Document:

cub_Ex10_23

		
			Exhibit 10.23
		

		
			 
		

		
			EXECUTION VERSION
		

		
			 
		

		
			UNCOMMITTED RECEIVABLES PURCHASE AGREEMENT
		

		
			among
		

		
			Cubic Corporation,
		

		
			and
		

		
			Cubic Transportation Systems, Inc.,
		

		
			as Sellers
		

		
			Cubic Corporation,
		

		
			as Parent
		

		
			and
		

		
			Bank of the West,
		

		
			 as Purchaser
		

		
			Dated as of September 26, 2018
		

		
			 
		

		
			 
		

		
			 
		

		
			Mayer Brown LLP
		

		
			1221 Avenue of the Americas
		

		
			New York, New York 10020
		

		
			 
		

		
			 
		

		
			

		 

		

		
			Table of contents
		

		
			 
		

			
					
						 

					
					
						Page

				
	
					
						 

					
					
						 

				
	
					
						SECTION 1.        Definitions And Interpretation. 

					
1
				
	
					
						SECTION 2.        Purchase And Sale. 

					
1
				
	
					
						Section 2.1

					
					
						Purchase and Sale

					
1
				
	
					
						Section 2.2

					
					
						Term

					
1
				
	
					
						Section 2.3

					
					
						UNCOMMITTED ARRANGEMENT

					
2
				
	
					
						Section 2.4

					
					
						Notification to Obligors, Etc. 

					
2
				
	
					
						Section 2.5

					
					
						Purchaser’s Records

					
2
				
	
					
						SECTION 3.        Payments, Taxes, Etc. 

					
2
				
	
					
						Section 3.1

					
					
						Payments Generally. 

					
2
				
	
					
						Section 3.2

					
					
						Overdue Amounts

					
3
				
	
					
						Section 3.3

					
					
						Withholding of Taxes. 

					
3
				
	
					
						SECTION 4.        Nature of Facility. 

					
4
				
	
					
						Section 4.1

					
					
						True Sale. 

					
4
				
	
					
						Section 4.2

					
					
						Retained Obligations. 

					
5
				
	
					
						SECTION 5.        Servicing and Settlement. 

					
5
				
	
					
						Section 5.1

					
					
						Servicing. 

					
5
				
	
					
						Section 5.2

					
					
						Notice to Purchaser

					
5
				
	
					
						Section 5.3

					
					
						Inspection

					
5
				
	
					
						Section 5.4

					
					
						Seller’s Accounts

					
6
				
	
					
						Section 5.5

					
					
						Settlement

					
7
				
	
					
						Section 5.6

					
					
						Settlement Report

					
7
				
	
					
						Section 5.7

					
					
						Termination of Servicing. 

					
7
				
	
					
						Section 5.8

					
					
						Late Payment Amount

					
8
				
	
					
						Section 5.9

					
					
						Amounts Held In Trust

					
8
				
	
					
						Section 5.10

					
					
						Misdirected Payments

					
8
				
	
					
						SECTION 6.        Conditions Precedent. 

					
9
				
	
					
						Section 6.1

					
					
						Effective Date; Initial Purchase Date

					
9
				
	
					
						Section 6.2

					
					
						Each Purchase Date

					
10
				
	
					
						SECTION 7.        Representations and Warranties. 

					
10
				
	
					
						Section 7.1

					
					
						Facility Parties

					
10
				

		
			 
		

		
			
		

		
			

		 

		

			i

		

		

		
			Table of Contents
		

		
			(continued)
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Page

				
	
					
						 

					
					
						 

				
	
					
						SECTION 8.        Covenants. 

					
12
				
	
					
						Section 8.1

					
					
						Facility Parties

					
13
				
	
					
						SECTION 9.        Repurchase; Deemed Collections. 

					
15
				
	
					
						Section 9.1

					
					
						Repurchase. 

					
15
				
	
					
						Section 9.2

					
					
						Additional Compensation

					
15
				
	
					
						Section 9.3

					
					
						Deemed Collections. 

					
15
				
	
					
						SECTION 10.        Parent Obligations; Confirmation; Termination of Parent Obligations. 

					
16
				
	
					
						Section 10.1

					
					
						Parent Obligations. 

					
16
				
	
					
						Section 10.2

					
					
						Confirmation

					
17
				
	
					
						Section 10.3

					
					
						Termination of Parent Obligations. 

					
17
				
	
					
						SECTION 11.        Miscellaneous. 

					
18
				
	
					
						Section 11.1

					
					
						Indemnity

					
18
				
	
					
						Section 11.2

					
					
						Duties and Taxes

					
18
				
	
					
						Section 11.3

					
					
						Expenses

					
19
				
	
					
						Section 11.4

					
					
						Setoff

					
19
				
	
					
						Section 11.5

					
					
						Notices

					
19
				
	
					
						Section 11.6

					
					
						Certificates and Determinations

					
21
				
	
					
						Section 11.7

					
					
						Assignments and Transfers

					
21
				
	
					
						Section 11.8

					
					
						Waivers, Remedies Cumulative

					
21
				
	
					
						Section 11.9

					
					
						Accounting Treatment

					
21
				
	
					
						Section 11.10

					
					
						Third Party Rights

					
21
				
	
					
						Section 11.11

					
					
						Counterparts

					
21
				
	
					
						Section 11.12

					
					
						Entire Agreement

					
22
				
	
					
						Section 11.13

					
					
						Amendments, Etc

					
22
				
	
					
						Section 11.14

					
					
						Exclusion of Liability

					
22
				
	
					
						Section 11.15

					
					
						Severability

					
22
				
	
					
						Section 11.16

					
					
						Headings

					
22
				
	
					
						Section 11.17

					
					
						Governing Law

					
22
				
	
					
						Section 11.18

					
					
						Consent to Jurisdiction

					
22
				
	
					
						Section 11.19

					
					
						WAIVER OF JURY TRIAL

					
23
				

		
			 
		

		
			
		

		
			

		 

		

			ii

		

		

		
			Table of Contents
		

		
			(continued)
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Page

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 11.20

					
					
						Joint and Several Obligations

					
23
				
	
					
						Section 11.21

					
					
						Joinder of Additional Sellers

					
23
				
	
					
						Section 11.22

					
					
						USA Patriot Act

					
24
				
	
					
						Section 11.23

					
					
						Confidentiality

					
24
				

		
			 
		

		
			
		

		

		 

		

			iii

		

	
					
						

					
						 

					
					
						 

					
					
						 

				
	
					
						ANNEX A

					
					
						-

					
					
						Defined Terms and Interpretation

				
	
					
						ANNEX B

					
					
						-

					
					
						Obligors

				
	
					
						EXHIBIT A

					
					
						-

					
					
						Form of Purchase Request

				

		
			 
		

		
			 
		

		
			

		 

		

			iv

		

		

		
			UNCOMMITTED RECEIVABLES PURCHASE AGREEMENT
		

		
			THIS UNCOMMITTED RECEIVABLES PURCHASE AGREEMENT, dated as of September 26, 2018 (this “Agreement”), among CUBIC CORPORATION, a Delaware corporation, CUBIC TRANSPORTATION SYSTEMS, INC., a California corporation, and any other seller from time to time party hereto (each, in such capacity, a “Seller” and collectively, the “Sellers”), CUBIC CORPORATION, a Delaware corporation, as parent (in such capacity, the “Parent”), and BANK OF THE WEST (the “Purchaser”).
		

		
			W I T N E S S E T H:
		

		
			WHEREAS, from time to time, each Seller may offer to sell and assign Receivables (as defined herein) to the Purchaser pursuant to the terms and conditions set forth herein;
		

		
			WHEREAS, the Purchaser may purchase such Receivables pursuant to the terms and conditions set forth herein; and
		

		
			WHEREAS, the Parent desires to absolutely, irrevocably and unconditionally become jointly and severally liable with the Sellers and to guaranty the payment and performance by the Sellers of their obligations hereunder.
		

		
			NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and agreed, the parties hereto agree as follows:
		

		
			SECTION 1.   DEFINITIONS AND INTERPRETATION.
		

		
			In this Agreement, capitalized terms shall have the meanings ascribed thereto in Clause A of Annex A, and the terms hereof shall be interpreted in accordance with Clause B of Annex A.
		

		
			SECTION 2.   PURCHASE AND SALE.
		

		
			Section 2.1       Purchase and Sale.  On each Purchase Date during the term hereof, subject to the terms and conditions set forth herein, (a) the Purchaser shall purchase from the applicable Seller or Sellers each Receivable described in the fully executed and completed Purchase Request with respect thereto, and (b) in consideration of the payment by the Purchaser to the applicable Seller of the Purchase Price for each such Receivable on such Purchase Date, such Seller shall sell and assign to the Purchaser all of such Seller’s right, title and interest in and to such Receivable as absolute owner thereof. Each Purchase Request shall be delivered via the BOW System; provided that, and notwithstanding anything herein to the contrary, (i) until the BOW System is first made available to the Sellers (which shall be at the Purchaser’s sole discretion) and (ii) thereafter, if the BOW System is not operational, is otherwise offline or if the Purchaser has, in its discretion, instructed each Seller that the BOW System is no longer available for use, then such Seller may deliver a Purchase Request to the Purchaser in the form of Exhibit A attached hereto, and this Agreement shall be construed and interpreted accordingly, mutatis mutandis.
		

		
			Section 2.2      Term.  Purchases of Receivables under this Agreement may be effected during the period from the Effective Date until this Agreement is terminated by either party, in
		

		
			 
		

		
			

		 

		

			 

		

		

		
			each case, in the sole and absolute discretion thereof.  Notwithstanding the foregoing, this Agreement, including all covenants, representations and warranties, repurchase obligations and indemnities made herein shall continue in full force and effect until the Final Collection Date.
		

		
			Section 2.3     UNCOMMITTED ARRANGEMENT.  EACH SELLER ACKNOWLEDGES THAT THIS IS AN UNCOMMITTED ARRANGEMENT, THAT NO SELLER HAS PAID, OR IS REQUIRED TO PAY, A COMMITMENT FEE OR COMPARABLE FEE TO THE PURCHASER, AND THAT THE PURCHASER HAS NO OBLIGATION TO PURCHASE ANY RECEIVABLE FROM ANY SELLER, REGARDLESS OF WHETHER THE CONDITIONS SET FORTH HEREIN ARE SATISFIED.
		

		
			Section 2.4      Notification to Obligors, Etc.
		

		
			(a)        The Purchaser may, at any time in its discretion, notify or otherwise indicate to any Obligor that the applicable Seller has sold the applicable Purchased Receivable to the Purchaser hereunder, and may direct such Obligor to make payments with respect to such Purchased Receivable directly to the Settlement Account (or as otherwise directed by the Purchaser).
		

		
			(b)        The Purchaser shall have all of the rights of an owner and holder respecting any Purchased Receivable, including the right to exercise any and all of its other rights and remedies hereunder, under any other Facility Document, under applicable law (including the UCC) or at equity to collect any Purchased Receivable directly from the applicable Obligor.
		

		
			(c)        Each Seller hereby appoints the Purchaser as the true and lawful attorney-in-fact of such Seller, with full power of substitution, and hereby authorizes and empowers the Purchaser in the name and on behalf of such Seller, to take such actions, and execute and deliver such instruments and documents, as the Purchaser deems proper in order to make collection of and otherwise realize the benefits of any Purchased Receivable; provided, unless and until a Termination Event shall have occurred, the Purchaser shall not exercise such power of attorney.  Each Seller agrees that the Purchaser shall not be liable as attorney-in-fact for any acts of commission or omission or for any error of judgment or mistake of fact or law except to the extent the same constitutes gross negligence or willful misconduct.
		

		
			Section 2.5      Purchaser’s Records.  The Purchaser is irrevocably authorized by each Seller to keep records of all purchases hereunder, which records shall be consistent with all information set forth in the Purchase Requests delivered to the Purchaser, and evidence the dates and amounts of purchases and the applicable Purchase Fee.
		

		
			SECTION 3.   PAYMENTS, TAXES, ETC.
		

		
			Section 3.1      Payments Generally.
		

		
			(a)        All amounts payable by any Facility Party to the Purchaser pursuant to or in connection with any Facility Document shall be paid in full, free and clear of all deductions, set-off or withholdings whatsoever except only as may be required by Law,
		

		
			
		

		
			

		 

		

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			and shall be paid on the date such amount is due no later than 11:00 a.m. (Pacific Standard Time) to the Settlement Account.
		

		
			(b)        All payments to be made under any Facility Document or in respect of a Purchased Receivable shall be made in Dollars in immediately available funds.
		

		
			(c)        Any amounts that would fall due for payment on a day other than a Business Day shall be payable on the succeeding Business Day unless such Business Day would fall into a new calendar month, in which case such payment shall be due on the preceding Business Day, and interest calculations, if any, shall be adjusted accordingly for such later payment.
		

		
			(d)        Any amount to be paid by the Purchaser to any Seller under any Facility Document, including the payment of any Purchase Price, shall be paid to such Seller’s Seller’s Account or to such other account as notified to the Purchaser from time to time by the applicable Seller in writing.
		

		
			Section 3.2      Overdue Amounts.  In the event that any amount payable by any Facility Party to the Purchaser pursuant to this Agreement or any other Facility Document (other than Collections, the late payment amount of which shall be determined pursuant to Section 5.8 hereof) remains unpaid for any reason after the Purchaser provides notice to such Facility Party that such amounts are past due, the Purchaser shall charge, and such Facility Party shall pay, an amount equal to (x) such unpaid amount due from such Facility Party to the Purchaser during the period from (and including) the due date thereof to (but not including) the date payment is received by the Purchaser in full, times (y) a rate per annum equal to the sum of (i) the Prime Rate, plus (ii) 2% per annum, computed on the basis of a 360 day year, and for actual days elapsed, which amounts shall be payable on demand and, if no prior demand is made, on the last Business Day of each calendar month.
		

		
			Section 3.3      Withholding of Taxes.
		

		
			(a)        Each Facility Party represents and warrants to the Purchaser that all payments by such Facility Party hereunder and by the Obligors in respect of the Purchased Receivables sold by such Seller will be paid free and clear of and (except to the extent required by Law) without any deduction or withholding on account of any Tax imposed, levied, collected, withheld or assessed by or within the United States of America, any political subdivisions in or of the United States of America, or any foreign country or other jurisdiction, excluding any Tax upon or measured by the net income of the Purchaser.
		

		
			(b)        If notwithstanding each Facility Party’s representation and warranty under this Section, any Facility Party or any Obligor is required by Law to make any deduction or withholding on account of any such Tax from any sum paid or payable by such Facility Party or such Obligor to the Purchaser hereunder or under any Purchased Receivable:
		

		
			(i)         such Facility Party shall notify the Purchaser of any such requirement as soon as such Facility Party becomes aware of it;
		

		
			
		

		
			

		 

		

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			(ii)       such Facility Party shall pay, for itself and on behalf of the applicable Obligor, any such Tax before the date on which penalties attach thereto, such payment to be made (if the liability to pay is imposed on such Facility Party or such Obligor) for its or their own account or (if that liability is imposed on the Purchaser on behalf of and in the name of the Purchaser) for the Purchaser’s account;
		

		
			(iii)      the sum payable by such Facility Party for itself or on behalf of any Obligor in respect of which the relevant deduction, withholding or payment is required shall be increased to the extent necessary to ensure that, after the making of that deduction, withholding or payment, the Purchaser receives on the due date and retains (free from any liability in respect of any such deduction, withholding or payment) a net sum equal to what it would have received and so retained, had no such deduction, withholding or payment been required or made; and
		

		
			(iv)       within thirty (30) days after payment of any sum from which it is required by law to make any deductions or withholding for the Purchaser’s account and within thirty (30) days after the due date of payment of any Tax which it is required by this Section to pay, such Facility Party shall deliver to the Purchaser any original vouchers or receipts, or certified copies of such vouchers or receipts evidencing payment of such withholding Tax and any other documents or information relating to such payments received by such Facility Party from a Governmental Authority in the country levying such withholding Taxes.
		

		
			SECTION 4.   NATURE OF FACILITY.
		

		
			Section 4.1      True Sale.
		

		
			(a)        The parties hereto agree that each transfer of each Purchased Receivable under this Agreement is intended to be an absolute and irrevocable transfer of such Purchased Receivable constituting a “true sale” thereof for bankruptcy law purposes, without recourse by the Purchaser to any Facility Party for any non-payment of such Purchased Receivable resulting solely from an Insolvency Event of the applicable Obligor or the financial inability of the Obligor to pay such Receivable on the Maturity Date thereof.
		

		
			(b)        Each Seller expressly waives any continuing right which it may have in and to legal or beneficial ownership of each Purchased Receivable and confirms that the Purchaser is the sole Person entitled to legal and beneficial ownership of each Purchased Receivable and that such Seller’s only rights under this Agreement shall be to enforce the terms of this Agreement against the Purchaser without any right of recourse against the Purchased Receivables themselves.
		

		
			(c)        Against the possibility that, contrary to the mutual intent of the parties, the purchase of any Receivable is not characterized as a sale by any applicable court, each Seller hereby grants to the Purchaser a security interest in all of the Purchased Receivables sold by such Seller to secure the payment and performance of such Seller’s
		

		
			
		

		
			

		 

		

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			payment and performance obligations hereunder and under each other Facility Document.  The grant of this security interest is a supplemental protection to the Purchaser and is not meant to negate or affect in any way the intended sale of the Receivables by such Seller to the Purchaser.
		

		
			Section 4.2      Retained Obligations.
		

		
			(a)        Notwithstanding anything herein to the contrary, each Seller hereby acknowledges and agrees that the Purchaser shall have no responsibility for, or have any liability with respect to, the performance of any Contract, and neither shall the Purchaser have any obligation to intervene in any Commercial Dispute arising out of the performance of any Contract.  All obligations of each Seller as seller of the Goods and services under each Contract, including all representations and warranty obligations, all servicing obligations, all maintenance obligations, and all delivery, transport and insurance obligations, shall be retained by such Seller (the “Retained Obligations”).
		

		
			(b)        Any claim which any Seller may have against any Obligor or any other Person, and/or the failure of an Obligor to fulfill its obligations under the applicable Contract, shall not affect the obligations of such Seller to perform its obligations and make payments hereunder, and shall not be used as a defense or as set-off, counterclaim or cross-complaint as against the performance or payment of any of its obligations.
		

		
			SECTION 5.   SERVICING AND SETTLEMENT.
		

		
			Section 5.1      Servicing.
		

		
			(a)        Each Seller agrees to service and administer the Purchased Receivables sold by it as agent and trustee for the Purchaser and agrees to devote to the servicing of the Purchased Receivables at least the same amount of time and attention, to exercise at least the same level of skill, care and diligence in such servicing, and to use its commercially reasonable efforts to collect each Purchased Receivable, in each case, as if such Seller were servicing, administering and/or collecting, as the case may be, Receivables legally and beneficially owned by it.
		

		
			(b)        Each Seller shall cooperate with the Purchaser (at such Seller’s expense) in taking any and all commercially reasonable actions requested by the Purchaser in collecting all amounts owed by the applicable Obligor with respect to each Purchased Receivable.
		

		
			(c)        Each Seller shall perform the obligations under this Section 5 in partial consideration for the Purchase Price paid hereunder with respect to each Purchased Receivable sold by such Seller.
		

		
			Section 5.2      Notice to Purchaser.  Each Seller shall promptly upon becoming aware thereof, notify the Purchaser in the event that all or any part of any Purchased Receivable is not paid in full within seven (7) Business Days following the Maturity Date thereof.
		

		
			Section 5.3      Inspection.  Each Seller shall:
		

		
			
		

		
			

		 

		

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			(a)        at any time reasonably convenient to such Seller during regular business hours and upon reasonable prior notice, permit the Purchaser or any of its agents or representatives:
		

		
			(i)         to examine and make copies of and abstracts from such Seller’s Sales Records and the Invoices in respect of Purchased Receivables at any time and permit the Purchaser to take such copies and extracts from the Sales Records and to provide the Purchaser with copies or originals (as required by the Purchaser) of the Invoices relating to Purchased Receivables as it may require and generally allow the Purchaser (at the Purchaser’s expense) to review, check and audit such Seller’s credit control procedures, and
		

		
			(ii)       to visit the offices and properties of such Seller for the purpose of examining such records and to discuss matters relating to Purchased Receivables or such Seller’s performance hereunder with any of the officers or employees of such Seller having knowledge of such matters; and
		

		
			(b)        without limiting the provisions of clause (a), from time to time on request of the Purchaser and upon reasonable prior notice, permit certified public accountants or other auditors acceptable to the Purchaser to conduct, at the Purchaser’s expense, a review of such Seller’s books and records to the extent related to the Purchased Receivables.
		

		
			(c)        Notwithstanding any provisions of this Section 5.3 or any other provision of this Agreement to the contrary, each Seller shall only be liable for the costs and expenses related to (x) an inspection of the type described in Section 5.3(a)(i) once during each calendar year and (y) an audit of the type described in Section 5.3(a)(ii) if a Termination Event has occurred and is continuing.
		

		
			Section 5.4      Seller’s Accounts.  Each Seller covenants and agrees (i) to direct each Obligor to pay all amounts owing under such Purchased Receivables only to the applicable Seller’s Account, (ii) not to change such payment instructions while any Purchased Receivable remains outstanding other than to instruct the applicable Obligor to pay all amounts owing under such Purchased Receivable to the applicable Seller’s Account, (iii) to take any and all other reasonable actions, including actions reasonably requested by the Purchaser, to ensure that (A) all amounts owing under the Purchased Receivables will be deposited exclusively to the applicable Seller’s Account or directly to the Settlement Account and (B) no amounts paid to such Seller by an obligor other than an Obligor shall be deposited into the Seller’s Account of such Seller and (iv) to hold in trust as the Purchaser’s exclusive property and safeguard for the benefit of the Purchaser all Collections and other amounts remitted or paid directly to such Seller (or any of its Affiliates) in respect of Purchased Receivables for prompt deposit into the Settlement Account in the manner set forth in Section 5.9 below.  Each Seller hereby grants to the Purchaser a security interest in the Seller’s Account of such Seller as additional collateral to secure the payment and performance of such Seller’s obligations to the Purchaser hereunder and under each of the other Facility Documents or as may be determined in connection therewith by applicable Law.  Prior to the occurrence of any Termination Event, each Seller shall be permitted to make withdrawals and distributions from such Seller’s Seller’s Account.  After the occurrence
		

		
			
		

		
			

		 

		

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			of any Termination Event, the Purchaser will be authorized to take exclusive control of each Seller’s Account and, upon taking exclusive control, will have exclusive authority to make withdrawals and distributions from each Seller’s Account until the Final Collection Date subject to Section 5.10.  For the avoidance of doubt, any liens on any amounts transferred or withdrawn from any Seller’s Account with respect to Collections on non-Purchased Receivables shall be automatically terminated and released concurrently with such transfer or withdrawal.
		

		
			Section 5.5      Settlement.  Each Seller shall (i) transfer all Collections received by such Seller with respect to the Purchased Receivables by wire transfer (or such other means as is acceptable to the Purchaser) to the Settlement Account no later than the Thursday of the week that immediately follows the week in which such Collections are received (each such Thursday, a “Settlement Date”, unless such Thursday is not a Business Day, in which case, the Settlement Date shall be the next Business Day thereafter) and (ii) on each Settlement Date, transfer the Purchase Fee and the Transaction Fee for each Purchased Receivable the Fee Due Date of which is such Settlement Date (regardless of whether any or all Collections with respect to any such Purchased Receivable have been received and the timing of such receipt) to the Settlement Account; provided, no Collections shall be deemed received by the Purchaser for purposes of this Agreement until funds are credited to the Settlement Account as immediately available funds or otherwise actually received by the Purchaser.
		

