Document:

Exhibit 10.2

 

 

 

SECOND AMENDED AND RESTATED RECEIVABLES PURCHASE
AGREEMENT

 

dated as of February 15, 2018

 

among

 

COOPER RECEIVABLES LLC,

as Seller

 

COOPER TIRE & RUBBER COMPANY,

as Servicer

 

THE VARIOUS PURCHASER GROUPS FROM TIME TO TIME
PARTY HERETO,

 

THE FINANCIAL INSTITUTION FROM TIME TO TIME
PARTY HERETO

as LC Participants

 

and

 

PNC BANK, NATIONAL ASSOCIATION,

as Administrator and LC Bank

 

 

 

     

     

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
		ARTICLE I	 
		AMOUNTS AND TERMS OF THE PURCHASES	2
	 	 	 
	Section 1.1	Purchase Facility	2
	 	 	 
	Section 1.2	Making Purchases	3
	 	 	 
	Section 1.3	Purchased Interest Computation	5
	 	 	 
	Section 1.4	Settlement Procedures	5
	 	 	 
	Section 1.5	Fees	10
	 	 	 
	Section 1.6	Payments and Computations, Etc.	10
	 	 	 
	Section 1.7	Increased Costs	11
	 	 	 
	Section 1.8	Requirements of Law	11
	 	 	 
	Section 1.9	Funding Losses	12
	 	 	 
	Section 1.10	Taxes	12
	 	 	 
	Section 1.11	Inability to Determine Euro-Rate or LMIR	13
	 	 	 
	Section 1.12	Letters of Credit	13
	 	 	 
	Section 1.13	Issuance of Letters of Credit	14
	 	 	 
	Section 1.14	Requirements For Issuance of Letters of Credit	15
	 	 	 
	Section 1.15	Disbursements, Reimbursement	15
	 	 	 
	Section 1.16	Repayment of Participation Advances	16
	 	 	 
	Section 1.17	Documentation	16
	 	 	 
	Section 1.18	Determination to Honor Drawing Request	17
	 	 	 
	Section 1.19	Nature of Participation and Reimbursement Obligations	17
	 	 	 
	Section 1.20	Indemnity	18
	 	 	 
	Section 1.21	Liability for Acts and Omissions	19
	 	 	 
	Section 1.22	Extension of Termination Date	20
	 	 	 
		ARTICLE II	 
		REPRESENTATIONS AND WARRANTIES; COVENANTS; TERMINATION EVENTS	20
	 	 	 
	Section 2.1	Representations and Warranties; Covenants	20
	 	 	 
	Section 2.2	Termination Events	21

 

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Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
		ARTICLE III	 
		INDEMNIFICATION	21
	 	 	 
	Section 3.1	Indemnities by the Seller	21
	 	 	 
	Section 3.2	Indemnities by the Servicer	22
	 	 	 
		ARTICLE IV	 
	 	ADMINISTRATION AND COLLECTIONS	23
	 	 	 
	Section 4.1	Appointment of the Servicer	23
	 	 	 
	Section 4.2	Duties of the Servicer	24
	 	 	 
	Section 4.3	Lock-Box Account Arrangements	25
	 	 	 
	Section 4.4	Enforcement Rights	25
	 	 	 
	Section 4.5	Responsibilities of the Seller	26
	 	 	 
	Section 4.6	Servicing Fee	26
	 	 	 
		ARTICLE V	 
	 	THE AGENTS	27
	 	 	 
	Section 5.1	Appointment and Authorization	27
	 	 	 
	Section 5.2	Delegation of Duties	28
	 	 	 
	Section 5.3	Exculpatory Provisions	28
	 	 	 
	Section 5.4	Reliance by Agents	28
	 	 	 
	Section 5.5	Notice of Termination Events	29
	 	 	 
	Section 5.6	Non-Reliance on Administrator, Purchaser Agents and Other Purchasers	30
	 	 	 
	Section 5.7	Administrators and Affiliates	30
	 	 	 
	Section 5.8	Indemnification	30
	 	 	 
	Section 5.9	Successor Administrator	31
	 	 	 
	 	ARTICLE VI	
	 	MISCELLANEOUS	31
	 	 	 
	Section 6.1	Amendments, Etc.	31
	 	 	 
	Section 6.2	Notices, Etc.	32
	 	 	 
	Section 6.3	Successors and Assigns; Participations; Assignments	32
	 	 	 
	Section 6.4	Costs, Expenses and Taxes	34
	 	 	 
	Section 6.5	No Proceedings; Limitation on Payments	35
	 	 	 
	Section 6.6	GOVERNING LAW AND JURISDICTION	35

 

    	 	-ii-	 

     

    

 

Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	Section 6.7	Confidentiality	36
	 	 	 
	Section 6.8	Execution in Counterparts	36
	 	 	 
	Section 6.9	Survival of Termination	36
	 	 	 
	Section 6.10	WAIVER OF JURY TRIAL	36
	 	 	 
	Section 6.11	Sharing of Recoveries	37
	 	 	 
	Section 6.12	Right of Setoff	37
	 	 	 
	Section 6.13	Entire Agreement	37
	 	 	 
	Section 6.14	Headings	37
	 	 	 
	Section 6.15	Purchaser Groups’ Liabilities	37
	 	 	 
	Section 6.16	USA Patriot Act	38

 

    	 	-iii-	 

     

    

 

	EXHIBIT I	Definitions
	 	 
	EXHIBIT II	Conditions of Purchases
	 	 
	EXHIBIT III	Representations and Warranties
	 	 
	EXHIBIT IV	Covenants
	 	 
	EXHIBIT V	Termination Events
	 	 
	SCHEDULE I	Credit and Collection Policy
	 	 
	SCHEDULE II	Lock-Box Banks and Lock-Box Accounts
	 	 
	SCHEDULE III	Trade Names
	 	 
	SCHEDULE IV	Actions and Proceedings
	 	 
	ANNEX A	Form of Information Package
	 	 
	ANNEX B	Form of Purchase Notice
	 	 
	ANNEX C	Form of Assumption Agreement
	 	 
	ANNEX D	Form of Transfer Supplement
	 	 
	ANNEX E	Form of Paydown Notice
	 	 
	ANNEX F	Form of Letter of Credit Application
	 	 
	ANNEX G	Closing Memorandum

 

    	 	-i-	 

     

    

 

This SECOND AMENDED AND
RESTATED RECEIVABLES PURCHASE AGREEMENT (as amended, restated, supplemented or otherwise modified from time to time, this “Agreement”)
is entered into as of February 15, 2018, among COOPER RECEIVABLES LLC, a Delaware limited liability company, as seller (the “Seller”),
COOPER TIRE & RUBBER COMPANY, a Delaware corporation (together with its successors and permitted assigns, “Cooper
Tire”), as initial servicer (in such capacity, together with its successors and permitted assigns in such capacity, the
“Servicer”), THE VARIOUS PURCHASERS AND PURCHASER AGENTS FROM TIME TO TIME PARTY HERETO, THE FINANCIAL INSTITUTIONS
LISTED ON THE SIGNATURE PAGES HERETO AS LC PARTICIPANTS (in such capacity, together with their successors and assigns in such capacity,
the “LC Participants”) and PNC BANK, NATIONAL ASSOCIATION, as Administrator (in such capacity, together with
its successors and assigns in such capacity, the “Administrator”) and as issuer of Letters of Credit (in such
capacity, together with its successors and assigns in such capacity, the “LC Bank”).

 

PRELIMINARY STATEMENTS.
Certain terms that are capitalized and used throughout this Agreement are defined in Exhibit I. References in the Exhibits
hereto to the “Agreement” refer to this Agreement, as amended, supplemented or otherwise modified from time to time.

 

The Seller (i) desires
to sell, transfer and assign an undivided variable percentage interest in a pool of receivables, and the Purchasers desire to acquire
such undivided variable percentage interest, as such percentage interest shall be adjusted from time to time based upon, in part,
reinvestment payments that are made by such Purchasers and (ii) may, subject to the terms and conditions hereof, request that the
LC Bank issue or cause the issuance of one or more Letters of Credit.

 

This Agreement amends and
restates in its entirety, as of the Restatement Date, that certain Amended and Restated Receivables Purchase Agreement, dated as
of September 14, 2007 (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Original
Agreement”), among the Seller, the Servicer, the Purchasers and Purchaser Agents from time to time party thereto and
the Administrator. This Agreement does not constitute a novation or replacement of the Original Agreement, but hereby ratifies
and reaffirms the Original Agreement as amended and restated by this Agreement. Notwithstanding the amendment and restatement of
the Original Agreement by this Agreement, (i) the Seller and Servicer shall continue to be liable to each Indemnified Party and
Affected Person (as such terms are defined in the Original Agreement) for fees and expenses which are accrued and unpaid under
the Original Agreement on the date hereof (collectively, the “Original Agreement Outstanding Amounts”) and all agreements
to indemnify such parties in connection with events or conditions arising or existing prior to the effective date of this Agreement
and (ii) the security interest created under the Original Agreement shall remain in full force and effect as security for such
Original Agreement Outstanding Amounts until such Original Agreement Outstanding Amounts shall have been paid in full. Upon the
effectiveness of this Agreement, PNC, as LC Bank, and PNC and each other LC Participant noted on the signature pages hereto shall
become a party to this Agreement and each reference to the Original Agreement in any other document, instrument or agreement shall
mean and be a reference to this Agreement.

 

In consideration of the
mutual agreements, provisions and covenants contained herein, the sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

 

     

     

    

 

ARTICLE
I

AMOUNTS AND TERMS OF THE PURCHASES

 

Section 1.1           Purchase
Facility.

 

(a)          On
the terms and subject to the conditions hereof, the Seller may, from time to time before the Facility Termination Date, (i) request
that the Purchasers ratably make purchases with regard to the Purchased Interest from the Seller from time to time from the date
hereof to the Facility Termination Date in accordance with Section 1.2. Each purchase requested by the Seller shall be made
ratably by the respective Purchaser Groups, and each Purchaser Group’s ratable share of each purchase shall be made and funded
(x) if such Purchaser Group contains a Conduit Purchaser and such Conduit Purchaser elects (in its sole discretion) to make and
fund such portion of such Purchase, by such Conduit Purchaser, or (y) if such Purchaser Group does not contain a Conduit Purchaser
or if the Conduit Purchaser in such Purchaser Group declines (in its sole discretion) to make or fund such portion of such Purchase,
by the Related Committed Purchaser in such Purchaser Group and (ii) request that the LC Bank issue or cause the issuance of Letters
of Credit, in each case subject to the terms hereof (each such purchase, reinvestment or issuance is referred to herein as a “Purchase”).
Subject to Section 1.4(b), concerning reinvestments, at no time will a Conduit Purchaser have any obligation to make a purchase.
Each Related Committed Purchaser severally hereby agrees, on the terms and subject to the conditions hereof, to make purchases
of and reinvestments in undivided percentage ownership interests with regard to the Purchased Interest from the Seller from time
to time from the date hereof to the Facility Termination Date, based on the applicable Purchaser Group’s Ratable Share of
each purchase requested pursuant to Section 1.2(a) (and, in the case of each Related Committed Purchaser, its Commitment
Percentage of its Purchaser Group’s Ratable Share of such Purchase) and, on the terms of and subject to the conditions of
this Agreement, the LC Bank agrees to issue Letters of Credit in return for (and each LC Participant hereby severally agrees to
make participation advances in connection with any draws under such Letters of Credit equal to such LC Participant’s Pro
Rata Share of such draws), undivided percentage ownership interests with regard to the Purchased Interest from the Seller from
time to time from the date hereof to the Facility Termination Date; provided, however, that under no circumstances
shall any Purchaser make any purchase or reinvestment or issue any Letters of Credit hereunder, as applicable, if, after giving
effect to such Purchase, the (i) aggregate outstanding amount of the Capital funded by such Purchaser, when added to all other
Capital funded by all other Purchasers in such Purchaser’s Purchaser Group would exceed (A) its Purchaser Group’s Group
Commitment (as the same may be reduced from time to time pursuant to Section 1.1(c)) minus (B) the related LC Participant’s
Pro Rata Share of the face amount of any outstanding Letters of Credit or (ii) the aggregate outstanding Capital plus the LC Participation
Amount would exceed the Purchase Limit.

 

The Seller may, subject to
the requirements and conditions herein, use the proceeds of any purchase by the Purchasers, hereunder, to satisfy its Reimbursement
Obligation to the LC Bank and the LC Participants (ratably, based on the outstanding amounts funded by the LC Bank and each such
LC Participant) pursuant to Section 1.15 below.

 

(b)          [Reserved].

 

    	 	-2-	 

     

    

 

(c)          The
Seller may, upon 60 days’ written notice to the Administrator and each Purchaser Agent, reduce the unfunded portion of the
Purchase Limit in whole or in part (but not below the amount which would cause the Group Capital of any Purchaser Group to exceed
its Group Commitment (after giving effect to such reduction)); provided that each partial reduction shall be in the amount
of at least $5,000,000, or an integral multiple of $1,000,000 in excess thereof and the Purchase Limit shall in no event be reduced
below $20,000,000. Each reduction in the Commitments hereunder shall be made ratably among the Purchasers in accordance with their
respective pro rata shares. The Administrator shall promptly advise the Purchaser Agents of any notice received by it pursuant
to this Section 1.1(c); it being understood that (in addition to and without limiting any other requirements for termination,
prepayment and/or the funding of the LC Collateral Account hereunder) no such termination or reduction shall be effective unless
and until (i) in the case of a termination, the amount on deposit in the LC Collateral Account is at least equal to the then outstanding
LC Participation Amount plus the LC Fee Expectation and (ii) in the case of a partial reduction, the amount on deposit in the LC
Collateral Account is at least equal to the positive difference between the then outstanding LC Participation Amount and the Purchase
Limit as so reduced by such partial reduction.

 

Section 1.2           Making
Purchases. (a) Each Funded Purchase (but not reinvestment) of undivided percentage ownership interests with regard to the Purchased
Interest hereunder may be made on any day upon the Seller’s irrevocable written notice in the form of Annex B (each,
a “Purchase Notice”) delivered to the Administrator and each Purchaser Agent in accordance with Section 6.2
not later than (i) 2:00 p.m. New York City time on the date that is one Business Day prior to the requested Purchase Date or (ii)
solely in the case of a Funded Purchase in an amount less than or equal to $50,000,000, 12:00 p.m. New York City time on the requested
Purchase Date, in either case, which notice shall specify: (A) in the case of a Funded Purchase, the amount requested to be paid
to the Seller (such amount, which shall not be less than $300,000 (or such lesser amount as agreed to by the Administrator and
the Majority Purchaser Agents) and shall be in integral multiples of $100,000, with respect to each Purchaser Group, (B) the date
of such Funded Purchase (which shall be a Business Day) and (C) the pro forma calculation of the Purchased Interest after giving
effect to the increase in the Aggregate Capital.

 

(b)          On
the date of each Funded Purchase (but not reinvestment, issuance of a Letter of Credit of undivided percentage ownership interests
with regard to the Purchased Interest hereunder, each applicable Conduit Purchaser or Related Committed Purchaser, as the case
may be, shall, upon satisfaction of the applicable conditions set forth in Exhibit II, make available to the Seller in same
day funds, at such account as may be so designated in writing by the Seller to the Administrator and each Purchaser Agent from
time to time an amount equal to the portion of Capital relating to the undivided percentage ownership interest then being funded
by such Purchaser.

 

(c)          Effective
on the date of each Funded Purchase or other Purchase pursuant to this Section 1.2 and each reinvestment pursuant to Section
1.4, the Seller hereby sells and assigns to the Administrator for the benefit of the Purchasers (ratably, based on the sum
of Capital plus the LC Participation Amount outstanding at such time for each such Purchaser’s Capital) an undivided percentage
ownership interest in: (i) each Pool Receivable then existing, (ii) all Related Security with respect to such Pool Receivables,
and (iii) all Collections with respect to, and other proceeds of, such Pool Receivables and Related Security.

 

    	 	-3-	 

     

    

 

(d)          To
secure all of the Seller’s obligations (monetary or otherwise) under this Agreement and the other Transaction Documents to
which it is a party, whether now or hereafter existing or arising, due or to become due, direct or indirect, absolute or contingent,
the Seller hereby grants to the Administrator, for the benefit of the Purchasers, a security interest in all of the Seller’s
right, title and interest (including any undivided interest of the Seller) in, to and under all of the following, whether now or
hereafter owned, existing or arising: (i) all Pool Receivables, (ii) all Related Security with respect to such Pool Receivables,
(iii) all Collections with respect to such Pool Receivables, (iv) (A) the Lock-Box Accounts and all amounts on deposit therein,
and all certificates and instruments, if any, from time to time evidencing such Lock-Box Accounts and amounts on deposit therein
and (B) the LC Collateral Account and all amounts on deposit therein, and all certificates and instruments, if any, from time to
time evidencing such LC Collateral Account and amounts on deposit therein, (v) all rights (but none of the obligations) of the
Seller under the Sale Agreement, (vi) all proceeds of, and all amounts received or receivable under any or all of, the foregoing
and (vii) all of its other property (collectively, the “Pool Assets”). The Seller hereby authorizes the Administrator
to file financing statements describing as the collateral covered thereby as "all of the debtor's personal property or assets"
or words to that effect, notwithstanding that such wording may be broader in scope than the collateral described in this Agreement.
The Administrator, for the benefit of the Purchasers, shall have, with respect to the Pool Assets, and in addition to all the other
rights and remedies available to the Administrator and the Purchasers, all the rights and remedies of a secured party under any
applicable UCC. The Seller hereby acknowledges and agrees that pursuant to the Original Agreement, the Seller granted to the Administrator
a security interest in all of the Seller’s right, title and interest in, to and under the Pool Assets (as defined in the
Prior Agreement). The Seller hereby confirms such security interest and acknowledges and agrees that such security interest is
continuing and is supplemented and restated by the security interest granted by the Seller pursuant to this Section 1.2(d).

 

(e)          [Reserved].

 

(f)           The
Seller may, with the written consent of the Administrator and each Purchaser Agent (and, in the case of a new related LC Participant,
the LC Bank), add additional Persons as Purchasers (either to an existing Purchaser Group or by creating new Purchaser Groups)
or cause an existing Related Committed Purchaser or related LC Participant to increase its Commitment in connection with a corresponding
increase in the Purchase Limit; provided, however, that the Commitment of any Related Committed Purchaser or related
LC Participant may only be increased with the prior written consent of such Purchaser. Each new Conduit Purchaser, Related Committed
Purchaser or related LC Participant (or Purchaser Group) shall become a party hereto, by executing and delivering to the Administrator
and the Seller, an Assumption Agreement in the form of Annex C hereto (which Assumption Agreement shall, in the case of
any new Conduit Purchaser, Related Committed Purchaser or related LC Participant, be executed by each Person in such new Purchaser’s
Purchaser Group).

 

    	 	-4-	 

     

    

 

(g)          Each
Related Committed Purchaser’s and related LC Participant’s obligations hereunder shall be several, such that the failure
of any Related Committed Purchaser or related LC Participant to make a payment in connection with any purchase hereunder, or drawing
under a Letter of Credit hereunder, as the case may be, shall not relieve any other Related Committed Purchaser or related LC Participant
of its obligation hereunder to make payment for any Funded Purchase or such drawing. Further, in the event any Related Committed
Purchaser or related LC Participant fails to satisfy its obligation to make a purchase or payment with respect to such drawing
as required hereunder, upon receipt of notice of such failure from the Administrator (or any relevant Purchaser Agent), subject
to the limitations set forth herein, the non-defaulting Related Committed Purchasers or related LC Participants in such defaulting
Related Committed Purchaser’s or related LC Participant’s Purchaser Group shall fund the defaulting Related Committed
Purchaser’s or related LC Participant’s Commitment Percentage of the related Purchase or drawing pro rata in
proportion to their relative Commitment Percentages (determined without regard to the Commitment Percentage of the defaulting Related
Committed Purchaser or related LC Participant; it being understood that a defaulting Related Committed Purchaser’s
or related LC Participant’s Commitment Percentage of any Purchase or drawing shall be first put to the Related Committed
Purchasers or related LC Participants in such defaulting Related Committed Purchaser’s or related LC Participant’s
Purchaser Group and thereafter if there are no other Related Committed Purchasers or related LC Participants in such Purchaser
Group or if such other Related Committed Purchasers or related LC Participants are also defaulting Related Committed Purchasers
or related LC Participants, then such defaulting Related Committed Purchaser’s or related LC Participant’s Commitment
Percentage of such Purchase or drawing shall be put to each other Purchaser Group ratably and applied in accordance with this paragraph
(g)). Notwithstanding anything in this paragraph (g) to the contrary, no Related Committed Purchaser or related LC Participant
shall be required to make a Purchase or payment with respect to such drawing pursuant to this paragraph for an amount which would
cause the aggregate Capital of such Related Committed Purchaser or Pro Rata Share of the face amount of any outstanding Letter
of Credit of such related LC Participant (after giving effect to such Purchase or payment with respect to such drawing) to exceed
its Commitment.

 

Section 1.3           Purchased
Interest Computation. The Purchased Interest shall be initially computed on the Restatement Date. Thereafter, until the Facility
Termination Date, such Purchased Interest shall be automatically recomputed (or deemed to be recomputed) on each Business Day other
than a Termination Day. From and after the occurrence of any Termination Day, the Purchased Interest shall (until the event(s)
giving rise to such Termination Day are satisfied or are waived by the Administrator in accordance with Section 2.2)
be deemed to be 100%. The Purchased Interest shall become zero on the Final Payout Date.

 

Section 1.4           Settlement
Procedures.

 

(a)          The
collection of the Pool Receivables shall be administered by the Servicer in accordance with this Agreement. The Seller shall provide
to the Servicer on a timely basis all information needed for such administration, including notice of the occurrence of any Termination
Day and current computations of the Purchased Interest.

 

(b)          The
Servicer shall, on each day on which Collections of Pool Receivables are received (or deemed received) by the Seller or the Servicer:

 

(i)           set
aside and hold in trust (and shall, at the request of the Administrator, segregate in a separate account approved by the Administrator)
for the benefit of each Purchaser Group, out of such Collections, first, an amount equal to the Aggregate Discount accrued through
such day for each Portion of Capital and not previously set aside, second, an amount equal to the fees set forth in each Purchaser
Group Fee Letter accrued and unpaid through such day, and third, to the extent funds are available therefor, an amount equal to
the aggregate of each Purchasers’ Share of the Servicing Fee accrued through such day and not previously set aside,

 

    	 	-5-	 

     

    

 

(ii)          subject
to Section 1.4(f), if such day is not a Termination Day, remit to the Seller, ratably, on behalf of each Purchaser Group,
the remainder of such Collections. Such remainder shall, to the extent representing a return on the Aggregate Capital, ratably,
according to each Purchaser’s Capital, be automatically reinvested in Pool Receivables, and in the Related Security, Collections
and other proceeds with respect thereto; provided, however, that if the Purchased Interest would exceed 100%, then
the Servicer shall not reinvest, but shall set aside and hold in trust for the benefit of the Purchasers (and shall, at the request
of the Administrator, segregate in a separate account approved by the Administrator) a portion of such Collections that, together
with the other Collections set aside pursuant to this paragraph, shall equal the amount necessary to reduce the Purchased Interest
to 100%, which amount shall be deposited ratably to each Purchaser Agent’s account (for the benefit of its related Purchasers)
on the next Settlement Date in accordance with Section 1.4(c); provided, further, that (x) in the case
of any Purchaser that is a Conduit Purchaser, if such Purchaser has provided notice (a “Declining Notice”) to
its Purchaser Agent, the Administrator, and the Servicer that such Purchaser (a “Declining Conduit Purchaser”)
no longer wishes Collections with respect to any Portion of Capital funded or maintained by such Purchaser to be reinvested pursuant
to this clause (ii), and (y) in the case of any Purchaser that has provided notice (an “Exiting Notice”)
to its Purchaser Agent of either its refusal, pursuant to Section 1.22, to extend its Commitment hereunder (an “Exiting
Purchaser”) then in either case (x) or (y), above, such Collections shall not be reinvested and shall instead be held
in trust for the benefit of such Purchaser and applied in accordance with clause (iii), below.

 

(iii)         if
such day is a Termination Day (or any day following the provision of a Declining Notice or an Exiting Notice), set aside, segregate
and hold in trust (and shall, at the request of the Administrator, segregate in a separate account approved by the Administrator)
for the benefit of each Purchaser Group the entire remainder of such Collections (or in the case of a Declining Conduit Purchaser
or an Exiting Purchaser an amount equal to such Purchaser’s ratable share of such Collections based on its Capital; provided,
that solely for the purpose of determining such Purchaser’s ratable share of such Collections, such Purchaser’s Capital
shall be deemed to remain constant from the date of the provision of a Declining Notice or an Exiting Notice, as the case may be,
until the date such Purchaser’s Capital has been paid in full; it being understood that if such day is also a Termination
Day, such Declining Conduit Purchaser’s or Exiting Purchaser’s Capital shall be recalculated taking into account amounts
received by such Purchaser in respect of this parenthetical and thereafter Collections shall be set aside for such Purchaser ratably
in respect of its Capital (as recalculated)); provided, that if amounts are set aside and held in trust on any Termination
Day of the type described in clause (a) of the definition of “Termination Day” (or any day following the provision
of a Declining Notice or an Exiting Notice) and, thereafter, the conditions set forth in Section 2 of Exhibit II
are satisfied or waived by the Administrator and the Majority Purchaser Agents (or in the case of a Declining Notice or an Exiting
Notice, such Declining Notice or Exiting Notice, as the case may be, has been revoked by the related Declining Conduit Purchaser
or Exiting Purchaser, respectively and written notice thereof has been provided to the Administrator, the related Purchaser Agent
and the Servicer), such previously set-aside amounts shall, to the extent representing a return on Aggregate Capital (or the Capital
of the Declining Conduit Purchaser or Exiting Purchaser, as the case may be) and ratably in accordance with each Purchaser’s
Capital, be reinvested in accordance with clause (ii) on the day of such subsequent satisfaction or waiver of conditions
or revocation of Declining Notice or Exiting Notice, as the case may be, and

 

    	 	-6-	 

     

    

 

(iv)         release
to the Seller (subject to Section 1.4(f)) for its own account any Collections in excess, if any, of: (x) amounts required
to be reinvested in accordance with clause (ii) or the proviso to clause (iii) plus (y) the amounts that are required
to be set aside pursuant to clause (i), the proviso to clause (ii) and clause (iii) plus (z) the Seller’s
Share of the Servicing Fee accrued and unpaid through such day and all reasonable and appropriate out-of-pocket costs and expenses
of the Servicer for servicing, collecting and administering the Pool Receivables.

 

(c)          The
Servicer shall, in accordance with the priorities set forth in Section 1.4(d), below, deposit into each applicable Purchaser
Agent’s account (or such other account designated by such applicable Purchaser or its Purchaser Agent), on each Settlement
Date (for any Portion of Investment), Collections held for each Purchaser with respect to such Purchaser’s Portion(s) of
Capital pursuant to clause (b)(i) or (f), plus the amount of Collections then held for the related Purchasers pursuant
to clauses (b)(ii) and (iii) of Section 1.4; provided, that if Cooper Tire or an Affiliate thereof
is the Servicer, such day is not a Termination Day and the Administrator has not notified Cooper Tire (or such Affiliate) that
such right is revoked, Cooper Tire (or such Affiliate) may retain the portion of the Collections set aside pursuant to clause
(b)(i) that represents the aggregate of each Purchasers’ Share of the Servicing Fee.

 

(d)          The
Servicer shall distribute the amounts described (and at the times set forth) in Section 1.4(c), as follows:

 

(i)           if
such distribution occurs on a day that is not a Termination Day and the Purchased Interest does not exceed 100%, first to
each Purchaser Agent ratably according to the Discount accrued during such Yield Period (for the benefit of the relevant Purchasers
within such Purchaser Agent’s Purchaser Group) in payment in full of all accrued Discount and Fees (other than Servicing
Fees) with respect to each Portion of Capital maintained by such Purchasers; it being understood that each Purchaser Agent
shall distribute such amounts to the Purchasers within its Purchaser Group ratably according to Discount, and second, if
the Servicer has set aside amounts in respect of the Servicing Fee pursuant to clause (b)(i) and has not retained such amounts
pursuant to clause (c), to the Servicer’s own account (payable in arrears on each Settlement Date) in payment in full
of the aggregate of the Purchasers’ Share of accrued Servicing Fees so set aside, and

 

    	 	-7-	 

     

    

 

(ii)          if
such distribution occurs on a Termination Day or on a day when the Purchased Interest exceeds 100%, first if Cooper Tire
or an Affiliate thereof is not the Servicer, to the Servicer’s own account in payment in full of the Purchasers’ Share
of all accrued Servicing Fees, second to each Purchaser Agent ratably (based on the aggregate accrued and unpaid Discount
and Fees (other than Servicing Fees) payable to all Purchasers at such time) (for the benefit of the relevant Purchasers within
such Purchaser Agent’s Purchaser Group) in payment in full of all accrued Discount with respect to each Portion of Capital
funded or maintained by the Purchasers within such Purchaser Agent’s Purchaser Group, third to each Purchaser Agent
ratably according to the aggregate of the Capital of each Purchaser in each such Purchaser Agent’s Purchaser Group (for the
benefit of the relevant Purchasers within such Purchaser Agent’s Purchaser Group) in payment in full of each Purchaser’s
Capital (or, if such day is not a Termination Day, the amount necessary to reduce the Purchased Interest to 100%) (determined as
if such Collections had been applied to reduce the Aggregate Capital); it being understood that each Purchaser Agent shall
distribute the amounts described in the first and second clauses of this Section 1.4(d)(ii) to the Purchasers within its
Purchaser Group ratably according to Discount and Capital, respectively, fourth, to the LC Collateral Account for the benefit
of the LC Bank and the LC Participants (x) the amount necessary to cash collateralize the LC Participation Amount until the amount
of cash collateral held in such LC Collateral Account (other than amount representing LC Fee Expectation) equals 100% of the aggregate
outstanding amount of the LC Participation Amount) and (y) if such day is a Termination Day of the type described in clause (b)
of the definition thereof or a Termination Event is continuing, an amount equal to the LC Fee Expectation at such time (or such
portion thereof not currently on deposit in the LC Collateral Account); fifth, if the Aggregate Capital and accrued Aggregate
Discount with respect to each Portion of Capital for all Purchaser Groups have been reduced to zero, and the Purchasers’
Share of all accrued Servicing Fees payable to the Servicer (if other than Cooper Tire or an Affiliate thereof) have been paid
in full, to each Purchaser Group ratably, based on the amounts payable to each (for the benefit of the Purchasers within such Purchaser
Group), the Administrator and any other Indemnified Party or Affected Person in payment in full of any other amounts owed thereto
by the Seller or Servicer hereunder and, sixth, to the Servicer’s own account (if the Servicer is Cooper Tire or an
Affiliate thereof) in payment in full of the aggregate of the Purchasers’ Share of all accrued Servicing Fees.

 

After the Aggregate Capital, Aggregate Discount,
fees payable pursuant to each Purchaser Group Fee Letter and Servicing Fees with respect to the Purchased Interest, and any other
amounts payable by the Seller and the Servicer to each Purchaser Group, the Administrator or any other Indemnified Party or Affected
Person hereunder, have been paid in full, and (on and after a Termination Day) after an amount equal to 100% of the LC Participation
Amount and the LC Fee Expectation has been deposited in the LC Collateral Account, all additional Collections with respect to the
Purchased Interest shall be paid to the Seller for its own account.

 

(e)          For
the purposes of this Section 1.4:

 

(i)           if
on any day the Outstanding Balance of any Pool Receivable is reduced or adjusted as a result of any defective, rejected, returned,
repossessed or foreclosed goods or services, or any revision, cancellation, allowance, rebate, discount or other adjustment made
by the Seller or any Affiliate of the Seller, or the Servicer or any Affiliate of the Servicer, or any setoff or dispute between
the Seller or any Affiliate of the Seller, or the Servicer or any Affiliate of the Servicer and an Obligor, the Seller shall be
deemed to have received on such day a Collection of such Pool Receivable in the amount of such reduction or adjustment and shall
immediately pay any and all such amounts in respect thereof to a Lock-Box Account for the benefit of the Purchasers and their assigns
and for application pursuant to Section 1.4;

 

    	 	-8-	 

     

    

 

(ii)          if
on any day any of the representations or warranties in Sections 1(j) or 3(a) of Exhibit III is not true with
respect to any Pool Receivable, the Seller shall be deemed to have received on such day a Collection of such Pool Receivable in
full and shall immediately pay any and all such amounts to a Lock-Box Account (or as otherwise directed by the Administrator at
such time) for the benefit of the Purchasers and their assigns and for application pursuant to this Section 1.4 (Collections
deemed to have been received pursuant to clause (i) or (ii) of this paragraph (e) are hereinafter sometimes
referred to as “Deemed Collections”);

 

(iii)         except
as otherwise required by applicable law or the relevant Contract, all Collections received from an Obligor of any Receivable shall
be applied to the Receivables of such Obligor in the order of the age of such Receivables, starting with the oldest such Receivable,
unless such Obligor designates in writing its payment for application to specific Receivables; and

 

(iv)         if
and to the extent the Administrator, any Purchaser Agent or any Purchaser shall be required for any reason to pay over to an Obligor
(or any trustee, receiver, custodian or similar official in any Insolvency Proceeding) any amount received by it hereunder, such
amount shall be deemed not to have been so received by such Person but rather to have been retained by the Seller and, accordingly,
such Person shall have a claim against the Seller for such amount, payable when and to the extent that any distribution from or
on behalf of such Obligor is made in respect thereof.

 

(f)           If
at any time the Seller shall wish to cause the reduction of Aggregate Capital (but not to commence the liquidation, or reduction
to zero, of the entire Aggregate Capital) the Seller may do so as follows:

 

(i)           the
Seller shall give the Administrator, each Purchaser Agent and the Servicer written notice in the form of Annex E (each,
a “Paydown Notice”) not later than 2:00 p.m. New York City time on the date that is one Business Day prior to
the date of such reduction for any reduction of the Aggregate Capital, and each such Paydown Notice shall include, among other
things, the amount of such proposed reduction and the proposed date on which such reduction will commence;

 

(ii)          on
the proposed date of commencement of such reduction and on each day thereafter, the Servicer shall cause Collections not to be
reinvested until the amount thereof not so reinvested shall equal the desired amount of reduction; and

 

    	 	-9-	 

     

    

 

(iii)         the
Servicer shall hold such Collections in trust for the benefit of each Purchaser ratably according to its Capital, for payment to
each such Purchaser (or its related Purchaser Agent for the benefit of such Purchaser) on the next Settlement Date (or such other
date as agreed to by the Administrator) with respect to any Portions of Capital maintained by such Purchaser immediately following
the related current Yield Period, and the Aggregate Capital (together with the Capital of any related Purchaser) shall be deemed
reduced in the amount to be paid to such Purchaser (or its related Purchaser Agent for the benefit of such Purchaser) only when
in fact finally so paid;

 

provided, that:

 

(A)         the
amount of any such reduction shall be not less than $100,000 for each Purchaser Group and shall be an integral multiple of $100,000;
and

 

(B)         with
respect to any Portion of Capital, the Seller shall choose a reduction amount, and the date of commencement thereof, so that to
the extent practicable such reduction shall commence and conclude in the same Yield Period.

 

Section 1.5           Fees.
The Seller shall pay to each Purchaser Agent for the benefit of the Purchasers and Liquidity Providers in the related Purchaser
Group in accordance with the provisions set forth in Section 1.4(d) certain fees in the amounts and on the dates set forth
in one or more fee letter agreements, dated the Restatement Date (or dated the date any such Purchaser and member of its related
Purchaser Group become a party hereto pursuant to an Assumption Agreement, a Transfer Supplement or otherwise), among the Servicer,
the Seller, and the applicable Purchaser Agent, respectively (as any such fee letter agreement may be amended, restated, supplemented
or otherwise modified from time to time, each, a “Purchaser Group Fee Letter”) and each of the Purchaser Group
Fee Letters may be referred to collectively as, the “Fee Letters”).

 

Section 1.6           Payments
and Computations, Etc.

 

(a)          All
amounts to be paid or deposited by the Seller or the Servicer hereunder shall be made without reduction for offset or counterclaim
and shall be paid or deposited no later than 2:00 p.m. (New York City time) on the day when due in same day funds to the account
for each Purchaser maintained by the applicable Purchaser Agent (or such other account as may be designated from time to time by
such Purchaser Agent to the Seller and the Servicer). All amounts received after 2:00 p.m. (New York City time) will be deemed
to have been received on the next Business Day.

 

(b)          The
Seller or the Servicer, as the case may be, shall, to the extent permitted by law, pay interest on any amount not paid or deposited
by the Seller or the Servicer, as the case may be, when due hereunder, at an interest rate equal to 2.0% per annum above the Base
Rate, payable on demand.

 

(c)          All
computations of interest under clause (b) and all computations of Discount, Fees and other amounts hereunder shall be made
on the basis of a year of 360 (or 365 or 366, as applicable, with respect to Discount or other amounts calculated by reference
to the Base Rate) days for the actual number of days elapsed. Whenever any payment or deposit to be made hereunder shall be due
on a day other than a Business Day, such payment or deposit shall be made on the next Business Day and such extension of time shall
be included in the computation of such payment or deposit.

 

    	 	-10-	 

     

    

 

Section 1.7           Increased
Costs. (a) If, after the date hereof, the Administrator, any Purchaser, Purchaser Agent, Liquidity Provider or Program Support
Provider or any of their respective Affiliates (each an “Affected Person”) determines that any Change in Law
affects or would affect the amount of capital required or expected to be maintained by such Affected Person, and such Affected
Person determines that the amount of such capital is increased by or based upon the existence of any commitment to make purchases
of (or otherwise to maintain the investment in) Pool Receivables or issue any Letter of Credit or any related liquidity facility,
credit enhancement facility and other commitments of the same type, then, upon demand by such Affected Person (with a copy to the
Administrator), the Seller shall promptly pay such Affected Person, from time to time as specified by such Affected Person, additional
amounts sufficient to compensate such Affected Person in the light of such circumstances, to the extent that such Affected Person
determines such increase in capital to be allocable to the existence of any of such commitments.

 

(b)          If
due to any Change in Law, there shall be any increase after the Restatement Date in the cost to any Affected Person of agreeing
to purchase or purchasing, or maintaining the ownership of, the Purchased Interest (or its portion thereof) in respect of which
Discount is computed by reference to the Euro-Rate or LMIR, then, upon demand by such Affected Person, the Seller shall promptly
pay to such Affected Person, from time to time as specified by such Affected Person, additional amounts sufficient to compensate
such Affected Person for such increased costs.

 

(c)          A
certificate of an Affected Person setting forth the amount or amounts necessary to compensate such Affected Person or its holding
company, as the case may be, as specified in clause (a) or (b) of this Section and delivered to the Seller, shall
be conclusive absent manifest error. The Seller shall pay such Affected Person the amount shown as due on any such certificate
on the first Settlement Date occurring after the Seller’s receipt of such certificate.

 

(d)          Failure
or delay on the part of any Affected Person to demand compensation pursuant to this Section shall not constitute a waiver of such
Affected Person’s right to demand such compensation.

 

Section 1.8           Requirements
of Law. If, after the date hereof, any Change in Law:

 

(a)          does
or shall subject such Affected Person to any tax of any kind whatsoever with respect to this Agreement, any increase in the Purchased
Interest (or its portion thereof) or in the amount of Capital relating thereto, or does or shall change the basis of taxation of
payments to such Affected Person on account of Collections, Discount or any other amounts payable hereunder, or

 

(b)          does
or shall impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar requirement against assets
held by, or deposits or other liabilities in or for the account of, purchases, advances or loans by, or other credit extended by,
or any other acquisition of funds by, any office of such Affected Person that are not otherwise included in the determination of
the Euro-Rate or LMIR hereunder,

 

    	 	-11-	 

     

    

 

and the result of any of the foregoing is:
(A) to increase the cost to such Affected Person of agreeing to purchase or purchasing or maintaining the ownership of undivided
percentage ownership interests with regard to, or issuing any Letter of Credit in respect of, the Purchased Interest (or interests
therein) or any Portion of Capital, or (B) to reduce any amount receivable hereunder (whether directly or indirectly), then, in
any such case, upon demand by such Affected Person, the Seller shall promptly pay to such Affected Person additional amounts necessary
to compensate such Affected Person for such additional cost or reduced amount receivable. All such amounts shall be payable as
incurred.

 

Section 1.9          Funding
Losses. The Seller shall compensate each Affected Person, upon written request by such Person for all losses, expenses and
liabilities (including any interest paid by such Affected Person to lenders of funds borrowed by it to fund or maintain any Portion
of Capital hereunder at an interest rate determined by reference to the Euro-Rate or LMIR and any loss sustained by such Person
in connection with the re-employment of such funds), which such Affected Person may sustain with respect to funding or maintaining
such Portion of Capital at the Euro-Rate or LMIR if, for any reason, at the applicable request by the Seller to fund or maintain
such Portion of Capital at an interest rate determined by reference to the Euro-Rate does not occur on a date specified therefor.

 

Section 1.10         Taxes.
The Seller agrees that:

 

Any and all payments
by the Seller under this Agreement and any other Transaction Document shall be made free and clear of and without deduction for
any and all current or future taxes, stamp or other taxes, levies, imposts, deductions, charges or withholdings, and all liabilities
with respect thereto (all such taxes, levies, imposts, deductions, charges, withholdings and liabilities being hereinafter referred
to as “Taxes”). If the Seller shall be required by law to deduct any Taxes from or in respect of any sum payable
hereunder to any Purchaser, any Liquidity Provider, Program Support Provider or the Administrator, then the sum payable shall be
increased by the amount necessary to yield to such Person (after payment of all Taxes) an amount equal to the sum it would have
received had no such deductions been made.

 

Whenever any
Taxes are payable by the Seller, as promptly as possible thereafter, the Seller shall send to the Administrator for its own account
or for the account of any Purchaser or any Liquidity Provider or other Program Support Provider, as the case may be, a certified
copy of an original official receipt showing payment thereof or such other evidence of such payment as may be available to the
Seller and acceptable to the taxing authorities having jurisdiction over such Person. If the Seller fails to pay any Taxes when
due to the appropriate taxing authority or fails to remit to the Administrator the required receipts or other required documentary
evidence, the Seller shall indemnify the Administrator and/or any other Affected Person, as applicable, for any incremental taxes,
interest or penalties that may become payable by such party as a result of any such failure.

