and be continuing, the principal of and accrued interest on this Note may be declared to be due and payable in the manner and with the effect provided in the Indenture and the Series 2012-1 Supplement.

 

The Indenture permits, with certain exceptions as therein provided, the issuance of supplemental indentures with the consent of the Requisite Global Majority, in certain specifically described instances. Any consent given by the Requisite Global Majority shall be conclusive and binding upon the Holder of this Note and on all future holders of this Note and of any Note issued in lieu hereof whether or not notation of such consent is made upon this Note. Supplements and amendments to the Indenture and the Series 2012-1 Supplement may be made only to the extent and in circumstances permitted by the Indenture and the Series 2012-1 Supplement.

 

The Holder of this Note shall have no right to enforce the provisions of the Indenture and the Series 2012-1 Supplement or to institute action to enforce the covenants, or to take any action with respect to a default under the Indenture and the Series 2012-1 Supplement, or to institute, appear in, or defend any suit or other proceedings with respect thereto, except as provided under certain circumstances described in the Indenture and the Series 2012-1 Supplement; provided, however, that nothing contained in the Indenture and the Series 2012-1 Supplement shall affect or impair any right of enforcement conferred on the Holder hereof to enforce any payment of the principal of and interest on this Note on or after the due date thereof; provided further, however, that by acceptance hereof the Holder is deemed to have covenanted and agreed that it will not institute against the Issuer any bankruptcy, reorganization, arrangement, insolvency, or liquidation proceedings, or other proceedings under any applicable bankruptcy or similar law, at any time other than at such time as permitted by Section 1311 of the Indenture and the Series 2012-1 Supplement.

 

  

A-3-3

  

 

Each purchaser of a Note shall be deemed to represent and warrant to the Initial Purchasers, the Issuer, the Indenture Trustee, and the Manager that (a) either (1) it is not, and is not acting on behalf of, a Plan or a governmental, church, or non-U.S. plan which is subject to any federal, state, local, or non-U.S. law that is similar to the prohibited transaction provisions of Section 406 of ERISA or Section 4975 of the Code, and no part of the assets to be used by it to purchase or hold the Series 2012-1 Notes or any interest therein constitutes the assets of any Plan or such a governmental, church, or non-U.S. plan; or (2) (A) the acquisition, holding, and disposition of the Series 2012-1 Note will not give rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code (or, in the case of a governmental, church or non-U.S. plan, a violation of any similar federal, state, local, or non-U.S. law) and (B) the Notes are rated investment grade or better and such person believes that the Series 2012-1 Notes are properly treated as indebtedness without substantial equity features for purposes of Section 2510.3-101 of the regulations issued by the U.S. Department of Labor, and agrees to so treat the Series 2012-1 Notes; and (b) it will not sell or otherwise transfer the Series 2012-1 Notes or any interest therein otherwise than to a purchaser or transferee that represents and agrees with respect to its purchase, holding, and disposition of the Series 2012-1 Notes to the same effect as the purchaser's representation and agreement set forth in this sentence.

 

This Note, and the rights and obligations of the parties hereunder, shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York without giving effect to principles of conflict of laws.

 

All terms and provisions of the Indenture and the Series 2012-1 Supplement are herein incorporated by reference as if set forth herein in their entirety.

 

IT IS HEREBY CERTIFIED, RECITED, AND DECLARED, that all acts, conditions, and things required to exist, happen, and be performed precedent to the execution and delivery of the Indenture and the Series 2012-1 Supplement and the issuance of this Note and the issue of which it is a part, do exist, have happened and have been timely performed in regular form and manner as required by law.

 

Unless the certificate of authentication hereon has been executed by the Indenture Trustee by manual signature of one of its authorized officers, this Note shall not be entitled to any benefit under the Indenture and the Series 2012-1 Supplement, or be valid or obligatory for any purpose.

 

  

A-3-4

  

 

IN WITNESS WHEREOF, CLI Funding V LLC has caused this Note to be duly executed by its duly authorized representative, on this __ day of June 2012.

 

	  	
CLI FUNDING V LLC

	 	 
	  	
By:

	  
	  	  	
Name:

	  	  	
Title:

 

This Note is one of the Notes described in the within-mentioned Indenture and the Series 2012-1 Supplement.

 

	  	
U.S. BANK NATIONAL ASSOCIATION, as Indenture Trustee

	 	 
	  	
By:

	  
	  	  	
Name:

	  	  	
Title:

 

  

A-3-5

  

 

EXHIBIT A-4

 

FORM OF NOTE ISSUED TO INSTITUTIONAL ACCREDITED INVESTORS

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).  THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES THAT SUCH NOTE MAY BE RESOLD, PLEDGED, OR TRANSFERRED ONLY IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS AND (1) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON THAT THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT (OR FOR THE ACCOUNT OR ACCOUNTS OF A QUALIFIED INSTITUTIONAL BUYER) AND TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE, OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, OR (3) TO A PERSON THAT IS AN INSTITUTIONAL “ACCREDITED INVESTOR,” WITHIN THE MEANING OF RULE 501(a)(1), (2), (3), OR (7) OF REGULATION D UNDER THE SECURITIES ACT, IS TAKING DELIVERY OF SUCH NOTE IN AN AMOUNT OF AT LEAST $100,000 AND DELIVERS A PURCHASER LETTER TO THE INDENTURE TRUSTEE IN THE FORM ATTACHED TO THE SUPPLEMENTS.

 

EACH PURCHASER OF A NOTE SHALL REPRESENT OR BE DEEMED TO REPRESENT AND WARRANT TO THE INITIAL PURCHASERS, THE ISSUER, THE INDENTURE TRUSTEE, AND THE MANAGER THAT (A) EITHER (1) IT IS NOT, AND IS NOT ACTING ON BEHALF OF, A PLAN OR A GOVERNMENTAL, CHURCH, OR NON-U.S. PLAN WHICH IS SUBJECT TO ANY FEDERAL, STATE, LOCAL, OR NON-U.S. LAW THAT IS SIMILAR TO THE PROHIBITED TRANSACTION PROVISIONS OF SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND NO PART OF THE ASSETS TO BE USED BY IT TO PURCHASE OR HOLD THE NOTES OR ANY INTEREST THEREIN CONSTITUTES THE ASSETS OF ANY PLAN OR SUCH A GOVERNMENTAL, CHURCH, OR NON-U.S. PLAN; OR (2) (A) THE ACQUISITION, HOLDING, AND DISPOSITION OF THE NOTE WILL NOT GIVE RISE TO A NONEXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE (OR, IN THE CASE OF A GOVERNMENTAL, CHURCH, OR NON-U.S. PLAN, A VIOLATION OF ANY SIMILAR FEDERAL, STATE, LOCAL, OR NON-U.S. LAW) AND (B) THE NOTES ARE RATED INVESTMENT GRADE OR BETTER AND SUCH PERSON BELIEVES THAT THE NOTES ARE PROPERLY TREATED AS INDEBTEDNESS WITHOUT SUBSTANTIAL EQUITY FEATURES FOR PURPOSES OF SECTION 2510.3-101 OF THE REGULATIONS ISSUED BY THE U.S. DEPARTMENT OF LABOR, AND AGREES TO SO TREAT THE NOTES; AND (B) IT WILL NOT SELL OR OTHERWISE TRANSFER THE NOTES OR ANY INTEREST THEREIN OTHERWISE THAN TO A PURCHASER OR TRANSFEREE THAT REPRESENTS AND AGREES WITH RESPECT TO ITS PURCHASE, HOLDING, AND DISPOSITION OF THE NOTES TO THE SAME EFFECT AS THE PURCHASER'S REPRESENTATION AND AGREEMENT SET FORTH IN THIS SENTENCE.

 

  

A-4-1

  

 

THIS NOTE IS NOT GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

 

	
CLI FUNDING V LLC FIXED RATE ASSET BACKED NOTE, SERIES 2012-1

	
$225,000,000

	  	
CUSIP No.: 125634 AF2

	  	  	
No. 1

	  	  	
June 21, 2012

 

KNOW ALL PERSONS BY THESE PRESENTS that CLI FUNDING V LLC, a limited liability company organized and existing under the laws of the State of Delaware (the “Issuer”), for value received, hereby promises to pay to _______, or registered assigns, at the principal corporate trust office of the Indenture Trustee named below, (i) the principal sum of up to Two Hundred Twenty-Five Million Dollars ($225,000,000), which sum shall be payable on the dates and in the amounts set forth in the Indenture, dated as of March 18, 2011 (as amended, restated, or otherwise modified from time to time, the “Indenture”) and the Series 2012-1 Supplement, dated as of June 21, 2012 (as amended, restated, or otherwise modified from time to time, the “Series 2012-1 Supplement”), each between the Issuer and U.S. Bank National Association as indenture trustee (the “Indenture Trustee”), and (ii) interest on the outstanding principal amount of this Note on the dates and in the amounts set forth in the Indenture and the Series 2012-1 Supplement.  Capitalized terms not otherwise defined herein will have the meaning set forth in the Indenture and the Series 2012-1 Supplement.

 

Payment of the principal of and interest on this Note shall be made in lawful money of the United States of America which at the time of payment is legal tender for payment of public and private debts. The principal balance of, and interest on this Note is payable at the times and in the amounts set forth in the Indenture and the Series 2012-1 Supplement by wire transfer of immediately available funds to the account designated by the Holder of record on the immediately preceding Record Date.

 

This Note is one of the authorized notes identified in the title hereto and issued in the aggregate principal amount of up to Two Hundred Twenty-Five Million Dollars ($225,000,000) pursuant to the Indenture and the Series 2012-1 Supplement.

