Document:

EX-10.2

 Exhibit 10.2 

EXECUTION COPY 
  

 
  

CALIFORNIA REPUBLIC AUTO RECEIVABLES TRUST 2017-1, 

as Issuer, 
 MECHANICS BANK, 

as Administrator, 
 WILMINGTON
TRUST, NATIONAL ASSOCIATION, 
 as Owner Trustee, 

and 
 U.S. BANK NATIONAL
ASSOCIATION, 
 as Indenture Trustee 
  

 
 ADMINISTRATION
AGREEMENT 
 Dated as of February 1, 2017 
  

 
  

 
  

							
	TABLE OF CONTENTS	 
	 	  	 	  	Page	 
			
	Section 1.	  	Capitalized Terms; Interpretive Provisions	  	 	3	 
			
	Section 2.	  	Duties of the Administrator	  	 	3	 
			
	Section 3.	  	Records	  	 	10	 
			
	Section 4.	  	Compensation	  	 	10	 
			
	Section 5.	  	Additional Information to be Furnished to the Issuer	  	 	10	 
			
	Section 6.	  	Independence of the Administrator	  	 	10	 
			
	Section 7.	  	No Joint Venture	  	 	10	 
			
	Section 8.	  	Other Activities of the Administrator	  	 	10	 
			
	Section 9.	  	Term of Agreement; Resignation and Removal of Administrator	  	 	10	 
			
	Section 10.	  	Action Upon Termination, Resignation or Removal	  	 	12	 
			
	Section 11.	  	Notices	  	 	12	 
			
	Section 12.	  	Amendments	  	 	13	 
			
	Section 13.	  	Successors and Assigns	  	 	13	 
			
	Section 14.	  	GOVERNING LAW	  	 	14	 
			
	Section 15.	  	WAIVER OF JURY TRIAL	  	 	14	 
			
	Section 16.	  	Submission to Jurisdiction	  	 	14	 
			
	Section 17.	  	Table of Contents and Headings	  	 	15	 
			
	Section 18.	  	Counterparts	  	 	15	 
			
	Section 19.	  	Severability	  	 	15	 
			
	Section 20.	  	Limitation of Liability of Owner Trustee	  	 	15	 
			
	Section 21.	  	Third-Party Beneficiary	  	 	15	 
			
	Section 22.	  	Nonpetition Covenant	  	 	15	 
			
	Section 23.	  	Liability of Administrator	  	 	16	 
			
	Section 24.	  	Relocation	  	 	16	 
			
	Section 25.	  	Patriot Act	  	 	16	 
	
	EXHIBITS	 
			
	Exhibit A –	  	Form of Power of Attorney	  	 	A-1	 

 ADMINISTRATION AGREEMENT 

THIS ADMINISTRATION AGREEMENT, dated as of February 1, 2017 (as amended, restated, supplemented or otherwise modified from time to time,
this “Agreement”), is among California Republic Auto Receivables Trust 2017-1, a Delaware statutory trust (the “Issuer”), Mechanics Bank, a California corporation authorized to transact a banking business (“Mechanics
Bank”), as administrator (the “Administrator”), Wilmington Trust, National Association, a national banking association with trust powers, as owner trustee (the “Owner Trustee”), and U.S. Bank National Association, a national
banking association, not in its individual capacity but solely as Indenture Trustee (the “Indenture Trustee”). 
 WHEREAS, the
Issuer was established as a separate statutory trust in accordance with the Delaware Statutory Trust Act, 12 Del. C. § 3806(1)(b), et seq. pursuant to a trust agreement that has been amended and restated as of February 1, 2017 (the
“Trust Agreement”), between California Republic Funding, LLC, a Delaware limited liability company (“Depositor”) and the Owner Trustee; 

WHEREAS, the Issuer is issuing certain notes (the “Notes”) pursuant to an indenture, dated as of February 1, 2017 (the
“Indenture”), between the Issuer and the Indenture Trustee; 
 WHEREAS, pursuant to a sale and servicing agreement, dated as of
February 1, 2017 (the “Sale and Servicing Agreement”), among the Issuer, the Depositor, Mechanics Bank and the Indenture Trustee, the Issuer is required to perform certain duties in connection with the Notes and the collateral pledged
as security therefor pursuant to the Indenture; 
 WHEREAS, the Issuer, the Indenture Trustee and the Owner Trustee desire that the
Administrator perform certain duties of the Issuer and the Owner Trustee under the Sale and Servicing Agreement and the Indenture and to provide such additional services consistent with the terms of this Agreement as the Issuer and the Owner Trustee
may from time to time request; and 
 WHEREAS, the Administrator has the capacity to provide the services required hereby and is willing to
perform such services for the Issuer and the Owner Trustee on the terms set forth herein. 
 NOW, THEREFORE, in consideration of the
premises and the mutual covenants herein contained, the parties agree as follows: 
 Section 1. Capitalized Terms; Interpretive
Provisions. Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed thereto in Appendix A to the Sale and Servicing Agreement, which Appendix is hereby incorporated into and made a part of this Agreement.
Appendix A also contains rules as to usage applicable to this Agreement. 
 Section 2. Duties of the Administrator. 

(a) Duties With Respect to the Issuer. The Administrator agrees to perform all its duties as Administrator and, except as specifically
excluded herein, agrees to perform all the duties of the Issuer and the Owner Trustee under the Issuer Basic Documents. In addition, the 

  

 
Administrator shall consult with the Owner Trustee regarding the duties of the Issuer or the Owner Trustee under the Issuer Basic Documents. The Administrator shall monitor the performance of the
Issuer and shall advise the Owner Trustee when action is necessary to comply with the respective duties of the Issuer and the Owner Trustee under the Issuer Basic Documents. The Administrator shall prepare for execution by the Issuer, or shall cause
the preparation by other appropriate persons of, all such documents, reports, notices, filings, instruments, certificates and opinions that it shall be the duty of the Issuer or the Owner Trustee to prepare, file or deliver pursuant to the Issuer
Basic Documents. 
 In addition, the Administrator shall take or cause the Issuer to take all action that is the duty of the Issuer to take
pursuant to the Sale and Servicing Agreement and the other Issuer Basic Documents, except (i) any such duties that constitute Non-Ministerial Matters (as such term is defined in Section 2(c)), (ii) duties that are expressly identified
to be performed by the Owner Trustee or another Person on behalf of the Issuer, (iii) duties constituting payment obligations of the Issuer, including duties under Article Five of the Sale and Servicing Agreement and (iv) duties under
Section 3.01 of the Indenture. 
 In furtherance of the foregoing, the Administrator shall take all appropriate action that the Issuer
or the Owner Trustee is required to take pursuant to the Indenture, including such of the foregoing as are required with respect to the following matters under the Indenture (parenthetical section references are to Sections of the Indenture unless
otherwise specified): 
 (i) the preparation of or obtaining of the documents and instruments required for authentication of
the Notes and delivery of the same to the Indenture Trustee (Section 2.02); 
 (ii) the duty to cause the Note Register to
be kept and to give the Indenture Trustee notice of any appointment of a new Note Registrar and the location, or change in location, of the Register (Section 2.04); 

(iii) the delivery to the Indenture Trustee of sufficient information about the parties and/or transactions so the Indenture
Trustee can determine whether it has tax related obligations under Applicable FATCA Law (Section 2.09(f)); 
 (iv) the duty
to cause an office to be maintained in St. Paul, Minnesota, for registration of transfer or exchange of Notes (Section 3.02); 

(v) the duty to cause newly appointed Paying Agents, if any, to deliver to the Indenture Trustee the instrument specified in
the Indenture regarding funds held in trust and directing any Paying Agent to pay to the Indenture Trustee all sums held in trust by such Paying Agent (Section 3.03); 

(vi) the direction to Paying Agents, if any, other than the Indenture Trustee, to deposit monies with the Indenture Trustee
(Sections 3.03 and 4.03); 
 (vii) the obtaining and preservation of the Issuer’s qualifications to do business in each
jurisdiction where such qualification is or shall be necessary to protect the validity and enforceability of the Indenture, the Notes and the Collateral (Section 3.04); 

  
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 (viii) the preparation of all supplements and amendments to the Indenture and all
UCC financing statements, continuation statements, instruments of further assurance and other instruments and the taking of such other action as is necessary or advisable to protect the Collateral as set forth in the Indenture and to obtain and
maintain, for the benefit of the Indenture Trustee on behalf of the Noteholders, a first Lien on, and a first priority, perfected security interest in, the Collateral (Section 3.05); 

(ix) the delivery of the Opinion of Counsel on the Closing Date and the annual delivery of Opinions of Counsel as to the
Collateral, and the annual delivery of the Officer’s Certificate and certain other statements as to compliance with the Indenture (Sections 3.06 and 3.09); 

(x) the delivery of an Officer’s Certificate of the Issuer to the Indenture Trustee concerning the identity of each
Person with whom the Issuer has contracted to perform its duties under the Indenture (Section 3.07(b)); 
 (xi) the delivery
of written notice to the Indenture Trustee, the Rating Agencies and Noteholders of a Servicer Termination Event under the Sale and Servicing Agreement and, if such Servicer Termination Event arises from the failure of the Servicer to perform any of
its duties under the Sale and Servicing Agreement, the taking of all reasonable steps available to remedy such failure (Section 3.07(d)); 

(xii) the delivery of notice to the Indenture Trustee and the Noteholders of the termination of the Servicer’s rights and
powers pursuant to the Sale and Servicing Agreement and, as soon as a Successor Servicer is appointed, the delivery of written notice to the Indenture Trustee and the Noteholders of such appointment (Section 3.07(e)); 

(xiii) the preparation and obtaining of documents and instruments required for the conveyance or transfer by the Issuer of its
properties or assets (Section 3.10(b)); 
 (xiv) the duty to cause the Servicer to comply with the Sale and Servicing
Agreement (Section 3.12); 
 (xv) the delivery of written notice to the Indenture Trustee and the Rating Agencies of each
Event of Default, each default on the part of the Seller, the Servicer or the Depositor under the Sale and Servicing Agreement and each default on the part of the Seller or the Purchaser under the Receivables Purchase Agreement (Section 3.17); 

(xvi) the preparation and maintenance of documents and other written information required for certain United Stated federal
income tax purposes (Section 3.21); 
 (xvii) the monitoring of the Issuer’s obligations as to the satisfaction and
discharge of the Indenture and the preparation of an Officer’s Certificate and the obtaining of an Opinion of Counsel relating thereto (Section 4.01); 

  
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 (xviii) the preparation, obtaining or filing of the instruments, opinions and
certificates and other documents required for the release of Collateral (Section 4.04); 
 (xix) the compliance with
Section 5.04 of the Indenture with respect to the sale of the Collateral in a commercially reasonable manner if an Event of Default shall have occurred and be continuing (Section 5.04(a)); 

(xx) the requesting of information to facilitate compliance by the Issuer with Rule 15Ga-1 under the Exchange Act (Section
6.05(b)); 
 (xxi) the delivery to the Indenture Trustee of the information necessary to deliver to each Noteholder such
information as may be reasonably required to enable such Holder to prepare its United States federal and State income tax returns (Section 6.06(b)); 

(xxii) the preparation and delivery of notice to Noteholders of the resignation or removal of the Indenture Trustee and the
appointment of a successor Indenture Trustee (Section 6.08); 
 (xxiii) the preparation of any written instruments required
to confirm more fully the authority of any co-trustee or separate trustee and any written instruments necessary in connection with the resignation or removal of any co-trustee or separate trustee (Sections
6.08 and 6.10); 
 (xxiv) the furnishing to the Indenture Trustee with the names and addresses of Noteholders during any
period when the Indenture Trustee is not the Note Registrar (Section 7.01); 
 (xxv) the preparation and, after execution by
the Issuer, the filing with the Commission and the Indenture Trustee of documents required to be filed on a periodic basis with, and summaries thereof as may be required by rules and regulations prescribed by, the Commission and the transmission of
such summaries, as necessary, to the Noteholders (Sections 7.06 and 7.07); 
 (xxvi) the opening of one or more accounts in
the Indenture Trustee’s name and the taking of all actions necessary with respect to investment and reinvestment of funds in the Trust Accounts (Section 8.02 of the Indenture and Section 5.01 of the Sale and Servicing Agreement); 