 

    	 	-12-	 

     

    

 

Section 1.11         Inability
to Determine Euro-Rate or LMIR. (a) If the Administrator (or any Purchaser Agent) determines before the first day of any Yield
Period (or solely with respect to LMIR, on any day) (which determination shall be final and conclusive) that, by reason of circumstances
affecting the interbank eurodollar market generally, (i) deposits in dollars (in the relevant amounts for such Yield Period) are
not being offered to banks in the interbank eurodollar market for such Yield Period, (ii) adequate means do not exist for ascertaining
the Euro-Rate or LMIR for such Yield Period (or portion thereof) or (iii) the Euro-Rate or LMIR does not accurately reflect the
cost to any Purchaser (as determined by the related Purchaser or the applicable Purchaser Agent) of maintaining any Portion of
Capital during such Yield Period (or portion thereof), then the Administrator shall give notice thereof to the Seller. Thereafter,
until the Administrator or such Purchaser Agent notifies the Seller that the circumstances giving rise to such suspension no longer
exist, (a) no Portion of Capital shall be funded at the Yield Rate determined by reference to the Euro-Rate or LMIR and (b) the
Discount for any outstanding Portions of Capital then funded at the Yield Rate determined by reference to the Euro-Rate or LMIR
shall, on the last day of the then current Yield Period (or solely with respect to LMIR, immediately), be converted to the Yield
Rate determined by reference to the Base Rate.

 

(b)          If,
on or before the first day of any Yield Period (or solely with respect to LMIR, on any day), the Administrator shall have been
notified by any Affected Person that such Affected Person has determined (which determination shall be final and conclusive) that
any Change in Law or compliance by such Affected Person with any Change in Law shall make it unlawful or impossible for such Affected
Person to fund or maintain any Portion of Capital at the Yield Rate and based upon the Euro-Rate or LMIR, the Administrator shall
notify the Seller thereof. Upon receipt of such notice, until the Administrator notifies the Seller that the circumstances giving
rise to such determination no longer apply, (a) no Portion of Capital shall be funded at the Yield Rate determined by reference
to the Euro-Rate or LMIR and (b) the Discount for any outstanding Portions of Capital then funded at the Yield Rate determined
by reference to the Euro-Rate or LMIR shall be converted to the Yield Rate determined by reference to the Base Rate either (i)
on the last day of the then current Yield Period (or solely with respect to LMIR, immediately) if such Affected Person may lawfully
continue to maintain such Portion of Capital at the Yield Rate determined by reference to the Euro-Rate or LMIR to such day, or
(ii) immediately, if such Affected Person may not lawfully continue to maintain such Portion of Capital at the Yield Rate determined
by reference to the Euro-Rate or LMIR to such day.

 

Section 1.12         Letters
of Credit.

 

Subject to the terms and
conditions hereof and the satisfaction of the applicable conditions set forth in Exhibit II, the LC Bank shall issue or
cause the issuance of Letters of Credit (“Letters of Credit”) on behalf of the Seller (and, if applicable, on
behalf of, or for the account of, an Originator); provided, however, that, for the avoidance of doubt, the LC Bank’s
obligation to issue a Letter of Credit shall be subject in all respects to the limitations set forth in the last sentence of the
first paragraph of Section 1.1(a). Discount shall accrue on all amounts drawn under Letters of Credit for each day on and
after the applicable Drawing Date so long as such drawn amounts shall have not been reimbursed to the LC Bank pursuant to the terms
hereof.

 

    	 	-13-	 

     

    

 

Section 1.13         Issuance
of Letters of Credit.

 

(a)          The
Seller may request the LC Bank, upon two (2) Business Days’ prior written notice submitted on or before 11:00 a.m., New York
City time, to issue a Letter of Credit by delivering to the Administrator a Letter of Credit Application (the “Letter
of Credit Application”), substantially in the form of Annex F hereto and a Purchase Notice, in the form of Annex
B hereto, in each case completed to the satisfaction of the Administrator and the LC Bank, and such other certificates, documents
and other papers and information as the Administrator may reasonably request. The Seller also has the right to give instructions
and make agreements with respect to any Letter of Credit Application and the disposition of documents, and to agree with the Administrator
upon any amendment, extension or renewal of any Letter of Credit.

 

(b)          Each
Letter of Credit shall, among other things, (i) provide for the payment of sight drafts or other written demands for payment when
presented for honor thereunder in accordance with the terms thereof and when accompanied by the documents described therein and
(ii) have an expiry date not later than the date that is twelve (12) months after such Letter of Credit’s date of issuance,
extension or renewal, as the case may be, and in no event later than the date that is twelve (12) months after the Facility Termination
Date. The terms of each Letter of Credit may include customary “evergreen” provisions providing that such Letter of
Credit’s expiry date shall automatically be extended for additional periods not to exceed twelve (12) months unless, not
less than thirty (30) days (or such longer period as may be specified in such Letter of Credit) (the “Notice Date”)
prior to the applicable expiry date, the LC Bank delivers written notice to the beneficiary thereof declining such extension; provided,
however, that if (x) any such extension would cause the expiry date of such Letter of Credit to occur after the date that
is twelve (12) months after the Facility Termination Date or (y) the LC Bank determines that any condition precedent (including,
without limitation, those set forth in Section 1.1(a) or Exhibit II) to issuing such Letter of Credit hereunder are
not satisfied (other than any such condition requiring the Seller to submit an Issuance Notice or Letter of Credit Application
in respect thereof), then the LC Bank, in the case of clause (x) above, may (or at the written direction of any LC Participant,
shall) or, in the case of clause (y) above, shall, use reasonable efforts in accordance with (and to the extent permitted
by) the terms of such Letter of Credit to prevent the extension of such expiry date (including notifying the Seller and the beneficiary
of such Letter of Credit in writing prior to the Notice Date that such expiry date will not be so extended). Each Letter of Credit
shall be subject either to the Uniform Customs and Practice for Documentary Credits (2007 Revision), International Chamber of Commerce
Publication No. 600, and any amendments or revisions thereof adhered to by the LC Bank or the International Standby Practices (ISP98-International
Chamber of Commerce Publication Number 590), and any amendments or revisions thereof adhered to by the LC Bank, as determined by
the LC Bank.

 

(c)          Immediately
upon the issuance by the LC Bank of any Letter of Credit (or any amendment to a Letter of Credit increasing the amount thereof),
the LC Bank shall be deemed to have sold and transferred to each LC Participant, and each LC Participant shall be deemed irrevocably
and unconditionally to have purchased and received from the LC Bank, without recourse or warranty, an undivided interest and participation,
to the extent of such LC Participant’s Pro Rata Share, in such Letter of Credit, each drawing made thereunder and the obligations
of the Seller hereunder with respect thereto, and any security therefor or guaranty pertaining thereto. Upon any change in the
Commitments or Pro Rata Shares of the LC Participants pursuant to this Agreement, it is hereby agreed that, with respect to all
outstanding Letters of Credit and unreimbursed drawings thereunder, there shall be an automatic adjustment to the participations
pursuant to this Section 1.13(c) to reflect the new Pro Rata Shares of the assignor and assignee LC Participant or of all
LC Participants with Commitments, as the case may be. In the event that the LC Bank makes any payment under any Letter of Credit
and the Seller shall not have reimbursed such amount in full to the LC Bank pursuant to Section 1.15(a), each LC Participant
shall be obligated to make Participation Advances with respect to such Letter of Credit in accordance with Section 1.15(b).

 

    	 	-14-	 

     

    

 

Section 1.14         Requirements
For Issuance of Letters of Credit.

 

The Seller shall authorize
and direct the LC Bank to name the Seller or any Originator as the “Applicant” or “Account Party” of each
Letter of Credit.

 

Section 1.15         Disbursements,
Reimbursement.

 

(a)          In
the event of any request for a drawing under a Letter of Credit by the beneficiary or transferee thereof, the LC Bank will promptly
notify the Administrator and the Seller of such request. Provided that it shall have received such notice, the Seller shall reimburse
(such obligation to reimburse the LC Bank shall sometimes be referred to as a “Reimbursement Obligation”) the
LC Bank prior to 12:00 p.m., New York City time on the first Business Day after the date that an amount is paid by the LC Bank
under any Letter of Credit (each such date, a “Drawing Date”) in an amount equal to the amount so paid by the
LC Bank. In the event the Seller fails to reimburse the LC Bank for the full amount of any drawing under any Letter of Credit by
12:00 p.m., New York City time, on the Drawing Date (including because the conditions precedent to a Purchase requested by the
Seller pursuant to Section 1.2 shall not have been satisfied), the LC Bank will promptly notify each LC Participant thereof. Any
notice given by the LC Bank pursuant to this Section may be oral if immediately confirmed in writing; provided that the lack of
such an immediate confirmation shall not affect the conclusiveness or binding effect of such notice.

 

(b)          Each
LC Participant shall upon any notice pursuant to clause (a) above make available to the LC Bank an amount in immediately
available funds equal to its Pro Rata Share of the amount of the drawing (a “Participation Advance”), whereupon
the LC Participants shall each be deemed to have made a Purchase in that amount. If any LC Participant so notified fails to make
available to the LC Bank the amount of such LC Participant’s Pro Rata Share of such amount by no later than 2:00 p.m., New
York City time on the Drawing Date, then interest shall accrue on such LC Participant’s obligation to make such payment,
from the Drawing Date to the date on which such LC Participant makes such payment (i) at a rate per annum equal to the Federal
Funds Rate during the first three days following the Drawing Date and (ii) at a rate per annum equal to the Base Rate on and after
the fourth day following the Drawing Date. The LC Bank will promptly give notice of the occurrence of the Drawing Date, but failure
of the LC Bank to give any such notice on the Drawing Date or in sufficient time to enable any LC Participant to effect such payment
on such date shall not relieve such LC Participant from its obligation under this clause (b). Each LC Participant’s Commitment
shall continue until the last to occur of any of the following events: (A) the LC Bank ceases to be obligated to issue or cause
to be issued Letters of Credit hereunder; (B) no Letter of Credit issued hereunder remains outstanding and uncancelled or (C) all
Persons (other than the Seller) have been fully reimbursed for all payments made under or relating to Letters of Credit.

 

    	 	-15-	 

     

    

 

Section 1.16         Repayment
of Participation Advances.

 

(a)          Upon
(and only upon) receipt by the LC Bank for its account of immediately available funds from or for the account of the Seller (i)
in reimbursement of any payment made by the LC Bank under a Letter of Credit with respect to which any LC Participant has made
a Participation Advance to the LC Bank or (ii) in payment of Discount on the Purchases made or deemed to have been made in connection
with any such draw, the LC Bank (or the Administrator on its behalf) will pay to each LC Participant, ratably (based on the outstanding
drawn amounts funded by each such LC Participant in respect of such Letter of Credit), in the same funds as those received by the
LC Bank; it being understood, that the LC Bank shall retain a ratable amount of such funds that were not the subject of
any payment in respect of such Letter of Credit by any LC Participant.

 

(b)          If
the LC Bank is required at any time to return to the Seller, or to a trustee, receiver, liquidator, custodian, or any official
in any Insolvency Proceeding, any portion of the payments made by the Seller to the LC Bank pursuant to this Agreement in reimbursement
of a payment made under the Letter of Credit or interest or fee thereon, each LC Participant shall, on demand of the LC Bank, forthwith
return to the LC Bank the amount of its Pro Rata Share of any amounts so returned by the LC Bank plus interest at the Federal Funds
Rate, from the date the payment was first made to such LC Participant through, but not including, the date the payment is returned
by such LC Participant.

 

(c)          If
any Letters of Credit are outstanding and undrawn on the Facility Termination Date, the LC Collateral Account shall be funded from
Collections (or, in the Seller’s sole discretion, by other funds available to the Seller) in an amount equal to the aggregate
undrawn face amount of such Letters of Credit plus all related fees to accrue through the stated expiration dates thereof (such
fees to accrue, as reasonably estimated by the LC Bank, the “LC Fee Expectation”).

 

Section 1.17         Documentation.

 

The Seller agrees to be
bound by the terms of the Letter of Credit Application and by the LC Bank’s interpretations of any Letter of Credit issued
for the Seller and by the LC Bank’s written regulations and customary practices relating to letters of credit, though the
LC Bank’s interpretation of such regulations and practices may be different from the Seller’s own. In the event of
a conflict between the Letter of Credit Application and this Agreement, this Agreement shall govern. The LC Bank shall not be liable
for any error, negligence and/or mistakes, whether of omission or commission, in following the Seller’s instructions or those
contained in the Letters of Credit or any modifications, amendments or supplements thereto except to the extent resulting from
the gross negligence or willful misconduct of the LC Bank. In addition to any other fees or expenses owing under the Fee Letter
or any other Transaction Document or otherwise pursuant to any Letter of Credit Application, the Seller shall pay to the LC Bank
for its own account any customary issuance, presentation, amendment and other processing fees, and other standard costs and charges,
of the LC Bank relating to letters of credit as from time to time in effect. Such customary fees shall be due and payable upon
demand and shall be nonrefundable.

 

    	 	-16-	 

     

    

 

Section 1.18         Determination
to Honor Drawing Request.

 

(a)          In
determining whether to honor any request for drawing under any Letter of Credit by the beneficiary thereof, the LC Bank shall be
responsible only to determine that the documents and certificates required to be delivered under such Letter of Credit have been
delivered and that they comply on their face with the requirements of such Letter of Credit and that any other drawing condition
appearing on the face of such Letter of Credit has been satisfied in the manner so set forth.

 

Section 1.19         Nature
of Participation and Reimbursement Obligations.

 

Each LC Participant’s
obligation in accordance with this Agreement to make Participation Advances as a result of a drawing under a Letter of Credit,
and the obligations of the Seller to reimburse the LC Bank upon a draw under a Letter of Credit, shall be absolute, unconditional
and irrevocable, and shall be performed strictly in accordance with the terms of this Article I under all circumstances, including
the following circumstances:

 

(a)          any
set-off, counterclaim, recoupment, defense or other right which such LC Participant may have against the LC Bank, the Administrator,
the Purchasers, the Purchaser Agents, the Seller or any other Person for any reason whatsoever;

 

(b)          the
failure of the Seller or any other Person to comply with the conditions set forth in this Agreement for the making of a purchase,
reinvestments, requests for Letters of Credit or otherwise, it being acknowledged that such conditions are not required for the
making of Participation Advances hereunder;

 

(c)          any
lack of validity or enforceability of any Letter of Credit or any set-off, counterclaim, recoupment, defense or other right which
Seller or any Originator on behalf of which a Letter of Credit has been issued may have against the LC Bank, the Administrator,
any Purchaser, or any other Person for any reason whatsoever;

 

(d)          any
claim of breach of warranty that might be made by the Seller, the LC Bank or any LC Participant against the beneficiary of a Letter
of Credit, or the existence of any claim, set-off, defense or other right which the Seller, the LC Bank or any LC Participant may
have at any time against a beneficiary, any successor beneficiary or any transferee of any Letter of Credit or the proceeds thereof
(or any Persons for whom any such transferee may be acting), the LC Bank, any LC Participant, the Purchasers or Purchaser Agents
or any other Person, whether in connection with this Agreement, the transactions contemplated herein or any unrelated transaction
(including any underlying transaction between the Seller or any Subsidiaries of the Seller or any Affiliates of the Seller and
the beneficiary for which any Letter of Credit was procured);

 

(e)          the
lack of power or authority of any signer of, or lack of validity, sufficiency, accuracy, enforceability or genuineness of, any
draft, demand, instrument, certificate or other document presented under any Letter of Credit, or any such draft, demand, instrument,
certificate or other document proving to be forged, fraudulent, invalid, defective or insufficient in any respect (other than any
defect or insufficiency appearing on the face of such document) or any statement therein being untrue or inaccurate in any respect,
even if the Administrator or the LC Bank has been notified thereof;

 

    	 	-17-	 

     

    

 

(f)           payment
by the LC Bank under any Letter of Credit against presentation of a demand, draft or certificate or other document which does not
comply with the terms of such Letter of Credit other than as a result of the gross negligence or willful misconduct of the LC Bank;

 

(g)          the
solvency of, or any acts or omissions by, any beneficiary of any Letter of Credit, or any other Person having a role in any transaction
or obligation relating to a Letter of Credit, or the existence, nature, quality, quantity, condition, value or other characteristic
of any property or services relating to a Letter of Credit;

 

(h)          any
failure by the LC Bank or any of the LC Bank’s Affiliates to issue any Letter of Credit in the form requested by the Seller,
unless the LC Bank has received written notice from the Seller of such failure within three Business Days after the LC Bank shall
have furnished the Seller a copy of such Letter of Credit and such error is material and no drawing has been made thereon prior
to receipt of such notice;

 

(i)           any
Material Adverse Effect on the Seller, any Originator or any Affiliates thereof;

 

(j)           any
breach of this Agreement or any Transaction Document by any party thereto;

 

(k)          the
occurrence or continuance of an Insolvency Proceeding with respect to the Seller, any Originator or any Affiliate thereof;

 

(l)           the
fact that a Termination Event or an Unmatured Termination Event shall have occurred and be continuing;

 

(m)         the
fact that this Agreement or the obligations of Seller or Servicer hereunder shall have been terminated; and

 

(n)          any
other circumstance or happening whatsoever, whether or not similar to any of the foregoing.

 

Section 1.20         Indemnity.

 

In addition to other amounts
payable hereunder, the Seller hereby agrees to protect, indemnify, pay and save harmless the Administrator, the LC Bank, each LC
Participant and any of the LC Bank’s Affiliates that have issued a Letter of Credit from and against any and all claims,
demands, liabilities, damages, taxes, penalties, interest, judgments, losses, costs, charges and expenses (including Attorney Costs)
which the Administrator, the LC Bank, any LC Participant or any of their respective Affiliates may incur or be subject to as a
consequence, direct or indirect, of the issuance of any Letter of Credit, other than as a result of (a) the gross negligence or
willful misconduct of the party to be indemnified as determined by a final judgment of a court of competent jurisdiction or (b)
the wrongful dishonor by the LC Bank of a proper demand for payment made under any Letter of Credit, except if such dishonor resulted
from any act or omission, whether rightful or wrongful, of any present or future de jure or de facto Governmental Authority (all
such acts or omissions herein called “Governmental Acts”).

 

    	 	-18-	 

     

    

 

Section 1.21         Liability
for Acts and Omissions.

 

As between the Seller,
on the one hand, and the Administrator, the LC Bank, the LC Participants, the Purchasers and the Purchaser Agents, on the other,
the Seller assumes all risks of the acts and omissions of, or misuse of any Letter of Credit by, the respective beneficiaries of
such Letter of Credit. In furtherance and not in limitation of the respective foregoing, none of the Administrator, the LC Bank,
the LC Participants, the Purchasers or the Purchaser Agents shall be responsible for: (i) the form, validity, sufficiency, accuracy,
genuineness or legal effect of any document submitted by any party in connection with the application for an issuance of any such
Letter of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or
forged; (ii) the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any such
Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or
ineffective for any reason; (iii) the failure of the beneficiary of any such Letter of Credit, or any other party to which such
Letter of Credit may be transferred, to comply fully with any conditions required in order to draw upon such Letter of Credit or
any other claim of the Seller against any beneficiary of such Letter of Credit, or any such transferee, or any dispute between
or among the Seller and any beneficiary of any Letter of Credit or any such transferee; (iv) errors, omissions, interruptions or
delays in transmission or delivery of any messages, by mail, e-mail, cable, telegraph, telex or otherwise, whether or not they
be in cipher; (v) errors in interpretation of technical terms; (vi) any loss or delay in the transmission or otherwise of any document
required in order to make a drawing under any such Letter of Credit or of the proceeds thereof; (vii) the misapplication by the
beneficiary of any such Letter of Credit of the proceeds of any drawing under such Letter of Credit; or (viii) any consequences
arising from causes beyond the control of the Administrator, the LC Bank, the LC Participants, the Purchasers and the Purchaser
Agents, including any Governmental Acts, and none of the above shall affect or impair, or prevent the vesting of, any of the LC
Bank’s rights or powers hereunder. Nothing in the preceding sentence shall relieve the LC Bank from liability for its gross
negligence or willful misconduct, as determined by a final non-appealable judgment of a court of competent jurisdiction, in connection
with actions or omissions described in such clauses (i) through (viii) of such sentence. In no event shall the Administrator, the
LC Bank, the LC Participants, the Purchasers or the Purchaser Agents or their respective Affiliates, be liable to the Seller or
any other Person for any indirect, consequential, incidental, punitive, exemplary or special damages or expenses (including without
limitation Attorney Costs), or for any damages resulting from any change in the value of any property relating to a Letter of Credit.

 

Without limiting the generality
of the foregoing, the Administrator, the LC Bank, the LC Participants, the Purchasers and the Purchaser Agents and each of its
Affiliates (i) may rely on any written communication believed in good faith by such Person to have been authorized or given by
or on behalf of the applicant for a Letter of Credit; (ii) may honor any presentation if the documents presented appear on their
face to comply with the terms and conditions of the relevant Letter of Credit; (iii) may honor a previously dishonored presentation
under a Letter of Credit, whether such dishonor was pursuant to a court order, to settle or compromise any claim of wrongful dishonor,
or otherwise, and shall be entitled to reimbursement to the same extent as if such presentation had initially been honored, together
with any interest paid by the LC Bank or its Affiliates; (iv) may honor any drawing that is payable upon presentation of a statement
advising negotiation or payment, upon receipt of such statement (even if such statement indicates that a draft or other document
is being delivered separately), and shall not be liable for any failure of any such draft or other document to arrive, or to conform
in any way with the relevant Letter of Credit; (v) may pay any paying or negotiating bank claiming that it rightfully honored under
the laws or practices of the place where such bank is located; and (vi) may settle or adjust any claim or demand made on the Administrator,
the LC Bank, the LC Participants, the Purchasers or the Purchaser Agents or their respective Affiliates, in any way related to
any order issued at the applicant’s request to an air carrier, a letter of guarantee or of indemnity issued to a carrier
or any similar document (each an “Order”) and may honor any drawing in connection with any Letter of Credit that is
the subject of such Order, notwithstanding that any drafts or other documents presented in connection with such Letter of Credit
fail to conform in any way with such Letter of Credit.

 

    	 	-19-	 

     

    

 

In furtherance and extension
and not in limitation of the specific provisions set forth above, any action taken or omitted by the LC Bank under or in connection
with any Letter of Credit issued by it or any documents and certificates delivered thereunder, if taken or omitted in good faith
and without gross negligence or willful misconduct, as determined by a final non-appealable judgment of a court of competent jurisdiction,
shall not put the LC Bank under any resulting liability to the Seller, any LC Participant or any other Person.

 

Section 1.22         Extension
of Termination Date. For each of the first three years after the Restatement Date, the Seller may request the extension of
the Facility Termination Date for an additional three hundred and sixty-four (364) days from the Facility Termination Date then
in effect by providing written notice to the Administrator and each Purchaser Agent; provided such request is made not more
than 120 days prior to, and not less than 90 days prior to, the then current Facility Termination Date. In the event that the Purchasers
are all agreeable to such extension, the Administrator shall so notify the Seller in writing (it being understood that the
Purchasers may accept or decline such a request in their sole discretion and on such terms as they may elect) not less than 30
days prior to the then current Facility Termination Date and the Seller, the Servicer, the Administrator, the Purchaser Agents
and the Purchasers shall enter into such documents as the Purchasers may deem necessary or appropriate to reflect such extension,
and all reasonable costs and expenses incurred by the Purchasers, the Administrator and the Purchaser Agents in connection therewith
(including reasonable Attorney Costs) shall be paid by the Seller. In the event any Purchaser declines the request for such extension,
such Purchaser (or the applicable Purchaser Agent on its behalf) shall so notify the Administrator and the Administrator shall
so notify the Seller of such determination; provided, however, that the failure of the Administrator to notify the
Seller of the determination to decline such extension shall not affect the understanding and agreement that the applicable Purchasers
shall be deemed to have refused to grant the requested extension in the event the Administrator fails to affirmatively notify the
Seller, in writing, of their agreement to accept the requested extension.

 

ARTICLE
II

REPRESENTATIONS AND WARRANTIES; COVENANTS;

TERMINATION EVENTS

 

Section 2.1           Representations
and Warranties; Covenants. Each of the Seller and the Servicer hereby makes the representations and warranties, and hereby
agrees to perform and observe the covenants, applicable to it set forth in Exhibits III and IV, respectively.

 

    	 	-20-	 

     

    

 

Section 2.2           Termination
Events. If any of the Termination Events set forth in Exhibit V shall occur, the Administrator may (with the consent
of the Majority Purchaser Agents) or shall (at the direction of the Majority Purchaser Agents), by notice to the Seller, declare
the Facility Termination Date to have occurred (in which case the Facility Termination Date shall be deemed to have occurred);
provided, that automatically upon the occurrence of any event (without any requirement for the passage of time or the giving
of notice) described in paragraph (f) of Exhibit V, the Facility Termination Date shall occur. Upon any such declaration,
occurrence or deemed occurrence of the Facility Termination Date, the Administrator, each Purchaser Agent and each Purchaser shall
have, in addition to the rights and remedies that they may have under this Agreement, all other rights and remedies provided after
default under the UCC and under other applicable law, which rights and remedies shall be cumulative.

 

ARTICLE
III

INDEMNIFICATION

 

Section 3.1           Indemnities
by the Seller. Without limiting any other rights any such Person may have hereunder or under applicable law, the Seller hereby
indemnifies and holds harmless, on an after-tax basis, the Administrator, each Purchaser Agent, each Liquidity Provider, each Program
Support Provider and each Purchaser and their respective officers, directors, agents and employees (each an “Indemnified
Party”) from and against any and all damages, losses, claims, liabilities, penalties, Taxes, costs and expenses (including
reasonable attorneys’ fees and court costs) (all of the foregoing collectively, the “Indemnified Amounts”)
at any time imposed on or incurred by any Indemnified Party arising out of or otherwise relating to any Transaction Document, the
transactions contemplated thereby or the acquisition of any portion of the Purchased Interest, or any action taken or omitted by
any of the Indemnified Parties (including any action taken by the Administrator as attorney-in-fact for the Seller or any Originator
hereunder or under any other Transaction Document), whether arising by reason of the acts to be performed by the Seller hereunder
or otherwise, excluding only Indemnified Amounts to the extent (a) a final judgment of a court of competent jurisdiction holds
that such Indemnified Amounts resulted from gross negligence or willful misconduct of the Indemnified Party seeking indemnification,
(b) due to the credit risk of the Obligor and for which reimbursement would constitute recourse to any Originator, the Seller or
the Servicer for uncollectible Receivables or (c) such Indemnified Amounts include Taxes imposed or based on, or measured by, the
gross or net income or receipts of such Indemnified Party by the jurisdiction under the laws of which such Indemnified Party is
organized (or any political subdivision thereof); provided, however, that nothing contained in this sentence
shall limit the liability of the Seller or the Servicer or limit the recourse of any Indemnified Party to the Seller or the Servicer
for any amounts otherwise specifically provided to be paid by the Seller or the Servicer hereunder. Without limiting the foregoing
indemnification, but subject to the limitations set forth in clauses (a), (b) and (c) of the previous sentence,
the Seller shall indemnify each Indemnified Party for Amounts (including losses in respect of uncollectible Receivables, regardless,
for purposes of these specific matters, whether reimbursement therefor would constitute recourse to the Seller or the Servicer)
relating to or resulting from:

 

(i)           any
representation or warranty made by the Seller (or any employee or agent of the Seller) under or in connection with this Agreement,
any Information Package or any other information or report delivered by or on behalf of the Seller pursuant hereto, which shall
have been false or incorrect in any respect when made or deemed made;

 

    	 	-21-	 

     

    

 

(ii)          the
failure by the Seller to comply with any applicable law, rule or regulation related to any Receivable, or the nonconformity of
any Receivable with any such applicable law, rule or regulation;

 

(iii)         the
failure of the Seller to vest and maintain vested in the Administrator, for the benefit of the Purchasers, a perfected ownership
or security interest in the Purchased Interest and the property conveyed hereunder, free and clear of any Adverse Claim;

 

(iv)         any
commingling of funds to which the Administrator, any Purchaser Agent or any Purchaser is entitled hereunder with any other funds;

 

(v)          any
failure of a Lock-Box Bank to comply with the terms of the applicable Lock-Box Agreement;

 

(vi)         any
dispute, claim, offset or defense (other than discharge in bankruptcy of the Obligor) of the Obligor to the payment of any Receivable,
or any other claim resulting from the sale or lease of goods or the rendering of services related to such Receivable or the furnishing
or failure to furnish any such goods or services or other similar claim or defense not arising from the financial inability of
any Obligor to pay undisputed indebtedness;

 

(vii)        any
failure of the Seller, to perform its duties or obligations in accordance with the provisions of this Agreement or any other Transaction
Document to which it is a party;

 

(viii)       any
action taken by the Administrator as attorney-in-fact for the Seller or any Originator pursuant to this Agreement or any other
Transaction Document;

 

(ix)          the
use of proceeds of purchase or reinvestment or the issuance of any Letter of Credit on behalf of Seller (and, if applicable, on
behalf of, or for the account of, any Originator); or

 

(x)           any
environmental liability claim, products liability claim or personal injury or property damage suit or other similar or related
claim or action of whatever sort, arising out of or in connection with any Receivable or any other suit, claim or action of whatever
sort relating to any of the Transaction Documents.

 

Section 3.2           Indemnities
by the Servicer. Without limiting any other rights that any Indemnified Party may have hereunder or under applicable law, the
Servicer hereby agrees to indemnify each Indemnified Party from and against any and all Indemnified Amounts arising out of or resulting
from (whether directly or indirectly): (a) the failure of any information contained in any Information Package to be true and correct,
or the failure of any other information provided to such Indemnified Party by, or on behalf of, the Servicer to be true and correct,
(b) the failure of any representation, warranty or statement made or deemed made by the Servicer (or any of its officers) under
or in connection with this Agreement or any other Transaction Document to which it is a party to have been true and correct as
of the date made or deemed made in all respects when made, (c) the failure by the Servicer to comply with any applicable law, rule
or regulation with respect to any Pool Receivable or the related Contract, (d) any dispute, claim, offset or defense of the Obligor
to the payment of any Receivable in, or purporting to be in, the Receivables Pool resulting from or related to the collection activities
with respect to such Receivable or (e) any failure of the Servicer to perform its duties or obligations in accordance with the
provisions hereof or any other Transaction Document to which it is a party.

 

    	 	-22-	 

     

    

 

ARTICLE
IV

ADMINISTRATION AND COLLECTIONS

 

Section 4.1           Appointment
of the Servicer.

 

(a)          The
servicing, administering and collection of the Pool Receivables shall be conducted by the Person so designated from time to time
as the Servicer in accordance with this Section 4.1. Until the Administrator gives notice to Cooper Tire (in accordance
with this Section 4.1) of the designation of a new Servicer, Cooper Tire is hereby designated as, and hereby agrees to perform
the duties and obligations of, the Servicer pursuant to the terms hereof. Upon the occurrence of a Termination Event, the Administrator
may (with the consent of the Majority Purchaser Agents) or shall (at the direction of the Majority Purchaser Agents) designate
as Servicer any Person (including itself) to succeed Cooper Tire or any successor Servicer, on the condition in each case that
any such Person so designated shall agree to perform the duties and obligations of the Servicer pursuant to the terms hereof.

 

(b)          Upon
the designation of a successor Servicer as set forth in clause (a), Cooper Tire agrees that it will terminate its activities
as Servicer hereunder in a manner that the Administrator determines will facilitate the transition of the performance of such activities
to the new Servicer, and Cooper Tire shall cooperate with and assist such new Servicer. Such cooperation shall include access to
and transfer of related records (including all Contracts) and use by the new Servicer of all licenses, hardware or software necessary
or desirable to collect the Pool Receivables and the Related Security.

 

(c)          Cooper
Tire acknowledges that, in making their decision to execute and deliver this Agreement, the Administrator and each member in each
Purchaser Group have relied on Cooper Tire’s agreement to act as Servicer hereunder. Accordingly, Cooper Tire agrees that
it will not voluntarily resign as Servicer.

 

(d)          The
Servicer may delegate its duties and obligations hereunder to any subservicer (each a “Sub-Servicer”); provided,
that, in each such delegation: (i) such Sub-Servicer shall agree in writing to perform the duties and obligations of the Servicer
pursuant to the terms hereof, (ii) the Servicer shall remain liable for the performance of the duties and obligations so delegated,
(iii) the Seller, the Administrator and each Purchaser Group shall have the right to look solely to the Servicer for performance,
and (iv) the terms of any agreement with any Sub-Servicer shall provide that the Administrator may terminate such agreement upon
the termination of the Servicer hereunder by giving notice of its desire to terminate such agreement to the Servicer (and the Servicer
shall provide appropriate notice to each such Sub-Servicer); provided, however, that if any such delegation is to
any Person other than an Originator or an Affiliate thereof, the Administrator and the Majority Purchaser Agents shall have consented
in writing in advance to such delegation.

 

    	 	-23-	 

     

    

 

Section 4.2           Duties
of the Servicer.

 

(a)          The
Servicer shall take or cause to be taken all such action as may be necessary or advisable to administer and collect each Pool Receivable
from time to time, all in accordance with this Agreement and all applicable laws, rules and regulations, with reasonable care and
diligence, and in accordance with the Credit and Collection Policies. The Servicer shall set aside for the accounts of the Seller
and each Purchaser Group the amount of Collections to which each such Purchaser Group is entitled in accordance with Article
I hereof. The Servicer may correct errors in Receivables and records of Receivables, including correcting to conform to applicable
laws, rules and regulations, and to the applicable Contract, and, in accordance with the applicable Credit and Collection Policy,
take such action, including modifications, waivers or restructurings of Pool Receivables and the related Contracts, as the Servicer
may reasonably determine to be appropriate to maximize Collections thereof or reflect adjustments permitted under the Credit and
Collection Policy; provided, however, that: (i) corrections, modifications, waivers and restructurings shall not
alter the status of such Pool Receivable as a Delinquent Receivable or a Defaulted Receivable or limit the rights of any Purchaser,
Purchaser Agent or the Administrator under this Agreement and (ii) if a Termination Event or an Unmatured Termination Event has
occurred and is continuing and Cooper Tire or an Affiliate thereof is serving as the Servicer, Cooper Tire or such Affiliate may
make such extension or adjustment only upon the prior approval of the Administrator. The Seller shall deliver to the Servicer and
the Servicer shall hold for the benefit of the Seller and the Administrator (individually and for the benefit of each Purchaser
Group, in accordance with their respective interests, all records and documents (including computer tapes or disks) with respect
to each Pool Receivable. Notwithstanding anything to the contrary contained herein, the Administrator may direct the Servicer (whether
the Servicer is Cooper Tire or any other Person) to commence or settle any legal action to enforce collection of any Pool Receivable
or to foreclose upon or repossess any Related Security.

 

(b)          The
Servicer shall, as soon as practicable following actual receipt of collected funds, turn over to the Seller the collections of
any indebtedness that is not a Pool Receivable, less, if Cooper Tire or an Affiliate thereof is not the Servicer, all reasonable
and appropriate out-of-pocket costs and expenses of such Servicer of servicing, collecting and administering such collections.
The Servicer, if other than Cooper Tire or an Affiliate thereof, shall, as soon as practicable upon demand, deliver to the Seller
all records in its possession that evidence or relate to any indebtedness that is not a Pool Receivable, and copies of records
in its possession that evidence or relate to any indebtedness that is a Pool Receivable.

 

(c)          The
Servicer’s obligations hereunder shall terminate on the Final Payout Date. After such termination, if Cooper Tire or an Affiliate
thereof was not the Servicer on the date of such termination, the Servicer shall promptly deliver to the Seller all books, records
and related materials that the Seller previously provided to the Servicer, or that have been obtained by the Servicer, in connection
with this Agreement.

 

    	 	-24-	 

     

    

 

Section 4.3           Lock-Box
Account Arrangements. Prior to the Restatement Date, the Seller shall have entered into Lock-Box Agreements with all of the
Lock-Box Banks and delivered original counterparts of each to the Administrator. Upon the occurrence of a Termination Event or
Unmatured Termination Event, the Administrator may (with the consent of the Majority Purchaser Agents) or shall (upon the direction
of the Majority Purchaser Agents) at any time thereafter give notice to each Lock-Box Bank that the Administrator is exercising
its rights under the Lock-Box Agreements to do any or all of the following: (a) to have the exclusive ownership and control of
the Lock-Box Accounts transferred to the Administrator (for the benefit of the Purchasers) and to exercise exclusive dominion and
control over the funds deposited therein, (b) to have the proceeds that are sent to the respective Lock-Box Accounts redirected
pursuant to the Administrator’s instructions rather than deposited in the applicable Lock-Box Account, and (c) to take any
or all other actions permitted under the applicable Lock-Box Agreement. The Seller hereby agrees that if the Administrator at any
time takes any action set forth in the preceding sentence, the Administrator shall have exclusive control (for the benefit of the
Purchasers) of the proceeds (including Collections) of all Pool Receivables and the Seller hereby further agrees to take any other
action that the Administrator or any Purchaser Agent may reasonably request to transfer such control. Any proceeds of Pool Receivables
received by the Seller or the Servicer thereafter shall be sent immediately to, or as otherwise instructed by, the Administrator.
The parties hereto hereby acknowledge that if at any time the Administrator takes control of any Lock-Box Account, the Administrator
shall not have any rights to the funds therein in excess of the unpaid amounts due to the Administrator, any member of any Purchaser
Group, any Indemnified Party or Affected Person or any other Person hereunder, and the Administrator shall distribute or cause
to be distributed such funds in accordance with Section 4.2(b) and Article I (in each case as if such funds were
held by the Servicer thereunder).

 

Section 4.4           Enforcement
Rights.

 

(a)          At
any time following the occurrence of a Termination Event:

 

(i)           the
Administrator may direct the Obligors that payment of all amounts payable under any Pool Receivable is to be made directly to the
Administrator or its designee,

 

(ii)          the
Administrator may instruct the Seller or the Servicer to give notice of the Purchaser Groups’ interest in Pool Receivables
to each Obligor, which notice shall direct that payments be made directly to the Administrator or its designee (on behalf of such
Purchaser Groups), and the Seller or the Servicer, as the case may be, shall give such notice at the expense of the Seller or the
Servicer, as the case may be; provided, that if the Seller or the Servicer, as the case may be, fails to so notify each
Obligor, the Administrator (at the Seller’s or the Servicer’s, as the case may be, expense) may so notify the Obligors,
and

 

(iii)         the
Administrator may request the Servicer to, and upon such request the Servicer shall: (A) assemble all of the records necessary
or desirable to collect the Pool Receivables and the Related Security, and transfer or license to a successor Servicer the use
of all software necessary or desirable to collect the Pool Receivables and the Related Security, and make the same available to
the Administrator or its designee (for the benefit of the Purchasers) at a place selected by the Administrator, and (B) segregate
all cash, checks and other instruments received by it from time to time constituting Collections in a manner acceptable to the
Administrator and, promptly upon receipt, remit all such cash, checks and instruments, duly endorsed or with duly executed instruments
of transfer, to the Administrator or its designee.

 

    	 	-25-	 

     

    

 

(b)          The
Seller hereby authorizes the Administrator (on behalf of each Purchaser Group), and irrevocably appoints the Administrator as its
attorney-in-fact with full power of substitution and with full authority in the place and stead of the Seller, which appointment
is coupled with an interest, to take any and all steps in the name of the Seller and on behalf of the Seller necessary or desirable,
in the determination of the Administrator, after the occurrence of a Termination Event, to collect any and all amounts or portions
thereof due under any and all Pool Assets, including endorsing the name of the Seller on checks and other instruments representing
Collections and enforcing such Pool Assets. Notwithstanding anything to the contrary contained in this subsection, none of the
powers conferred upon such attorney-in-fact pursuant to the preceding sentence shall subject such attorney-in-fact to any liability
if any action taken by it shall prove to be inadequate or invalid, nor shall they confer any obligations upon such attorney-in-fact
in any manner whatsoever.

 

Section 4.5           Responsibilities
of the Seller.

 

(a)          Anything
herein to the contrary notwithstanding, the Seller shall: (i) perform all of its obligations, if any, under the Contracts related
to the Pool Receivables to the same extent as if interests in such Pool Receivables had not been transferred hereunder, and the
exercise by the Administrator, the Purchaser Agents or the Purchasers of their respective rights hereunder shall not relieve the
Seller from such obligations, and (ii) pay when due any taxes, including any sales taxes payable in connection with the Pool Receivables
and their creation and satisfaction. None of the Administrator, the Purchaser Agents or any of the Purchasers shall have any obligation
or liability with respect to any Pool Asset, nor shall any of them be obligated to perform any of the obligations of the Seller,
Servicer, Cooper Tire or the Originators thereunder.

 

(b)          Cooper
Tire hereby irrevocably agrees that if at any time it shall cease to be the Servicer hereunder, it shall act (if the then-current
Servicer so requests) as the data-processing agent of the Servicer and, in such capacity, Cooper Tire shall conduct the data-processing
functions of the administration of the Receivables and the Collections thereon in substantially the same way that Cooper Tire conducted
such data-processing functions while it acted as the Servicer.

 

Section 4.6           Servicing
Fee. (a) Subject to clause (b), the Servicer shall be paid a fee (the “Servicing Fee”) equal to 1.00%
per annum (the “Servicing Fee Rate”) of the daily average aggregate Outstanding Balance of the Pool Receivables.
The Purchasers’ Share of such fee shall be paid through the distributions contemplated by Section 1.4(d), and the
Seller’s Share of such fee shall be paid directly by the Seller.

 

(b)          If
the Servicer ceases to be Cooper Tire or an Affiliate thereof, the servicing fee shall be the greater of: (i) the amount calculated
pursuant to clause (a), and (ii) an alternative amount specified by the successor Servicer not to exceed 110% of the aggregate
reasonable costs and expenses incurred by such successor Servicer in connection with the performance of its obligations as Servicer.

 

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ARTICLE
V

THE AGENTS

 

Section 5.1           Appointment
and Authorization. (a) Each Purchaser and Purchaser Agent hereby irrevocably designates and appoints PNC Bank, National Association,
as the “Administrator” hereunder and authorizes the Administrator to take such actions and to exercise such powers
as are delegated to the Administrator hereby and to exercise such other powers as are reasonably incidental thereto. The Administrator
shall have no duties or responsibilities except those expressly set forth in this Agreement or in the other Transaction Documents.
The duties of the Administrator shall be mechanical and administrative in nature. At no time shall the Administrator have any duty
or responsibility to any Person to investigate or confirm the correctness or accuracy of any information or documents delivered
to it in its role as Administrator hereunder or any obligation in respect of the failure of any Person (other than the Administrator)
to perform any obligation hereunder or under any other Transaction Document. The Administrator shall not have, by reason of this
Agreement, a fiduciary relationship in respect of any Purchaser Agent, Purchaser, the Seller, the Servicer or any Originator. Nothing
in this Agreement or any of the Transaction Documents, express or implied, is intended to or shall be construed to impose upon
the Administrator any obligations in respect of this Agreement or any of the Transaction Documents except as expressly set forth
herein or therein. The Administrator shall not have any duty or responsibility, either initially or on a continuing basis, to provide
any Purchaser or Purchaser Agent with any credit or other information with respect to the Seller, any Originator, Cooper Tire or
their Affiliates, whether coming into its possession before the Restatement Date or at any time or times thereafter.