 

The Notes shall be an obligation of the Issuer and shall be secured by the Collateral, all as defined in, and subject to limitations set forth in, the Indenture and the Series 2012-1 Supplement.

 

This Note is transferable as provided in the Indenture and the Series 2012-1 Supplement, subject to certain limitations therein contained, only upon the books for registration and transfer kept by the Indenture Trustee, and only upon surrender of this Note for transfer to the Indenture Trustee duly endorsed by, or accompanied by a written instrument of transfer in form reasonably satisfactory to the Indenture Trustee duly executed by, the registered Holder hereof or his attorney duly authorized in writing. The Indenture Trustee or the Issuer may require payment by the Holder of a sum sufficient to cover any tax expense or other governmental charge payable in connection with any transfer or exchange of the Notes.

 

  

A-4-2

  

 

The Issuer, the Indenture Trustee, and any other agent of the Issuer may treat the person in whose name this Note is registered as the absolute owner hereof for all purposes, and neither the Issuer, the Indenture Trustee, nor any other such agent shall be affected by notice to the contrary.

 

The Notes are subject to Prepayment, at the times and subject to the conditions set forth in the Indenture and the Series 2012-1 Supplement.

 

If an Event of Default shall occur and be continuing, the principal of and accrued interest on this Note may be declared to be due and payable in the manner and with the effect provided in the Indenture and the Series 2012-1 Supplement.

 

The Indenture permits, with certain exceptions as therein provided, the issuance of supplemental indentures with the consent of the Requisite Global Majority, in certain specifically described instances. Any consent given by the Requisite Global Majority shall be conclusive and binding upon the Holder of this Note and on all future holders of this Note and of any Note issued in lieu hereof whether or not notation of such consent is made upon this Note. Supplements and amendments to the Indenture and the Series 2012-1 Supplement may be made only to the extent and in circumstances permitted by the Indenture and the Series 2012-1 Supplement.

 

The Holder of this Note shall have no right to enforce the provisions of the Indenture and the Series 2012-1 Supplement or to institute action to enforce the covenants, or to take any action with respect to a default under the Indenture and the Series 2012-1 Supplement, or to institute, appear in, or defend any suit or other proceedings with respect thereto, except as provided under certain circumstances described in the Indenture and the Series 2012-1 Supplement; provided, however, that nothing contained in the Indenture and the Series 2012-1 Supplement shall affect or impair any right of enforcement conferred on the Holder hereof to enforce any payment of the principal of and interest on this Note on or after the due date thereof; provided further, however, that by acceptance hereof the Holder is deemed to have covenanted and agreed that it will not institute against the Issuer any bankruptcy, reorganization, arrangement, insolvency, or liquidation proceedings, or other proceedings under any applicable bankruptcy or similar law, at any time other than at such time as permitted by Section 1311 of the Indenture and the Series 2012-1 Supplement.

 

Each purchaser of a Note shall be deemed to represent and warrant to the Initial Purchasers, the Issuer, the Indenture Trustee, and the Manager that (a) either (1) it is not, and is not acting on behalf of, a Plan or a governmental, church, or non-U.S. plan which is subject to any federal, state, local, or non-U.S. law that is similar to the prohibited transaction provisions of Section 406 of ERISA or Section 4975 of the Code, and no part of the assets to be used by it to purchase or hold the Series 2012-1 Notes or any interest therein constitutes the assets of any Plan or such a governmental, church, or non-U.S. plan; or (2) (A) the acquisition, holding, and disposition of the Series 2012-1 Note will not give rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code (or, in the case of a governmental, church, or non-U.S. plan, a violation of any similar federal, state, local, or non-U.S. law) and (B) the Notes are rated investment grade or better and such person believes that the Series 2012-1 Notes are properly treated as indebtedness without substantial equity features for purposes of Section 2510.3-101 of the regulations issued by the U.S. Department of Labor, and agrees to so treat the Series 2012-1 Notes; and (b) it will not sell or otherwise transfer the Series 2012-1 Notes or any interest therein otherwise than to a purchaser or transferee that represents and agrees with respect to its purchase, holding, and disposition of the Series 2012-1 Notes to the same effect as the purchaser's representation and agreement set forth in this sentence.

 

  

A-4-3

  

 

This Note, and the rights and obligations of the parties hereunder, shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York without giving effect to principles of conflict of laws.

 

All terms and provisions of the Indenture and the Series 2012-1 Supplement are herein incorporated by reference as if set forth herein in their entirety.

 

IT IS HEREBY CERTIFIED, RECITED, AND DECLARED, that all acts, conditions, and things required to exist, happen, and be performed precedent to the execution and delivery of the Indenture and the Series 2012-1 Supplement and the issuance of this Note and the issue of which it is a part, do exist, have happened and have been timely performed in regular form and manner as required by law.

 

Unless the certificate of authentication hereon has been executed by the Indenture Trustee by manual signature of one of its authorized officers, this Note shall not be entitled to any benefit under the Indenture and the Series 2012-1 Supplement, or be valid or obligatory for any purpose.

 

  

A-4-4

  

 

IN WITNESS WHEREOF, CLI Funding V LLC has caused this Note to be duly executed by its duly authorized representative, on this __ day of June 2012.

 

	  	
CLI FUNDING V LLC

	 	 
	  	
By:

	  
	  	  	
Name:

	  	  	
Title:

 

This Note is one of the Notes described in the within-mentioned Indenture and the Series 2012-1 Supplement.

 

	  	
U.S. BANK NATIONAL ASSOCIATION, as Indenture Trustee

	 	 
	  	
By:

	  
	  	  	
Name:

	  	  	
Title:

 

  

A-4-5

  

 

EXHIBIT B

 

FORM OF

 

CERTIFICATE TO BE GIVEN BY NOTEHOLDER

 

[Euroclear Bank S.A./N.V., as operator

of the Euroclear Clearance System

1 Boulevard du Roi Albert II

B-1210 Brussels, Belgium]

 

[Clearstream, Luxembourg Banking, société anonyme

f/k/a CedelBank, société anonyme

67 Boulevard Grand Duchesse Charlotte

L-1331 Luxembourg]

 

	  	
Re:

	

$______ of the Fixed Rate Asset Backed Notes, Series 2012-1 (the “Notes”) issued pursuant to the Series 2012-1 Supplement, dated as of June 21, 2012, between CLI Funding V LLC (the “Issuer”) and U.S. Bank National Association (the “Indenture Trustee”) to the Indenture, dated as of March 18, 2011, between the Issuer and the Indenture Trustee.

 

This is to certify that as of the date hereof, and except as set forth below, the beneficial interest in the Notes held by you for our account is owned by persons that are not U.S. persons (as defined in Rule 902 under the Securities Act of 1933, as amended).

 

The undersigned undertakes to advise you promptly in writing on or prior to the date on which you intend to submit your certification relating to the Notes held by you in which the undersigned has acquired, or intends to acquire, a beneficial interest in accordance with your operating procedures if any applicable statement herein is not correct on such date. In the absence of any such notification, it may be assumed that this certification applies as of such date.

 

[This certification excepts beneficial interests in and does not relate to U.S. $_________ principal amount of the Notes appearing in your books as being held for our account but that we have sold or as to which we are not yet able to certify.]

 

  

B-1

  

 

We understand that this certification is required in connection with certain securities laws in the United States of America. If administrative or legal proceedings are commenced or threatened in connection with which this certification is or would be relevant, we irrevocably authorize you to produce this certification or a copy thereof to any interested party in such proceedings.

 

	
Dated:*___________________

	  	
By:                                           _________________

	  	  	
Account Holder

 

	
_________________

	  	  

 

*Certification must be dated on or after the 15th day before the date of the Euroclear or Clearstream certificate to which this certification relates.

 

  

B-2

  

 

EXHIBIT C

 

FORM OF

 

CERTIFICATE TO BE GIVEN BY EUROCLEAR OR CLEARSTREAM

 

U.S. Bank National Association,

as Indenture Trustee and Note Registrar

Corporate Trust Services

EP-MN-WS3D

60 Livingston Avenue

St. Paul, MN 55107-2292

Attn: Structured Finance/CLI Funding V LLC 2012-1

 

	  	
Re:

	

$______ of the Fixed Rate Asset Backed Notes, Series 2012-1 (the “Notes”) issued pursuant to the Series 2012-1 Supplement, dated as of June 21, 2012, between CLI Funding V LLC (the “Issuer”) and U.S. Bank National Association (the “Indenture Trustee”) to the Indenture, dated as of March 18, 2011, between the Issuer and the Indenture Trustee.

Re:

 

This is to certify that, based solely on certifications we have received in writing, by tested telex or by electronic transmission from member organizations appearing in our records as persons being entitled to a portion of the principal amount set forth below (our “Member Organizations”) as of the date hereof, $__________ principal amount of the Notes is owned by persons (a) that are not U.S. persons (as defined in Rule 902 under the Securities Act of 1933, as amended (the “Securities Act”)) or (b) who purchased their Notes (or interests therein) in a transaction or transactions that did not require registration under the Securities Act.

 

We further certify (a) that we are not making available herewith for exchange any portion of the related Regulation S Temporary Book-Entry Note excepted in such certifications and (b) that as of the date hereof we have not received any notification from any of our Member Organizations to the effect that the statements made by them with respect to any portion of the part submitted herewith for exchange are no longer true and cannot be relied upon as of the date hereof.

 

We understand that this certification is required in connection with certain securities laws of the United States of America. If administrative or legal proceedings are commenced or threatened in connection with which this certification is or would be relevant, we irrevocably authorize you to produce this certification or a copy hereof to any interested party in such proceedings.