		
			Section 5.6     Settlement Report.  On each Settlement Date, concurrently with the transfer to the Settlement Account of any Collections in connection with any Purchased Receivable, each Seller shall provide to the Purchaser a settlement report setting forth in reasonable detail which Purchased Receivables sold by such Seller have been paid and in what amounts, and which shall otherwise be in form and substance satisfactory to the Purchaser. Each Seller shall submit such settlement report via the BOW System; provided that, and notwithstanding anything herein to the contrary, (i) until the BOW System is first made available to the Sellers (which shall be at the Purchaser’s sole discretion) and (ii) thereafter, if the BOW System is not operational, is otherwise offline or if the Purchaser has, in its discretion, instructed each Seller that the BOW System is no longer available for use, then such Seller shall deliver a written settlement report to the Purchaser, and this Agreement shall be construed and interpreted accordingly, mutatis mutandis.
		

		
			Section 5.7      Termination of Servicing.
		

		
			(a)        Upon the occurrence of a Termination Event, the Purchaser may, in its discretion, terminate the appointment of each Seller or any Seller as its servicer and agent for the servicing, administering and collecting of the Purchased Receivables (which termination shall be automatic and immediate if such Seller is subject to an Insolvency Event), and, upon such termination, (x) the Purchaser may notify and instruct each Obligor to make all payments on account of each Purchased Receivable sold by such Seller to an account designated by the Purchaser, and (y) take any lawful action to collect any Purchased Receivable sold by such Seller directly from the respective Obligor.
		

		
			(b)        Upon termination of any Seller as servicer and until the Final Collection Date:
		

		
			
		

		
			

		 

		

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			(i)         such Seller shall not interfere with the servicing or collection of any Purchased Receivable;
		

		
			(ii)       such Seller shall not attempt to receive payment, nor itself make collection, from any Obligor in respect of any Purchased Receivables;
		

		
			(iii)      such Seller shall provide such reasonably requested information as to assist the Purchaser to recover and enforce payment of any or all such Purchased Receivables; and
		

		
			(iv)       such Seller shall comply (at such Seller’s expense) with any reasonable directions, orders and instructions (including any procedures for the administration and commencement and continuation of legal or other proceedings against each applicable Obligor to enforce payment of the Purchased Receivables thereof) given by the Purchaser to procure the ordinary course collection of any Purchased Receivables as directed by the Purchaser, including, at the request of the Purchaser, joining in and being a party to any legal or other action which the Purchaser has taken or wishes to take against the applicable Obligor with the Purchaser being entitled to full control of such action.
		

		
			Section 5.8      Late Payment Amount.  In the event that any Seller shall fail to transfer to the Settlement Account any Collections received by such Seller with respect to the Purchased Receivables on or before the Settlement Date applicable thereto, then such Seller shall pay to the Purchaser a late payment fee for the period (from and including) such Settlement Date to (but not including) the date such payment is made by such Seller to the Settlement Account in an amount equal to (x) the amount of such Collections, times (y) (i) the Applicable Margin, plus (ii) the Applicable Index Rate (calculated by reference to such calculation periods as the Purchaser may select and notify to such Seller), computed on the basis of a 360 day year, and for actual days elapsed, and which shall be payable on demand, or if no demand is made, on the date such payment is made by such Seller to the Settlement Account.
		

		
			Section 5.9      Amounts Held In Trust.  Each Seller covenants and agrees to deposit in the applicable Seller’s Account all Collections and other amounts received by any Seller (or any of its Affiliates) with respect to Purchased Receivables without adjustment, setoff or deduction of any kind or nature within two Business Days of receipt.  Until remitted to the applicable Seller’s Account, such Seller will hold such funds in trust as the Purchaser’s exclusive property and safeguard such funds for the benefit of the Purchaser.  No Seller shall, directly or indirectly, utilize such funds for its own purposes, and no Seller shall have any right to pledge such funds as collateral for any obligation of such Seller or any other Person.
		

		
			Section 5.10    Misdirected Payments. If, prior to the taking of exclusive control of the Seller’s Accounts by the Purchaser pursuant to Section 5.4, any Seller receives any payment into its Seller’s Account that does not represent a Collection on a Purchased Receivable, such Seller shall promptly remove such payment from such Seller’s Account. After the Purchaser has taken exclusive control of the Seller’s Accounts pursuant to Section 5.4, the Purchaser will return such amounts received into a Seller’s Account to the applicable Seller upon receipt of satisfactory evidence that such amounts do not constitute Collections on Purchased Receivables.
		

		
			
		

		
			

		 

		

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			SECTION 6.   CONDITIONS PRECEDENT.
		

		
			Section 6.1      Effective Date; Initial Purchase Date.  The occurrence of the Effective Date is subject to the receipt by the Purchaser of an executed counterpart of this Agreement.  Subject to Section 2.3, the initial purchase of any Receivable pursuant to this Agreement on a Purchase Date (the “Initial Purchase Date”) is subject to the satisfaction of the following conditions, as determined by the Purchaser in its sole discretion and, as to any agreement, document or instrument specified below, each in form and substance satisfactory to the Purchaser in its sole discretion:
		

		
			(a)       The Purchaser shall have received each of the following:
		

		
			(i)         An originally executed certificate from the secretary or assistant secretary of each Seller and the Parent, together with all applicable attachments, certifying as to the following: (A) attached thereto is a copy of each organizational document of such Person and, to the extent applicable, certified as of a recent date by the appropriate governmental official, each dated the Initial Purchase Date or a recent date prior thereto; (B) set forth therein are the signature and incumbency of the officers or other authorized representatives of such Person executing the Facility Documents; and (C) if necessary, attached thereto are copies of resolutions of the board of directors (or other governing body) of such Person approving and authorizing the execution, delivery and performance of this Agreement and the other Facility Documents, certified as of the Initial Purchase Date or a recent date prior thereto as being in full force and effect without modification or amendment.
		

		
			(ii)       A good standing certificate from the applicable Governmental Authority of each Seller’s and the Parent’s jurisdiction of organization, dated a recent date prior to the Initial Purchase Date.
		

		
			(iii)      Opinions of counsel to each Seller and the Parent with respect to no conflict with organizational documents, no conflict with laws, no conflict with material agreements and true sale matters.
		

		
			(iv)       Lien search reports with respect to each Seller, and releases of any Adverse Claim on the Receivables shown in such reports.
		

		
			(v)        Evidence of filing of such UCC financing statements or other filings as are required hereunder.
		

		
			(vii)     Evidence that the applicable Seller has delivered a notice of assignment to the Metropolitan Transportation Authority (MTA, NY) duly executed by such Seller with respect to the Receivables to be included in the first Purchase Request hereunder and which instructs such Obligor to make payments on such Receivables directly to the applicable Seller’s Account, which evidence shall include, without limitation, a copy of such notice and the contact information (including the name, title, address and phone number) of the individuals to whom such notice was delivered.
		

		
			
		

		
			

		 

		

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			Section 6.2      Each Purchase Date.  Subject to Section 2.3, the Purchaser’s purchase of any Receivable on a Purchase Date (including the Initial Purchase Date) is subject to the satisfaction of the following conditions, as determined by the Purchaser in its sole discretion:
		

		
			(a)        The Purchaser shall have received a fully executed and completed Purchase Request as described in Section 2.1 hereto no later than 2:00 pm (Pacific Standard Time) three (3) Business Days prior to such Purchase Date.
		

		
			(b)        After giving effect to such purchase, the Total Outstanding Amount as of such date will not exceed the Facility Amount.
		

		
			(c)        After giving effect to such purchase, the Total Outstanding Amount of all Purchased Receivables of any Obligor will not exceed the applicable Obligor Sublimit.
		

		
			(d)        The aggregate Purchase Price for all Receivables to be sold by any Seller to the Purchaser on such Purchase Date shall not be less than $1,000,000.
		

		
			(e)        Each Receivable to be sold by any Seller to the Purchaser on such Purchase Date is an Eligible Receivable.
		

		
			(f)        The representations and warranties made by each Facility Party in Section 7 are true and correct in all material respects as of such Purchase Date (except for those representations and warranties that are conditioned by materiality, which shall be true and correct in all respects) on and as of that Purchase Date to the same extent as though made on and as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects (except for those representations and warranties that are conditioned by materiality, which shall have been true and correct in all respects) on and as of such earlier date.
		

		
			SECTION 7.   REPRESENTATIONS AND WARRANTIES.
		

		
			Section 7.1      Facility Parties.  Each Facility Party hereby makes the following representations and warranties for the benefit of the Purchaser as of the Effective Date and on each Purchase Date:
		

		
			(a)        Such Facility Party is duly organized, validly existing and, to the extent applicable under the Laws of its jurisdiction of organization, in good standing under the Laws of its jurisdiction of organization and has all organizational powers and all material governmental licenses, authorizations, consents and approvals required to carry on its business as now conducted, except to the extent that failure to comply with the foregoing statements would not reasonably be expected to materially adversely affect its ability to perform its obligations hereunder or under the other Facility Documents.
		

		
			(b)        If such Facility Party is a Seller, such Seller has the requisite power to enter into and deliver this Agreement and the other Facility Documents and to assign and sell the Receivables being sold by it on the applicable Purchase Date in the manner herein contemplated, and it has taken all necessary corporate or other action required to
		

		
			
		

		
			

		 

		

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			authorize the execution, delivery and performance of this Agreement, the other Facility Documents and the assignment and sale of such Receivables.
		

		
			(c)        This Agreement, the other Facility Documents and the sale, assignment and transfer of the Purchased Receivables hereunder constitutes the legal, valid and binding obligations of such Facility Party, enforceable in accordance with their terms, subject to bankruptcy, insolvency, reorganization, moratorium and other Laws of general application affecting the rights and remedies of creditors and general principles of equity, regardless of whether enforcement is sought in proceedings in equity or at law, and shall not be in conflict with, result in a breach of or, with notice or lapse of time or both, constitute a default under, any material indenture, agreement or other instrument, or result in the creation or imposition of any Adverse Claim upon any Purchased Receivable.
		

		
			(d)        All written data, materials and information provided by it to the Purchaser in connection herewith (including the UCC Information), and with respect to each Contract, each Receivable being sold by it hereunder, each Obligor, the relationship between it and each Obligor, and each Obligor’s payment history (including timeliness of payments), is, to the knowledge of such Facility Party, true and correct in all material respects.  If such Facility Party is a Seller, upon the filing of a UCC financing statement in the jurisdiction of organization of such Seller set forth in the UCC Information, listing such Seller, as debtor/seller, and the Purchaser, as secured party/buyer, and covering Purchased Receivables from time to time purchased hereunder, the Purchaser shall have a first priority perfected security interest (as understood under the UCC) in each such Purchased Receivable sold by such Seller.
		

		
			(e)        Neither the execution nor the delivery of this Agreement, the other Facility Documents or any of the other documents related hereto or thereto, nor the performance of or compliance with the terms and provisions hereof or thereof, will, in any material respect, conflict with or result in a material breach of (i) any Laws, (ii) any other agreement or instrument binding upon such Facility Party or any of its properties (which conflict or breach, in the case of clause (i) or (ii), would reasonably be expected to have a material adverse effect on such Facility Party’s ability to perform its obligations under any Facility Document), or (iii) any provision of such Facility Party’s organizational documents.
		

		
			(f)        No authorization, consent or approval or other action by, and no notice to or filing (other than the UCC financing statements required to be filed hereunder) with, any Governmental Authority is required to be obtained or made by such Facility Party for the due execution, delivery and performance by it of this Agreement or any other Facility Document.
		

		
			(g)        Such Facility Party has implemented and maintains in effect policies and procedures designed to ensure compliance by such Facility Party, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws, applicable AML Laws and applicable Sanctions.
		

		
			
		

		
			

		 

		

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			(h)        None of (i) such Facility Party, any of its Subsidiaries or any of their respective directors or officers, or, to the knowledge of such Facility Party, any of their respective employees or affiliates, or (ii) to the knowledge of such Facility Party, any agent of such Facility Party or any Subsidiary of such Facility Party that will act in any capacity in connection with or benefit from the transactions contemplated hereby, (A) is a Sanctioned Person, or (B) is in violation of any AML Laws, Anti-Corruption Laws, Anti-Terrorism Laws or Sanctions.
		

		
			(i)         No transaction, or transfer of purchase proceeds, contemplated by this Agreement (A) relates, directly or indirectly, to any activities or business of or with a Sanctioned Person or with or in a Sanctioned Country; or (B) will cause a violation of any AML Laws, Anti-Corruption Laws, Anti-Terrorism Laws or applicable Sanctions by any Person participating in the transactions contemplated by this Agreement.
		

		
			(j)         Neither such Facility Party nor any of its Subsidiaries, has engaged in or intends to engage in any dealings or transactions with, or for the benefit of, any Sanctioned Person or with or in any Sanctioned Country.
		

		
			(k)        All required permits, authorizations and licenses, including foreign exchange authorizations, import and export licenses, and all necessary governmental authorizations for payment by the applicable Obligor of the Purchased Receivables in Dollars, necessary for or related to the Purchased Receivables have been obtained on or before the applicable Purchase Date thereof.
		

		
			(l)         No Termination Event has occurred and is continuing.
		

		
			(m)       If such Facility Party is a Seller, each Receivable to be sold by such Seller to the Purchaser on a Purchase Date is an Eligible Receivable as of such Purchase Date.
		

		
			(n)        The Purchaser has “control” (as defined in § 9-104 of the UCC) over each Seller’s Account.
		

		
			(o)        There is no pending or, to its knowledge, threatened action, proceeding, investigation or injunction, writ or restraining order affecting such Facility Party or any of its Subsidiaries before any court, Governmental Authority or arbitrator, which could reasonably be expected to have a Material Adverse Effect.
		

		
			(p)        No effective financing statement or other instrument similar in effect covering any Purchased Receivable is on file in any recording office, except those filed in favor of the Purchaser relating to this Agreement, and no competing notice or notice inconsistent with the transactions contemplated in this Agreement remains in effect.  If such Facility Party is a Seller, such Seller has not pledged or granted any security interest in any Purchased Receivable to any person except pursuant to this Agreement.
		

		
			(q)        Such Facility Party is in compliance with all covenants and other terms and conditions contained in this Agreement.
		

		
			SECTION 8.   COVENANTS.
		

		
			
		

		
			

		 

		

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			Section 8.1      Facility Parties.  At all times prior to the Final Collection Date, each Facility Party agrees to perform each of the following covenants:
		

		
			(a)        Existence, Etc.  Such Facility Party shall take all necessary steps and actions to preserve its organizational existence and comply in all material respects with all Laws applicable to such Facility Party in the operation of its business, except to the extent the failure to so comply could not reasonably be expected to materially adversely affect its ability to perform its obligations hereunder.
		

		
			(b)        Information, Etc.  If such Facility Party is a Seller, such Seller will provide the Purchaser, promptly after request thereby, with such information, reports, documents, books and records related to a Purchased Receivable as the Purchaser may reasonably request, including (a) a copy of the purchase order or sales order and Invoices relating to each Purchased Receivable; (b) a copy of the bill of lading and any other shipping document relating to the Purchased Receivable; and (c) all billings, statements, correspondence and memoranda directed to the customer in relation to each Purchased Receivable.
		

		
			(c)        Seller’s Books and Records.  If such Facility Party is a Seller, such Seller shall maintain its books and records so that such records that refer to Purchased Receivables sold hereunder shall indicate clearly that such Seller’s right, title and interest in such Receivables have been sold to the Purchaser.
		

		
			(d)        Contracts.  If such Facility Party is a Seller, such Seller shall duly perform and comply in all material respects with all terms, provisions, and obligations under each Contract and refrain from taking any action or omitting to take any action thereunder which, individually or in the aggregate, could reasonably be expected to materially prejudice or limit the Purchaser’s rights to payment with respect to the Purchased Receivables.  If such Facility Party is a Seller, such shall not modify the terms of any Contract in any manner which could adversely affect the rights of the Purchaser as the owner of the Purchased Receivables or would otherwise reduce the amount due thereunder or the change the Maturity Date thereof.
		

		
			(e)        Financial Reporting.  The Parent shall deliver to the Purchaser (a) as soon as available and in any event forty-five (45) days after the end of each fiscal quarter of the Parent, a copy of the quarterly report of such quarter for the Parent, containing financial statements for such quarter, such financial statements to contain at least a balance sheet, a statement of earnings, a statement of cash flows and a statement of retained earnings, and (b) as soon as available and in any event ninety (90) days after the end of each financial year of the Parent, a copy of the annual report of such year for the Parent, containing financial statements for such year, such financial statements to contain at least a balance sheet, a statement of earnings, a statement of cash flows and a statement of retained earnings; provided, if the Parent files its consolidated financial statements with the Securities and Exchange Commission, the Parent shall be deemed to be in compliance with this clause and shall not be required to deliver the foregoing financial statements to the Purchaser.
		

		
			
		

		
			

		 

		

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			(f)        Notice of Events, Etc.  If such Facility Party is a Seller, such Seller shall promptly notify the Purchaser in writing of, to the knowledge of such Seller, (a) any material event or occurrence, including any material breach or default by such Seller or by any Obligor of any term or provision of any Contract with respect to any Purchased Receivable, any Commercial Dispute, or any governmental action affecting the ability of it or such Obligor to perform its obligations under the applicable Contract to which it is a party; or (b) any change to the UCC Information at least thirty (30) days prior to such change.
		

		
			(g)        Required Disclosures.  If such Facility Party is a Seller, such Seller shall make all disclosures required by any applicable Law with respect to the sale of the Purchased Receivables hereunder, and account for such sale in accordance with GAAP.
		

		
			(h)        Adverse Claims, Etc.  If such Facility Party is a Seller, such Seller shall not create or permit to exist any Adverse Claim over all or any of such Seller’s or the Purchaser’s rights, title and interest in or to any Purchased Receivable or any Contract under which any Purchased Receivable arises, or otherwise sell, assign or otherwise transfer any right, title and interest in or to the Purchased Receivables or any Contract under which any Purchased Receivable arises except as specifically provided for herein.
		

		
			(i)         No Modifications, Etc.  If such Facility Party is a Seller, such Seller shall not extend, amend or otherwise modify the terms of any Purchased Receivable, including with respect to the Maturity Date thereof, or grant any Dilution with respect to such Purchased Receivable, in each case, without the prior written consent of the Purchaser.
		

		
			(j)         Anti-Corruption Laws, AML Laws, Anti-Terrorism Laws and Sanctions.  Such Facility Party will maintain in effect and enforce policies and procedures designed to ensure compliance by such Facility Party and its Subsidiaries and their respective directors, officers, employees and agents with applicable Anti-Corruption Laws, AML Laws, Anti-Terrorism Laws and Sanctions.  Such Facility Party shall not effect the sale of any Receivable, and the proceeds of purchase of any Receivable shall not, directly or indirectly, be used, or lent, contributed or otherwise made available to any Subsidiary, joint venture partner or other Person (A) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws or AML Laws, (B) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country (including, but not limited to, transshipment or transit through a Sanctioned Country), or involving any goods originating in or with a Sanctioned Person or Sanctioned Country, or (C)  in any manner that would result in the violation of any Sanctions by any Person (including any Person participating in the transactions contemplated hereunder, whether as underwriter, advisor, lender, issuing bank, investor or otherwise).
		

		
			(k)        Further Assurances.  Such Facility Party shall, at its expense, promptly execute and deliver all further instruments and documents, and take all further action, that the Purchaser may reasonably request in order to perfect, protect or more fully evidence or implement the transactions contemplated hereby, or to enable the Purchaser to exercise
		

		
			
		

		
			

		 

		

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			or enforce any of its rights with respect to the Purchased Receivables.  Without limiting the foregoing, such Seller hereby authorizes the Purchaser to file UCC financing statements describing the Purchased Receivables, together with any amendments relating thereto.
		

		
			SECTION 9.   REPURCHASE; DEEMED COLLECTIONS.
		

		
			Section 9.1      Repurchase.
		

		
			(a)        Upon the occurrence of a Repurchase Event with respect to any Purchased Receivable, the Purchaser may, upon written notice to the applicable Seller (a “Repurchase Notice”), require such Seller to repurchase such Purchased Receivable for an amount equal to the Repurchase Price of such Purchased Receivable.
		

		
			(b)        Upon delivery of a Repurchase Notice, (i) the Repurchase Price together with all other amounts under this Agreement and the other Facility Documents with respect to the applicable Purchased Receivable shall become due and payable immediately, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by each Seller; and (ii) the applicable Seller shall pay to the Purchaser such Repurchase Price on the date specified in such notice (the “Repurchase Date”), which date shall be no sooner than three (3) Business Days following delivery of such Repurchase Notice.
		

		
			(c)        Upon receipt of the Repurchase Price with respect to any Purchased Receivable, the Purchaser shall (at the cost and expense of the applicable Seller) execute such documents as may be necessary to re‐assign, without recourse, representation or warranty, and at no further cost to the Purchaser, such Purchased Receivable to the applicable Seller.
		

		
			Section 9.2      Additional Compensation.  Without limiting any Seller’s obligation to repurchase any Purchased Receivable in accordance with Section 9.1, if any Purchased Receivable is not paid in full on or before the Consolidated Due Date thereof on account of any Commercial Dispute with respect thereto, the applicable Seller shall pay to the Purchaser as additional compensation, on the earliest to occur of (a) the date of payment in full of such Purchased Receivable by the applicable Obligor, (b) the date of payment of the Repurchase Price of such Purchased Receivable, and (c) the date that is sixty (60) days after such Consolidated Due Date, for the period from (and including) the Business Day next occurring after such Consolidated Due Date to (but not including) the earliest to occur of the foregoing clauses (a), (b) and (c), an amount equal to (x) the then outstanding amount of such Purchased Receivable as of such date of payment, times (y) (i) the Applicable Margin, plus (ii) the Applicable Index Rate (calculated by reference to such calculation periods as the Purchaser may select and notify to such Seller) plus (iii) 2.50%, computed on the basis of a 360 day year, and for actual days elapsed.
		

		
			Section 9.3      Deemed Collections.
		

		
			(a)        In the event that any Seller breaches any covenant in this Agreement in a manner which materially and adversely affects the collectability of a Purchased
		

		
			
		

		
			

		 

		

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			Receivable (and for the avoidance of doubt, any amendment, modification, waiver or supplement with respect to any payment term of such Purchased Receivable, including the amount or contractual due date thereof, shall be deemed to materially and adversely affect the collectability thereof) and such Purchased Receivable has not been collected on the Consolidated Due Date thereof, the Purchaser may, upon written notice to such Seller (a “Deemed Collection Notice”), require such Seller to pay to the Purchaser the applicable Deemed Collection Amount.
		

		
			(b)        Upon delivery of a Deemed Collection Notice, (i) the Deemed Collection Amount together with all other amounts under this Agreement with respect to the applicable Purchased Receivable shall become due and payable immediately, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by each Seller; and (ii) the applicable Seller shall pay to the Purchaser such Deemed Collection Amount on the date specified in such notice (the “Deemed Collection Date”).
		