(xxvii) the preparation of an Issuer Request and Officer’s Certificate and the obtaining of an Opinion of Counsel and
Independent Certificates, if necessary, for the release of the Collateral (Sections 8.04 and 8.05); 
 (xxviii) the
preparation of Issuer Orders and the obtaining of Opinions of Counsel with respect to the execution of supplemental indentures and the mailing to the Noteholders and the Rating Agencies of required notices with respect to such supplemental
indentures (Sections 9.01, 9.02 and 9.03); 

  
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 (xxix) the execution and delivery of new Notes conforming to any supplemental
indenture (Section 9.05); 
 (xxx) providing, or causing the Indenture Trustee to provide, notification to Noteholders of
redemption of the Notes (Section 10.02); 
 (xxxi) without duplication, the preparation and delivery of all Officer’s
Certificates, Independent Certificates and Opinions of Counsel with respect to any requests by the Issuer to the Indenture Trustee to take any action under the Indenture (Section 11.01(a)); 

(xxxii) the preparation and delivery of Officer’s Certificates and the obtaining of Independent Certificates, if
necessary, for the release of property from the lien of the Indenture to the extent permitted thereunder (Section 11.01(b)); 

(xxxiii) the preparation and delivery of written notice to the Rating Agencies, upon the failure of the Issuer, the Depositor
or the Indenture Trustee to give such notification, of the information required pursuant to Section 11.04 of the Indenture (Section 11.04); 

(xxxiv) the preparation and delivery to Noteholders and the Indenture Trustee of any agreements with respect to alternate
payment and notices in accordance with the notice provisions of such agreements (Section 11.06); 
 (xxxv) the recording of
the Indenture, if applicable (Section 11.15); and 
 (xxxvi) performance by the Issuer of the covenants and agreements set
forth in Article Twelve of the Indenture applicable to the Issuer and to otherwise comply with the terms of Article Twelve of the Indenture. 

(b) Additional Duties. 

(i) In addition to the duties set forth in Section 2(a), the Administrator shall perform such calculations and shall
(A) prepare or shall cause the preparation by other appropriate Persons of, and (B) execute on behalf of the Issuer or the Owner Trustee, all such documents, notices, reports, filings, instruments, certificates and opinions that the Issuer
or the Owner Trustee are required to prepare, file or deliver pursuant to the Issuer Basic Documents or are otherwise authorized to prepare, file or deliver pursuant to the Basic Documents, and at the request of the Owner Trustee shall take all
appropriate action that the Issuer or the Owner Trustee are required to take pursuant to the Issuer Basic Documents. In furtherance thereof, the Owner Trustee shall, on behalf of itself and of the Issuer, execute and deliver to the Administrator and
to each successor Administrator appointed pursuant to the terms hereof, one or more powers of attorney substantially in the form of Exhibit A hereto, appointing the Administrator the attorney-in-fact of the Owner Trustee and the Issuer for the
purpose of executing on behalf of the Owner Trustee and the Issuer all such documents, reports, filings, instruments, certificates and opinions referenced in this Agreement. Subject to Section 6, and in accordance with the direction of the
Owner Trustee, the Administrator shall administer, perform or supervise the performance of such other activities in connection with the 

  
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Collateral (including the Basic Documents) as are not covered by any of the foregoing provisions and as are expressly requested by the Owner Trustee and are reasonably within the capability of
the Administrator. 
 (ii) The Administrator shall be responsible for promptly notifying the Owner Trustee and the
Certificate Paying Agent in the event that any withholding tax is imposed on the Issuer’s payments (or allocations of income) to a Certificateholder as contemplated in Section 5.02(d) of the Trust Agreement. Any such notice shall specify
the amount of any withholding tax required to be withheld by the Owner Trustee and the Paying Agent pursuant to such provision. 

(iii) The Administrator shall be responsible for performance of the duties of the Owner Trustee set forth in Section 5.04
of the Trust Agreement with respect to, among other things, accounting and reports to Certificateholders. 
 (iv) To the
extent that any tax withholding is required, the Administrator shall deliver to the Owner Trustee, on or before the first Payment Date, an Officer’s Certificate in form and substance satisfactory to the Owner Trustee, as to whether any tax
withholding is then required and, if required, the procedures to be followed with respect thereto to comply with the requirements of the Code. The Administrator shall update such Officer’s Certificate if any additional tax withholding is
subsequently required or any previously required tax withholding shall no longer be required. 
 (v) The Administrator shall
perform the duties of the Administrator required to be performed by it under the Trust Agreement. 
 (vi) In carrying out
the foregoing duties or any of its other obligations under this Agreement, the Administrator may enter into transactions or otherwise deal with any of its Affiliates; provided, however, that the terms of any such transactions or dealings shall be in
accordance with any directions received from the Issuer and shall be, in the opinion of the Administrator, no less favorable to the Issuer than would be available from unaffiliated parties. 

(vii) If requested by the Depositor for purposes of compliance with its reporting obligations under the Exchange Act, the
Administrator will provide to the Depositor and the Servicer on or before March 31 of each year beginning March 31, 2017, the servicing criteria assessment required to be filed in respect of the Issuer under the Exchange Act under
Item 1122 of Regulation AB if periodic reports under Section 15(d) of the Exchange Act, or any successor provision thereto, are required to be filed in respect of the Issuer and shall cause a firm of independent certified public
accountants, who may also render other services to the Administrator, the Servicer, the Seller or the Depositor, to deliver to the Depositor and the Servicer the attestation report that would be required to be filed in respect of the Issuer under
the Exchange Act if periodic reports under Section 15(d) of the Exchange Act, or any successor provision thereto, were required to be filed in respect of the Issuer. Such attestation shall be in accordance with
Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and the Exchange Act, including, in the event that an overall opinion cannot be expressed, such

  
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registered public accounting firm shall state in such report why it was unable to express such an opinion. The Administrator and the Depositor acknowledge and agree that the purpose of this
Section is to facilitate compliance by the Depositor with the provisions of Regulation AB and the related rules and regulations of the Commission. The Depositor shall not exercise its right to request delivery of information or other performance
under these provisions other than in good faith, or for purposes other than compliance with the Securities Act, the Exchange Act and the rules and regulations of the Commission under the Securities Act and the Exchange Act. The Administrator
acknowledges that interpretations of the requirements of Regulation AB may change over time, whether due to interpretive guidance provided by the Commission or its staff, consensus among participants in the asset-backed securities markets, advice of
counsel or otherwise, and the Administrator agrees to comply with all reasonable requests made by the Depositor in good faith for delivery of information and shall deliver to the Depositor all information and certifications reasonably required by
the Depositor to comply with its Exchange Act reporting obligations, including with respect to any of its predecessors or successors. The obligations of the Administrator to provide such information shall survive the removal or termination of the
Administrator as Administrator hereunder. 
 (c) Non-Ministerial Matters. 

(i) With respect to matters that in the reasonable judgment of the Administrator are Non-Ministerial (as defined below), the
Administrator shall not be under any obligation to take any action; and in any event shall not take any action unless the Administrator shall have received instructions from the Owner Trustee or from the Persons entitled to vote with respect thereto
under the Trust Agreement. For the purpose of the preceding sentence, matters that are “Non-Ministerial” shall include: 

(A) the initiation of any action, claim or lawsuit by the Issuer and the compromise of any action, claim or lawsuit brought
by or against the Issuer; 
 (B) the appointment of successor Note Registrars, successor Paying Agents and successor
Indenture Trustees pursuant to the Indenture or the appointment of successor Administrators or Successor Servicers, or the consent to the assignment by the Note Registrar, Paying Agent or Indenture Trustee of its obligations under the Indenture;

 (C) the removal of the Owner Trustee; and 

(D) the removal of the Indenture Trustee and the appointment of any successor Indenture Trustee; 

provided, however, that the Administrator may, with the consent of the Owner Trustee, the Indenture Trustee or the Persons entitled to vote
with respect thereto, under the Trust Agreement, take any action with respect to Non-Ministerial matters that the Administrator, in its good faith judgment, deems to be the best interests of the Issuer. The Administrator shall be entitled to be
reimbursed by the Issuer for any expenses or liabilities incurred without willful misconduct, bad faith or negligence in connection with Non-Ministerial Matters. 

  
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 (ii) Notwithstanding anything to the contrary in this Agreement, the
Administrator shall not be obligated to, and shall not, take any action that the Issuer or the Owner Trustee (with the consent of Noteholders representing not less than 51% of the Note Balance of the Controlling Class) directs the Administrator not
to take on its behalf. 
 Section 3. Records. The Administrator shall maintain appropriate books of account and records relating to
services performed hereunder, which books of account and records shall be accessible for inspection by the Issuer, the Depositor and the Noteholders at any time during normal business hours upon reasonable prior notice. 

Section 4. Compensation. As compensation for the performance of the Administrator’s obligations under this Agreement and as
reimbursement for its expenses related thereto, the Administrator shall be entitled to a fee equal to $5,000 per annum (the “Administration Fee”), which fee shall be paid by the Servicer out of the Servicing Fee. 

Section 5. Additional Information to be Furnished to the Issuer. The Administrator shall furnish to the Issuer from time to time such
additional information regarding the Collateral as the Issuer may reasonably request. 
 Section 6. Independence of the
Administrator. For all purposes of this Agreement, the Administrator shall be an independent contractor and shall not be subject to the supervision of the Issuer or either Trustee with respect to the manner in which it accomplishes the
performance of its obligations hereunder. Unless expressly set forth herein or otherwise authorized by the Issuer or the related Trustee, the Administrator shall have no authority to act for or represent the Issuer or either Trustee in any way and
shall not otherwise be deemed an agent of the Issuer or either Trustee. 
 Section 7. No Joint Venture. Nothing contained in this
Agreement shall (i) constitute the Administrator and any of the Issuer, either Trustee or both Trustees as members of any partnership, joint venture, association, syndicate, unincorporated business or other separate entity, (ii) be
construed to impose any liability as such on any of them or (iii) be deemed to confer on any of them any express, implied or apparent authority to incur any obligation or liability on behalf of the others. 

Section 8. Other Activities of the Administrator. Nothing herein shall prevent the Administrator or its Affiliates from engaging in
other businesses or, in its sole discretion, from acting in a similar capacity as an Administrator for any other Person even though such Person may engage in business activities similar to those of the Issuer or either Trustee. 

Section 9. Term of Agreement; Resignation and Removal of Administrator. 

(a) This Agreement shall continue in force until the dissolution of the Issuer, upon which event this Agreement shall automatically terminate.

  
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 (b) The Administrator shall not be permitted to resign from the obligations and duties hereby
imposed on it, except subject to Section 9(e) upon the determination that such obligations and duties hereunder are no longer permissible under Applicable Law or are in material conflict, by reason of applicable law, with any other activities
carried on by it. Any such determination permitting the resignation of the Administrator shall be evidenced by an Opinion of Counsel satisfactory to the Owner Trustee to such effect delivered to the Issuer. 

(c) Subject to Section 9(e), (i) the Administrator may resign its duties hereunder by providing the Issuer with at least 60
days’ prior written notice and (ii) the Issuer may remove the Administrator without cause by providing the Administrator with at least 60 days’ prior written notice. 

(d) Subject to Section 9(e), at the sole option of the Issuer, the Administrator may be removed immediately upon written notice of
termination from the Issuer if any of the following events shall occur: 
 (i) the Administrator shall default in the
performance of any of its duties under this Agreement and, after notice of such default, shall not cure such default within ten days (or, if such default cannot be cured in such time, shall not give within ten days such assurance of cure as shall be
reasonably satisfactory to the Issuer); 
 (ii) a court having jurisdiction in the premises shall enter a decree or order
for relief, and such decree or order shall not have been vacated within 60 days, in respect of the Administrator in any involuntary case under any Insolvency Laws or appoint a receiver, liquidator, assignee, custodian, trustee, sequestrator or
similar official for the Administrator or any substantial part of its property or ordering the winding up or liquidation of its affairs or FDIC is appointed as conservator or receiver; or 

(iii) the commencement by the Administrator of a voluntary case under any Insolvency Law, the consent by the Administrator to
the appointment of a receiver, liquidator, assignee, trustee, custodian, sequestrator or similar official for the Administrator or any substantial part of its property or the making by the Administrator of an assignment for the benefit of creditors,
the failure by the Administrator generally to pay its debts as they become due or the taking of corporate action by the Administrator in furtherance of any of the foregoing. 