 

	
Dated: ___________________

	  	
Yours faithfully,

	  	  	
By:

	  	  	
[Euroclear Bank S.A./N.V., as operator of the Euroclear Clearance System] [Clearstream, société anonyme]

 

  

C-1

  

 

EXHIBIT D

 

FORM OF

 

CERTIFICATE TO BE GIVEN BY TRANSFEREE OF BENEFICIAL INTEREST IN A

 

REGULATION S TEMPORARY GLOBAL NOTE

 

[Euroclear Bank S.A./N.V., as operator

of the Euroclear Clearance System

1 Boulevard du Roi Albert II

B-1210 Brussels, Belgium]

 

[Clearstream, Luxembourg Banking, société anonyme

f/k/a CedelBank, société anonyme

67 Boulevard Grand Duchesse Charlotte

L-1331 Luxembourg]

 

	  	
Re:

	

$_______ of the Fixed Rate Asset Backed Notes, Series 2012-1 (the “Notes”) issued pursuant to the Series 2012-1 Supplement, dated as of June 21, 2012, between CLI Funding V LLC (the “Issuer”) and U.S. Bank National Association (the “Indenture Trustee”) to the Indenture, dated as of March 18, 2011, between the Issuer and the Indenture Trustee.

 

This is to certify that as of the date hereof, and except as set forth below, for purposes of acquiring a beneficial interest in the Notes, the undersigned certifies that it is not a U.S. person (as defined in Rule 902 under the Securities Act of 1933, as amended).

 

The undersigned undertakes to advise you promptly by tested telex on or prior to the date on which you intend to submit your certification relating to the Notes held by you in which the undersigned intends to acquire a beneficial interest in accordance with your operating procedures if any applicable statement herein is not correct on such date. In the absence of any such notification, it may be assumed that this certification applies as of such date.

 

We understand that this certification is required in connection with certain securities laws in the United States of America. If administrative or legal proceedings are commenced or threatened in connection with which this certification is or would be relevant, we irrevocably authorize you to produce this certification or a copy thereof to any interested party in such proceedings.

 

	
Dated: ___________________

	  	
By:

 

  

D-1

  

 

EXHIBIT E

 

FORM OF

 

TRANSFER CERTIFICATE FOR EXCHANGE OR

 

TRANSFER FROM 144A BOOK-ENTRY NOTE

 

TO REGULATION S BOOK-ENTRY NOTE

 

U.S. Bank National Association,

as Indenture Trustee and Note Registrar

EP-MN-WS3D

60 Livingston Avenue

St. Paul, MN 55107-2292

Attn: Structured Finance/CLI Funding V LLC 2012-1

 

	  	
Re:

	

$______ of the Fixed Rate Asset Backed Notes, Series 2012-1 (the “Notes”) issued pursuant to the Series 2012-1 Supplement, dated as of June 21, 2012, between CLI Funding V LLC (the “Issuer”) and U.S. Bank National Association (the “Indenture Trustee”) to the Indenture, dated as of March 18, 2011, between the Issuer and the Indenture Trustee.

 

Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

 

This letter relates to U.S. $___________ principal amount of Notes that are held as a beneficial interest in the 144A Book-Entry Note (CUSIP No. [________]) with DTC in the name of [insert name of transferor] (the “Transferor”). The Transferor has requested an exchange or transfer of the beneficial interest for an interest in the Regulation S Book-Entry Note (CUSIP No. [________]) to be held with [Euroclear] [Clearstream] through DTC.

 

In connection with the request and in receipt of the Notes, the Transferor does hereby certify that the exchange or transfer has been effected in accordance with the transfer restrictions set forth in the Notes and the Indenture and:

 

(a)           pursuant to and in accordance with Regulation S under the Securities Act of 1933, as amended (the “Securities Act”), and accordingly the Transferor does hereby certify that:

 

(i)           the offer of the Notes was not made to a Person in the United States of America,

 

(ii)           either (A) at the time the buy order was originated, the transferee was outside the United States of America, or the Transferor and any person acting on its behalf reasonably believed that the transferee was outside the United States of America or (B) the transaction was executed in, on, or through the facilities of a designated offshore securities market and neither the Transferor nor any person acting on its behalf knows that the transaction was pre-arranged with a buyer in the United States of America,

 

  

E-1

  

 

(iii)           no directed selling efforts have been made in contravention of the requirements of Rule 903 or 904 of Regulation S, as applicable, and the other conditions of Rule 903 or Rule 904 of Regulation S, as applicable, have been satisfied;

 

(iv)           the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act, and

 

(b)           with respect to transfers made in reliance on Rule 144A under the Securities Act, the Transferor does hereby certify that the Notes are being transferred in a transaction permitted by Rule 144A under the Securities Act.

 

This certification and the statements contained herein are made for your benefit and the benefit of the Issuer and Wells Fargo Securities, LLC and Deutsche Bank Securities Inc., the Initial Purchasers.

 

[Insert name of Transferor]

 

	
Dated: ___________________

	  	
By:

	  	  	
Title:

  

E-2

  

 

EXHIBIT F

 

FORM OF TRANSFER CERTIFICATE FOR

 

EXCHANGE OR TRANSFER FROM

 

 REGULATION S BOOK-ENTRY NOTE TO 144A BOOK-ENTRY NOTE

 

 

U.S. Bank National Association,

as Indenture Trustee and Note Registrar

EP-MN-WS3D

60 Livingston Avenue

St. Paul, MN 55107-2292

Attention: Structured Finance/CLI Funding V LLC 2012-1

	  	
Re:

	

$__________ of the Fixed Rate Asset Backed Notes, Series 2012-1 (the “Notes”) issued pursuant to the Series 2012-1 Supplement, dated as of June 21, 2012, between CLI Funding V LLC (the “Issuer”) and U.S. Bank National Association (the “Indenture Trustee”) to the Indenture, dated as of March 18, 2011, between the Issuer and the Indenture Trustee.

 

Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

 

This letter relates to U.S. $_________________ aggregate principal amount of Notes which are held in the form of a Regulation S Global Note with the Depository (CUSIP (ISIN) No. [________] ([________])) in the name of [name of transferor] (the “Transferor”) to effect the transfer of the Notes in exchange for an equivalent beneficial interest in a Rule 144A Global Note.

 

In connection with such request, and in respect of such Notes, the Transferor does hereby certify that such Notes are being transferred in accordance with (i) the transfer restrictions set forth in the Indenture, the Notes and the final offering memorandum dated June 21, 2012 relating to the Notes and (ii) Rule 144A under the Securities Act, to a transferee that the Transferor reasonably believes is purchasing the Notes for its own account or an account with respect to which the transferee exercises sole investment discretion, the transferee and any such account is a “qualified institutional buyer” within the meaning of Rule 144A and a “qualified purchaser,” within the meaning of Section 3(c)(2) under the United States of America Investment Company Act of 1940, as amended (the “Investment Company Act”) and such transferee is aware that the sale to it is being made in reliance upon Rule 144A, in a transaction meeting the requirements of Rule 144A and (iii) in accordance with any applicable securities laws of any state of the United States or any other jurisdiction.

 

  

F-1

  

 

Each transferee of a Note is deemed to represent at the time of transfer that the transferee is a Qualified Institutional Buyer and (i) that it is a Qualified Purchaser or a Knowledgeable Employee (as defined in the Investment Company Act), (ii) that it is not formed for the purpose of investing in the Notes, unless all of its beneficial owners is a Qualified Purchaser or Knowledgeable Employee, (iii) that it is not a dealer described in paragraph (a)(1)(ii) of Rule 144A unless such transferee owns and invests on a discretionary basis at least U.S. $10 million in securities of issuers that are not affiliated persons of such dealer, (iv) that it is not a plan referred to in paragraph (a)(1)(i)(D) or (E) or Rule 144A or a trust fund referred to in paragraph (a)(1)(i)(F) of Rule 144A that holds the assets of such plan, unless investment decisions are made solely by the fiduciary, trustee, or sponsor of such plan, (v) that it and each account for which it is purchasing is purchasing Notes in at least the minimum denomination, and (vi) that it will provide written notice of the foregoing any other applicable transfer restrictions to any transferee.

 

  

F-2

  

 

This certification and the statements contained herein are made for your benefit and the benefit of the Issuer and Wells Fargo Securities, LLC and Deutsche Bank Securities Inc., the Initial Purchasers.

 

	 	
[Name of Transferor]

	 	 
	 	 
	 	
By:

	  
	 	  	
Name:

	 	  	
Title:

 

 

	
Dated: _____________, ______

	  	  
	  	  	  

 

  

F-3

  

 

EXHIBIT G

 

FORM OF

 

INITIAL PURCHASER EXCHANGE INSTRUCTIONS

 

Depository Trust Company

55 Water Street

50th Floor

New York, New York 10041

 

	  	
Re:

	

$_______ of the Fixed Rate Asset Backed Notes, Series 2012-1 (the “Notes”) issued pursuant to the Series 2012-1 Supplement, dated as of June 21, 2012, between CLI Funding V LLC (the “Issuer”) and U.S. Bank National Association (the “Indenture Trustee”) to the Indenture, dated as of March 18, 2011, between the Issuer and the Indenture Trustee.

 

Pursuant to Section 2.07(c) of the Series 2012-1 Supplement, [Wells Fargo Securities, LLC][Deutsche Bank Securities Inc.] (the “Initial Purchaser”) hereby request that $____________ aggregate principal amount of the Notes held by you for our account and represented by the Regulation S Temporary Book-Entry Note (CUSIP No. [__________]) (as defined in the Series 2012-1 Supplement) be exchanged for an equal principal amount represented by the 144A Book-Entry Note (CUSIP No. [__________]) to be held by you for our account.