		
			SECTION 10. PARENT OBLIGATIONS; CONFIRMATION; TERMINATION OF PARENT OBLIGATIONS.
		

		
			Section 10.1    Parent Obligations.
		

		
			(a)        For value received by it and the Sellers, the Parent hereby absolutely, unconditionally and irrevocably agrees to be jointly and severally obligated with the Sellers hereunder and undertakes (as primary obligor and not merely as surety) for the benefit of the Purchaser the due and punctual performance and observance by each Seller (and any of its successors and assigns in such capacity) of all its covenants, agreements, undertakings, indemnities and other obligations or liabilities (including, in each case, those related to any breach by any Seller of its representations, warranties and covenants), whether monetary or non-monetary and regardless of the capacity in which incurred (including all of each Seller’s payment, repurchase, indemnity or similar obligations), under this Agreement and the other Facility Documents (collectively, the “Parent Obligations”), irrespective of: (A) the validity, binding effect, legality, subordination, disaffirmance, enforceability or amendment, restatement, modification or supplement of, or waiver of compliance with, this Agreement, the other Facility Documents or any documents related hereto or thereto, (B) any change in the existence, formation or ownership of, or the bankruptcy or insolvency of, any Seller or any other Person, (C) any extension, renewal, settlement, compromise, exchange, waiver or release in respect of any Parent Obligation (or any collateral security therefor, including the property sold, contributed or any party to this Agreement or any other Facility Document), (D) the existence of any claim, set-off, counterclaim or other right that the Parent or any other Person may have against any Seller or any other Person, (E) any impossibility or impracticability of performance, illegality, force majeure, act of war or terrorism, any act of any Governmental Authority or any other circumstance or occurrence that might otherwise constitute a legal or equitable discharge or defense available to, or provides a discharge of, the Parent, (F) any Law affecting any term of any of the Parent Obligations or any Facility Document, or rights of the Purchaser with respect thereto or otherwise, (G) the failure by the Purchaser to take any steps to perfect
		

		
			
		

		
			

		 

		

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			and maintain perfected its interest in, or the impairment or release of, any Purchased Receivable or any collateral, (H) any failure to obtain any authorization or approval from or other action by or to notify or file with, any Governmental Authority required in connection with the performance of the Parent Obligations or otherwise or (I) any other circumstance which might otherwise constitute a defense available to, or a legal or equitable discharge of, the Parent, any surety or any guarantor (other than the defense of performance and/or payment in full of the Parent Obligations).
		

		
			(b)        The Parent’s obligations hereunder shall not be conditioned on the Purchaser or any other Person having first made any request of or demand upon or given any notice to any Seller or any other Person or having initiated any action or proceeding against any Seller or any other Person in respect thereof.  The Parent also hereby expressly waives any defenses based on any of the provisions set forth above and all defenses it may have as a guarantor or a surety generally or otherwise based upon suretyship, impairment of collateral or otherwise in connection with the Parent Obligations whether in equity or at law.   The Parent hereby also expressly waives diligence, presentment, demand, protest or notice of any kind whatsoever, as well as any requirement that the Purchaser exhaust any right to take any action against any Seller or any other Person (including the filing of any claims in the event of a receivership or bankruptcy of any of the foregoing), or with respect to any collateral or collateral security at any time securing any of the Parent Obligations, and hereby consents to any and all extensions of time of the due performance of any or all of the Parent Obligations.  The Parent agrees that it shall not exercise or assert any right which it may acquire by way of subrogation under this Agreement unless and until all Parent Obligations shall have been indefeasibly paid and performed in full.  For the sake of clarity, and without limiting the foregoing, it is expressly acknowledged and agreed that the Parent Obligations do not include the payment or guaranty of any amounts to the extent such amounts constitute recourse with respect to a Purchased Receivable resulting solely from an Insolvency Event of the applicable Obligor or the financial inability of the Obligor to pay such Purchased Receivable on the maturity date thereof.
		

		
			Section 10.2    Confirmation.  The Parent hereby confirms that the transactions contemplated by the Facility Documents have been arranged between the Sellers and the Purchaser with the Parent’s full knowledge and consent and any amendment, restatement, modification or supplement of, or waiver of compliance with, the Facility Documents in accordance with the terms thereof by any of the foregoing shall be deemed to be with the Parent’s full knowledge and consent.  The Parent hereby confirms that it is in the best interest of the Parent to execute this Agreement, inasmuch as the Parent (individually) and the Parent and its Subsidiaries (collectively) will derive substantial direct and indirect benefit from the transactions contemplated by this Agreement and the other Facility Documents.
		

		
			Section 10.3    Termination of Parent Obligations.
		

		
			(a)        The Parent’s obligations hereunder shall remain operative and continue in full force and effect until the Final Collection Date, subject to the terms of Section 2.2. To the fullest extent permitted by Law, no invalidity, irregularity or unenforceability by reason of any bankruptcy, insolvency, reorganization or other similar Law, or any other
		

		
			
		

		
			

		 

		

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			Law or order of any Governmental Authority thereof purporting to reduce, amend or otherwise affect the Parent Obligations shall impair, affect, or be a defense to or claim against the obligations of the Parent under this Agreement.
		

		
			(b)        The Parent’s obligations shall survive the insolvency of any Seller or any other Person and the commencement of any case or proceeding by or against any Seller or any other Person under any bankruptcy, insolvency, reorganization or other similar Law.  No automatic stay under any bankruptcy, insolvency, reorganization or other similar Law with respect to any Seller or any other Person shall postpone the obligations of the Parent under this Agreement.
		

		
			(c)        If at any time payment or other satisfaction of any of the Parent Obligations is rescinded or must otherwise be restored or returned upon the bankruptcy, insolvency, or reorganization of any Seller or otherwise, as applicable, the Parent’s obligations hereunder shall be reinstated, as the case may be, as though such payment had not been made or other satisfaction occurred, whether or not the Purchaser (or its respective assigns) is in possession of this Agreement.
		

		
			SECTION 11. MISCELLANEOUS.
		

		
			Section 11.1     Indemnity.  Each Facility Party agrees, jointly and severally, to indemnify, defend and save harmless the Purchaser (including each of its branches, affiliates, officers, directors, employees or other agents, the “Indemnified Party”), forthwith on demand, from and against any and all liabilities, obligations, losses, damages, penalties, claims, actions, judgments, suits, costs, expenses and disbursements of any kind or nature whatsoever (including the reasonable fees and disbursements of counsel for any Indemnified Party in connection with any investigative, administrative or judicial proceeding or hearing commenced or threatened by any Person, regardless of whether any such Indemnified Party shall be designated as a party or a potential party thereto, and any fees or expenses incurred by any Indemnified Party in enforcing this indemnity), whether direct, indirect, special or consequential and whether based on any federal, state or foreign Laws, on common law or equitable cause or on contract or otherwise, that may be imposed on, incurred by, or asserted against any Indemnified Party, in any manner relating to or arising out of or incurred in connection with this Agreement, the other Facility Documents, any Purchased Receivable or any of the transactions contemplated hereby or thereby, including with respect to any Retained Obligations (collectively, the “Indemnified Liabilities”); provided, no Facility Party shall have any obligation to any Indemnified Party hereunder with respect to (a) any Indemnified Liabilities to the extent such Indemnified Liabilities arise from the gross negligence or willful misconduct of that Indemnified Party, in each case, as determined by a final, non-appealable judgment of a court of competent jurisdiction, or (b) any non-payment of any Purchased Receivable resulting solely from an Insolvency Event of the applicable Obligor or the financial inability of the Obligor to pay such Purchased Receivable on the applicable Maturity Date.  Without prejudice to the survival of any other provision hereof, the terms of this Section 11.1 shall survive the termination of this Agreement and payment of all other amounts payable hereunder.
		

		
			Section 11.2    Duties and Taxes.  All stamp, documentary, registration or other like duties or Taxes (excluding Taxes upon or measured by the net income of the Purchaser),
		

		
			
		

		
			

		 

		

			18

		

		

		
			including Taxes and any penalties, additions, fines, surcharges or interest relating thereto, or any notarial fees which are imposed or chargeable on or in connection with this Agreement, any other Facility Document or any Purchased Receivable shall be paid by the Facility Parties, it being understood and agreed that the Purchaser shall be entitled but not obligated to pay any such duties or Taxes (regardless of whether they are its primary responsibility), and each Facility Party shall on demand, jointly and severally, indemnify the Purchaser against those duties or Taxes and against any costs and expenses so incurred by it in discharging them.
		

		
			Section 11.3    Expenses.  Each Facility Party agrees, jointly and severally, to pay promptly on demand (a) all actual documented and reasonable costs and expenses incurred by the Purchaser in connection with the negotiation, preparation and execution of the Facility Documents and any consents, amendments, waivers or other modifications thereto and the transactions contemplated thereby, including the reasonable and documented fees, expenses and disbursements of counsel to the Purchaser in connection therewith; and (b) all actual documented and reasonable costs and expenses, including reasonable and documented attorneys’ fees and costs of settlement, incurred by the Purchaser in enforcing any obligations of any Facility Party under any Facility Document or in collecting any payments due from any Facility Party hereunder or under the other Facility Documents or in connection with any refinancing or restructuring of the credit arrangements provided hereunder in the nature of a “work-out” or pursuant to any insolvency or bankruptcy cases or proceedings.
		

		
			Section 11.4    Setoff.  In addition to any rights now or hereafter granted under applicable Law and not by way of limitation of any such rights, the Purchaser is hereby authorized by each Facility Party at any time or from time to time, without notice to such Facility Party or to any other Person, any such notice being hereby expressly waived, to set off and to appropriate and to apply any and all deposits (general or special, including Indebtedness evidenced by certificates of deposit, whether matured or unmatured, but not including trust accounts) and any other indebtedness at any time held or owing by the Purchaser to or for the credit or the account of such Facility Party against and on account of the obligations and liabilities of such Facility Party to the Purchaser hereunder and under the other Facility Documents, including all claims of any nature or description arising out of or connected hereto or with any other Facility Document, regardless of whether (a) the Purchaser shall have made any demand hereunder or (b) any amounts due hereunder shall have become due and payable pursuant hereto and although such obligations and liabilities, or any of them, may be contingent or unmatured.
		

		
			Section 11.5    Notices.  All notices, requests and demands given or made under the Facility Documents shall be given or made in writing and unless otherwise stated shall be made by email, telefax or letter using the address as set forth below or such other address as the party may designate to the other party in accordance with the provisions of this Section 11.5.  All notices, requests and demands shall be deemed to have been duly given or made (a) if sent by e-mail, upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, return e-mail or other written acknowledgement); (b) if sent by telefax, when the confirmation showing the completed transmission has been received; provided, for each of the foregoing clauses (a) and (b), if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next Business Day for the recipient; and (c) if sent via a reputable international courier, when it has been left at the relevant address
		

		
			
		

		
			

		 

		

			19

		

		

		
			or five (5) Business Days after being delivered to such reputable international courier, in an envelope addressed to the applicable person at that address and to the attention of the person(s) set forth below.  Each party to this Agreement shall promptly inform each other party hereto of any changes in their respective addresses or facsimile numbers specified herein.
		

		
			 
		

		
			If to Cubic Corporation:
		

		
			Cubic Corporation
		

		
			9333 Balboa Ave, San Diego
		

		
			San Diego, CA 92123
		

		
			Attn: Rhys Williams
		

		
			Tel: 858-266-8294
		

		
			Email: Rhys.williams@cubic.com
		

		
			 
		

		
			If to Cubic Transportation Systems, Inc.:
		

		
			Cubic Transportation Systems, Inc.
		

		
			5650 Kearny Mesa Rd
		

		
			San Diego, CA 92111
		

		
			Attn: Rhys Williams
		

		
			Tel: 858-266-8294
		

		
			Email: Rhys.williams@cubic.com
		

		
			 
		

		
			If to any other Seller:
		

		
			 
		

		
			As provided in its respective Joinder Agreement.
		

		
			 
		

		
			If to Purchaser:
		

		
			Bank of the West
		

		
			4180 La Jolla Village Drive, Suite 405
		

		
			La Jolla, CA 92037
		

		
			Attn: Doug Lambell
		

		
			Tel: 858-352-005
		

		
			Email: Douglas.lambell@bankofthewest.com
		

		
			With a copy to :
		

		
			Bank of the West
		

		
			440 MacArthur Blvd, Suite 600
		

		
			Newport Beach, CA 92660
		

		
			Attn: Stephen Carew
		

		
			Tel: 949-797-1830
		

		
			Email: Stephen.carew@bankofthewest.com
		

		
			 
		

		
			
		

		
			

		 

		

			20

		

		

		
			A Purchase Request, any settlement report described in Section 5.6, and, in each case, any supporting documentation in connection therewith, such as copies of invoices, not submitted via the BOW System may be sent by a Seller by email attachment in portable document format (.pdf).
		

		
			Section 11.6    Certificates and Determinations.  Any certification or determination by the Purchaser of a rate or amount under any Facility Document shall be, absent manifest error, conclusive evidence of the matters to which it relates.
		

		
			Section 11.7    Assignments and Transfers.  The Purchaser may at any time assign, transfer or participate any of its rights under the Facility Documents to another purchaser or financial institution; provided, with respect to any assignment (but not, for the avoidance of doubt, in the case of any participation, for which neither notice to, nor the consent of, any party shall be required), the Purchaser shall notify each Facility Party and obtain each Facility Party’s written consent thereto, which consent shall not be (x) unreasonably withheld or delayed, and (y) required at any time a Termination Event has occurred and is continuing.  No Facility Party shall assign or otherwise transfer its rights, benefits or obligations under the Facility Documents without the prior written consent of the Purchaser.  Subject to the foregoing, this Agreement shall be binding on and shall inure to the benefit of each party hereto and its successors and assigns.
		

		
			Section 11.8    Waivers, Remedies Cumulative.  No failure to exercise, nor any delay in exercising, on the part of the Purchaser, any right or remedy under the Facility Documents shall operate as a waiver thereof, nor shall any single or partial exercise of any right or remedy prevent any further or other exercise thereof or the exercise of any other right or remedy.  The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies provided by Law.
		

		
			Section 11.9   Accounting Treatment.  Each Facility Party agrees and acknowledges that it is a sophisticated party in relation to this Agreement and that it has taken independent legal and accounting advice in relation to the accounting treatment to be applied to this Agreement.  Each Facility Party acknowledges and agrees that it has not relied on any representation of the Purchaser in this regard.
		

		
			Section 11.10  Third Party Rights.  No Person not a party to this Agreement shall be deemed a third party beneficiary hereof.
		

		
			Section 11.11  Counterparts.  This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement shall become effective when it shall have been executed by the Purchaser and when the Purchaser shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Agreement.
		

		
			
		

		
			

		 

		

			21

		

		

		
			Section 11.12  Entire Agreement.  This Agreement and the other Facility Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.
		

		
			Section 11.13  Amendments, Etc.  No amendment, modification, termination or waiver of any term or condition of any Facility Document shall be effective without the written concurrence of each Facility Party and the Purchaser.
		

		
			Section 11.14  Exclusion of Liability.  To the extent permitted by applicable Law, no Facility Party shall assert, and each Facility Party hereby waives, any claim against the Purchaser and its affiliates, members of the board of directors, employees, attorneys, agents or sub-agents, on any theory of liability, for special, indirect, consequential or punitive damages  (as opposed to direct or actual damages) (regardless of whether the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement) arising out of, in connection with, arising out of, as a result of, or in any way related to, this Agreement or any other Facility Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the transactions contemplated hereby or thereby, any purchase or the use of the proceeds thereof or any act or omission or event occurring in connection therewith, and each Facility Party hereby waives, releases and agrees not to sue upon any such claim or any such damages, regardless of whether accrued and regardless of whether known or suspected to exist in its favor.
		

		
			Section 11.15  Severability.  In case any provision in, or obligation under, any Facility Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.
		

		
			Section 11.16  Headings.  Section headings herein are included herein for convenience of reference only and shall not constitute a part hereof for any other purpose or be given any substantive effect.
		

		
			Section 11.17  Governing Law.  This Agreement and the other Facility Documents and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement or any other Facility Document (except, as to any other Facility Document, as expressly set forth therein) and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the laws of the State of New York.
		

		
			Section 11.18  Consent to Jurisdiction.  Each Facility Party irrevocably and unconditionally agrees that it will not commence any action, litigation or proceeding of any kind or description, whether in law or equity, whether in contract or in tort or otherwise, against the Purchaser in any way relating to this Agreement or any other Facility Document or the transactions relating hereto or thereto, in any forum other than the courts of the State of New York sitting in New York County, and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, and each of the parties hereto irrevocably and unconditionally submits to the jurisdiction of such courts and agrees that all claims in respect of any such action, litigation or proceeding may be heard and determined in
		

		
			
		

		
			

		 

		

			22

		

		

		
			such New York State court or, to the fullest extent permitted by applicable law, in such federal court.  Each of the parties hereto agrees that a final judgment in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Agreement or in any other Facility Document shall affect any right that the Purchaser may otherwise have to bring any action or proceeding relating to this Agreement or any other Facility Document against any Facility Party or its properties in the courts of any jurisdiction.  Each Facility Party irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement or any other Facility Document in any court referred to herein.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.  Each party hereto irrevocably consents to service of process in the manner provided for notices in Section 11.5.  Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by applicable law.
		

		
			Section 11.19  WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER FACILITY DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER FACILITY DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
		

		
			Section 11.20  Joint and Several Obligations.  The obligations of the Sellers hereunder are joint and several.  To the maximum extent permitted by Law, each Seller hereby waives any claim, right or remedy which such Seller now has or hereafter acquires against any other Seller that arises hereunder including, without limitation, any claim, remedy or right of subrogation, reimbursement, exoneration, contribution, indemnification, or participation in any claim, right or remedy of the Purchaser against any Seller or any of its property which the Purchaser now has or hereafter acquires, whether or not such claim, right or remedy arises in equity, under contract, by statute, under common law or otherwise.  In addition, each Seller hereby waives any right to proceed against the other Sellers, now or hereafter, for contribution, indemnity, reimbursement, and any other suretyship rights and claims, whether direct or indirect, liquidated or contingent, whether arising under express or implied contract or by operation of law, which any Seller may now have or hereafter have as against the other Seller with respect to the transactions contemplated by this Agreement.
		

		
			Section 11.21  Joinder of Additional Sellers.   At any time from the date hereof until the termination of this Agreement, with the written consent of the Purchaser in its sole and absolute
		

		
			
		

		
			

		 

		

			23

		

		

		
			discretion, one or more additional U.S. subsidiaries of the Parent (each, an “Additional Seller”), may join this Agreement as a Seller in all respects by delivering a Joinder Agreement to the Purchaser along with such other approvals, certificates, legal opinions and other documents as the Purchaser may request, in each case, in form and substance reasonably acceptable to the Purchaser. Upon receipt of such Joinder Agreement and such other documents, such Additional Seller shall become a Seller hereunder, subject to the rights, duties and obligations of a Seller in all respects.
		

		
			Section 11.22  USA Patriot Act.  The Purchaser hereby notifies each Facility Party that pursuant to the requirements of the USA PATRIOT Improvement and Reauthorization Act, Title III of Pub. L. 109-177 (signed into law March 9, 2009), as amended from time to time (the “PATRIOT Act”), it is required to obtain, verify, and record information that identifies such Facility Party, which information includes the name and address of such Facility Party and other information that will allow the Purchaser to identify such Facility Party in accordance with the PATRIOT Act.
		

		
			Section 11.23   Confidentiality.  The Purchaser shall hold all non-public information confidential regarding each Facility Party and its business, identified as such thereby and obtained by the Purchaser pursuant to the requirements hereof, in accordance with its customary procedures for handling confidential information of such nature, it being understood and agreed by each Facility Party that, in any event, the Purchaser (a) may make disclosures of such non-public information (i) to its Affiliates and to the Purchaser’s and its Affiliates’ respective employees, legal counsel, independent auditors and other experts or agents and advisors or to the Purchaser’s current or prospective funding sources and to other Persons authorized by the Purchaser to organize, present or disseminate such information in connection with disclosures otherwise made in accordance with this Section (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such information and instructed to keep such information confidential); (ii) to any actual or potential assignee, or transferee of any rights, benefits, interests and/or obligations under this Agreement or to any direct or indirect contractual counterparties (or the professional advisors thereto) in swap or derivative transactions related hereto (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such information and instructed to keep such information confidential), (iii) as required or requested by any regulatory authority purporting to have jurisdiction over the Purchaser or its Affiliates (including any self-regulatory authority); provided, unless prohibited by applicable Law or court order, the Purchaser shall make reasonable efforts to notify the applicable Facility Party of any request by such regulatory authority (other than any such request in connection with any examination of the financial condition or other routine examination of the Purchaser by such regulatory authority) for disclosure of any such non-public information prior to the actual disclosure thereof; (iv) to the extent required by order of any court, governmental agency or representative thereof or in any pending legal or administrative proceeding, or otherwise as required by applicable law or judicial process; provided, unless prohibited by applicable law or court order, the Purchaser shall make reasonable efforts to notify the applicable Facility Party of such required disclosure prior to the actual disclosure of such non-public information, (v) in connection with the exercise of any remedies hereunder or any action or proceeding relating to this Agreement or any other Facility Document or the enforcement of rights hereunder or thereunder, (vi) with the consent of the applicable Facility Party, (vii) to the extent such information (A) becomes publicly available
		

		
			
		

		
			

		 

		

			24

		

		

		
			other than as a result of a breach of this Section, (B) becomes available to the Purchaser or any of its Affiliates on a non-confidential basis from a source other than the applicable Facility Party unless the Purchaser or such Lender has knowledge that such source is subject to an obligation to such Facility Party to keep such information confidential, or (C) is independently developed by the Purchaser or (viii) to any service provider with whom the Purchaser contracts for the use of the BOW System and the Purchaser’s contractors and agents provided that such Persons agree to hold such information confidential pursuant to customary commercial terms; (b) may disclose the existence of this Agreement and the information about this Agreement to market data collectors and similar service providers to the lending industry (including for league table designation purposes) and to service providers to the Purchaser in connection with the administration and management of this Agreement and the other Facility Documents; and (c) may (at its own expense) place advertisements in financial and other newspapers and periodicals or on a home page or similar place for dissemination of information on the Internet or worldwide web as it may choose, and circulate similar promotional materials, in the form of a “tombstone” or otherwise describing the names of each Facility Party and the amount, type and closing date with respect to the transactions contemplated hereby.
		

		
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			25

		

		

		
			IN WITNESS WHEREOF, the parties have executed this Agreement by their undersigned, duly authorized officers on the date first above written:
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						SELLERS:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						CUBIC CORPORATION

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

			
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				

		
			 
		

		
			 
		

			
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				

		
			 
		

			
					
						 

					
					
						CUBIC TRANSPORTATION SYSTEMS, INC.

				

		
			 
		

			
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						PARENT:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						CUBIC CORPORATION

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

			
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				

		
			 
		

			
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			S-1

		

		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						PURCHASER:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						BANK OF THE WEST

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

			
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				

		
			 
		

		
			 
		

		
			

		 

		

			S-2

		

		

		
			ANNEX A TO
		

		
			UNCOMMITTED RECEIVABLES PURCHASE AGREEMENT
		

		
			DEFINED TERMS AND INTERPRETATION
		

		
			A.  Defined Terms.  As used in this Annex A, the term “Agreement” means the Agreement (as defined herein) to which this Annex A is attached.
		