 

(b)          Each
Purchaser hereby irrevocably designates and appoints the respective institution identified as the Purchaser Agent for such Purchaser’s
Purchaser Group on the signature pages hereto or in the Assumption Agreement or Transfer Supplement pursuant to which such Purchaser
becomes a party hereto, and each authorizes such Purchaser Agent to take such action on its behalf under the provisions of this
Agreement and to exercise such powers and perform such duties as are expressly delegated to such Purchaser Agent by the terms of
this Agreement, if any, together with such other powers as are reasonably incidental thereto. Notwithstanding any provision to
the contrary elsewhere in this Agreement, no Purchaser Agent shall have any duties or responsibilities, except those expressly
set forth herein, or any fiduciary relationship with any Purchaser or other Purchaser Agent or the Administrator, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities on the part of such Purchaser Agent shall be read into
this Agreement or otherwise exist against such Purchaser Agent.

 

(c)          Except
as otherwise specifically provided in this Agreement, the provisions of this Article V are solely for the benefit of
the Purchaser Agents, the Administrator and the Purchasers, and none of the Seller or Servicer shall have any rights as a third-party
beneficiary or otherwise under any of the provisions of this Article V, except that this Article V shall not
affect any obligations which any Purchaser Agent, the Administrator or any Purchaser may have to the Seller or the Servicer under
the other provisions of this Agreement. Furthermore, no Purchaser shall have any rights as a third-party beneficiary or otherwise
under any of the provisions hereof in respect of a Purchaser Agent which is not the Purchaser Agent for such Purchaser.

 

    	 	-27-	 

     

    

 

(d)          In
performing its functions and duties hereunder, the Administrator shall act solely as the agent of the Purchasers and the Purchaser
Agents and does not assume nor shall be deemed to have assumed any obligation or relationship of trust or agency with or for the
Seller or Servicer or any of their successors and assigns. In performing its functions and duties hereunder, each Purchaser Agent
shall act solely as the agent of its respective Purchaser and does not assume nor shall be deemed to have assumed any obligation
or relationship of trust or agency with or for the Seller, the Servicer, any other Purchaser, any other Purchaser Agent or the
Administrator, or any of their respective successors and assigns.

 

Section 5.2           Delegation
of Duties. The Administrator may execute any of its duties through agents or attorneys-in-fact and shall be entitled to advice
of counsel concerning all matters pertaining to such duties. The Administrator shall not be responsible for the negligence or misconduct
of any agents or attorneys-in-fact selected by it with reasonable care.

 

Section 5.3           Exculpatory
Provisions. None of the Purchaser Agents, the Administrator or any of their respective directors, officers, agents or employees
shall be liable for any action taken or omitted (i) with the consent or at the direction of the Majority Purchaser Agents
(or in the case of any Purchaser Agent, the Purchasers within its Purchaser Group that have a majority of the aggregate Commitments
of such Purchaser Group) or (ii) in the absence of such Person’s gross negligence or willful misconduct. The Administrator
shall not be responsible to any Purchaser, Purchaser Agent or other Person for (i) any recitals, representations, warranties
or other statements made by the Seller, the Servicer, any Originator or any of their Affiliates, (ii) the value, validity,
effectiveness, genuineness, enforceability or sufficiency of any Transaction Document, (iii) any failure of the Seller, the
Servicer, any Originator or any of their Affiliates to perform any obligation hereunder or under the other Transaction Documents
to which it is a party (or under any Contract), or (iv) the satisfaction of any condition specified in Exhibit II.
The Administrator shall not have any obligation to any Purchaser or Purchaser Agent to ascertain or inquire about the observance
or performance of any agreement contained in any Transaction Document or to inspect the properties, books or records of the Seller,
the Servicer, any Originator or any of their respective Affiliates.

 

Section 5.4           Reliance
by Agents. (a) Each Purchaser Agent and the Administrator shall in all cases be entitled to rely, and shall be fully protected
in relying, upon any document or other writing or conversation believed by it to be genuine and correct and to have been signed,
sent or made by the proper Person and upon advice and statements of legal counsel (including counsel to the Seller), independent
accountants and other experts selected by the Administrator. Each Purchaser Agent and the Administrator shall in all cases be fully
justified in failing or refusing to take any action under any Transaction Document unless it shall first receive such advice or
concurrence of the Majority Purchaser Agents (or in the case of any Purchaser Agent, the Purchasers within its Purchaser Group
that have a majority of the aggregate Commitment of such Purchaser Group), and assurance of its indemnification, as it deems appropriate.

 

    	 	-28-	 

     

    

 

(b)          The
Administrator shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement in accordance
with a request of the Majority Purchaser Agents or the Purchaser Agents, and such request and any action taken or failure to act
pursuant thereto shall be binding upon all Purchasers, the Administrator and Purchaser Agents.

 

(c)          The
Purchasers within each Purchaser Group with a majority of the Commitments of such Purchaser Group shall be entitled to request
or direct the related Purchaser Agent to take action, or refrain from taking action, under this Agreement on behalf of such Purchasers.
Such Purchaser Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement in accordance
with a request of such Majority Purchaser Agents, and such request and any action taken or failure to act pursuant thereto shall
be binding upon all of such Purchaser Agent’s Purchasers.

 

(d)          Unless
otherwise advised in writing by a Purchaser Agent or by any Purchaser on whose behalf such Purchaser Agent is purportedly acting,
each party to this Agreement may assume that (i) such Purchaser Agent is acting for the benefit of each of the Purchasers
in respect of which such Purchaser Agent is identified as being the “Purchaser Agent” in the definition of “Purchaser
Agent” hereto, as well as for the benefit of each assignee or other transferee from any such Person, and (ii) each action
taken by such Purchaser Agent has been duly authorized and approved by all necessary action on the part of the Purchasers on whose
behalf it is purportedly acting. Each Purchaser Agent and its Purchaser(s) shall agree amongst themselves as to the circumstances
and procedures for removal, resignation and replacement of such Purchaser Agent.

 

Section 5.5           Notice
of Termination Events. Neither any Purchaser Agent nor the Administrator shall be deemed to have knowledge or notice of the
occurrence of any Termination Event or Unmatured Termination Event unless the Administrator and the Purchaser Agents have received
notice from any Purchaser, the Servicer or the Seller stating that a Termination Event or an Unmatured Termination Event has occurred
hereunder and describing such Termination Event or Unmatured Termination Event. In the event that the Administrator receives such
a notice, it shall promptly give notice thereof to each Purchaser Agent whereupon each such Purchaser Agent shall promptly give
notice thereof to its related Purchasers. In the event that a Purchaser Agent receives such a notice (other than from the Administrator),
it shall promptly give notice thereof to the Administrator. The Administrator shall take such action concerning a Termination Event
or an Unmatured Termination Event as may be directed by the Majority Purchaser Agents (unless such action otherwise requires the
consent of all Purchasers, the LC Bank), but until the Administrator receives such directions, the Administrator may (but shall
not be obligated to) take such action, or refrain from taking such action, as the Administrator deems advisable and in the best
interests of the Purchasers and the Purchaser Agents.

 

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Section 5.6           Non-Reliance
on Administrator, Purchaser Agents and Other Purchasers. Each Purchaser expressly acknowledges that none of the Administrator,
the Purchaser Agents nor any of their respective officers, directors, employees, agents, attorneys-in-fact or Affiliates has made
any representations or warranties to it and that no act by the Administrator, or any Purchaser Agent hereafter taken, including
any review of the affairs of the Seller, Cooper Tire, the Servicer or any Originator, shall be deemed to constitute any representation
or warranty by the Administrator or such Purchaser Agent, as applicable. Each Purchaser represents and warrants to the Administrator
and the Purchaser Agents that, independently and without reliance upon the Administrator, Purchaser Agents or any other Purchaser
and based on such documents and information as it has deemed appropriate, it has made and will continue to make its own appraisal
of and investigation into the business, operations, property, prospects, financial and other conditions and creditworthiness of
the Seller, Cooper Tire, the Servicer or the Originators, and the Receivables and its own decision to enter into this Agreement
and to take, or omit, action under any Transaction Document. Except for items specifically required to be delivered hereunder,
the Administrator shall not have any duty or responsibility to provide any Purchaser Agent with any information concerning the
Seller, Cooper Tire, the Servicer or the Originators or any of their Affiliates that comes into the possession of the Administrator
or any of its officers, directors, employees, agents, attorneys-in-fact or Affiliates.

 

Section 5.7           Administrators
and Affiliates. Each of the Purchasers and the Administrator and any of their respective Affiliates may extend credit to, accept
deposits from and generally engage in any kind of banking, trust, debt, equity or other business with the Seller, Cooper Tire,
the Servicer or any Originator or any of their Affiliates. With respect to the acquisition of the Eligible Receivables pursuant
to this Agreement, each of the Purchaser Agents and the Administrator shall have the same rights and powers under this Agreement
as any Purchaser and may exercise the same as though it were not such an agent, and the terms “Purchaser” and “Purchasers”
shall include, to the extent applicable, each of the Purchaser Agents and the Administrator in their individual capacities.

 

Section 5.8           Indemnification.
Each LC Participant and Related Committed Purchaser shall indemnify and hold harmless the Administrator (but solely in its capacity
as Administrator) and the LC Bank and their respective officers, directors, employees, representatives and agents (to the extent
not reimbursed by the Seller, the Servicer or any Originator and without limiting the obligation of the Seller, the Servicer, or
any Originator to do so), ratably (based on its Commitment) from and against any and all liabilities, obligations, losses, damages,
penalties, judgments, settlements, costs, expenses and disbursements of any kind whatsoever (including in connection with any investigative
or threatened proceeding, whether or not the Administrator, the LC Bank or such Person shall be designated a party thereto) that
may at any time be imposed on, incurred by or asserted against the Administrator, the LC Bank or such Person as a result of, or
related to, any of the transactions contemplated by the Transaction Documents or the execution, delivery or performance of the
Transaction Documents or any other document furnished in connection therewith (but excluding any such liabilities, obligations,
losses, damages, penalties, judgments, settlements, costs, expenses or disbursements resulting solely from the gross negligence
or willful misconduct of the Administrator, the LC Bank or such Person as finally determined by a court of competent jurisdiction).
Without limiting the generality of the foregoing, each LC Participant agrees to reimburse the Administrator and the LC Bank, ratably
according to its Pro Rata Shares, promptly upon demand, for any out of pocket expenses (including reasonable counsel fees) incurred
by the Administrator or the LC Bank in connection with the administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of, its rights and responsibilities under this Agreement.

 

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Section 5.9           Successor
Administrator. The Administrator may, upon at least five (5) days’ notice to the Seller, each Purchaser and Purchaser
Agent, resign as Administrator. Such resignation shall not become effective until a successor Administrator is appointed by the
Majority Purchaser Agents and has accepted such appointment. Upon such acceptance of its appointment as Administrator hereunder
by a successor Administrator, such successor Administrator shall succeed to and become vested with all the rights and duties of
the retiring Administrator, and the retiring Administrator shall be discharged from its duties and obligations under the Transaction
Documents. After any retiring Administrator’s resignation hereunder, the provisions of Sections 3.1 and 3.2
and this Article V shall inure to its benefit as to any actions taken or omitted to be taken by it while it was the Administrator.

 

ARTICLE
VI

MISCELLANEOUS

 

Section 6.1           Amendments,
Etc. No amendment or waiver of any provision of this Agreement or any other Transaction Document, or consent to any departure
by the Seller or the Servicer therefrom, shall be effective unless in a writing signed by the Administrator, the LC Bank and Majority
Purchaser Agents, and, in the case of any amendment, by the other parties thereto; and then such amendment, waiver or consent shall
be effective only in the specific instance and for the specific purpose for which given; provided, however, that,
to the extent required by the securitization program of any Conduit Purchaser, no such material amendment shall be effective until
the Rating Agency Condition shall have been satisfied with respect thereto (the Administrator hereby agrees to provide executed
copies of any material amendment to or waiver of any provision of this Agreement to the Rating Agencies); provided, further
that no such amendment or waiver shall, without the consent of each affected Purchaser, (A) extend the date of any payment or deposit
of Collections by the Seller or the Servicer, (B) reduce the rate or extend the time of payment of Discount, (C) reduce any fees
payable to the Administrator, any Purchaser Agent or any Purchaser pursuant to the applicable Purchaser Group Fee Letter, (D) change
the amount of Capital of any Purchaser, any Purchaser’s pro rata share of the Purchased Interest or any Related Committed
Purchaser’s or LC Participant’s Commitment, (E) amend, modify or waive any provision of the definition of “Majority
Purchaser Agents” or this Section 6.1, (F) consent to or permit the assignment or transfer by the Seller of any of
its rights and obligations under this Agreement, (G) change the definition of “Eligible Receivable,” “Loss Reserve,”
“Loss Reserve Percentage,” “Dilution Reserve,” “Dilution Reserve Percentage”, “Specifically
Reserved Dilution Amount” or “Termination Event”, or (H) amend or modify any defined term (or any defined term
used directly or indirectly in such defined term) used in clauses (A) through (G) above in a manner that would circumvent the intention
of the restrictions set forth in such clauses. No failure on the part of the Purchasers, the Purchaser Agents or the Administrator
to exercise, and no delay in exercising any right hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right.

 

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Section 6.2           Notices,
Etc. All notices and other communications provided for hereunder shall, unless otherwise stated herein, be in writing (including
e-mail communication) and shall be personally delivered or sent by e-mail, or by overnight mail, to the intended party at the mailing
address or e-mail address of such party set forth under its name on the signature pages hereof (or in any other document or agreement
pursuant to which it is or became a party hereto), or at such other address or e-mail address as shall be designated by such party
in a written notice to the other parties hereto. All such notices and communications shall be effective (i) if delivered by overnight
mail, when received, and (ii) if transmitted by or e-mail, when sent, receipt confirmed by telephone or electronic means.

 

Section 6.3           Successors
and Assigns; Participations; Assignments.

 

(a)          Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns. Except as otherwise provided in Section 4.1(d), neither the Seller nor the Servicer may assign or transfer any of
its rights or delegate any of its duties hereunder or under any Transaction Document without the prior consent of the Administrator,
the LC Bank and each Purchaser Agent.

 

(b)          Participations.
Except as otherwise specifically provided herein, any Purchaser may sell to one or more Persons (each a “Participant”)
participating interests in the interests of such Purchaser hereunder; provided, however, that no Purchaser shall
grant any participation under which the Participant shall have rights to approve any amendment to or waiver of this Agreement or
any other Transaction Document. Such Purchaser shall remain solely responsible for performing its obligations hereunder, and the
Seller, each Purchaser Agent and the Administrator shall continue to deal solely and directly with such Purchaser in connection
with such Purchaser’s rights and obligations hereunder. A Purchaser shall not agree with a Participant to restrict such Purchaser’s
right to agree to any amendment hereto, except amendments that require the consent of all Purchasers. Any such Participant shall
not have any rights hereunder or under the Transaction Documents. Each Related Committed Purchaser that sells a participation shall,
acting solely for this purpose as an agent of the Seller, maintain a register on which it enters the name and address of each Participant
and the principal amounts (and stated interest) of each Participant’s interest in the Capital or other obligations under
this Agreement (the “Participant Register”); provided that no Related Committed Purchaser shall have
any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information
relating to a Participant’s interest in any Commitments, Capital, Letters of Credit or its other obligations under any this
Agreement) to any Person except to the extent that such disclosure is necessary to establish that such Commitment, Capital, Letter
of Credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries
in the Participant Register shall be conclusive absent manifest error, and such Related Committed Purchaser shall treat each Person
whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding
any notice to the contrary. For the avoidance of doubt, the Administrator (in its capacity as Administrator) shall have no responsibility
for maintaining a Participant Register.

 

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(c)          Assignments
by Certain Related Committed Purchasers. Any Related Committed Purchaser may assign to one or more Persons (each a “Purchasing
Related Committed Purchaser”), reasonably acceptable to the Administrator, the LC Bank and the related Purchaser Agent
in its sole discretion, any portion of its Commitment (which shall be inclusive of its Commitment as an LC Participant) pursuant
to a supplement hereto, substantially in the form of Annex D with any changes as have been approved by the parties thereto
(each, a “Transfer Supplement”), executed by each such Purchasing Related Committed Purchaser, such selling
Related Committed Purchaser, such related Purchaser Agent and the Administrator. Any such assignment by Related Committed Purchaser
cannot be for an amount less than $10,000,000. Upon (i) the execution of the Transfer Supplement, (ii) delivery of an executed
copy thereof to the Seller, such related Purchaser Agent and the Administrator and (iii) payment by the Purchasing Related Committed
Purchaser to the selling Related Committed Purchaser of the agreed purchase price, if any, such selling Related Committed Purchaser
shall be released from its obligations hereunder to the extent of such assignment and such Purchasing Related Committed Purchaser
shall for all purposes be a Related Committed Purchaser party hereto and shall have all the rights and obligations of a Related
Committed Purchaser hereunder to the same extent as if it were an original party hereto. The amount of the Commitment of the selling
Related Committed Purchaser allocable to such Purchasing Related Committed Purchaser shall be equal to the amount of the Commitment
of the selling Related Committed Purchaser transferred regardless of the purchase price, if any, paid therefor. The Transfer Supplement
shall be an amendment hereof only to the extent necessary to reflect the addition of such Purchasing Related Committed Purchaser
as a “Related Committed Purchaser” and a related “LC Participant” and any resulting adjustment of the selling
Related Committed Purchaser’s Commitment.

 

(d)          Assignments
to Liquidity Providers and other Program Support Providers. Any Conduit Purchaser may at any time grant to one or more of its
Liquidity Providers or other Program Support Providers, participating interests in its portion of the Purchased Interest. In the
event of any such grant by such Conduit Purchaser of a participating interest to a Liquidity Provider or other Program Support
Provider, such Conduit Purchaser shall remain responsible for the performance of its obligations hereunder. The Seller agrees that
each Liquidity Provider and Program Support Provider of any Conduit Purchaser hereunder shall be entitled to the benefits of Section
1.7.

 

(e)          Other
Assignment by Conduit Purchasers. Each party hereto agrees and consents (i) to any Conduit Purchaser’s assignment, participation,
grant of security interests in or other transfers of any portion of, or any of its beneficial interest in, the Purchased Interest
(or portion thereof), including without limitation to any collateral agent in connection with its commercial paper program and
(ii) to the complete assignment by any Conduit Purchaser of all of its rights and obligations hereunder to any other Person, and
upon such assignment such Conduit Purchaser shall be released from all obligations and duties, if any, hereunder; provided,
however, that such Conduit Purchaser may not, without the prior consent of its Related Committed Purchasers, make any such
transfer of its rights hereunder unless the assignee (i) is principally engaged in the purchase of assets similar to the assets
being purchased hereunder, (ii) has as its Purchaser Agent the Purchaser Agent of the assigning Conduit Purchaser and (iii) issues
commercial paper or other Notes with credit ratings substantially comparable to the ratings of the assigning Conduit Purchaser.
Any assigning Conduit Purchaser shall deliver to any assignee a Transfer Supplement with any changes as have been approved by the
parties thereto, duly executed by such Conduit Purchaser, assigning any portion of its interest in the Purchased Interest to its
assignee. Such Conduit Purchaser shall promptly (i) notify each of the other parties hereto of such assignment and (ii) take all
further action that the assignee reasonably requests in order to evidence the assignee’s right, title and interest in such
interest in the Purchased Interest and to enable the assignee to exercise or enforce any rights of such Conduit Purchaser hereunder.
Upon the assignment of any portion of its interest in the Purchased Interest, the assignee shall have all of the rights hereunder
with respect to such interest (except that the Discount therefor shall thereafter accrue at the rate, determined with respect to
the assigning Conduit Purchaser unless the Seller, the related Purchaser Agent and the assignee shall have agreed upon a different
Discount).

 

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(f)           Certain
Pledges. Without limiting the right of any Purchaser to sell or grant interests, security interests or participations to any
Person as otherwise described in this Section 6.3, (i) any Purchaser may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement to secure its obligations as a Purchaser hereunder, including any pledge
or assignment to secure obligations to a Federal Reserve Bank without notice to or the consent of any Person; provided that
no such pledge or assignment shall release such Purchaser from any of its obligations hereunder or substitute any such pledgee
or assignee for such Purchaser as a party hereto and (ii) any Purchaser may at any time pledge or grant a security interest in
all or any portion of its rights under this Agreement to a security trustee in connection with the funding by such Person of Purchases
without notice to or the consent of any Person; provided that no such pledge or assignment shall release such Purchaser
from any of its obligations hereunder or substitute any such pledgee or assignee for such Purchaser as a party hereto.

 

Section 6.4           Costs,
Expenses and Taxes. (a) By way of clarification, and not of limitation, of Sections 1.7 or 3.1, the Seller
shall pay to the Administrator, each Purchaser Agent and/or any Purchaser on demand all costs and expenses in connection with (i)
the preparation, execution, delivery and administration (including amendments or waivers of any provision) of this Agreement or
the other Transaction Documents, (ii) the sale of the Purchased Interest (or any portion thereof), (iii) the perfection (and continuation)
of the Administrator’s rights in the Receivables, Collections and other Pool Assets, (iv) the enforcement by the Administrator,
any Purchaser Agent or any member of any Purchaser Group of the obligations of the Seller, the Servicer or the Originators under
the Transaction Documents or of any Obligor under a Receivable and (v) the maintenance by the Administrator of the Lock-Box Accounts
(and any related lock-box or post office box), including fees, costs and expenses of legal counsel for the Administrator and the
Purchaser Agents relating to any of the foregoing or to advising the Administrator or any member of any Purchaser Group (including,
any related Liquidity Provider or any other related Program Support Provider) about its rights and remedies under any Transaction
Document or any other document, agreement or instrument related thereto and all costs and expenses (including counsel fees and
expenses) of the Administrator and any Purchaser Agent in connection with the enforcement or administration of the Transaction
Documents or any other document, agreement or instrument related thereto. The Seller shall reimburse the Administrator and each
Purchaser Agent for the cost of such Person’s auditors (which may be employees of such Person) auditing the books, records
and procedures of the Seller or the Servicer. The Seller shall reimburse each Conduit Purchaser for any amounts such Conduit Purchaser
must pay to any related Liquidity Provider or other related Program Support Provider pursuant to any Funding Agreement on account
of any Tax. The Seller shall reimburse each Conduit Purchaser on demand for all out of pocket costs and expenses incurred by such
Conduit Purchaser in connection with the Transaction Documents or the transactions contemplated thereby.

 

    	 	-34-	 

     

    

 

(b)          In
addition, the Seller shall pay on demand any and all stamp and other taxes and fees payable in connection with the execution, delivery,
filing and recording of this Agreement or the other documents or agreements to be delivered hereunder, and agrees to save each
Indemnified Party and Affected Person harmless from and against any liabilities with respect to or resulting from any delay in
paying or omission to pay such taxes and fees.

 

Section 6.5           No
Proceedings; Limitation on Payments. (a) Each of the Seller, Cooper Tire, the Servicer, the Administrator, the Purchaser Agents,
the Purchasers, each assignee of the Purchased Interest or any interest therein, and each Person that enters into a commitment
to purchase the Purchased Interest or interests therein, hereby covenants and agrees that it will not institute against, or join
any other Person in instituting against, any Conduit Purchaser any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceeding, or other proceeding under any federal or state bankruptcy or similar law, for one year and one day after the latest
maturing Note issued by such Conduit Purchaser is paid in full. The provisions of this paragraph shall survive any termination
of this Agreement.

 

(b)          Notwithstanding
any provisions contained in this Agreement to the contrary, no Conduit Purchaser shall or shall be obligated to, pay any amount,
if any, payable by it pursuant to this Agreement or any other Transaction Document unless (i) such Conduit Purchaser has received
funds which may be used to make such payment and which funds are not required to repay the Notes when due and (ii) after giving
effect to such payment, either (x) such Conduit Purchaser could issue Notes to refinance all outstanding Notes (assuming such outstanding
Notes matured at such time) in accordance with the program documents governing such Conduit Purchaser’s securitization program
or (y) all Notes are paid in full. Any amount which such Conduit Purchaser does not pay pursuant to the operation of the preceding
sentence shall not constitute a claim (as defined in §101 of the Bankruptcy Code) against or company obligation of such Conduit
Purchaser for any such insufficiency unless and until such Conduit Purchaser satisfies the provisions of clauses (i) and
(ii) above. The provisions of this paragraph shall survive any termination of this Agreement.

 

Section 6.6           GOVERNING
LAW AND JURISDICTION.

 

(a)          THIS
AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR
SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK) EXCEPT TO THE EXTENT THAT THE
VALIDITY OR PERFECTION OF A SECURITY INTEREST OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE
LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.

 

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(b)          ANY
LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE
UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK; AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE PARTIES HERETO
CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH OF THE PARTIES HERETO
IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED
ON THE GROUNDS OF FORUM NON CONVENIENS, THAT IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH
JURISDICTION IN RESPECT OF THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO. EACH OF THE PARTIES HERETO WAIVES PERSONAL SERVICE OF
ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH SERVICE MAY BE MADE BY ANY OTHER MEANS PERMITTED BY NEW YORK LAW.

 

Section 6.7           Confidentiality.
Unless otherwise required by applicable law, each of the Seller and the Servicer agrees to maintain the confidentiality of this
Agreement and the other Transaction Documents (and all drafts thereof) in communications with third parties and otherwise; provided,
that this Agreement may be disclosed (a) to third parties to the extent such disclosure is made pursuant to a written agreement
of confidentiality in form and substance reasonably satisfactory to the Administrator and each Purchaser Agent, (b) to the Seller’s
and Servicer’s legal counsel and auditors if they agree to hold it confidential and (c) as may be necessary or desirable
for financial reports, reports required by state and federal securities laws and by any other law. The Purchaser Agents and the
Purchasers agree to maintain the confidentiality of non-public financial and other business and proprietary information regarding
the Seller, the Servicer and the Originators; provided, that such information may be disclosed (i) to third parties to
the extent such disclosure is made pursuant to a written agreement of confidentiality in form and substance reasonably satisfactory
to the Servicer, (ii) to legal counsel and auditors of the Purchasers, the Purchaser Agents or the Administrator if they agree
to hold it confidential, (iii) to any nationally recognized statistical rating organization or if applicable to the rating agencies
rating the Notes of any Conduit Purchaser, (iv) to any Program Support Provider or potential Program Support Provider (if they
agree to hold it confidential), (v) to any placement agency placing the Notes, (vi) to any regulatory authorities having jurisdiction
over the Administrator, the Purchaser Agents, any Purchaser, any Program Support Provider or any Liquidity Provider, and (vii)
with prompt notice to the Servicer in advance if practicable and permitted by law, to others as otherwise required by law.

 

Section 6.8           Execution
in Counterparts. This Agreement may be executed in any number of counterparts, each of which, when so executed, shall be deemed
to be an original, and all of which, when taken together, shall constitute one and the same agreement.

 

Section 6.9           Survival
of Termination. The provisions of Sections 1.7, 1.8, 1.9, 1.10, 3.1, 3.2, 6.4,
6.5, 6.6, 6.7, 6.10 and 6.15 shall survive any termination of this Agreement.

 

Section 6.10         WAIVER
OF JURY TRIAL. EACH OF THE PARTIES HERETO WAIVES THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION
BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY IN ANY ACTION, PROCEEDING OR
OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR PARTIES, WHETHER WITH RESPECT TO CONTRACT
CLAIMS, TORT CLAIMS OR OTHERWISE. EACH OF THE PARTIES HERETO AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A
COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, EACH OF THE PARTIES HERETO FURTHER AGREES THAT ITS RESPECTIVE RIGHT
TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING THAT SEEKS, IN WHOLE
OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR ANY PROVISION HEREOF. THIS WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

 

    	 	-36-	 

     

    

 

Section 6.11         Sharing
of Recoveries. Each Purchaser agrees that if it receives any recovery, through set-off, judicial action or otherwise, on any
amount payable or recoverable hereunder in a greater proportion than should have been received hereunder or otherwise inconsistent
with the provisions hereof, then the recipient of such recovery shall purchase for cash an interest in amounts owing to the other
Purchasers (as return of Capital or otherwise), without representation or warranty except for the representation and warranty that
such interest is being sold by each such other Purchaser free and clear of any Adverse Claim created or granted by such other Purchaser,
in the amount necessary to create proportional participation by the Purchaser in such recovery. If all or any portion of such amount
is thereafter recovered from the recipient, such purchase shall be rescinded and the purchase price restored to the extent of such
recovery, but without interest.

 

Section 6.12         Right
of Setoff. Each Purchaser is hereby authorized (in addition to any other rights it may have) to setoff, appropriate and apply
(without presentment, demand, protest or other notice which are hereby expressly waived) any deposits and any other indebtedness
held or owing by such Purchaser (including by any branches or agencies of such Purchaser) to, or for the account of, the Seller
against amounts owing by the Seller hereunder (even if contingent or unmatured).

 

Section 6.13         Entire
Agreement. This Agreement and the other Transaction Documents embody the entire agreement and understanding between the parties
hereto, and supersede all prior or contemporaneous agreements and understandings of such Persons, verbal or written, relating to
the subject matter hereof and thereof.

 

Section 6.14         Headings.
The captions and headings of this Agreement and any Exhibit, Schedule or Annex hereto are for convenience of reference only and
shall not affect the interpretation hereof or thereof.

 

Section 6.15         Purchaser
Groups’ Liabilities. The obligations of each Purchaser Agent and each Purchaser under the Transaction Documents are solely
the corporate obligations of such Person. Except with respect to any claim arising out of the willful misconduct or gross negligence
of the Administrator, any Purchaser Agent or any Purchaser, no claim may be made by the Seller or the Servicer or any other Person
against the Administrator, any Purchaser Agent or any Purchaser or their respective Affiliates, directors, officers, employees,
attorneys or agents for any special, indirect, consequential or punitive damages in respect of any claim for breach of contract
or any other theory of liability arising out of or related to the transactions contemplated by this Agreement or any other Transaction
Document, or any act, omission or event occurring in connection therewith; and each of Seller and Servicer hereby waives, releases,
and agrees not to sue upon any claim for any such damages, whether or not accrued and whether or not known or suspected to exist
in its favor.

 

    	 	-37-	 

     

    

 

Section 6.16         USA
Patriot Act. Each of the Administrator and each of the Purchasers hereby notifies the Seller and the Servicer that pursuant
to the requirements of the USA PATRIOT Act, Title III of Pub. L. 107-56 (signed into law October 26, 2001) (the “PATRIOT
Act”), the Administrator and the Purchasers may be required to obtain, verify and record information that identifies
the Seller, the Servicer and Cooper Tire, which information includes the name, address, tax identification number and other information
regarding the Seller, the Servicer and Cooper Tire that will allow the Administrator and the Purchasers to identify the Seller,
the Servicer and Cooper Tire in accordance with the PATRIOT Act. This notice is given in accordance with the requirements of the
PATRIOT Act. Each of the Seller and the Servicer agrees to provide the Administrator and the Purchasers, from time to time, with
all documentation and other information required by bank regulatory authorities under “know your customer” and anti-money
laundering rules and regulations, including, without limitation, the PATRIOT Act.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

    	 	-38-	 

     

    

 

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

 

	 	COOPER RECEIVABLES LLC, as Seller
	 	 	 
	 	By:	/s/ Gerald C. Bialek
	 	Name:	Gerald C. Bialek
	 	Title:	President and Treasurer

 

	 	Address:	Cooper Receivables LLC
	 	 	c/o Cooper Tire & Rubber Company
	 	 	701 Lima Avenue
	 	 	Findlay, Ohio 45840
	 	 	Attention: Vice President and Treasurer
	 	 	Fax: (419) 424-7320
	 	 	Email: Cooper_Legal@coopertire.com
	 	 	 
	 	 	With a copy:
	 	 	Cooper Receivables LLC
	 	 	c/o Cooper Tire & Rubber Company
	 	 	701 Lima Avenue
	 	 	Findlay, Ohio 45840
	 	 	Attention: Vice President and Treasurer
	 	 	Fax: (419) 429-6785
	 	 	Email: Treasury@coopertire.com

 

    
	 	S-1	Receivables Purchase Agreement
 (Cooper Tire)

     

    

 

	 	COOPER TIRE & RUBBER COMPANY, as Servicer
	 	 	 
	 	By:	/s/ Ginger M. Jones
	 	Name:	Ginger M. Jones
	 	Title:	Senior Vice President and Chief Financial Officer

 

	 	Address:	Cooper Receivables LLC
	 	 	c/o Cooper Tire & Rubber Company
	 	 	701 Lima Avenue
	 	 	Findlay, Ohio 45840
	 	 	Attention: Vice President and Treasurer
	 	 	Fax: (419) 424-7320
	 	 	Email: Cooper_Legal@coopertire.com
	 	 	 
	 	 	With a copy:
	 	 	Cooper Receivables LLC
	 	 	c/o Cooper Tire & Rubber Company
	 	 	701 Lima Avenue
	 	 	Findlay, Ohio 45840
	 	 	Attention: Vice President and Treasurer
	 	 	Fax: (419) 429-6785
	 	 	Email: Treasury@coopertire.com

 

    
	 	S-2	Receivables Purchase Agreement
 (Cooper Tire)

     

    

 

	 	THE PURCHASER GROUPS:
	 	 
	 	PNC BANK, NATIONAL ASSOCIATION, as Purchaser Agent and Related Committed Purchaser
	 	 	 
	 	By:	/s/ Michael Brown
	 	Name:	Michael Brown
	 	Title:	Senior Vice President

 

	 	Address:	PNC Bank, National Association
	 	 	Three PNC Plaza
	 	 	225 Fifth Avenue
	 	 	Pittsburgh, PA 15222-2707
	 	 	 
	 	 	Attn:  Robyn Reeher
	 	 	Tel:  412-768-3090
	 	 	Fax:  412-762-9184
	 	 	Email:  robyn.reeher@pnc.com

 

    
	 	S-3	Receivables Purchase Agreement
 (Cooper Tire)

     

    

 

	 	PNC BANK, NATIONAL ASSOCIATION, as the LC Bank and as an LC Participant
	 	 	 
	 	By:	/s/ Michael Brown
	 	Name:	Michael Brown
	 	Title:	Senior Vice President

 

	 	Address:	PNC Bank, National Association
	 	 	Three PNC Plaza
	 	 	225 Fifth Avenue
	 	 	Pittsburgh, PA 15222-2707
	 	 	 
	 	 	Attn:  Robyn Reeher
	 	 	Tel:  412-768-3090
	 	 	Fax:  412-762-9184
	 	 	Email:  robyn.reeher@pnc.com

 

	 	PNC BANK, NATIONAL ASSOCIATION, as Administrator
	 	 	 
	 	By:	/s/ Michael Brown
	 	Name:	Michael Brown
	 	Title:	Senior Vice President

 

	 	Address:  	Address:  PNC Bank, National Association
	 	 	Three PNC Plaza
	 	 	225 Fifth Avenue
	 	 	Pittsburgh, PA 15222-2707
	 	 	 
	 	 	Attn:  Robyn Reeher
	 	 	Tel:  412-768-3090
	 	 	Fax:  412-762-9184
	 	 	Email:  robyn.reeher@pnc.com

 

    
	 	S-4	Receivables Purchase Agreement
 (Cooper Tire)

     

    

 

EXHIBIT I

DEFINITIONS

 

As used in this Agreement
(including its Exhibits, Schedules and Annexes), the following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined). Unless otherwise indicated, all Section, Annex, Exhibit
and Schedule references in this Exhibit are to Sections of and Annexes, Exhibits and Schedules to this Agreement.

 

“Adjusted Canadian
Dollar Receivables Balance” means, as of any date of determination, to the U.S. Dollar Equivalent of the aggregate Outstanding
Balance of Receivables payable in Canadian Dollars.

 

“Adjusted LC Participation
Amount” means, at any time, the greater of (i) LC Participation Amount less the amount of cash collateral held in the
LC Collateral Account at such time and (ii) zero ($0).

 

“Administrator”
has the meaning set forth in the preamble to this Agreement.

 

“Adverse Claim”
means a lien, security interest or other charge or encumbrance, or any other type of preferential arrangement; it being understood
that any thereof in favor of the Administrator (for the benefit of the Purchasers ) shall not constitute an Adverse Claim.

 

“Affected Person”
has the meaning set forth in Section 1.7 of this Agreement.

 

“Affiliate”
means, as to any Person: (a) any Person that, directly or indirectly, is in control of, is controlled by or is under common control
with such Person, or (b) who is a director or officer: (i) of such Person or (ii) of any Person described in clause (a),
except that, in the case of each Conduit Purchaser, Affiliate shall mean the holder of its capital stock or membership interest,
as the case may be. For purposes of this definition, control of a Person shall mean the power, direct or indirect: (x) to vote
25% or more of the securities having ordinary voting power for the election of directors of such Person, or (y) to direct or cause
the direction of the management and policies of such Person, in either case whether by ownership of securities, contract, proxy
or otherwise.

 

“Aggregate Capital”
means, at any time, the aggregate outstanding Capital of all Purchasers at such time.

 

“Aggregate Discount”
at any time, means the sum of the aggregate for each Purchaser of the accrued and unpaid Discount with respect to each such Purchaser’s
Capital at such time.

 

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

 

    	 	I-1	 

     

    

 

“Alternate Rate”
for any Yield Period for any Portion of Capital funded by any Purchaser other than through the issuance of Notes, means an interest
rate per annum equal to (i) solely with respect to PNC, as a Purchaser, either: (a) with respect to any day during such Yield Period,
LMIR for such day or (b) if LMIR is unavailable pursuant to Section 1.11, the Base Rate for such Yield Period or (ii) with respect
to any Purchaser other than PNC, the greater of: (a) 4.00% per annum above the Euro-Rate for such Yield Period, or (b) the Base
Rate for such Yield Period; provided, that the “Alternate Rate” for any day while a Termination Event or an Unmatured
Termination Event exists shall be an interest rate equal to the greater of (i) 2.0% per annum above the Base Rate in effect on
such day and (ii) the “Alternate Rate” as calculated in clause (i)(a) or (ii)(a), as applicable, above.

 

“Anti-Terrorism
Laws” means any Applicable Law relating to terrorism, trade sanctions programs and embargoes, import/export licensing,
money laundering or bribery, and any regulation, order, or directive promulgated, issued or enforced pursuant to such Applicable
Laws, all as amended, supplemented or replaced from time to time.

 

“Applicable Law”
means, with respect to any Person, (x) all provisions of law, statute, treaty, constitution, ordinance, rule, regulation, requirement,
restriction, permit, executive order, certificate, decision, directive or order of any Governmental Authority applicable to such
Person or any of its property and (y) all judgments, injunctions, orders, writs, decrees and awards of all courts and arbitrators
in proceedings or actions in which such Person is a party or by which any of its property is bound.

 

“Assumption Agreement”
means an agreement substantially in the form set forth in Annex C to this Agreement.

 

“Attorney Costs”
means and includes all reasonable fees and disbursements of any law firm or other external counsel, the reasonable allocated cost
of internal legal services and all reasonable disbursements of internal counsel.

 

“Bankruptcy Code”
means the United States Bankruptcy Reform Act of 1978 (11 U.S.C. § 101, et seq.), as amended from time to time.

 

“Base Rate”
means, with respect to any Purchaser, for any day, a fluctuating interest rate per annum as shall be in effect from time to time,
which rate shall be at all times equal to the higher of:

 

(a)          the
rate of interest in effect for such day as publicly announced from time to time by the applicable Purchaser Agent (or applicable
Related Committed Purchaser) as its “reference rate”. Such “reference rate” is set by the applicable Purchaser
Agent based upon various factors, including the applicable Purchaser Agent’s costs and desired return, general economic conditions
and other factors, and is used as a reference point for pricing some loans, which may be priced at, above or below such announced
rate, and

 

(b)          0.50%
per annum above the latest Federal Funds Rate.

 

“Benefit Plan”
means any employee benefit pension plan as defined in Section 3(2) of ERISA in respect of which the Seller, any Originator, Cooper
Tire or any ERISA Affiliate is, or at any time during the immediately preceding six years was, an “employer” as defined
in Section 3(5) of ERISA.

 

    	 	I-2	 

     

    

 

“Business Day”
means any day (other than a Saturday or Sunday) on which: (a) banks are not authorized or required to close in Pittsburgh, Pennsylvania,
or New York City, New York, and (b) if this definition of “Business Day” is utilized in connection with the Euro-Rate
or LMIR, dealings are carried out in the London interbank market.

 

“CAD Lock-Box
Account” means that certain account maintained at JPMorgan Chase Bank, N.A. (Canada), which is subject to a Lock-Box
Agreement for the purpose of receiving Collections.

 

“Canadian Currency
Volatility Reserve” means the value at risk percentage calculated by PNC Bank, National Association from time to time,
and which shall initially be 8.50%, multiplied by an amount equal to the Adjusted Canadian Dollar Receivables Balance.

 

“Canadian Dollars”
means the lawful currency of Canada.

 

“Capital”
means, with respect to any Purchaser, without duplication, the aggregate amounts (i) paid to, or on behalf of, the Seller in connection
with all Funded Purchases made by such Purchaser pursuant to Section 1.2(b) of this Agreement, (ii) paid by such Purchaser,
as an LC Participant, to the LC Bank in respect of a Participation Advance made by such Purchaser to LC Bank pursuant to Section
1.15 and (iii) with respect to the Purchaser that is the LC Bank, paid by the LC Bank with respect to all drawings under the
Letter of Credit to the extent such drawings have not been reimbursed by the Seller or funded by Participation Advances, in each
case, as reduced from time to time by Collections distributed to such Purchaser (or its Purchaser Agent on its behalf) and applied
on account of such Capital pursuant to Section 1.4(d) of this Agreement; provided, that if such Capital shall have
been reduced by any distribution and thereafter all or a portion of such distribution is rescinded or must otherwise be returned
for any reason, such Capital shall be increased by the amount of such rescinded or returned distribution as though it had not been
made.