 

	
Dated: ___________________

	  	
 

 

[Wells Fargo Securities, LLC][Deutsche Bank Securities Inc.], as Initial Purchaser

	  	  	  
	  	  	
By:

	  	  	
Title:

 

  

G-1

  

 

EXHIBIT H

 

FORM OF PURCHASER LETTER

 

U.S. Bank National Association,

as Indenture Trustee

EP-MN-WS3D

60 Livingston Avenue

St. Paul, MN 55107-2292

Attention: Structured Finance/CLI Funding V LLC 2012-1

 

Ladies and Gentlemen:

 

We are delivering this letter in connection with the transfer of $__________ of the Fixed Rate Asset Backed Notes, Series 2012-1 (the “Notes”) issued pursuant to the Series 2012-1 Supplement, dated as of June 21, 2012, between CLI Funding V LLC (the “Issuer”) and U.S. Bank National Association (the “Indenture Trustee”) to the Indenture, dated as of March 18, 2011, between the Issuer and the Indenture Trustee.  Capitalized terms used herein without definition shall have the meanings assigned thereto in the Series 2012-1 Supplement.

 

We hereby confirm that:

 

(i)           we are authorized to consummate the purchase of the Notes;

 

(ii)           we are an institutional accredited investor (an “Institutional Accredited Investor”), within the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”);

 

(iii)           we are purchasing the Notes for our own account or for the account of one or more other Institutional Accredited Investors;

 

(iv)           we are taking delivery of the Notes in an amount of at least $100,000 for our own account or for each separate account for which we are acting;

 

(v)           we have such knowledge and experience in financial and business matters, we are capable of evaluating the merits and risks of purchasing Notes and we, or the account for which we are purchasing Notes, can bear the economic risks of investing in the Notes for an indefinite period of time;

 

(vi)           we have had access to such information concerning the Issuer we have considered necessary in connection with an investment decision to acquire the Notes;

 

(vii)           we are acquiring Notes for investment and not with a view to any distribution thereof in a transaction that would violate the Securities Act or the securities laws of any state of the United States or any other applicable jurisdiction; provided that the disposition of our property and the property of any accounts for which we are acting as fiduciary shall remain at all times within our control;

 

  

H-1

  

 

(viii)           we represent to the Initial Purchasers, the Manager, the Issuer, and the Indenture Trustee that (a) either (1) we are not, and we are not acting on behalf of, an employee benefit plan within the meaning of section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) or a plan within the meaning of section 4975 of the Internal Revenue Code of 1986 (“Code”) (each, a “Plan”) or a governmental, church, or non-U.S. plan which is subject to any federal, state, local, or non-U.S. law that is similar to the prohibited transaction provisions of Section 406 of ERISA or Section 4975 of the Code, and no part of the assets to be used by us to purchase or hold the Notes or any interest therein constitutes the assets of any Plan or such a governmental, church, or non-U.S. plan or (2) (A) the acquisition, holding, and disposition of the Notes will not give rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code (or, in the case of a governmental, church, or non-U.S. Plan, a violation of any similar federal, state, local, or non-U.S. law) and (B) we believe that the Notes are properly treated as indebtedness without substantial equity features for purposes of Section 2510.3-101 of the regulations issued by the U.S. Department of Labor, and we agree to so treat the Note and (b) we will not sell or otherwise transfer the Series 2012-1 Notes or any interest therein otherwise than to a purchaser or transferee that represents and agrees with respect to its purchase, holding, and disposition of the Notes to the same effect as the representation and agreement set forth in this sentence; and

 

(ix)           we are not a Competitor.

 

We understand that the Notes are being offered in a transaction not involving any public offering within the meaning of the Securities Act and that the Notes have not been registered under the Securities Act, and we agree, on our own behalf and on behalf of each account for which we acquire any Notes, that such Notes may be resold, pledged, or transferred only (i) in a transaction meeting the requirements of Rule 144A (“Rule 144A”) under the Securities Act, to a person that we reasonably believe is a “qualified institutional buyer” (as defined in Rule 144A), that purchases for its own account (or for the account or accounts of a qualified institutional buyer) and to whom notice is given that the resale, pledge, or other transfer is being made in reliance on Rule 144A, or (ii) to a person that is an Institutional Accredited Investor, is taking delivery of such Notes in an amount of at least $100,000 and delivers a letter to you, in substantially the form of this letter, or (iii) in an offshore transaction in accordance with Rule 903 or Rule 904 of Regulation S under the Securities Act.

 

We understand that the Indenture Trustee and Note Registrar will not be required to accept for registration of transfer any Notes, except upon presentation of evidence satisfactory to the Transferor that the foregoing restrictions on transfer have been complied with.  We further understand that the Notes will bear a legend substantially to the following effect:

 

  

H-2

  

 

[For Book-Entry Notes Only:  UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRANSFEROR OF SUCH NOTE (THE “TRANSFEROR”) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR THE 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.

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).  THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES THAT SUCH NOTE MAY BE RESOLD, PLEDGED, OR TRANSFERRED ONLY IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS AND (1) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON THAT THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT (OR FOR THE ACCOUNT OR ACCOUNTS OF A QUALIFIED INSTITUTIONAL BUYER) AND TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE, OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A OR (2) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT OR (3) TO A PERSON THAT IS AN INSTITUTIONAL “ACCREDITED INVESTOR,” WITHIN THE MEANING OF RULE 501(a)(1), (2), (3), OR (7) OF REGULATION D UNDER THE SECURITIES ACT, IS TAKING DELIVERY OF SUCH NOTE IN AN AMOUNT OF AT LEAST $100,000 AND DELIVERS A PURCHASER LETTER TO THE INDENTURE TRUSTEE IN THE FORM ATTACHED TO THE SUPPLEMENTS.

 

EACH PURCHASER OF A NOTE SHALL REPRESENT OR BE DEEMED TO REPRESENT AND WARRANT TO THE INITIAL PURCHASERS, THE ISSUER, THE INDENTURE TRUSTEE, AND THE MANAGER THAT (A) EITHER (1) IT IS NOT, AND IS NOT ACTING ON BEHALF OF, A PLAN OR A GOVERNMENTAL, CHURCH, OR NON-U.S. PLAN WHICH IS SUBJECT TO ANY FEDERAL, STATE, LOCAL, OR NON-U.S. LAW THAT IS SIMILAR TO THE PROHIBITED TRANSACTION PROVISIONS OF SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND NO PART OF THE ASSETS TO BE USED BY IT TO PURCHASE OR HOLD THE NOTES OR ANY INTEREST THEREIN CONSTITUTES THE ASSETS OF ANY PLAN OR SUCH A GOVERNMENTAL, CHURCH, OR NON-U.S. PLAN OR (2) (A) THE ACQUISITION, HOLDING, AND DISPOSITION OF THE NOTE WILL NOT GIVE RISE TO A NONEXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE (OR, IN THE CASE OF A GOVERNMENTAL, CHURCH, OR NON-U.S. PLAN, A VIOLATION OF ANY SIMILAR FEDERAL, STATE, LOCAL, OR NON-U.S. LAW) AND (B) THE NOTES ARE RATED INVESTMENT GRADE OR BETTER AND SUCH PERSON BELIEVES THAT THE NOTES ARE PROPERLY TREATED AS INDEBTEDNESS WITHOUT SUBSTANTIAL EQUITY FEATURES FOR PURPOSES OF SECTION 2510.3-101 OF THE REGULATIONS ISSUED BY THE U.S. DEPARTMENT OF LABOR, AND AGREES TO SO TREAT THE NOTES; AND (b) IT WILL NOT SELL OR OTHERWISE TRANSFER THE NOTES OR ANY INTEREST THEREIN OTHERWISE THAN TO A PURCHASER OR TRANSFEREE THAT REPRESENTS AND AGREES WITH RESPECT TO ITS PURCHASE, HOLDING, AND DISPOSITION OF THE NOTES TO THE SAME EFFECT AS THE PURCHASER'S REPRESENTATION AND AGREEMENT SET FORTH IN THIS SENTENCE.

 

  

H-3

  

 

THIS NOTE IS NOT GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.]

 

[FOR REGULATION S BOOK-ENTRY NOTES:

 

	
  

	
1.

	
EACH INVESTOR PURCHASING THE NOTES IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT UNDERSTANDS THAT THE NOTES HAVE NOT AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT, THAT ANY OFFERS, SALES, OR DELIVERIES OF THE NOTES PURCHASED BY IT IN THE UNITED STATES OR TO U.S. PERSONS PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF (I) THE COMMENCEMENT OF THE DISTRIBUTION OF THE NOTES AND (II) THE CLOSING DATE, MAY CONSTITUTE A VIOLATION OF UNITED STATES LAW, AND THAT DISTRIBUTIONS OF PRINCIPAL AND INTEREST WILL BE MADE IN RESPECT OF SUCH NOTES ONLY FOLLOWING THE DELIVERY BY THE HOLDER OF A CERTIFICATION OF  NON-U.S. BENEFICIAL OWNERSHIP OR THE EXCHANGE OF BENEFICIAL INTEREST IN REGULATION S TEMPORARY BOOK-ENTRY NOTES FOR BENEFICIAL INTERESTS IN THE RELATED RULE 144A BOOK-ENTRY NOTES (WHICH IN EACH CASE WILL ITSELF REQUIRE A CERTIFICATION OF NON-U.S. BENEFICIAL OWNERSHIP), AT THE TIMES AND IN THE MANNER SET FORTH IN THE INDENTURE.

 

	
  

	
2.

	
THE REGULATION S TEMPORARY BOOK-ENTRY NOTES REPRESENTING THE NOTES SOLD TO EACH INVESTOR PURCHASING THE NOTES IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT WILL BEAR A LEGEND TO THE FOLLOWING EFFECT, UNLESS THE ISSUER DETERMINES OTHERWISE CONSISTENT WITH APPLICABLE LAW:

 

  

H-4

  

 

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND, PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF (I) THE COMPLETION OF THE DISTRIBUTION OF THE NOTES AND (II) THE CLOSING DATE, MAY NOT BE OFFERED, SOLD, PLEDGED, OR OTHERWISE TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE PROCEDURES SPECIFIED IN THE INDENTURE.]