		
			“Additional Seller” has the meaning set forth in Section 11.21 hereof.
		

		
			“Adverse Claim” means any Lien other than as arising under the Agreement.
		

		
			“Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, controls or is controlled by or is under common control with such specified Person.
		

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

		
			“AML Laws” means all laws, rules, and regulations of any jurisdiction applicable to the Purchaser, any Seller or any Subsidiary from time to time concerning or relating to anti-money laundering.
		

		
			“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to any Seller or any Subsidiary from time to time concerning or relating to bribery or corruption.
		

		
			“Anti-Terrorism Laws” means any of the Laws relating to terrorism or money laundering, including Executive Order No.  13224, the PATRIOT Act, the Bank Secrecy Act, the Money Laundering Control Act of 1986 (i.e., 18 U.S.C. §§ 1956 and 1957), the Laws administered by OFAC, and all Laws comprising or implementing these Laws.
		

		
			“Applicable Index Rate” means, with respect to a Purchased Receivable or any other amount, (a) the interest rate for Dollar deposits for the relevant period which is displayed on the screen display designated “LIBOR01” of the Reuters service at or about 11:00 am London time on the applicable day of determination; or (b) if the rate as set forth in clause (a) is not available, the arithmetic mean of the rates (rounded upwards to four decimal places) at which the Purchaser was offering deposits for the relevant period in an amount comparable to such Purchased Receivable or amount in Dollars to leading banks in the London interbank market.
		

		
			“Applicable Margin” means, with respect to any Obligor, the applicable margin percentage set forth opposite such Obligor on Annex B (or as modified from time to time in a written agreement between the Sellers and the Purchaser).
		

		
			“Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy,” as now and hereafter in effect, or any successor statute.
		

		
			
		

		
			

		 

		

			Annex A-1

		

		

		
			“BOW Platform Terms” means the terms and conditions of use of the BOW System, as such terms and conditions may be agreed upon from time to time; provided that, in the case of a conflict between the BOW Platform Terms and the Agreement, the Agreement shall govern.
		

		
			“BOW System” means the Purchaser’s communication tool accessible via the internet to enable clients to offer various Receivables for sale and for the loading approval and monitoring of such Receivables on a platform pursuant to the BOW Platform Terms.
		

		
			“Buffer Maturity Date” means, with respect to any Eligible Receivable, the Maturity Date of such Eligible Receivable plus the Buffer Period applicable thereto.
		

		
			“Buffer Period” means, with respect to any Obligor, the number of days set forth opposite such Obligor on Annex B.
		

		
			“Business Day” means a day on which banks are open for business in New York and London.
		

		
			“Collections” means, with respect to any Purchased Receivable, all payments made on such Purchased Receivable and any other payments, receipts or recoveries received by a Seller with respect to such Purchased Receivable.
		

		
			“Commercial Dispute” means, with respect to any Receivable, any bona fide dispute or claim, including any bona fide dispute as to price, invoice terms, quantity, quality, or late or wrongful delivery and claims of release from or waiver of liability, any bona fide counterclaims or any bona fide claim of deduction, setoff, recoupment or counterclaim or otherwise, in each case between the applicable Seller and the applicable Obligor and arising out of or in any way relating to such Purchased Receivable or any other transaction related thereto that results in such Obligor not paying the Net Face Value of such Purchased Receivable within 60 days after the applicable Maturity Date while such Obligor is not subject to an Insolvency Event. The Purchaser shall reasonably consider all relevant information that is provided regarding the bona fide nature or validity of any alleged Commercial Dispute. For the avoidance of any doubt, any discussions, negotiations, or disputes between the applicable Seller and the applicable Obligor with respect to the contractual terms for the sale of goods or provision of services by such Seller to such Obligor not affecting the amount payable by the Obligor on such Purchased Receivable shall not constitute a Commercial Dispute;  provided that if a Purchased Receivable or any portion thereof remains unpaid for 60 days following the Maturity Date thereof, a Commercial Dispute shall automatically be deemed to exist unless the applicable Seller has provided the Purchaser evidence reasonably satisfactory to the Purchaser that (x) such purported Commercial Dispute is not bona fide or (y) such non-payment is the result of an Insolvency Event of the applicable Obligor or the financial inability of such Obligor to pay such Purchased Receivable; provided,  further, for the avoidance of doubt, each Seller acknowledges and agrees that the Purchaser shall have no duty to seek information from any other sources regarding the bona fide nature or the validity of any alleged Commercial Dispute.
		

		
			 “Consolidated Due Date” means, with respect to any Eligible Receivable, the Buffer Maturity Date of which falls between the Monday and the Friday of a given week, the Thursday
		

		
			
		

		
			

		 

		

			Annex A-2

		

		

		
			of the immediately following week, unless such Thursday is not a Business Day, in which case, the Consolidated Due Date shall be the next Business Day thereafter.
		

		
			“Contract” means, with respect to any Receivable, the applicable contract or purchase order with respect to such Receivable between a Seller and the applicable Obligor, as the same may be amended and supplemented from time to time in accordance with the terms hereof.
		

		
			“Deemed Collection Amount” means, with respect to any Purchased Receivable, an amount equal to the sum of (i) the Purchase Price for such Purchased Receivable, net of any Collections received by the Purchaser with respect to such Purchased Receivable, plus (ii) an amount equal to the Net Face Value of such Purchased Receivable times the Purchase Fee Rate applicable to such Purchased Receivable for the period from the applicable Purchase Date to the applicable Deemed Collection Date, plus (iii) all other amounts then payable by Seller under this Agreement with respect to such Purchased Receivable as of the Deemed Collection Date.
		

		
			“Deemed Collection Date” as defined in Section 9.3.
		

		
			“Deemed Collection Notice” as defined in Section 9.3.
		

		
			“Dilution” means, with respect to any Receivable, any discount, adjustment, deduction, or reduction that would have the effect of reducing the amount of part or all of such Receivable.
		

		
			“Discount Period” means, with respect to any Receivable, the number of days from (and including) the applicable Purchase Date of such Receivable to (but not including) the earlier of (i) Consolidated Due Date of such Receivable and (ii) the Settlement Date by on or before which all of the Collections related to such Receivable shall be transferred to the Settlement Account in accordance with Section 5.5.
		

		
			“Dollar”  and “$” means the lawful currency of the United States of America.
		

		
			“Effective Date” means, subject to Section 6.1, the date of the Agreement.
		

		
			“Eligible Receivable” means a Receivable with respect to which, each of the following statements is true and correct as of the Purchase Date thereof:
		

		
			(i)         Prior to giving effect to the sale of such Receivable, the applicable Seller has a valid ownership interest therein, free and clear of any Adverse Claim.
		

		
			(ii)       Upon purchase by the Purchaser, the Purchaser shall acquire a valid ownership interest in such Receivable, free and clear of any Adverse Claim, and without any need on the part of any Seller or the Purchaser to, other than the UCC financing statements required to be filed hereunder, file, register or record any Facility Document or the sale of such Receivable under the Laws applicable to such Seller.
		

		
			(iii)      Such Receivable (a) constitutes an unconditional, identifiable, irrevocable, non-refundable, bona fide, existing and enforceable payment obligation of the applicable Obligor and (b) is freely assignable or, if any valid
		

		
			
		

		
			

		 

		

			Annex A-3

		

		

		
			prohibition or restriction on assignment exists with respect to such Receivable, the consent of the related Obligor has been obtained and delivered to the Purchaser.
		

		
			(iv)       The applicable Obligor is not a Sanctioned Person.
		

		
			(v)        Each applicable Contract and Invoice and the transactions contemplated thereby complies with all applicable Laws, and does not constitute a transaction that will cause a violation of AML Laws, Anti-Corruption Laws, Anti-Terrorism Laws or applicable Sanctions by any person participating in such transactions.
		

		
			(vi)       Such Receivable arises out of an arm’s-length sale by a Seller of Goods and/or the performance by such Seller of services, in each case, in the ordinary course of such Seller’s and such Obligor’s businesses related to the development, installation, operation and maintenance of integrated systems for fare collection and an Invoice for such Receivable has been delivered to such Obligor.
		

		
			(vii)     Such Receivable arises under a Contract with respect to which the applicable Seller has performed all obligations required to be performed by it thereunder with respect to such Receivable, including the delivery of the Goods and/or the performance of the services purchased thereunder.
		

		
			(viii)    Such Receivable is not subject to any Dilution except to the extent expressly included in the calculation of the applicable Purchase Price.
		

		
			(ix)       No note, account, instrument, document, contract right, general intangible, chattel paper or other form of obligation other than that which has been assigned to the Purchaser exists which evidences such Receivable.
		

		
			(x)        The applicable Obligor is not an Affiliate or Subsidiary of any Seller.
		

		
			(xi)       Neither the applicable Seller, nor, to the best of such Seller’s knowledge, the applicable Obligor, is in material default of the applicable Contract or is in material breach of its terms.
		

		
			(xii)     Neither the applicable Seller nor the applicable Obligor has asserted any Commercial Dispute with respect to such Receivable.
		

		
			(xiii)    The number of days from (and including) the date on which the applicable Invoice was issued to the applicable Obligor to (but not including) the Maturity Date for such Receivable does not exceed the Maximum Payment Term for the applicable Obligor.
		

		
			(xiv)     There are no facts known to any Seller concerning such Obligor, such Receivable or the applicable Contract which might have a material impact on the ability or willingness of such Obligor to pay the Net Face Value for such
		

		
			
		

		
			

		 

		

			Annex A-4

		

		

		
			Receivable when due, including information concerning any existing or potential Commercial Disputes, except as otherwise previously disclosed to the Purchaser.
		

		
			(xv)      No Insolvency Event with respect to the applicable Obligor has occurred and is continuing.
		

		
			(xvi)     There are no actions, claims or proceedings now pending between any Seller and the applicable Obligor.
		

		
			(xvii)   There are no pending or threatened actions or proceedings before any court or administrative agency related to or in any way connected to such Receivable.
		

		
			(xviii)  All information set forth on the applicable Purchase Request with respect to such Receivable is true and correct in all respects.
		

		
			(xix)  The related Obligor has been instructed to make payments on such Receivable only to the applicable Seller’s Account.
		

		
			(xx)  The Purchaser has received either (A) an executed consent to the assignment of Receivables from the applicable Obligor and such consent remains in effect as of the Purchase Date or (B) solely if the Obligor with respect to such Receivable is Metropolitan Transportation Authority (MTA, NY) or any other Obligor approved in writing by the Purchaser in its sole discretion, evidence that the applicable Seller has delivered a notice of assignment with respect to such Receivable to the applicable Obligor and which instructs such Obligor to make payments on such Receivables directly to the applicable Seller’s Account,  which evidence shall include, without limitation, a copy of such notice and the contact information (including the name, title, address and phone number) of the individuals to whom such notice was delivered, in each case in form and substance satisfactory to the Purchaser.
		

		
			“Executive Order No. 13224” means that certain Executive Order No. 13224, effective September 24, 2001, as the same has been, or shall hereafter be, renewed, extended, amended or replaced.
		

		
			“Facility Amount” means $30,000,000.
		

		
			“Facility Document” means each of the Agreement, each Purchase Request and all other documents, instruments or agreements executed and delivered by any Facility Party for the benefit of the Purchaser in connection herewith.
		

		
			“Facility Party” means each Seller and the Parent.
		

		
			“Fee Due Date” means, with respect to any Receivable, the earlier of the two dates described in clauses (i) and (ii) of the definition of “Discount Period”.
		

		
			
		

		
			

		 

		

			Annex A-5

		

		

		
			“Final Collection Date” means the Business Day following the termination of purchases under the Agreement on which all amounts to which the Purchaser shall be entitled in respect of Purchased Receivables and all other amounts owing to the Purchaser hereunder and under the other Facility Documents are paid in full.
		

		
			“GAAP” means United States generally accepted accounting principles in effect as of the date of determination thereof.
		

		
			“Goods” means, with respect to any Receivable, those goods and related services sold by a Seller to the applicable Obligor pursuant to the applicable Contract.
		

		
			“Governmental Authority” means any nation or government, any state or other political subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.
		

		
			“Indemnified Liabilities” as defined in Section 11.1.
		

		
			“Indemnified Party” as defined in Section 11.1.
		

		
			“Insolvency Event” means, with respect to any Person, any of the following (i) a court of competent jurisdiction shall enter a decree or order for relief in respect of such Person in an involuntary case under the Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar Law now or hereafter in effect, which decree or order is not stayed; or any other similar relief shall be granted under any applicable federal or state Law; (ii) an involuntary case shall be commenced against such Person under the Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar Law now or hereafter in effect; or a decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over such Person, or over all or a substantial part of its property, shall have been entered; or there shall have occurred the involuntary appointment of an interim receiver, trustee or other custodian of such Person for all or a substantial part of its property; or a warrant of attachment, execution or similar process shall have been issued against any substantial part of the property of such Person, and any such event described in this clause (ii) shall continue for sixty (60) days without having been dismissed, bonded or discharged; (iii) such Person shall have an order for relief entered with respect to it or shall commence a voluntary case under the Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar Law now or hereafter in effect, or shall consent to the entry of an order for relief in an involuntary case, or to the conversion of an involuntary case to a voluntary case, under any such Law, or shall consent to the appointment of or taking possession by a receiver, trustee or other custodian for all or a substantial part of its property; or such Person shall make any assignment for the benefit of creditors; or (iv) as of the date of determination, (a) the sum of such Person’s debt (including contingent liabilities) exceeds the present fair saleable value of such Person’s present assets on a going concern basis; (b) such Person’s capital is unreasonably small in relation to its business as contemplated as of such date; (c) such Person has incurred or intends to incur, or believes that it will incur, debts beyond its ability to pay such debts as they become due (whether at maturity or otherwise); or (d) the Obligor is generally not paying its debt when they come due; or (v) the board of directors (or other governing body) of
		

		
			
		

		
			

		 

		

			Annex A-6

		

		

		
			such Person (or any committee thereof) shall adopt any resolution or otherwise authorize any action to approve any of the actions referred to in this definition.
		

		
			“Invoice” means, with respect to any Receivable, the invoice with respect to such Receivable issued by a Seller to the applicable Obligor for the payment for the applicable Goods supplied and/or services performed pursuant to the applicable Contract.
		

		
			“Joinder Agreement” means a joinder and accession agreement in form and substance satisfactory to the Purchaser in all respects.
		

		
			“Law” means any law (including common law), constitution, statute, treaty, regulation, rule, ordinance, order, injunction, writ, decree or award of any Governmental Authority.
		

		
			“Lien” means a mortgage, assignment, security interest, pledge, lien or other encumbrance securing any obligation of any Person or any other type of adverse claim or preferential arrangement having a similar effect (including any agreement to give any of the foregoing, any conditional sale or other title retention agreement, and any lease in the nature thereof).
		

		
			“Material Adverse Effect” means a material adverse effect on (i) the business, operations, properties, assets, or condition (financial or otherwise) of any Facility Party; (ii) the ability of any Facility Party to fully and timely perform their respective obligations hereunder; (iii) the legality, validity, binding effect or enforceability against any Facility Party of a Facility Document to which it is a party; or (iv) the rights, remedies and benefits available to, or conferred upon, the Purchaser pursuant to the Facility Documents.
		

		
			“Maturity Date” means, with respect to any Receivable, the date on which such Receivable becomes due and payable as set forth in the applicable Invoice.
		

		
			“Maximum Payment Term” means, with respect to any Obligor, the number of days set forth opposite such Obligor on Annex B (or as modified from time to time in a written agreement between the Sellers and the Purchaser).
		

		
			“Net Face Value” means, with respect to any Receivable, the amount payable by the applicable Obligor under the applicable Invoice, net of any Taxes and any Dilutions taken into account in determining such amount as of the applicable Purchase Date.
		

		
			“Obligor” means, with respect to any Receivable, the Person that is obligated to make payments in respect of such Receivable pursuant to the applicable Contract or Invoice and that is listed on Annex B (or as modified from time to time in a written agreement between the Sellers and the Purchaser).
		

		
			“Obligor Sublimit” means, with respect to any Obligor, the amount set forth opposite such Obligor on Annex B (or as modified from time to time in a written agreement between the Sellers and the Purchaser).
		

		
			“OFAC” means the U.S. Department of Treasury Office of Foreign Assets Control, or any successor thereto.
		

		
			
		

		
			

		 

		

			Annex A-7

		

		

		
			“PATRIOT Act” as defined in Section 11.22.
		

		
			“Person” means an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental Authority or other entity of whatever nature.
		

		
			“Prime Rate” means the rate of interest per annum that the Purchaser announces from time to time as its prime lending rate, as in effect from time to time.  The Prime Rate is a reference rate and does not necessarily represent the lowest or best rate actually charged to any customer.
		

		
			“Purchase Date” means with respect to any Receivable, means the date on which the Purchaser purchases such Receivable.
		

		
			“Purchase Fee” means for each Receivable to be purchased on a Purchase Date, an amount equal to (i) the Net Face Value of such Receivable, times (ii) the Purchase Fee Rate applicable to such Receivable, times (iii) the Discount Period applicable to such Receivable, divided by (iv) 360, which amount shall be paid in arrears in accordance with Section 5.5.
		

		
			“Purchase Fee Rate” means, with respect to any Receivable, a rate per annum equal to the sum of (i) the Applicable Margin, plus (ii) the Applicable Index Rate for a period equal to the Discount Period applicable to such Receivable as determined by the Purchaser two (2) Business Days prior to the Purchase Date applicable to such Receivable.
		

		
			“Purchase Price” means, for each Receivable to be purchased on a Purchase Date, an amount equal to the Net Face Value of such Receivable.
		

		
			“Purchase Request” means a Purchase Request in the form of Exhibit A.
		

		
			“Purchased Receivable” means a Receivable purchased by the Purchaser in accordance with the terms and conditions hereof.
		

		
			“Purchaser” as defined in the preamble to the Agreement.
		

		
			“Receivable” means the monetary obligation of an Obligor to a Seller arising under a Contract which is evidenced by an Invoice (including the right to receive payment of any interest or finance charges or other liabilities of such Obligor under such Contract), together with all Related Assets with respect thereto and all Collections and other proceeds with respect to the foregoing.
		

		
			“Related Assets” means, with respect to any Receivable (i) all related rights and remedies under or in connection with the applicable Contract, including bills of lading, bills of exchange, promissory notes and accessions, (ii) all guaranties, suretyships, letters of credit, security, Liens and other arrangements supporting payment thereof, (iii) all applicable Sales Records (including electronic records), (iv) all related insurance, and (v) all proceeds of the foregoing.
		

		
			“Repurchase Date” as defined in Section 9.1.
		

		
			
		

		
			

		 

		

			Annex A-8

		

		

		
			“Repurchase Event” means, with respect to any Purchased Receivable, (i) such Purchased Receivable is not an Eligible Receivable in any respect as of the Purchase Date for such Purchased Receivable; (ii) a Commercial Dispute with respect to such Purchased Receivable exists; (iii) the applicable Obligor has made a payment on such Purchased Receivable to a Seller and such Seller shall have failed to remit such payment to the Purchaser pursuant to the terms of this Agreement; (iv) any (A) Seller instructs the related Obligor to pay any amount with respect to such Purchased Receivable to an account other than the applicable Seller’s Account or the Settlement Account or (B) the related Obligor refuses to make any payment to the applicable Seller’s Account or the Settlement Account and instead elects to make payments to an account other than the applicable Seller’s Account or the Settlement Account; and/or (v) an Adverse Claim shall exist with respect to such Purchased Receivable.
		

		
			“Repurchase Notice” as defined in Section 9.1.
		

		
			“Repurchase Price” means, for each Purchased Receivable to be repurchased on a Repurchase Date, an amount equal to the sum of (i) the Purchase Price for such Purchased Receivable, net of any Collections received by the Purchaser with respect to such Purchased Receivable, plus (ii) the Purchase Fee applicable to such Purchased Receivable that has accrued for the period from the applicable Purchase Date to the applicable Repurchase Date, plus (iii) all other amounts then payable by the applicable Seller under the Facility Documents with respect to such Purchased Receivable as of such Repurchase Date.
		

		
			“Retained Obligations” as defined in Section 4.2.
		

		
			“Sales Records” means, with respect to any Receivable, the accounts, sales ledgers, purchase and sales day books, sales invoices, supply contracts and other related books and records of a Seller relating to an Obligor and on an individual Receivable basis for the purpose of identifying amounts paid or to be paid in respect of such Receivable.
		

		
			“Sanctioned Country” means, at any time, a country or territory which is, or whose government is, the subject or target of any Sanctions broadly restricting or prohibiting dealings with such country, territory or government (currently, Cuba, Iran, Burma, North Korea, Sudan and Syria).
		

		
			“Sanctioned Person” means, at any time, any person with whom dealings are restricted or prohibited under Sanctions, including (a) any person listed in any Sanctions-related list of designated persons maintained by the United States (including by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, or the U.S. Department of Commerce), the United Nations Security Council, the European Union or any of its member states, Her Majesty’s Treasury, Switzerland or any other relevant authority, (b) any person located, organized or resident in, or any governmental entity or governmental instrumentality of, a Sanctioned Country or (c) any Person 25% or more directly or indirectly owned by, controlled by, or acting for the benefit or on behalf of, any person described in clauses (a) or (b) hereof.
		

		
			“Sanctions” means economic or financial sanctions or trade embargoes or restrictive measures enacted, imposed, administered or enforced from time to time by (a) the U.S.
		

		
			
		

		
			

		 

		

			Annex A-9

		

		

		
			government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, or the U.S. Department of Commerce (b) the United Nations Security Council; (c) the European Union or any of its member states; (d) Her Majesty’s Treasury; (e) Switzerland; or (f) any other relevant authority.
		

		
			“Seller” as defined in the preamble to the Agreement.
		

		
			“Seller’s Account” means (i) as of the date of this Agreement, with respect to Cubic Transportation Systems, Inc., the following account: Bank: Bank of the West, ABA No.: 121100782, Account No.: 54881735, SWIFT: BWSTUS66, and (ii) with respect to each Seller, such account as notified to the Purchaser from time to time by the applicable Seller in writing, which account shall be maintained at Bank of the West.
		

		
			“Settlement Account” means the following account of the Purchaser: Bank: Bank of the West, ABA No.: 1211 0078 2, Account No.: 239855-332,  Reference: Cubic, or such other account as notified to the Sellers from time to time by the Purchaser in writing.
		

		
			“Subsidiary” means, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture or other business entity of which more than 50% of the total voting power of shares of stock or other ownership interests entitled (without regard to the occurrence of any contingency) to vote in the election of the Person or Persons (whether directors, managers, trustees or other Persons performing similar functions) having the power to direct or cause the direction of the management and policies thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof; provided, in determining the percentage of ownership interests of any Person controlled by another Person, no ownership interest in the nature of a “qualifying share” of the former Person shall be deemed to be outstanding.
		

		
			“Taxes” means all present and future income and other taxes, levies, imposts, deductions, charges, duties and withholdings and any charges of a similar nature imposed by any Governmental Authority, together with any interest thereon and any penalties with respect thereto and any payments made on or in respect thereof.
		