The Administrator agrees that if any of the events specified in clauses (i), (ii) or (iii) above shall occur, it shall give written notice thereof
to the Issuer, and the Trustees within seven days after the occurrence of such event. 
 (e) No resignation or removal of the Administrator
pursuant to this Section shall be effective until (i) a successor Administrator shall have been appointed by the Issuer (with the consent of the Owner Trustee, which consent shall not be unreasonably withheld), (ii) such successor
Administrator shall have agreed in writing to be bound by the terms of this Agreement in the same manner as the Administrator is bound hereunder and (iii) the Rating Agency Condition has been satisfied with respect to such appointment. 

  
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 (f) The successor Administrator shall execute, acknowledge and deliver a written acceptance of
its appointment hereunder to the resigning Administrator and to the Issuer. Thereupon, subject to the provisions of Section 9(e), the resignation or removal of the resigning Administrator shall become effective, and the successor Administrator
shall have all the rights, powers and duties of the Administrator under this Agreement. The successor Administrator shall mail a notice of its succession to the Noteholders. The resigning Administrator shall promptly transfer or cause to be
transferred all property and any related agreements, documents and statements held by it as Administrator to the successor Administrator and the resigning Administrator shall execute and deliver such instruments and do other things as may reasonably
be required for fully and certainly vesting in the successor Administrator all rights, power, duties and obligations hereunder. 
 (g) In no
event shall a resigning Administrator be liable for the acts or omissions of any successor Administrator hereunder. 
 (h) In the exercise
or administration of its duties hereunder or under any power of attorney, the Administrator may act directly or through its agents or attorneys pursuant to agreements entered into with any of them, if such agents or attorneys shall have been
selected by the Administrator with due care, provided that any such delegation shall not release the Administrator from its obligations hereunder. 

Section 10. Action Upon Termination, Resignation or Removal. Promptly upon the effective date of termination of this Agreement pursuant
to Section 9(a) or the resignation or removal of the Administrator pursuant to Sections 9(b), (c) or (d), respectively, the Administrator shall be entitled to be paid all fees and reimbursable expenses accruing to it to the date of such
termination, resignation or removal. The Administrator shall forthwith upon such termination pursuant to Section 9(a) deliver to the Issuer all property and documents of or relating to the Notes or the Collateral then in the custody of the
Administrator. In the event of the resignation or removal of the Administrator pursuant to Sections 9(b), (c) or (d), respectively, the Administrator shall cooperate with the Issuer and take all reasonable steps requested to assist the Issuer
in making an orderly transfer of the duties of the Administrator. 
 Section 11. Notices. Any notice, report or other communication
given hereunder shall be in writing and addressed as follows: 
 (a) If to the Issuer or Owner Trustee, to: 

California Republic Auto Receivables Trust 2017-1 

c/o Wilmington Trust, National Association 

Rodney Square North 
 1100 North
Market Street 
 Wilmington, Delaware 19890-0001 

Attention: Corporate Trust Administration 

(b) If to the Administrator, to: 

Mechanics Bank 
 1111 Civic
Drive, Suite 390 
 Walnut Creek, California 94596 

Attention: Nathan Duda 

  
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 (a) If to the Indenture Trustee, to: 

U.S. Bank National Association 

190 South LaSalle Street 
 7th
Floor Mail Code MK-IL-SK7R 
 Chicago, Illinois 60603 

Attention: Structured Finance – California Republic Auto Receivables Trust 2017-1 

or to such other address as any such party shall have provided to the other parties in writing. Any notice required to be in writing hereunder shall be deemed
given if such notice is mailed by certified mail, postage prepaid, or hand delivered to the address of such party as provided above. 

Section 12. Amendments. 

(a) This Agreement may be amended from time to time by a written amendment duly executed and delivered by the parties hereto, the written
consent of the Owner Trustee but without the consent of any Securityholders, for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of the
Securityholders; provided, that no such amendment shall materially and adversely affect the interests of any Securityholder. This Agreement may also be amended by the parties hereto with the written consent of Noteholders evidencing at least 51% of
the Note Balance of the Controlling Class for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of the Securityholders; provided,
however, that no such amendment may reduce the percentage of the Note Balance, the consent of the Holders of which is required for this amendment, in each case without the consent of the Holders of all Outstanding Notes adversely affected by the
amendment. 
 (b) An amendment to this Agreement shall be deemed not to materially adversely affect the interests of any Securityholder if
(i) the Person requesting such amendment obtains and delivers to the Trustees an Opinion of Counsel or an Officer’s Certificate of the Issuer to that effect or (ii) the Rating Agency Condition is satisfied with respect to such
amendment. 
 (c) Prior to the execution of any amendment to this Agreement, the Administrator shall provide each Rating Agency with written
notice of the substance of such amendment. 
 Section 13. Successors and Assigns. This Agreement may not be assigned by the
Administrator unless such assignment is previously consented to in writing by the Issuer and the Owner Trustee, subject to satisfaction of the Rating Agency Condition in respect thereof. An assignment with such consent and satisfaction, if accepted
by the assignee, shall bind the assignee hereunder in the same manner as the Administrator is bound hereunder. Notwithstanding the foregoing, this Agreement may be assigned by the Administrator without the consent of the Issuer or either Trustee;
provided, that such assignment is being made (a) to a successor administrator located outside the State of California if the tax advisers to the Issuer 

  
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have advised the Administrator in writing that assignment of this Agreement to such successor is necessary in order to avoid the imposition by the State of California of any tax on the gross
income of the Issuer or on dealer intangibles deemed to be held by the Issuer as a result of the Issuer being considered to be located in California or (b) to a corporation or other organization that is a successor (by merger, consolidation or
purchase of assets) to the Administrator; provided, further, that any such successor organization described in clause (a) or (b) executes and delivers to the Issuer and the Trustees an agreement in which such corporation or other
organization agrees to be bound hereunder by the terms of said assignment in the same manner as the Administrator is bound hereunder. Subject to the foregoing, this Agreement shall bind any successors or assigns of the parties hereto. 

Each of the parties hereto hereby acknowledges, consents and agrees to any transfer (including assignment, mortgage, pledge or grant of a
security interest) by the Issuer to the Indenture Trustee and the Noteholders in accordance with the terms of the Indenture of all of the Issuer’s rights hereunder. 

Section 14. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO ANY OTHERWISE APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
 Section 15. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS ADMINISTRATION AGREEMENT OR THE TRANSACTION CONTEMPLATED HEREBY. 

Section 16. Submission to Jurisdiction. Each of the parties hereto hereby irrevocably and unconditionally: 

(a) submits for itself and its property in any legal action relating to this Indenture or any documents executed and delivered
in connection herewith, or for recognition and enforcement of any judgment in respect thereof, to the nonexclusive general jurisdiction of the courts of the State of New York located in the Borough of Manhattan, the courts of the United States for
the Southern District of New York and appellate courts from any thereof; 
 (b) consents that any such action may be brought
in such courts and waives any objection that it may now or hereafter have to the venue of such action in any such court or that such action was brought in an inconvenient court and agrees not to plead or claim the same; and 

  
 14 

 (c) waives, to the fullest extent permitted by Applicable Law, any and all right
to trial by jury in any legal proceeding arising out of or relating to this Indenture or the transactions contemplated hereby. 
 Section
17. Table of Contents and Headings. The Table of Contents and the various headings in this Agreement are included for convenience only and shall not affect the meaning or interpretation of any provision of this Agreement. 

Section 18. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of
which shall together constitute one and the same instrument. 
 Section 19. Severability. If any one or more of the covenants,
agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid, illegal or unenforceable, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements,
provisions and terms of this Agreement and shall in no way affect the validity or enforceability of the other covenants, agreements, provisions and terms of this Agreement. 

Section 20. Limitation of Liability of Owner Trustee. Notwithstanding anything contained herein to the contrary, this instrument has
been executed by Wilmington Trust not in its individual capacity but solely in its capacity as Owner Trustee of the Issuer and in no event shall Wilmington Trust in its individual capacity have any liability for the representations, warranties,
covenants, agreements or other obligations of the Issuer hereunder, as to all of which recourse shall be had solely to the assets of the Issuer. For all purposes of this Agreement, in the performance of any duties or obligations of the Issuer
hereunder, the Issuer shall be subject to, and entitled to the benefits of, the laws and provisions of Articles Six, Seven and Eight of the Trust Agreement. No recourse under any obligation, covenant or agreement of the Issuer contained in this
Agreement shall be had against any agent, independent contractor, or other Person acting on behalf of the Issuer (including the Administrator and the Owner Trustee) as such by the enforcement of any assessment or by any legal or equitable
proceeding, by virtue of any statute or otherwise: it being expressly agreed and understood that this agreement is solely an obligation of the Issuer as a Delaware statutory trust, and that no personal liability whatever shall attach to or be
incurred by any agent, independent contractor, or other Person acting on behalf of the Issuer (including the Administrator and Owner Trustee), as such, under or by reason of any obligations, covenants or agreements of the Issuer contained in this
Agreement, or implied therefrom, and that any and all personal liability for breaches by the Issuer of any of its obligations, covenants or agreements, either at common law or at equity, or by statute or construction, of every such agent,
independent contractor, or Person is hereby expressly waived as a condition of and in consideration for the execution of this Agreement. 

Section 21. Third-Party Beneficiary. The Indenture Trustee on behalf of the Noteholders is an express third party beneficiary to this
Agreement, is entitled to the rights and benefits hereunder and may enforce the provisions hereof as if it were a party hereto. 
 Section
22. Nonpetition Covenant. Each of the parties hereto covenants that it will not at any time institute against, or join any Person in instituting against, the Issuer or the Depositor 

  
 15 

 
any bankruptcy, reorganization, arrangement, insolvency or liquidation Proceedings or other Proceedings under any Insolvency Law in connection with any obligations relating to the Basic
Documents, and agrees that it will not cooperate with or encourage others to file a bankruptcy petition against the Issuer or the Depositor. 

Section 23. Liability of Administrator. Neither the Administrator nor any of its directors, officers, employees or agents shall be
under any liability to the Issuer, the Depositor, either Trustee or the Noteholders, except as provided in this Agreement, for any action taken or for refraining from the taking of any action pursuant to this Agreement; provided, however, that this
provision shall not protect the Administrator against any liability by reason of willful misfeasance, bad faith or negligence in the performance of its duties. The Administrator and any director, officer, employee or agent of the Administrator may
conclusively reasonably rely in good faith on the advice of counsel or on any document of any kind prima facie properly executed and submitted by any Person respecting any matters arising under this Agreement or any other Basic Document. 

Section 24. Relocation. If the Administrator’s acting as administrator of the Issuer would cause a tax to be imposed by the State
of California on the gross income of the Issuer or on dealer intangibles deemed to be owned by the Issuer, and if the Administrator does not assign this Agreement to a successor pursuant to Section 12, the Administrator shall, if in its
reasonable discretion it believes it necessary, relocate its trust administrative functions such that the Issuer shall not, as evidenced by an opinion of a nationally recognized California tax counsel, reasonably satisfactory to the Owner Trustee,
be subject to said California tax on its gross income or on any dealer intangibles. 
 Section 25. Patriot Act. The parties hereto
acknowledge that in accordance with Section 326 of the Patriot Act, U.S. Bank and Mechanics Bank, like all financial institutions and in order to help fight the funding of terrorism and money laundering, are required to obtain, verify, and
record information that identifies each person or legal entity that establishes a relationship or opens an account. The parties to this Agreement agree that they will provide U.S. Bank and Mechanics Bank, as the case may be, with such information as
either may request in order for U.S. Bank and Mechanics Bank, as the case may be, to satisfy the requirements of the Patriot Act. 