 

We understand that this letter is required in connection with certain securities laws. If administrative or other proceedings are commenced in connection with which this letter is or would be relevant, we irrevocably authorize you to produce this letter or a copy of this letter to any interested party in such proceedings.

 

THIS LETTER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

	 	
(Name of Purchaser)

	 	  
	 	
By:

	  
	 	  	
Name:

	 	  	
Title:

	 	  	
Address:

 

  

H-5

  

 

SCHEDULE 1

 

Minimum Targeted Principal Balance by Period

 

CLIF-V 2012-1

 

Annex H

Minimum Targeted Principal Balance by Period

 

	 	 	  	 	
Minimum

	 	 	 	 	  	 	
Minimum

	 	 	 	 	  	 	
Minimum

	 
	 	 	  	 	
Targeted

	 	 	 	 	  	 	
Targeted

	 	 	 	 	  	 	
Targeted

	 
	 	 	  	 	
Principal

	 	 	 	 	  	 	
Principal

	 	 	 	 	  	 	
Principal

	 
	
Period

	 	
Date

	 	
Balance

	 	 	
Period

	 	
Date

	 	
Balance

	 	 	
Period

	 	
Date

	 	
Balance

	 
	0	 	
Close

	 	$	225,000,000	 	 	61	 	
Jul-2017

	 	$	148,750,000	 	 	121	 	
Jul-2022

	 	$	73,750,000	 
	1	 	
Jul-2012

	 	 	223,750,000	 	 	62	 	
Aug-2017

	 	 	147,500,000	 	 	122	 	
Aug-2022

	 	 	72,500,000	 
	2	 	
Aug-2012

	 	 	222,500,000	 	 	63	 	
Sep-2017

	 	 	146,250,000	 	 	123	 	
Sep-2022

	 	 	71,250,000	 
	3	 	
Sep-2012

	 	 	221,250,000	 	 	64	 	
Oct-2017

	 	 	145,000,000	 	 	124	 	
Oct-2022

	 	 	70,000,000	 
	4	 	
Oct-2012

	 	 	220,000,000	 	 	65	 	
Nov-2017

	 	 	143,750,000	 	 	125	 	
Nov-2022

	 	 	68,750,000	 
	5	 	
Nov-2012

	 	 	218,750,000	 	 	66	 	
Dec-2017

	 	 	142,500,000	 	 	126	 	
Dec-2022

	 	 	67,500,000	 
	6	 	
Dec-2012

	 	 	217,500,000	 	 	67	 	
Jan-2018

	 	 	141,250,000	 	 	127	 	
Jan-2023

	 	 	66,250,000	 
	7	 	
Jan-2013

	 	 	216,250,000	 	 	68	 	
Feb-2018

	 	 	140,000,000	 	 	128	 	
Feb-2023

	 	 	65,000,000	 
	8	 	
Feb-2013

	 	 	215,000,000	 	 	69	 	
Mar-2018

	 	 	138,750,000	 	 	129	 	
Mar-2023

	 	 	63,750,000	 
	9	 	
Mar-2013

	 	 	213,750,000	 	 	70	 	
Apr-2018

	 	 	137,500,000	 	 	130	 	
Apr-2023

	 	 	62,500,000	 
	10	 	
Apr-2013

	 	 	212,500,000	 	 	71	 	
May-2018

	 	 	136,250,000	 	 	131	 	
May-2023

	 	 	61,250,000	 
	11	 	
May-2013

	 	 	211,250,000	 	 	72	 	
Jun-2018

	 	 	135,000,000	 	 	132	 	
Jun-2023

	 	 	60,000,000	 
	12	 	
Jun-2013

	 	 	210,000,000	 	 	73	 	
Jul-2018

	 	 	133,750,000	 	 	133	 	
Jul-2023

	 	 	58,750,000	 
	13	 	
Jul-2013

	 	 	208,750,000	 	 	74	 	
Aug-2018

	 	 	132,500,000	 	 	134	 	
Aug-2023

	 	 	57,500,000	 
	14	 	
Aug-2013

	 	 	207,500,000	 	 	75	 	
Sep-2018

	 	 	131,250,000	 	 	135	 	
Sep-2023

	 	 	56,250,000	 
	15	 	
Sep-2013

	 	 	206,250,000	 	 	76	 	
Oct-2018

	 	 	130,000,000	 	 	136	 	
Oct-2023

	 	 	55,000,000	 
	16	 	
Oct-2013

	 	 	205,000,000	 	 	77	 	
Nov-2018

	 	 	128,750,000	 	 	137	 	
Nov-2023

	 	 	53,750,000	 
	17	 	
Nov-2013

	 	 	203,750,000	 	 	78	 	
Dec-2018

	 	 	127,500,000	 	 	138	 	
Dec-2023

	 	 	52,500,000	 
	18	 	
Dec-2013

	 	 	202,500,000	 	 	79	 	
Jan-2019

	 	 	126,250,000	 	 	139	 	
Jan-2024

	 	 	51,250,000	 
	19	 	
Jan-2014

	 	 	201,250,000	 	 	80	 	
Feb-2019

	 	 	125,000,000	 	 	140	 	
Feb-2024

	 	 	50,000,000	 
	20	 	
Feb-2014

	 	 	200,000,000	 	 	81	 	
Mar-2019

	 	 	123,750,000	 	 	141	 	
Mar-2024

	 	 	48,750,000	 
	21	 	
Mar-2014

	 	 	198,750,000	 	 	82	 	
Apr-2019

	 	 	122,500,000	 	 	142	 	
Apr-2024

	 	 	47,500,000	 
	22	 	
Apr-2014

	 	 	197,500,000	 	 	83	 	
May-2019

	 	 	121,250,000	 	 	143	 	
May-2024

	 	 	46,250,000	 
	23	 	
May-2014

	 	 	196,250,000	 	 	84	 	
Jun-2019

	 	 	120,000,000	 	 	144	 	
Jun-2024

	 	 	45,000,000	 
	24	 	
Jun-2014

	 	 	195,000,000	 	 	85	 	
Jul-2019

	 	 	118,750,000	 	 	145	 	
Jul-2024

	 	 	43,750,000	 
	25	 	
Jul-2014

	 	 	193,750,000	 	 	86	 	
Aug-2019

	 	 	117,500,000	 	 	146	 	
Aug-2024

	 	 	42,500,000	 
	26	 	
Aug-2014

	 	 	192,500,000	 	 	87	 	
Sep-2019

	 	 	116,250,000	 	 	147	 	
Sep-2024

	 	 	41,250,000	 
	27	 	
Sep-2014

	 	 	191,250,000	 	 	88	 	
Oct-2019

	 	 	115,000,000	 	 	148	 	
Oct-2024

	 	 	40,000,000	 
	28	 	
Oct-2014

	 	 	190,000,000	 	 	89	 	
Nov-2019

	 	 	113,750,000	 	 	149	 	
Nov-2024

	 	 	38,750,000	 
	29	 	
Nov-2014

	 	 	188,750,000	 	 	90	 	
Dec-2019

	 	 	112,500,000	 	 	150	 	
Dec-2024

	 	 	37,500,000	 
	30	 	
Dec-2014

	 	 	187,500,000	 	 	91	 	
Jan-2020

	 	 	111,250,000	 	 	151	 	
Jan-2025

	 	 	36,250,000	 
	31	 	
Jan-2015

	 	 	186,250,000	 	 	92	 	
Feb-2020

	 	 	110,000,000	 	 	152	 	
Feb-2025

	 	 	35,000,000	 
	32	 	
Feb-2015

	 	 	185,000,000	 	 	93	 	
Mar-2020

	 	 	108,750,000	 	 	153	 	
Mar-2025

	 	 	33,750,000	 
	33	 	
Mar-2015

	 	 	183,750,000	 	 	94	 	
Apr-2020

	 	 	107,500,000	 	 	154	 	
Apr-2025

	 	 	32,500,000	 
	34	 	
Apr-2015

	 	 	182,500,000	 	 	95	 	
May-2020

	 	 	106,250,000	 	 	155	 	
May-2025

	 	 	31,250,000	 
	35	 	
May-2015

	 	 	181,250,000	 	 	96	 	
Jun-2020

	 	 	105,000,000	 	 	156	 	
Jun-2025

	 	 	30,000,000	 
	36	 	
Jun-2015

	 	 	180,000,000	 	 	97	 	
Jul-2020

	 	 	103,750,000	 	 	157	 	
Jul-2025

	 	 	28,750,000	 
	37	 	
Jul-2015

	 	 	178,750,000	 	 	98	 	
Aug-2020

	 	 	102,500,000	 	 	158	 	
Aug-2025

	 	 	27,500,000	 
	38	 	
Aug-2015

	 	 	177,500,000	 	 	99	 	
Sep-2020

	 	 	101,250,000	 	 	159	 	
Sep-2025

	 	 	26,250,000	 
	39	 	
Sep-2015

	 	 	176,250,000	 	 	100	 	
Oct-2020

	 	 	100,000,000	 	 	160	 	
Oct-2025

	 	 	25,000,000	 
	40	 	
Oct-2015

	 	 	175,000,000	 	 	101	 	
Nov-2020

	 	 	98,750,000	 	 	161	 	
Nov-2025

	 	 	23,750,000	 
	41	 	
Nov-2015

	 	 	173,750,000	 	 	102	 	
Dec-2020

	 	 	97,500,000	 	 	162	 	
Dec-2025

	 	 	22,500,000	 
	42	 	
Dec-2015

	 	 	172,500,000	 	 	103	 	
Jan-2021

	 	 	96,250,000	 	 	163	 	
Jan-2026

	 	 	21,250,000	 
	43	 	
Jan-2016

	 	 	171,250,000	 	 	104	 	
Feb-2021

	 	 	95,000,000	 	 	164	 	
Feb-2026

	 	 	20,000,000	 
	44	 	
Feb-2016

	 	 	170,000,000	 	 	105	 	
Mar-2021

	 	 	93,750,000	 	 	165	 	
Mar-2026

	 	 	18,750,000	 
	45	 	
Mar-2016

	 	 	168,750,000	 	 	106	 	
Apr-2021

	 	 	92,500,000	 	 	166	 	
Apr-2026

	 	 	17,500,000	 
	46	 	
Apr-2016

	 	 	167,500,000	 	 	107	 	
May-2021

	 	 	91,250,000	 	 	167	 	
May-2026

	 	 	16,250,000	 
	47	 	
May-2016

	 	 	166,250,000	 	 	108	 	
Jun-2021

	 	 	90,000,000	 	 	168	 	
Jun-2026

	 	 	15,000,000	 
	48	 	
Jun-2016

	 	 	165,000,000	 	 	109	 	
Jul-2021

	 	 	88,750,000	 	 	169	 	
Jul-2026

	 	 	13,750,000	 
	49	 	
Jul-2016

	 	 	163,750,000	 	 	110	 	
Aug-2021

	 	 	87,500,000	 	 	170	 	
Aug-2026

	 	 	12,500,000	 
	50	 	
Aug-2016

	 	 	162,500,000	 	 	111	 	
Sep-2021

	 	 	86,250,000	 	 	171	 	
Sep-2026

	 	 	11,250,000	 
	51	 	
Sep-2016

	 	 	161,250,000	 	 	112	 	
Oct-2021

	 	 	85,000,000	 	 	172	 	
Oct-2026

	 	 	10,000,000	 
	52	 	
Oct-2016

	 	 	160,000,000	 	 	113	 	
Nov-2021

	 	 	83,750,000	 	 	173	 	
Nov-2026

	 	 	8,750,000	 
	53	 	
Nov-2016

	 	 	158,750,000	 	 	114	 	
Dec-2021

	 	 	82,500,000	 	 	174	 	
Dec-2026

	 	 	7,500,000	 
	54	 	
Dec-2016

	 	 	157,500,000	 	 	115	 	
Jan-2022

	 	 	81,250,000	 	 	175	 	
Jan-2027

	 	 	6,250,000	 
	55	 	
Jan-2017

	 	 	156,250,000	 	 	116	 	
Feb-2022

	 	 	80,000,000	 	 	176	 	
Feb-2027

	 	 	5,000,000	 
	56	 	
Feb-2017

	 	 	155,000,000	 	 	117	 	
Mar-2022

	 	 	78,750,000	 	 	177	 	
Mar-2027

	 	 	3,750,000	 
	57	 	
Mar-2017

	 	 	153,750,000	 	 	118	 	
Apr-2022

	 	 	77,500,000	 	 	178	 	
Apr-2027

	 	 	2,500,000	 
	58	 	
Apr-2017

	 	 	152,500,000	 	 	119	 	
May-2022

	 	 	76,250,000	 	 	179	 	
May-2027

	 	 	1,250,000	 
	59	 	
May-2017

	 	 	151,250,000	 	 	120	 	
Jun-2022

	 	 	75,000,000	 	 	180	 	
Jun-2027

	 	 	0	 
	60	 	
Jun-2017

	 	 	150,000,000	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 

 

  

  

  

 

Scheduled Targeted Principal Balance by Period

 

CLIF-V 2012-1

 

Annex I

Scheduled Targeted Principal Balance by Period

 

	 	 	  	 	
Scheduled

	 	 	 	 	  	 	
Scheduled

	 	 	 	 	  	 	
Scheduled

	 
	 	 	  	 	
Targeted

	 	 	 	 	  	 	
Targeted

	 	 	 	 	  	 	
Targeted

	 
	 	 	  	 	
Principal

	 	 	 	 	  	 	
Principal

	 	 	 	 	  	 	
Principal

	 
	