		
			“Termination Event” means (i) the occurrence of an Insolvency Event with respect to any Facility Party, (ii) any representation, warranty, certification or other statement made or deemed made by any Facility Party in any Facility Document or in any statement or certificate at any time given by such Facility Party in writing pursuant hereto or thereto or in connection herewith or therewith is inaccurate, incorrect or untrue in any material respect, on any date as of which it is made or deemed to be made (other than any representation or warranty giving rise to a Repurchase Event), (iii) the Purchaser’s reasonable determination that that a Seller is not adequately performing its duties with respect to the servicing of the Purchased Receivables in the manner required pursuant to Section 5.1 and (iv) any Facility Party shall default in the performance of or compliance with any term contained herein or any of the other Facility Document and such default shall remain uncured for greater than 30 days;  provided, if such default cannot be cured, then a Termination Event will occur immediately.
		

		
			
		

		
			

		 

		

			Annex A-10

		

		

		
			“Transaction Fee” means for each Receivable to be purchased on a Purchase Date, an amount equal to (i) the Net Face Value of such Receivable, times (ii) 0.075%, which amount shall be paid in arrears in accordance with Section 5.5.
		

		
			“Total Outstanding Amount” means, as of any date of determination, an amount equal to: (i) the aggregate Net Face Value of all Purchased Receivables, less (ii) the aggregate amount of all Collections received thereon as of such date.
		

		
			“UCC” means the Uniform Commercial Code as from time to time in effect in the State of New York; provided, if by reason of mandatory provisions of Law, the perfection, the effect of perfection or non-perfection or the priority of the security interests of the Purchaser is governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection, effect of perfection or non-perfection or priority.
		

		
			“UCC Information” means the following information with respect to each Seller:
		

			
					
						Cubic Corporation:

					
						(a) Name: Cubic Corporation

					
					
						 

				
	
					
						(b) Jurisdiction of Organization: Delaware

					
					
						 

				
	
					
						(c) Changes in Location, Name and Corporate Organization in the last 5 years: None

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Cubic Transportation Systems, Inc.:

					
						(a) Name: Cubic Transportation Systems, Inc.

					
					
						 

				
	
					
						(b) Jurisdiction of Organization: California

					
					
						 

				
	
					
						(c) Changes in Location, Name and Corporate Organization in the last 5 years: None

					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Any other Seller:

					
						As provided in the applicable Joinder Agreement.

					
					
						 

				
	
					
						 

					
					
						 

				

		
			 
		

		
			B.  Interpretation.  In the Agreement, (a) whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms, (b) the words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation”, (c) the word “will” shall be construed to have the same meaning and effect as the word “shall”, (d) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (e) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (f) the words “herein,” “hereof” and “hereunder,” and words of similar import, shall be construed to refer to the Agreement in its entirety and not to any particular provision hereof, (g) all references herein to Sections and Exhibits shall be construed to refer to Sections of Exhibits to the Agreement, (h) any reference to any Law herein shall, unless otherwise specified, refer to such Law as amended, modified or supplemented from time to time, and (i) the words “asset” and “property” shall be
		

		
			
		

		
			

		 

		

			Annex A-11

		

		

		
			construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.
		

		
			 
		

		
			 
		

		
			

		 

		

			Annex A-12

		

		

		
			ANNEX B TO
		

		
			RECEIVABLES PURCHASE AGREEMENT
		

		
			Obligors
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Obligor

					
					
						Sublimit

					
					
						Maximum

					
						Payment

					
						Term

					
					
						Applicable

					
						Margin

					
					
						Buffer

					
						Period

				
	
					
						Metropolitan Transportation Authority (MTA, NY)

					
					
						$25,000,000

					
					
						30 days

					
					
						0.80%

					
					
						60 days

				
	
					
						Metropolitan Transportation Commission (MTC, San Francisco)

					
					
						$25,000,000

					
					
						30 days

					
					
						0.80%

					
					
						60 days

				
	
					
						Chicago Transit Authority (CTA)

					
					
						$25,000,000

					
					
						30 days

					
					
						0.80%

					
					
						60 days

				
	
					
						Los Angeles County Metropolitan Transportation Authority (LACMTA)

					
					
						$25,000,000

					
					
						30 days

					
					
						0.80%

					
					
						60 days

				
	
					
						Metropolitan Atlanta Rapid Transit Authority (MARTA)

					
					
						$25,000,000

					
					
						45 days

					
					
						0.80%

					
					
						60 days

				

		
			 
		

		
			
		

		
			

		 

		

			Annex B-1

		

		

		
			EXHIBIT A TO
		

		
			RECEIVABLES PURCHASE AGREEMENT
		

		
			______________, 20__
		

		
			Bank of the West
		

		
			13300 Crossroads Parkway North
		

		
			City of Industry, CA 91746
		

		
			 
		

		
			Re:       Purchase Request
		

		
			Ladies and Gentlemen:
		

		
			We refer to the Uncommitted Receivables Purchase Agreement, dated as of September 26, 2018 (as it may be amended, supplemented or otherwise modified from time to time, the “Purchase Agreement”), among Cubic Corporation, a Delaware corporation, Cubic Transportation Systems, Inc., a California corporation, and Bank of the West.  Terms defined in the Purchase Agreement shall have the same meaning herein as defined in such Purchase Agreement.
		

		
			_________________ hereby requests that the Purchaser purchase on _____________, 20__ (the “Purchase Date”) the Receivables set forth on Schedule A attached hereto in accordance with, and subject to, the terms and conditions of the Purchase Agreement.
		

		
			The undersigned hereby represents and warrants to the Purchaser that each of the conditions precedent set forth in Section 6 of the Purchase Agreement has been satisfied as of the Purchase Date.
		

		
			Executed and delivered by the undersigned as of the date first above written.
		

			
					
						 

					
					
						[_________________]

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

			
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			
		

		
			

		 

		

			Annex B-2

		

		

		
			Schedule A to Purchase Request
		

		
			Receivables
		

			
					
						 

					
					
						Obligor

					
					
						Invoice
Number

					
					
						Invoice
Amount

					
					
						Net
Face
Value

					
					
						Invoice
Date

					
					
						Maturity
Date

					
					
						Purchase
Order
Reference
Number

					
					
						Days to
Maturity
from
Purchase

				
	
					
						1.

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2.

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						3.

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		 

		

			Annex B-3cub_Ex10_24

		
			Exhibit 10.24
		

		
			 
		

		
			ACCOUNT PURCHASE AGREEMENT
		

		
			 
		

		
			THIS ACCOUNT PURCHASE AGREEMENT (this “Agreement”), dated as of the Effective Date, by and between GATR TECHNOLOGIES, INC., a corporation formed under the laws of Alabama and having its chief executive office at 9333 Balboa Ave., San Diego, CA 92123 (the “Client”) and WELLS FARGO BANK, NATIONAL ASSOCIATION (the “Purchaser”).  Except as set forth in Section 10.1 below, all capitalized terms used in this Agreement are defined in Rider A annexed hereto.
		

		
			Client has advised Purchaser that Client desires to offer to sell and assign to Purchaser certain of Client’s Accounts that satisfy the requirements of Approved Accounts hereunder.  Purchaser may, in its sole discretion, purchase certain Approved Accounts offered for sale and assignment, and, except as set forth herein, all such purchases shall be without recourse to Client.  This Agreement, including the Schedules and Riders annexed hereto, memorializes the terms and conditions under which Purchaser shall purchase such Approved Accounts from Client.
		

		
			In consideration of the premises and for other good and valuable consideration, the receipt of which is hereby acknowledged, Client and Purchaser hereby agree as follows:
		

		
			ARTICLE 1
		

		
			PURCHASE AND PRICING TERMS
		

		
			Section 1.1        Purchase and Assignment of Accounts.  Client hereby agrees to sell and assign to Purchaser,  and Purchaser hereby agrees to purchase as absolute owner, certain Approved Accounts  of Client arising from sales of inventory or rendition of services in the ordinary course of business by Client to a Customer, without further act or instrument.  With respect to each Approved Account offered for sale by Client to Purchaser hereunder and accepted for purchase by Purchaser from Client hereunder, the assignment to Purchaser of such Approved Account, and purchase by Purchaser of such Approved Account, will be effective as of the date of payment by Purchaser of the Initial Payment of the Purchase Price for such Approved Account in accordance with the terms hereof (such Approved Accounts, upon effectiveness of the assignment and purchase thereof and so long as such Approved Account has not been repurchased by Client, being referred to, collectively, as the “Purchased Accounts”).  It is understood and agreed that, notwithstanding any increase in the Initial Payment of the Purchase Price for an Unbilled Account upon the Conversion Date thereof in accordance with Section 1.4 below, but without limiting the obligation of Purchaser under Section 1.4 below with respect to payment of such increase, the assignment from Client to Purchaser and purchase by Purchaser from Client of an Unbilled Account will be effective, and such Unbilled Account shall constitute a Purchased Account (so long as it has not been repurchased by Client), as of the date of payment by Purchaser of such Initial Payment calculated using the Purchase Price Rate for Unbilled Accounts.  Except as set forth herein, all purchases by Purchaser of Purchased Accounts shall be without recourse to Client.
		

		
			Section 1.2        Written Credit Approval.  Client shall submit to Purchaser a request for written credit approval of the Accounts of Client’s Customers.  Purchaser may, in its discretion, approve such request by establishing a credit line limited to a specific amount (a “Purchase Limit”) for such specific Customer (all such Accounts owing by a specific Customer not exceeding the credit line established by Purchaser,  “Approved Accounts”).  No credit approval shall be effective unless notice thereof shall be received by Client from Purchaser (either in writing or electronically via any internet accessible website provided by Purchaser to Client in connection herewith).  No such credit approval or terms of sale of a Purchased Account shall be changed without Purchaser’s approval (either in writing or electronically via any internet accessible website provided by Purchaser to Client in connection herewith).  If there is any material change in the amount, terms, shipping date or delivery date for any shipment of goods or rendition of services under a Purchased Account (a “Change of Terms”),  Client shall submit a change of
		

		
			 
		

		
			 
		

		
			

		 

		

		
			terms request to Purchaser and Purchaser shall advise Client of Purchaser’s decision either to retain the Credit Risk or to withdraw the credit approval for such Purchased Account.  Purchaser shall have the right, at any time, to withdraw or adjust a credit line of a Customer (provided such withdrawal or adjustment shall not be effective with respect to Purchased Accounts then outstanding).  Purchaser shall not be liable to any person or in any manner for refusing to approve the credit of any Customer.
		

		
			Section 1.3        Written Schedules.  Client shall from time to time deliver to Purchaser electronically, using the internet accessible website made available by Purchaser to Client for such purpose, schedules of all Approved Accounts  (which shall include the invoice details for each such Approved Account) offered by Client for sale and assignment to Purchaser hereunder, together with copies of Customer’s invoices or their equivalent and conclusive evidence of delivery for all goods sold or rendition of services and all other information or documents, as Purchaser may reasonably require.
		

		
			Section 1.4        Payment of Purchase Price.  As consideration for the assignment and sale of a Purchased Account to Purchaser, Purchaser shall pay to the Client the Purchase Price for such Purchased Account in accordance with the terms hereof.  The Initial Payment of the Purchase Price for a Purchased Account shall be payable on the date such Account is purchased by Purchaser hereunder and the Settlement Date Payment of the Purchase Price for a Purchased Account shall be payable on the first Business Day after the Settlement Date for such Purchased Account.  Purchaser shall remit to Client the Purchase Price for a Purchased Account by credit of the same to the Client Ledger Account.  Within one (1) Business Day after the Conversion Date for a Purchased Account that is an Unbilled Account, and so long as such Purchased Account is not subject to a Repurchase Event, the Initial Payment of the Purchase Price for such Purchased Account shall be recalculated using the Purchase Price Rate for Purchased Accounts that are not Unbilled Accounts and Purchaser shall pay to Client, by credit to the Client Ledger Account, any increase in such Initial Payment resulting from such recalculation.
		

		
			Section 1.5        Assumption of Credit Risk.  Upon the purchase of a Purchased Account,  Purchaser shall assume the Credit Risk thereon, but not the risk of non-payment of such Purchased Account for any other reason.  Notwithstanding anything to the contrary set forth herein, Purchaser’s Credit Risk on a Purchased Account shall not include any Customer’s inability to pay a Purchased Account at its longest maturity as a result of acts of war, acts of God, civil strife, currency restrictions or foreign political impediments.  Client shall be liable to Purchaser for all representations, warranties, covenants and indemnities made by Client pursuant to the terms of this Agreement, all of which obligations are limited so as not to constitute recourse to Client for the failure of any Customer to pay any Purchased Account solely as a result of an Insolvency Event with respect to such Customer or non-payment of such Purchased Account where such Customer has not asserted and does not assert a Commercial Dispute.
		

		
			Section 1.6        No Commitment to Purchase; No Liability.  Except with respect to Approved Accounts for which Purchaser has accepted for purchase and remitted the Initial Payment of the Purchase Price in accordance with the terms hereof, Purchaser shall have no obligation to accept any offer to sell, or otherwise to purchase, any Account from Client and nothing in this Agreement or otherwise constitutes a commitment on the part of Purchaser to make any such purchase.  Purchaser may reject any offer from time to time in its sole discretion, including to the extent that the Liquidity of Client is less than $100,000,000 but in any event without any requirement or obligation for notice or explanation to Client as to the basis for such determination.  No such obligation or commitment with respect to any Account shall be implied by any act or omission of Purchaser,  or on its behalf, other than the payment by Purchaser to Client of the Initial Payment of the Purchase Price for such Purchased Account in accordance with the terms hereof.  Purchaser shall have no liability to Client or to any other Person for declining to accept any offer to purchase an Account or the withdrawal or revocation of any acceptance of an offer to
		

		
			
		

		
			

		 

		

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			purchase an Account on the basis of the failure of any of the conditions to such purchase to be satisfied in the determination of Purchaser.
		

		
			Section 1.7        Repurchase of Accounts
		

		
			1.7.1     During the continuance of a Repurchase Event with respect to a Purchased Account (whether before, on or after the Settlement Date of such Purchased Account),  Purchaser may, upon notice to Client, require Client to pay to Purchaser the Repurchase Price in respect of such Purchased Account.
		

		
			1.7.2     The payment of the Repurchase Price for Purchased Accounts, any Discount Fee and any other amounts at any time owing by Client to Purchaser shall be made, at the option of Purchaser,  either by: (a) setoff against any amount at any time owing by Purchaser to Client, including, without limitation, the Purchase Price for any Purchased Account,  (b) debit or deduction from any deposit account of Client or the Client Ledger Account or (c) a cash payment by Client to Purchaser.  All such payments by Client to Purchaser shall be made without offset, defense, or counterclaim of any kind, nature or description and, with respect to cash payments, to the WFB Bank Account or to such other account specified by Purchaser to Client for such purpose.  Client may re-offer for sale to Purchaser hereunder any Account that has been repurchased by Client from Purchaser hereunder and Purchaser may, but shall have no obligation to, accept such re-offer.
		

		
			1.7.3     If Purchaser has exercised its option to require that Client repurchase a Purchased Account, then upon the payment by or on behalf of such Client of the Repurchase Price for such Purchased Account, such Purchased Account shall be deemed to be sold by Purchaser back to Client without further action or payment, and without recourse, representation or warranty.  If after receipt of any payment, Purchaser is required to surrender or return such payment to any Person for any reason, then the obligations intended to be satisfied by such payment shall be reinstated and continue and this Agreement shall continue in full force and effect as if such payment had not been received by Purchaser.
		

		
			Section 1.8        No Assumption of Obligations Related to Purchased Accounts.  Purchaser shall not have any obligation or liability to any Customer in respect of a Purchased Account or other customer of Client.  No such obligation or liability is intended to be assumed hereunder by Purchaser, and any such assumption is expressly disclaimed.
		

		
			Section 1.9        True Sales.  Client and Purchaser intend that the conveyances and transfers of the Purchased Accounts hereunder be true sales by Client to Purchaser that are absolute and irrevocable and that provide Purchaser with the full benefits of ownership of the Purchased Assets, and neither Client,  Purchaser intends the transactions contemplated hereunder to be, or for any purpose to be characterized as, loans from Purchaser to Client or an assignment by way of security by Client to Purchaser.
		

		
			ARTICLE 2
		

		
			ADMINISTRATION
		

		
			Section 2.1        Client Ledger Account
		

		
			2.1.1     Purchaser shall record in the Client Ledger Account all debits, credits and other entries for all transactions between Client and Purchaser hereunder or under any Other Agreement, without limitation, all purchases from Client of Purchased Accounts, payments to such Client of the Purchase Price of such Purchased Accounts, collections of such Purchased Accounts, and charges for which Client is liable hereunder or under any Other Agreement, including, without limitation, amounts due for any Repurchase Price, discount, fees, costs,  expenses and taxes.
		

		
			
		

		
			

		 

		

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			2.1.2     At Client’s written request, any credit balance in the Client Ledger Account shall be released to Client.  Should the Client Ledger Account at any time have a deficit balance, Purchaser shall provide Client with written notice thereof and such Client shall pay to the Purchaser the amount of such deficit on or before the date and in accordance with the wire transfer instructions specified in such written notice.
		

		
			2.1.3     Purchaser shall make available to Client an internet accessible website which will permit Client to view all debits, credits and other entries made by Purchaser to the Client Ledger Account during specific periods.  Client agrees to log on to the internet accessible website provided by Purchaser no less frequently than monthly, and Client shall review all transactions posted to the Client Ledger Account through the last day of each month.  All postings to the Client Ledger Account for each month shall be subject to subsequent adjustment by Purchaser but shall, absent manifest error, be conclusively presumed to be correct and accurate and constitute an account stated between Client and Purchaser unless, within 60 days after the last day of any month, Client shall deliver to Purchaser written objection to the postings for such month describing the error or errors contained in any such postings.
		

		
			2.1.4     Client hereby unconditionally promises to pay to Purchaser all amounts due from Client to Purchaser, as and when due, without deduction or setoff, regardless of any defense or counterclaim, in accordance with this Agreement.  Client hereby irrevocably authorizes Purchaser, from time to time and without prior notice to Client, to charge to the Client Ledger Account all amounts, including, without limitation, the amount of any Repurchase Price, all Discount Fees, and all other costs, fees, expenses and other charges, payable by Client hereunder or under any of the Other Agreements.
		

		
			Section 2.2        Payments and Remittances
		

		
			2.2.1     All checks, remittances, other items of payment and other Proceeds of Purchased Assets shall be property of Purchaser.  All invoices evidencing Accounts owing from Customers whose Accounts are at any time purchased by Purchaser hereunder shall prominently indicate that the Account evidenced by such invoice is payable to Client, at the Collection Accounts (or, during the continuance of a Servicer Default, such other lockboxes or accounts as Purchaser may from time to time specify).  If any checks, remittances, other items of payment or other Proceeds of Purchased Assets are received by Client, Client shall hold the same in trust for the benefit of Purchaser and will immediately deposit all such checks, remittances and other items of payment and other Proceeds of Purchased Assets into the applicable Collection Account.  The Collection Accounts as of the date hereof are listed on Schedule 2.2 hereto.
		

		
			2.2.2     Client shall not change (or, if Client is then acting as Servicer, permit Servicer to change) the Collection Accounts unless (a) Client shall have provided Purchaser with prior written notice as required under Section 11.3, and (b) the financial institution at which such Collection Account is maintained is reasonably acceptable to Purchaser.
		

		
			2.2.3     [Intentionally Omitted].
		

		
			2.2.4     If Purchaser is required to repay, refund or otherwise disgorge any payment received by Purchaser for an Account of Client (other than with respect to any repayment, refund or other disgorgement of Proceeds of a Purchased Account that is not the subject of a Commercial Dispute or Repurchase Event), Client hereby indemnifies, saves and holds harmless Purchaser with respect to such payment and the amount of the repayment by Purchaser shall be part of the Indemnified Amounts, notwithstanding any termination of this Agreement.
		

		
			
		

		
			

		 

		

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			2.2.5     In the event Client at any time receives a payment from Purchaser with respect to any Account to which Client has no rights, repayment of such payment shall be part of the obligations of Client to Purchaser, whether or not this Agreement has been terminated, and any such amounts shall be paid to Purchaser and shall be included in the Indemnified Amounts.
		

		
			2.2.6     If Purchaser receives a duplicate payment with respect to an Account or other payment which is not identified as applicable to an outstanding Account, Purchaser will account for such payment as an open item and either return any duplicate or unidentified payment to the Customer or, in Purchaser’s discretion, apply such unidentified payment pursuant to the terms hereof upon proper identification and documentation acceptable to Purchaser.
		

		
			ARTICLE 3
		

		
			FEES AND EXPENSES
		

		
			Section 3.1        Fees.  Client agrees to timely pay all fees set forth on Schedule 1.1 annexed hereto, all of which fees shall be fully earned and payable when due,  may be charged by Purchaser to the Client Ledger Account and shall not be subject to refund, rebate or proration for any reason whatsoever.
		

		
			Section 3.2        Reimbursement of Costs, Fees and Expenses Incurred by Purchaser.  Client shall reimburse Purchaser for all reasonable and documented costs, fees and expenses incurred by Purchaser, including reasonable and documented attorneys’ costs, fees and expenses, in connection with: (i) obtaining or enforcing payment or performance of any obligation owing by Client to Purchaser hereunder or under any Other Agreement, (ii) field examinations and inspections of Client, Client’s operations and the Purchased Accounts, at the current rates established from time to time by Purchaser as its fee for such exams or inspections (which fees are currently $1,000 per day per collateral examiner), plus all actual out-of-pocket costs and expenses incurred in conducting any collateral exam or inspection;  provided,  that, so long as no Servicer Default exists, Client shall not be required to reimburse WFB for more than one such field examination per Contract Year (it being agreed that field examinations conducted prior to the Effective Date shall not count towards such cap),  and (iii) the prosecution or defense of any action or proceeding concerning any matter arising out of or connected with this Agreement, any Other Agreement or any of the Purchased Assets (excluding any actions or proceedings by Purchaser for the collection of Purchased Accounts for which Purchaser has retained the Credit Risk).  In addition to the foregoing, Client shall pay to Purchaser the Purchaser’s standard and customary fees relating to bank services, wire transfers, special or additional reports, remittance expenses (including, without limitation, incoming wire charges, currency conversion fees and stop payment fees), and other services at such rates as shall be charged by Purchaser from time to time.  All such costs, fees and expenses, together with all filing, recording and search fees and taxes payable by Client to Purchaser shall be payable on demand and may be charged by Purchaser to the Client Ledger Account.
		

		
			ARTICLE 4
		

		
			SAVINGS CLAUSE
		

		
			If, notwithstanding the intention of the parties expressed in Section 1.9 hereof, the sale and assignment by Client to Purchaser of the Purchased Assets hereunder shall be characterized other than as true sales by a court of competent jurisdiction, this Agreement shall constitute a security agreement under the UCC and other applicable law.  For this purpose, Client hereby grants Purchaser a first priority security interest in all of Client’s rights in, to and under the Purchased Assets to secure the timely payment by Client of amounts owing by Client to Purchaser hereunder.  In the event this Agreement shall be characterized as a security agreement, Purchaser shall have, in addition to the rights and remedies which it may have under this Agreement, all other rights and remedies provided to a secured creditor
		

		
			
		

		
			

		 

		

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			under the UCC and other applicable law, which rights and remedies shall be cumulative and may be exercised alternatively, successively or concurrently on any one or more occasions.
		