  
 16 

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

					
		 	CALIFORNIA REPUBLIC AUTO
		 	RECEIVABLES TRUST 2017-1
			
		 	By:	 	WILMINGTON TRUST, NATIONAL ASSOCIATION,
		 		 	not in its individual capacity but solely as Owner Trustee
			
		 	By:	 	 /s/ Anita Roselli Woolery

		 	Name:	 	Anita Roselli Woolery
		 	Title:	 	Vice President

  

  
 2017-1 Administration
Agreement 

					
		 	 MECHANICS BANK,
 as
Administrator

			
		 	By:	 	 /s/ Nathan Duda

		 	Name:	 	Nathan Duda
		 	Title:	 	EVP, CFO

  

  
 2017-1 Administration
Agreement 

					
		 	 U.S BANK NATIONAL ASSOCIATION,

not in its individual capacity
 but solely as Indenture
Trustee

			
		 	By:	 	 /s/ Melissa A. Rosal

		 	Name:	 	Melissa A. Rosal
		 	Title:	 	Vice President

  

  
 2017-1 Administration
Agreement 

					
		 	 WILMINGTON TRUST, NATIONAL ASSOCIATION,

as Owner Trustee

			
		 	By:	 	 /s/ Anita Roselli Woolery

		 	Name:	 	Anita Roselli Woolery
		 	Title:	 	Vice President

  

  
 2017-1 Administration
Agreement 

 EXHIBIT A 

POWER OF ATTORNEY 
  

							
	STATE OF DELAWARE	  	 	}	 	  	
		  	 	}	 	  	
	COUNTY OF NEW CASTLE	  	 	}	 	  	

 KNOW ALL MEN BY THESE PRESENTS, that Wilmington Trust, National Association, a national banking association,
not in its individual capacity but solely as owner trustee (the “Owner Trustee”) for California Republic Auto Receivables Trust 2017-1 (the “Issuer”), does hereby make, constitute and appoint Mechanics Bank, as administrator (the
“Administrator”) under the Administration Agreement, dated as of February 1, 2017 (as amended, supplemented or otherwise modified from time to time, the “Administration Agreement”), among the Issuer, the Owner Trustee, the
Administrator and U.S. Bank National Association, as Indenture Trustee, and its agents and attorneys, as Attorneys-in-Fact to execute on behalf of the Owner Trustee or the Issuer all such documents, reports, filings, instruments, certificates and
opinions as it should be the duty of the Owner Trustee or the Issuer to prepare, file or deliver pursuant to the Basic Documents, including, without limitation, to appear for and represent the Owner Trustee and the Issuer in connection with the
preparation, filing and audit of federal, state and local tax returns pertaining to the Issuer, and with full power to perform any and all acts associated with such returns and audits that the Owner Trustee could perform, including without
limitation, the right to distribute and receive confidential information, defend and assert positions in response to audits, initiate and defend litigation, and to execute waivers of restrictions on assessments of deficiencies, consents to the
extension of any statutory or regulatory time limit, and settlements. 
 All powers of attorney for this purpose heretofore filed or
executed by the Owner Trustee are hereby revoked. 
 Capitalized terms that are used and not otherwise defined herein shall have the
meanings ascribed thereto in the Administration Agreement. 
 EXECUTED this        day of February,
2017. 
  

					
		 	 WILMINGTON TRUST, NATIONAL ASSOCIATION,

as Owner Trustee

		
		 	By:
                                         
                                   
		 	Name:	 	
		 	Title:	 	

  
 A-1EX-10.3

 Exhibit 10.3 

EXECUTION COPY 
  

 
  

MECHANICS BANK, 
 as Seller 

and 
 CALIFORNIA REPUBLIC FUNDING,
LLC, 
 as Purchaser 
  

 
 RECEIVABLES
PURCHASE 
 AGREEMENT 
 Dated as
of February 1, 2017 
  
  

 
  

 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	Page	 
			
		 	ARTICLE ONE	  			
			
		 	DEFINITIONS	  			
		
	 Section 1.01. Capitalized Terms; Rules of Usage
	  	 	1	 
			
		 	ARTICLE TWO	  			
			
		 	PURCHASE AND SALE OF RECEIVABLES	  			
		
	 Section 2.01. Purchase and Sale of Receivables
	  	 	2	 
	 Section 2.02. Receivables Purchase Price
	  	 	2	 
	 Section 2.03. Costs and Expenses
	  	 	3	 
			
		 	ARTICLE THREE	  			
			
		 	REPRESENTATIONS AND WARRANTIES	  			
		
	 Section 3.01. Representations and Warranties of the Purchaser
	  	 	4	 
	 Section 3.02. Representations and Warranties of the Seller
	  	 	5	 
	 Section 3.03. Representations and Warranties as to the Receivables
	  	 	7	 
	 Section 3.04. Seller’s Repurchase of Receivables for Breach of
Representations
	  	 	12	 
	 Section 3.05. Representations and Warranties as to Security Interests
	  	 	13	 
			
		 	ARTICLE FOUR	  			
			
		 	SELLER’S COMPLIANCE WITH THE FDIC RULE	  			
		
	 Section 4.01. Purpose
	  	 	15	 
	 Section 4.02. Requirements of FDIC Rule
	  	 	15	 
	 Section 4.03. Effect of Section 941 Rules
	  	 	17	 
	 Section 4.04. Actions Upon Repudiation
	  	 	18	 
	 Section 4.05. Notice
	  	 	18	 
	 Section 4.06. Reservation of Rights
	  	 	18	 
			
		 	ARTICLE FIVE	  			
			
		 	COVENANTS OF SELLER	  			
		
	 Section 5.01. Protection of Title to Conveyed Assets
	  	 	19	 
	 Section 5.02. Other Liens or Interests
	  	 	20	 
	 Section 5.03. Indemnification
	  	 	21	 

  
 i 

			
	 	 	 Page

		
	ARTICLE SIX	 	
		
	MISCELLANEOUS PROVISIONS	 	
		
	Section 6.01. Obligations of Seller	 	22
	Section 6.02. Seller’s Assignment of Receivables	 	22
	Section 6.03. Subsequent Transfer to the Issuer and Indenture Trustee	 	22
	Section 6.04. Amendment	 	22
	Section 6.05. Waivers	 	23
	Section 6.06. Notices	 	23
	Section 6.07. Merger and Integration	 	23
	Section 6.08. Severability	 	23
	Section 6.09. GOVERNING LAW	 	23
	Section 6.10. Counterparts	 	24
	Section 6.11. Third-Party Beneficiaries	 	24
	Section 6.12. Nonpetition Covenant	 	24

  
 ii 

 RECEIVABLES PURCHASE AGREEMENT 

This RECEIVABLES PURCHASE AGREEMENT (as amended, restated, supplemented or otherwise modified from time to time, this “Agreement”)
is made as of February 1, 2017 between MECHANICS BANK, a California corporation (the “Seller”), and CALIFORNIA REPUBLIC FUNDING, LLC, a Delaware limited liability company (the “Purchaser”). 

WHEREAS, in the regular course of its business, the Seller purchases from motor vehicle dealers motor vehicle retail installment sale
contracts and motor vehicle loans secured by automobiles, sport utility vehicles, light duty trucks or similar motor vehicles; 
 WHEREAS,
the Purchaser desires to purchase from the Seller certain such motor vehicle retail installment sale contracts and motor vehicle loans (the “Receivables”); 

WHEREAS, the Seller is willing to sell the Receivables to the Purchaser; 

WHEREAS, the Seller is selling the Receivables to the Purchaser, the Purchaser is buying the Receivables for the purpose of selling them to
California Republic Auto Receivables Trust 2017-1, which will in turn issue notes and certificates backed by the cash flow from those Receivables in a transaction contemplated by the parties to this Agreement and the other Basic Documents (as
defined below) to be a “securitization” as that term is defined in 12 CFR §360.6 (the “FDIC Rule”); and 

WHEREAS, the parties hereto wish to set forth the terms pursuant to which the Receivables are to be sold by the Seller to the Purchaser. 

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

ARTICLE ONE 
 DEFINITIONS 

Section 1.01. Capitalized Terms; Rules of Usage. Capitalized terms used herein that are not otherwise defined shall have the meanings
ascribed thereto in Appendix A of the Sale and Servicing Agreement, dated as of February 1, 2017, among California Republic Auto Receivables Trust 2017-1, California Republic Funding, LLC, Mechanics Bank and U.S. Bank National Association,
which Appendix is hereby incorporated into and made a part of this Agreement. Appendix A also contains rules as to usage applicable to this Agreement. 

  
 1 

 ARTICLE TWO 

PURCHASE AND SALE OF RECEIVABLES 

Section 2.01. Purchase and Sale of Receivables. Effective as of the Closing Date and immediately prior to the transactions pursuant to
the Indenture, the Sale and Servicing Agreement and the Trust Agreement, the Seller does hereby sell, transfer, assign, set over and otherwise convey to the Purchaser, without recourse (subject to the obligations herein), all of its right, title and
interest in and to the Conveyed Assets. 
 The sale, transfer, assignment, setting over and conveyance made hereunder shall not constitute
and is not intended to result in an assumption by the Purchaser of any obligation of the Seller to the Obligors, the Dealers or any other Person in connection with the Receivables and the other assets and properties conveyed hereunder or any
agreement, document or instrument related thereto. 
 It is the intention of the parties hereto that, other than for federal, State and
local income, single business or franchise tax purposes, the transfer and assignment of the Conveyed Assets on the Closing Date constitutes an absolute sale (and not a pledge to secure debt or other obligations of the Seller) of the Conveyed Assets
such that (i) the Conveyed Assets shall not be included in the bankruptcy estate of the Seller pursuant to 11 U.S.C. § 541, (ii) the FDIC shall not, by exercise of its authority to disaffirm or repudiate contracts under
Section 13(e) of the Federal Deposit Insurance Act, reclaim, recover or recharacterize as property of the Seller any Conveyed Assets transferred by the Seller to the Purchaser or disregard the separateness of the Purchaser or the Issuer from
the Seller, and (iii) the transfer of Conveyed Assets pursuant to this Agreement shall comply with the requirements of 12 C.F.R. Section 360.6. If, notwithstanding the intention of the Seller and the Purchaser, such conveyance is deemed to
be a pledge in connection with a financing or is otherwise deemed not to be a sale (a “Recharacterization”), the Seller hereby grants, and the parties intend that the Seller shall have granted to the Purchaser, a first priority perfected
security interest in all of Seller’s right, title and interest in all of the Conveyed Assets and all proceeds of the foregoing, and that this Agreement shall constitute a security agreement under Applicable Law and the Purchaser shall have all
of the rights and remedies of a secured party and creditor under the UCC as in force in the relevant jurisdictions. In the case of any Recharacterization, each of the Seller and the Purchaser represents and warrants as to itself that each remittance
of collections by the Seller to the Purchaser hereunder will have been (i) in payment of a debt incurred by the Seller in the ordinary course of business or financial affairs of the Seller and the Purchaser and (ii) made in the ordinary
course of business or financial affairs of the Seller and the Purchaser. 
 Effective as of the Closing Date, the Seller shall retain
possession of the Receivable Files in its capacity as Custodian. 
 Section 2.02. Receivables Purchase Price. On the Closing Date, in
consideration for the Conveyed Assets, the Purchaser shall pay to the Seller (i) the Receivables Purchase Price, which is equal to $412,272,557.84 from the sale of the Notes to the Underwriters pursuant to the Underwriting Agreement and the
Certificates to the Certificate Purchasers pursuant to the Certificate Purchase Agreements less (ii) the organizational, startup and transactional expenses of the Issuer, equal to $750,000.00, and the Reserve Account Initial Deposit of
$1,052,632.55. 

  
 2 

 Section 2.03. Costs and Expenses. 

(a) The Seller will pay all expenses incident to the performance of its obligations under this Agreement and all expenses in connection with
the perfection as against third parties of the Purchaser’s right, title and interest in and to the Conveyed Assets and the Purchaser agrees to pay expenses incident to the performance of its obligations under this Agreement. 