Period

	 	
Date

	 	
Balance

	 	 	
Period

	 	
Date

	 	
Balance

	 	 	
Period

	 	
Date

	 	
Balance

	 
	0	 	
Close

	 	$	225,000,000	 	 	43	 	
Jan-2016

	 	$	134,413,321	 	 	85	 	
Jul-2019

	 	$	63,994,255	 
	1	 	
Jul-2012

	 	 	223,136,247	 	 	44	 	
Feb-2016

	 	 	132,761,348	 	 	86	 	
Aug-2019

	 	 	60,629,237	 
	2	 	
Aug-2012

	 	 	220,989,138	 	 	45	 	
Mar-2016

	 	 	131,252,930	 	 	87	 	
Sep-2019

	 	 	58,019,521	 
	3	 	
Sep-2012

	 	 	218,864,037	 	 	46	 	
Apr-2016

	 	 	129,596,268	 	 	88	 	
Oct-2019

	 	 	55,058,008	 
	4	 	
Oct-2012

	 	 	215,697,597	 	 	47	 	
May-2016

	 	 	127,973,193	 	 	89	 	
Nov-2019

	 	 	53,979,898	 
	5	 	
Nov-2012

	 	 	213,550,885	 	 	48	 	
Jun-2016

	 	 	126,298,576	 	 	90	 	
Dec-2019

	 	 	53,158,960	 
	6	 	
Dec-2012

	 	 	211,527,393	 	 	49	 	
Jul-2016

	 	 	124,765,437	 	 	91	 	
Jan-2020

	 	 	52,230,200	 
	7	 	
Jan-2013

	 	 	209,419,149	 	 	50	 	
Aug-2016

	 	 	123,132,584	 	 	92	 	
Feb-2020

	 	 	51,233,138	 
	8	 	
Feb-2013

	 	 	207,337,831	 	 	51	 	
Sep-2016

	 	 	121,495,719	 	 	93	 	
Mar-2020

	 	 	50,403,202	 
	9	 	
Mar-2013

	 	 	205,588,445	 	 	52	 	
Oct-2016

	 	 	119,939,264	 	 	94	 	
Apr-2020

	 	 	49,172,692	 
	10	 	
Apr-2013

	 	 	203,504,777	 	 	53	 	
Nov-2016

	 	 	118,377,641	 	 	95	 	
May-2020

	 	 	48,388,607	 
	11	 	
May-2013

	 	 	201,500,672	 	 	54	 	
Dec-2016

	 	 	116,885,845	 	 	96	 	
Jun-2020

	 	 	47,392,124	 
	12	 	
Jun-2013

	 	 	199,404,720	 	 	55	 	
Jan-2017

	 	 	115,512,672	 	 	97	 	
Jul-2020

	 	 	46,420,171	 
	13	 	
Jul-2013

	 	 	197,377,687	 	 	56	 	
Feb-2017

	 	 	114,167,456	 	 	98	 	
Aug-2020

	 	 	45,533,691	 
	14	 	
Aug-2013

	 	 	195,266,120	 	 	57	 	
Mar-2017

	 	 	112,981,919	 	 	99	 	
Sep-2020

	 	 	44,240,576	 
	15	 	
Sep-2013

	 	 	193,144,147	 	 	58	 	
Apr-2017

	 	 	111,607,000	 	 	100	 	
Oct-2020

	 	 	43,579,023	 
	16	 	
Oct-2013

	 	 	191,099,105	 	 	59	 	
May-2017

	 	 	110,323,149	 	 	101	 	
Nov-2020

	 	 	42,764,586	 
	17	 	
Nov-2013

	 	 	188,969,870	 	 	60	 	
Jun-2017

	 	 	108,983,283	 	 	102	 	
Dec-2020

	 	 	41,768,087	 
	18	 	
Dec-2013

	 	 	186,918,985	 	 	61	 	
Jul-2017

	 	 	107,709,083	 	 	103	 	
Jan-2021

	 	 	41,078,724	 
	19	 	
Jan-2014

	 	 	184,776,667	 	 	62	 	
Aug-2017

	 	 	106,328,411	 	 	104	 	
Feb-2021

	 	 	40,268,526	 
	20	 	
Feb-2014

	 	 	182,619,579	 	 	63	 	
Sep-2017

	 	 	104,955,266	 	 	105	 	
Mar-2021

	 	 	39,682,866	 
	21	 	
Mar-2014

	 	 	180,800,310	 	 	64	 	
Oct-2017

	 	 	103,663,236	 	 	106	 	
Apr-2021

	 	 	38,809,849	 
	22	 	
Apr-2014

	 	 	178,575,682	 	 	65	 	
Nov-2017

	 	 	102,282,829	 	 	107	 	
May-2021

	 	 	38,045,275	 
	23	 	
May-2014

	 	 	176,430,805	 	 	66	 	
Dec-2017

	 	 	100,986,573	 	 	108	 	
Jun-2021

	 	 	37,186,783	 
	24	 	
Jun-2014

	 	 	174,192,438	 	 	67	 	
Jan-2018

	 	 	99,159,961	 	 	109	 	
Jul-2021

	 	 	36,341,178	 
	25	 	
Jul-2014

	 	 	172,031,950	 	 	68	 	
Feb-2018

	 	 	98,055,330	 	 	110	 	
Aug-2021

	 	 	35,468,697	 
	26	 	
Aug-2014

	 	 	169,776,444	 	 	69	 	
Mar-2018

	 	 	96,740,524	 	 	111	 	
Sep-2021

	 	 	34,687,676	 
	27	 	
Sep-2014

	 	 	167,510,017	 	 	70	 	
Apr-2018

	 	 	95,438,830	 	 	112	 	
Oct-2021

	 	 	33,829,685	 
	28	 	
Oct-2014

	 	 	165,322,316	 	 	71	 	
May-2018

	 	 	94,426,856	 	 	113	 	
Nov-2021

	 	 	32,928,144	 
	29	 	
Nov-2014

	 	 	163,040,527	 	 	72	 	
Jun-2018

	 	 	93,532,272	 	 	114	 	
Dec-2021

	 	 	30,388,865	 
	30	 	
Dec-2014

	 	 	160,840,747	 	 	73	 	
Jul-2018

	 	 	92,692,104	 	 	115	 	
Jan-2022

	 	 	27,723,290	 
	31	 	
Jan-2015

	 	 	158,542,667	 	 	74	 	
Aug-2018

	 	 	91,778,359	 	 	116	 	
Feb-2022

	 	 	25,008,264	 
	32	 	
Feb-2015

	 	 	156,530,267	 	 	75	 	
Sep-2018

	 	 	91,152,980	 	 	117	 	
Mar-2022

	 	 	22,768,682	 
	33	 	
Mar-2015

	 	 	154,854,124	 	 	76	 	
Oct-2018

	 	 	90,134,140	 	 	118	 	
Apr-2022

	 	 	19,934,137	 
	34	 	
Apr-2015

	 	 	152,856,228	 	 	77	 	
Nov-2018

	 	 	89,215,406	 	 	119	 	
May-2022

	 	 	17,451,576	 
	35	 	
May-2015

	 	 	150,913,737	 	 	78	 	
Dec-2018

	 	 	87,723,532	 	 	120	 	
Jun-2022

	 	 	14,174,928	 
	36	 	
Jun-2015

	 	 	148,882,427	 	 	79	 	
Jan-2019

	 	 	84,381,562	 	 	121	 	
Jul-2022

	 	 	10,461,504	 
	37	 	
Jul-2015

	 	 	146,881,553	 	 	80	 	
Feb-2019

	 	 	80,068,084	 	 	122	 	
Aug-2022

	 	 	7,869,884	 
	38	 	
Aug-2015

	 	 	144,818,376	 	 	81	 	
Mar-2019

	 	 	78,825,876	 	 	123	 	
Sep-2022

	 	 	5,435,040	 
	39	 	
Sep-2015

	 	 	142,742,210	 	 	82	 	
Apr-2019

	 	 	69,621,840	 	 	124	 	
Oct-2022

	 	 	3,009,149	 
	40	 	
Oct-2015

	 	 	140,662,925	 	 	83	 	
May-2019

	 	 	68,506,394	 	 	125	 	
Nov-2022

	 	 	570,574	 
	41	 	
Nov-2015

	 	 	138,532,238	 	 	84	 	
Jun-2019

	 	 	64,926,288	 	 	126	 	
Dec-2022

	 	 	0	 
	42	 	
Dec-2015

	 	 	136,512,836Form of Restricted Stock Agreement

 Exhibit 10.41 
 RESTRICTED STOCK AGREEMENT 
 THIS AGREEMENT (this
“Agreement”), dated as of                         , 2012 is made by and between FENDER MUSICAL INSTRUMENTS CORPORATION,
a Delaware corporation (the “Company”), and [name] (the “Grantee”). 
 I. AWARD OF RESTRICTED STOCK 

1.1 Grant of Restricted Stock. Grantee is hereby granted, effective as of
                         (the “Grant Date”), an award (the “Award”) of [#] shares of Class B Common Stock,
subject to the terms and conditions of the Plan (as defined below) and this Agreement (the “Restricted Stock”). This Award is granted pursuant to the terms of the Fender Musical Instruments 2007 Equity Compensation Plan, as amended (the
“Plan”). Capitalized terms used in this Agreement and not defined herein or in the Appendix hereto shall have the meaning given to such terms in the Plan. 
 1.2 Limitations on Grant. Grantee agrees to be bound by all of the terms, provisions, conditions and limitations of the Plan and this Agreement. 

II. VESTING OF THE RESTRICTED STOCK 
 2.1 Restriction on Award. The Restricted Stock granted under the Agreement shall be subject to a risk of forfeiture until such shares of Restricted Stock have Vested. 

(a) This Award shall become Vested on the relevant Vesting Date (as defined below). Upon the Vesting Date, subject to Sections 6.1 and
7.2 below, all transfer restrictions on the applicable Restricted Stock shall lapse. Following the Vesting Date, the Restricted Stock under this Agreement shall be referred to herein as the “Shares”. Except as otherwise provided herein,
the Restricted Stock shall vest in equal installments on the [insert vesting schedule] anniversaries of the Grant Date (each, a “Vesting Date”), provided that Grantee has not incurred a termination of Service prior to such relevant Vesting
Date. The period of time prior to an applicable Vesting Date is referred to as the “Restricted Period” of the applicable Restricted Stock 