		
			ARTICLE 5
		

		
			CLIENT REPRESENTATIONS AND WARRANTIES
		

		
			Client hereby makes all of the representations and warranties set forth on Rider B1 and B2 annexed hereto.
		

		
			 
		

		
			ARTICLE 6
		

		
			AFFIRMATIVE COVENANTS
		

		
			Client hereby agrees as follows:
		

		
			Section 6.1        Recordkeeping, Rights of Inspection, Audit, Etc.
		

		
			(a)         Client shall maintain proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to Client’s properties, business and activities, including without limitation, immediately upon the sale of each Purchased Account to Purchaser.
		

		
			(b)         Client shall permit authorized representatives of Purchaser from time to time during normal business hours following reasonable prior notice to Client (or, without notice during the continuance of a Servicer Default) to perform field examinations, to visit and inspect the properties of Client, to review, audit, check and inspect the Purchased Accounts and other Purchased Assets to review, audit, check and inspect Client’s books or records and to make abstracts and photocopies thereof, and to discuss the affairs, finances and accounts of Client, with the officers, directors, employees and other representatives of Client and its accountants.
		

		
			Section 6.2        Intentionally omitted.
		

		
			Section 6.3        Notification of Material Disputes and Certain Other Events.  Client and Servicer shall promptly notify Purchaser in writing after any Client or Servicer, as the case may be, obtains knowledge of the occurrence of:
		

		
			(a)         Any event or circumstance set forth in Section 8.1.2 of this Agreement (other than subsection (a) thereof);
		

		
			(b)         any Commercial Dispute (defined, for this purpose, to include Approved Accounts) between Client and a Customer that is then obligated in respect of a Purchased Account;
		

		
			(c)         the assertion, filing, recording or perfection by any means of any Lien against any of the Purchased Assets, other than Permitted Liens;
		

		
			(d)         the occurrence of an Insolvency Event with respect to any Customer that is then obligated in respect of a Purchased Account; or
		

		
			(e)         any (i) material change to the credit limits, availability formulas or reserves under the Syndicated Facility Loan Documents; provided that, so long as Wells Fargo Bank, National Association is a Syndicated Facility Lender, notice under this clause (i) shall not be required and (ii) amendment or modification to the Syndicated Facility Loan Documents that would have the effect of
		

		
			
		

		
			

		 

		

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			materially decreasing the total combined amount available for borrowing by Client under the Syndicated Facility Loan Documents; provided,  that, (X) so long as Wells Fargo Bank, National Association is a Syndicated Facility Lender, notice under this clause (ii)  shall not be required and (Y) upon request of Purchaser, Client shall deliver to Purchaser copies of any such amendment or modification.
		

		
			Section 6.4        Financial Information.  Client shall cause to be prepared and shall deliver to Purchaser, in each case, in form and content satisfactory to Purchaser:
		

		
			6.4.1     Within 45 days after the end of each fiscal quarter,  Parent’s internally prepared Financial Statements, prepared for Parent and its subsidiaries, on a consolidating and consolidated basis, as of the last day of such fiscal quarter, together with copies of Parent’s form 10-Q quarterly report filed with the Securities and Exchange Commission.  Such Financial Statements to be certified by Client’s President or Chief Financial Officer and prepared in accordance with GAAP.
		

		
			6.4.2     Within 120 days after the end of each fiscal year, Parent’s audited Financial Statements, prepared for Parent and its subsidiaries, on a consolidating and consolidated basis, as of the last day of such fiscal year, together with Parent’s form 10-K annual report filed with the Securities and Exchange Commission.  Such Financial Statements to be audited by Client’s certified public accountants and prepared in accordance with GAAP;
		

		
			6.4.3     Within 120 days after the start of each fiscal year, projections of Client for such fiscal year, prepared on a monthly basis;
		

		
			6.4.4     Within 15 days after the end of each month, (i) a detailed aging of Purchased Accounts of Client in electronic format, as at the last Business Day of the previous month; and (ii) a written collection comment for Purchased Accounts of Client that are outstanding 30 days or more beyond normal terms;
		

		
			6.4.5     Within 5 Business Days of request by Purchaser to Client (no more frequently than once per month per Purchased Account)  that Client or Servicer contact for collection comment the Customer of a Purchased Account of Client that is outstanding 30 days or more beyond normal terms, a written collection comment for such Purchased Account which shall include (A) Customer’s telephone number that was called and (B) the name of party spoken to or with whom a telephone message was left;
		

		
			6.4.6     Contemporaneously with the delivery thereof, a copy of each compliance (or similar) certificate delivered by Client or any of its affiliates under or pursuant to the Syndicated Facility Loan Documents;
		

		
			6.4.7     Contemporaneously with the receipt thereof, a copy of each notice of default or exercise of cash dominion received by Client or any of its affiliates under or pursuant to the Syndicated Facility Loan Documents;
		

		
			6.4.8     Promptly, upon Purchaser’s request from time to time, such other financial information as Purchaser may reasonably request, including Client’s accounts payable aging with respect to the Purchased Accounts.
		

		
			Section 6.5        USA PATRIOT Act, Etc. Client will (a) ensure, and cause each subsidiary of Client and each of Servicer and Performance Guarantor and their respective subsidiaries to ensure, that none of its respective equity owners shall be listed on the Specially Designated Nationals and Blocked Person List or other similar lists maintained by OFAC, the Department of the Treasury or included in any Executive Orders of the President of the United States, (b) not use or permit the use of the proceeds of
		

		
			
		

		
			

		 

		

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			any Purchased Account purchased hereunder or any other financial accommodation from Purchaser to violate any of the foreign asset control regulations of OFAC or other applicable law, rule or regulation, (c) comply, and cause each subsidiary to comply, with all applicable Bank Secrecy Act laws and regulations, as amended from time to time, and (d) otherwise comply with the Patriot Act.
		

		
			Section 6.6        Communications with Customers.  Client irrevocably authorizes Purchaser (in Purchaser’s name or in the name of a nominee of Purchaser) to communicate with any Customer obligated on a Purchased Account to verify the balance of such Purchased Account or to confirm Client’s sale to the Customer of the goods, or rendition to the Customer of the services, giving rise to such Purchased Account.  In the event Purchaser seeks to verify or confirm matters with respect to a Purchased Account due from a federal Governmental Authority, Purchaser agrees it shall first seek to do so through Wide Area Work Flow (or any successor system) prior to using any other means of verification or confirmation.  Without limiting the foregoing, (a) upon and during the continuance of a Notification Event with respect to Purchased Account, Client irrevocably authorizes Purchaser (in Purchaser’s name or in the name of a nominee of Purchaser) to communicate with the Customer of such Purchased Account to disclose Purchaser’s interest in such Purchased Account, including pursuant to a notice of assignment, to demand payment of such Purchased Account and to settle Commercial Disputes with respect to such Purchased Account and (b) upon and during the continuance of a Servicer Default (whether or not Purchaser exercises its right to appoint a replacement Servicer), Client irrevocably authorizes Purchaser (in Purchaser’s name or in the name of a nominee of Purchaser) to communicate with Customers for the purposes described in the foregoing clause (a) and for all such other purposes arising in connection with Purchaser’s purchase of Purchased Accounts.
		

		
			Section 6.7        Further Action and Further Assurances
		

		
			6.7.1     Client will take all necessary action to establish and maintain in favor of Purchaser good title to (and, to the extent that the interest of a buyer of accounts is a “security interest” under the UCC, a valid and perfected first priority security interest in) all Purchased Assets, free and clear of any security interest, Lien, pledge, claim or other encumbrance for the benefit of any Person other than Purchaser (including, without limitation, the filing of all financing statements or other similar instruments or documents necessary under the UCC (or any comparable law) of all appropriate jurisdictions) and from time to time, at its expense, Client will promptly execute and deliver all further instruments and documents, and take all further action that Purchaser may reasonably request in order to perfect, protect or more fully evidence Purchaser’s ownership of the Purchased Assets, or to enable Purchaser to exercise or enforce any of its rights under this Agreement and any Other Agreement.
		

		
			6.7.2     Client irrevocably and unconditionally authorizes Purchaser (or its agent) to file at any time and from time to time such financing statements with respect to the Purchased Assets naming Client as seller/debtor and Purchaser as buyer/secured party, as Purchaser may require, together with any amendments and continuations with respect thereto, which authorization shall apply to all financing statements filed on, prior to or after the date hereof.  Client hereby ratifies and approves all financing statements naming Client as seller/debtor and Purchaser as buyer/secured party, with respect to the Purchased Assets (and any amendments and continuations with respect to such financing statements) filed by or on behalf of Purchaser prior to the date hereof.  In no event shall Client at any time file, or permit or cause to be filed, any correction statement or termination statement with respect to any financing statement (or any amendment or continuation with respect thereto) naming Client as seller/debtor and Purchaser as buyer/secured party.
		

		
			
		

		
			

		 

		

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			ARTICLE 7
		

		
			NEGATIVE COVENANTS
		

		
			Client agrees as follows:
		

		
			Section 7.1        Negative Covenants.  Client shall not:
		

		
			7.1.1     Without giving Purchaser at least thirty (30) days prior written notice:
		

		
			(a)         change Client’s legal name;
		

		
			(b)         [intentionally omitted];
		

		
			(c)         change Client’s type of organization;
		

		
			(d)         change Client’s jurisdiction of organization; or
		

		
			(e)         change Client’s chief executive office.
		

		
			7.1.2     Without giving Purchaser at least fifteen (15) days subsequent written notice:
		

		
			(a)         invoices or collects any Purchased Accounts arising under, or owing pursuant to,  a commercial contract under a fictitious, assumed or “d/b/a” name;
		

		
			(b)         change Client’s organizational identification number (or acquire an organizational number if Client does not have one on the Effective Date);
		

		
			(c)         to the extent such books and records are not made available to Purchaser electronically, change any location of its books and records relating to Purchased Accounts; or
		

		
			(d)         change Client’s certified public accountants.
		

		
			7.1.3     At any time:
		

		
			(a)         interfere with any of Purchaser’s rights under this Agreement or the Other Agreements;
		

		
			(b)         be a party to a merger or consolidation with any Person unless Client shall be the surviving entity of such merger or consolidation; or
		

		
			(c)         grant or permit to exist any Lien or otherwise transfer any other interest in any of the Purchased Assets to any Person other than holders of Permitted Liens,  without Purchaser’s prior written consent.
		

		
			ARTICLE 8
		

		
			TERM
		

		
			Section 8.1       Termination and Autorenewal.  This Agreement shall remain in full force and effect until terminated as follows:
		

		
			8.1.1     Client may terminate this Agreement upon at least sixty (60), but no more than ninety (90), days’  prior written notice to Purchaser.  Unless Purchaser has received such notice at least
		

		
			
		

		
			

		 

		

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			sixty (60), but no more than ninety (90), days prior to the last day of the Initial Term (or as applicable, Renewal Term), or this Agreement shall be otherwise terminated in accordance with the terms hereof, this Agreement shall automatically renew for successive Renewal Terms;
		

		
			8.1.2     Purchaser may terminate this Agreement at any time if
		

		
			(a)         Purchaser provides Client with thirty (30) days’ prior written notice;
		

		
			(b)         Client fails to pay any amounts payable by Client to Purchaser hereunder when due and payable hereunder unless such failure is cured within Five  (5) Business Days after Purchaser provides Client with written notice of such failure (and provided that the foregoing shall not be construed to limit the right of Purchaser to charge such amounts as and when due to the Client Ledger Account in accordance with the terms hereof,  or to offset amounts payable by Purchaser hereunder against any amounts payable by Client to Purchaser hereunder as and when such amounts are due);
		

		
			(c)         Client fails to perform any of the covenants contained in this Agreement or in any Other Agreement and such failure, if capable of cure, continues uncured for thirty (30) consecutive days after the earlier of knowledge by Client thereof or receipt by Client from Purchaser of written notice thereof; provided such thirty (30) day period shall not apply to any failure of Client to perform under Sections  2.1.4,  2.2, 6.3 or 6.4;
		

		
			(d)         any representation, warranty or statement of fact made or deemed made to Purchaser by Client or any Performance Guarantor in this Agreement or any Other Agreement,  or otherwise in connection with the transactions contemplated hereunder, shall when made or deemed made be false or misleading in any material respect;
		

		
			(e)         Client or any Performance Guarantor dissolves or suspends or discontinues doing business or shall be subject to an Insolvency Event or Performance Guarantor terminates the Performance Undertaking;
		

		
			(f)         A change in any applicable law, rule, code, statute, regulation or treaty prohibits or otherwise restricts Purchaser’s rights or obligations under this Agreement;
		

		
			(g)         The delivery to or receipt by Client or any affiliate of Client of written notice of the occurrence of a default, event of default or termination event under the Syndicated Facility Loan Documents;
		

		
			(h)         There shall occur and be continuing a Servicer Default; or
		

		
			(i)          The Liquidity of Client is at any time less than $100,000,000.
		

		
			Section 8.2       Effect of Termination.  Upon termination, all amounts then owing from Client shall be immediately due and payable, and Purchaser may exercise any rights and remedies available to Purchaser at law or equity; provided, that, upon the occurrence of a case or proceeding against Client that is or relates to an Insolvency Event: (a) this Agreement shall automatically and without notice or action terminate, and (b) Purchaser shall have no obligation to pay the Purchase Price for any Accounts that are not Purchased Accounts or that may have been subject to rejection by Purchaser or otherwise not accepted for purchase by Purchaser prior to the commencement of such case or proceeding.  Termination shall not affect any rights created or obligations incurred under this Agreement prior to termination.  Any amounts due to Purchaser hereunder shall become immediately due and payable in full in cash or other immediately available funds without further notice or demand.
		

		
			
		

		
			

		 

		

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			ARTICLE 9
		

		
			INDEMNITIES
		

		
			Section 9.1        Indemnification.  Client hereby indemnifies and holds each Indemnified Person harmless from and against any and all suits, actions, proceedings, claims, damages, losses, liabilities and expenses of every kind and nature (including attorneys’ costs, fees and expenses) which may be instituted or asserted against or incurred by any such Indemnified Person with respect to the execution, delivery, enforcement, performance or administration of, or in any other way arising out of or relating to, this Agreement or any Other Agreement, and any actions or inactions with respect to any of the foregoing (all of the foregoing being collectively called “Indemnified Amounts”), except to the extent that any such indemnified liability is determined pursuant to a final, non-appealable order issued by a court of competent jurisdiction to have resulted solely from such Indemnified Person’s gross negligence, willful misconduct, or intentional breach of this Agreement or the Other Agreements.  No Indemnified Person shall be responsible or liable to Client or to any other party for indirect, punitive, special, exemplary or consequential damages which may be alleged as a result of the purchase of any Purchased Account or other financial accommodation having been extended, denied, delayed, conditioned, suspended or terminated under this Agreement or any Other Agreement or as a result of any other event or transaction contemplated hereunder or thereunder.  Notwithstanding anything to the contrary herein, the indemnify set forth in this Section 9.1 shall not apply to Credit Risk and Indemnified Amounts shall not include Credit Risk.
		

		
			Section 9.2        Taxes.
		

		
			(a)         If any tax or fee imposed by any Governmental Authority (other than income and franchise taxes owing by Purchaser) is or may be imposed on or as a result of any transaction between Client and Purchaser, or with respect to sales or the Goods or services affected by such sales, which Purchaser is or may be required to withhold or pay, Client acknowledges sole responsibility for such fee or tax and agrees to indemnify and hold Purchaser harmless in respect of such taxes.  Client will pay to Purchaser, upon Purchaser’s demand, the amount of any such taxes.
		

		
			(b)         Client agrees to pay any present or future stamp, value added or documentary taxes or any other excise or property taxes, charges or similar levies that arise from any payment made hereunder or from the execution, delivery, performance, recordation, or filing of, or otherwise with respect to this Agreement or any Other Agreement.
		

		
			(c)         Client shall pay and discharge when due all taxes and fees assessed by any Governmental Authority against Client or Purchaser as a result of or in connection with the transactions contemplated hereunder.
		

		
			Section 9.3        No Liability.  Purchaser shall not be liable to Client or any other Person or in any manner for declining, withholding or terminating the designation of any Account as a Purchased Account.  If Purchaser declines, withholds or terminates the designation of an Account as a Purchased Account and provides Client with any information regarding the Customer obligated on such Account, Client agrees to hold such information as confidential, and Client agrees not to disclose such information to the Customer or any other Person.
		

		
			ARTICLE 10
		

		
			MISCELLANEOUS PROVISIONS
		

		
			Section 10.1      UCC Terms.  When used herein, unless otherwise indicated herein and as applicable, the terms “Account”, “Chattel Paper”, “Commercial Tort Claim”, “Deposit Account”,
		

		
			
		

		
			

		 

		

			11

		

		

		
			“Document”, “Electronic Chattel Paper”, “Equipment”, “General Intangible”, “Goods”, “Instrument”, “Inventory”,  “Investment Property”, “Letter-of-Credit Right”, “Proceeds”, “Record” and “Supporting Obligation” shall have their respective meanings set forth in the UCC.
		

		
			Section 10.2      Purpose.  The purpose of this Agreement is commercial in nature and not for household, family and/or personal use.
		

		
			Section 10.3      Power of Attorney.  In order to carry out this Agreement, Client irrevocably appoints Purchaser, or any Person designated by Purchaser, as its special attorney in fact, or agent, with power to:
		

		
			(a)         forward to Client (if appropriate) all mail addressed to Client (including any trade name of Client) sent to Purchaser’s address.  Any payments received shall be processed in accordance with this Agreement;
		

		
			(b)         endorse the name of Client or Client’s trade name on any checks or other items of payment that may come into the possession of Purchaser with respect to any Purchased Account and on any other documents relating to any of the Purchased Assets;
		

		
			(c)         upon the occurrence and during the continuance of a Servicer Default or Notification Event,  in Client’s name, or otherwise, sue for, settle, collect and give releases for any and all moneys due or to become due on any Purchased Account or, in the case of a Notification Event, the Purchased Accounts to which such Notification Event applies; and
		

		
			(d)         upon the occurrence and during the continuance of any Servicer Default or termination of this Agreement, do any and all things necessary and proper to carry out this Agreement.
		

		
			This power, being coupled with an interest, is irrevocable while this Agreement remains in effect or any of the obligations under this Agreement or the Other Agreements remain outstanding.  Purchaser, as attorney-in-fact, shall not be liable for any errors of judgment or mistake of fact.
		

		
			Purchaser agrees to provide Client with written notice of any actions undertaken by Purchaser using the above power of attorney.
		

		
			Section 10.4      Successors and Assigns.  This Agreement binds and is for the benefit of the heirs, executors, administrators, successors and assigns of the parties hereto, except that Client shall not have the right to assign its rights hereunder or any interest herein without Purchaser’s prior written consent.
		

		
			Section 10.5      Cumulative Rights.  The rights, powers and remedies provided in this Agreement and in the Other Agreements are cumulative, may be exercised concurrently, or separately, may be exercised from time to time and in such order as Purchaser shall determine, subject to the provisions of this Agreement.  Purchaser’s failure or delay to exercise or enforce, in whole or in part, any right, power or remedy under this Agreement or any Other Agreement, shall not constitute a waiver thereof, nor preclude any other or further exercise thereof.
		

		
			Section 10.6      Waiver.  Purchaser shall not waive any of its rights and remedies unless the waiver thereof is in writing and signed by Purchaser.  A waiver by Purchaser of a right or remedy under this Agreement on one occasion shall not constitute a waiver of the right or remedy on any subsequent occasion.
		

		
			
		

		
			

		 

		

			12

		

		

		
			Section 10.7      Amendment.  Except as otherwise provided herein, this Agreement may not be supplemented, changed, waived, discharged, terminated, modified or amended, except by written instrument executed by Purchaser and Client.
		

		
			Section 10.8      Currency.  All Purchased Accounts and invoices, bills and statements with respect thereto shall be payable only in currency of the United States of America.  All payments required to be made by either party hereto under this Agreement shall be made only in currency of the United States of America.
		

		
			Section 10.9      Governing Law; Dispute Resolution.  This Agreement is made and is to be performed under the laws of the State of New York and shall be governed by and construed in accordance with said law, excluding any principles of any conflicts of laws or other rule of law that would result in the application of the law of any jurisdiction other than the laws of the State of New York. Client and Purchaser expressly submit and consent to the jurisdiction of the state and federal courts located in the County of New York, State of New York with respect to any controversy arising out of or relating to this Agreement or any Other Agreement amendment or supplement thereto or to any transactions in connection therewith.  Client and Purchaser irrevocably waive all claims, obligations and defenses that Client or Purchaser, as applicable, may have regarding such court’s personal or subject matter jurisdiction, venue or inconvenient forum.  Nothing herein shall limit the right of Purchaser to bring proceedings against Client in any other court.  Each of the parties to this Agreement hereby waives personal service of any summons or complaint or other process or papers to be issued in any action or proceeding involving any such controversy and hereby agrees that service of such summons or complaint or process may be made by registered or certified mail to the other party at the address appearing on the signature page hereto.
		

		
			Section 10.10    Severability of Provisions.  In the event any provision of this Agreement (or any part of any provision) is held by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision (or remaining part of the affected provision) of this Agreement, but this Agreement shall be construed as if such invalid, illegal or unenforceable provision (or part thereof) had not been contained in this Agreement, but only to the extent it is invalid, illegal or unenforceable.
		

		
			Section 10.11    Survival.  All covenants, representations and warranties made in this Agreement continue in full force until this Agreement has been terminated in accordance with its terms and all amounts payable under this Agreement and the Other Agreements (including, without limitation, all Indemnified Amounts) have been indefeasibly paid and satisfied in full in cash or other immediately available funds.  The obligation of Client in Article 9 to indemnify Purchaser shall survive until the statute of limitations with respect to any such claim or cause of action described in Article 9 shall have expired.
		

		
			Section 10.12    Entire Agreement.  This Agreement, together with the Other Agreements, is intended by Purchaser and Client to be a complete, exclusive and final expression of the agreements contained herein with respect to Purchaser’s purchase of Purchased Accounts from Client hereunder.  Neither Purchaser nor Client shall hereafter have any rights under any prior agreements pertaining to the matters addressed by this Agreement or the Other Agreements but shall look solely to this Agreement and the Other Agreements for definition and determination of all of their respective rights, liabilities and responsibilities under this Agreement and the Other Agreements.  THIS AGREEMENT AND THE OTHER AGREEMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
		

		
			
		

		
			

		 

		

			13

		

		

		
			Section 10.13    Data Transmission.  Purchaser assumes no responsibility for privacy or security risks as a result of the method of data transmission selected by Client.  Purchaser assumes no responsibility for privacy or security for data transmitted from Purchaser to Client once the data is dispensed from Wells Fargo Bank, National Association’s internal network.
		

		
			Section 10.14    Information.  Without limiting Purchaser’s right to share information regarding Client and its affiliates with Purchaser’s agents, accountants, lawyers and other advisors, Client agrees that Wells Fargo & Co., and all direct and indirect subsidiaries of Wells Fargo & Co., may, among themselves, discuss or otherwise utilize any and all information they may have in their possession regarding Client, and Client waives any right of confidentiality Client may have with respect to such exchange of such information.
		