(b) In connection with the purchase of the Receivables hereunder, and the issuance and sale of the Securities, the Seller shall pay (or shall
reimburse the Underwriters and the Placement Agent or any other Person to the extent that the Underwriters or the Placement Agent or such other Person shall pay), to the extent any of the following amounts are not paid by the Purchaser, including:
(i) expenses incident to the preparing, printing, reproducing and distributing of the Prospectus and the Offering Memorandum, (ii) the fees and expenses of qualifying the Notes and Certificates under the securities laws of the several
jurisdictions and of preparing, printing and distributing any blue sky survey (including related fees and expenses of counsel to the Underwriters and the Placement Agent), (iii) any fees charged by the Rating Agencies in connection with rating
the Notes, (iv) the fees of DTC in connection with the book-entry registration of the Securities, (v) the fees and disbursements of the Trustees and their respective counsels, (vi) the fees and disbursements of the accountants to
Mechanics Bank and the Depositor and (vii) the fees and disbursements of the Underwriters and Placement Agent and, as previously agreed upon, their counsel. 

  
 3 

 ARTICLE THREE 

REPRESENTATIONS AND WARRANTIES 

Section 3.01. Representations and Warranties of the Purchaser. The Purchaser hereby makes the following representations and warranties
upon which the Seller may rely. Such representations are made as of the execution and delivery of this Agreement, but shall survive the sale, transfer and assignment of the Receivables to the Purchaser, the sale thereof by the Purchaser to the
Issuer and the pledge thereof by the Issuer to the Indenture Trustee. 
 (a) Organization and Good Standing. It has
been duly organized and is validly existing as a limited liability company in good standing under the laws of the State of Delaware and has the limited liability company power and authority to execute and deliver this Agreement and to perform the
terms and provisions hereof. 
 (b) Due Qualification. It is duly qualified to do business as a foreign limited
liability company in good standing, and has obtained all necessary licenses and approvals in California and all jurisdictions where the failure to do so would materially and adversely affect (i) its ability to acquire the Conveyed Assets and to
transfer the Conveyed Assets to the Issuer pursuant to the Sale and Servicing Agreement, (ii) the validity or enforceability of the Conveyed Assets or (iii) its ability to perform its obligations under this Agreement. 

(c) Power and Authority. It has full power, authority and legal right to execute, deliver and perform this Agreement
and has taken all necessary action to authorize the execution, delivery and performance by it of this Agreement. 
 (d)
No Consent Required. No approval, authorization, consent, license or other order or action of, or filing or registration with, any governmental authority, bureau or agency is required in connection with the execution, delivery or performance
by it of this Agreement or the consummation of the transactions contemplated hereby. 
 (e) Binding Obligation. This
Agreement has been duly executed and delivered by it and this Agreement constitutes a legal, valid and binding obligation of it, enforceable against it in accordance with its terms, subject, as to enforceability, to applicable bankruptcy,
insolvency, reorganization, conservatorship, receivership, liquidation and other similar laws affecting the enforcement of the rights of creditors generally and to equitable limitations on the availability of specific remedies. 

(f) No Violation. The execution, delivery and performance by it of this Agreement and the consummation of the
transactions contemplated hereby will not conflict with, result in any breach of the material terms and provisions of, constitute (with or without notice or lapse of time) a material default under or result in the creation or imposition of any Lien
under any of its material properties pursuant to the terms of (i) its certificate of formation or operating agreement, (ii) any indenture, contract, lease, mortgage, deed of trust or other instrument or agreement to which it is a party or
by which it is bound or to which any of its properties are subject or (iii) any law, order, rule or regulation applicable to it of any Governmental Authority having jurisdiction over it. 

  
 4 

 (g) No Proceedings. There are no proceedings or investigations pending,
or, to its knowledge, threatened, before any Governmental Authority having jurisdiction over it or its properties: (i) asserting the invalidity of this Agreement or the transactions contemplated herein, (ii) seeking to prevent the
consummation of any of the transactions contemplated by this Agreement, (iii) seeking any determination or ruling that might materially and adversely affect the performance by it of its obligations under, or the validity or enforceability of,
this Agreement or the transactions contemplated herein or (iv) that may materially and adversely affect this Agreement or the transactions contemplated hereby. 

(h) Chief Executive Office. Its chief executive office is 18400 Von Karman, Suite 1100, Irvine, California 92612.

 Section 3.02. Representations and Warranties of the Seller. The Seller hereby makes the following representations and warranties
upon which the Purchaser may rely. Such representations are made as of the execution and delivery of this Agreement, but shall survive the sale, transfer and assignment of the Receivables to the Purchaser, the sale thereof by the Purchaser to the
Issuer and the pledge thereof by the Issuer to the Indenture Trustee. 
 (a) Organization and Good Standing. It has
been duly incorporated and is validly existing as a corporation in good standing under the laws of the State of California authorized to engage in the business of banking, has the corporate power and authority to execute and legal right to own its
properties and conduct its business of originating Receivables as such properties are at present owned and such business is at present conducted and had at all relevant times, and has, power, authority and legal right to acquire, own, service and
sell the Conveyed Assets pursuant to the terms of this Agreement. 
 (b) Due Qualification. It is duly qualified to
do business as a foreign corporation and is in good standing, and has obtained all necessary licenses and approvals, in all jurisdictions in which the ownership or lease of property or the conduct of its business shall require such qualifications
and in which the failure to do so would materially and adversely affect (i) its performance of its obligations under this Agreement or (ii) the validity or enforceability of this Agreement or the Conveyed Assets. 

(c) Power and Authority. It has the power, authority and legal right to execute and deliver this Agreement, to carry
out its terms and to sell and assign the Conveyed Assets; and the execution, delivery and performance of this Agreement has been duly authorized by it by all necessary action. 

(d) No Consent Required. No approval, authorization, consent, license or other order or action of, or filing or
registration with, any governmental authority, bureau or agency is required in connection with the execution, delivery or performance of this Agreement or the consummation of the transactions contemplated hereby or thereby, other than the filing of
UCC financing statements or as otherwise has been made or obtained. 

  
 5 

 (e) Valid Sale; Binding Obligation. It intends this Agreement to effect a
valid sale, transfer and assignment of the Receivables and the other Conveyed Assets conveyed by it to the Purchaser hereunder, enforceable against creditors of and purchasers from it; and this Agreement constitutes a legal, valid and binding
obligation of it, enforceable against it in accordance with its terms, subject, as to enforceability, to applicable bankruptcy, insolvency, reorganization, conservatorship, receivership, liquidation and other similar laws affecting enforcement of
the rights of creditors generally and to equitable limitations on the availability of specific remedies. 
 (f) No
Violation. The execution, delivery and performance by it of this Agreement and the consummation of the transactions contemplated hereby will not conflict with, result in any material breach of any of the terms and provisions of, constitute (with
or without notice or lapse of time) a material default under, or result in the creation or imposition of any Lien upon any of its material properties pursuant to the terms of, (i) its articles of incorporation or bylaws, (ii) any
indenture, contract, lease, mortgage, deed of trust or other instrument or agreement to which it is a party or by which it is bound or (iii) any law, order, rule or regulation applicable to it of any Governmental Authority having jurisdiction
over it. 
 (g) No Proceedings. There are no proceedings or investigations pending, or, to its knowledge, threatened,
before any Governmental Authority having jurisdiction over it or its properties: (i) asserting the invalidity of this Agreement or the transactions contemplated herein, (ii) seeking to prevent the consummation of any of the transactions by
this Agreement, (iii) seeking any determination or ruling that might materially and adversely affect the performance by it of its obligations under, or the validity or enforceability of, this Agreement or the transactions contemplated herein or
(iv) that may materially and adversely affect this Agreement or the transactions contemplated hereby. 
 (h)
Compliance With Requirements of Law. It shall duly satisfy all obligations on its part to be fulfilled under or in connection with each Receivable, will maintain in effect all qualifications required under Applicable Law and will comply in
all material respects with all other Applicable Laws in connection with servicing each Receivable the failure to comply with which would have a material adverse effect on its performance of its obligations under this Agreement. 

(i) True Sale. The Receivables are being transferred with the intention of removing them from its estate pursuant to
the FDIC Rule and, to the extent applicable, Section 541 of the Bankruptcy Code. 
 (j) Chief Executive Office.
Its chief executive office is 18400 Von Karman, Suite 1100, Irvine, California 92612. 
 (k) Official
Record. This Agreement and all other documents related hereto to which it is a party have been approved by its board of directors, which approval is 

  
 6 

 
reflected in the minutes or unanimous written consent of such board, and shall continuously from time to time of each such document’s execution, be maintained as its official record. 

Section 3.03. Representations and Warranties as to the Receivables. The Seller hereby makes the following representations and
warranties as to each Receivable conveyed by it to the Purchaser hereunder on which the Purchaser shall rely in acquiring the Receivables. Such representations and warranties shall survive the sale, transfer and assignment of the Receivables to the
Purchaser hereunder, the sale thereof to the Issuer under the Sale and Servicing Agreement, and the pledge thereof to the Indenture Trustee pursuant to the Indenture. Such representations and warranties are made as of the date of execution and
delivery of this Agreement and the Closing Date, unless otherwise noted below. 
 (a) Good Title. It is the intention
of the Seller that the transfer and assignment herein contemplated constitute a sale of the Receivables from the Seller to the Purchaser and that the beneficial interest in and title to the Receivables not be part of the Seller’s estate in the
event of a FDIC conservatorship or receivership of the Seller, or, to the extent applicable, the filing of a bankruptcy petition by or against the Seller under any Insolvency Law, whether the Seller treats the transfer as a secured financing or as a
sale for accounting purposes. No Receivable (including the right to receive payments thereunder) has been sold, transferred, assigned, or pledged by the Seller to any Person other than the Purchaser. Immediately prior to the transfer and assignment
herein contemplated, the Seller was the sole owner of and had good and marketable title to the Receivables free and clear of any Lien and had full right and power to transfer and assign the Receivables to the Purchaser and immediately upon the
transfer and assignment of the Receivables to the Purchaser, the Purchaser shall have good and marketable title to the Receivable, free and clear of any Lien and the Purchaser’s interest in the Receivables resulting from the transfer will be as
of the Closing Date perfected under the UCC. 
 (b) No Assignment. As of the Closing Date, the Seller shall not have
taken any action to convey any right to any Person that would result in such Person having a right to payments received under the insurance policies relating to the Financed Vehicles or Dealer Agreements, or payments due under the Receivables. 

(c) Past Due. As of the Cutoff Date, no Receivable was more than 30 days past due. 

(d) Characteristics of Receivables. Each Receivable 

(i) was originated by a Dealer in the ordinary course of such Dealer’s business and such Dealer had all necessary
licenses and permits to originate Receivables in the State where it was located; 
 (ii) was duly and properly executed by
the parties thereto, was purchased by the Seller from a Dealer under a Dealer Agreement pursuant to which the Seller acquires Receivables in the ordinary course of business and was validly assigned by such Dealer to the Seller; 

  
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 (iii) contains customary and enforceable provisions such as to render the rights
and remedies of the holder thereof adequate for realization against the collateral security; 
 (iv) is secured by a
Financed Vehicle that, as of the Cutoff Date, has not been repossessed; 
 (v) is fully amortizing and provides for level
monthly payments (provided that the payment in the first monthly period and the final monthly period of the life of the Receivable may be minimally different from the level payment) which, if made when due shall fully amortize the amount financed
over the original term and yield interest at the rate set forth on the Receivable; 
 (vi) is a fixed rate, simple interest
loan; 
 (vii) shall provide for, in the event that such Receivable is prepaid, a prepayment that fully pays the principal
balance and includes any accrued and unpaid interest due pursuant to the related contract through the date of prepayment in an amount at least equal to the rate set forth on the Receivable; and 

(viii) has not been amended or collections with respect to which waived, other than as evidenced in the Receivable File
related thereto. 
 (e) Individual Characteristics. The Receivables have the following individual characteristics as
of the Cutoff Date; 
 (i) each Receivable has an APR of not less than 0.001% and not more than 24.00%; 

(ii) each Receivable had an original term to maturity of not less than 12 months and not more than 75 months; 

(iii) each Receivable has a remaining term to maturity, as of the Cutoff Date, of not less than 10 months and not more than
75 months; 
 (iv) each Receivable has a Cutoff Date Principal Balance of not less than $1,000 and no more than $95,000;

 (v) no Obligor as to any Receivable had a non-zero FICO® score
of less than 500; and 
 (vi) as of the Cutoff Date, no Receivable had a scheduled maturity date later than May 16,
2023. 
 (f) No Fraud or Misrepresentation. Each Receivable was originated by the related Dealer and sold by the
Dealer to the Seller without any fraud or misrepresentation on the part of such Dealer. 