 

“Change in Control”
means that Cooper Tire ceases to own, directly or indirectly, (a) 100% of the membership interests of the Seller free and clear
of all Adverse Claims or (b) 100% of the voting stock of any other Originator.

 

“Change in Law”
means the occurrence, after the Restatement Date, of any of the following: (a) the adoption or taking effect of any law, rule,
regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation
or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive
(whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to
the contrary, (w) the final rule titled Risk-Based Capital Guidelines; Capital Adequacy Guidelines; Capital Maintenance: Regulatory
Capital; Impact of Modifications to Generally Accepted Accounting Principles; Consolidation of Asset-Backed Commercial Paper Programs;
and Other Related Issues, adopted by the United States bank regulatory agencies on December 15, 2009, (x) the Dodd-Frank Wall
Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection
therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel
Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities,
in each case pursuant to the agreements reached by the Basel Committee on Banking Supervision in “Basel III: A Global Regulatory
Framework for More Resilient Banks and Banking Systems” (as amended, supplemented or otherwise modified or replaced from
time to time), shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued.

 

    	 	I-3	 

     

    

 

“Closing Date”
means September 14, 2007.

 

“Collections”
means, with respect to any Pool Receivable: (a) all funds that are received by any Originator, Cooper Tire, the Seller or the Servicer
in payment of any amounts owed in respect of such Receivable (including purchase price, finance charges, interest and all other
charges), or applied to amounts owed in respect of such Receivable (including insurance payments and net proceeds of the sale or
other disposition of repossessed goods or other collateral or property of the related Obligor or any other Person directly or indirectly
liable for the payment of such Pool Receivable and available to be applied thereon), (b) all Deemed Collections and (c) all other
proceeds of such Pool Receivable.

 

“Commitment”
means, with respect to any Related Committed Purchaser, LC Participant or LC Bank, as applicable, the maximum aggregate amount
which such Purchaser is obligated to pay hereunder on account of all Funded Purchases and all drawings under all Letters of Credit,
on a combined basis, as set forth on Schedule V to this Agreement or in the Assumption Agreement or other agreement pursuant
to which it became a Purchaser, as such amount may be modified in connection with any subsequent assignment pursuant to Section 6.3(c)
or in connection with a change in the Purchase Limit pursuant to Section 1.1(c). If the context so requires, “Commitment”
also refers to a Purchaser’s obligation to make Purchases, make Participation Advances and/or issue Letters of Credit hereunder.

 

“Commitment
Percentage” means, for each Related Committed Purchaser or related LC Participant in a Purchaser Group, the Commitment
of such Related Committed Purchaser or related LC Participant, as the case may be, divided by the total of all Commitments of all
Related Committed Purchasers or related LC Participants, as the case may be, in such Purchaser Group.

 

“Company Note”
has the meaning set forth in Section 3.1 of the Sale Agreement.

 

“Concentration
Percentage” means, at any time: (a) for any Group A Obligor, 20.0%, (b) for any Group B Obligor, 20.0%, (c) for any Group
C Obligor, 13.3% and (d) for any Group D Obligor, 8.0%; provided, however, that the Administrator (with the prior
written consent of the Majority Purchaser Agents ) may (to the extent the Rating Agency Condition has been satisfied with respect
thereto if required by the securitization program of any Conduit Purchaser) approve higher Concentration Percentages for selected
Obligors.

 

“Concentration
Reserve” means at any time, the product of (a) the sum of (i) the Aggregate Capital plus (ii) the Adjusted LC Participation
Amount, multiplied by (b)(i) the Concentration Reserve Percentage divided by (ii) 1, minus the Concentration Reserve Percentage.

 

    	 	I-4	 

     

    

  

“Concentration
Reserve Percentage” means, at any time, the (a) largest of the following: (i) the sum of the five (5) largest Group D
Obligor Receivables balances (up to the Concentration Percentage for each Obligor), (ii) the sum of the three (3) largest Group
C Obligor Receivables balances (up to the Concentration Percentage for each Obligor), (iii) the sum of the two (2) largest Group
B Obligor Receivables balances (up to the Concentration Percentage for each Obligor), and (iv) the largest Group A Obligor Receivables
balance (up to the Concentration Percentage for such Obligor), divided by (b) the sum of the outstanding balances of all Eligible
Receivables.

 

“Conduit Purchasers”
means each commercial paper conduit that is a party to this Agreement, as a purchaser, or that becomes a party to this Agreement,
as a purchaser pursuant to an Assumption Agreement or otherwise.

 

“Contract”
means, with respect to any Receivable, any and all contracts, instruments, agreements, leases, invoices, notes or other writings
pursuant to which such Receivable arises or that evidence such Receivable or under which an Obligor becomes or is obligated to
make payment in respect of such Receivable.

 

“Cooper Tire”
has the meaning set forth in the preamble to this Agreement.

 

“Covered Entity”
shall mean (a) each of Seller, Servicer, each Originator and each of Cooper Tire’s Subsidiaries and (b) each Person that,
directly or indirectly, is in control of a Person described in clause (a) above. For purposes of this definition, control of a
Person shall mean the direct or indirect (x) ownership of, or power to vote, 25% or more of the issued and outstanding equity interests
having ordinary voting power for the election of directors of such Person or other Persons performing similar functions for such
Person, or (y) power to direct or cause the direction of the management and policies of such Person whether by ownership of equity
interests, contract or otherwise.

 

“CP Rate”
means, for any Conduit Purchaser and for any Yield Period for any Portion of Capital (a) the per annum rate equivalent to
the weighted average cost (as determined by the applicable Purchaser Agent and which shall include commissions of placement agents
and dealers, incremental carrying costs incurred with respect to Notes of such Person maturing on dates other than those on which
corresponding funds are received by such Conduit Purchaser, other borrowings by such Conduit Purchaser (other than under any Program
Support Agreement) and any other costs associated with the issuance of Notes) of or related to the issuance of Notes that are allocated,
in whole or in part, by the applicable Purchaser Agent to fund or maintain such Portion of Capital (and which may be also allocated
in part to the funding of other assets of such Conduit Purchaser); provided, however, that if any component of such
rate is a discount rate, in calculating the “CP Rate” for such Portion of Capital for such Yield Period, the
applicable Purchaser Agent shall for such component use the rate resulting from converting such discount rate to an interest bearing
equivalent rate per annum; provided, further, that notwithstanding anything in this Agreement or the other
Transaction Documents to the contrary, the Seller agrees that any amounts payable to the Purchasers in respect of Discount for
any Yield Period with respect to any Portion of Capital funded by such Purchaser at the CP Rate shall include an amount equal to
the portion of the face amount of the outstanding Notes issued to fund or maintain such Portion of Capital that corresponds to
the portion of the proceeds of such Notes that was used to pay the interest component of maturing Notes issued to fund or maintain
such Portion of Capital, to the extent that such Purchaser had not received payments of interest in respect of such interest component
prior to the maturity date of such maturing Notes (for purposes of the foregoing, the “interest component” of Notes
equals the excess of the face amount thereof over the net proceeds received by such Purchaser from the issuance of Notes, except
that if such Notes are issued on an interest-bearing basis its “interest component” will equal the amount of interest
accruing on such Notes through maturity) or (b) any other rate designated as the “CP Rate” for such Conduit Purchaser
in an Assumption Agreement or Transfer Supplement pursuant to which such Person becomes a party as a Conduit Purchaser to this
Agreement, or any other writing or agreement provided by such Conduit Purchaser to the Seller, the Servicer and the applicable
Purchaser Agent from time to time. The “CP Rate” for any day while a Termination Event or an Unmatured Termination
Event exists shall be an interest rate equal to the greater of (a) 2.0% per annum above the Base Rate as in effect on such
day and (b) the Alternate Rate as calculated in the definition thereof.

 

    	 	I-5	 

     

    

  

“Credit and
Collection Policy” means, as the context may require, those receivables credit and collection policies and practices
of each Originator and of Cooper Tire in effect on the date of this Agreement and described in Schedule I to this Agreement,
as modified in compliance with this Agreement.

 

“Cut-off Date”
has the meaning set forth in Section 1.1(a) the Sale Agreement.

 

“Days’
Sales Outstanding” means, for any calendar month, an amount computed as of the last day of such calendar month equal
to: (a) the average of the Outstanding Balance of all Pool Receivables as of the last day of each of the three most recent calendar
months ended on the last day of such calendar month divided by (b)(i) the aggregate initial Outstanding Balance of all Pool Receivables
generated by the Originators during the three calendar months ended on the last day of such calendar month divided by (ii) 90.

 

“Debt”
means: (a) indebtedness for borrowed money, (b) obligations evidenced by bonds, debentures, notes or other similar instruments,
(c) obligations to pay the deferred purchase price of property or services, (d) obligations as lessee under leases that shall have
been or should be, in accordance with generally accepted accounting principles, recorded as capital leases, and (e) obligations
under direct or indirect guaranties in respect of, and obligations (contingent or otherwise) to purchase or otherwise acquire,
or otherwise to assure a creditor against loss in respect of, indebtedness or obligations of others of the kinds referred to in
clauses (a) through (d).

 

“Declining
Conduit Purchaser” has the meaning set forth in Section 1.4(b)(ii) of this Agreement.

 

“Declining
Notice” has the meaning set forth in Section 1.4(b)(ii) of this Agreement.

 

“Deemed Collections”
has the meaning set forth in Section 1.4(e)(ii) of this Agreement.

 

“Default Ratio”
means the ratio (expressed as a percentage and rounded to the nearest 1/100 of 1%) computed as of the last day of each calendar
month by dividing: (i) the aggregate Outstanding Balance of all Pool Receivables that became Defaulted Receivables during such
month (other than Receivables that became Defaulted Receivables as a result of an Event of Bankruptcy with respect to the Obligor
thereof during such month) by (ii) the sum of (a) 75% of the initial Outstanding Balance of all Pool Receivables generated by all
the Originators during the calendar month that is seven months before such month and (b) 25% of the aggregate initial Outstanding
Balance of all Pool Receivables generated by all the Originators during the calendar month that is nine months before such month.

 

    	 	I-6	 

     

    

  

“Defaulted
Receivable” means a Receivable:

 

(a)          as
to which any payment, or part thereof, remains unpaid for more than 60 days from the original due date for such payment, or

 

(b)          without
duplication (i) as to which an Event of Bankruptcy shall have occurred with respect to the Obligor thereof or any other Person
obligated thereon or owning any Related Security with respect thereto, or (ii) that has been written off the Seller’s books
as uncollectible.

 

“Delinquency
Ratio” means the ratio (expressed as a percentage and rounded to the nearest 1/100 of 1%, with 5/1000th of 1% rounded
upward) computed as of the last day of each calendar month by dividing: (a) the aggregate Outstanding Balance of all Pool Receivables
that were Delinquent Receivables on such day by (b) the aggregate Outstanding Balance of all Pool Receivables on such day.

 

“Delinquent
Receivable” means a Receivable as to which any payment, or part thereof, remains unpaid for more than 60 days from the
original due date for such payment.

 

“Determination
Date” means, with respect to any calendar month, the last Business Day of such calendar month.

 

“Dilution
Horizon” means, for any calendar month, the ratio (expressed as a percentage and rounded to the nearest 1/100th of 1%)
computed as of the last day of such calendar month of: (a) the aggregate initial Outstanding Balance of all Pool Receivables generated
by all the Originators during the two most recent calendar months, to (b) the Net Receivables Pool Balance at the last day of such
calendar month.

 

“Dilution
Ratio” means the ratio (expressed as a percentage and rounded to the nearest 1/100th of 1%, with 5/1000th of 1% rounded
upward), computed as of the last day of each calendar month by dividing: (a) the aggregate amount of payments made or owed by the
Seller pursuant to Section 1.4(e)(i) of this Agreement (other than amounts related to the Specifically Reserved Dilution
Amount) during such calendar month by (b) the aggregate initial Outstanding Balance of all Pool Receivables generated by all the
Originators during the calendar month that is two months prior to such calendar month.

 

“Dilution
Reserve” means, on any day, an amount equal to: (a) the sum of the Aggregate Capital plus the Adjusted LC Participation
Amount at the close of business of the Servicer on such day multiplied by (b) (i) the Dilution Reserve Percentage on such
day, divided by (ii) 100% minus the Dilution Reserve Percentage on such day.

 

“Dilution
Reserve Percentage” means, on any date, the product of (a) the Dilution Horizon multiplied by (b) the sum of (i) 2.5
times the average of the Dilution Ratios for the twelve most recent calendar months and (ii) the Dilution Spike Factor.

 

    	 	I-7	 

     

    

  

“Dilution
Spike Factor” means, for any calendar month, the product of (a) the positive difference, if any, between: (i) the highest
Dilution Ratio for any calendar month during the twelve most recent calendar months and (ii) the arithmetic average of the Dilution
Ratios for such twelve months and (b) (i) the highest Dilution Ratio for any calendar month during the twelve most recent calendar
months, divided by (ii) the arithmetic average of the Dilution Ratios for such twelve months.

 

“Discount”
means with respect to any Purchaser:

 

(a)          for
any Portion of Capital for any Yield Period with respect to any Purchaser to the extent such Portion of Capital will be funded
by such Purchaser during such Yield Period through the issuance of Notes:

 

CPR x C x ED/360 + YPF

 

(b)          for
any Portion of Capital for any Yield Period with respect to any Purchaser to the extent such Portion of Capital will not be funded
by such Purchaser during such Yield Period through the issuance of Notes:

 

AR x C x ED/Year + YPF

 

where:

 

	AR	=	the Alternate Rate for such Portion of Capital for such Yield Period with respect to such Purchaser,
	 	 	 
	C	=	the Capital with respect to such Portion of Capital during such Yield Period with respect to such Purchaser,
	 	 	 
	CPR	=	the CP Rate for the Portion of Capital for such Yield Period with respect to such Purchaser,
	 	 	 
	ED	=	the actual number of days during such Yield Period,
	 	 	 
	Year	=	if such Portion of Capital is funded based upon: (i) the Euro-Rate or LMIR, 360 days, and (ii) the Base Rate, 365 or 366 days, as applicable, and
	 	 	 
	YPF	=	the Yield Protection Fee, if any, for the Portion of Capital for such Yield Period with respect to such Purchaser;

 

provided, that no provision of this
Agreement shall require the payment or permit the collection of Discount in excess of the maximum permitted by applicable law;
and provided further, that Discount for any Portion of Capital shall not be considered paid by any distribution to the extent
that at any time all or a portion of such distribution is rescinded or must otherwise be returned for any reason.

 

“Drawing Date”
has the meaning set forth in Section 1.15(a) of the Agreement.

 

    	 	I-8	 

     

    

  

“Eligible
Assignee” means any bank or financial institution acceptable to the LC Bank and the Administrator.

 

“Eligible
Foreign Obligor” means an Obligor which is a resident of any country (other than the United States of America) that has
a short-term foreign currency rating (or, if such country does not have such a short-term foreign currency rating, a long-term
foreign currency rating) of at least “A-1” (or “A”) by Standard & Poor’s and “P-1”
(or “A2”) by Moody’s.

 

“Eligible
Receivable” means, at any time, a Pool Receivable:

 

(a)          the
Obligor of which is (i) a United States resident, a Canadian resident or an Eligible Foreign Obligor ; provided that with respect
to any Receivable the Obligor of which is a Canadian resident or an Eligible Foreign Obligor, the Seller shall have taken all actions,
at its own expense, and shall have delivered (or caused to be delivered) to the Administrator all further instruments, opinions
and documents, that may be necessary or desirable in the sole determination of the Administrator, as the Administrator may reasonably
request, to perfect, protect or more fully evidence such Receivable and the security interest granted therein and in the Related
Security and Collections with respect thereto, or to enable the Administrator, any Purchaser Agent or any Purchaser to exercise
and enforce their respective rights and remedies under this Agreement, (ii) not subject to any action of the type described in
paragraph (f) of Exhibit V to this Agreement and (iii) is neither an Affiliate of Cooper Tire or any Affiliate of
Cooper Tire nor a Sanctioned Person.

 

(b)          that
is denominated and payable either (i) in U.S. dollars and the Obligor with respect to which has been instructed to remit Collections
in respect thereof to a Lock-Box Account in the United States of America or (ii) in Canadian Dollars and the Obligor with respect
to which has been instructed to remit Collections in respect thereof to the CAD Lock-Box Account, as the case may be.

 

(c)          that
does not have a stated maturity which is more than 360 days after the original invoice date of such Receivable,

 

(d)          that
arises under a duly authorized Contract for the sale and delivery of goods and services in the ordinary course of an Originator’s
business,

 

(e)          that
arises under a duly authorized Contract that is in full force and effect and that is a legal, valid and binding obligation of the
related Obligor, enforceable against such Obligor in accordance with its terms,

 

(f)           that
conforms in all material respects with all applicable laws, rulings and regulations in effect,

 

(g)          that
is not the subject of any asserted dispute, offset, hold back, defense, Adverse Claim or other claim,

 

    	 	I-9	 

     

    

  

(h)          that
satisfies all applicable requirements of the applicable Credit and Collection Policy,

 

(i)           that
has not been modified, waived or restructured since its creation, except as permitted pursuant to Section 4.2 of this Agreement,

 

(j)           in
which the Seller owns good and marketable title, free and clear of any Adverse Claims, and that is freely assignable by the Seller
(including without any consent of the related Obligor),

 

(k)          for
which the Administrator (for the benefit of each Purchaser) shall have a valid and enforceable undivided percentage ownership or
security interest, to the extent of the Purchased Interest, and a valid and enforceable first priority perfected security interest
therein and in the Related Security and Collections with respect thereto, in each case free and clear of any Adverse Claim,

 

(l)           that
constitutes an account as defined in the UCC, and that is not evidenced by instruments or chattel paper,

 

(m)         that
is not a Defaulted Receivable or a Delinquent Receivable,

 

(n)          for
which none of the Originator thereof, the Seller and the Servicer has established any offset arrangements with the related Obligor,

 

(o)          for
which Defaulted Receivables of the related Obligor do not exceed 35% of the Outstanding Balance of all such Obligor’s
Receivables, and

 

(p)          that
represents amounts earned and payable by the Obligor that are not subject to the performance of additional services by the Originator
thereof.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time to time, and any successor statute of similar import,
together with the regulations thereunder, in each case as in effect from time to time. References to sections of ERISA also refer
to any successor sections.

 

“ERISA Affiliate”
means: (a) any corporation that is a member of the same controlled group of corporations (within the meaning of Section 414(b)
of the Internal Revenue Code) as the Seller, any Originator or Cooper Tire, (b) a trade or business (whether or not incorporated)
under common control (within the meaning of Section 414(c) of the Internal Revenue Code) with the Seller, any Originator or Cooper
Tire, or (c) a member of the same affiliated service group (within the meaning of Section 414(m) of the Internal Revenue Code)
as the Seller, any Originator, any corporation described in clause (a) or any trade or business described in clause (b).

 

    	 	I-10	 

     

    

  

“Euro-Rate”
means with respect to any Yield Period, the greater of (a) 0.00% and (b) the interest rate per annum determined by the applicable
Purchaser Agent by dividing (the resulting quotient rounded upwards, if necessary, to the nearest 1/100th of 1% per annum) (i)
the rate of interest determined by such Purchaser Agent in accordance with its usual procedures (which determination shall be conclusive
absent manifest error) to be the rate per annum for deposits in U.S. dollars as reported by Bloomberg Finance L.P. and shown on
US0001M Screen as the composite offered rate for London interbank deposits for such period (or on any successor or substitute page
of such service, or any successor to or substitute for such service, providing rate quotations comparable to those currently provided
on such page of such service, as determined by such Purchaser Agent from time to time for purposes of providing quotations of interest
rates applicable to dollar deposits in the London interbank market) at or about 11:00 a.m. (London time) on the Business Day which
is two (2) Business Days prior to the first day of such Yield Period for an amount comparable to the Portion of Capital to be funded
at the Yield Rate and based upon the Euro-Rate during such Yield Period by (ii) a number equal to 1.00 minus the Euro-Rate Reserve
Percentage. The Euro-Rate may also be expressed by the following formula:

 

	Euro-Rate =	
        Composite of London interbank
        offered rates shown on

        Bloomberg Finance L.P.
        Screen US0001M

        or appropriate successor

         

	 

                                                      1.00 - Euro-Rate Reserve Percentage

 

where “Euro-Rate
Reserve Percentage” means, the maximum effective percentage in effect on such day as prescribed by the Board of Governors
of the Federal Reserve System (or any successor) for determining the reserve requirements (including without limitation, supplemental,
marginal, and emergency reserve requirements) with respect to eurocurrency funding (currently referred to as “Eurocurrency
Liabilities”). The Euro-Rate shall be adjusted with respect to any Portion of Capital funded at the Yield Rate and based
upon the Euro-Rate that is outstanding on the effective date of any change in the Euro-Rate Reserve Percentage as of such effective
date. The applicable Purchaser Agent shall give prompt notice to the Seller of the Euro-Rate as determined or adjusted in accordance
herewith (which determination shall be conclusive absent manifest error).

 

“Event of
Bankruptcy” means an Insolvency Proceeding.

 

“Excess Concentration”
means the sum of the amounts by which the Outstanding Balance of Eligible Receivables of each Obligor then in the Receivables Pool
exceeds, without duplication, an amount equal to the sum of:

 

(i)           an amount
equal to (a) the applicable Concentration Percentage for such Obligor multiplied by (b) the Outstanding Balance of all Eligible
Receivables then in the Receivables Pool, plus

 

(ii)          the
amount by which the aggregate Outstanding Balance of all Eligible Receivables then in the Receivables Pool that are denominated
in Canadian Dollars exceeds 10.0% of the aggregate Outstanding Balance of all Eligible Receivables then in the Receivables Pool,
plus

 

    	 	I-11	 

     

    

  

(iii)         the
amount by which the aggregate Outstanding Balance of all Eligible Receivables then in the Receivables Pool the Obligor of which
is an Eligible Foreign Obligor exceeds 5.0% of the aggregate Outstanding Balance of all Eligible Receivables then in the Receivables
Pool, plus

 

(iv)         the
amount by which the aggregate Outstanding Balance of all Eligible Receivables then in the Receivables Pool that have a stated maturity
which is more than 120 days but less than 361 days after the original invoice date of such Receivable exceeds 35.0% of the aggregate
Outstanding Balance of all Eligible Receivables then in the Receivables Pool, plus

 

(v)          the amount
by which the aggregate Outstanding Balance of all Eligible Receivables then in the Receivables Pool the Obligor of which is a governmental
entity exceeds 2.0% of the aggregate Outstanding Balance of all Eligible Receivables then in the Receivables Pool.

 

“Exiting Notice”
has the meaning set forth in Section 1.4(b)(ii) of this Agreement.

 

“Exiting Purchaser”
has the meaning set forth in Section 1.4(b)(ii) of this Agreement.

 

“Facility
Termination Date” means the earliest to occur of: (a) with respect to each Purchaser, February 12, 2021, subject to
any extension pursuant to Section 1.22 of this Agreement (it being understood that if any such Purchaser does not extend
its Commitment hereunder then the Purchase Limit shall be reduced ratably with respect to the Purchasers in each Purchaser Group
by an amount equal to the Commitment of such Exiting Purchaser and the Commitment Percentages and Group Commitments of the Purchasers
within each Purchaser Group shall be appropriately adjusted), (b) the date determined pursuant to Section 2.2 of this Agreement,
(c) the date the Purchase Limit reduces to zero pursuant to Section 1.1(c) of this Agreement, (d) [Reserved], (e) with
respect to each Purchaser Group, the date that the commitment, of all of the Related Committed Purchasers of such Purchaser Group
terminate pursuant to Section 1.22 and (f) the date which is 60 days after the date on which the Administrator and
each Purchaser Agent has received written notice from the Seller of its election to terminate the Purchase Facility.

 

“Federal Funds
Rate” means, for any day, the per annum rate set forth in the weekly statistical release designated as H.15(519), or
any successor publication, published by the Federal Reserve Board (including any such successor, “H.15(519)”) for such
day opposite the caption “Federal Funds (Effective).” If on any relevant day such rate is not yet published in H.15(519),
the rate for such day will be the rate set forth in the daily statistical release designated as the Composite 3:30 p.m. Quotations
for U.S. Government Securities, or any successor publication, published by the Federal Reserve Bank of New York (including any
such successor, the “Composite 3:30 p.m. Quotations”) for such day under the caption “Federal Funds Effective
Rate.” If on any relevant day the appropriate rate is not yet published in either H.15(519) or the Composite 3:30 p.m. Quotations,
the rate for such day will be the arithmetic mean as determined by the Administrator of the rates for the last transaction in overnight
Federal funds arranged before 9:00 a.m. (New York City time) on that day by each of three leading brokers of Federal funds transactions
in New York City selected by the Administrator.

 

    	 	I-12	 

     

    

  

“Federal Reserve
Board” means the Board of Governors of the Federal Reserve System, or any entity succeeding to any of its principal functions.

 

“Fees”
means the fees payable by the Seller to each member of each Purchaser Group pursuant to the applicable Purchaser Group Fee Letter.

 

“Final Payout
Date” means the latest of (i) the Facility Termination Date, (ii) the date on which no Capital of or Discount in respect
of the Purchased Interest shall be outstanding, (iii) the LC Participation Amount has been reduced to zero ($0) and no Letters
of Credit issued hereunder remain outstanding and undrawn (unless backstopped in a manner agreed to in writing by the LC Bank and
the Majority Purchaser Agents in their sole and absolute discretion), (iv) the date all other amounts owing to the Purchaser Agents,
the Purchasers, the Administrator and the other Indemnified Parties and Affected Person under this Agreement and each of the other
Transaction Documents have been paid in full (other than indemnification or other contingent obligations not yet due and owing)
and (v) all accrued Servicing Fees have been paid in full.

 

“Funded Purchase”
shall mean a Purchase that is made pursuant to Section 1.2(b).

 

“GAAP”
means the generally accepted accounting principles and practices in the United States, consistently applied.

 

“Governmental
Authority” means the government of the United States, any other nation or any political subdivision thereof, whether
state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity (including any
supranational body, including the European Union and the European Central Bank) exercising executive, legislative, judicial, taxing,
regulatory or administrative powers or functions of or pertaining to government.

 

“Group A Obligor”
means any Obligor with a short-term rating of at least: (a) “A-1” by Standard & Poor’s, or if such Obligor
does not have a short-term rating from Standard & Poor’s, a rating of “A+” or better by Standard & Poor’s
on its long-term senior unsecured and uncredit-enhanced debt securities, and (b) “P-1” by Moody’s, or
if such Obligor does not have a short-term rating from Moody’s, “A1” or better by Moody’s on its long-term
senior unsecured and uncredit-enhanced debt securities.

 

“Group B Obligor”
means an Obligor, not a Group A Obligor, with a short-term rating of at least: (a) “A-2” by Standard & Poor’s,
or if such Obligor does not have a short-term rating from Standard & Poor’s, a rating of “BBB+” to “A”
by Standard & Poor’s on its long-term senior unsecured and uncredit-enhanced debt securities, and (b) “P-2”
by Moody’s, or if such Obligor does not have a short-term rating from Moody’s, “Baa1” to “A2”
by Moody’s on its long-term senior unsecured and uncredit-enhanced debt securities.

 

“Group C Obligor”
means an Obligor, not a Group A Obligor or Group B Obligor, with a short-term rating of at least: (a) “A-3” by Standard &
Poor’s, or if such Obligor does not have a short-term rating from Standard & Poor’s, a rating of “BBB-”
to “BBB” by Standard & Poor’s on its long-term senior unsecured and uncredit-enhanced debt securities, and
(b) “P-3” by Moody’s, or if such Obligor does not have a short-term rating from Moody’s, “Baa3”
to “Baa2” by Moody’s on its long-term senior unsecured and uncredit-enhanced debt securities.

 

    	 	I-13	 

     

    

  

“Group Capital”
means with respect to any Purchaser Group, an amount equal to the aggregate of all Capital of the Purchasers within such Purchaser
Group.

 

“Group Commitment”
means with respect to any Purchaser Group the aggregate of the Commitments of each Purchaser within such Purchaser Group, which
amount is set forth on Schedule V to this Agreement.

 

“Group D Obligor”
means any Obligor that is not a Group A Obligor, Group B Obligor or Group C Obligor.

 

“Indemnified
Amounts” has the meaning set forth in Section 3.1 of this Agreement.

 

“Indemnified
Party” has the meaning set forth in Section 3.1 of this Agreement.

 

“Independent
Director” has the meaning set forth in paragraph 3(c) of Exhibit IV to this Agreement.

 

“Information
Package” means each report, in substantially the form of Annex A to this Agreement, furnished by or on behalf
of the Servicer to the Administrator and each Purchaser Agent pursuant to this Agreement.

 

“Insolvency
Proceeding” means: (a) any case, action or proceeding before any court or other Governmental Authority relating to bankruptcy,
reorganization, insolvency, liquidation, receivership, dissolution, winding-up or relief of debtors, or (b) any general assignment
for the benefit of creditors, composition, marshaling of assets for creditors, or other similar arrangement in respect of its creditors
generally or any substantial portion of its creditors, in each case undertaken under U.S. Federal, state or foreign law, including
the Bankruptcy Code.

 

“Intercreditor
Agreement” means any intercreditor agreement entered into by PNC in its capacity as Administrator under the Agreement.

 

“Internal
Revenue Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor statute of similar
import, together with the regulations thereunder, in each case as in effect from time to time. References to sections of the Internal
Revenue Code also refer to any successor sections.

 

“LC Bank” has the meaning
set forth in the preamble to the Agreement.

 

“LC Collateral Account”
means the account designated as the LC Collateral Account established and maintained by the Administrator (for the benefit of the
LC Bank and the LC Participants), or such other account as may be so designated as such by the Administrator.

 

“LC Fee Expectation”
has the meaning set forth in Section 1.16(c) of the Agreement.

 

“LC Participant” has
the meaning set forth in the preamble to the Agreement.

 

“LC Participation Amount”
shall mean, at any time, the then aggregate undrawn face amount of all outstanding Letters of Credit.

 

    	 	I-14	 

     

    

  

“LCR Security” means
any commercial paper or security (other than equity securities issued to Cooper Tire or any Originator that is a consolidated subsidiary
of Cooper Tire under GAAP) within the meaning of Paragraph __.32(e)(viii) of the final rules titled Liquidity Coverage Ratio: Liquidity
Risk Measurement Standards, 79 Fed. Reg. 197, 61440 et seq. (October 10, 2014).

 

“Letter of Credit” shall
mean any stand-by letter of credit issued by the LC Bank for the account of the Seller (or for the account of an Originator, as
applicable) pursuant to the Agreement.

 

“Letter of Credit Application”
has the meaning set forth in Section 1.13(a) of the Agreement.

 

“Liquidity
Agent” means each of the banks acting as agent for the various Liquidity Providers under each Liquidity Agreement.

 

“Liquidity
Agreement” means any agreement entered into in connection with this Agreement pursuant to which a Liquidity Provider
agrees to make purchases or advances to, or purchase assets from, any Conduit Purchaser in order to provide liquidity for such
Conduit Purchaser’s Purchases.

 

“Liquidity
Provider” means each bank or other financial institution that provides liquidity support to any Conduit Purchaser pursuant
to the terms of a Liquidity Agreement.

 

“Lock-Box
Account” means each account listed on Schedule II to this Agreement and maintained at a bank or other financial
institution acting as a Lock-Box Bank pursuant to a Lock-Box Agreement for the purpose of receiving Collections.

 

“LMIR”
means for any day during any Yield Period, the greater of (a) 0.00% and (b) the one-month eurodollar rate for U.S. dollar deposits
as reported on the Reuters Screen LIBOR01 Page or any other page that may replace such page from time to time for the purpose of
displaying offered rates of leading banks for London interbank deposits in United States dollars, as of 11:00 a.m. (London time)
on such day, or if such day is not a Business Day, then the immediately preceding Business Day (or if not so reported, then as
determined by the Administrator from another recognized source for interbank quotation), in each case, changing when and as such
rate changes.

 

“Lock-Box
Agreement” means an agreement, among the Seller, the Servicer, a Lock-Box Bank and the Administrator, governing the terms
of the related Lock-Box Accounts, in each case acceptable to the Administrator.

 

“Lock-Box
Bank” means any of the banks or other financial institutions holding one or more Lock-Box Accounts.

 

“Loss Reserve”
means, on any date, an amount equal to (a) the sum of the Aggregate Capital plus the Adjusted LC Participation Amount at the close
of business of the Servicer on such date multiplied by (b)(i) the Loss Reserve Percentage on such date divided by (ii) 1, minus
the Loss Reserve Percentage on such date.

 

    	 	I-15	 

     

    

  

“Loss Reserve
Percentage” means, on any date, an amount equal to (a) the product of (i) 2.5 times the highest average of the Default
Ratios for any three consecutive calendar months during the twelve most recent calendar months, multiplied by (ii) the sum
of (A) the aggregate initial Outstanding Balance of all Pool Receivables generated by all Originators during the four most recent
calendar months and (B) on any day that Days’ Sales Outstanding is greater than 30.0, the product of (1) (x) Days’
Sales Outstanding on such date minus 30.0, divided by (y) 30.0, multiplied by (2) the aggregate initial Outstanding
Balance of all Pool Receivables generated by all Originators during the fifth most recent calendar month, divided by (b)
an amount equal to the Net Receivables Pool Balance as determined without giving effect to clause (i) of the definition
of Excess Concentration.

 

“Majority
Purchaser Agents” means, at any time, the Purchaser Agents which in their related Purchaser Group have Related Committed
Purchasers whose Commitments aggregate more than 50% of the aggregate of the Commitments of all Related Committed Purchasers in
all Purchaser Groups; provided, however, that so long as any one Related Committed Purchaser’s Commitment is
greater than 50% of the aggregate Commitments and there is more than one Purchaser Group, then “Majority Purchaser Agents”
shall mean a minimum of two Purchaser Agents which in their related Purchaser Group have Related Committed Purchasers whose Commitments
aggregate more than 50% of the aggregate Commitment of all Related Committed Purchasers in all Purchaser Groups.

 

“Material
Adverse Effect” means, relative to any Person with respect to any event or circumstance, a material adverse effect on:

 

(a)          the
assets, operations, business or financial condition of an Originator, Cooper Tire, the Seller or the Servicer,

 

(b)          the
ability of any of an Originator, Cooper Tire, the Seller or Servicer to perform its obligations under this Agreement or any other
Transaction Document to which it is a party,

 

(c)          the
validity or enforceability of any of the Transaction Documents, or the validity, enforceability or collectibility of the Pool Receivables,
or

 

(d)          the
status, perfection, enforceability or priority of the Administrator’s, any Purchaser’s or the Seller’s interest
in the Pool Assets.

 

“Minimum Dilution
Reserve” means at any time, the product of (a) the Aggregate Capital plus the Adjusted LC Participation Amount at the
close of business of the Servicer on such date multiplied by (b)(i) the Minimum Dilution Reserve Percentage divided by (ii) 1 minus
the Minimum Dilution Reserve Percentage.

 

“Minimum Dilution
Reserve Percentage” means, at any time, the product of (a) the 12-month rolling average of the Dilution Ratio at such
time multiplied by (b) the Dilution Horizon.

 

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

 

    	 	I-16	 

     

    

  

“Net Receivables
Pool Balance” means, at any time: (a) the Outstanding Balance of Eligible Receivables then in the Receivables Pool minus
(b) the Excess Concentration.

 

“Notes”
means short-term promissory notes issued, or to be issued, by any Conduit Purchaser to fund its investments in accounts receivable
or other financial assets.

 

“Obligor”
means, with respect to any Receivable, the Person obligated to make payments pursuant to the Contract relating to such Receivable.

 

“Order’
has the meaning set forth in Section 1.21 of the Agreement.

 

“Original
Agreement” has the meaning set forth in the preliminary statements of the Agreement.

 

“Original
Agreement Outstanding Amounts” has the meaning set forth in the preliminary statements of the Agreement.

 

“Originator”
means each Person from time to time party to the Sale Agreement as an Originator.

 

“Outstanding
Balance” of any Receivable at any time means the then outstanding principal balance thereof; provided, that any
amounts denominated and payable in Canadian Dollars shall be deemed to be the U.S. Dollar Equivalent of such amount at the time
of determination thereof.

 

“Participant”
has the meaning set forth in Section 6.3(b) of this Agreement.

 

“Pep Boys
Receivables” means accounts receivable that arise out of the sale of goods and services by Cooper Tire to The Pep Boys
– Manny, Moe and Jack (Company) and all proceeds and other rights with respect to such accounts receivable, including any
rights under any acknowledgment or confirmation by the related obligor with respect to such accounts receivable.

 

“Performance
Guaranty” means the Performance Guaranty, dated as of August 30, 2006, by Cooper Tire, as performance guarantor, in favor
of the Administrator for the benefit of the Purchasers and Purchaser Agents, as the same may be amended, restated, supplemented
or otherwise modified from time to time.

 

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

 

“PNC”
means PNC Bank, National Association.

 

“Pool Assets”
has the meaning set forth in Section 1.2(d) of this Agreement.

 

“Pool Receivable”
means a Receivable in the Receivables Pool.

 

    	 	I-17	 

     

    

  

“Portion of
Capital” means, with respect to any Purchaser and its related Capital, the portion of such Capital being funded or maintained
by such Purchaser by reference to a particular interest rate basis.

 

“Pro Rata
Share” shall mean, as to any LC Participant or LC Bank, a fraction, the numerator of which equals the Commitment of such
LC Participant or LC Bank at such time and the denominator of which equals the aggregate of the Commitments of all LC Participants
in such LC Participant’s related Purchaser Group and the LC Bank at such time.

 

“Program Support
Agreement” means and includes any Liquidity Agreement and any other agreement entered into by any Program Support Provider
providing for: (a) the issuance of one or more letters of credit for the account of any Conduit Purchaser, (b) the issuance of
one or more surety bonds for which the such Conduit Purchaser is obligated to reimburse the applicable Program Support Provider
for any drawings thereunder, (c) the sale by such Conduit Purchaser to any Program Support Provider of the Purchased Interest (or
portions thereof) maintained by such Conduit Purchaser and/or (d) the making of loans and/or other extensions of credit to any
Conduit Purchaser in connection with such Conduit Purchaser’s securitization program contemplated in this Agreement, together
with any letter of credit, surety bond or other instrument issued thereunder.

 

“Program Support
Provider” means and includes with respect to each Conduit Purchaser any Liquidity Provider and any other Person (other
than any customer of such Conduit Purchaser) now or hereafter extending credit or having a commitment to extend credit to or for
the account of, or to make purchases from, such Conduit Purchaser pursuant to any Program Support Agreement.

 

“Purchase”
has the meaning set forth in Section 1.1(a) of this Agreement.

 

“Purchase
and Sale Indemnified Amounts” has the meaning set forth in Section 9.1 of the Sale Agreement.

 

“Purchase
and Sale Indemnified Party” has the meaning set forth in Section 9.1 of the Sale Agreement.

 

“Purchase
and Sale Termination Date” has the meaning set forth in Section 1.4 of the Sale Agreement.

 

“Purchase
and Sale Termination Event” has the meaning set forth in Section 8.1 of the Sale Agreement.

 

“Purchase
Date” means the date of which a Purchase or a reinvestment is made pursuant to this Agreement.

 

“Purchase
Facility” has the meaning set forth in Section 1.1 of the Sale Agreement.

 

“Purchase
Limit” means $150,000,000, as such amount may be reduced pursuant to Section 1.1(c) of this Agreement or
otherwise in connection with any Exiting Purchaser. References to the unused portion of the Purchase Limit shall mean, at any time,
the Purchase Limit minus the sum of the then outstanding Aggregate Capital plus the LC Participation Amount.

 

    	 	I-18	 

     

    

  

“Purchase
Notice” has the meaning set forth in Section 1.2(a) to this Agreement.

 

“Purchased
Interest” means, at any time, the undivided percentage ownership interest in: (a) each and every Pool Receivable now
existing or hereafter arising, (b) all Related Security with respect to such Pool Receivables and (c) all Collections with respect
to, and other proceeds of, such Pool Receivables and Related Security. Such undivided percentage interest shall be computed as:

 

Aggregate Capital + Adjusted LC Participation
Amount + Total Reserves 

Net Receivables Pool Balance

 

The Purchased Interest shall be determined
from time to time pursuant to Section 1.3 of this Agreement.

 

“Purchaser”
means each Conduit Purchaser, each Related Committed Purchaser, each LC Participant and/or the LC Bank, as applicable.

 

“Purchaser
Agent” means each Person acting as agent on behalf of a Purchaser Group and designated as a Purchaser Agent for such
Purchaser Group on the signature pages to this Agreement or any other Person who becomes a party to this Agreement as a Purchaser
Agent pursuant to an Assumption Agreement or a Transfer Supplement.

 

“Purchaser
Group” means, (i) for any Conduit Purchaser, such Conduit Purchaser, its Related Committed Purchaser, its related Purchaser
Agent and its related LC Participants and (ii) for PNC, PNC, as a Purchaser Agent, a Related Committed Purchaser, an LC Participant
and the LC Bank.

 

“Purchaser
Group Fee Letter” has the meaning set forth in Section 1.5 of this Agreement.

 

“Purchasers’
Share” of any amount, at any time, means such amount multiplied by the Purchased Interest at such time.

 

“Purchasing
Related Committed Purchaser” has the meaning set forth in Section 6.3(c) of this Agreement.

 

“Ratable Share”
means, for each Purchaser Group, such Purchaser Group’s aggregate Commitments divided by the aggregate Commitments of all
Purchaser Groups.

 

“Rating Agency
Condition” means, when applicable, with respect to any material event or occurrence, receipt by the Administrator (or
the applicable Purchaser Agent) of written confirmation from each of Standard & Poor’s and Moody’s (and/or each
other rating agency then rating the Notes of the applicable Conduit Purchaser) that such event or occurrence shall not cause the
rating on the then outstanding Notes of any applicable Purchaser to be downgraded or withdrawn.

 

    	 	I-19	 

     

    

  

“Receivable”
means any indebtedness and other obligations owed to any Originator or the Seller or any right of the Seller or any Originator
to payment from or on behalf of an Obligor or any right to reimbursement for funds paid or advanced by the Seller or any Originator
on behalf of an Obligor, whether constituting an account, chattel paper, payment intangible, instrument or general intangible,
however arising (whether or not earned by performance), and includes, without limitation, the obligation to pay any finance charges,
fees and other charges with respect thereto; provided, that, the term Receivable shall not include Pep Boys Receivables.
Indebtedness and other obligations arising from any one transaction, including, without limitation, indebtedness and other obligations
represented by an individual invoice or agreement, shall constitute a Receivable separate from a Receivable consisting of the indebtedness
and other obligations arising from any other transaction.