		
			Section 10.15    Notice.  Unless otherwise specified herein, all notices pursuant to this Agreement  shall be in writing and sent either (a) by hand, (b) by certified mail, return receipt requested, or (c) by recognized overnight courier service, to the other party at the address set forth herein, or to such other addresses as a party may from time to time furnish to the other party by notice.  Any notice hereunder shall be deemed to have been given on (i) the fifth (5th) Business Day after it is hand delivered, (ii) the seventh (7th) Business Day after it is deposited in the U.S.  Mail, if sent as aforesaid, or (iii) five (5) Business Days after it is delivered to a recognized overnight courier service with instructions for next day delivery.
		

		
			Section 10.16   Counterparts.  This Agreement may be executed in any number of duplicate originals or counterparts, each of which shall be deemed to be an original and all taken together shall constitute but one and the same instrument.  Client agrees that a facsimile or electronic transmission of any signature of Client shall be effective as an original signature thereof.  Purchaser agrees that a facsimile or electronic transmission of this Agreement executed by Purchaser shall be effective as an original signature thereof.
		

		
			Section 10.17    Headings.  The headings set forth herein are for convenience only and shall not be deemed to define, limit or describe the scope or intent of this Agreement.
		

		
			Section 10.18    Retention of Records.  Purchaser shall have no obligation to maintain electronic records or retain any documents, schedules, invoices, agings or other records delivered to Purchaser by Client in connection with this Agreement or any other document or agreement described in or related to this Agreement beyond the time periods set forth for retention of records in Purchaser’s internal policies.
		

		
			Section 10.19    USA PATRIOT Act Notice.  Purchaser hereby notifies Client that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies Client, which information includes the name and address of Client and other information that will allow Purchaser to identify Client in accordance with the Patriot Act.
		

		
			Section 10.20    Sanctioned Persons and Sanctioned Entities.  Notwithstanding anything to the contrary herein, in no event shall Purchaser be deemed to have purchased any Account with respect to which the Customer or Customer Affiliate is a Sanctioned Person or Sanctioned Entity, regardless of whether such Account is submitted or reflected in a schedule submitted to Purchaser, and any purported assignment or sale of any such Account to Purchaser shall be void ab initio.
		

		
			Section 10.21    Confidentiality.  The Purchaser shall hold all non-public information confidential regarding each Client and its business, identified as such thereby and obtained by the Purchaser pursuant to the requirements hereof, in accordance with its customary procedures for handling confidential information of such nature, it being understood and agreed by each Client that, in any event,
		

		
			
		

		
			

		 

		

			14

		

		

		
			the Purchaser (a) may make disclosures of such nonpublic information (i) to its affiliates and to the Purchaser’s and its affiliates’ respective employees, legal counsel, independent auditors and other experts or agents and advisors or to the Purchaser’s current or prospective funding sources and to other Persons authorized by the Purchaser to organize, present or disseminate such information in connection with disclosures otherwise made in accordance with this Section (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such information and instructed to keep such information confidential); (ii) to any actual or potential assignee, or transferee of any rights, benefits, interests and/or obligations under this Agreement or to any direct or indirect contractual counterparties (or the professional advisors thereto) in swap or derivative transactions related hereto (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such information and instructed to keep such information confidential), (iii) as required or requested by any regulatory authority purporting to have jurisdiction over the Purchaser or its affiliates (including any self-regulatory authority); provided, unless prohibited by applicable law or court order, the Purchaser shall make reasonable efforts to notify the applicable Client of any request by such regulatory authority (other than any such request in connection with any examination of the financial condition or other routine examination of the Purchaser by such regulatory authority) for disclosure of any such non-public information prior to the actual disclosure thereof; (iv) to the extent required by order of any court, governmental agency or representative thereof or in any pending legal or administrative proceeding, or otherwise as required by applicable law or judicial process; provided, unless prohibited by applicable law or court order, the Purchaser shall make reasonable efforts to notify the applicable Client of such required disclosure prior to the actual disclosure of such non-public information, (v) in connection with the exercise of any remedies hereunder or any action or proceeding relating to this Agreement or any Other Agreement or the enforcement of rights hereunder or thereunder, (vi) with the consent of the applicable Client, or (vii) to the extent such information (A) becomes publicly available other than as a result of a breach of this Section, (B) becomes available to the Purchaser or any of its affiliates on a non-confidential basis from a source other than the applicable Client unless the Purchaser or such Lender has knowledge that such source is subject to an obligation to such Client to keep such information confidential, or (C) is independently developed by the Purchaser; (b) may disclose the existence of this Agreement and the information about this Agreement to market data collectors and similar service providers to the lending industry (including for league table designation purposes) and to service providers to the Purchaser in connection with the administration and management of this Agreement and the Other Agreements; and (c) may (at its own expense) place advertisements in financial and other newspapers and periodicals or on a home page or similar place for dissemination of information on the Internet or worldwide web as it may choose, and circulate similar promotional materials, in the form of a “tombstone” or otherwise describing the names of each Client and the amount, type and closing date with respect to the transactions contemplated hereby.
		

		
			ARTICLE 11
		

		
			APPOINTMENT AND DUTIES OF SERVICER
		

		
			Section 11.1      Appointment of Servicer.  The servicing, administering and collection of the Purchased Accounts shall be conducted by such Person so designated from time to time as Servicer in accordance with this Article  11.  Until Purchaser gives notice to Client of the designation of a new Servicer, which notice may be given at any time during the continuance of a Servicer Default, Parent is hereby designated as, and agrees to perform the duties and obligations of, Servicer pursuant to the terms  hereof.  Servicer may not delegate any of its rights, duties or obligations hereunder, or designate a substitute Servicer, without the prior written consent of Purchaser.  Purchaser may, at any time during the continuance of a Servicer Default,  designate as Servicer any Person (including Purchaser) to succeed
		

		
			
		

		
			

		 

		

			15

		

		

		
			Client or any successor Servicer, on the condition that any such Person so designated shall agree to perform the duties and obligations pursuant to the terms hereof.
		

		
			Section 11.2      Duties of Servicer.  Servicer shall take or cause to be taken all such action as may be necessary or required to collect each Purchased Account from time to time, all in accordance in all material respects with the provisions of the Servicer Collection Procedures and applicable laws, rules and regulations, and with due care and diligence.  Purchaser hereby appoints as its agent the Servicer, from time to time designated pursuant to Section 11.1 hereof, to enforce Purchaser’s rights and interests in and under the Purchased Accounts and Related Assets.  To the extent permitted by applicable law, Purchaser hereby grants to Servicer a power of attorney to take in Purchaser’s name and on behalf of the Client any and all steps necessary or desirable, in the reasonable determination of Servicer, to collect all amounts with respect to the Purchased Accounts and Related Assets. Servicer shall hold in trust for Purchaser all records which evidence or relate to Purchased Accounts or any other Purchased Assets.
		

		
			Section 11.3      Additional Covenants of Servicer.  Servicer shall (a) give Purchaser at least three (3) Business Days prior written notice of any agreement with a Customer to reduce the amount of or delay the payment of any Purchased Account or any other action that could reasonably be expected to result in the reduction in the amount of or the delay in the payment of any Purchased Account, (b) deliver to Purchaser at least thirty (30) days’ advance written notice of any change to the Collection Accounts, (c) not make Purchaser a party to any litigation without the prior written consent of such Person, (d) no later than three (3) Business Days after receipt  by Servicer or Client of any proceeds of Purchased Assets, Servicer shall remit such proceeds to Purchaser, by wire transfer to the WFB Bank Account, together with all remittance information received by Client or Servicer from Customer with respect to such proceeds and (e) on the Monday of each week, deliver to Purchaser a report of all Purchased Accounts for which the Settlement Date has not occurred.  In addition, Servicer shall email all such remittance information to the following email address:
		

		
			Conor.Bannigan@wellsfargo.com
		

		
			Section 11.4      Servicer Default.  The occurrence of any one or more of the following events shall constitute a servicer default (each, a “Servicer Default”):
		

		
			(a)         Servicer shall fail to make any payment or deposit required to be made by it hereunder when due;
		

		
			(b)         Servicer fails to perform any of the duties contained in Section 11.2  and such failure continues unremedied for Five (5) Business Days; provided, that, such Five (5) Business Day period shall not apply in the case of an intentional breach by Servicer of any such duties;
		

		
			(c)         Servicer fails to perform any of the covenants contained in Section 11.3 hereof;
		

		
			(d)         any representation, warranty, certification or statement made by a  Servicer in this Agreement, any Other Agreement or in any other document delivered pursuant hereto or thereto shall prove to have been incorrect in any material respect when made or deemed made;
		

		
			(e)         Servicer shall amend, restate, supplement, substitute or otherwise modify, in any material respect, the Servicer Collection Procedures without the prior written consent of Purchaser;
		

		
			
		

		
			

		 

		

			16

		

		

		
			(f)         (i) the commencement or consent to the commencement of a case or proceeding by Servicer under the U.S. Bankruptcy Code or any similar statute, or (ii) the commencement of a case or proceeding by any Person against Servicer under the U.S. Bankruptcy Code or any similar statute that continues undismissed or unstayed for sixty (60) calendar days, or an order for relief is entered in any such proceeding;
		

		
			(g)         Client shall execute or deliver in favor of any Person, other than Purchaser, a deposit account control agreement (or similar agreement) with respect to any Collection Account;
		

		
			(h)         Client shall factor with or sell to any Person other than Purchaser any Account due from a Customer who is also obligated in respect of a Purchased Account or Approved Account;
		

		
			(i)          the Syndicated Facility Lenders (or any of them), or any factor or lender to Client, shall direct or instruct any Customer obligated in respect of a Purchased Account or Approved Account to remit payment of any Account other than to the Collection Accounts;
		

		
			(j)          The occurrence of an Insolvency Event with respect to Servicer or a Customer of a Purchased Account or Approved Account; or
		

		
			(k)         The occurrence of any event or circumstance set forth in Section 8.1.2 of this Agreement (other than subsection (a) thereof).
		

		
			Section 11.5      Cooperation and Further Assurances.  Purchaser may, in its sole discretion at any time during the continuance of a Servicer Default, advise the Servicer of Purchaser’s election to replace the Servicer with Purchaser or such other Person as Purchaser may select.  From and after the effective date of any such replacement, Servicer shall cooperate with Purchaser and/or any replacement Servicer, shall not interfere with Purchaser’s or any such replacement Servicer’s collection of the Purchased Accounts and all Related Assets, shall promptly remit to Purchaser, in accordance with Purchaser instructions, the Proceeds of any Purchased Assets received by Servicer, and shall perform any and all actions reasonably requested by Purchaser and any such replacement Servicer in connection with or related to the collection of any Purchased Accounts and Related Assets, including, without limitation, informing Customers of the replacement Servicer and any changes in remittance information as may be required by Purchaser, in its sole discretion.
		

		
			ARTICLE 12
		

		
			JOINT AND SEVERAL LIABILITY
		

		
			Section 12.1      Joint and Several. Each Client hereby unconditionally and irrevocably agrees to be jointly and severally liable to Purchaser for the due and punctual performance and observance of financial obligations on the part of each Client to be performed or observed under this Agreement and the Other Agreements in accordance with the terms hereof and thereof, including the punctual payment when due of all financial obligations of each Client now or hereafter existing under this Agreement, whether for repurchase payments, indemnification payments, fees, expenses or otherwise, including attorneys’ fees and legal expenses (such terms, covenants, conditions, agreements, undertakings and other obligations being the “Obligations”). Each Client is, and hereby agrees to be, jointly and severally liable with each other Client including, without limitation, the Repurchase Price for Purchased Accounts from any Client and all fees, costs and expenses due from Client (or any Client) hereunder. In the event that any Client shall fail in any manner whatsoever to pay any of its Obligations when the same shall be due and payable under this Agreement or the Other Agreements, each Client agrees that it will itself duly and punctually
		

		
			
		

		
			

		 

		

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			perform or observe, or cause to be duly and punctually performed or observed, such Obligations. Any such payments by any such Client shall be made to such account as Purchaser may specify from time to time on demand. Each Client agrees that Purchaser may call upon any Client to perform the Obligations of any other Client as a primary obligor for such Obligations. Each Client further agrees that it shall, upon demand by Purchaser, perform all Obligations of any other Client.
		

		
			 
		

		
			[Signature pages follow]
		

		
			 
		

		
			 
		

		
			

		 

		

			18

		

		

		
			IN WITNESS WHEREOF, the parties hereto have signed and sealed this Agreement on the day and year first above written.
		

		
			CLIENT:
		

			
					
						GATR TECHNOLOGIES, INC.

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Address for Client:

					
					
						 

				
	
					
						9333 Balboa Ave.

					
					
						 

				
	
					
						San Diego, CA 92123

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						SERVICER:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						CUBIC CORPORATION

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Address for Servicer:

					
					
						 

				
	
					
						9333 Balboa Ave.

					
					
						 

				
	
					
						San Diego, CA 92123

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						PURCHASER:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						WELLS FARGO BANK, NATIONAL ASSOCIATION

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Address for Purchaser:

					
					
						 

				
	
					
						1753 Pinnacle Drive, 8th Floor

					
					
						 

				
	
					
						McLean, VA 22102

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Effective Date: September ___, 2019.

					
					
						 

				

		
			 
		

		
			 
		

		
			

		 

		

			[Signature Page to Account Purchase Agreement]

		

		

		
			Rider A
		

		
			To
		

		
			Account Purchase Agreement
		

		
			Between
		

		
			Wells Fargo Bank, National Association
		

		
			And
		

		
			GATR TECHNOLOGIES, INC
		

		
			 
		

		
			DEFINITIONS
		

		
			“Adjusted Face Amount” means, with respect to any Account, the gross face amount of such Account less the aggregate amount of any returns, trade discounts (which may be calculated on the shortest or longest terms, at Purchaser’s option), credits or allowances, reductions or adjustments taken by or granted to the Customer, and any other charges with respect to such Account.
		

		
			“Anti-Corruption Laws” means: (a) the U.S. Foreign Corrupt Practices Act of 1977, as amended; (b) the U.K. Bribery Act 2010, as amended; and (c) any other anti-bribery or anti-corruption laws, regulations or ordinances in any jurisdiction in which Client or any member of the Client Group is located or doing business.
		

		
			“Anti-Money Laundering Laws” means applicable laws or regulations in any jurisdiction in which Client or any member of the Client Group is located or doing business that relates to money laundering, any predicate crime to money laundering, or any financial record keeping and reporting requirements related thereto.
		

		
			 “Approved Account”  has the meaning set forth in Section 1.2 of this Agreement.
		

		
			“Agreement” means this Account Purchase Agreement, together with all schedules and riders annexed hereto, as amended, restated, renewed, replaced, substituted, supplemented or otherwise modified from time to time.
		

		
			“Ancillary Documents” means, with respect to any Purchased Account, such documents as may be required and in form and content reasonably satisfactory to Purchaser, including, without limitation, copies of all invoices (or the equivalent thereof if the invoices were sent electronically) evidencing such Account and evidence of the shipment of the goods, fulfillment of the contract of sale or performance of the services giving rise to such Account.
		

		
			“Beneficial Ownership Certification” means a certification regarding beneficial ownership required by the Beneficial Ownership Regulation, which certification shall be substantially similar in form and substance to the form of Certification Regarding Beneficial Owners of Legal Entity Customers published jointly, in May 2018, by the Loan Syndications and Trading Association and Securities Industry and Financial Markets Association.
		

		
			“Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.
		

		
			 “Business Day” means any day other than a Saturday, Sunday or other day on which Purchaser is required by law to close.
		

		
			“Change of Terms” shall have meaning ascribed to such term in Section 1.2 of this Agreement.
		

		
			“Client” shall have the meaning set forth in the introductory paragraph of this Agreement.
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

			

					

						 

					

					

						[Rider A]

				

		

			 

		

		

		
			“Client Ledger Account” means, collectively, one or more ledger accounts established on the books of Purchaser in the name of Client.
		

		
			“Collection Accounts” means the accounts into which checks, remittances and other items of payment and other Proceeds of Purchased Assets are to be deposited, including the accounts listed on Schedule 2.2 hereto and such other accounts as may be added in accordance with Section 2.2.2.
		

		
			“Commercial Dispute” means any dispute or claim in any respect, regardless of merit, (including, without limitation, any alleged dispute as to price, invoice terms, quantity, quality or late delivery and claims of release from liability, counterclaim or any alleged claim of deduction, offset, or counterclaim or otherwise) arising out of or in connection with a Purchased Account or any other transaction related thereto.  In the event that a Purchased Account is at any time reflected as “processed” in Wide Area Work Flow (or any successor system), it shall constitute a Commercial Dispute if at any time thereafter such Purchased Account is no longer reflected as “processed”, or the status of such Purchased Account is reflected as anything other than “processed”, in Wide Area Work Flow (or any successor system).
		

		
			“Commission”  means the Commission set forth on the Schedule of Economic and Other Terms annexed hereto.
		

		
			“Contract Quarter” shall mean the three (3) month period commencing on the Effective Date and each successive three (3) month period thereafter during the Term.
		

		
			“Contract Year” shall mean the twelve (12) month period commencing on the Effective Date and each successive twelve (12) month period thereafter during the Term.
		

		
			“Conversion Date” shall mean, with respect to any Unbilled Account, the Business Day on which Purchaser receives from Client (or, if such receipt occurs after 3 p.m. eastern time, the Business Day following such receipt) evidence, reasonably satisfactory to Purchaser, of the issuance of an invoice for such Account.
		

		
			“Credit Risk” means the risk of non-payment of a Purchased Account due solely to an Insolvency Event of the Customer obligated thereon or to non-payment of such Purchased Account where such Customer has not asserted and does not assert a Commercial Dispute.
		

		
			“Customer” shall mean a Person that purchases goods or services from Client.
		

		
			“Discount Fee” has the meaning ascribed to such in the Schedule of Economic and Other Terms annexed hereto.
		

		
			“Discount Rate” means the Discount Rate set forth on the Schedule of Economic and Other Terms annexed hereto.
		

		
			“Effective Date” means the date on which Purchaser executes this Agreement as set forth below Purchaser’s signature block on the signature page of this Agreement.
		

		
			“Financial Statements” means collectively, a balance sheet, income statement, statement of shareholder’s equity and statement of cash flow.
		

		
			“GAAP” means generally accepted accounting principles as in effect from time to time in the United States of America, consistently applied.
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

			

					

						 

					

					

						2

					

					

						[Rider A]

				

		

			 

		

		

			 

		

		

		
			“Governmental Authority” means any federal, state, local, or other governmental or administrative body, instrumentality, board, department, or agency or any court, tribunal, administrative hearing body, arbitration panel, commission, or other similar dispute-resolving panel or body.
		

		
			 “Indemnified Amount” has the meaning set forth in Section 9.1 of this Agreement.
		

		
			“Indemnified Person” means each of Purchaser and its affiliates, and its and their respective shareholders, directors, officers, employees, attorneys and agents.
		

		
			“Initial Payment” means, with respect to any Purchased Account purchased by Purchaser under this Agreement, (a) the Adjusted Face Amount multiplied by (b) the Purchase Price Rate.
		

		
			“Initial Term”  means the Initial Term set forth on the Schedule of Economic and Other Terms annexed hereto.
		

		
			“Insolvency Event” means, with respect to any Person, any of the following: (a) any case or proceeding with respect to such Person under the U.S.  Bankruptcy Code or any other Federal, State or foreign bankruptcy, insolvency, reorganization or other law affecting creditors’ rights generally or any other or similar proceedings, (b) any proceeding seeking the appointment of any trustee, receiver, administrator, manager, liquidator, custodian or other insolvency official with similar powers with respect to such Person or any of its assets, (c) any assignment for the benefit of creditors, or (d) such Person shall take any action to authorize any of the actions set forth clauses (a), (b) or (c) in this definition.
		

		
			 “LIBOR Rate” means, for any date of determination, the one (1) month average of rates which are listed as the One  (1) Month “London Interbank Offered Rate (LIBOR)” (for Dollars), as published in the Money Rates section of The Wall Street Journal on such date of determination (rounded up to the nearest thousandth).  When interest or any fee hereunder is determined in relation to the LIBOR Rate, each change in such interest rate or fee shall become effective each Business Day that Purchaser determines that the LIBOR Rate has changed.
		

		
			“Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment, charge, deposit arrangement, encumbrance, easement, lien (statutory or other), security interest, or other security arrangement and any other preference, priority or preferential arrangement of any kind or nature whatsoever, including, without limitation, any conditional sale contract or other title retention agreement, the interest of a lessor under a capital lease and any synthetic or other financing lease having substantially the same economic effect as any of the foregoing.
		

		
			“Liquidity” means, as of any date of determination, the amount then available to Client for borrowing under the Syndicated Facility Agreement.
		

		
			“Material Adverse Change” means (a) a material adverse change in the business, operations, assets, or condition (financial or otherwise) of Client taken as a whole, (b) a material adverse change of Client’s ability to perform its obligations under this Agreement or the Other Agreements to which it is a party, or (c) a material adverse change of the enforceability of, or the rights, remedies or benefits available to Client, or Purchaser as assignee of Client, with respect to the Purchased Account or the Related Assets.
		

		
			 “Maximum Facility Amount” means the Maximum Facility Amount set forth on the Schedule of Economic and Other Terms annexed hereto.
		

		
			“Minimum Fee Amount” means the Minimum Fee Amount set forth on the Schedule of Economic and Other Terms annexed hereto.
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

			

					

						 

					

					

						3

					

					

						[Rider A]

				

		

			 

		

		

			 

		

		

		
			“Notification Event” means, with respect to any Purchased Account, (a) such Purchased Accounts remains unpaid 90 or more days from the invoice date thereof or (b) the occurrence of an Insolvency Event with respect to the Customer of such Purchased Account.
		

		
			 “OFAC” means The Office of Foreign Assets Control of the U.S.  Department of the Treasury.
		

		
			“Other Agreements” means collectively, this Agreement, and all schedules and/or riders attached hereto, and any Ancillary Document, any supplement, agreement, notes, subordination agreement or other such instruments now or hereafter executed by Client or any Performance Guarantor in connection with this Agreement, all as amended, restated, renewed, replaced, substituted, supplemented or otherwise modified.
		

		
			“Outstanding Account Balance” means, as of any date of determination, (a) the aggregate Repurchase Price of all Purchased Accounts for which the Settlement Date has not occurred (assuming for this purpose that repurchase were required), plus (b) the aggregate Repurchase Price of all Purchased Accounts for which the Settlement Date has occurred if such Purchased Accounts are then actually subject to a Repurchase Event, plus (c) all accrued and unpaid fees, costs and expenses payable by Client to Purchaser hereunder as of such date of determination.
		

		
			 “Outside Date” means, with respect to any Purchased Account, 150 days after the due date of such Purchased Account.
		

		
			“Parent” means Cubic Corporation, a Delaware corporation.
		

		
			“Patriot Act” means that certain act, as amended or modified from time to time, entitled “Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001”.
		

		
			“Performance Guarantor” means any Person that now or hereafter executes a Performance Undertaking in favor of Purchaser.
		

		
			“Performance Undertaking” means each guaranty of the performance of the obligations of Client under this Agreement and the Other Agreements executed by a Performance Guarantor for the benefit of Purchaser, as amended, restated, renewed, replaced, substituted, supplemented or otherwise modified.
		

		
			“Permitted Liens” mean, collectively, Liens in favor of Purchaser.
		