  
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 (g) Compliance With Law. All requirements of applicable federal, State and
(to the best knowledge of the Seller) local laws and regulations thereunder (including usury laws, the Federal Truth-in-Lending Act, the Equal Credit Opportunity Act, the Fair Credit Billing Act, the Fair Credit Reporting Act, the Fair Debt
Collection Practices Act, the Federal Trade Commission Act, the Magnuson-Moss Warranty Act, the Federal Reserve Board’s Regulation “M,” the Consumer Financial Protection Bureau’s Regulations “B” and “Z”
applicable to consumer auto finance transactions, State unfair and deceptive practices and state adaptations of the National Consumer Act and of the Uniform Consumer Credit Code and other consumer credit laws and equal credit opportunity and
disclosure laws) in respect of all of the Receivables and the Financed Vehicles, have been complied with in all material respects, and each Receivable and the sale of the related Financed Vehicle complied at the time it was originated or made and
now complies in all material respects with all applicable legal requirements. 
 (h) Origination. Each Receivable was
originated in the United States to an Obligor who is a natural person and who is not an Affiliate of any party to any of the Basic Documents. 

(i) Binding Obligation. Each Receivable represents the genuine, legal, valid and binding payment obligation in writing
of the related Obligor, enforceable by the holder thereof in all material respects in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws
affecting the enforcement of creditors’ rights generally and by equitable limitations on the availability of specific remedies, regardless of whether such enforceability is considered in a proceeding in equity or at law; and all parties to each
Receivable had full legal capacity to exercise and deliver such Receivable and all other documents related thereto and to grant the security interest purported to be granted thereby. 

(j) No Government Obligor. No Obligor is the United States or any State or any agency, department, subdivision or
instrumentality thereof. 
 (k) Obligor Bankruptcy. No Receivable is identified in the records of the Servicer as
relating to an Obligor who has filed for bankruptcy or is the subject of bankruptcy proceedings as of the Cutoff Date 
 (l)
Receivable Schedule. The information regarding the Receivables set forth in the Schedule of Receivables is true and correct in all material respects as of the close of business on the Cutoff Date. 

(m) Marking Records. By the Closing Date, the Seller will have caused the portions of the electronic ledger relating to
the Receivables to be clearly and unambiguously marked to show that the Receivables have been transferred to the Purchaser or as otherwise required by the Purchaser. 

(n) Adverse Selection. No selection procedures believed by the Seller to be adverse to the Purchaser or the Noteholders
were utilized in selecting the Receivables from those motor vehicle receivables owned by the Seller eligible for transfer to the Purchaser pursuant to this Agreement. 

  
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 (o) Obligations. The Seller has duly fulfilled all material obligations on
its part to be fulfilled under, or in connection with, the Receivable, and delivery of the related Financed Vehicle to the Obligor has occurred. 

(p) Chattel Paper. As of the Cutoff Date, (i) the Receivables constitute either “electronic chattel
paper” or “tangible chattel paper” as such terms are defined in the relevant UCC, (ii) no more than 10% of the Pool Balance is represented by Receivables constituting “electronic chattel paper” and (iii) at least
90% of the Pool Balance is represented by Receivables constituting “tangible chattel paper.” 
 (q) One
Original. There is only one original executed copy of each Receivable. 
 (r) Receivable Files Complete. There
exists a Receivable File pertaining to each Receivable and such Receivable File contains each of the documents referred to in the definition of such term in Appendix A of the Sale and Servicing Agreement. Each of such documents which is required to
be signed by the Obligor has been signed by the Obligor in the appropriate spaces. All applicable blanks on any form have been properly filled in and each form has otherwise been correctly prepared. The Receivable File for each Receivable currently
is in the possession of the Custodian. 
 (s) Receivables in Force. As of the Cutoff Date, no Receivable has been
satisfied, subordinated or rescinded, and the Financed Vehicle securing each such Receivable has not been released from the lien of the related Receivable in whole or in part; no provisions of any Receivable have been waived, altered or modified in
any respect since its origination, except by instruments or documents identified in the Receivable File; and no Receivable has been modified as a result of application of the Servicemembers Civil Relief Act or the California Military Families
Financial Relief Act. 
 (t) Lawful Assignment. No Receivable was originated in, or is subject to the laws of, any
jurisdiction the laws of which would make unlawful, void or voidable the sale, transfer and assignment of such Receivable under this Agreement or to be entered into by the Purchaser. 

(u) Composition of Receivable. No Receivable has a Principal Balance which includes capitalized interest, late charges
or amounts attributable to the payment of the premium for any insurance policy. 
 (v) Security Interest in Financed
Vehicle. The Seller has a first priority perfected security interest in all of the Financed Vehicles securing the Receivables, which security interest is assignable together with such Receivables and has been so assigned to the Purchaser. There
are no Liens affecting a Financed Vehicle which are or may be Liens prior or equal to the lien of the related Receivable. 

  
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 (w) Notations of Security Interest in Financed Vehicle. With respect to
each Receivable, (i) if the related Financed Vehicle is located in a State in which notation of a security interest on the title document is required or permitted to perfect such security interest, the title document shows, or if a new or
replacement title document is being applied for with respect to such Financed Vehicle the title document will be received within 180 days of the date of origination of such Receivable and will show the Seller named as the original secured party
under each Receivable as the holder of a first priority security interest in such Financed Vehicle and (ii) if the related Financed Vehicle is located in a State in which the filing of a financing statement under the UCC is required or
permitted to perfect such security interest, such filings have been duly made and show the Seller named as the secured party. With respect to each Receivable for which the title document has not yet been returned from the applicable registrar of
titles, the Seller has (i) received written evidence from the related Dealer that such title document showing the Seller as first lienholder has been applied for or (ii) applied for such title document showing the Seller as first
lienholder. 
 (x) All Filings Made. All filings (including UCC filings) required to be made by any Person and
actions required to be taken or performed by any Person in any jurisdiction to give the Purchaser a first priority perfected lien on, or ownership interest in, the Receivables and the proceeds thereof have been made, taken or performed. 

(y) No Impairment. The Seller has not done anything to convey any right to any Person that would result in such Person
having a right to payments due under the Receivable or otherwise to impair the rights of the Purchaser in any Receivable or the proceeds thereof. 

(z) Receivable Not Assumable. No Receivable is assumable by another Person in a manner which would release the Obligor
thereof from such Obligor’s obligations with respect to such Receivable. 
 (aa) No Defenses. No Receivable is
subject to any right of rescission, setoff, counterclaim or defense and no such right has been asserted or threatened with respect to any Receivable. 

(bb) No Default. There has been no default, breach, violation or event permitting acceleration under the terms of any
Receivable (other than a current payment delinquency of not more than 30 days as of the Cutoff Date) and no condition exists or event has occurred and is continuing that with notice, the lapse of time or both would constitute a default, breach,
violation or event permitting acceleration under the terms of any Receivable, and there has been no waiver of any of the foregoing. No funds have been advanced by the Seller or any Dealer or any Person acting on the behalf of the Seller or any
Dealer for the purpose of enabling any Obligor to qualify under the preceding sentence. 
 (cc) Insurance. Each
Receivable requires the related Obligor to maintain a comprehensive and collision insurance policy (i) in an amount at least equal to the lesser of (A) its maximum insurable value or (B) the Principal Balance due from the Obligor 

  
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under the related Receivable, (ii) naming the Seller as loss payee and (iii) insuring against loss and damage due to fire, theft, transportation, collision and other risks generally
covered by comprehensive and collision coverage. Each Receivable requires the Obligor to maintain physical loss and damage insurance, naming the Seller and its successors and assigns as additional insured parties and each Receivable permits, but
does not require, the holder thereof to obtain physical loss and damage insurance at the expense of the Obligor if the Obligor fails to do so. No Receivable was subject to force-placed insurance as of the Cutoff Date; 

(dd) Paid Ahead. As of the Cutoff Date, any amounts paid ahead on the Receivables have been applied to the Principal
Balance of the Receivables, as reflected in the Schedule of Receivables. 
 (ee) Interest Payable. With respect to
each Receivable, interest will be charged and payable on the Principal Balance of the Receivable since the date of the last payment on the Receivable (and in all cases will be charged since the Cutoff Date). 

(ff) Underwriting Guidelines. Each Receivable has been originated in accordance with the Seller’s underwriting
guidelines. 
 (gg) Bulk Transfer Laws. The transfer, assignment and conveyance of the Receivables and the related
Receivable Files from the Seller to the Purchaser are not subject to the bulk transfer or any similar statutory provisions in effect in any applicable jurisdiction. 

(hh) Geographic. No Receivable was originated by a Dealer located in any State other than Arizona, California,
Colorado, Florida, Idaho, Illinois, Iowa, Kansas, Missouri, Nevada, Oklahoma, Oregon, Texas, Utah or Washington. 
 Section 3.04.
Seller’s Repurchase of Receivables for Breach of Representations. 
 (a) Investigation of Breach. If a Responsible
Officer of the Seller (i) has knowledge of a breach of a representation or warranty made in Section 3.03, (ii) receives notice from the Purchaser, the Issuer, the Owner Trustee or the Indenture Trustee of a breach of a representation
or warranty made in Section 3.03, (iii) receives a Repurchase Request from the Owner Trustee, a Note Owner, a Noteholder or the Indenture Trustee for a Review Receivable or (iv) receives a Review Report that indicates a Test Fail for
a Receivable, then, in each case, the Seller will investigate the Receivable to confirm the breach and determine if the breach has a material adverse effect on the Receivable. None of the Servicer, the Issuer, the Owner Trustee, the Indenture
Trustee or the Administrator will have an obligation to investigate whether a breach of any representation or warranty has occurred, whether any such breach has a material adverse effect on the related Receivable, or whether any Receivable is
required to be repurchased under this Section. 
 (b) Repurchase of Receivables; Payment of Purchase Price. The Seller may, and if
the breach has a material adverse effect on the Receivable will, repurchase the Receivable described in Section 3.04(a) by paying the Purchase Price on the Business Day before the Payment Date (or, with satisfaction of the Rating Agency
Condition, on the Payment Date) 

  
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related to the Collection Period in which the Seller has knowledge or was notified of and confirmed the breach or, at the Seller’s option, on the following Payment Date, unless the breach is
cured in all material respects before that Payment Date. 
 (c) Sale and Assignment of Repurchased Receivable. When the Seller’s
payment of the Purchase Price for a Receivable is included in Available Collections for a Payment Date, the Purchaser will be deemed to have sold and assigned to the Seller, effective as of the last day of the Collection Period before the related
Collection Period, all of the Purchaser’s right, title and interest in the Receivable and all security and documents relating to the Receivable. The sale will not require any action by the Purchaser and will be without recourse, representation
or warranty by the Purchaser except the representation that the Purchaser owns the Receivable free and clear of any Lien, other than Permitted Liens. After the sale, the Servicer will mark its receivables systems to indicate that the receivable is
no longer a Receivable and may take any action necessary or advisable to transfer the Purchased Receivable, free from any Lien of the Purchaser, the Issuer or the Indenture Trustee. 

(d) Repurchase Sole Remedy. The sole remedy for a breach of the Seller’s representations and warranties made in Section 3.03
is to require the Seller to repurchase the Receivable under this Section. The Purchaser will enforce the Seller’s repurchase obligation under this Section. 