 

“Receivables
Pool” means, at any time, all of the then outstanding Receivables purchased by the Seller pursuant to the Sale Agreement
prior to the Facility Termination Date.

 

“Reimbursement
Obligation” has the meaning set forth in Section 1.15(a) of the Agreement.

 

“Related Committed
Purchaser” means each Person listed as such (and its respective Commitment) as set forth on the signature pages of this
Agreement or in any Assumption Agreement or Transfer Supplement.

 

“Related Rights”
has the meaning set forth in Section 1.1 of the Sale Agreement.

 

“Related Security”
means, with respect to any Receivable:

 

(a)          all
of the Seller’s and the Originator thereof’s interest in any goods (including returned goods), and documentation of
title evidencing the shipment or storage of any goods (including returned goods), the sale of which gave rise to such Receivable,

 

(b)          all
instruments and chattel paper that may evidence such Receivable,

 

(c)          all
other security interests or liens and property subject thereto from time to time purporting to secure payment of such Receivable,
whether pursuant to the Contract related to such Receivable or otherwise, together with all UCC financing statements or similar
filings relating thereto,

 

(d)          solely
to the extent applicable to such Receivable, all of the Seller’s and the Originator thereof’s rights, interests and
claims under the Contracts relating to such Receivable, and all guaranties, indemnities, insurance and other agreements (including
the related Contract) or arrangements of whatever character from time to time supporting or securing payment of such Receivable
or otherwise relating to such Receivable, whether pursuant to the Contract related to such Receivable or otherwise, and

 

(e)          all
of the Seller’s rights, interests and claims under the Sale Agreement and the other Transaction Documents.

 

    	 	I-20	 

     

    

  

“Reportable
Compliance Event” shall mean that any Covered Entity becomes a Sanctioned Person, or is charged by indictment, criminal
complaint or similar charging instrument, arraigned, or custodially detained in connection with any Anti-Terrorism Law or any predicate
crime to any Anti-Terrorism Law, or has knowledge of facts or circumstances to the effect that it is reasonably likely that any
aspect of its operations is in actual or probable violation of any Anti-Terrorism Law.

 

“Restatement
Date” means the date hereof.

 

“Restricted
Payments” has the meaning set forth in Section 1(n) of Exhibit IV to the Agreement.

 

“Sale Agreement”
means the Purchase and Sale Agreement, dated as of August 30, 2006 among the Seller and the Originators, as the same may be amended,
amended and restated, supplemented or otherwise modified from time to time.

 

“Sanctioned
Country” means a country subject to a sanctions program maintained under any Anti-Terrorism Law.

 

“Sanctioned
Person” means any individual person, group, regime, entity or thing listed or otherwise recognized as a specially designated,
prohibited, sanctioned or debarred person, group, regime, entity or thing, or subject to any limitations or prohibitions (including
but not limited to the blocking of property or rejection of transactions), under any Anti-Terrorism Law.

 

“Seller”
has the meaning set forth in the preamble to this Agreement.

 

“Seller’s
Share” of any amount means the greater of: (a) $0 and (b) such amount minus the product of (i) such amount multiplied
by (ii) the Purchased Interest.

 

“Servicer”
has the meaning set forth in the preamble to this Agreement.

 

“Servicing
Fee” shall mean the fee referred to in Section 4.6 of this Agreement.

 

“Servicing
Fee Rate” shall have the meaning set forth in Section 4.6 of this Agreement.

 

“Settlement
Date” means the 25th day of each calendar month (or if such day is not a Business Day, the next occurring
Business Day); provided, however, that on and after the occurrence and continuation of any Termination Event, the
Settlement Date shall be the date selected as such by the Administrator (with the consent or at the direction of the Majority Purchaser
Agents) from time to time (it being understood that the Administrator (with the consent or at the direction of the Majority
Purchaser Agents) may select such Settlement Date to occur as frequently as daily) or, in the absence of any such selection, the
date which would be the Settlement Date pursuant to this definition.

 

    	 	I-21	 

     

    

  

“Specifically
Reserved Dilution Amount” means, (a) for the months of February, May, August and November, the amounts recorded on the
books and records of Cooper Tire under general ledger numbers 10210600, 10210000, 10210200, 10210300 and 10210610 (or such other
accounts that cover cash discounts allowance, anticipated cash discounts allowance, volume rebate and marketing and merchandising
accruals and any other similar account or accounts as designated by Cooper Tire from time to time), and (b) for any other month,
the amounts recorded on the books and records of Cooper Tire under general ledger number 10210600 (or such similar account or accounts
as designated by Cooper Tire from time to time).

 

“Solvent”
means, with respect to any Person at any time, a condition under which:

 

(i)           the
fair value and present fair saleable value of such Person’s total assets is, on the date of determination, greater than such
Person’s total liabilities (including contingent and unliquidated liabilities) at such time;

 

(ii)          the
fair value and present fair saleable value of such Person’s assets is greater than the amount that will be required to pay
such Person’s probable liability on its existing debts as they become absolute and matured (“debts,” for
this purpose, includes all legal liabilities, whether matured or unmatured, liquidated or unliquidated, absolute, fixed, or contingent);

 

(iii)         such
Person is and shall continue to be able to pay all of its liabilities as such liabilities mature; and

 

(iv)         such
Person does not have unreasonably small capital with which to engage in its current and in its anticipated business.

 

For purposes of this
definition:

 

(A)         the
amount of a Person’s contingent or unliquidated liabilities at any time shall be that amount which, in light of all the facts
and circumstances then existing, represents the amount which can reasonably be expected to become an actual or matured liability;

 

(B)         the
“fair value” of an asset shall be the amount which may be realized within a reasonable time either through collection
or sale of such asset at its regular market value;

 

(C)         the
“regular market value” of an asset shall be the amount which a capable and diligent business person could obtain for
such asset from an interested buyer who is willing to Purchase such asset under ordinary selling conditions; and

 

(D)         the
“present fair saleable value” of an asset means the amount which can be obtained if such asset is sold with reasonable
promptness in an arm’s-length transaction in an existing and not theoretical market.

 

“Standard
& Poor’s” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services
LLC business, and any successor thereto that is a nationally recognized statistical rating organization.

 

“Sub-Servicer”
has the meaning set forth in Section 4.1(d) of this Agreement.

 

    	 	I-22	 

     

    

  

“Subsidiary”
means, as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock of each
class or other interests having ordinary voting power (other than stock or other interests having such power only by reason of
the happening of a contingency) to elect a majority of the Board of Directors or other managers of such entity are at the time
owned, or management of which is otherwise controlled: (a) by such Person, (b) by one or more Subsidiaries of such Person or (c)
by such Person and one or more Subsidiaries of such Person.

 

“Tangible
Net Worth” means, with respect to any Person, the tangible net worth of such Person as determined in accordance with
GAAP.

 

“Taxes”
means, with respect to any Person, all taxes, charges, fees, levies or other assessments (including income, gross receipts, profits,
withholding, excise, property, sales, use, license, occupation and franchise taxes and including any related interest, penalties
or other additions) imposed by any jurisdiction or taxing authority (whether foreign or domestic) under the laws of which such
Person is organized.

 

“Termination
Day” means: (a) each day on which the conditions set forth in Section 2 of Exhibit II to this Agreement
are not satisfied or (b) each day that occurs on or after the Facility Termination Date.

 

“Termination
Event” has the meaning specified in Exhibit V to this Agreement.

 

“Total Reserves”
means, at any time the sum of: (a) the Yield Reserve, plus (b) the Specifically Reserved Dilution Amount, plus (c) the Canadian
Currency Volatility Reserve, plus (d) the greater of (i) the sum of the Loss Reserve plus the Dilution Reserve and (ii) the sum
of the Minimum Dilution Reserve plus the Concentration Reserve.

 

“Transaction
Documents” means this Agreement, the Lock-Box Agreements, each Purchaser Group Fee Letter, the Sale Agreement, the Performance
Guaranty, any Intercreditor Agreement and all other certificates, instruments, reports, notices, agreements and documents executed
or delivered under or in connection with this Agreement, in each case as the same may be amended, amended and restated, supplemented
or otherwise modified from time to time in accordance with the terms thereof.

 

“Transfer
Supplement” has the meaning set forth in Section 6.3(c) of this Agreement.

 

“UCC”
means the Uniform Commercial Code as from time to time in effect in the applicable jurisdiction.

 

“Unmatured
Purchase and Sale Termination Event” means any event which, with the giving of notice or lapse of time, or both, would
become a Purchase and Sale Termination Event.

 

“Unmatured
Termination Event” means an event that, with the giving of notice or lapse of time, or both, would constitute a Termination
Event.

 

    	 	I-23	 

     

    

  

“U.S. Dollar
Equivalent” means, on any day with respect to a specified amount denominated in Canadian Dollars, the U.S. dollar equivalent
of such specified amount of Canadian Dollars determined using the Bloomberg (BGN) closing rate in the New York market for the value
of a U.S. Dollar in Canadian Dollars on such day as published on a Bloomberg L.P. terminal (or any successor or alternative service
or source reporting market-based currency exchange rates reasonably selected by Cooper Tire in its reasonable business judgment
with the written consent of the Administrator (which consent shall not be unreasonably withheld)) as of (i) subject to clause
(ii) below, for purposes of determining the amount of any Receivable or portion thereof, the Business Day immediately preceding
the date such Receivable was invoiced or billed or (ii) for purposes of determining the Adjusted Canadian Dollar Receivables Balance
or for any other purposes, the Determination Date.

 

“Yield Period”
means, with respect to any Portion of Capital, (i) initially the period commencing on (and including) the date of the initial purchase
or funding of such Portion of Capital and ending on (and including) the last day of the calendar month of such purchase or funding,
and (ii) thereafter, each calendar month; provided, that in the case of any Yield Period for any Portion of Capital
which commences before the Facility Termination Date and would otherwise end on a date occurring after the Facility Termination
Date, such Yield Period shall end on such Facility Termination Date and the duration of each Yield Period which commences on or
after the Facility Termination Date shall be of such duration as shall be selected by the Administrator (with the consent or at
the direction of the applicable Purchaser Agent).

 

“Yield Protection
Fee” means, for any Yield Period, with respect to any Portion of Capital, to the extent that (i) any payments are made
by the Seller to the related Purchaser in respect of such Capital hereunder prior to the applicable maturity date of any Notes
or other instruments or obligations used or incurred by such Purchaser to fund or maintain such Portion of Capital or (ii) any
failure by the Seller to borrow, continue or prepay any Portion of Capital on the date specified in any Purchase Notice delivered
pursuant to Section 1.2 of this Agreement, the amount, if any, by which: (a) the additional Discount related to such
Portion of Capital that would have accrued through the maturity date of such Notes or other instruments on the portion thereof
for which payments were received from the Seller (or with respect to which the Seller failed to borrow such amounts), exceeds (b)
the income, if any, received by such Purchaser from investing the proceeds so received in respect of such Portion of Capital, as
determined by the applicable Purchaser Agent, which determination shall be binding and conclusive for all purposes, absent manifest
error.

 

“Yield Reserve”
means, on any date, an amount equal to (a) the sum of the Aggregate Capital plus the Adjusted LC Participation Amount at the close
of business of the Servicer on such date multiplied by (b)(i) the Yield Reserve Percentage on such date divided by (ii) 1, minus
the Yield Reserve Percentage on such date.

 

“Yield Reserve
Percentage” means, at any time the sum of (a) all accrued and unpaid Discount at such time, plus (b) the following
amount:

 

	 	{(BR + SFR) x 1.5(DSO) x Aggregate Capital}
	 	     360

 

where:

 

    	 	I-24	 

     

    

  

	BR	=	the Base Rate in effect at such time,
	 	 	 
	DSO	=	the Days’ Sales Outstanding, and
	 	 	 
	SFR	=	Servicing Fee Rate.

 

Other Terms.
(a) All accounting terms not specifically defined herein shall be construed in accordance with generally accepted accounting principles.
All terms used in Article 9 of the UCC in the State of New York, and not specifically defined herein, are used herein as defined
in such Article 9. Unless the context otherwise requires, “or” means “and/or,” and “including”
(and with correlative meaning “include” and “includes”) means including without limiting the generality
of any description preceding such term, and (b) any reference in any Transaction Document to any monetary amount (other than an
amount denominated in U.S. dollars) shall mean the U.S. Dollar Equivalent of such monetary amount at the time of determination
thereof.

 

    	 	I-25	 

     

    

 

EXHIBIT II

CONDITIONS OF PURCHASES

 

1.           Conditions
Precedent to Effectiveness of Amendment and Restatement of Original Agreement. This Agreement shall become effective as of
the Restatement Date when (a) the Administrator shall have received each of the documents, agreements (in fully executed form),
opinions of counsel, lien search results, UCC filings, certificates and other deliverables listed on the closing memorandum attached
as Annex G hereto, in each case, in form and substance reasonably acceptable to the Administrator and (b) all fees and
expenses payable by the Seller on the Restatement Date to the Purchasers have been paid in full in accordance with the terms of
the Transaction Documents.

 

2.           Conditions
Precedent to All Funded Purchases and Issuance of Letters of Credit. Each Funded Purchase, including the initial Funded Purchase
and issuance of any Letters of Credit shall be subject to the further conditions precedent that:

 

(a)          in
the case of each Funded Purchase and the issuance of any Letters of Credit, the Servicer shall have delivered to the Administrator
and each Purchaser Agent on or before such purchase or issuance, as the case may be, in form and substance satisfactory to the
Administrator and each Purchaser Agent, a completed pro forma Information Package to reflect the level of the Aggregate Capital,
the LC Participation Amount and related reserves and the calculation of the Purchased Interest after such subsequent purchase or
issuance, as the case may be, and a completed Purchase Notice in the form of Annex B (in the case of such purchase) and
a completed Letter of Credit Application in the form of Annex F (in the case of such issuance); and

 

(b)          on
the date of such Funded Purchase or issuance, as the case may be, the following statements shall be true (and acceptance of the
proceeds of such Funded Purchase or issuance shall be deemed a representation and warranty by the Seller that such statements are
then true):

 

(i)           the
representations and warranties contained in Exhibit III to this Agreement are true and correct in all material respects
on and as of the date of such Funded Purchase or issuance, as the case may be, as though made on and as of such date except for
representations and warranties which apply as to an earlier date (in which case such representations and warranties shall be true
and correct as of such earlier date);

 

(ii)          no
event has occurred and is continuing, or would result from such Funded Purchase or issuance, as the case may be, that constitutes
a Termination Event or an Unmatured Termination Event;

 

(iii)        
the sum of the Aggregate Capital plus the LC Participation Amount, after giving effect to any such Funded Purchase or issuance,
as the case may be, shall not be greater than the Purchase Limit, and the Purchased Interest shall not exceed 100%; and

 

(iv)         
the Facility Termination Date has not occurred.

 

    	 	II-1	 

     

    

 

EXHIBIT III

REPRESENTATIONS AND WARRANTIES

 

1.           Representations
and Warranties of the Seller. The Seller represents and warrants to the Administrator, each Purchaser Agent and each Purchaser
as of the date of execution of this Agreement that:

 

(a)          Existence
and Power. The Seller is a limited liability company duly organized, validly existing and in good standing under the laws of
Delaware, and has all organizational power and all governmental licenses, authorizations, consents and approvals required to carry
on its business in each jurisdiction in which its business is conducted, except in each case as could not reasonably be expected
to result in a Material Adverse Effect.

 

(b)          Company
and Governmental Authorization, Contravention. The execution, delivery and performance by the Seller of this Agreement and
each other Transaction Document to which it is a party are within the Seller’s organizational powers, have been duly authorized
by all necessary organizational action, require no action by or in respect of, or filing with (other than the filing of UCC financing
statements and continuation statements), any governmental body, agency or official, and, do not contravene, or constitute a default
under, any provision of applicable law or regulation or of the operating agreement of the Seller or of any agreement, judgment,
injunction, order, decree or other instrument binding upon the Seller or result in the creation or imposition of any lien (other
than liens in favor of the Administrator) on assets of the Seller.

 

(c)          Binding
Effect of Agreement. This Agreement and each other Transaction Document to which it is a party constitutes the legal,
valid and binding obligation of the Seller enforceable against the Seller in accordance with its respective terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’
rights generally and by general principles of equity, regardless of whether enforceability is considered in a proceeding in equity
or at law.

 

(d)          Accuracy
of Information. All information heretofore furnished by the Seller to the Administrator or any Purchaser Agent pursuant to
or in connection with this Agreement or any other Transaction Document is, and all such information hereafter furnished by the
Seller to the Administrator or any Purchaser Agent in writing pursuant to this Agreement or any Transaction Document will be, true
and accurate in all material respects on the date such information is stated or certified.

 

(e)          Actions,
Suits. There are no actions, suits or proceedings pending or, to the best of the Seller’s knowledge, threatened
against or affecting the Seller or any of its Affiliates or their respective properties, in or before any court, arbitrator or
other body.

 

    	 	III-1	 

     

    

  

(f)   
       Accuracy of Exhibits; Lock-Box Arrangements. The names and addresses of all
the Lock-Box Banks together with the account numbers of the Lock-Box Accounts at such Lock-Box Banks, are specified in Schedule
II to this Agreement (or at such other Lock-Box Banks and/or with such other Lock-Box Accounts as have been notified to
the Administrator), and all Lock-Box Accounts are subject to Lock-Box Agreements. All information on each Exhibit, Schedule
or Annex to this Agreement or the other Transaction Documents (as updated by the Seller from time to time) is true and
complete. The Seller has delivered a copy of all Lock-Box Agreements to the Administrator. The Seller has not granted any
interest in any Lock-Box Account (or any related lock-box or post office box) to any Person other than the Administrator and,
upon delivery to a Lock-Box Bank of the related Lock-Box Agreement, the Administrator will have exclusive ownership and
control of the Lock-Box Account at such Lock-Box Bank.

 

(g)          No
Material Adverse Effect. Since the date of formation of Seller as set forth in its certificate of formation, there has
been no Material Adverse Effect.

 

(h)          Names
and Location. The Seller has not used any company names, trade names or assumed names other than its name set forth on the
signature pages of this Agreement. The Seller is “located” (as such term is defined in the applicable UCC) in Delaware.
The office where the Seller keeps its records concerning the Receivables is at the address set forth below its signature to this
Agreement.

 

(i)           Margin
Stock. The Seller is not engaged in the business of extending credit for the purpose of purchasing or carrying margin stock
(within the meaning of Regulations T, U and X, as issued by the Board of Governors of the Federal Reserve System), and no proceeds
of any Purchase will be used to purchase or carry any margin stock or to extend credit to others for the purpose of purchasing
or carrying any margin stock.

 

(j)           Eligible
Receivables. Each Pool Receivable included as an Eligible Receivable in the calculation of the Net Receivables Pool Balance
is an Eligible Receivable.

 

(k)          Credit
and Collection Policy. The Seller has complied in all material respects with the Credit and Collection Policy of each Originator
with regard to each Receivable originated by such Originator.

 

(l)           Investment
Company Act; Not a Covered Fund. The Seller is not an “investment company,” or a company “controlled”
by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended. The Seller is not
a “covered fund” under Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations
implemented thereunder (the “Volcker Rule”). In determining that the Seller is not a “covered fund”
under the Volcker Rule, the Seller is entitled to rely on the exemption from the definition of “investment company”
set forth in Section 3(c)(5)(A) or (B) of the Investment Company Act of 1940, as amended.

 

(m)        
No Covered Entity is a Sanctioned Person. No Covered Entity, either in its own right or through any third party, (i) has
any of its assets in a Sanctioned Country or in the possession, custody or control of a Sanctioned Person in violation of any Anti-Terrorism
Law; (ii) does business in or with, or derives any of its income from investments in or transactions with, any Sanctioned Country
or Sanctioned Person in violation of any Anti-Terrorism Law; or (iii) engages in any dealings or transactions prohibited by any
Anti-Terrorism Law.

 

(n)          Liquidity
Coverage Ratio. The Seller has not issued any LCR Securities, and the Seller is a consolidated subsidiary of Cooper Tire under
GAAP.

 

    	 	III-2	 

     

    

  

(o)          Linked
Accounts. There are no “Linked Accounts” (as defined in the Lock-Box Agreement with Bank of America, National Association)
with respect to any Lock- Box Account maintained at Bank of America, National Association.

 

(p)          Taxes.
The Seller has (i) timely filed all tax returns (federal, state and local) required to be filed by it and (ii) paid, or caused
to be paid, all taxes, assessments and other governmental charges, if any, in each case, other than (A) taxes, assessments and
other governmental charges being contested in good faith by appropriate proceedings and as to which adequate reserves have been
provided in accordance with GAAP or (B) to the extent that the failure to do so could not reasonably be expected to result in a
Material Adverse Effect.

 

(q)          Tax
Status. The Seller (i) is, and shall at all relevant times continue to be, a “disregarded entity” within the meaning
of U.S. Treasury Regulation § 301.7701-3 for U.S. federal income tax purposes that is wholly owned by a “United States
person” (within the meaning of Section 7701(a)(30) of the Code) and (ii) is not and will not at any relevant time become
an association (or publicly traded partnership) taxable as an association for U.S. federal income tax purposes.

 

2.           Representations
and Warranties of the Servicer. The Servicer represents and warrants to the Administrator, each Purchaser Agent and each Purchaser
as of the date of execution of this Agreement that:

 

(a)          Existence
and Power. The Servicer is a corporation duly organized, validly existing and in good standing under the laws of its state
of organization, and has all company power and all governmental licenses, authorizations, consents and approvals required to carry
on its business in each jurisdiction in which its business is conducted, except in each case as could not reasonably be expected
to result in a Material Adverse Effect..

 

(b)          Company
and Governmental Authorization, Contravention. The execution, delivery and performance by the Servicer of this Agreement and
each other Transaction Document to which it is a party are within the Servicer’s organizational powers, have been duly authorized
by all necessary organizational action, require no action by or in respect of, or filing with, any governmental body, agency or
official other than filings and disclosures made under securities laws, and do not contravene, or constitute a default under, any
provision of applicable law or regulation or of the Certificate of Incorporation of the Servicer or of any judgment, injunction,
order or decree or agreement or other instrument binding upon the Servicer or result in the creation or imposition of any lien
on assets of the Servicer or any of its Subsidiaries, except in each case as could not reasonably be expected to result in a Material
Adverse Effect.

 

(c)          Binding
Effect of Agreement. This Agreement and each other Transaction Document to which it is a party constitutes the legal,
valid and binding obligation of the Servicer enforceable against the Servicer in accordance with its terms, except as such enforceability
may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights
generally and by general principles of equity, regardless of whether enforceability is considered in a proceeding in equity or
at law.

 

    	 	III-3	 

     

    

  

(d)          Accuracy
of Information. All information heretofore furnished by the Servicer to the Administrator or any Purchaser Agent pursuant to
or in connection with this Agreement or any other Transaction Document is, and all such information hereafter furnished by the
Servicer to the Administrator or any Purchaser Agent in writing pursuant to this Agreement or any other Transaction Document will
be, true and accurate in all material respects on the date such information is stated or certified.

 

(e)          Actions,
Suits. Except as set forth in Schedule IV, there are no actions, suits or proceedings pending or, to the best
of the Servicer’s knowledge, threatened against or affecting the Servicer or any of its Affiliates or their respective properties,
in or before any court, arbitrator or other body, which could reasonably be expected to have a Material Adverse Effect upon the
ability of the Servicer (or such Affiliate) to perform its obligations under this Agreement or any other Transaction Document to
which it is a party.

 

(f)           No
Material Adverse Effect. Since the date of the financial statements described in Section 2(i) below, there has
been no Material Adverse Effect.

 

(g)          Credit
and Collection Policy. The Servicer has complied in all material respects with the Credit and Collection Policy of each Originator
with regard to each Receivable originated by such Originator.

 

(h)          Investment
Company Act. The Servicer is not an “investment company,” or a company “controlled” by an “investment
company,” within the meaning of the Investment Company Act of 1940, as amended.

 

(i)           Financial
Information. The balance sheets of Cooper Tire and its consolidated Subsidiaries as at December 31, 2016, and the related statements
of income and retained earnings for the fiscal year then ended, copies of which have been furnished to the Administrator and each
Purchaser Agent, fairly present in all material respects the financial condition of Cooper Tire and its consolidated Subsidiaries
as at such date and the results of the operations of Cooper Tire and its Subsidiaries for the period ended on such date, all in
accordance with generally accepted accounting principles consistently applied.

 

(j)           No
Covered Entity is a Sanctioned Person. No Covered Entity, either in its own right or through any third party, (i) has any of
its assets in a Sanctioned Country or in the possession, custody or control of a Sanctioned Person in violation of any Anti-Terrorism
Law; (ii) does business in or with, or derives any of its income from investments in or transactions with, any Sanctioned Country
or Sanctioned Person in violation of any Anti-Terrorism Law; or (iii) engages in any dealings or transactions prohibited by any
Anti-Terrorism Law.

 

(k)          Linked
Accounts. There are no “Linked Accounts” (as defined in the Lock-Box Agreement with Bank of America, National Association)
with respect to any Lock-Box Account maintained at Bank of America, National Association.

 

(l)           Taxes.
The Servicer has (i) timely filed all tax returns (federal, state and local) required to be filed by it and (ii) paid, or caused
to be paid, all taxes, assessments and other governmental charges, if any, in each case, other than (A) taxes, assessments and
other governmental charges being contested in good faith by appropriate proceedings and as to which adequate reserves have been
provided in accordance with GAAP or (B) to the extent that the failure to do so could not reasonably be expected to result in a
Material Adverse Effect.

 

    	 	III-4	 

     

    

  

3.           Representations,
Warranties and Agreements Relating to the Security Interest. The Seller hereby makes the following representations, warranties
and agreements with respect to the Receivables and Related Security:

 

(a)          The
Receivables.

 

(i)           Creation.
This Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in the Receivables included
in the Receivables Pool in favor of the Administrator (for the benefit of the Purchasers), which security interest is prior to
all other Adverse Claims, and is enforceable as such as against creditors of and purchasers from the Seller.

 

(ii)          Nature
of Receivables. The Receivables included in the Receivables Pool constitute either “accounts”, “general
intangibles” or “tangible chattel paper” within the meaning of the applicable UCC.

 

(iii)         Ownership
of Receivables. The Seller owns and has good and marketable title to the Receivables included in the Receivables Pool and
Related Security free and clear of any Adverse Claim.

 

(iv)         Perfection
and Related Security. The Seller has caused the filing of all appropriate financing statements in the proper filing office
in the appropriate jurisdictions under applicable law in order to perfect the sale of the Receivables and Related Security from
such Originator to the Seller pursuant to the Sale Agreement, and the sale and security interest therein from the Seller to the
Administrator under this Agreement, to the extent that such collateral constitutes “accounts,” “general intangibles,”
or “tangible chattel paper.”

 

(v)          Tangible
Chattel Paper. With respect to any Receivables included in the Receivables Pool that constitute “tangible chattel paper”,
if any, the Seller (or the Servicer on its behalf) has in its possession the original copies of such tangible chattel paper that
constitute or evidence such Receivables, and the Seller has caused (and will cause the applicable Originator to cause), within
ten days after the Restatement Date, the filing of financing statements described in clause (iv), above, each of which
will contain a statement that: “A purchase of, or security interest in, any collateral described in this financing statement
will violate the rights of the Administrator.” The Receivables to the extent they are evidenced by “tangible chattel
paper” do not have any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any
Person other than the Seller or the Administrator.

 

(b)          The
Collection Account.

 

(i)           Nature
of Account. Each Lock-Box Account constitutes a “deposit account” within the meaning of the applicable UCC.

 

    	 	III-5	 

     

    

  

(ii)          Ownership.
The Seller owns and has good and marketable title to the Lock-Box Accounts and Collection Account free and clear of any Adverse
Claim.

 

(iii)         Perfection.
The Seller has delivered to the Administrator a fully executed Lock-Box Agreement relating to each Lock-Box Account, pursuant to
which each applicable Lock-Box Bank, respectively, has agreed, following the occurrence and continuation of a Termination Event,
to comply with all instructions originated by the Administrator (on behalf of the Purchasers) directing the disposition of funds
in such Lock-Box Account without further consent by the Seller or the Servicer.

 

(c)          Priority.

 

(i)           Other
than the transfer of the Receivables to the Seller and the Administrator under the Sale Agreement and this Agreement, respectively,
and/or the security interest granted to the Seller and the Administrator pursuant to the Sale Agreement and this Agreement, respectively,
neither the Seller nor any Originator has pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of
the Receivables transferred or purported to be transferred under the Transaction Documents, the Lock-Box Accounts or any subaccount
thereof, except for any such pledge, grant or other conveyance which has been released or terminated. Neither the Seller nor any
Originator has authorized the filing of, or is aware of any financing statements against either the Seller or such Originator that
include a description of Receivables transferred or purported to be transferred under the Transaction Documents, the Lock-Box Accounts
or any subaccount thereof, other than any financing statement (i) relating to the sale thereof by such Originator to the Seller
under the Sale Agreement, (ii) relating to the security interest granted to the Administrator under this Agreement, or (iii) that
has been released or terminated.

 

(ii)          The
Seller is not aware of any judgment, ERISA or tax lien filings against either the Seller, the Servicer or any Originator.

 

(iii)         The
Lock-Box Accounts are not in the name of any person other than the Seller or the Administrator. Neither the Seller nor the Servicer
has consented to any bank maintaining such account to comply with instructions of any person other than the Administrator.

 

(d)          Survival
of Supplemental Representations. Notwithstanding any other provision of this Agreement or any other Transaction Document, the
representations contained in this Section shall be continuing, and remain in full force and effect until such time as the
Purchased Interest and all other obligations under this Agreement have been finally and fully paid and performed.

 

(e)          No
Waiver. To the extent required pursuant to the securitization program of any Conduit Purchaser, the parties to this Agreement:
(i) shall not, without obtaining a confirmation of the then-current rating of the Notes, waive any of the representations set forth
in this Section; (ii) shall provide the Ratings Agencies with prompt written notice of any breach of any representations
set forth in this Section, and shall not, without obtaining a confirmation of the then-current rating of the Notes (as determined
after any adjustment or withdrawal of the ratings following notice of such breach) waive a breach of any of the representations
set forth in this Section.

 

    	 	III-6	 

     

    

  

(f)           Servicer
to Maintain Perfection and Priority. In order to evidence the interests of the Administrator under this Agreement, the Servicer
shall, from time to time take such action, or execute and deliver such instruments as may be necessary (including, without limitation,
such actions as are reasonably requested by the Administrator or any Purchaser Agent) to maintain and perfect, as a first-priority
interest, the Administrator’s security interest in the Receivables, Related Security and Collections. The Servicer shall,
from time to time and within the time limits established by law, prepare and present to the Administrator for the Administrator’s
authorization and approval, all financing statements, amendments, continuations or initial financing statements in lieu of a continuation
statement, or other filings necessary to continue, maintain and perfect the Administrator’s security interest as a first-priority
interest. The Administrator’s approval of such filings shall authorize the Servicer to file such financing statements under
the UCC without the signature of the Seller, any Originator or the Administrator where allowed by applicable law. Notwithstanding
anything else in the Transaction Documents to the contrary, the Servicer shall not have any authority to file a termination, partial
termination, release, partial release, or any amendment that deletes the name of a debtor or excludes collateral of any such financing
statements, without the prior written consent of the Administrator and each Purchaser Agent.

 

4.           Reaffirmation
of Representations and Warranties. On the date of each Purchase and/or reinvestment hereunder, and on the date each
Information Package or other report is delivered to the Administrator, any Purchaser Agent or any Purchaser hereunder, the Seller
and the Servicer, by accepting the proceeds of such Purchase or reinvestment and/or the provision of such information or report,
shall each be deemed to have certified that (i) all representations and warranties of the Seller and the Servicer, as applicable,
described in this Exhibit III, as from time to time amended in accordance with the terms hereof, are correct on and as of
such day as though made on and as of such day, except for representations and warranties which apply as to an earlier date (in
which case such representations and warranties shall be true and correct as of such date), and (ii) no event has occurred or is
continuing, or would result from any such Purchase, which constitutes a Termination Event or an Unmatured Termination Event.

 

    	 	III-7	 

     

    

 

EXHIBIT IV

COVENANTS

 

1.           Covenants
of the Seller. At all times from the date hereof until the Final Payout Date:

 

(a)          Financial
Reporting. The Seller will maintain a system of accounting established and administered in accordance with generally accepted
accounting principles as in effect in the appropriate jurisdiction, and the Seller (or the Servicer on its behalf) shall furnish
to the Administrator and each Purchaser Agent:

 

(i)           Annual
Reporting. Promptly upon completion and in no event later than 120 days after the close of each fiscal year of the Seller,
annual unaudited financial statements of the Seller certified by a designated financial or other officer of the Seller.

 

(ii)          Information
Packages. As soon as available and in any event not later than two Business Days prior to the Settlement Date, an Information
Package as of the most recently completed calendar month.

 

(iii)         Other
Information. Such other information (including non-financial information) as the Administrator or any Purchaser Agent may from
time to time reasonably request.

 

(b)          Notices.
The Seller will notify the Administrator and each Purchaser Agent in writing of any of the following events promptly upon (but
in no event later than three Business Days after) a financial or other officer learning of the occurrence thereof, with such notice
describing the same, and if applicable, the steps being taken by the Person(s) affected with respect thereto:

 

(i)           Notice
of Termination Events or Unmatured Termination Events. A statement of the chief financial officer or chief accounting officer
of the Seller setting forth details of any Termination Event or Unmatured Termination Event and the action which the Seller proposes
to take with respect thereto.

 

(ii)          Representations
and Warranties. The failure of any representation or warranty to be true (when made or at any time thereafter) with respect
to the Receivables included in the Receivables Pool.

 

(iii)         Litigation.
The institution of any litigation, arbitration proceeding or governmental proceeding which may have a Material Adverse Effect.

 

(iv)         Adverse
Claim. (A) Any Person shall obtain an Adverse Claim upon the Pool Receivables or Collections with respect thereto, (B)
any Person other than the Seller, the Servicer or the Administrator shall obtain any rights or direct any action with respect to
any Lock-Box Account (or related lock-box or post office box) or (C) any Obligor shall receive any change in payment instructions
with respect to Pool Receivable(s) from a Person other than the Servicer or the Administrator.

 

    	 	IV-1	 

     

    

  

(v)          ERISA
and Other Claims. Promptly after the filing or receiving thereof, copies of all reports and notices that the Seller or any
ERISA Affiliate files under ERISA with the Internal Revenue Service, the Pension Benefit Guaranty Corporation or the U.S. Department
of Labor or that the Seller or any Affiliate receives from any of the foregoing or from any multiemployer plan (within the meaning
of Section 4001(a)(3) of ERISA) to which the Seller or any of its Affiliates is or was, within the preceding five years, a contributing
employer, in each case in respect of any Reportable Event (as defined in ERISA) that could, in the aggregate, result in the imposition
of liability on the Seller and/or any such Affiliate.

 

(c)          Conduct
of Business. The Seller will carry on and conduct its business in substantially the same manner and in substantially the same
fields of enterprise as it is presently conducted and will do all things necessary to remain duly organized, validly existing and
in good standing as a domestic organization in its jurisdiction of organization and maintain all requisite authority to conduct
its business in each jurisdiction in which its business is conducted if the failure to have such authority could reasonably be
expected to have a Material Adverse Effect.

 

(d)          Compliance
with Laws. The Seller will comply with all laws, rules, regulations, orders, writs, judgments, injunctions, decrees or awards
to which it may be subject if the failure to comply could reasonably be expected to have a Material Adverse Effect.

 

(e)          Furnishing
of Information and Inspection of Receivables. The Seller will furnish to the Administrator and each Purchaser Agent from time
to time such information with respect to the Pool Receivables as the Administrator or such Purchaser Agent may reasonably request.
The Seller will, at the Seller’s expense, at any time and from time to time during regular business hours with prior written
notice (i) permit the Administrator or any Purchaser Agent, or their respective agents or representatives, (A) to examine and make
copies of and abstracts from all books and records relating to the Pool Receivables or other Pool Assets and (B) to visit the offices
and properties of the Seller for the purpose of examining such books and records, and to discuss matters relating to the Pool Receivables,
other Pool Assets or the Seller’s performance hereunder or under the other Transaction Documents to which it is a party with
any of the officers, directors, employees or independent public accountants of the Seller (provided that representatives of the
Seller are present during such discussions) having knowledge of such matters and (ii) without limiting the provisions of clause
(i) above, from time to time during regular business hours, at the Seller’s expense, upon reasonable prior written notice
from the Administrator and the Purchaser Agents, permit certified public accountants or other auditors acceptable to the Administrator
to conduct a review of its books and records with respect to the Pool Receivables.

 

    	 	IV-2	 

     

    

  

(f)           Payments
on Receivables, Accounts. The Seller will, and will cause each Originator to, at all times instruct all Obligors to deliver
payments on the Pool Receivables to a Lock-Box Account. If any such payments or other Collections are received by the Seller or
an Originator, it shall hold such payments in trust for the benefit of the Administrator and the Purchasers and promptly (but in
any event within two Business Days after receipt) remit such funds into a Lock-Box Account. The Seller will cause each Lock-Box
Bank to comply with the terms of each applicable Lock-Box Agreement. The Seller will not permit the funds other than Collections
on Pool Receivables and other Pool Assets to be deposited into any Lock-Box Account. If such funds are nevertheless deposited into
any Lock-Box Account, the Seller will promptly identify such funds for segregation. The Seller will not, and will not permit the
Servicer, any Originator or other Person to, commingle Collections or other funds to which the Administrator, any Purchaser Agent
or any Purchaser is entitled with any other funds. The Seller shall only add, and shall only permit an Originator to add, a Lock-Box
Bank (or the related lock-box or post office box), or Lock-Box Account to those listed on Schedule II to this Agreement, if the
Administrator has received notice of such addition, a copy of any new Lock-Box Agreement and an executed and acknowledged copy
of a Lock-Box Agreement in form and substance acceptable to the Administrator from any such new Lock-Box Bank. The Seller shall
only terminate a Lock-Box Bank or close a Lock-Box Account (or the related lock-box or post office box), upon 30 days’ advance
notice to the Administrator.

 

(g)          Sales,
Liens, etc. Except as otherwise provided herein, the Seller will not sell, assign (by operation of law or otherwise) or otherwise
dispose of, or create or suffer to exist any Adverse Claim upon (including, without limitation, the filing of any financing statement)
or with respect to, any Pool Receivable or other Pool Asset, or assign any right to receive income in respect thereof.

 

(h)          Extension
or Amendment of Pool Receivables. Except as otherwise permitted in Section 4.2 of this Agreement, the Seller
will not extend, amend or otherwise modify the terms of any Pool Receivable, or amend, modify or waive any term or condition of
any Contract related thereto, without the prior written consent of the Administrator and the Majority Purchaser Agents. The Seller
shall at its expense, timely and fully perform and comply with all material provisions, covenants and other promises required to
be observed by it under the Contracts related to the Pool Receivables, and timely and fully comply in all material respects with
the Credit and Collection Policy with regard to each Receivable and the related Contract.

 

(i)           Change
in Business. The Seller will not (i) make any change in the character of its business, which change would impair the collectibility
of any Pool Receivable or (ii) make any change in any Credit and Collection Policy that could reasonably be expected to materially
adversely affect the collectibility of the Pool Receivables, the enforceability of any related Contract or its ability to perform
its obligations under the related Contract or the Transaction Documents, in the case of either (i) or (ii) above, without the prior
written consent of the Administrator and each Purchaser Agent. The Seller shall not make any change in any Credit and Collection
Policy without giving prior written notice thereof to the Administrator and each Purchaser Agent.

 

    	 	IV-3	 

     

    

  

(j)           Fundamental
Changes. The Seller shall not, without the prior written consent of the Administrator and the Majority Purchaser Agents, permit
itself (i) to merge or consolidate with or into, or convey, transfer, lease or otherwise dispose of (whether in one transaction
or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to, any Person
or (ii) to be owned by any Person other than Cooper Tire and thereby cause Cooper Tire’s percentage of ownership or control
of the Seller to be reduced. The Seller shall provide the Administrator and each Purchaser Agent with at least 30 days’ prior
written notice before making any change in the Seller’s name, location or making any other change in the Seller’s identity
or corporate structure that could impair or otherwise render any UCC financing statement filed in connection with this Agreement
“seriously misleading” as such term (or similar term) is used in the applicable UCC; each notice to the Administrator
and the Purchaser Agents pursuant to this sentence shall set forth the applicable change and the proposed effective date thereof.
The Seller will also maintain and implement (or cause the Servicer to maintain and implement) administrative and operating procedures
(including an ability to recreate records evidencing Pool Receivables and related Contracts in the event of the destruction of
the originals thereof), and keep and maintain (or cause the Servicer to keep and maintain) all documents, books, records, computer
tapes and disks and other information reasonably necessary or advisable for the collection of all Pool Receivables (including records
adequate to permit the daily identification of each Pool Receivable and all Collections of and adjustments to each existing Pool
Receivable).

 

(k)          Change
in Payment Instructions to Obligors. The Seller shall not (and shall cause the Originators not to) add to, replace or terminate
any of the Lock-Box Accounts (or any related lock-box or post office box) listed in Schedule II hereto or make any change in its
(or their) instructions to the Obligors regarding payments to be made to the Lock-Box Accounts (or any related lock-box or post
office box), unless the Administrator and each Purchaser Agent shall have received (x) prior written notice of such addition, termination
or change and (y) signed and acknowledged Lock-Box Agreements with respect to such new Lock-Box Accounts (or any related lock-box
or post office box).

 

(l)           Ownership
Interest, Etc. The Seller shall (and shall cause the Servicer to), at its expense, take all action necessary or desirable to
establish and maintain a valid and enforceable undivided percentage ownership or security interest, to the extent of the Purchased
Interest, in the Pool Receivables, the Related Security and Collections with respect thereto, and a first priority perfected security
interest in the Pool Assets, in each case free and clear of any Adverse Claim, in favor of the Administrator (on behalf of the
Purchasers), including taking such action to perfect, protect or more fully evidence the interest of the Administrator (on behalf
of the Purchasers) as the Administrator or any Purchaser Agent, may reasonably request.

 

(m)         Certain
Agreements. Without the prior written consent of the Administrator and the Majority Purchaser Agents, the Seller will not amend,
modify, waive, revoke or terminate any Transaction Document to which it is a party or any provision of the Seller’s organizational
documents which requires the consent of the “Independent Member” (as defined in the Seller’s operating agreement).