 (b) If the Grantee’s termination of Service is due to death or disability, as determined by the Company, all Restricted Stock under this Award shall Vest in full. 

2.2 Termination Prior to Vesting. If the Grantee’s Service with the Company (and its Subsidiaries) terminates for any reason
during the Restricted Period, then the unvested portion (after giving effect to the Vesting described in paragraph 2.1(b) above, if applicable) of the Award will be forfeited on the date of such termination of Service, without any further obligation
of the Company to the Grantee and all rights of the Grantee with respect to the unvested Restricted Stock shall terminate. 

 III. RIGHTS DURING RESTRICTED PERIOD 

3.1 No Voting, Dividend Rights. The Grantee will not have any right to vote the Restricted Stock or to receive credit for cash
dividends during the Restricted Period. 
 3.2 Restricted Stock is not Transferable. The Restricted Stock may not be
sold, assigned, pledged, encumbered or otherwise transferred, except as set forth in the Plan or with the consent of the Company. 
 IV.
CORPORATE LEVEL CHANGE IN CONTROL 
 4.1 Change. In the event of any Corporate Level Change in Control, the Restricted
Stock at the time subject to this Award but not otherwise Vested shall automatically Vest in full immediately prior to such Corporate-Level Change in Control. 
 4.2 No Limitation. This Agreement shall not in any way affect the right of the Company to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge,
consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 
 V. ADJUSTMENT IN SHARES 

5.1 Adjustment. Should any change be made to the Common Stock or Class B Common Stock by reason of any stock split, stock dividend,
recapitalization, combination of shares, exchange of shares or other change affecting the outstanding common stock without the Company’s receipt of consideration, appropriate adjustments shall be made to the total number and/or class of
securities subject to this Award. 
 VI. REPURCHASE RIGHTS 
 6.1 The Grantee hereby acknowledges that the Restricted Stock and Shares shall be subject to the repurchase rights set forth in Section 4 of the Third Amended and Restated Stockholders’
Agreement (the “Stockholders Agreement”) and may also be subject to repurchase under any employee stock ownership agreements that Grantee may be required to enter into pursuant to section 7.2 below. The Repurchase Right under the
Stockholders Agreement shall be exercisable in accordance with the provisions of Section 4 of the Stockholders Agreement. 
 VII. OTHER
PROVISIONS 
 7.1 Not a Contract of Employment. Nothing in this Agreement or in the Plan shall (a) confer upon
the Grantee any right to continue in the Service of the Company or any of its Subsidiaries, or (b) interfere with or restrict in any way the rights of the Company or its Subsidiaries, which are hereby expressly reserved, to discharge the
Grantee at any time for any reason whatsoever, with or without Cause, except pursuant to an employment agreement, if any, executed by and between the Company or any of its Subsidiaries and the Grantee. 

7.2 Restricted Stock and Shares Subject to Plan and Stockholder Agreement. The Grantee acknowledges that this Award is subject to
the terms of the Plan and the Restricted Stock and Shares are subject to the terms of the Plan and the Stockholders Agreement and/or such other employee stock ownership agreement as may then be in effect. Grantee further

  
 2 

 
understands and agrees that as a condition of issuance of the Restricted Stock and Shares, the Company may require that Grantee become a party to an employee stock ownership agreement in such
form as the Company may from time to time require as a condition to Vesting of the Restricted Stock (an “Employee Stock Ownership Agreement”). Grantee has carefully read and hereby represents and warrants that he, she or it understands the
terms and provisions of the Stockholders Agreement. If not previously executed and delivered by the Grantee, Grantee shall be required to execute and deliver to the Company a counterpart signature page to the Stockholders Agreement as a condition of
receiving the Restricted Stock. 
 7.3 Construction. This Agreement shall be administered, interpreted and enforced under
the laws of the state of Delaware, without regard to conflicts of laws provisions that would give effect to the laws of another jurisdiction. 
 7.4 Conformity to Securities Laws. The Grantee acknowledges that the Plan is intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and
all regulations and rules promulgated thereunder by the Securities and Exchange Commission. Notwithstanding anything herein to the contrary, the Plan shall be administered only in such a manner as to conform to such laws, rules and regulations. To
the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. The Restricted Stock and the Shares have not been registered under the 1933 Act or
the applicable securities laws of any state and are being granted and issued to Grantee in reliance upon one or more exemptions from such registration, including the exemption provided by SEC Rule 701 for stock issuances under compensatory benefit
plans such as the Plan. Grantee hereby confirms that Grantee has been informed that the Shares are restricted securities under the 1933 Act and may not be resold or transferred unless the Shares are first registered under the Federal securities laws
and under any applicable state securities laws or unless exemptions from such registration requirements are available. Accordingly, Grantee hereby acknowledges that Grantee is prepared to hold the Shares for an indefinite period and that Grantee is
aware that SEC Rule 144 issued under the 1933 Act which exempts certain resales of unrestricted securities is not presently available to exempt the resale of the Shares from the registration requirements of the 1933 Act. Grantee represents and
warrants that it will acquire the Shares, if applicable, for his or her own account for investment and not with a view to distribution, assignment, resale or other transfer, and that by reason of his or her business or financial experience, or the
business or experience of his or her professional advisors, Grantee has the capacity to protect his or her own interests in connection with acquiring the Shares. 
 7.5 Restrictions on Disposition of Shares. Grantee shall make no disposition of the Shares (other than a Permitted Transfer) unless and until there is compliance with all of the following
requirements: 
 (a) Grantee shall have provided the Company with a written summary of the terms and conditions of the proposed
disposition. 
 (b) Grantee shall have complied with all requirements of this Agreement and the Stockholders Agreement
applicable to the disposition of the Shares. 