(e) Dispute Resolution. The Seller agrees to be bound by the dispute resolution terms in Section 3.04 of the Sale and Servicing
Agreement as if they were part of this Agreement. 
 Section 3.05. Representations and Warranties as to Security Interests. The
Seller represents and warrants to the Purchaser, with respect to the Receivables, as of the Closing Date: 
 (a) Security
Interest. This Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in the Receivables in favor of the Purchaser, which security interest is prior to all other Liens, and is enforceable as such against
creditors of and purchasers from the Seller. 
 (b) Perfection. The Seller has taken all steps necessary to perfect
its security interest against the Obligor in the Financed Vehicles. 
 (c) Chattel Paper. The Receivables constitute
“tangible chattel paper” or “electronic chattel paper” under the applicable UCC; as of the Cutoff Date, no more than 10% of the Pool Balance is represented by Receivables constituting “electronic chattel paper,” and at
least 90% of the Pool Balance is represented by Receivables constituting “tangible chattel paper.” 
 (d)
Title. The Seller owns and has good and marketable title to the Receivables free and clear of any Lien, claim or encumbrance of any Person. 

(e) Acknowledgment. The Seller has received a written acknowledgment from the Servicer that the Servicer is holding the
loan agreements and installment sale contracts that constitute or evidence the Receivables solely on behalf and for the benefit of the Issuer. 

  
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 (f) No Other Grants. Other than the security interest granted to the
Purchaser pursuant to this Agreement, the Seller has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Receivables. The Seller has not authorized the filing of and is not aware of any financing statements
against the Seller that include a description of collateral covering the Receivables other than any financing statement relating to the security interest granted to the Purchaser hereunder or that has been terminated. The Seller is not aware of any
judgment or tax lien filings against the Seller. 
 (g) Notations. None of the installment sale contracts that
constitute or evidence the Receivables have any marks or notations indicating that they have been pledged, assigned, or otherwise conveyed by the Seller to any Person other than the Purchaser. 

So long as Standard & Poor’s is a Rating Agency, the representations and warranties set forth in this Section may not be waived.
The representations and warranties set forth in this Section will survive the termination of this Agreement until the Indenture has been discharged. 

  
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 ARTICLE FOUR 

SELLER’S COMPLIANCE WITH THE FDIC RULE 

Section 4.01. Purpose. 

(a) Each of the Seller and the Purchaser acknowledges and agrees that the Receivables sold and transferred to the Purchaser by the Seller
pursuant to this Agreement will be concurrently sold and transferred to the Issuer and the Issuer will concurrently issue Notes backed by the cash flow from the Receivables subject to the Indenture in a transaction intended to be a securitization as
that term is defined in the FDIC Rule. The Seller and the Purchaser desire that the Receivables not be subject to reclamation, recovery or recharacterization as assets of the Seller or the conservatorship or receivership estate upon the institution
of a conservatorship or receivership by the FDIC. The provisions of this Article are intended to ensure compliance by the Seller of the FDIC Rule. 

(b) As used in this Article, but subject to the rules of interpretation specified in Section 1.02, references to (i) the
“sponsor” shall mean Mechanics Bank, (ii) the “issuing entity” shall mean, collectively, the Purchaser in its capacity as the Depositor, and the Issuer, (iii) the “servicer” shall mean the Servicer or the
Administrator, as applicable, (iv) “obligations” or “securitization obligations” shall mean the Notes and (v) “financial assets” and “securitized financial assets” shall mean the Receivables. 

(c) The purpose of this Article is to facilitate compliance by the sponsor with the provisions of the FDIC Rule. The Seller, as sponsor, and
the Purchaser, as an issuing entity, acknowledge that the interpretations of the requirements of the FDIC Rule may change over time, whether due to interpretive guidance provided by the FDIC or its staff, consensus among participants in the
asset-backed securities markets, advice of counsel or otherwise, and agree that the provisions set forth in this Article shall have the effect and meanings that are appropriate under the FDIC Rule as such meanings change over time on the basis of
evolving interpretations of the FDIC Rule. 
 (d) If any provision of the FDIC Rule is amended, or any interpretive guidance regarding the
FDIC Rule is provided by the FDIC or its staff, as a result of which the Purchaser is advised by the Issuer or the Indenture Trustee that either have determined that an amendment to this Article is necessary or desirable, then the Seller agrees that
it will cause this Agreement to be amended in accordance with such FDIC Rule amendment or guidance; provided that the Purchaser or the Issuer delivers to the Indenture Trustee an Officer’s Certificate to the effect that (i) such amendment
will not have a material adverse effect on the Noteholders or (ii) such amendment is required to remain in compliance with the FDIC Rule. 

Section 4.02. Requirements of FDIC Rule. As required by the FDIC Rule: 

(a) Payment of principal and interest on the securitization obligations must be primarily based on the performance of
financial assets that are transferred to the issuing entity and, except for interest rate or currency mismatches between the financial assets and the obligations, shall not be contingent on market or credit events that are independent of such
financial assets. 

  
 15 

 (b) The sponsor, issuing entity and/or servicer, as appropriate, shall make
available to investors, information describing the financial assets, obligations, capital structure, compensation of relevant parties, and relevant historical performance data set forth below: 

(i) On or prior to issuance of obligations and at the time of delivery of any periodic distribution report and, in any event,
at least once per calendar quarter, while obligations are outstanding, information about the obligations and the securitized financial assets shall be disclosed to all potential investors at the financial asset or pool level, as appropriate for the
financial assets, and security-level to enable evaluation and analysis of the credit risk and performance of the obligations and financial assets. Such information and its disclosure, at a minimum, shall comply with the requirements of Regulation AB
or any successor disclosure requirements for public issuances, even if the obligations are issued in a private placement or are not otherwise required to be registered; provided, however, that information that is unknown or not available to the
sponsor or the issuing entity after reasonable investigation may be omitted if the issuing entity includes a statement in the offering documents disclosing that the specific information is otherwise unavailable; 

(ii) On or prior to issuance of obligations, the structure of the securitization and the credit and payment performance of
the obligations shall be disclosed, including the capital or tranche structure, the priority of payments and specific subordination features; representations and warranties made with respect to the financial assets, the remedies for and the time
permitted for cure of any breach of representations and warranties, including the repurchase of financial assets, if applicable; liquidity facilities and any credit enhancements permitted by the FDIC Rule, any waterfall triggers or priority of
payment reversal features; and policies governing delinquencies, servicer advances, loss mitigation, and write-offs of financial assets; 

(iii) While obligations are outstanding, the issuing entity shall provide to investors information with respect to the credit
performance of the obligations and the financial assets, including periodic and cumulative financial asset performance data, delinquency and modification data for the financial assets, substitutions and removal of financial assets, servicer
advances, as well as losses that were allocated to such tranche and remaining balance of financial assets supporting such tranche, if applicable, and the percentage of each tranche in relation to the securitization as a whole; and 

(iv) The nature and amount of compensation paid to the originator, sponsor, rating agency or third-party advisor, any
mortgage or other broker, and the servicer(s), and the extent to which any risk of loss on the underlying assets is retained by any of them for such securitization shall be disclosed; the Issuer shall

  
 16 

 
provide to investors while any obligations are outstanding any changes to such information and the amount and nature of payments of any deferred compensation or similar arrangements to any of the
parties. 
 (c) Prior to the effective date of regulations required under Section 15G of the Exchange Act, 15 U.S.C.
78a, et seq., added by Section 941(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (such regulations, the “Section 941 Rules” and such date, the “Section 941 Effective Date”), the sponsor shall retain an
economic interest in a material portion, defined as not less than 5%, of the credit risk of the financial assets. This retained interest may be either in the form of an interest of not less than 5% in each of the credit tranches sold or transferred
to the investors or in a representative sample of the securitized financial assets equal to not less than 5% of the principal amount of the financial assets at transfer. This retained interest may not be sold or pledged or hedged, except for the
hedging of interest rate or currency risk, during the term of the securitization. 
 (d) The obligations shall not be
predominantly sold to an Affiliate of the sponsor (other than a wholly-owned subsidiary consolidated for accounting and capital purposes with the sponsor) or insider of the sponsor. 

(e) The sponsor shall separately identify in its financial asset data bases the financial assets transferred into any
securitization and shall maintain an electronic or paper copy of the closing documents in a readily accessible form, a current list of all of its outstanding securitizations and issuing entities, and the most recent Form 10-K, if applicable, or
other periodic financial report for each securitization and issuing entity. The sponsor shall make these records readily available for review by the FDIC promptly upon written request. 

(f) To the extent serving as servicer, custodian or paying agent for the securitization, the sponsor shall not comingle
amounts received with respect to the financial assets with its own assets except for the time, not to exceed two business days, necessary to clear any payments received. 

Section 4.03. Effect of Section 941 Rules. Section 4.02(c) shall not be construed to require the sponsor to retain any
greater economic interest in the credit risk of the financial assets than is required to comply with the FDIC Rule and other Applicable Law. Accordingly, upon the Section 941 Effective Date and thereafter, the sponsor shall be entitled to
adjust the amount of credit risk that it retains, or the terms under which such credit risk is retained, to the greatest extent elected by the sponsor, so long as the sponsor’s retention shall be in compliance with then Applicable Law. Within a
reasonable time after the sponsor has so adjusted the amount or terms of the credit risk it retains, the sponsor shall give notice thereof to the Indenture Trustee and the Noteholders, and each of the Seller and the Purchaser, are authorized and
entitled to amend Section 4.02(c), in accordance with and to the extent the Issuer, or the Servicer on its behalf, determines necessary or appropriate, to reflect the requirements of the Section 941 Rules. 

  
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 Section 4.04. Actions Upon Repudiation. In the event that the Seller becomes the subject
of an insolvency proceeding and the FDIC as receiver or conservator for the Seller exercises its right of repudiation as contemplated by paragraph (d)(4)(ii) of the FDIC Rule, the Servicer shall determine whether the FDIC in such capacity will pay
damages as provided in such paragraph (d)(4)(ii). Upon making such determination, the Servicer shall promptly, and in any event no more than one Business Day thereafter, so notify the Indenture Trustee. The Servicer shall, thereafter, comply with
the directions of the Indenture Trustee pertaining to such damages and the distribution of such damages. 
 Section 4.05. Notice.

 (a) In the event that the Seller becomes the subject of an insolvency proceeding and the FDIC as receiver or conservator provides a
written notice of repudiation as contemplated by paragraph (d)(4)(ii) of the FDIC Rule, the party receiving such notice shall promptly deliver such notice to each of the Purchaser, the Seller, and the Indenture Trustee. 

(b) If the FDIC (i) is appointed as a conservator or receiver of the Seller and (ii) is in default in the payment of principal or
interest when due following the expiration of any cure period hereunder or under the other Basic Documents, delivery of written notice to the FDIC requesting the exercise of contractual rights hereunder and under the other Basic Documents shall be
taken by the Indenture Trustee pursuant to the Indenture. 
 Section 4.06. Reservation of Rights. Neither the inclusion of this
Article in this Agreement nor the compliance by any Person with, or the acknowledgment by any Person of, this Article’s provisions constitutes an agreement or acknowledgment by any Person that, upon the occurrence of an Insolvency Event with
respect to the Seller, a receiver or conservator will have any rights with respect to the Collateral. 