 

(n)          Restricted
Payments. (i) Except pursuant to clause (ii) below, the Seller will not: (A) purchase or redeem any shares of its
capital stock, (B) declare or pay any dividend or set aside any funds for any such purpose, (C) prepay, purchase or redeem
any Debt, (D) lend or advance any funds or (E) repay any loans or advances to, for or from any of its Affiliates (the
amounts described in clauses (A) through (E) being referred to as “Restricted Payments”).

 

(i)           Subject
to the limitations set forth in clause (iii) below, the Seller may make Restricted Payments so long as such Restricted Payments
are made only in one or more of the following ways: (A) the Seller may make cash payments (including prepayments) on the Company
Notes in accordance with their respective terms, and (B) if no amounts are then outstanding under any Company Note, the Seller
may declare and pay dividends.

 

    	 	IV-4	 

     

    

  

(ii)          The
Seller may make Restricted Payments only out of the funds, if any, it receives pursuant to Sections 1.4(b)(ii) and (iv)
and 1.4(c) of this Agreement. Furthermore, the Seller shall not pay, make or declare: (A) any dividend if, after giving
effect thereto, the Tangible Net Worth of the Seller would be less than $10,000,000, or (B) any Restricted Payment (including any
dividend) if, after giving effect thereto, any Termination Event or Unmatured Termination Event shall have occurred and be continuing.

 

(o)          Other
Business. The Seller will not: (i) engage in any business other than the transactions contemplated by the Transaction Documents,
(ii) create, incur or permit to exist any Debt of any kind (or cause or permit to be issued for its account any letters of credit
or bankers’ acceptances) other than pursuant to this Agreement or the Company Notes, or (iii) form any Subsidiary or make
any investments in any other Person; provided, however, that the Seller shall be permitted to incur minimal obligations
to the extent necessary for the day-to-day operations of the Seller (such as expenses for stationery, audits, maintenance of legal
status, etc.).

 

(p)          Use
of Seller’s Share of Collections. The Seller shall apply the Seller’s Share of Collections to make payments in
the following order of priority: (i) the payment of its expenses (including all obligations payable to the Purchasers, the Purchaser
Agents and the Administrator under this Agreement and under the Purchaser Group Fee Letters), (ii) the payment of accrued and unpaid
interest on the Company Note and (iii) other legal and valid corporate purposes.

 

(q)          Tangible
Net Worth. The Seller will not permit its Tangible Net Worth, at any time, to be less than $10,000,000.

 

(r)          Anti-Money
Laundering/International Trade Law Compliance. The Seller will not become a Sanctioned Person. No Covered Entity, either in
its own right or through any third party, will (i) have any of its assets in a Sanctioned Country or in the possession, custody
or control of a Sanctioned Person in violation of any Anti-Terrorism Law; (ii) do business in or with, or derive any of its income
from investments in or transactions with, any Sanctioned Country or Sanctioned Person in violation of any Anti-Terrorism Law; (iii)
engage in any dealings or transactions prohibited by any Anti-Terrorism Law or (iv) use the proceeds of any Purchase to fund any
operations in, finance any investments or activities in, or, make any payments to, a Sanctioned Country or Sanctioned Person in
violation of any Anti-Terrorism Law. The funds used to repay each Purchase will not be derived from any unlawful activity. The
Seller shall comply with all Anti-Terrorism Laws. The Seller shall promptly notify the Administrator in writing upon the occurrence
of a Reportable Compliance Event. The Seller has not used and will not use the proceeds of any Purchase to fund any operations
in, finance any investments or activities in or make any payments to, a Sanctioned Person or a Sanctioned Country.

 

(s)          Linked
Accounts. The Seller shall not permit any “Linked Account” (as defined in the Lock-Box Agreement with Bank of America,
National Association) to exist with respect to any Lock-Box Account maintained at Bank of America, National Association.

 

    	 	IV-5	 

     

    

  

(t)          Seller’s
Tax Status. The Seller will remain a “disregarded entity” within the meaning of U.S. Treasury Regulation §
301.7701-3 for U.S. federal income tax purposes that is wholly owned by a “United States person” (within the meaning
of Section 7701(a)(30) of the Code). No action will be taken that would cause the Seller to (i) be treated other than as a
“disregarded entity” within the meaning of U.S. Treasury Regulation § 301.7701-3 for U.S. federal income tax purposes
that is wholly owned by a “United States person” (within the meaning of Section 7701(a)(30) of the Code) or (ii) become
an association taxable as a corporation or a publicly traded partnership taxable as a corporation for U.S. federal income tax purposes.

 

2.           Covenants
of the Servicer. At all times from the date hereof until the Final Payout Date:

 

(a)          Financial
Reporting. The Servicer will maintain a system of accounting established and administered in accordance with generally accepted
accounting principles as in effect in the appropriate jurisdiction, and the Servicer shall furnish to the Administrator and each
Purchaser Agent:

 

(i)           Annual
Reporting. Promptly upon completion and in no event later than 120 days after the close of each fiscal year of Cooper
Tire, annual audited financial statements of Cooper Tire and its consolidated subsidiaries certified by an accounting firm of nationally
recognized standing or otherwise reasonably acceptable to the Administrator and each such Purchaser Agent, prepared in accordance
with generally accepted accounting principles, including consolidated balance sheets as of the end of such period, consolidated
statements of income, related profit and loss and reconciliation of surplus statements, and a statement of changes in financial
position.

 

(ii)          Quarterly
Reporting. Promptly upon completion and in no event later than 60 days after the close of each financial quarter of
Cooper Tire, unaudited financial statements of Cooper Tire certified by a designated financial officer of Cooper Tire prepared
in accordance with generally accepted accounting principles, including consolidated balance sheets of Cooper Tire as of the end
of such period and related profit and loss and reconciliation of surplus statements.

 

(iii)         Compliance
Certificates. Together with the annual report required above, a compliance certificate in form and substance acceptable
to the Administrator and each Purchaser Agent signed by its chief accounting officer or treasurer solely in their capacities as
officers of the Servicer stating that no Termination Event or Unmatured Termination Event exists, or if any Termination Event or
Unmatured Termination Event exists, stating the nature and status thereof.

 

(iv)         Information
Packages. As soon as available and in any event not later than two Business Days prior to the Settlement Date, an Information
Package as of the most recently completed calendar month.

 

(v)          “Compliance
Certificate” under Credit Agreement. As and when each “Compliance Certificate” is delivered under the revolving
credit agreement described in clause (m) of Exhibit V to this Agreement, an executed copy of such certificate.

 

    	 	IV-6	 

     

    

  

(vi)         Other
Information. Such other information (including non-financial information) as the Administrator or any Purchaser Agent
may from time to time reasonably request.

 

(b)          Notices.
The Servicer will notify the Administrator and each Purchaser Agent in writing of any of the following events promptly upon (but
in no event later than three Business Days after) a financial or other officer learning of the occurrence thereof, with such notice
describing the same, and if applicable, the steps being taken by the Person(s) affected with respect thereto:

 

(i)           Notice
of Termination Events or Unmatured Termination Events. A statement of the chief financial officer or chief accounting officer
of the Servicer setting forth details of any Termination Event or Unmatured Termination Event and the action which the Servicer
proposes to take with respect thereto.

 

(ii)          Representations
and Warranties. The failure of any representation or warranty to be true (when made or at any time thereafter) with respect
to the Pool Receivables.

 

(iii)         Litigation.
The institution of any litigation, arbitration proceeding or governmental proceeding which could reasonably be expected to have
a Material Adverse Effect.

 

(iv)         Adverse
Claim. (A) Any Person shall obtain an Adverse Claim upon the Pool Receivables or Collections with respect thereto, (B)
any Person other than the Seller, the Servicer or the Administrator shall obtain any rights or direct any action with respect to
any Lock Box Account (or related lock-box or post office box) or (C) any Obligor shall receive any change in payment instructions
with respect to Pool Receivable(s) from a Person other than the Servicer or the Administrator.

 

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

 

(d)          Compliance
with Laws. The Servicer will comply with all laws, rules, regulations, orders, writs, judgments, injunctions, decrees or awards
to which it may be subject if the failure to comply could reasonably be expected to have a Material Adverse Effect.

 

    	 	IV-7	 

     

    

  

(e)          Furnishing
of Information and Inspection of Receivables. The Servicer will furnish to the Administrator and each Purchaser Agent from
time to time such information with respect to the Pool Receivables as the Administrator or such Purchaser Agent may reasonably
request. The Servicer will, at the Servicer’s expense, at any time and from time to time during regular business hours with
prior written notice (i) permit the Administrator or any Purchaser Agent, or their respective agents or representatives, (A) to
examine and make copies of and abstracts from all books and records relating to the Pool Receivables or other Pool Assets and (B)
to visit the offices and properties of the Servicer for the purpose of examining such books and records, and to discuss matters
relating to the Pool Receivables, other Pool Assets or the Servicer’s performance hereunder or under the other Transaction
Documents to which it is a party with any of the officers, directors, employees or independent public accountants of the Servicer
(provided that representatives of the Servicer are present during such discussions) having knowledge of such matters and (ii) without
limiting the provisions of clause (i) above, during regular business hours, at the Servicer’s expense, upon reasonable
prior written notice from the Administrator, permit certified public accountants or other auditors acceptable to the Administrator
and the Purchaser Agents to conduct, a review of its books and records with respect to the Pool Receivables.

 

(f)           Payments
on Receivables, Accounts. The Servicer will at all times instruct all Obligors to deliver payments on the Pool Receivables
to a Lock-Box Account. If any such payments or other Collections are received by the Servicer, it shall hold such payments in trust
for the benefit of the Administrator and the Purchasers and promptly (but in any event within two Business Days after receipt)
remit such funds into a Lock-Box Account. The Servicer will cause each Lock-Box Bank to comply with the terms of each applicable
Lock-Box Agreement. The Servicer will not permit the funds other than Collections on Pool Receivables and other Pool Assets to
be deposited into any Lock-Box Account. If such funds are nevertheless deposited into any Lock-Box Account, the Servicer will promptly
identify such funds for segregation. The Servicer will not commingle Collections or other funds to which the Administrator, any
Purchaser Agent or any Purchaser is entitled with any other funds. The Servicer shall only add, a Lock-Box Bank (or the related
lock-box or post office box), or Lock-Box Account to those listed on Schedule II to this Agreement, if the Administrator has received
notice of such addition, a copy of any new Lock-Box Agreement and an executed and acknowledged copy of a Lock-Box Agreement in
form and substance acceptable to the Administrator from any such new Lock-Box Bank. The Servicer shall only terminate a Lock-Box
Bank or close a Lock-Box Account (or the related lock-box or post office box), upon 30 days’ advance notice to the Administrator.

 

(g)          Extension
or Amendment of Pool Receivables. Except as otherwise permitted in Section 4.2 of this Agreement, the Servicer will
not extend, amend or otherwise modify the terms of any Pool Receivable, or amend, modify or waive any term or condition of any
Contract related thereto, without the prior written consent of the Administrator and the Majority Purchaser Agents. The Servicer
shall at its expense, timely and fully perform and comply with all material provisions, covenants and other promises required to
be observed by it under the Contracts related to the Pool Receivables, and timely and fully comply in all material respects with
the Credit and Collection Policy with regard to each Pool Receivable and the related Contract.

 

(h)          Change
in Business. The Servicer will not (i) make any change in the character of its business, which change would impair the collectibility
of any Pool Receivable or (ii) make any change in any Credit and Collection Policy that could reasonably be expected to adversely
affect the collectibility of the Pool Receivables, the enforceability of any related Contract or its ability to perform its obligations
under the related Contract or the Transaction Documents, in the case of either (i) or (ii) above, without the prior written consent
of the Administrator and each Purchaser Agent. The Servicer shall not make any change in any Credit and Collection Policy without
giving prior written notice thereof to the Administrator and each Purchaser Agent.

 

    	 	IV-8	 

     

    

  

(i)           Records.
The Servicer will maintain and implement administrative and operating procedures (including an ability to recreate records evidencing
Pool Receivables and related Contracts in the event of the destruction of the originals thereof), and keep and maintain all documents,
books, records, computer tapes and disks and other information reasonably necessary or advisable for the collection of all Pool
Receivables (including records adequate to permit the daily identification of each Pool Receivable and all Collections of and adjustments
to each existing Pool Receivable).

 

(j)           Change
in Payment Instructions to Obligors. The Servicer shall not add to, replace or terminate any of the Lock-Box Accounts (or any
related lock-box or post office box) listed in Schedule II hereto or make any change in its instructions to the Obligors
regarding payments to be made to the Lock-Box Accounts (or any related lock-box or post office box), unless the Administrator and
each Purchaser Agent shall have received (x) prior written notice of such addition, termination or change and (y) signed and acknowledged
Lock-Box Agreements with respect to such new Lock-Box Accounts (or any related lock-box or post office box).

 

(k)          Ownership
Interest, Etc. The Servicer shall, at its expense, take all action necessary or desirable to establish and maintain a valid
and enforceable undivided percentage ownership or security interest, to the extent of the Purchased Interest, in the Pool Receivables,
the Related Security and Collections with respect thereto, and a first priority perfected security interest in the Pool Assets,
in each case free and clear of any Adverse Claim in favor of the Administrator (on behalf of the Purchasers), including taking
such action to perfect, protect or more fully evidence the interest of the Administrator (on behalf of the Purchasers) as the Administrator
or any Purchaser Agent, may reasonably request.

 

(l)           Anti-Money
Laundering/International Trade Law Compliance. The Servicer will not become a Sanctioned Person. No Covered Entity, either
in its own right or through any third party, will (i) have any of its assets in a Sanctioned Country or in the possession, custody
or control of a Sanctioned Person in violation of any Anti-Terrorism Law; (ii) do business in or with, or derive any of its income
from investments in or transactions with, any Sanctioned Country or Sanctioned Person in violation of any Anti-Terrorism Law; (iii)
engage in any dealings or transactions prohibited by any Anti-Terrorism Law or (iv) use the proceeds of any Purchase to fund any
operations in, finance any investments or activities in, or, make any payments to, a Sanctioned Country or Sanctioned Person in
violation of any Anti-Terrorism Law. The funds used to repay each Purchase will not be derived from any unlawful activity. The
Servicer shall comply with all Anti-Terrorism Laws. The Servicer shall promptly notify the Administrator in writing upon the occurrence
of a Reportable Compliance Event.

 

(m)         Linked
Accounts. The Servicer shall not permit any “Linked Account” (as defined in the Lock-Box Agreement with Bank of
America, National Association) to exist with respect to any Lock-Box Account maintained at Bank of America, National Association.

 

(n)          Seller’s
Tax Status. The Servicer shall not take or cause any action to be taken that could result in the Seller (i) being treated other
than as a “disregarded entity” within the meaning of U.S. Treasury Regulation § 301.7701-3 for U.S. federal income
tax purposes or (ii) becoming an association taxable as a corporation or a publicly traded partnership taxable as a corporation
for U.S. federal income tax purposes.

 

    	 	IV-9	 

     

    

  

3.           Separate
Existence. Each of the Seller and the Servicer hereby acknowledges that the Purchasers and the Administrator are entering into
the transactions contemplated by this Agreement and the other Transaction Documents in reliance upon the Seller’s identity
as a legal entity separate from Cooper Tire, the Originators and their respective Affiliates. Therefore, from and after the date
hereof, each of the Seller and the Servicer shall take all steps specifically required by this Agreement or reasonably required
by the Administrator or any Purchaser Agent to continue the Seller’s identity as a separate legal entity and to make it apparent
to third Persons that the Seller is an entity with assets and liabilities distinct from those of Cooper Tire, any Originator and
any other Person, and is not a division of Cooper Tire, any Originator or any other Person. Without limiting the generality of
the foregoing and in addition to and consistent with the other covenants set forth herein, each of the Seller and the Servicer
shall take such actions as shall be required in order that:

 

(a)          The
Seller will be a limited liability company whose primary activities are restricted in its operating agreement to: (i) purchasing
or otherwise acquiring from the Originators, owning, holding, granting security interests or selling interests in Pool Assets,
(ii) entering into agreements for the selling and servicing of the Receivables Pool, and (iii) conducting such other activities
as it deems necessary or appropriate to carry out its primary activities;

 

(b)          The
Seller shall not engage in any business or activity, or incur any indebtedness or liability (including, without limitation, any
assumption or guaranty of any obligation of Cooper Tire, any Originator or any Affiliate thereof), other than as expressly permitted
by the Transaction Documents;

 

(c)          (i)
Not less than one member of the Seller’s Board of Directors (the “Independent Director”) shall be a natural
person (A) who is not at the time of initial appointment and has not been at any time during the five (5) years preceding such
appointment: (1) an equityholder, director (other than the Independent Director), officer, employee, member, manager, attorney
or partner of Cooper Tire, Seller or any of their Affiliates; (2) a customer of, supplier to or other person who derives more than
1% of its purchases or revenues from its activities with Cooper Tire, Seller or any of their Affiliates; (3) a person or other
entity controlling, controlled by or under common control with any such equity holder, partner, member, manager customer, supplier
or other person; or (4) a member of the immediate family of any such equity holder, director, officer, employee, member, manager,
partner, customer, supplier or other person and (B) who has (1) prior experience as an independent director for a corporation or
an independent manager of a limited liability company whose charter documents required the unanimous consent of all independent
director or independent managers thereof before such corporation could consent to the institution of bankruptcy or insolvency proceedings
against it or could file a petition seeking relief under any applicable federal or state law relating to bankruptcy and (2) at
least three years of employment experience with one or more entities that provide, in the ordinary course of their respective businesses,
advisory, management or placement services to issuers of securitization or structured finance instruments, agreements or securities.
Under this clause (c), the term “control” means the possession, directly or indirectly, of the power to direct
or cause the direction of management, policies or activities of a Person, whether through ownership of voting securities, by contract
or otherwise. (ii) The operating agreement of the Seller shall provide that: (A) the Seller’s Board of Directors shall not
approve, or take any other action to cause the filing of, a voluntary bankruptcy petition with respect to the Seller unless the
Independent Director shall approve the taking of such action in writing before the taking of such action, and (B) such provision
cannot be amended without the prior written consent of the Independent Director;

 

    	 	IV-10	 

     

    

  

(d)          The
Independent Director shall not at any time serve as a trustee in bankruptcy for the Seller, Cooper Tire, any Originator or any
of their respective Affiliates;

 

(e)          The
Seller shall conduct its affairs strictly in accordance with its organizational documents and observe all necessary, appropriate
and customary company formalities, including, but not limited to, holding all regular and special members’ and board of managers’
meetings appropriate to authorize all limited liability company action, keeping separate and accurate minutes of its meetings,
passing all resolutions or consents necessary to authorize actions taken or to be taken, and maintaining accurate and separate
books, records and accounts, including, but not limited to, payroll and intercompany transaction accounts;

 

(f)           Any
employee, consultant or agent of the Seller will be compensated from the Seller’s funds for services provided to the Seller,
and to the extent that Seller shares the same officers or other employees as Cooper Tire or any Originator (or any other Affiliate
thereof), the salaries and expenses relating to providing benefits to such officers and other employees shall be fairly allocated
among such entities, and each such entity shall bear its fair share of the salary and benefit costs associated with such common
officers and employees. The Seller will not engage any agents other than its attorneys, auditors and other professionals, and a
servicer and any other agent contemplated by the Transaction Documents for the Receivables Pool, which servicer will be fully compensated
for its services by payment of the Servicing Fee, and a manager, which manager will be fully compensated from the Seller’s
funds;

 

(g)          The
Seller will contract with the Servicer to perform for the Seller all operations required on a daily basis to service the Receivables
Pool. The Seller will pay the Servicer the Servicing Fee pursuant hereto. Except as otherwise permitted by this Agreement, the
Seller will not incur any material indirect or overhead expenses for items shared with Cooper Tire or any Originator (or any other
Affiliate thereof) that are not reflected in the Servicing Fee. To the extent, if any, that the Seller (or any Affiliate thereof)
shares items of expenses not reflected in the Servicing Fee or the manager’s fee, such as legal, auditing and other professional
services, such expenses will be allocated to the extent practical on the basis of actual use or the value of services rendered,
and otherwise on a basis reasonably related to the actual use or the value of services rendered; it being understood that Cooper
Tire, in its capacity as Servicer, shall pay all expenses relating to the preparation, negotiation, execution and delivery of the
Transaction Documents, including legal, agency and other fees;

 

(h)          The
Seller’s operating expenses will not be paid by Cooper Tire or any Originator or any Affiliate thereof;

 

(i)           The
Seller will have its own separate stationery;

 

(j)           The
Seller’s books and records will be maintained separately from those of Cooper Tire, each Originator and any other Affiliate
thereof and in a manner such that it will not be difficult or costly to segregate, ascertain or otherwise identify the assets and
liabilities of Seller;

 

    	 	IV-11	 

     

    

  

(k)          All
financial statements of Cooper Tire or any Originator or any Affiliate thereof that are consolidated to include Seller will disclose
that (i) the Seller’s sole business consists of the purchase or acceptance through capital contributions of the Receivables
and Related Rights from the Originators and the subsequent retransfer of or granting of a security interest in such Receivables
and Related Rights to certain purchasers party to this Agreement, (ii) the Seller is a separate legal entity with its own separate
creditors who will be entitled, upon its liquidation, to be satisfied out of the Seller’s assets prior to any assets or value
in the Seller becoming available to the Seller’s equity holders and (iii) the assets of the Seller are not available to pay
creditors of Cooper Tire or the Originators or any other Affiliates of Cooper Tire or the Originators;

 

(l)           The
Seller’s assets will be maintained in a manner that facilitates their identification and segregation from those of Cooper
Tire, the Originators or any Affiliates thereof;

 

(m)         The
Seller will strictly observe corporate formalities in its dealings with Cooper Tire, the Originators or any Affiliates thereof,
and funds or other assets of the Seller will not be commingled with those of Cooper Tire, the Originators or any Affiliates thereof
except as permitted by this Agreement in connection with servicing the Pool Receivables. The Seller shall not maintain joint bank
accounts or other depository accounts to which Cooper Tire or any Affiliate thereof (other than Cooper Tire in its capacity as
the Servicer) has independent access. The Seller is not named, and has not entered into any agreement to be named, directly or
indirectly, as a direct or contingent beneficiary or loss payee on any insurance policy with respect to any loss relating to the
property of Cooper Tire, the Originators or any Subsidiaries or other Affiliates thereof. The Seller will pay to the appropriate
Affiliate the marginal increase or, in the absence of such increase, the market amount of its portion of the premium payable with
respect to any insurance policy that covers the Seller and such Affiliate;

 

(n)          The
Seller will maintain arm’s-length relationships with Cooper Tire, the Originators (and any Affiliates thereof). Any Person
that renders or otherwise furnishes services to the Seller will be compensated by the Seller at market rates for such services
it renders or otherwise furnishes to the Seller. Neither the Seller on the one hand, nor Cooper Tire or any Originator, on the
other hand, will be or will hold itself out to be responsible for the debts of the other or the decisions or actions respecting
the daily business and affairs of the other. The Seller, Cooper Tire and the Originators will immediately correct any known misrepresentation
with respect to the foregoing, and they will not operate or purport to operate as an integrated single economic unit with respect
to each other or in their dealing with any other entity;

 

(o)          The
Seller shall have a separate area from Cooper Tire and each Originator for its business (which may be located at the same address
as such entities) and to the extent that any other such entity has offices in the same location, there shall be a fair and appropriate
allocation of overhead costs between them, and each shall bear its fair share of such expenses; and

 

(p)          To
the extent not already covered in paragraphs (a) through (o) above, Seller shall comply and/or act in accordance with the provisions
of Section 6.4 of the Sale Agreement.

 

    	 	IV-12	 

     

    

 

EXHIBIT V 

TERMINATION EVENTS

 

Each of the following
shall be a “Termination Event”:

 

(a)          (i)          the
Seller, Cooper Tire, any Originator or the Servicer shall fail to perform or observe any term, covenant or agreement under this
Agreement or any other Transaction Document and, except as otherwise provided herein, such failure, solely to the extent capable
of cure, shall continue for 30 days after the earlier of any such Person’s knowledge or notice thereof or (ii) the Seller
or the Servicer shall fail to make when due any payment or deposit to be made by it under this Agreement or any other Transaction
Document and such failure shall remain unremedied for two Business Days after the earlier of the Seller, Cooper Tire, any Originator
or the Servicer having knowledge or notice of such failure;

 

(b)          Cooper
Tire (or any Affiliate thereof) shall fail to transfer to any successor Servicer, when required, any rights pursuant to this Agreement
that Cooper Tire (or such Affiliate) then has as Servicer;

 

(c)          any
representation or warranty made or deemed made by the Seller, the Servicer or any Originator (or any of their respective officers)
under or in connection with this Agreement or any other Transaction Document, or any information or report delivered by the Seller,
the Servicer or any Originator pursuant to this Agreement or any other Transaction Document, shall prove to have been incorrect
or untrue in any material respect when made or deemed made or delivered;

 

(d)          the
Seller or the Servicer shall fail to deliver any Information Package when due pursuant to this Agreement, and such failure shall
remain unremedied for two Business Days after the earlier of such Person’s knowledge or notice thereof;

 

(e)          this
Agreement or any purchase or reinvestment pursuant to this Agreement shall for any reason: (i) cease to create, or the Purchased
Interest shall for any reason cease to be, a valid and enforceable first priority perfected undivided percentage ownership or security
interest to the extent of the Purchased Interest in each Pool Receivable, the Related Security and Collections with respect thereto,
free and clear of any Adverse Claim, or (ii) cease to create with respect to the Pool Assets, or the interest of the Administrator
(for the benefit of the Purchasers) with respect to such Pool Assets shall cease to be, a valid and enforceable first priority
perfected security interest, free and clear of any Adverse Claim;

 

(f)           the
Seller, Cooper Tire, the Servicer or any Originator shall generally not pay its debts as such debts become due, shall admit in
writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding
shall be instituted by or against the Seller, Cooper Tire, the Servicer or any Originator seeking to adjudicate it a bankrupt or
insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief or composition of it
or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an
order for relief or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part
of its property and, in the case of any such proceeding instituted against it (but not instituted by it), either such proceeding
shall remain undismissed or unstayed for a period of 60 days, or any of the actions sought in such proceeding (including the entry
of an order for relief against, or the appointment of a receiver, trustee, custodian or other similar official for, it or for any
substantial part of its property) shall occur; or the Seller, Cooper Tire, the Servicer or any Originator shall take any corporate
action to authorize any of the actions set forth above in this paragraph;

 

    	 	V-1	 

     

    

  

(g)          (i)
the (A) Default Ratio shall exceed 2.0%, (B) Delinquency Ratio shall exceed 4.5%, (ii) the average for three consecutive
calendar months of: (A) the Default Ratio shall exceed 1.5%, (B) the Delinquency Ratio shall exceed 3.5%, or (C) the Dilution Ratio
shall exceed 10.0% or (iii) Days’ Sales Outstanding exceeds 68 days;

 

(h)          a
Change in Control shall occur;

 

(i)           the
Purchased Interest shall exceed 100% for two (2) Business Days after the earlier of the Seller’s or Servicer’s knowledge
or notice thereof;

 

(j)           (i)
the Seller or Cooper Tire shall fail to pay any principal of or premium or interest on any of its Debt that is outstanding in a
principal amount of at least $50,000,000 in the aggregate when the same becomes due and payable (whether by scheduled maturity,
required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if
any, specified in the agreement, mortgage, indenture or instrument relating to such Debt (whether or not such failure shall have
been waived under the related agreement); (ii) any other event shall occur or condition shall exist under any agreement, mortgage,
indenture or instrument relating to any such Debt (as referred to in clause (i) of this subsection (j)) and shall
continue after the applicable grace period, if any, specified in such agreement, mortgage, indenture or instrument (whether or
not such failure shall have been waived under the related agreement), if the effect of such event or condition is to give the applicable
debtholders the right (whether acted upon or not) to accelerate the maturity of such Debt (as referred to in clause (i)
of this subsection (j)), or (iii) any such Debt shall be declared to be due and payable, or required to be prepaid (other
than by a regularly scheduled required prepayment), redeemed, purchased or defeased, or an offer to repay, redeem, purchase or
defease such Debt shall be required to be made, in each case before the stated maturity thereof;

 

(k)          except
as could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect, either the Internal Revenue
Service or the Pension Benefit Guaranty Corporation shall have filed one or more notices of lien asserting a claim or claims pursuant
to the Internal Revenue Code, or ERISA, as applicable, against the assets of Seller, any Originator, Cooper Tire or any ERISA Affiliate
and such lien shall have been filed and not released within 10 days; or

 

(l)           Cooper
Tire shall fail to perform any of its obligations under the Performance Guaranty.

 

    	 	V-2	 

     

    

 

SCHEDULE I

CREDIT AND COLLECTION POLICY

 

    	 	Schedule I-1	 

     

    

 

SCHEDULE II

LOCK-BOX BANKS AND LOCK-BOX ACCOUNTS

 

 

    	Schedule II-1

     

    

 

SCHEDULE III

 

TRADE NAMES

 

Cooper Tires

 

    	Schedule III-1

     

    

 

SCHEDULE IV

 

ACTIONS AND PROCEEDINGS

 

None

 

    	Schedule IV-1

     

    

 

SCHEDULE V

 

PURCHASER GROUPS AND MAXIMUM COMMITMENTS

 

Purchaser Group of PNC Bank, National
Association

 

	Party	 	Capacity	 	Maximum 
Commitment	 	 	Pro Rata Share	 
	PNC Bank, National Association	 	Related Committed Purchaser	 	$	150,000,000	 	 	 	N/A	 
	PNC Bank, National Association	 	LC Participant and LC Bank	 	$	150,000,000	 	 	 	100	%
	PNC Bank, National Association	 	Purchaser Agent	 	 	N/A	 	 	 	N/A	 

 

    	Schedule V-1

     

    

 

ANNEX A

 

FORM OF INFORMATION PACKAGE

 

 

    	 	Annex A-1	 

     

    

 

 

    	 	Annex A-2	 

     

    

 

ANNEX B

 

FORM OF PURCHASE NOTICE

 

Dated as of [________ __, 20__]

 

PNC Bank, National Association

Three PNC Plaza

225 Fifth Avenue

Pittsburgh, PA 15222-2707

 

[Each Purchaser Agent]

 

Ladies and Gentlemen:

 

Reference is hereby
made to the Second Amended and Restated Receivables Purchase Agreement, dated as of February 15, 2018 (as amended, restated, supplemented
or otherwise modified through the date hereof, the “Receivables Purchase Agreement”), among Cooper Receivables
LLC, as Seller, Cooper Tire & Rubber Company, as Servicer, the various Purchasers and Purchaser Agents from time to time party
thereto, the LC Participants from time to time party thereto, and PNC Bank, National Association, as Administrator and as LC Bank.
Capitalized terms used in this Purchase Notice and not otherwise defined herein shall have the meanings assigned thereto in the
Receivables Purchase Agreement.

 

[This letter constitutes
a Purchase Notice pursuant to Section 1.2(a) of the Receivables Purchase Agreement. Seller desires to sell an undivided
variable interest in a pool of receivables on ___________, [20__], for a purchase price of $____________.1
Subsequent to this Purchase, and after giving effect to the increase in the Aggregate Capital, the Purchased Interest will be $___________.]

 

[This letter constitutes a notice pursuant
to Section 1.13(a) of the Receivables Purchase Agreement. The Seller desires that the LC Bank [issue][transfer] Letters
of Credit [currently issued under the [___________]] on __________, [20__], with a face amount of $____________ (see attached schedule
for Letters of Credit to be transferred). Subsequent to this transfer, the LC Participation Amount will be $_______ and the aggregate
outstanding Capital will be $____________.]

 

Seller hereby represents
and warrants as of the date hereof, and as of the date of Purchase, as follows:

 

 

1
Such amount shall not be less than $300,000 (or such lesser amount as agreed to by the Administrator and the Majority Purchaser
Agents) and shall be in integral multiples of $100,000 with respect to each Purchaser Group.

 

    	Annex B-1

     

    

 

(i) the representations
and warranties contained in Exhibit III of the Receivables Purchase Agreement are true and correct in all material respects
on and as of the date of such purchase as though made on and as of such date (except for representations and warranties which apply
as to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as
of such earlier date);

 

(ii) no event has occurred
and is continuing, or would result from such purchase, that constitutes a Termination Event or Unmatured Termination Event;

 

(iii) the sum of the
Aggregate Capital plus the LC Participation Amount, after giving effect to any such purchase or reinvestment shall not be greater
than the Purchase Limit, and the Purchased Interest will not exceed 100%; and

 

(iv) the Facility Termination
Date has not occurred.

 

    	Annex B-2

     

    

 

IN WITNESS WHEREOF,
the undersigned has caused this Purchase Notice to be executed by its duly authorized officer as of the date first above written.

 

	 	COOPER RECEIVABLES LLC
	 	 
	 	By:	 
	 	Name Printed: 	                           
	 	Title:	 

 

    	Annex B-3

     

    

 

ANNEX C

 

FORM OF ASSUMPTION AGREEMENT

 

Dated as of [__________ __, 20__]

 

THIS ASSUMPTION AGREEMENT (this “AGREEMENT”),
dated as of [______ __, ____], is among COOPER RECEIVABLES LLC (the “Seller”), [________], as purchaser (the “[_____]
Conduit Purchaser”), [________], as the related committed purchaser (the “[______] Related Committed Purchaser”),
[________], as related lc participant (the “[_____] LC Participant” and together with the Conduit Purchaser and the
Related Committed Purchaser, the “[_____] Purchasers”), and [________], as agent for the [_____] Purchasers (the “[______]
Purchaser Agent” and together with the [_____] Purchasers, the “[_______] Purchaser Group”).

 

BACKGROUND

 

The Seller and various others are parties
to that certain Second Amended and Restated Receivables Purchase Agreement dated as of February 15, 2018 (as amended, restated,
supplemented or otherwise modified through the date hereof, the “Receivables Purchase Agreement”). Capitalized terms
used and not otherwise defined herein have the respective meaning assigned to such terms in the Receivables Purchase Agreement.

 

NOW, THEREFORE, the parties hereto hereby
agree as follows:

 

SECTION 1. This letter constitutes an Assumption
Agreement pursuant to Section 1.2(f) of the Receivables Purchase Agreement. The Seller desires [the [_____] Purchasers]
[the [______] Related Committed Purchaser][______] related LC Participant] to [become Purchasers under] [increase its existing
Commitment under] the Receivables Purchase Agreement and upon the terms and subject to the conditions set forth in the Receivables
Purchase Agreement, the [________] Purchasers agree to [become Purchasers thereunder] [increase its Commitment in an amount equal
to the amount set forth as the “Commitment” under the signature of such [______] Related Committed Purchaser hereto]
[increase its Commitment in an amount equal to the amount set forth as the “Commitment” under the signature of such
[______] related LC Participant hereto].

 

Seller hereby represents and warrants
to the [________] Purchasers as of the date hereof, as follows:

 

(i) the representations and warranties of
the Seller contained in Exhibit III of the Receivables Purchase Agreement are true and correct in all material respects
on and as the date of such purchase or reinvestment as though made on and as of such date (except for representations and warranties
which apply as to an earlier date, in which case such representations and warranties shall be true and correct in all material
respects as of such earlier date);

 

    	Annex C-1

     

    

 

(ii) no event has occurred and is continuing,
or would result from such purchase or reinvestment, that constitutes a Termination Event or an Unmatured Termination Event; and

 

(iii) the Facility Termination Date has
not occurred.

 

SECTION 2. Upon execution and delivery of
this Agreement by the Seller and each member of the [______] Purchaser Group, satisfaction of the other conditions to assignment
specified in Section 1.2(f) of the Receivables Purchase Agreement (including the written consent of the Administrator and
each Purchaser Agent) and receipt by the Administrator and Seller of counterparts of this Agreement (whether by facsimile or otherwise)
executed by each of the parties hereto, [the [_____] Purchasers shall become a party to, and have the rights and obligations of
Purchasers under, the Receivables Purchase Agreement][the [______] Related Committed Purchaser shall increase its Commitment in
the amount set forth as the “Commitment” under the signature of the [______] Related Committed Purchaser hereto][the
[______] related LC Participant shall increase its Commitment in the amount set forth as the “Commitment” under the
signature of the [______] related LC Participant hereto].

 

SECTION 3. Each party hereto hereby covenants
and agrees that it will not institute against, or join any other Person in instituting against, any Conduit Purchaser, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding, or other proceeding under any federal or state bankruptcy or
similar law, for one year and one day after the latest maturing Note issued by such Conduit Purchaser is paid in full. The covenant
contained in this paragraph shall survive any termination of the Receivables Purchase Agreement.

 

SECTION 4. THIS AGREEMENT SHALL BE DEEMED
TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401
AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK) EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF A SECURITY
INTEREST OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE
STATE OF NEW YORK. This Agreement may not be amended, supplemented or waived except pursuant to a writing signed by the party to
be charged. This Agreement may be executed in counterparts, and by the different parties on different counterparts, each of which
shall constitute an original, but all together shall constitute one and the same agreement.

 

(continued on following page)

 

    	Annex C-2

     

    

 

IN WITNESS WHEREOF, the parties hereto
have executed this Agreement by their duly authorized officers as of the date first above written.

 

	 	[___________], as a Conduit Purchaser

 

	 	By:	 
	 	Name Printed: 	 
	 	Title:	 

 

	 	[Address]
	 	[___________], as a Related Committed Purchaser

 

	 	By:	 
	 	Name Printed:	 
	 	Title:	 

 

	 	[Address]
	 	[Commitment]
	 	 
	 	[___________], as a related LC Participant

 

	 	By:	 
	 	Name Printed:	 
	 	Title:	 

 

	 	[Address]
	 	[Commitment]
	 	[_____________], as Purchaser Agent for [_________]

 

	 	By:	 
	 	Name Printed:	 
	 	Title:	 

 

	 	[Address]

 

    	Annex C-3

     

    

 

COOPER RECEIVABLES LLC, as Seller

 

	By:	 	 
	Name Printed:	 	 
	Title:	 	 

 

Consented and Agreed:

 

PNC BANK, NATIONAL ASSOCIATION, as Administrator

 

	By:	 	 
	Name Printed:	 	 
	Title:	 	 

 

	Address:	PNC Bank, National Association
	 	Three PNC Plaza
	 	255 Fifth Avenue
	 	Pittsburgh, Pennsylvania 15222-2707

 

PNC BANK, NATIONAL ASSOCIATION, as LC Bank

 

	By:	 	 
	Name Printed:	 	 
	Title:	 	 

 

	Address:	PNC Bank, National Association
	 	Three PNC Plaza
	 	255 Fifth Avenue
	 	Pittsburgh, Pennsylvania 15222-2707

 

[THE PURCHASER AGENTS]

 

	By:	 	 
	Name Printed:	 	 
	Title:	 	 

 

[Address]

 

    	Annex C-4

     

    

 

ANNEX D

 

FORM OF TRANSFER SUPPLEMENT

 

Dated as of [_______ __, 20__]

 

Section 1.

 

	Commitment assigned:	$_________
	Assignor’s remaining Commitment:	$_________
	Capital allocable to Commitment assigned:	$_________
	Assignor’s remaining Capital:	$_________
	Discount (if any) allocable to	 
	Capital assigned:	$_________
	Discount(if any) allocable to Assignor’s remaining Capital:	$_________

 

Section 2.

 

Effective Date of this Transfer Supplement:
  [__________]

 

Upon execution and delivery of this Transfer
Supplement by transferee and transferor and the satisfaction of the other conditions to assignment specified in Section 6.3(c)
of the Receivables Purchase Agreement (as defined below), from and after the effective date specified above, the transferee shall
become a party to, and have the rights and obligations of a Committed Purchaser under, the Second Amended and Restated Receivables
Purchase Agreement, dated as of February 15, 2018 (as amended, restated, supplemented or otherwise modified through the date hereof,
the “Receivables Purchase Agreement”), among Cooper Receivables LLC, as Seller, Cooper Tire & Rubber Company, LLC,
as initial Servicer, the various Purchasers and Purchaser Groups from time to time party thereto, the various LC Participants from
time to time party thereto, and PNC Bank, National Association, as Administrator and as LC Bank.

 

    	Annex D-1

     

    

 

ASSIGNOR: [_________], as a Related Committed Purchaser

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

ASSIGNEE: [_________], as a Purchasing Related Committed Purchaser

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

[Address]

 

Accepted as of date first above

written:

 

[___________], as Purchaser Agent for

the [______] Purchaser Group

 

	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

[Accepted as of the date first above written]:2

 

COOPER RECEIVABLES LLC

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

[Address]

 

 

2
Consent only required prior to the occurrence of a Termination Event (such consent not to be unreasonably withheld).

 

    	Annex D-2

     

    

 

ANNEX E

 

FORM OF PAYDOWN NOTICE

 

Dated as of [_____________ __, 20__]

 

Cooper Tire & Rubber Company

701 Lima Avenue

Findlay, OH 45840

Attention: Philip G. Weaver

 

PNC Bank, National Association

Three PNC Plaza

255 Fifth Avenue

Pittsburgh, Pennsylvania 15222-2707

Attention: Robyn Reeher

 

[Each other Purchaser Agent]

 

Ladies and Gentlemen:

 

Reference is hereby
made to the Second Amended and Restated Receivables Purchase Agreement, dated as of February 15, 2018 (as amended, restated, supplemented
or otherwise modified through the date hereof, the “Receivables Purchase Agreement”), among Cooper Receivables
LLC, as Seller, Cooper Tire & Rubber Company, as Servicer, the various Purchasers and Purchaser Agents from time to time party
thereto, the LC Participants from time to time party thereto and PNC Bank, National Association, as Administrator and as LC Bank.
Capitalized terms used in this paydown notice and not otherwise defined herein shall have the meanings assigned thereto in the
Receivables Purchase Agreement.

 

This letter constitutes
a paydown notice pursuant to Section 1.4(f)(i) of the Receivables Purchase Agreement. The Seller desires to reduce the Aggregate
Capital on ____________, _____3 by
the application of $___________ in cash to pay Aggregate Capital and Discount to accrue (until such cash can be used to pay commercial
paper notes) with respect to such Aggregate Capital, together with all costs related to such reduction of Aggregate Capital. Subsequent
to this paydown, the aggregate outstanding Capital will be $___________.

 

 

3       Notice
must be given not later than 2:00 p.m. New York City time on the date that is one Business Day prior to the date of such reduction
for any amount of reduction of the Aggregate Capital (or any amount as agreed to by the Administrator and the Majority Purchaser
Agents).