  
 3 

 (c) Grantee shall have provided the Company with written assurances, in form and substance
satisfactory to the Company, that (a) the proposed disposition does not require registration of the Shares under the 1933 Act or under any applicable state securities laws or (b) all appropriate action necessary for compliance with the
registration requirements of the 1933 Act and for compliance with any applicable state securities laws or any exemption from registration available under the 1933 Act (including Rule 144) and under any applicable state securities laws have been
taken. 
 The Company shall not be required (i) to transfer on its books any Shares which have been sold or transferred in
violation of the provisions of this Agreement, the Stockholders Agreement, or any applicable Employee Stock Ownership Agreement or (ii) to treat as the owner of the Shares, or otherwise to accord voting, dividend or liquidation rights
to, any transferee to whom the Shares have been transferred in contravention of this Agreement, the Stockholders Agreement, or any applicable Employee Stock Ownership Agreement. 

7.6 Restrictive Legends. The stock certificates for the Restricted Stock and the Shares shall be endorsed with one or more of the
following restrictive legends: 
 “The shares represented by this certificate have not been registered under
the Securities Act of 1933 or any applicable state securities laws. The shares may not be sold or offered for sale in the absence of (a) an effective registration statement for the shares under such Act and such state securities laws,
(b) a “no action” letter of the Securities and Exchange Commission and from each applicable state securities authority with respect to such sale or offer or (c) satisfactory assurances to the Corporation that registration under
such Act and such state securities laws is not required with respect to such sale or offer.” 
 “The
shares represented by this certificate are subject to certain vesting conditions, repurchase rights and rights of first refusal granted to the Corporation and accordingly may not be sold, assigned, transferred, encumbered, or in any manner disposed
of except in conformity with the terms of a Restricted Stock Agreement dated by and between the Corporation and the registered holder of the shares (or the predecessor in interest to the shares). A copy of such agreement is maintained at the
Corporation’s principal corporate offices.” 
 “In addition, the shares represented by this
certificate are subject to certain restrictions set forth in the Corporation’s Third Amended and Restated Stockholders Agreement, as the same may be amended from time to time. A copy of such agreement is maintained at the Corporation’s
principal corporate offices.” 
 7.7 Transferee Obligations. Each person to whom any Shares are transferred by means
of any sale, assignment, transfer, gift, pledge, encumbrance, hypothecation, grant or security interest or any other voluntary or involuntary disposition of Shares must, as a condition precedent to the validity of such transfer, acknowledge in
writing to the Company that such person is bound by the provisions of this Agreement and the Stockholders Agreement. 

  
 4 

 7.8 Market Stand-Off. The Grantee hereby acknowledges that the Shares shall be
subject to the market stand-off restrictions set forth in Section 6.17 of the Stockholders Agreement. 
 7.9 Right of
First Refusal. The Grantee hereby acknowledges that the Shares shall be subject to the rights of first refusal and rights of co-sale set forth in Section 3 of the Stockholders Agreement. Such rights of first refusal and rights of co-sale
shall be exercisable in accordance with the provisions of Section 3 of the Stockholders Agreement. 
 7.10 Voting for
Directors. The Grantee hereby acknowledges that the Shares shall be subject to the voting requirements set forth in Section 5 of the Stockholders Agreement. 
 7.11 Tax Withholding. The Company is obligated to withhold federal, state and local taxes) as determined by the Plan Administrator to be required by law. Applicable withholding and source of
payments shall be in accordance with the terms of the Plan. 
 7.12 Entire Agreement. The parties hereto acknowledge that
this Agreement and the Plan set forth the entire agreement and understanding of the parties and supersede all prior written or oral agreements or understandings with respect to the subject matter hereof, except that any provisions therein regarding
confidentiality or non-competition remain in full force and effect in favor of the Company and its Subsidiaries as if the agreements containing such provisions were not so superseded. The obligations imposed by this Agreement are severable and
should be construed independently of each other. The invalidity of one provision shall not affect the validity of any other provision. If any provision of this Agreement shall be invalid or unenforceable, in whole or in part, or as applied to any
circumstances, under the laws of any jurisdiction which may govern for such purpose, then such provision shall be deemed, to the extent allowed by the laws of such jurisdiction, to be modified or restricted to the extent and in the manner necessary
to render the same valid and enforceable, either generally or as applied to such circumstance, or shall be deemed exercised from this Agreement, as the case may require, and this Agreement shall be construed and enforced to the maximum extent
permitted by law, as if such provision had been originally incorporated herein as so modified or restricted, or as if such provision had not been originally incorporated herein, as the case may be. 

7.13 Amendment. The Board at any time, and from time to time, may amend the terms of this Agreement, provided, however,
that the rights of the Grantee shall not be adversely impaired without the Grantee’s written consent. The Company shall provide the Grantee with notice and a copy of any amendment made to this Agreement. 

7.14 Notices. Any notice to be given to the Company under the terms of this Agreement shall be addressed to the Company, in care
of its Secretary. Any notice to be given to Grantee may be addressed to Grantee at his address as it appears on the Company’s records, or at such other address as the Grantee may hereafter designate in writing to the Company. Any such notice
shall be deemed to have been duly given if and when personally delivered or enclosed in a properly sealed envelope addressed as aforesaid, and deposited, postage prepaid, in the United States mails. 

  
 5 

 7.15 Counterparts. This Agreement may be executed in several counterparts, including
via facsimile transmission, each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement. 
 IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto as of the day, month and year first set forth above. 

 

	
	FENDER MUSICAL INSTRUMENTS CORPORATION
	
	
By:                       
                                         
                                

	 Print
Name:                                        
                                        

	
Title:                       
                                         
                            

	
	 THE GRANTEE:

	
	
Signature:                      
                                         
                    

	 Print
Name:                                        
                                        

  
 6 

 APPENDIX 
 The following definitions shall be in effect under this Agreement: 
 A.
Agreement shall mean this Restricted Stock Agreement. 
 B. Board shall mean the
corporation’s board of directors. 
 C. Common Stock shall mean the corporation’s common stock.

 D. Corporate Level Change in Control shall mean any of the following transactions involving a change in
control or ownership of the corporation: 
             (i) a
stockholder-approved merger or consolidation in which securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation’s outstanding securities are transferred to a person or persons different from
the persons holding those securities immediately prior to such transaction, or 

            (ii) a stockholder-approved sale, transfer or other disposition
of all or substantially all of the Corporation’s assets in complete liquidation or dissolution of the Corporation; or 

            (iii) the acquisition, directly or indirectly, by any person or
related group of persons (other than the Corporation or a person that directly or indirectly controls, is controlled by, or is under common control with, the Corporation) of beneficial ownership (within the meaning of Rule 13d-3 of the Securities
Exchange Act of 1934, as amended) of securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation’s outstanding securities. 

E. Corporation shall mean Fender Musical Instruments Corporation, a Delaware corporation, and any successor
corporation to all or substantially all of the assets of voting stock of Fender Musical Instruments Corporation which shall by appropriate action adopt the plan. 
 F. Grant Date shall have the meaning assigned to such term in Paragraph 1.1. 
 G. 1933 Act shall mean the Securities Act of 1933, as amended. 
 H. Award shall have the meaning assigned to such term in Paragraph 1.1. 
 I. Grantee shall mean the person to whom the Award is granted under the Plan. 
 J. Permitted Transfer shall mean any sale, assignment, transfer, gift, pledge, encumbrance, hypothecation, grant or security interest or any other voluntary or involuntary disposition
of Purchased Shares to a Permitted Transferee (as defined in the Stockholders Agreement). 

  
 7 

 K. Plan shall mean the Corporation’s 2007 Equity Compensation
Plan, as amended from time to time. 
 L. Plan Administrator shall mean either the Board or a committee of
the Board acting in its capacity as administrator of the Plan. 
 M. Shares shall have the meaning assigned
to such term in Paragraph 2.1. 
 N. SEC shall mean the Securities and Exchange
Commission. 
 O. Service shall mean the Grantee’s performance of services for the Corporation (or any
Subsidiary) in the capacity of an employee, subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance, a non-employee member of the board of directors or an independent
consultant. 
 P. Subsidiary shall mean any entity (other than the corporation) in an unbroken chain of
entities beginning with the corporation, provided each entity (other than the last entity) in the unbroken chain owns, at the time of the determination, fifty percent (50%) or more of the total combined voting power in one of the other entities
in such chain. 
 Q. Vest or Vesting means that point in time when some portion or all of this Award is no longer
subject to a substantial risk of forfeiture as provided in the Vesting Schedule. A substantial risk of forfeiture exists so long as the Award (or portion thereof) is conditioned on the Participant’s performance of substantial future services or
the occurrence of a condition related to a purpose of the Award and the possibility of forfeiture is substantial. 
 R.
Vesting Schedule shall mean the vesting schedule specified in this Agreement pursuant to which the Restricted Stock shall Vest. 

  
 8

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