  
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 ARTICLE FIVE 

COVENANTS OF SELLER 
 Section
5.01. Protection of Title to Conveyed Assets. The Seller covenants and agrees with the Purchaser as follows: 
 (a)
The Seller shall authorize and file such UCC financing statements and cause to be authorized and filed such UCC continuation statements, all in such manner and in such places as may be required by Applicable Law fully to preserve, maintain and
protect the interest of the Purchaser and the Trustees in the Receivables and the proceeds thereof. The Seller shall deliver (or cause to be delivered) to the Purchaser file-stamped copies of, or filing receipts for, any document filed as provided
above, as soon as available following such filing. In the event that the Seller fails to perform its obligations under this subsection, the Purchaser or the Indenture Trustee may do so, at the expense of the Seller. In furtherance of the foregoing,
the Seller hereby authorizes the Purchaser or the Indenture Trustee to file a record or records (as defined in the applicable UCC), including financing statements, in all jurisdictions and with all filing offices as each may determine, in its sole
discretion, are necessary or advisable to perfect the security interest granted to the Purchaser pursuant to this Agreement. Such financing statements may describe the collateral in the same manner as described herein or may contain an indication or
description of collateral that describes such property in any other manner as such party may determine, in its sole discretion, is necessary, advisable or prudent to ensure the perfection of the security interest in the collateral granted to the
Purchaser herein. 
 (b) The Seller hereby authorizes the Purchaser, or the Issuer, to the extent the Seller has not done so
upon request, to execute and file in the Seller’s name any document required by Applicable Law to change the lien holder of record as to any Financed Vehicle to the Issuer if the Purchaser, or the Issuer determine such change is necessary to
maintain the perfected security interest of the Issuer in that Financed Vehicle. 
 (c) The Seller shall not change its
name, identity or corporate structure or jurisdiction of organization in any manner that would, could or might make any financing statement or continuation statement filed in accordance with Section 5.01(a) seriously misleading within the
meaning of the UCC, unless it shall have given the Purchaser and the Trustees at least 60 days’ prior written notice thereof and shall have promptly filed appropriate amendments to all previously filed financing statements or continuation
statements. 
 (d) The Seller shall give the Purchaser and the Trustees at least 60 days’ prior written notice of any
relocation of its principal executive office or change in its jurisdiction or organization, if, as a result of such relocation, the applicable provisions of the UCC would require the filing of any amendment of any previously filed financing or
continuation statement or of any new financing statement and shall promptly file any such amendment or new financing statement. 

  
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 (e) The Seller shall maintain its computer systems relating to installment loan
recordkeeping so that, from and after the time of sale under this Agreement of its Receivables, the Seller’s master computer records (including any backup archives) that refer to a Receivable shall indicate clearly the interest of the
Purchaser, the Issuer and the Indenture Trustee in such Receivable and that such Receivable has been sold to the Purchaser, sold by the Purchaser to the Issuer, is owned by the Issuer and has been pledged to the Indenture Trustee pursuant to the
Indenture. Indication of the interest in a Receivable of the Purchaser and the Indenture Trustee shall be deleted from or modified on Seller’s computer systems when, and only when, the related Receivable shall have been paid in full,
repurchased by the Seller or purchased by the Servicer. 
 (f) If at any time the Seller shall propose to sell, grant a
security interest in or otherwise transfer any interest in receivables to any prospective purchaser, lender or other transferee, the Seller shall give to such prospective purchaser, lender or other transferee computer tapes, records or printouts
(including any restored from backup archives) that, if they shall refer in any manner whatsoever to any Receivable, shall indicate clearly that such Receivable has been sold to the Purchaser, sold by the Purchaser to the Issuer and pledged to the
Indenture Trustee. 
 (g) The Seller shall, upon receipt of reasonable prior notice, permit the Purchaser, the Trustees and
their respective agents at any time during normal business hours to inspect, audit and make copies of and abstracts from the Seller’s records regarding any Receivable. 

(h) Upon request at any time, if the Purchaser or either Trustee shall have reasonable grounds to believe that such request is
necessary in connection with the performance of its duties under this Agreement, the Seller shall furnish to the Purchaser or such Trustee, as the case may be, within 30 Business Days, a list of all Receivables (by contract number and name of
Obligor) conveyed to the Purchaser hereunder and then owned by the Issuer, and pledged to Indenture Trustee, together with a reconciliation of such list to the Schedule of Receivables and to each of the Servicer’s Monthly Certificates furnished
before such request indicating removal of Receivables from the Issuer. 
 (i) The Seller covenants and agrees to deliver in
kind upon receipt to the Servicer under the Sale and Servicing Agreement all payments received by or on behalf of the Seller in respect of the Receivables as soon as practicable, but in no event later than two Business Days after receipt thereof.

 Section 5.02. Other Liens or Interests. Except for the conveyances hereunder, the Seller will not sell, pledge, assign or transfer
to any other Person, or grant, create, incur, assume or suffer to exist any Lien on the Conveyed Assets or any interest therein, and the Seller shall defend the right, title, and interest of the Purchaser and the Issuer in and to the Conveyed Assets
against all claims of third parties claiming through or under the Seller. 

  
 20 

 Section 5.03. Indemnification. 

(a) The Seller shall defend, indemnify and hold harmless the Purchaser, the Issuer, the Trustees, the Backup Servicer, if any, the Custodian,
the Noteholders and the Certificateholders from and against any and all costs, expenses, losses, damages, claims and liabilities (including the reasonable fees and expenses incurred in connection with the enforcement of any indemnification
obligations of the Seller) arising out of or resulting from (i) any breach of any of the Seller’s representations and warranties contained herein, (ii) any action taken, or failed to be taken, by it in respect of any portion of the
Receivables other than in accordance with this Agreement or the Sale and Servicing Agreement, or (iii) the failure of any Receivable, or the sale of the related Financed Vehicle, to comply with Applicable Law. 

(b) Indemnification under this Section shall include reasonable fees and expenses of counsel and expenses of litigation and shall survive
payment of the Notes and the Certificates. The indemnity obligations hereunder shall be in addition to any obligation that the Seller may otherwise have. 

  
 21 

 ARTICLE SIX 

MISCELLANEOUS PROVISIONS 

Section 6.01. Obligations of Seller. The obligations of the Seller under this Agreement shall not be affected by reason of any
invalidity, illegality or irregularity of any Receivable. 
 Section 6.02. Seller’s Assignment of Receivables. With respect to
all Receivables repurchased by the Seller pursuant to this Agreement, the Purchaser shall assign, without recourse, representation or warranty, to the Seller all of the Purchaser’s right, title and interest in and to such Receivables, and all
security and documents relating thereto. 
 Section 6.03. Subsequent Transfer to the Issuer and Indenture Trustee. 

(a) The Seller acknowledges that: 

(i) the Purchaser will, pursuant to the Sale and Servicing Agreement, sell the Receivables to the Issuer and assign its rights
under this Agreement to the Issuer for the benefit of the Securityholders, and the representations and warranties contained in this Agreement and the rights of the Purchaser under Section 3.04 are intended to benefit the Issuer and the
Securityholders; and 
 (ii) the Issuer will, pursuant to the Indenture, pledge the Receivables and its rights under this
Agreement to the Indenture Trustee for the benefit of the Noteholders, and that the representations and warranties contained in this Agreement and the rights of the Purchaser under this Agreement, including under Section 3.04, are intended to
benefit the Indenture Trustee and the Noteholders. 
 (b) The Seller hereby consents to (i) the sale and assignment in
Section 6.03(a)(i) and (ii) the pledge in Section 6.03(a)(ii). 
 Section 6.04. Amendment. 

(a) This Agreement may be amended by the Seller and the Purchaser, without the consent of any Securityholder or any other Person, (i) to
amend, following the Section 941 Effective Date, Sections 4.02(c) or 4.03 as contemplated by such Sections, (ii) to make amendments as contemplated by Section 4.01(d), (iii) to cure any ambiguity or defect, (iv) to correct
or supplement any provisions in this Agreement or (v) for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions in this Agreement; provided, that such action shall not adversely affect in any
material respect the interests of any Noteholder or Certificateholder. Any such amendment shall not be deemed to materially adversely affect the interests of any Securityholder if (i) the Person requesting such amendment obtains and delivers to
the Trustees an Opinion of Counsel or an Officer’s Certificate to that effect or (ii) the Rating Condition is satisfied. 
 (b)
This Agreement may also be amended from time to time by the Seller and the Purchaser, with the consent of the Indenture Trustee and the Holders of Notes evidencing not less than not less than 51% of the Note Balance of the Controlling Class of Notes
for the purpose 

  
 22 

 
of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement; provided that no such amendment shall (i) increase or reduce in any manner the
amount of, or accelerate or delay the timing of, collections of payments on Receivables or distributions that shall be required to be made for the benefit of the Securityholders or (ii) reduce the aforesaid percentage of the Note Balance of the
Controlling Class, the Holders of which are required to consent to any such amendment, without the consent of the Holders of all Outstanding Notes affected thereby. 

(c) Prior to the execution of any amendment to this Agreement, the Purchaser shall provide each Rating Agency with written notice of the
substance of such amendment. Promptly after the execution of any such amendment, the Purchaser shall furnish written notification of the substance of such amendment to each Rating Agency and the Trustees. 

Section 6.05. Waivers. No failure or delay on the part of the Purchaser or the Issuer or the Indenture Trustee, as the assignee, in
exercising any power, right or remedy under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or remedy preclude any other or further exercise thereof or the exercise of any other
power, right or remedy. 
 Section 6.06. Notices. All demands, notices and communications pursuant to this Agreement to either party
shall be in writing, personally delivered, or sent by telecopier, email, overnight mail or mailed by certified mail, return receipt requested, and shall be deemed to have been duly given upon the earlier of the receipt at the address set forth in
Exhibit A or at such other address as may be designated by it by notice to the other party, or the third Business Day after the date of sending. 

Section 6.07. Merger and Integration. Except as specifically stated otherwise herein, this Agreement and the other Basic Documents set
forth the entire understanding of the parties relating to the subject matter hereof, and all prior understandings, written or oral, are superseded by this Agreement and the other Basic Documents. 

Section 6.08. Severability. If any one or more of the covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, illegal or unenforceable, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions and terms of this Agreement and shall in no way affect the
validity or enforceability of the other covenants, agreements, provisions and terms of this Agreement or of the Receivables or the rights of the holders thereof. 

Section 6.09. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, WITHOUT REGARD TO ANY OTHERWISE APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

  
 23 

 Section 6.10. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be an original, but all of which together shall constitute one and the same instrument. 
 Section 6.11. Third-Party
Beneficiaries. All covenants and agreements contained herein will be binding upon, and inure to the benefit of, the parties hereto and their respective successors and permitted assigns, all as provided in this Agreement. Any request, notice,
direction, consent, waiver or other instrument or action by a party to this Agreement will bind the successors and assigns of such party. Each of the Issuer and Indenture Trustee is an intended third-party beneficiary of this Agreement. It is
acknowledged and agreed that the provisions of this Agreement may be enforced by or on behalf of such Persons against the Seller to the same extent as if it were a party hereto. Except as otherwise provided in this Agreement, no other Person will
have any right or obligation under this Agreement. 
 Section 6.12. Nonpetition Covenant. Each of the parties hereto covenants that
it will not at any time institute against, or join any Person in instituting against, the Issuer or the Purchaser any bankruptcy, reorganization, arrangement, insolvency or liquidation Proceedings or other Proceedings under any Insolvency Law in
connection with any obligations relating to the Basic Documents, and agrees that it will not cooperate with or encourage others to file a bankruptcy petition against the Issuer or the Purchaser. 

  
 24 

 IN WITNESS WHEREOF, the parties hereby have caused this Receivables Purchase Agreement to be
executed by their respective officers thereunto duly authorized as of the day and year first above written. 
  

					
		 	MECHANICS BANK
			
		 	By:	 	 /s/ Nathan Duda

		 	Name:	 	Nathan Duda
		 	Title:	 	EVP, CFO
		
		 	CALIFORNIA REPUBLIC FUNDING, LLC
			
		 	By:	 	 /s/ John DeCero

		 	Name:	 	John DeCero
		 	Title:	 	CEO

  
 2017-1 Receivables
Purchase Agreement 

 EXHIBIT A 
  

	
	ADDRESSES FOR NOTICES
	
	 Mechanics Bank

	 1111 Civic Drive, Suite 390

	 Walnut Creek, California 94596

	 Attn:  General Counsel

	 Tel:  800-797-6324

	 Fax:  925-627-3274

	 glenn_shrader@mechanicsbank.com

	
	 California Republic Funding, LLC

	 1111 Civic Drive, Suite 390

	 Walnut Creek, California 94596

	 Attn:  General Counsel

	 Tel:  800-797-6324

	 Fax:  925-627-3274

	 glenn_shrader@mechanicsbank.com

  
 A-1

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