 

    	Annex E-1

     

    

 

IN WITNESS WHEREOF, the undersigned has
caused this paydown notice to be executed by its duly authorized officer as of the date first above written.

 

	 	COOPER RECEIVABLES LLC
	 	 	 
	 	By:	                            
	 	Name:	 
	 	Title:	 

 

    	Annex E-2

     

    

 

ANNEX F

 

FORM OF LETTER OF CREDIT APPLICATION

 

 

    	 	Annex F-1	 

     

    

 

 

    	 	Annex F-2	 

     

    

 

 

    	 	Annex F-3	 

     

    

 

ANNEX G

 

CLOSING MEMORANDUM

 

    	 	Annex G-1	 

     

    

 

EXECUTION VERSION

 

CLOSING
MEMORANDUM

 

SECOND AMENDED AND RESTATED
RECEIVABLES PURCHASE AGREEMENT

among

 

COOPER RECEIVABLES LLC,

as Seller

 

COOPER TIRE & RUBBER
COMPANY,

as initial Servicer

 

THE VARIOUS CONDUIT PURCHASERS,
RELATED COMMITTED PURCHASERS AND LC PARTICIPANTS,

as Purchasers

 

THE VARIOUS PURCHASER AGENTS,

as Purchaser Agents

 

and

 

PNC BANK, NATIONAL ASSOCIATION,

as Administrator and
LC Bank

 

For February 15, 2018 Closing

 

    	 	Annex G-2	 

     

    

 

Abbreviations:

 

	Administrator	PNC
	Cooper	Cooper Tire & Rubber Company
	Cooper Parties	Cooper and Seller
	JD	Jones Day, special counsel to the Cooper Parties
	LC Bank	PNC
	MB	Mayer Brown LLP, special counsel to Administrator
	Originator	Cooper
	PNC	PNC Bank, National Association
	Purchaser	PNC
	Seller	Cooper Receivables LLC
	Servicer	Cooper

 

    	 	Annex G-3	 

     

    

 

	Document	 	Responsible Party	 	Signatures Needed
	 	 	 	 	 
	A.   BASIC DOCUMENTS	 	 	 	 
	1.	Second Amended and Restated Receivables Purchase Agreement	 	MB	 	
         ̈ Seller

         ̈ Servicer

         ̈ Administrator

         ̈ Purchasers

         ̈ LC Bank

	 	 	 	 	 	 
	 	Exhibit I	Definitions	 	Incorporated	 	 
	 	Exhibit II	Conditions of Purchases	 	Incorporated	 
	 	Exhibit III	Representations and Warranties	 	Incorporated	 
	 	Exhibit IV	Covenants	 	Incorporated	 
	 	Exhibit V	Terminations Events	 	Incorporated	 
	 	 	 	 	 	 
	 	Schedule I	Credit and Collection Policy	 	Cooper	 
	 	Schedule II	Lock-Box Banks and Lock-Box Accounts	 	PNC/Cooper	 
	 	Schedule III	Trade Names	 	Cooper	 
	 	Schedule IV	Actions and Proceedings	 	Cooper	 
	 	 	 	 	 	 
	 	Annex A	Form of Information Package	 	PNC/Cooper	 
	 	Annex B-1	Form of Purchase Notice	 	Incorporated	 
	 	Annex B-2	Form of Issuance Notice	 	Incorporated	 
	 	Annex C	Form of Assumption Agreement	 	Incorporated	 
	 	Annex D	Form of Transfer Supplement	 	Incorporated	 
	 	Annex E	Form of Paydown Notice	 	Incorporated	 
	 	Annex F	Form of Letter of Credit Application	 	PNC	 
	 	Annex G	Closing Memorandum	 	MB	 
	 	 	 	 	 	 
	2.	Amended and Restated Fee Letter	 	MB	 	
         ̈ Seller

         ̈ Servicer

         ̈ Administrator

         ̈ Purchasers

         ̈ LC Bank

	 	 	 	 	 	 
	B.	UNIFORM COMMERCIAL CODE FILING DOCUMENTATION	 	 	 	 

 

    	 	Annex G-4	 

     

    

 

	Document	 	Responsible Party	 	Signatures Needed
	 	 	 	 	 	 
	3.	UCC lien searches against the Borrower in the State of Delaware	 	JD	 	N/A
	 	 	 	 	 	 
	4.	UCC lien searches against the Originator in the State in the State of Delaware	 	JD	 	N/A
	 	 	 	 	 
	C. DOCUMENTATION AS TO AUTHORITY, INCUMBENCY AND OTHER MATTERS WITH RESPECT TO THE ORIGINATOR, THE SELLER AND THE SERVICER	 	 	 	 
	1.	
        Secretary’s Certificate of the Originator and the Servicer
        as to:

         

        a.     Resolutions
        of Board of Directors

        b.     Certificate
        of Incorporation (or other applicable organizational document)

        c.     By-laws

        d.     Incumbency
        and signature
	 	JD	 	Cooper
	2.	
        Secretary’s Certificate of the Seller as to:

         

        a.     Resolutions
        of Board of Directors

        b.     Limited
        Liability Company Agreement

        c.     Certificate
        of Formation

        d.     Incumbency
        and signature
	 	JD	 	Seller
	 	 	 	 	 	 
	3.	Good Standing Certificate for Cooper from the State of Delaware	 	JD	 	N/A
	 	 	 	 	 	 
	4.	Good Standing Certificate for Seller from the State of Delaware	 	JD	 	N/A
	 	 	 	 	 	 
	E.   LEGAL OPINIONS	 	 	 	 
	1.	Opinion of counsel to the Cooper Parties re: general corporate matters, enforceability, no-conflicts with organizational documents, material agreements and New York and Federal law and, with respect to Seller, ’40 Act matters	 	JD	 	JD
	2.	Opinion of counsel to the Cooper Parties re: UCC security interest and perfection matters	 	JD	 	JD

 

    	 	Annex G-5Exhibit 4.1

 

INVESTOR RIGHTS AGREEMENT

 

between

 

SILVER PRIVATE HOLDINGS I, LLC

 

and

 

SYNCHRONOSS TECHNOLOGIES, INC.

 

Dated as of February 15, 2018

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
Section 1.
    	
Definitions
    	
3
    
	
 
    	
 
    	
 
    
	
Section 2.
    	
Demand Registration
    	
9
    
	
 
    	
 
    	
 
    
	
Section 3.
    	
Piggyback Registration
    	
11
    
	
 
    	
 
    	
 
    
	
Section 4.
    	
Expenses of   Registration
    	
12
    
	
 
    	
 
    	
 
    
	
Section 5.
    	
Obligations of the   Company
    	
13
    
	
 
    	
 
    	
 
    
	
Section 6.
    	
Suspension of Sales
    	
16
    
	
 
    	
 
    	
 
    
	
Section 7.
    	
Books and Records;   Access
    	
17
    
	
 
    	
 
    	
 
    
	
Section 8.
    	
Restrictions on   Transfer
    	
17
    
	
 
    	
 
    	
 
    
	
Section 9.
    	
Standstill   Restrictions; Voting; Dividends
    	
18
    
	
 
    	
 
    	
 
    
	
Section 10.
    	
Preemptive Rights
    	
19
    
	
 
    	
 
    	
 
    
	
Section 11.
    	
Governance
    	
21
    
	
 
    	
 
    	
 
    
	
Section 12.
    	
Indemnification
    	
23
    
	
 
    	
 
    	
 
    
	
Section 13.
    	
Agreement to Furnish   Information
    	
25
    
	
 
    	
 
    	
 
    
	
Section 14.
    	
Rule 144 Reporting
    	
25
    
	
 
    	
 
    	
 
    
	
Section 15.
    	
Section 16b-3
    	
26
    
	
 
    	
 
    	
 
    
	
Section 16.
    	
Confidentiality
    	
26
    
	
 
    	
 
    	
 
    
	
Section 17.
    	
Termination
    	
27
    
	
 
    	
 
    	
 
    
	
Section 18.
    	
Miscellaneous
    	
27
    

 

 

INVESTOR RIGHTS AGREEMENT

 

This INVESTOR RIGHTS AGREEMENT (this “Agreement”), dated as of February 15, 2018, by and between Synchronoss Technologies, Inc., a Delaware corporation (the “Company”), and Silver Private Holdings I, LLC, a Delaware limited liability company (the “Investor”).

 

WHEREAS, the Company and the Investor entered into a Securities Purchase Agreement, dated as of October 17, 2017 (the “Purchase Agreement”), pursuant to which the Company agreed to sell to the Investor, and the Investor agreed to purchase from the Company, shares of Series A Convertible Participating Perpetual Preferred Stock of the Company (such shares, the “Preferred Shares”) on the terms and subject to the conditions set forth in the Purchase Agreement;

 

WHEREAS, the Certificate of Designations (as set forth below) sets forth certain terms and rights with respect to the Preferred Shares and the Investor; and

 

WHEREAS, it is a condition to the closing of the transactions contemplated by the Purchase Agreement (the “Closing”) that the Company and the Investor enter into this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and the agreements contained in this Agreement and the Certificate of Designations, and intending to be legally bound by this Agreement, the Company and the Investor agree as follows:

 

Section 1.                                          Definitions.  Capitalized terms used and not otherwise defined in this Agreement shall have the respective meanings given such terms in the Purchase Agreement.  As used in this Agreement, the following terms shall have the respective meanings set forth in this Section 1:

 

“Adverse Disclosure” means the public disclosure of material non-public information that, in the good faith judgment of the Independent Directors (after consultation with Investor and legal counsel), (i) would be required to be made in any registration statement filed with the SEC by the Company so that such registration statement would not be materially misleading under applicable securities laws, (ii) would not be required to be made at such time but for the filing, effectiveness or continued use of such registration statement and (iii) the Company has a bona fide business purpose for not disclosing publicly.

 

“affiliate” of a specified person means a person who, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such specified person.

 

“Automatic Shelf Registration Statement” means an “automatic shelf registration statement” as defined in Rule 405 under the Securities Act.

 

“Board” means the Board of Directors of the Company.

 

3

 

“Business Day” means a day except a Saturday, a Sunday or other day on which banks in the City of New York are authorized or required by Law to be closed.

 

“Certificate of Designations” means the Certificate of Designations of the Series A Convertible Participating Perpetual Preferred Stock, par value $0.0001 per share, of the Company.

 

“Closing” shall have the meaning set forth in the recitals of this Agreement.

 

“Common Stock” means the common stock of the Company, par value $0.0001 per share.

 

“Company” shall have the meaning set forth in the preamble of this Agreement.

 

“Confidential Information” means any and all non-public information concerning the Company that has been or is furnished to the Investor (regardless of the manner in which it is furnished, including without limitation in written or electronic format or orally, gathered by visual inspection or otherwise) by or on behalf of the Company, together with the portions of any documents created by the Investor or its Representatives that contain such information, other than information that (i) is or has become generally available to the public other than as a result of a direct or indirect disclosure by the Investor or its Representatives in violation of this Agreement, (ii) was within the Investor’s or any of its Representatives’ lawful possession prior to its being furnished to the Investor by or on behalf of the Company and was not subject, to the terms of any other non-disclosure or confidentiality agreement with the Company or its representatives, in their capacity as such, that is binding on the Investor and/or such Representatives of the Investor, as applicable, the terms of which would otherwise prohibit such disclosure, (iii) is received from a source other than the Investor or any of its representatives; provided, that in the case of each of (ii) and (iii) above, the source of such information was not known by the Investor to be bound by a confidentiality agreement with or other contractual, legal or fiduciary obligation of confidentiality to the Company with respect to such information at the time the same was disclosed, or (iv) is independently developed by the Investor or any of its Representative without breach of this Agreement.

 

“control” (including the terms “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, partnership interests or other ownership interests, as trustee or executor, by contract or credit arrangement or otherwise.

 

“Effectiveness Deadline” means with respect to any registration statement required to be filed to cover the resale by the Investor and/or Permitted Holders of Registrable Securities pursuant to Section 2, (i) the date such registration statement is filed, if the Company is a WKSI as of such date and such registration statement is an Automatic Shelf Registration Statement eligible to become immediately effective upon filing pursuant to Rule 462, or (ii) if the Company is not a WKSI, as of the date such registration statement is filed, the fifth (5th) Business Day following the date on which the Company is notified by the SEC that such registration statement

 

4

 

will not be reviewed or is not subject to further review and comments and will be declared effective upon request by the Company.

 

“Equity-Linked Securities” means any security or instrument convertible into, exercisable or exchangeable for capital stock of the Company.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Filing Deadline” means with respect to any registration statement required to be filed to cover the resale by the Investor and/or Permitted Holders of Registrable Securities pursuant to Section 2, (i) ten (10) days following the written notice of demand therefor by the Investor, if the Company is a WKSI, as of the date of such demand, or (ii) if the Company is not a WKSI as of the date of such demand, (a) fifteen (15) Business Days following the written notice of demand therefor if the Company is then eligible to register for resale Registrable Securities on Form S-3 or (b) if the Company is not then eligible to use Form S-3, twenty (20) Business Days following the written notice of demand therefor, provided that, to the extent that the Company has not been provided the information regarding the Investor, any Permitted Holders and their respective Registrable Securities in accordance with Section 13 at least two (2) Business Days prior to the applicable Filing Deadline, then the such Filing Deadline shall be extended to the second (2nd) Business Day following the date on which such information is provided to the Company.

 

“Freely Tradable” means, with respect to any security, a security that (i) is eligible to be sold by the holder thereof without any volume or manner of sale restrictions under the Securities Act pursuant to Rule 144 thereunder, (ii) bears no legends restricting the transfer thereof and (iii) bears an unrestricted CUSIP number (to the extent such security is issued in global form).

 

“Indemnified Party” shall have the meaning set forth in Section 12(c).

 

“Indemnifying Party” shall have the meaning set forth in Section 12(c).

 

“Independence Criteria” shall have the meaning set forth in Section 11(b).

 

“Independent Directors” shall have the meaning set forth in Section 11(b).

 

“Inspectors” shall have the meaning set forth in Section 5(k).

 

“Investor” shall have the meaning set forth in the preamble of this Agreement.

 

“Investor Indemnitee” shall have the meaning set forth in Section 12(a).

 

“Investor’s Counsel” shall have the meaning set forth in Section 4(b).

 

“Law” means any U.S. or non-U.S. law, including any statute, ordinance, regulation, rule, code, executive order, injunction, judgment, decree or other order of a Governmental Authority of competent jurisdiction.

 

5

 

“Nominating and Corporate Governance Committee” means the Nominating and Corporate Governance Committee of the Board; provided that if, at the relevant time, such committee shall not exist or shall not have the responsibility and authority to recommend director candidates to the Board, “Nominating and Corporate Governance Committee” shall mean such other committee of the Board having such responsibility and authority.

 

“Non-Party Affiliates” shall have the meaning set forth in Section 18(k).

 

“Other Securities” shall have the meaning set forth in Section 3(a).

 

“Ownership Percentage” means, as of any date, the percentage equal to (i) the aggregate number of shares of Common Stock that the Investor or any Permitted Holders beneficially own (calculated, without duplication, assuming the full conversion (in each case, without regard to any limitation on conversion in the Certificate of Designations) of the Preferred Shares and any shares of Series A Preferred issued as PIK Dividends (as defined in the Certificate of Designations) or issuable as accrued and unpaid PIK Dividends not previously added to the Liquidation Preference (as defined in the Certificate of Designations), in either case on or before such date) divided by (ii) the total number of shares of Common Stock then outstanding, (calculated assuming the full conversion (in each case, without regard to any limitation on conversion in the Certificate of Designations) of the Preferred Shares, the shares of Series A Preferred issued as PIK Dividends (as defined in the Certificate of Designations) or issuable as accrued and unpaid PIK Dividends (as defined in the Certificate of Designations) not previously added to the Liquidation Preference, in either case on or before such date).

 

“Permitted Holders” means (i) the Investor’s affiliates and any partners or members of the Investor or such affiliates, and their respective partners, members and affiliates, in each case holding Registrable Securities as a result of one or more distributions by the Investor or any of such Persons, (ii) any successor entity of the Investor or any Person described in the foregoing clause (i), and (iii) any Person consented to in writing by the Company.

 

“Person” shall have the meaning set forth in the Purchase Agreement.

 

“Piggyback Notice” shall have the meaning set forth in Section 3(a).

 

“Piggyback Registration” shall have the meaning set forth in Section 3(a).

 

“Preemptive Rights Cap Amount” means, with respect to a Preemptive Rights Issuance, a number of securities which, if divided by the sum of (i) such number of securities plus (ii) the number of securities issued in such Preemptive Rights Issuance, would represent a percentage that is equal to the Ownership Percentage (as of immediately prior to the Preemptive Rights Issuance).

 

“prospectus” means the prospectus included in a registration statement (including a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by a registration statement, and all other amendments and supplements to the prospectus, including post-effective amendments.

 

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“Purchase Agreement” shall have the meaning set forth in the recitals of this Agreement.

 

“Register,” “registered,” and “registration” shall refer to a registration effected by preparing and (i) filing a registration statement with the Securities and Exchange Commission the SEC in compliance with the Securities Act and applicable rules and regulations thereunder, and the declaration or ordering of effectiveness of such registration statement by the SEC or (ii) filing a prospectus and/or prospectus supplement in respect of an appropriate effective Shelf Registration Statement.

 

“Registrable Securities” means (i) shares of Common Stock held by the Investor or any Permitted Holder, (ii) shares of Common Stock issuable (directly or indirectly) upon conversion and/or exercise of any capital stock of the Company, including any Preferred Shares, held by the Investor or any Permitted Holder and (iii) any securities issued as (or issuable upon the conversion or exercise of any warrant, right or other security that is issued as) a dividend, stock split, recapitalization or other distribution with respect to, or in exchange for, or in replacement of, the Common Stock referenced in clauses (i) or (ii) above or this clause (iii); provided that the term “Registrable Securities” shall exclude in all cases any securities (x) that are sold pursuant to an effective registration statement under the Securities Act or publicly resold in compliance with Rule 144, (y) that are immediately Freely Tradable pursuant to Rule 144, or (z) that shall have ceased to be outstanding.  Solely for purposes of determining at any time whether any Registrable Securities are then held, outstanding or transferred, the Preferred Shares and any shares of Series A Preferred issued as PIK Dividends shall be treated, on an as-converted basis (without regard to any limitation on conversion in the Certificate of Designations), as Registrable Securities.

 

“Registration Expenses” shall mean, with respect to any registration and without limitation, (i) all SEC, stock exchange, FINRA and other registration and filing fees, (ii) all fees and expenses of compliance with securities or blue sky laws (including reasonable fees, charges and disbursements of counsel to any underwriter incurred in connection with blue sky qualifications of Registrable Securities as may be set forth in any underwriting agreement), (iii) all word processing, duplicating and printing expenses, messenger and delivery expenses, (iv) fees and disbursements of counsel for the Company and all independent public accountants, (v) fees paid to other Persons retained by the Company, (vi) the Company’s internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), (vii) the expenses of any annual audit or quarterly review, (viii) the expenses (including premiums) of any liability or other insurance and (ix) the expenses and fees for listing the securities to be registered on each securities exchange on which the same class of securities issued by the Company are then listed; provided that Registration Expenses shall include Selling Expenses.

 

“registration statement” means any registration statement that is required to register the resale of Registrable Securities under this Agreement, including the related prospectus and any pre- and post-effective amendments and supplements to each such registration statement or prospectus.

 

“Representatives” means (i) the Investor’s members, (ii) the Investor’s and its members’ respective affiliates, and (iii) the Investor’s, its members’ and such affiliates’ respective

 

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employees, officers, directors, advisors and consultants; provided, that no portfolio company of Siris Capital Group, LLC will have any obligation as a Representative pursuant to this Agreement unless and until the Investor furnishes Confidential Information to such portfolio company (it being acknowledged that such furnishing, if at all, shall be pursuant to and in accordance with the confidentiality provisions set forth in this Agreement).

 

“Sale Notice” shall have the meaning set forth in Section 6(a).

 

“Scheduled Black-out Period” means the period beginning fifteen (15) calendar days prior to the end of each fiscal quarter and ending upon the completion of the first full trading day after the Company publicly releases its earnings for such fiscal quarter, or as such period is otherwise defined in the Company’s written insider trading policy, applicable generally to officers and directors of the Company.

 

“SEC” means the Securities and Exchange Commission.

 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Securities” means collectively, Registrable Securities and Other Securities.

 

“Selling Expenses” shall mean all underwriting discounts, selling commissions and stock transfer taxes, if any, applicable to the sale of Registrable Securities and all related fees and expenses of the Investor (other than such fees and expenses included in Registration Expenses).

 

“Series A Preferred” means the Series A Convertible Participating Perpetual Preferred Stock of the Company, par value $0.0001 per share.

 

“Series A Preferred Directors” shall have the meaning set forth in the Certificate of Designations.

 

“Shelf Registration” shall have the meaning set forth in Section 6(a).

 

“Shelf Suspension” shall have the meaning set forth in Section 6(a).

 

“Shelf Suspension Notice” shall have the meaning set forth in Section 6(a).

 

“Standstill Percentage” means, as of any date, the percentage equal to (i) the aggregate number of shares of Common Stock that the Investor or its affiliates beneficially own (calculated assuming the full conversion (in each case without regard to any limitation on conversion in the Certificate of Designations) of the Preferred Shares, the shares of Series A Preferred issued as PIK Dividends (as defined in the Certificate of Designations) or issuable as accrued and unpaid PIK Dividends not previously added to the Liquidation Preference (as defined in the Certificate of Designations), in either case on or before such date) divided by (ii) the total number of shares of Common Stock outstanding determined on a fully diluted, as-if-exercised basis (calculated assuming the exercise and settlement of all compensation awards in respect of capital stock of the Company outstanding as of immediately prior to such date, whether or not exercised, settled, eligible for settlement or vested, and the full conversion (in each case, without regard to any

 

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limitation on conversion in the Certificate of Designations) of the Preferred Shares and any shares of Series A Preferred issued as PIK Dividends (as defined in the Certificate of Designations) or issuable as accrued and unpaid PIK Dividends not previously added to the Liquidation Preference (as defined in the Certificate of Designations), in either case on or before such date).

 

“Subsidiary” shall mean any company, partnership, limited liability company, joint venture, joint stock company, trust, unincorporated organization or other entity at least 50% of the voting capital stock of which is owned, directly or indirectly, by the Company.

 

“Suspension Period” shall have the meaning set forth in Section 2(d).

 

“Underwriter Cutback” shall have the meeting set forth in Section 3(b).

 

“WKSI” shall mean a “well-known seasoned issuer” as defined in Rule 405 under the Securities Act.

 

Section 2.                                          Demand Registration.

 

(a)                                 Subject to the terms and conditions of this Agreement, including Section 2(c), if at any time following May 1, 2018, the Company receives a written request from the Investor that the Company register under the Securities Act Registrable Securities representing at least 10% of the Registrable Securities held by the Investor or the Permitted Holders, then the Company shall file, as promptly as reasonably practicable but no later than the applicable Filing Deadline, a registration statement under the Securities Act covering all Registrable Securities that the Investor requests to be registered.  The registration statement shall be on Form S-3 (except if the Company is not then eligible to register for resale Registrable Securities on Form S-3, in which case such registration shall be on another appropriate form for such purpose) and, if the Company is a WKSI as of the Filing Deadline, shall be an Automatic Shelf Registration Statement.  The Company shall use its commercially reasonable efforts to cause the registration statement to be declared effective or otherwise to become effective under the Securities Act as soon as reasonably practicable but, in any event, no later than the Effectiveness Deadline, and shall use its commercially reasonable efforts to keep the registration statement continuously effective under the Securities Act until the earlier of (1) the date on which the Investor notifies the Company in writing that the Registrable Securities included in such registration statement have been sold or the offering therefor has been terminated or (2) (x) thirty (30) Business Days following the date on which such registration statement was declared effective by the SEC, if the Company is a WKSI and filed an Automatic Shelf Registration Statement in satisfaction of such demand, (y) forty (40) Business Days following the date on which such registration statement was declared effective by the SEC, if the Company is not a WKSI and registered for resale the Registrable Securities on Form S-3 in satisfaction of such demand or (z) fifty (50) Business Days following the date on which such registration statement was declared effective by the SEC, if the Company is neither a WKSI nor then eligible to use Form S-3 and registered for resale the Registrable Securities on Form S-1 or other applicable form in satisfaction of such demand; provided that each period specified in clause (2) of this sentence shall be extended automatically by one (1) Business Day for each Business Day that the

 

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use of such registration statement or prospectus is suspended by the Company pursuant to any Suspension Period, pursuant to (d) below or pursuant to Section 5(j).

 

(b)                                 If the Investor intends to distribute the Registrable Securities covered by such Investor’s request by means of an underwriting, (i) the Investor shall so advise the Company as a part of its request made pursuant to Section 2(a) and (ii) the Investor shall have the right to appoint the book-running, managing and other underwriter(s) after consultation with the Company.

 

(c)                                  The Company shall not be required to effect a registration pursuant to this Section 2:  (i) after the Company has effected three registrations pursuant to this Section 2, and each of such registrations has been declared or ordered effective and kept effective by the Company as required by Section 5(a); or (ii) more than twice during any single calendar year; provided, however, that a request for registration will not count for the purposes of this limitation if (x) the Investor determines in good faith to withdraw (prior to the effective date of the registration statement relating to such request) the proposed registration or (y) the registration statement relating to such request is not declared effective within the earlier of Effectiveness Deadline.

 

(d)                                 Notwithstanding anything to the contrary in this Agreement, (1) upon notice to the Investor, the Company may delay the Filing Deadline and/or the Effectiveness Deadline with respect to, or suspend the effectiveness or availability of, any registration statement for up to ninety (90) days in the aggregate in any twelve-month period (a “Suspension Period”) if the Company would have to make an Adverse Disclosure in connection with the registration statement; provided that (i) any suspension of a registration statement pursuant to Section 6(b) or Section 5(j) shall be treated as a Suspension Period for purposes of calculating the maximum number of days of any Suspension Period under this Section 2(d) and (ii) no Suspension Period may overlap with any redemption pursuant the Certificate of Designations (including Section 5 thereof) through the date that is thirty (30) Business Days following any such redemption; and (2) upon notice to the Investor, the Company may delay the Filing Deadline and/or the Effectiveness Deadline with respect to any registration statement for a period not to exceed thirty (30) days prior to the Company’s good faith estimate of the launch date of, and ninety (90) days after the closing date of, a Company initiated registered offering of equity securities (including equity securities convertible into or exchangeable for Common Stock); provided that (i) the Company is actively employing in good faith all commercially reasonable efforts to launch such registered offering throughout such period, (ii) the Investor and Permitted Holders are afforded the opportunity to include Registrable Securities in such registered offering in accordance with Section 3 and (iii) the right to delay or suspend the effectiveness or availability of such registration statement pursuant to this clause (2) shall not be exercised by the Company more than two (2) times in any twelve-month period and not more than ninety (90) days in the aggregate in any twelve-month period, other than solely due to the Financial Restatement (as defined in the Purchase Agreement) for so long as the Company is using its best efforts to issue the Restated Financial Statements (as defined in the Purchase Agreement).  If the Company shall delay any Filing Deadline pursuant to this clause (d) for more than ten (10) Business Days, the Investor may withdraw the demand therefor at any time after such ten (10) Business Days so long as such delay is then continuing by providing written notice

 

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to the Company to such effect, and any demand so withdrawn shall not count as a demand for registration for any purpose under this Section 2, including Section 2(c).

 

(e)                                  Notwithstanding the foregoing, if the managing underwriter(s) of an underwritten offering in connection with any registration pursuant to this Section 2 advises the Company and the Investor in writing that, in its good faith judgment, the number of Registrable Securities requested to be included in such offering exceeds the number of Registrable Securities which can be sold in such offering at a price acceptable to the Investor, then the number of Registrable Securities so requested to be included in such offering shall be reduced to that number of shares which, in the good faith judgment of the managing underwriter, can be sold in such offering at such price.

 

Section 3.                                          Piggyback Registration.

 

(a)                                 Subject to the terms and conditions of this Agreement, if at any time the Company files a registration statement under the Securities Act with respect to an offering of Common Stock or other equity securities of the Company (such Common Stock and other equity securities collectively, “Other Securities”), whether or not for sale for its own account (other than a registration statement (i) on Form S-4, Form S-8 or any successor forms, (ii) filed solely in connection with any employee benefit or dividend reinvestment plan or (iii) pursuant to a demand registration in accordance with Section 2), then the Company shall use commercially reasonable efforts to give written notice of such filing to the Investor at least ten (10) Business Days before the anticipated filing date (the “Piggyback Notice”).  The Piggyback Notice and the contents thereof shall be kept confidential by the Investor and its affiliates and representatives, and the Investor shall be responsible for breaches of confidentiality by its affiliates and representatives.  The Piggyback Notice shall offer the Investor and the Permitted Holders the opportunity to include in such registration statement, subject to the terms and conditions of this Agreement, the number of Registrable Securities as the Investor may reasonably request (a “Piggyback Registration”).  Subject to the terms and conditions of this Agreement, the Company shall use its commercially reasonable efforts to include in each such Piggyback Registration all Registrable Securities with respect to which the Company has received from the Investor written requests for inclusion therein within ten (10) Business Days following receipt of any Piggyback Notice by the Investor, which request shall specify the maximum number of Registrable Securities intended to be disposed of by the Investor and any Permitted Holder and the intended method of distribution.  For the avoidance of doubt and notwithstanding anything in this Agreement to the contrary, the Company may not commence or permit the commencement of any sale of Other Securities in a public offering to which this Section 3 applies unless the Investor shall have received the Piggyback Notice in respect to such public offering not less than ten (10) Business Days prior to the commencement of such sale of Other Securities.  The Investor and any Permitted Holder shall be permitted to withdraw all or part of the Registrable Securities from a Piggyback Registration at any time at least two (2) Business Days prior to the effective date of the registration statement relating to such Piggyback Registration.  No Piggyback Registration shall count towards the number of demand registrations that the Investor is entitled to make in any period or in total pursuant to Section 2.

 

(b)                                 If any Other Securities are to be sold in an underwritten offering, (1) the Company or other Persons designated by the Company shall have the right to appoint the book-

 

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running, managing and other underwriter(s) for such offering in their discretion and (2) the Investor and any Permitted Holder shall be permitted to include all Registrable Securities requested by the Investor to be included in such registration in such underwritten offering on the same terms and conditions as such Other Securities proposed by the Company or any third party to be included in such offering; provided, however, that if such offering involves an underwritten offering and the managing underwriter(s) of such underwritten offering advise the Company in writing that it is their good faith opinion that the total amount of Registrable Securities requested to be so included, together with all Other Securities that the Company and any other Persons having rights to participate in such registration intend to include in such offering (an “Underwriter Cutback”), exceeds the total number or dollar amount of such securities that can be sold without having an adverse effect on the price, timing or distribution of the Registrable Securities to be so included together with all Other Securities, then there shall be included in such firm commitment underwritten offering the number or dollar amount of Registrable Securities and such Other Securities that in the good faith opinion of such managing underwriter(s) can be sold without so adversely affecting such offering, and such number of Registrable Securities and Other Securities shall be allocated for inclusion as follows:  (x) to the extent such public offering is the result of a registration initiated by the Company, (i) first, all Other Securities being sold by the Company; (ii) second, all Registrable Securities requested to be included in such registration by the Investor and (iii) third all Other Securities of any holders thereof (other than the Company and the Investor) requesting inclusion in such registration, or (y) to the extent such public offering is the result of a registration initiated by any Persons (other than the Company or the Investor) exercising a contractual right to demand registration, (i) first, pro rata among all Other Securities owned by such Persons exercising the contractual right and all Registrable Securities requested by the Investor to be included in such registration , (ii) second, all Other Securities of any holders thereof (other than the Investor, the Company and the Persons exercising the contractual right) requesting inclusion in such registration, pro rata, based on the aggregate number of Other Securities beneficially owned by each such holder; and (iii) third, all Other Securities being sold by the Company.

 

Section 4.                                          Expenses of Registration.

 

(a)                                 Except as specifically provided for in this Agreement, all Registration Expenses incurred in connection with any registration, qualification or compliance hereunder shall be borne by the Company. All Selling Expenses incurred in connection with any registration hereunder, shall be borne by the Investor in proportion to the number of Registrable Securities for which registration was requested. The Company shall not, however, be required to reimburse the Investor or Permitted Holders, as applicable, for any Registration Expenses incurred by it or them for any registration proceeding begun pursuant to Section 2, the request of which has been subsequently withdrawn by the Investor unless (a) the withdrawal is based upon materially adverse circumstances or conditions or material adverse information concerning the Company or its Subsidiaries that (i) the Company had not publicly disclosed in a report filed with or furnished to the SEC under the Exchange Act at least three (3) Business Days prior to the request or (ii) the Company had not disclosed to any Series A Director in person or by telephone at the last meeting of the Board or any committee of the Board, in each case, at which a Series A Director is present or at any time since the date of such meeting of the Board, (b) the withdrawal is made in accordance with the last sentence of Section 2(d), or (c) the Investor agrees to forfeit its right to one requested registration pursuant to Section 2.

 

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(b)                                 In connection with each registration pursuant to Section 2, in addition to the Registration Expenses payable pursuant to Section 4(a), the Company will reimburse the Investor for the reasonable fees and disbursements of one United States counsel, who will be chosen by the Investor in its sole discretion (“Investor’s Counsel”).

 

Section 5.                                          Obligations of the Company.  Whenever required to effect the registration of any Registrable Securities pursuant to Section 2 or Section 3 of this Agreement, the Company shall, as promptly as reasonably practicable:

 

(a)                                 With respect to a Demand Registration, prepare and as soon as practicable file with the SEC a registration statement (including all required exhibits to such registration statement) with respect to such Registrable Securities and use reasonable best efforts to cause such registration statement to become effective, or prepare and file with the SEC a prospectus supplement with respect to such Registrable Securities pursuant to an effective registration statement and keep such registration statement effective or such prospectus supplement current, in the case of a registration pursuant to Section 2, in accordance with Section 2.

 

(b)                                 Prepare and file with the SEC such amendments and supplements to the applicable registration statement and the prospectus or prospectus supplement used in connection with such registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement for the period required Section 2 (including any extension provided for therein).

 

(c)                                  To the extent reasonably practicable, not less than five (5) Business Days prior to the filing of a registration statement or any related prospectus or any amendment or supplement thereto, the Company shall furnish to the Investor and Investor’s Counsel copies of all such documents proposed to be filed and give reasonable consideration to the inclusion in such documents of any comments reasonably and timely made by the Investor or its legal counsel; provided that the Company shall include in such documents any such comments that are necessary to correct any material misstatement or omission regarding the Investor.

 

(d)                                 Furnish to the Investor and Investor’s Counsel such number of copies of the applicable registration statement and each such amendment and supplement thereto (including upon request in each case all exhibits but not documents incorporated by reference) and of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as the Investor may reasonably request in order to facilitate the disposition of Registrable Securities by the Investor and Permitted Holders.  The Company hereby consents to the use of such prospectus and each amendment or supplement thereto by the Investor and any participating Permitted Holder in accordance with applicable Law in connection with the offering and sale of the Registrable Securities covered by such prospectus and any amendment or supplement thereto.

 

(e)                                  Prior to any offering of Common Stock pursuant to the registration statement, the Company shall use commercially reasonable efforts to (i) arrange for the qualification of the Common Stock for offer and sale under the securities or “blue sky” laws of such states of the United States as the Investor shall reasonably request and shall maintain such qualification in effect so long as required to enable the Investor to consummate the disposition in

 

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such jurisdictions of the Common Stock, and (ii) reasonably cooperate with the Investor in connection with any filings required to be made with FINRA; provided, that in no event shall the Company be obligated to qualify to do business in any jurisdiction where it is not then so qualified or to take any action that would subject it to taxation or service of process in suits, other than those arising out of any offering pursuant to the registration statement, in any jurisdiction where it is not then so subject.

 

(f)                                   Enter customary agreements and take such other actions as are reasonably required in order to facilitate the disposition of such Registrable Securities, including, if the method of distribution of Registrable Securities is by means of an underwritten offering, using commercially reasonable efforts to, (i) participate in and make documents available for the reasonable and customary due diligence review of underwriters during normal business hours, on reasonable advance notice and without undue burden or hardship on the Company; provided that (A) any party receiving confidential materials shall execute a confidentiality agreement on customary terms if reasonably requested by the Company and (B) the Company may in its reasonable discretion restrict access to competitively sensitive or legally privileged documents or information, (ii) cause the chief executive officer and chief financial officer to be available at reasonable dates and times to participate in “road show” presentations and/or investor conference calls to market the Registrable Securities during normal business hours, on reasonable advance notice and without undue burden or hardship on the Company or the conduct of the Business of the Company; provided that the aggregate number of days of “road show” presentations in connection with an underwritten offering of Registrable Securities for each registration pursuant to a demand made under Section 2 shall not exceed five (5) Business Days and (iii) negotiate and execute an underwriting agreement in customary form with the managing underwriter(s) of such offering and such other documents reasonably required under the terms of such underwriting arrangements, including using commercially reasonable efforts to procure a customary legal opinion and auditor “comfort” letters.  The Investor shall also enter into and perform its obligations under any such underwriting agreement.

 

(g)                                  Give notice to the Investor as promptly as reasonably practicable:

 

(i)                                     when any registration statement filed pursuant to Section 2 or in which Registrable Securities are included pursuant to Section 3 or any amendment to such registration statement has been filed with the SEC and when such registration statement or any post-effective amendment to such registration statement has become effective;

 

(ii)                                  of any request by the SEC for amendments or supplements to any registration statement (or any information incorporated by reference in, or exhibits to, such registration statement) filed pursuant to Section 2 or in which Registrable Securities are included pursuant to Section 3 or the prospectus (including information incorporated by reference in such prospectus) included in such registration statement or for additional information;

 

(iii)                               of the issuance by the SEC of any stop order suspending the effectiveness of any registration statement filed pursuant to Section 2 or in which Registrable Securities are included pursuant to Section 3 or the initiation of any proceedings for that purpose;

 

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(iv)                              of the receipt by the Company or its legal counsel of any notification with respect to the suspension of the qualification of the Common Stock for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; and

 

(v)                                 of the occurrence of any event that requires the Company to make changes to any effective registration statement or the prospectus so that, as of such date, they (A) do not contain any untrue statement of a material fact and (B) do not omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of the prospectus, in the light of the circumstances under which they were made) not misleading).

 

(h)                                 Use its commercially reasonable efforts to prevent the issuance or obtain the withdrawal of any order suspending the effectiveness of any registration statement referred to in Section 5(g)(iii) at the earliest practicable time.

 

(i)                                     Upon request, furnish to the Investor, without charge, at least one copy of the registration statement and any post-effective amendment thereto, and, if the Investor so requests in writing, all exhibits thereto

 

(j)                                    Upon the occurrence of any event contemplated by subsections (g)(iii) through (v) above, the Company shall promptly prepare and file a post-effective amendment to the registration statement or an amendment or supplement to the related prospectus or file any other required document to remedy the basis for any suspension of the registration statement and so that, as thereafter delivered to any sales or placement agents or underwriters acting on the Investor’s behalf, the prospectus will not include an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.  If the Company notifies the Investor in accordance with subsections (g)(iii) through (v) above to suspend the use of the prospectus until the requisite changes to the prospectus have been made, then the Investor shall suspend the use of such prospectus and use its commercially reasonable efforts to return to the Company all copies of such prospectus (at the Company’s expense) other than permanent file copies then in the Investor’s or its Representatives’ possession; provided that such suspension shall be treated as a Suspension Period for purposes of calculating the maximum number of days of any Suspension Period under Section 2(d).

 

(k)                                 Use all commercially reasonable efforts to furnish or make available (and cause the Company’s officers, directors, employees and independent public accountants to furnish or make available) upon reasonable notice and during normal business hours, for inspection by the Investor, Investor’s Counsel, any underwriter participating in any disposition pursuant to such registration statement and any attorney, accountant or other agent retained by any such seller or underwriter (collectively the “Inspectors”), all pertinent financial and other records, pertinent documents and properties of the Company and its Subsidiaries, as shall be reasonably necessary to enable them to exercise their due diligence responsibility pursuant to the Securities Act, the Exchange Act and the rules and regulations thereunder, and cause the Company’s officers, directors and employees to supply all information  reasonably requested by any such Inspector in connection with such registration statement.  Records that the Company determines, in good faith, to be confidential and which it notifies the Inspectors are confidential shall not be disclosed by the Inspectors (and the Inspectors shall confirm their agreement in

 

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writing in advance to the Company if the Company shall so request) unless (A) the disclosure of such Records is necessary, in the Inspector’s judgment, to avoid or correct a misstatement or omission in the registration statement, (B) the release of such records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction after compliance with the last sentence of this clause (k) or (C) the information in such records was known to the Inspectors on a nonconfidential basis prior to its disclosure by the Company or has been made generally available to the public.  The Investor agrees that it shall, upon learning that disclosure of such records is sought in a court of competent jurisdiction, give notice to the Company and allow the Company, at the Company’s expense, to undertake appropriate action to prevent disclosure of the records deemed confidential.

 

(l)                                     Keep Investor and Investor’s Counsel advised in writing as to the initiation and, as appropriate, of the progress of any registration under Section 2 or Section 3 and provide Investor’s Counsel with all correspondence with the SEC in connection with any such registration statement.

 

(m)                             No later than the effective date of any registration statement, use commercially reasonable efforts to procure the cooperation of the Company’s transfer agent for settling any offering or sale of Registrable Securities, including with respect to the transfer of physical stock certificates into book-entry form in accordance with any procedures reasonably requested by the Investor or the managing underwriter(s).  In connection therewith, if reasonably required by the Company’s transfer agent, the Company shall promptly after the effectiveness of the registration statement cause an opinion of counsel as to the effectiveness of the registration statement to be delivered to and maintained with its transfer agent, together with any other authorizations, certificates and directions required by the transfer agent which authorize and direct the transfer agent to issue such Registrable Securities without legend upon sale by the holder of such shares of Registrable Securities under the registration statement.

 

(n)                                 Use its reasonable best efforts to take or cause to be taken all other actions, and do and cause to be done all other things, necessary or reasonably advisable in the opinion of the Investor to effect the registration of the Registrable Securities contemplated hereby.

 

Section 6.                                          Suspension of Sales.

 

(a)                                 Prior to the sale or distribution of any Registrable Securities pursuant to a registration statement that is for an offering to be made on a continuous basis pursuant to Rule 415 under the Securities Act (or any similar rule that may be adopted by the SEC), the Investor shall give at least two (2) Business Days prior written notice thereof to the Company (a “Sale Notice”) and the Investor (and any participating Permitted Holders) shall not sell or distribute any Registrable Securities unless the Investor has timely provided such Sale Notice and, subject to the Shelf Suspension period described below, until the expiration of such 2-Business Day period.  If in response to a Sale Notice, the Company shall provide to the Investor a certificate signed by the Chief Executive Officer of the Company stating that the Company would have to make an Adverse Disclosure (as determined pursuant to the definition thereof) (the “Shelf Restriction”), then the Company may, by written notice thereof to the Investor (a “Shelf Suspension Notice”), suspend use of the registration statement by the Investor (and any

 

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participating Permitted Holders) until the expiration of the Shelf Restriction (a “Shelf Suspension”); provided that the period of any such Shelf Suspension may not exceed the Suspension Period set forth in Section 2(d).  In the case of a Shelf Suspension, the Investor (and any participating Permitted Holder) agrees to suspend use of the applicable prospectus and any issuer free writing prospectuses in connection with any sale or purchase of, or offer to sell or purchase, Registrable Securities, upon receipt of the Shelf Suspension Notice referred to above.  The Company shall immediately notify the Investor upon the termination of any Shelf Suspension, and either confirm that the registration statement can be used or supplement or make amendments to the registration statement to the extent required by the registration form used by the Company for the Shelf Registration or by the Securities Act or the rules or regulations promulgated thereunder and promptly notify the Investor thereof.  The Company agrees to not deliver a Shelf Suspension Notice to the Investor or otherwise inform the Investor of a Shelf Restriction unless and until the Investor delivers a Sale Notice to the Company.

 

(b)                                 Upon receipt of written notice from the Company pursuant to Section 5(g)(v), the Investor (and any participating Permitted Holder) shall immediately discontinue disposition of Registrable Securities until the Investor (i) has received copies of a supplemented or amended prospectus or prospectus supplement pursuant to Section 5(j) or (ii) is advised in writing by the Company that the use of the prospectus and, if applicable, prospectus supplement may be resumed, and, if so directed by the Company, the Investor shall deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in the Investor’s possession, of the prospectus and, if applicable, prospectus supplement covering such Registrable Securities current at the time of receipt of such notice.

 

Section 7.                                          Books and Records; Access.  For so long as the Investor’s Ownership Percentage is 5% or more, the Company shall permit the Investor and its designated representatives, at reasonable times and upon reasonable prior notice to the Company, to examine the records and books of account of the Company and its Subsidiaries and to discuss the affairs, finances and condition of the Company or any of its Subsidiaries with the officers of the Company or any such Subsidiary and the Company’s independent accountants.  In addition, for so long as the Investor’s Ownership Percentage is 5% or more, upon written request of the Investor, the Company shall provide to the Investor duplicate copies of such financial and other information concerning the Company and its Subsidiaries as may from time to time be reasonably requested by such Investor.

 

Section 8.                                          Restrictions on Transfer.

 

(a)                                 Subject to Section 8(b), the Investor shall not, directly or indirectly, sell, transfer or otherwise dispose of any Preferred Shares or shares of Series A Preferred Stock issued as PIK Dividends without the Company’s prior written consent (such consent to be provided or withheld by a majority of directors voting who are independent directors and disinterested in the matter).

 

(b)                                 Notwithstanding the foregoing Section 8(a), the following transfers (“Permitted Transfers”) shall be permitted (without prior consent):

 

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(i)                                     to a Permitted Holder who agrees to be bound by the terms of this Agreement;

 

(ii)                                  in a Reorganization Event (as defined in the Certificate of Designations);

 

(iii)                               in connection with a redemption pursuant to the terms of the Certificate of Designations (including pursuant to Section 5 thereof);

 

(iv)                              in connection with a conversion to Common Stock pursuant to the terms of the Certificate of Designations; or

 

(v)                                 in any Pro Rata Transaction.

 

(c)                                  For purpose of this Agreement, a “Pro Rata Transaction” shall mean any transaction (excluding any Reorganization Event (as defined in the Certificate of Designations)) in which all stockholders of the Company (x) are offered terms substantially similar to those given to the Investor (as described in clause (y) below), or otherwise are offered the opportunity to, or will, participate in such transaction on a pro rata basis, and (y) are entitled to receive consideration of equal market value (on a per share or as-converted basis), with no value paid to any holder of Preferred Shares in respect of any liquidation preference, option value, dividend (except for any accrued but unpaid dividends in accordance with the Certificate of Designations through the date of such transaction).  The Company shall cooperate with, and not frustrate, any transfers by the Investor or Permitted Holders that are not prohibited by this Agreement.

 

Section 9.                                          Standstill Restrictions; Voting; Dividends.

 

(a)                                 Standstill.  For as long as the holders of the Series A Preferred have the right to nominate a Series A Preferred Director to the Board pursuant to Section 8(b) of the Certificate of Designations, without the prior approval by a majority of directors voting who are not Series A Preferred Directors, neither the Investor nor its affiliates shall directly or indirectly purchase or acquire any debt or equity securities of the Company, any Equity-Linked Securities, or any other right to acquire such securities, in each case that would result in the Investor’s Standstill Percentage being in excess of 30%; provided, however, the foregoing restrictions shall not prohibit the  purchase of the Preferred Shares pursuant to the Purchase Agreement or the receipt  of shares of Series A Preferred issued as PIK Dividends pursuant to the Certificate of Designations, shares of Common Stock received upon conversion of Preferred Shares or shares of Series A Preferred issued as PIK Dividends or receipt of any shares of Series A Preferred, Common Stock or other securities of the Company otherwise paid as dividends or as an increase of the Liquidation Preference (as defined in the Certificate of Designations) or distributions thereon.

 

(b)                                 Sales or Other Process.  Notwithstanding Section 9(a), if the Board decides to engage in a process that could reasonably be expected to give rise to a merger, tender offer, substantial share investment, change of control transaction or other extraordinary transaction related to the Company, the Company shall invite the Investor to participate in such process on the terms and conditions generally made available to the other participants in such process; provided, however, that in the event the Investor participates in such process, each

 

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Series A Preferred Director shall recuse himself or herself from voting on, or otherwise receiving any confidential information in his or her capacity as a Series A Preferred Director regarding, matters in connection with such process; provided, further, that, following the termination of the Investor’s participation in any process, such director’s right to vote on, and receive confidential information about, the process shall be reinstated.

 

(c)                                  Voting.  For as long as the holders of Series A Preferred have the right to nominate a Series A Preferred Director to the Board pursuant to Section 8(b) of the Certificate of Designations, in the event that the Board determines to effect a reorganization, merger, consolidation or similar transaction involving the Company and requiring stockholder approval, the Investor will cause all of its shares of Company Capital Stock that are entitled to vote to be voted in favor of any such transaction, if and only if (a) the Investor will receive an amount in cash equal to the sum of (i) $185,000,000, (ii) in respect of each share of Series A Preferred, the dollar value of the Accrued Dividends (as defined in the Certificate of Designations), (iii) the dollar value of all outstanding shares of Series A Preferred, if any, issued as PIK Dividends multiplied by $1,000, (iv) in respect of each share of Series A Preferred, the dollar value of any amount of the Net Preferred Dividend (as defined in the Certificate of Designations) added to the Liquidation Preference (as defined in the Certificate of Designations) and (v) if applicable, in respect of each share of Series A Preferred, the aggregate amount of all PIK Dividends that would have been paid in respect of a Preferred Share or share of Series A Preferred issued as PIK Dividends in each remaining Dividend Period (as defined in the Certificate of Designations) from the date of the Board’s determination through the thirty-month (30) anniversary of the Original Issue Date multiplied by $1,000, (b) any shares of Common Stock or shares of Series A Preferred then owned by the Investor are not treated in any manner adverse to any other shares of the Company (including, with respect to the shares of Series A Preferred, on an as-converted basis (without regard to any limitation on conversion in the Certificate of Designations) and (c) the terms of such transaction are, taken as a whole, more favorable to the Company’s stockholders (as determined by the Board) than the terms of any alternative transaction proposed by the Investor or its affiliates.

 

(d)                                 The parties acknowledge that the Investor has provided the Company with a schedule accurately presenting the calculation of the Preferred Dividends (as defined in the Certificate of Designations) pursuant to the Certificate of Designations in certain circumstances.

 

Section 10.                                   Preemptive Rights.

 

(a)                                 The Investor will have the preemptive rights set forth in this Section 10 with respect to any issuance of any Common Stock or Equity-Linked Securities that are issued after the date hereof (any such issuance, other than those described in clauses (i) through (iii) below, a “Preemptive Rights Issuance”), except for (i) issuances solely to officers, employees, directors and consultants pursuant to and in accordance with equity incentive plans of the Company that were publicly filed with the SEC prior to the date hereof (provided that any such issuances are made in accordance with the terms, conditions and limitations of such plans as they existed as of the date of hereof and without effect to any amendments or other modifications thereof after the date hereof unless approved in writing by the Investor) or pursuant to equity incentive plans of the Company that are approved by the Board and publicly filed with the SEC after the date hereof, (ii) issuances of shares of Common Stock as consideration in any merger or

 

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acquisition approved pursuant to Section 9(c), or (iii) issuances of shares of Common Stock upon conversion of any of the Company’s 0.75% Convertible Senior Notes, due 2019 (provided that any such issuances are made in accordance with the terms, conditions and limitations of the indenture governing such  notes as it existed as of the date hereof).  The preemptive rights in this Section 10 shall terminate at such time as the holders of Series A Preferred no longer have the right to nominate a Series A Preferred Director to the Board pursuant to Section 8(b) of the Certificate of Designations.

 

(b)                                 If the Company at any time, or from time to time, effects a Preemptive Rights Issuance, the Company shall give prompt written notice to the Investor (but in no event later than ten (10) days prior to such issuance), which notice shall set forth the number and type of the securities to be issued, the issuance date, the offerees or transferees, the price per security, and all of the other terms and conditions of such issuance, which shall be deemed updated by delivery of the final documentation for such issuance to the Investor.  The Investor may, by written notice to the Company (a “Preemptive Rights Notice”) delivered at any time thereafter but no later than twenty (20) days after the consummation of such Preemptive Rights Issuance, elect to purchase (or designate an affiliate to purchase) a number of securities specified in such Preemptive Rights Notice (which number may be any number up to but not exceeding the Preemptive Rights Cap Amount applicable to such Preemptive Rights Issuance), on the same terms and conditions as such Preemptive Rights Issuance (it being understood and agreed that (i) the price per security that the Investors shall pay shall be the same as the price per security set forth in the Preemptive Rights Notice, and (ii) the Investors shall not be required to comply with any terms, conditions, obligations or restrictions (including, without limitation, any non-compete, standstill or other limitations but excluding any remaining period of a transfer or lock-up restriction applicable at such time to other purchasers in such Preemptive Rights Issuance) not necessary for the effectuation of the sale or issuance of such securities).  If the Investor exercises its preemptive rights hereunder with respect to such Preemptive Rights Issuance, the Company shall (or shall cause such subsidiary to) issue to the Investor (or its designated affiliate) the number of securities specified in such Preemptive Rights Notice promptly thereafter (and provided that, if the Investor shall have so notified the Company at least 3 Business Days prior to the issuance date set forth in the Company’s notice, at the Investor’s election such purchase and sale shall occur on the same date as, and immediately following, the Preemptive Right Issuance).  For the avoidance of doubt, in the event that the issuance of Common Stock or Equity-Linked Securities in a Preemptive Rights Issuance involves the purchase of a package of securities that includes Common Stock or Equity-Linked Securities and other securities in the same Preemptive Rights Issuance, the Investor shall have the right to acquire its pro rata portion of such other securities, together with its pro rata portion of such Common Stock or Equity-Linked Securities, in the same manner described above (as to amount, price and other terms), or solely acquire the Common Stock or Equity-Linked Securities.

 

(c)                                  The election by the Investor not to exercise its preemptive rights hereunder in any one instance shall not affect its right as to any future Preemptive Rights Issuances.

 

(d)                                 Notwithstanding anything to the contrary in this Agreement, in the event that the Investor exercises its preemptive rights pursuant to this Section 10 and the purchase or issuance of such securities would require the Company to obtain approval of its stockholders

 

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pursuant to NASDAQ listing rule 5635 (or any similar successor rule of NASDAQ or other United States national securities exchange that the Common Stock is listed upon, if any), the Company and the Investor will use their respective commercially reasonable efforts to negotiate in good faith the terms of any such transaction, including without limitation the terms of any securities of the Company issued pursuant to such transaction to the Investor, such that the issuance to the Investor would not require such stockholder approval while providing the Investor with substantially similar benefits and rights of such securities issued in the Preemptive Rights Issuance (including with respect to maintaining the Preferred Percentage (as defined in the Certificate of Designations)).

 

Section 11.                                   Governance.

 

(a)                                 Effective as of the Closing, the Board shall consist of ten (10) members, as set forth on Exhibit A hereto.  As promptly as practicable after the date hereof (but in no event later than March 1, 2018), the Board shall take all action necessary to appoint Peter Berger as a member of the Compensation Committee of the Board and Peter Berger as an observer of the Audit Committee of the Board (the foregoing committees of the Board collectively, the “Committees”).  Prior to such actions, the Committees shall not convene any meetings, or otherwise conduct any business.

 

(b)                                 From and after the Closing, so long as the holders of Series A Preferred have the right to nominate a Series A Preferred Director to the Board pursuant to Section 8(b) of the Certificate of Designations, the Board shall consist of ten (10) members, composed of (i) two (2) Series A Preferred Directors; (ii) four (4) directors who meet the independence criteria set forth in the listing standards of the NASDAQ Global Select Market to the extent applicable to the Company (or other United States national securities exchange that the Common Stock is listed upon, if any) (the “Independence Criteria”), and selected pursuant to Section 11(d) (each such director, an “Independent Director”); and (iii) four (4) other directors, two of whom shall satisfy the Independence Criteria (and, as of the Closing, one (1) of whom shall be the individual then serving as chief executive officer of the Company (as selected pursuant to Section 8.14 of the Purchase Agreement), one (1) of whom shall be the current chairman of the Board and the remaining two (2) shall be two of the directors on the Board as of the date hereof who satisfy the Independence Criteria); provided that the number of Series A Preferred Directors and Independent Directors may be adjusted pursuant to Section 11(e).

 

(c)                                  The Company shall, at any annual or special meeting of stockholders of the Company at which directors are to be elected, so long as the holders of Series A Preferred have the right to nominate a Series A Preferred Director to the Board pursuant to Section 8(b) of the Certificate of Designations, include the Series A Preferred Directors (or such other persons as may be selected in writing by the Investor) and the Independent Directors in the Company’s slate of nominees as for each relevant annual meeting of the Company’s stockholders (subject to each designee’s satisfaction of all applicable requirements regarding service as a director of the Company under applicable Law, regulation or stock exchange rules regarding service as a director; provided, however, that in no event shall any such designee’s relationship with the Investor (or any other actual or potential lack of independence resulting therefrom) be considered to disqualify such designee from being a member of the Board pursuant to this Section 11(c)) and shall recommend that the holders of the Series A Preferred Stock and/or Common Stock, as

 

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applicable, vote in favor of such Series A Preferred Directors and such Independent Directors and shall support such Series A Preferred Directors and Independent Directors in a manner generally no less rigorous and favorable than the manner in which the Company supports its other nominees.

 

(d)                                 Prior to the Closing (and thereafter, as set forth in Exhibit A hereto), the individuals who shall serve in the capacity of Independent Directors as of the Closing shall be mutually selected by the Nominating and Corporate Governance Committee and the Investor.  Such individuals shall be (i) selected in good faith (taking into account the requisite skills and experience required for effective service on the board of directors of a company such as the Company and the compensation required to attract and retain a director with such requisite skills) and (ii) meet the Independence Criteria, and the Company and the Investor shall mutually agree upon the class of directors (as provided in Article VI of the Certificate of Incorporation of the Company) in which each such selected Independent Director shall serve as of the Closing.  The members of the Nominating and Corporate Governance Committee as of the Closing shall be as set forth on Exhibit A hereto.  Following the Closing, so long as the holders of Series A Preferred have the right to nominate a Series A Preferred Director to the Board pursuant to Section 8(b) of the Certificate of Designations, the Investor shall have the right to designate two members of the Nominating and Corporate Governance Committee from among the Independent Directors and the Series A Preferred Directors, provided that each such designee shall meet any applicable requirements for service on such committee under the listing standards of the principal stock exchange on which the Common Stock is then listed, if any.

 

(e)                                  (i) If at any time after the Closing, the Investor no longer meets the Ownership Threshold (as defined in the Certificate of Designations) but maintains the right to nominate one Series A Preferred Director pursuant to Section (8)(b) of the Certificate of Designations, the Investor shall cause one of the Series A Preferred Designees then sitting on the Board to offer to resign from the Board with immediate effect, and (ii) the vacancy caused by such resignation, if accepted by the Board, shall be filled by an Independent Director, in accordance with Section 11(d).

 

(f)                                   If a Series A Preferred Director resigns, dies, is not elected or is disqualified or removed from the Board, the Investor may nominate a replacement Series A Preferred Director, and such replacement Series A Preferred Director shall promptly be appointed to the Board, as provided in the bylaws of the Company.

 

(g)                                  The Series A Preferred Directors and the Independent Directors shall be entitled to reimbursement from the Company for all out-of-pocket expenses for travel and other arrangements reasonably incurred and paid by such directors in connection with their participation in meetings of the Board or committees thereof, subject to the provisions of the Company’s then current non-employee director compensation program.

 

(h)                                 From and after the Closing, the Company shall use reasonable best efforts to maintain in effect directors’ and officers’ insurance with terms, conditions, retentions and limits of liability that are in the aggregate at least as favorable as those contained in such directors’ and officers’ insurance policies in effect as of the date hereof.  Promptly following election to the Board, the Company shall enter into the Company’s standard indemnification

 

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agreement with each Series A Preferred Director providing for indemnification to the fullest extent permitted by applicable Law.

 

Section 12.                                   Indemnification.

 

(a)                                 Notwithstanding any termination of this Agreement, the Company shall indemnify and hold harmless the Investor and any participating Permitted Holder, and their respective officers, directors, employees, agents, partners, members, stockholders, representatives and affiliates, and each person or entity, if any, that controls the Investor within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and the officers, directors, employees, agents and employees of each such controlling Person (each, an “Investor Indemnitee”), against any and all losses, claims, damages, actions, liabilities, costs and expenses (including reasonable fees, expenses and disbursements of attorneys and other professionals), joint or several, arising out of or based upon any untrue or alleged untrue statement of material fact contained or incorporated by reference in any registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto or contained in any “issuer free writing prospectus” (as such term is defined in Rule 433 under the Securities Act) prepared by the Company or authorized by it in writing for use by the Investor or any amendment or supplement thereto; or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided that the Company shall not be liable to such Investor Indemnitee to the extent that any such loss, claim, damage, liability (or action or proceeding in respect thereof) or expense arises out of or is based upon (i) any untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and in conformity with written information furnished to the Company by or on behalf of the Investor Indemnitee claiming indemnification specifically for inclusion therein, (ii) offers or sales effected by or on behalf such Investor Indemnitee “by means of” (as defined in Securities Act Rule 159A) a “free writing prospectus” (as defined in Securities Act Rule 405) that was not authorized in writing by the Company, or (iii) the failure to deliver or make available to a purchaser of Registrable Securities a copy of any preliminary prospectus, pricing information or final prospectus contained in the applicable registration statement or any amendments or supplements thereto (to the extent the same is required by applicable Law to be delivered or made available to such purchaser at the time of sale of contract); provided that the Company shall have delivered to the Investor such preliminary prospectus or final prospectus contained in the applicable registration statement and any amendments or supplements thereto pursuant to Section 5(d) no later than the time of contract of sale in accordance with Rule 159 under the Securities Act.

 

(b)                                 The Investor shall indemnify and hold harmless the Company and its officers, directors, employees, agents, representatives and affiliates against any and all losses, claims, damages, actions, liabilities, costs and expenses (including reasonable fees, expenses and disbursements of attorneys and other professionals) arising out of or based upon any untrue or alleged untrue statement of material fact contained in any registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto or contained in any “issuer free writing prospectus” (as such term is defined in Rule 433 under the Securities Act), or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the

 

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circumstances under which they were made, not misleading, but only to the extent, that such untrue statements or omissions are based solely upon written information relating to the Investor furnished to the Company by or on behalf of the Investor specifically for inclusion in the documents referred to in the foregoing indemnity.  In no event shall the liability of the Investor hereunder be greater in amount than the dollar amount of the net proceeds received by the Investor and any participating Permitted Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.

 

(c)                                  If any proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall assume the defense in such proceeding, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with such defense; provided that any such notice or other communication pursuant to this Section 12 between the Company and an Indemnifying Party or an Indemnified Party, as the case may be, shall be delivered to or by, as the case may be, the Investor; provided, further, that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Section 12, except (and only) to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have proximately and materially adversely prejudiced the Indemnifying Party.  An Indemnified Party shall have the right to employ separate counsel in any such proceeding and to participate in the defense of such proceeding, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless:  (1) the Indemnifying Party has agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to assume the defense of such proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such proceeding; or (3) the named parties to any such proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel that representation of both such Indemnified Party and the Indemnifying Party by the same counsel would be inappropriate because of an actual conflict of interest between the Indemnifying Party and such Indemnified Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Party); provided that the Indemnifying Party shall not be liable for the fees and expenses of more than one separate firm of attorneys at any time for all Indemnified Parties.  The Indemnifying Party shall not be liable for any settlement of any such proceeding effected without its written consent, which consent shall not be unreasonably withheld, conditioned or delayed.  No Indemnifying Party shall, without the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld, conditioned or delayed), effect any settlement of any pending proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such proceeding.  All fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, promptly upon receipt of written notice thereof to the Indemnifying Party (regardless of whether it is ultimately determined that an

 

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Indemnified Party is not entitled to indemnification hereunder, provided that the Indemnifying Party may require such Indemnified Party to undertake to reimburse all such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not entitled to indemnification under this Section 12).

 

(d)                                 If the indemnification provided for in Section 12(a) or Section 12(b) is held by a court of competent jurisdiction to be unavailable to an Indemnified Party with respect to any losses, claims, damages, actions, liabilities, costs or expenses referred to in Section 12(a) or Section 12(b), as the case may be, or is insufficient to hold the Indemnified Party harmless as contemplated therein, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages, actions, liabilities, costs or expenses in such proportion as is appropriate to reflect the relative fault of the Indemnified Party, on the one hand, and the Indemnifying Party, on the other hand, in connection with the statements or omissions which resulted in such losses, claims, damages, actions, liabilities, costs or expenses as well as any other relevant equitable considerations.  The relative fault of the Indemnifying Party, on the one hand, and of the Indemnified Party, on the other hand, shall be determined by reference to, among other factors, whether the untrue or alleged untrue statement of a material fact or omission to state a material fact relates to information supplied by the Indemnifying Party or by the Indemnified Party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.  The Company and the Investor agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in this Section 12(d).  Notwithstanding the foregoing, in no event shall the liability of the Investor hereunder be greater in amount than the dollar amount of the net proceeds received by the Investor and any participating Permitted Holder upon the sale of the Registrable Securities giving rise to such contribution obligation.  No Indemnified Party guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from an Indemnifying Party not guilty of such fraudulent misrepresentation.

 

Section 13.                                   Agreement to Furnish Information.  If reasonably requested by the Company or the book-running managing underwriters of Common Stock (or other securities of the Company convertible into Common Stock), the Investor and any participating Permitted Holder shall provide such information regarding the Investor and any participating Permitted Holder, and their respective Registrable Securities, as may be reasonably required by the Company or such representative of the book-running managing underwriters in connection with the filing of a registration statement and the completion of any public offering of the Registrable Securities pursuant to this Agreement.

 

Section 14.                                   Rule 144 Reporting.  With a view to making available to the Investor the benefits of certain rules and regulations of the SEC which may permit the sale of the Registrable Securities that are Common Stock to the public without registration, the Company agrees to use its commercially reasonable efforts to:  (i) make and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act or any similar or analogous rule promulgated under the Securities Act, at all times after the effective date of this Agreement; (ii) file with the SEC, in a timely manner, all reports and other documents required

 

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of the Company under the Exchange Act; and (iii) so long as the Investor and any Permitted Holder owns any Registrable Securities, furnish to the Investor forthwith upon request:  a written statement by the Company as to its compliance with the reporting requirements of Rule 144 under the Securities Act, and of the Exchange Act; a copy of the most recent annual or quarterly report of the Company; and such other reports and documents as the Investor may reasonably request in availing itself of any rule or regulation of the SEC allowing it to sell any such Common Stock without registration.

 

Section 15.                                   Section 16b-3.  So long as the holders of Series A Preferred have the right to nominate a Series A Preferred Director to the Board pursuant to Section 8(b) of the Certificate of Designations, the Board shall take such action as is reasonably necessary to cause the exemption of any acquisition or disposition (or deemed acquisition or disposition) of Preferred Shares, shares of Series A Preferred Stock issued as PIK Dividends, shares of Common Stock or any other Registrable Securities by the Investor from the liability provisions of Section 16(b) of the Exchange Act pursuant to Rule 16b-3 so long as such exemption is not prohibited by applicable Law; for the avoidance of doubt, the Company shall pass one or more exemptive resolutions by the Board each time there is any purported acquisition or disposition of Preferred Shares, shares of Series A Preferred Stock issued as PIK Dividends, shares of Common Stock or any other capital stock of the Company by the Investor with requisite specificity to exempt such purported acquisition or disposition from the liability provisions of Section 16(b) of the Exchange Act pursuant to Rule 16b-3.

 

Section 16.                                   Confidentiality.

 

(a)                                 The parties acknowledge and agree that each Series A Preferred Director may share Confidential Information with the Investor and its affiliates, to the extent reasonably necessary to monitor, evaluate or otherwise make decisions in connection with its investment in the Preferred Shares or the Company.  The Investor will keep confidential and will not disclose, divulge, or use for any purpose (other than to monitor its investment in the Company) any Confidential Information obtained from the Company pursuant to the terms of this Agreement (including, without limitation, notice of the Company’s intention to file a registration statement); provided, however, that the Investor may disclose Confidential Information (i) to its attorneys, accountants, consultants, and other professionals to the extent reasonably necessary to obtain their services in connection with monitoring its investment in the Company; (ii) to any prospective purchaser of any Registrable Securities from the Investor, if such prospective purchaser agrees in writing to be bound by the provisions of this Section 16(a); (iii) in connection with periodic reports to its investors, partners, affiliates or members, the Investor may provide summary information regarding the Company’s financial information in such reports, as long as such investors, partners, affiliates and members are advised that such information is confidential or (iv) as may otherwise be required by Law, provided that the Investor promptly notifies the Company of such disclosure and takes reasonable steps to minimize the extent of any such required disclosure.  Receipt of Confidential Information shall not be imputed to any entity, whether or not an affiliate of the Investor, solely by virtue of the fact that the Investor’s director, officer, employee, agent, contractor, consultant or advisor is also a director, officer, employee, agent, contractor, consultant or advisor of such entity.

 

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(b)                                 Notwithstanding anything to the contrary herein, the restrictions contained in Section 16(a) shall not apply to information furnished to Series A Preferred Director in his or her capacity as a director of the Company to the extent of his or her lawful use of such information in such capacity.  Nothing herein shall limit any such persons from fulfilling his or her fiduciary and other duties under applicable Law as members of the Board.

 

(c)                                  For so long as the Investor holds any shares of Registrable Securities, and except for legally required disclosures (including in any registration statement) the Company, its Subsidiaries and their respective officers and directors shall not, and the Company will cause its and its Subsidiaries’ employees not to, without the prior approval of the Investor, use the corporate name, trade name or logo of the Investor or any Permitted Holder, any of its affiliates, any of their investment funds or any portfolio companies of such investment funds in a public manner or format (including reference on or links to websites and press releases).

 

Section 17.                                   Termination.  Other than as expressly set forth in this Agreement, this Agreement shall terminate (a) upon the mutual written agreement of the Company and the Investor or (b) the date on which the Investor or any Permitted Holder no longer holds any Preferred Shares or Registrable Securities.

 

Section 18.                                   Miscellaneous.

 

(a)                                 No Inconsistent Agreements; Additional Rights.  The Company represents and warrants that it has not entered into, and agrees that it will not enter into, any agreement with respect to its securities that violates or subordinates or is otherwise inconsistent with the rights granted to the Investor under this Agreement.  If the Company enters into any agreement after the date hereof granting any Person registration rights with respect to any security of Parent which agreement contains any material provisions more favorable to such Person than those set forth in this Agreement, Parent will notify the Investor and will agree to such amendments to this Agreement as may be necessary to provide these rights to the Investor, at Investor’s election.

 

(b)                                 Governing Law.  This Agreement shall be governed in all respects by the laws of the State of Delaware without regard to any choice of laws or conflict of laws provisions that would require the application of the laws of any other jurisdiction.

 

(c)                                  Jurisdiction; Enforcement.  The parties agree that irreparable damage would occur if any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached.  It is accordingly agreed that each of the parties shall be entitled (in addition to any other remedy that may be available to it, including monetary damages) to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement exclusively in any state or federal courts located in the Chancery Court of the State of Delaware and any state appellate court therefrom sitting in New Castle County in the State of Delaware (or, solely if the Chancery Court of the State of Delaware declines to accept jurisdiction over a particular matter, any state or federal court within the State of Delaware).  In addition, each of the parties irrevocably agrees that any legal action or proceeding with respect to this Agreement and the rights and obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder brought by the other party or its successors or

 

27

 

assigns, shall be brought and determined exclusively in any state or federal courts located in the Chancery Court of the State of Delaware and any state appellate court therefrom sitting in New Castle County in the State of Delaware (or, solely if the Chancery Court of the State of Delaware declines to accept jurisdiction over a particular matter, any state or federal court within the State of Delaware).  The parties further agree that no party to this Agreement shall be required to obtain, furnish or post any bond or similar instrument in connection with or as a condition to obtaining any remedy referred to in this Section and each party waives any objection to the imposition of such relief or any right it may have to require the obtaining, furnishing or posting of any such bond or similar instrument.  Each of the parties hereby irrevocably submits with regard to any such action or proceeding for itself and in respect of its property, generally and unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it will not bring any action relating to this Agreement or any of the transactions contemplated by this Agreement in any court other than the aforesaid courts.  Each of the parties hereby irrevocably waives, and agrees not to assert, by way of motion, as a defense, counterclaim or otherwise, in any action or proceeding with respect to this Agreement, (a) any claim that it is not personally subject to the jurisdiction of the above named courts for any reason other than the failure to serve in accordance with this Section 18(g), (b) any claim that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (c) to the fullest extent permitted by the applicable Law, any claim that (i) the suit, action or proceeding in such court is brought in an inconvenient forum, (ii) the venue of such suit, action or proceeding is improper or (iii) this Agreement, or the subject matter hereof, may not be enforced in or by such courts.  Each party hereby consents to service being made through the notice procedures set forth in Section 18(g) and agrees that service of any process, summons, notice or document by registered mail (return receipt requested and first-class postage prepaid) to the respective addresses set forth in Section 18(g) shall be effective service of process for any suit or proceeding in connection with this Agreement or the transactions contemplated by this Agreement.  EACH OF THE PARTIES KNOWINGLY, INTENTIONALLY AND VOLUNTARILY WITH AND UPON THE ADVICE OF COMPETENT COUNSEL IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

(d)                                 Successors and Assigns.  Except as otherwise provided in this Agreement, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors, and administrators of the parties; provided, however, that the rights and obligations of parties under this Agreement shall not be assignable to any Person without the prior written consent of the other party, which consent may be conditioned on such assignee or successor entering into executed a joinder agreement to this Agreement substantially in the form of Exhibit B (the “Joinder Agreement”).

 

(e)                                  No Third-Party Beneficiaries.  Notwithstanding anything contained in this Agreement to the contrary, nothing in this Agreement, expressed or implied, is intended to confer, and this Agreement shall not confer, on any Person other than the parties to this Agreement any rights, remedies, obligations or liabilities under or by reason of this Agreement, and no other Persons shall have any standing with respect to this Agreement or the transactions contemplated by this Agreement; provided, however that each Indemnified Party (but only, in

 

28

 

the case of an Investor Indemnitee, if such Investor Indemnitee has complied with the requirements of Section 12(c), including the first proviso of Section 12(c)) shall be entitled to the rights, remedies and obligations provided to an Indemnified Party under Section 12, and each such Indemnified Party shall have standing as a third-party beneficiary under Section 12 to enforce such rights, remedies and obligations.

 

(f)                                   Entire Agreement.  This Agreement, the Purchase Agreement, the Certificate of Designation and the other documents delivered pursuant to the Purchase Agreement constitute the full and entire understanding and agreement among the parties hereto with regard to the subjects of this Agreement and such other agreements and documents.

 

(g)                                  Notices.  Except as otherwise provided in this Agreement, all notices, requests, claims, demands, waivers and other communications required or permitted under this Agreement shall be in writing and shall be mailed by reliable overnight delivery service or delivered by hand, facsimile or messenger, and email, as follows:

 

if to the Company:

 

Synchronoss Technologies, Inc.
 200 Crossing Blvd.
  Bridgewater, NJ 08807
 Facsimile No:  (908) 231-0762
 Attention:  Ronald Prague, Esq., Executive Vice President and General Counsel
 Email:  ronald.prague@synchronoss.com

 

with a copy to (which shall not constitute notice) to:

 

Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP
 One Marina Park Drive, Suite 900
 Boston, MA 02210
 Attention:                             Marc Dupré

Andrew Luh
 Facsimile:                             (617) 648-9199

Email:                                                mdupre@gunder.com

aluh@gunder.com

 

if to the Investor:

 

c/o Siris Capital Group, LLC
                                                  601 Lexington Avenue, 59th Floor, New York, NY 10022

 

29

 

Facsimile No:  212-231-2680
                                                  Attention: General Counsel
                                                 Email: legalnotices@siriscapital.com

 

with a copy to (which shall not constitute notice) to:

 

Wachtell, Lipton, Rosen & Katz
 51 West 52nd Street
 New York, NY 10019
 Attention:                             Andrew J.  Nussbaum
                                                                                     Igor Kirman
 Facsimile:                             (212) 403-2000 
 Email:                                                AJNussbaum@wlrk.com
                                                                                     IKirman@wlrk.com

 

or in any such case to such other address, facsimile number or telephone as any party hereto may, from time to time, designate in a written notice given in a like manner.  Notices shall be deemed given when actually delivered by overnight delivery service, hand or messenger, or when received by facsimile if promptly confirmed.

 

(h)                                 Delays or Omissions.  No delay or omission to exercise any right, power, or remedy accruing to any party to this Agreement shall impair any such right, power, or remedy of such party, nor shall it be construed to be a waiver of or acquiescence in any breach or default, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default.  All remedies, either under this Agreement or by law or otherwise afforded to the Investor, shall be cumulative and not alternative.

 

(i)                                     Expenses.  The Company and the Investor shall bear their own expenses and legal fees incurred on their behalf with respect to this Agreement and the transactions contemplated hereby, except as otherwise provided in Section 4.

 

(j)                                    Amendments and Waivers.  Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only if such amendment or waiver is in writing and signed, in the case of an amendment, by the Company and the Investor or, in the case of a waiver, by the party against whom the waiver is to be effective.  Any consent hereunder and any amendment or waiver of any term of this Agreement by the Company must be approved by a majority of directors voting who are not Series A Preferred Directors.  Any amendment or waiver effected in accordance with this paragraph shall be binding upon each holder of any Registrable Securities at the time outstanding (including securities convertible into Registrable Securities), each future holder of all such Registrable Securities, and the Company.

 

(k)                                 Non-Recourse.   All claims or causes of action (whether in contract or in tort, in law or in equity) that may be based upon, arise out of or relate to this Agreement, or the negotiation, execution or performance of this Agreement (including any representation or warranty made in or in connection with this Agreement or as an inducement to enter into this

 

30

 

Agreement), may be made only against the entities that are expressly identified as parties hereto and only with respect to the specific obligations undertaken by such parties as set forth herein with respect to such parties and no other Person shall have any liability for any obligations or liabilities based upon, arising out of, or related to this Agreement or the Transactions and no Person who is not a named party to this Agreement, including without limitation any present or past director, officer, employee, incorporator, member, partner, direct or indirect equityholder (including any members, partners or stockholders), manager, employee, incorporator, controlling person, management company, general partner, affiliate, trustees, agent, attorney, advisor, permitted assign and predecessor of any named party to this Agreement (“Non-Party Affiliates”), shall have any liability (whether in contract or in tort, in law or in equity, or based upon any theory that seeks to impose damages of an entity party against its owners or affiliates) for any damages arising under, in connection with or related to this Agreement or for any claim based on, in respect of, or by reason of this Agreement or its negotiation, execution, performance, non-performance, interpretation, termination, enforcement, construction or execution or any of the transactions contemplated hereby and each party hereto hereby waives and releases all such damages, claims and obligations against any such Non-Party Affiliates.

 

(l)                                     Counterparts.  This Agreement may be executed in any number of counterparts and signatures may be delivered by facsimile or in electronic format, each of which may be executed by less than all the parties, each of which shall be enforceable against the parties actually executing such counterparts and all of which together shall constitute one instrument.

 

(m)                             Severability.  If any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable, or void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Agreement and the balance of this Agreement shall be enforceable in accordance with its terms.

 

(n)                                 Titles and Subtitles; Interpretation.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.  When a reference is made in this Agreement to a Section or Schedule, such reference shall be to a Section or Schedule of this Agreement unless otherwise indicated.  Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” The definitions contained in this Agreement 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 term.  Any agreement, instrument or statute, rule or regulation defined or referred to in this Agreement means such agreement, instrument or statute, rule or regulation as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes.  Any reference to any section under the Securities Act or Exchange Act, or any rule promulgated thereunder, shall include any publicly available interpretive releases, policy statements, staff accounting bulletins, staff accounting manuals, staff legal bulletins, staff “no-action”, interpretive and exemptive letters, and staff compliance and disclosure interpretations (including “telephone interpretations”) of such section or rule by the SEC.  Each of the parties has participated in the drafting and negotiation of this Agreement.  If an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if it is drafted by each of the parties,

 

31

 

and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of authorship of any of the provisions of this Agreement.

 

[signature page follows]

 

32

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

 

	
 
    	
SILVER PRIVATE HOLDINGS   I, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter Berger
    
	
 
    	
 
    	
Name: Peter Berger
    
	
 
    	
 
    	
Title: Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SYNCHRONOSS   TECHNOLOGIES, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Glenn Lurie
    
	
 
    	
 
    	
Name: Glenn Lurie
    
	
 
    	
 
    	
Title: Chief Executive   Officer
    

 

[Signature Page to Investor Rights Agreement]

 

 

EXHIBIT A

 

Board

 

Series A Preferred Directors

1.              Frank Baker

2.              Peter Berger

 

Independent Directors

3.              Donnie Moore

4.              James McCormick

5.              Vacancy to be filled in good faith by the mutual agreement of the Investor and the Company as promptly as reasonably practicable after the date hereof (it being understood that the Investor shall have the sole right to recommend the individual to fill this vacancy)

6.              Vacancy to be filled in good faith by the mutual agreement of the Investor and the Company as promptly as reasonably practicable after the date hereof (it being understood that the Company shall have the sole right to recommend the individual to fill this vacancy)

 

Company Directors

7.              Glenn Lurie, Chief Executive Officer

8.              Stephen Waldis, Chairman of the Board

9.              William Cadogan

 

10.       Thomas Hopkins

Nominating and Corporate Governance Committee

 

Members

1.              Frank Baker

2.              Peter Berger

3.              William Cadogan

4.              Thomas Hopkins

 

 

EXHIBIT B

 

Form of Joinder Agreement to Investor Rights Agreement

[       ], 20[  ]

 

Reference is hereby made to the Investor Rights Agreement, dated February 15, 2018 (the “Investor Rights Agreement”), by and among Synchronoss Technologies, Inc., a Delaware corporation (the “Company”), and Silver Private Holdings I, LLC, a Delaware limited liability company (the “Investor”).

 

Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Investor Rights Agreement.

 

1.                                      Joinder.  The undersigned hereby acknowledges, agrees and confirms that, by its execution of this Joinder Agreement, it shall be deemed to be a party to the Investor Rights Agreement as if it were an original signatory thereto and hereby makes as of the date of the Investor Rights Agreement the representations and warranties and expressly assumes, and agrees to perform and discharge, all of the obligations and liabilities of the “Company” under the Investor Rights Agreement, including without limitation, any indemnity and contribution obligations under the Investor Rights Agreement.  All references in the Investor Rights Agreement to the “Company” shall hereafter mean the undersigned.

 

2.                                      Representations and Warranties.  The undersigned hereby represents and warrants to the Investor that it has all requisite power and authority to execute, deliver and perform its obligations under this Joinder Agreement to the Investor Rights Agreement and it has duly and validly taken all necessary action for the consummation of the transactions contemplated hereby and by the Investor Rights Agreement and that it has duly authorized, executed and delivered this Joinder Agreement to the Investor Rights Agreement and it is a valid and legally binding agreement enforceable against such undersigned in accordance with its terms.

 

3.                                      Counterparts.  This Joinder Agreement to the Investor Rights Agreement may be signed in one or more counterparts (which may include counterparts delivered by any standard form of telecommunication), each of which shall constitute an original and all of which together shall constitute one and the same agreement.

 

4.                                      Amendments.  No amendment or waiver of any provision of this Joinder Agreement to the Investor Rights Agreement, nor any consent or approval to any departure therefrom, shall in any event be effective unless the same shall be in writing and signed by the parties thereto.

 

5.                                      Headings.  The section headings used herein are for convenience only and shall not affect the construction hereof.

 

6.                                      Severability of Provisions.  In the event that any one of more of the provisions contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired or affected thereby, it being intended that all of the rights and privileges of the parties shall be enforceable to the fullest extent permitted by law.

 

7.                                      Applicable Law.  This Joinder Agreement to the Investor Rights Agreement shall be governed by and construed in accordance with the laws of the State of Delaware applicable to contracts

 

 

made and to be performed in the State of Delaware.  The parties hereto each hereby waive any right to trial by jury in any action, proceeding or counterclaim arising out of or relating to this Joinder Agreement to the Investor Rights Agreement.

 

[signature page follows]

 

 

IN WITNESS WHEREOF, the undersigned have executed this Joinder Agreement to the Investor Rights Agreement as of the date first written above.

 

	
 
    	
[·]
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    

 

The foregoing Joinder Agreement to the Investor Rights Agreement is hereby confirmed and
 accepted as of the date first above written.

 

	
SILVER   PRIVATE HOLDINGS I, LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:

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