		
			“Person” means and includes an individual, a corporation, a partnership, a joint venture, a limited liability company or partnership, a trust, an unincorporated association, a Governmental Authority or any other organization or entity.
		

		
			“Purchase Limit” has the meaning set forth in Section 1.2 of this Agreement.
		

		
			“Purchase Price” means, for any Purchased Account purchased by Purchaser under this Agreement,  the sum of the Initial Payment for such Purchased Account plus the Settlement Date Payment for such Purchased Account.
		

		
			“Purchase Price Rate” means the Purchase Price Rate set forth on the Schedule of Economic and Other Terms annexed hereto.  The Purchase Price Rate may be adjusted at any time and from time to time by Purchaser.
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

			

					

						 

					

					

						4

					

					

						[Rider A]

				

		

			 

		

		

			 

		

		

		
			“Purchased Account” has the meaning set forth in Section 1.1 of this Agreement.
		

		
			“Purchased Assets” means the Purchased Accounts  and the Related Assets purchased under this Agreement which has not been repurchased by Client in accordance with the terms hereof.
		

		
			“Purchaser” shall have the meaning set forth in the introductory paragraph of this Agreement.
		

		
			“Related Assets” means, with respect to each Purchased Account purchased by Purchaser hereunder, the following assets and properties of Client, wherever located, whether now owned or hereafter acquired or arising: (a) Chattel Paper, Documents, General Intangibles, Commercial Tort Claims, Instruments and Supporting Obligations, in each instance, to the extent evidencing, governing, securing or relating to such Purchased Account, (b) Inventory or Goods returned or rejected by a Customer of such Purchased Account, or reclaimed, repossessed or recovered from any such Customer by Client, to the extent that Purchaser has not received the Repurchase Price of such Purchased Account (c) reserves, matured funds, credit balances and other property of Client in Purchaser’s possession, (d) deposit accounts constituting proceeds of such Purchased Account, (e) all Records relating to any of the foregoing, (f) all contract rights of Client relating to such Purchased Account, (g) all rights and remedies of Client against the Customer of an/or third parties obligated on such Purchased Account or the Goods associated therewith, and (h) all Proceeds and rights relating to any of the foregoing.
		

		
			“Renewal Term” means the Renewal Term set forth on the Schedule of Economic and Other Terms annexed hereto.
		

		
			“Repurchase Event” shall mean, as to any Purchased Account, at any time: (a) any breach in any respect of any of the representations or warranties set forth in Rider B1 annexed hereto with respect to such Purchased Account or any Related Assets, or any breach in any material respect by Client or Servicer of any other representation or warranty set forth herein or in any of the Other Agreements with respect to such Purchased Account or any Related Assets; (b) Client or Servicer fails to comply with any of its covenants or obligations with respect to such Purchased Account beyond any applicable cure period; (c) Servicer fails to comply with Section 11.3(d) of this Agreement; (c) the amount of such Purchased Account (in whole or in part) is reduced, delayed or otherwise adjusted on account of any defective, damaged, rejected, returned, repossessed or foreclosed Goods or services, any discount or allowance granted or taken after purchase of the Purchased Account by Purchaser, any incorrect billings or other adjustments or setoffs in respect of any claims by the Customer or any shipping charge, tax, duty or other fee or payment of any kind; (d) a Customer asserts a Commercial Dispute with respect to such Purchased Account, (e) Purchaser is unable to verify the balance of such Purchased Account or the face amount of such Purchased Account is otherwise less than the amount reported by Client or Servicer to Purchaser; (f) such Purchased Account is or becomes subject to a Change of Terms that is not approved in writing by Purchaser; or (g) Client fails to promptly provide to Purchaser any Ancillary Documents, in form and content satisfactory to Purchaser.  In the event of any fact or circumstance constituting a Repurchase Event for a Purchased Account, it shall constitute a Repurchase Event for such Purchased Account notwithstanding that the Customer of such Purchased Account may be subject to an Insolvency Event, that such Purchased Account may be unpaid on or after the Outside Date or that the Settlement Date of such Purchased Account may have already occurred.
		

		
			“Repurchase Price” means for any Purchased Account purchased hereunder, an amount equal to (a) the sum of the Initial Payment paid by Purchaser with respect to such Purchased Account and the Settlement Date Payment, if any, paid by Purchaser with respect to such Purchased Account, minus (b) the lesser of clause (a) and any amounts received by Purchaser with respect to payment of such Purchased Account.
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

			

					

						 

					

					

						5

					

					

						[Rider A]

				

		

			 

		

		

			 

		

		

		
			 “Sanction” or “Sanctions” means individually and collectively, respectively, any and all economic or financial sanctions, sectoral sanctions, secondary sanctions, trade embargoes and anti-terrorism laws, including but not limited to those imposed, administered or enforced from time to time by:  (a) the United States of America, including those administered by OFAC, the U.S. State Department, the U.S. Department of Commerce, or through any existing or future executive order, (b) the United Nations Security Council, (c) the European Union, (d) the United Kingdom, or (e) any other governmental authorities with jurisdiction over Purchaser, Client or any member of the Client Group.
		

		
			  “Sanctioned Entity” means (a) a country or a government of a country, (b) an agency of the government of a country, (c) an organization directly or indirectly controlled by a country or its government, (d) a Person resident in or determined to be resident in a country, in each case, that is subject to a country sanctions program administered and enforced by OFAC.
		

		
			“Sanctioned Person” means any Person that is a target of Sanctions, including without limitation, a Person that is: (a) listed on OFAC’s Specially Designated Nationals and Blocked Persons List; (b) listed on OFAC’s Consolidated Non-SDN List; (c) a legal entity that is deemed by OFAC to be a Sanctions target based on the ownership of such legal entity by Sanctioned Peron(s); or (d) a Person that is a Sanctions target pursuant to any territorial or country-based Sanctions program.
		

		
			 “Servicer” means Parent,  together with any replacement or successor Servicer appointed pursuant to the terms hereof.
		

		
			“Servicer Collection Procedures” means Servicer’s written internal credit and collections policies with respect to Approved Accounts, which have been approved by Purchaser, from time to time, in Purchaser’s reasonable discretion.
		

		
			“Servicer Default” shall have the meaning give thereto in Section 11.4 hereof.
		

		
			“Settlement Date” shall mean, with respect to any Purchased Account, the earliest to occur of:
		

		
			(a) the Business Day on which full payment of such Account is received by Purchaser in the WFB Bank Account in immediately available funds (or, if such payment is received after 1 p.m. (N.Y. time), the next Business Day).  Client acknowledges and agrees that the deposit or remittance of a payment into a Collection Account does not constitute receipt by Purchaser of such deposit or payment; and
		

		
			(b) the first Business Day following the Outside Date for such Account so long as the Customer thereof has not alleged or asserted a Commercial Dispute; and
		

		
			(c) the first Business Day of the month following the date that a Customer who is subject to an Insolvency Event files, with the court having jurisdiction over such Insolvency Event and without such Customer asserting a Commercial Dispute with respect to such Purchased Account, its Schedules of Assets and Liabilities (or substantially similar schedules) or, if no such Schedules of Assets and Liabilities (or substantially similar schedules) are required to be filed by or against a Customer, the first Business Day of the month following the date on which such Customer commenced or became subject to the proceeding that resulted in such Insolvency Event.
		

		
			“Settlement Date Payment” shall mean an amount equal to 100% of the Adjusted Face Amount of such Purchased Account minus the Initial Payment of the Purchase Price of such Purchased Account.
		

		
			“Syndicated Facility Agreement” means the Fourth Amended and Restated Credit Agreement, dated as of April 30, 2019, by and among Cubic Corporation, a Delaware corporation, Cubic Transportation Systems, Inc., a California Corporation, Cubic Defense Applications, Inc., a California
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

			

					

						 

					

					

						6

					

					

						[Rider A]

				

		

			 

		

		

			 

		

		

		
			corporation, each as borrowers, the Syndicated Facility Lenders, and JPMorgan Chase Bank, N.A., as administrative agent for the Syndicated Facility Lenders, as amended, restated, supplemented or modified from time to time, or refinanced or replaced.
		

		
			“Syndicated Facility Lenders” mean, collectively, the financial institutions from time to time party to the Syndicated Facility Loan Documents as lenders and any agent acting on behalf of such lenders pursuant to such Syndicated Facility Loan Documents, in each case, together with their successors and assigns.
		

		
			“Syndicated Facility Loan Documents” mean, collectively, (a) the Syndicated Facility Agreement, and (b) all agreements, documents and/or instruments executed in connection therewith or related thereto, in each case, as amended, restated, supplemented or modified from time to time, or refinanced or replaced.
		

		
			“Term” means, collectively, the Initial Term and any Renewal Term.
		

		
			“Termination Fee” means the Termination Fee set forth on Schedule 1.1 annexed hereto.
		

		
			“UCC” means, unless otherwise provided with this Agreement, the Uniform Commercial Code as adopted by and in effect from time to time in the State or Commonwealth referred to in Section 10.8, or in any other jurisdiction, as applicable.
		

		
			“Unbilled Account”  means an Account for which an invoice has not been issued.
		

		
			“WFB Bank Account” shall mean such bank account owned and maintained by Purchaser, in its name and for its benefit, and designated from time to time by Purchaser as the WFB Bank Account hereunder.  The WFB Bank Account shall initially be as follows:
		

			
					
						Bank Name:

					
					
						Wells Fargo Bank, NA

				
	
					
						Bank Address:

					
					
						420 Montgomery Street

				
	
					
						 

					
					
						San Francisco, CA

				
	
					
						Bank Country:

					
					
						USA

				
	
					
						Beneficiary Name:

					
					
						Wells Fargo Business Credit

				
	
					
						ABA No.:

					
					
						121000248

				
	
					
						Account No.:

					
					
						4121281877

				

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

			

					

						 

					

					

						7

					

					

						[Rider A]

				

		

			 

		

		

			 

		

		

		
			Rider B1
		

		
			To
		

		
			Account Purchase Agreement
		

		
			 
		

		
			CERTAIN REPRESENTATIONS AND WARRANTIES
		

		
			 
		

		
			Client hereby represents and warrants to Purchaser that as of each date of sale of a Purchased Account (and, with respect to clauses (b), (e), (g), (k), (q),  (r)  and (s) below, on each date thereafter until such Purchased Account is paid in full):
		

		
			 
		

		
			(a)         Client has good title to such Account, free of any lien, consignment arrangement, encumbrance or security interest, other than Permitted Liens;
		

		
			(b)         Client has not transferred, assigned or granted a lien or security interest in any such Account or the proceeds of any such Account to any party other than holders of Permitted Liens;
		

		
			(c)         Client has all necessary rights and authority to sell the full amount stated on each invoice evidencing such Account to Purchaser hereunder and such Account is legally saleable and assignable by Client, and the sale and assignment of such Account to Purchaser hereunder does not violate or breach the terms or conditions of any material agreement (including, for the avoidance of doubt, any Syndicated Facility Loan Documents or any factoring, loan or similar financing agreement), law or regulation which is binding upon or applicable to Client or by which Client is bound;
		

		
			(d)         Client has sold, assigned and transferred all right, title and interest of Client to such Account hereunder, so that, after giving effect to such sale, assignment and transfer, Purchaser shall be the absolute owner of such Account;
		

		
			(e)         Such Account evidences a bona fide, enforceable obligation created by the absolute sale and delivery of Goods or rendition of services by Client to its Customer in the ordinary course of Client’s business;
		

		
			(f)         Such Account does not represent Goods delivered upon “bill and hold”, “consignment”, “guaranteed sale”, “sale or return”, “payment on reorder” or similar terms;
		

		
			(g)         Client has fully completed or fully delivered the services or goods giving rise to such Account.  The Customer obligated in respect of such Account has accepted such goods or services, has not asserted a Commercial Dispute with respect to such Account, and is unconditionally obligated to pay at maturity the full amount of such Account without (regardless of merit and whether real or alleged) dispute, claim, offset, defense, deduction, rejection, recoupment, counterclaim or contra account, other than as to returns and allowances as provided in the Agreement;
		

		
			(h)         The Goods sold by Client giving rise to such Account were the exclusive property of Client;
		

		
			(i)          Such Account is due from a Customer located in the United States of America and its territories, and is payable solely in United States dollars;
		

		
			(j)          The invoice evidencing such Account, all Ancillary Documents and all other documents delivered by Client to Purchaser in connection therewith are (i) genuine and valid, (ii) are not mistaken, misleading, incorrect, incomplete or erroneous in any material respect and (iii) are not fraudulent in any respect;
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

			

					

						 

					

					

						 

					

					

						[Rider B1]

				

		

			 

		

		

			 

		

		

		
			(k)         Such Account and the invoice evidencing such Account have not been and shall not be altered or modified in any way without the prior written consent of Purchaser.
		

		
			(l)          Such Account was not past due when offered for sale to Purchaser hereunder;
		

		
			(m)        Such Account was not aged 90 or more days from the original invoice date when offered for sale to Purchaser hereunder;
		

		
			(n)         The selling terms of such Account do not exceed 45 days without the prior written consent of Purchaser;
		

		
			(o)         Such Account does not evidence a sale of Goods or rendition of services by Client to any subsidiary, affiliate or parent company of such Client;
		

		
			(p)         Such Account evidences the sale of Goods legally and validly purchased and, if applicable, imported by the applicable Customer to the United States or its territories;
		

		
			(q)         The Customer of such Account is not, and will not at any time prior to the Settlement Date thereof be, a Sanctioned Person or Sanctioned Entity;
		

		
			(r)         If Client is then acting as Servicer, Servicer has complied with the Servicer Collection Procedures with respect to such Account;
		

		
			(s)         If such Account is an Unbilled Account, (i) such Account is billable and will be billed within 30 days after the end of the month in which the goods or services giving rise thereto were delivered or rendered and (ii) the Customer of such Unbilled Account is a federal Governmental Authority; and
		

		
			(t)          Such Account does not represent a pre-billing or interim, milestone, progress billing.
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

			

					

						 

					

					

						2

					

					

						[Rider B1]

				

		

			 

		

		

			 

		

		

		
			Rider B2
		

		
			To
		

		
			Account Purchase Agreement
		

		
			 
		

		
			OTHER REPRESENTATIONS AND WARRANTIES
		

		
			1.          Client hereby represents and warrants to Purchaser that on the Effective Date and on each date of assignment to and purchase by Purchaser of each Purchased Account:
		

		
			(a)                      Client’s exact legal name is as set forth on the signature page of this Agreement;
		

		
			(b)                      Client is duly organized, validly existing and in good standing under the laws of its state of organization and its state of organization is as set forth in the preamble hereto;
		

		
			(c)                      Client is duly qualified to do business and is in good standing in each jurisdiction where its ownership of property or the conduct of its business requires such qualification, except for those jurisdictions where the failure to be so qualified would not reasonably be expected to result in a Material Adverse Change;
		

		
			(d)                      Client has all power and authority under the laws of Client’s jurisdiction of organization and its articles of organization or incorporation to conduct Client’s business and to enter into, execute and deliver this Agreement and the Other Agreements and to perform its obligations hereunder and thereunder, and has taken all necessary action to authorize the execution and delivery of this Agreement and the Other Agreements and the performance of its obligations hereunder and thereunder;
		

		
			(e)                      Client’s principal office and mailing address containing Client’s books and records concerning the Approved Accounts are located at the address set forth on the signature page for Client of this Agreement;
		

		
			(f)                       Client is and shall remain in material compliance with all applicable laws, regulations and rules to the extent that any material non-compliance therewith would have an Material Adverse Change on Client’s ability to perform its obligations under this Agreement;
		

		
			(g)                      Client is and at all times shall be solvent;
		

		
			(h)                      At the time of assignment of any Purchased Account by Client to Purchaser, Client will disclose to Purchaser in writing, any materially adverse or negative knowledge or information that Client may have with respect to the applicable Customer’s credit;
		

		
			(i)                       This Agreement, the Other Agreements and all addendums, supplements, and agreements executed or delivered in connection herewith, (1) are legally and validly binding upon and enforceable against Client in accordance with their respective terms except as may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and general equitable principles, (2) do not require the consent of any Governmental Authority or other Person for their effectiveness, and (3) do not violate or breach the terms or conditions of any material agreement, law or regulation which is binding upon or applicable to Client or by which Client is bound;
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

			

					

						 

					

					

						 

					

					

						[Rider B2]

				

		

			 

		

		

			 

		

		

		
			(j)                       No Material Adverse Change has occurred since the date of the most recent financial statements delivered to Purchaser under this Agreement;
		

		
			(k)                      There are no actions or proceedings pending or, to Client’s knowledge, threatened against or affecting Client, in which an adverse decision could reasonably be expected to cause a Material Adverse Change;
		

		
			(l)                       [intentionally omitted];
		

		
			(m)                     [intentionally omitted];
		

		
			(n)                      The aggregate Initial Payment of all Purchased Accounts for which a Settlement Date has yet to occur will not exceed the Maximum Facility Amount;
		

		
			(o)                      Each sale of Purchased Assets made by Client pursuant to this Agreement shall constitute a valid sale and assignment thereof by Client to Purchaser, enforceable against creditors of, and purchasers from, Client;
		

		
			(p)                      The aggregate Purchase Price of all Purchased Accounts constituting Unbilled Accounts for which a Settlement Date has yet to occur will not exceed $25,000,000; and
		

		
			(q)                      The aggregate Purchase Price of all Purchased Accounts for which a Settlement Date has yet to occur will not exceed the Maximum Facility Amount.
		

		
			2.          OFAC.  No Person within the Client Group (a) is a Sanctioned Person or Sanctioned Entity, has its assets located in Sanctioned Entities or derives revenues from investments in, or transactions with, Sanctioned Persons or Sanctioned Entities, (b) is controlled by or is acting on behalf of a Sanctioned Person or Sanctioned Entity, (c) is under investigation for an alleged breach of Sanction(s) by a governmental authority that enforces Sanctions, (d) will use any advances made hereunder or any portion of any Purchase Price of Accounts for the purpose of: (i) providing financing to or otherwise making funds directly or indirectly available to any Sanctioned Person or Sanctioned Entity, or (ii) providing financing to or otherwise funding any transaction which would be prohibited by Sanctions or would otherwise cause Purchaser or any other party to this Agreement, or any entity affiliated with any such party, to be in breach of any Sanction, (e) will fund any repayment of any advances made hereunder or other obligations under this Agreement with proceeds derived from any transaction that would be prohibited by Sanctions or would otherwise cause Purchaser or any other party to this Agreement, or any entity affiliated with any such party, to be in breach of any Sanction.  Client will notify Purchaser in writing not more than one (1) Business Day after becoming aware of any breach of any of the foregoing.
		

		
			3.          Anti-Money Laundering. Each of Client and each member of the Client Group: (a) has instituted, maintained and is complying with policies, procedures and controls reasonably designed to comply with all Anti-Corruption Laws and Anti-Money Laundering Laws, (b) is currently complying with, and will at all times comply with, all Anti-Corruption Laws and Anti-Money Laundering Laws, (c) will not use any advance made hereunder or any portion of any Purchase Price of Accounts in violation of any Anti-Corruption Laws or Anti-Money Laundering Laws, (d) will not fund any repayment of any advances made hereunder or other obligations under this Agreement in violation of any Anti-Corruption Laws or Anti-Money Laundering Laws, and (e) is not and has not been under administrative, civil or criminal investigation or received notice from or make a voluntary disclosure to any governmental entity regarding a possible violation of any Anti-Corruption Laws or Anti-Money Laundering Laws. Each member of the Client Group that qualifies as a “legal entity customer” under the Beneficial Ownership Regulation has delivered a Beneficial Ownership Certification in relation to such party.
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

			

					

						 

					

					

						2

					

					

						[Rider B2]

				

		

			 

		

		

			 

		

		

		
			4.          Foreign Corrupt Practices Act.  Neither Client, nor to the best of Client’s knowledge, any of its employees, officers or agents, has committed (or taken any action to promote or conceal) any violation of the Foreign Corrupt Practices Act, 15 U.S.C. § 78dd-1,-2.
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

			

					

						 

					

					

						3

					

					

						[Rider B2]

				

		

			 

		

		

			 

		

		

		
			Schedule 1.1
		

		
			to
		

		
			Account Purchase Agreement
		

		
			 
		

		
			SCHEDULE OF SELECTED ECONOMIC AND OTHER TERMS
		

		
			 
		

		
			This Schedule of Economic and Other Terms dated September 27, 2019  (this “Schedule”) shall constitute a supplement to and a part of the Account Purchase Agreement entered into among GATR TECHNOLOGIES, INC., an Alabama corporation (the “Client”) and Wells Fargo Bank, National Association (the “Purchaser”).  Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Account Purchase Agreement.  In the event that any term or provision of this Schedule conflicts with any term or provision of the Account Purchase Agreement, the term or provision of this Schedule shall control.
		

			
					
						Discount Rate:

					
					
						A rate per annum which is equal to the LIBOR Rate in effect from time to time plus 1.50%

				
	
					
						Minimum Fee Amount

					
					
						$200,000 each Contract Year

				
	
					
						Maximum Facility Amount:

					
					
						$50,000,000

				
	
					
						Purchase Price Rate:

					
					
						Up to 80% for Unbilled Accounts and up to 90% for all other Accounts.  

				
	
					
						Initial Term:

					
					
						Thirty six (36) months, commencing on the Effective Date.

				
	
					
						Renewal Term:

					
					
						Twelve (12) months, commencing on the first day after the last day of the Initial Term or the immediately preceding Renewal Term, as applicable.

				

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

			

					

						 

					

					

						 

					

					

						[Schedule 1.1]

				

		

			 

		

		

			 

		

		

		
			FEES AND COMMISSIONS
		

		
			Client shall pay to Purchaser each of the fees described below on the dates provided below.  Each fee shall be fully earned when due, may at the election of Purchaser be offset against any amount at any time owing by Purchaser to Client hereunder (including the Purchase Price of any Purchased Account), and shall not be subject to refund, rebate or proration for any reason whatsoever.
		

		
			1.          Annual Fee.  On the Effective Date, and on each annual anniversary of the Effective Date, Client shall be to Purchaser a facility fee equal to 0.225% of the Maximum Facility Amount, each of which shall be fully earned and payable when due.
		

		
			2.          Discount Fee.
		

		
			(a)         Client shall pay to Purchaser a per diem fee equal to: (a) the Outstanding Account Balance as of such date,  multiplied by (b) the Discount Rate,  divided by (c) 360 (the “Discount Fee”).  The Discount Fee shall accrue on a daily basis on the Outstanding Account Balance as of such date and shall be payable by Client to Purchaser monthly, on the last day of each month (except that, in the event of any breach or default by Client of this Agreement, the Discount Fee shall be payable upon demand). The Discount Fee may be charged by the Purchaser to the Client Ledger Account as and when due.
		

		
			(b)         If Client breaches, fails to comply with or is otherwise in default of any term, condition, provision, covenant, representation or warranty under this Agreement, without limiting Purchaser’s other rights and remedies hereunder, Purchaser may increase the Discount Rate by two (2) percentage points per annum, which increase shall be determined by Purchaser in its sole discretion (but in no event shall the Discount Rate be more than the highest lawful rate, if any, in effect from time to time for the obligations hereunder of the type, in the amount and for the purposes contemplated herein; it being agreed by Client that if Purchaser receives payment of a Discount Fee in excess of the highest lawful rate, Client’s sole remedy is to seek repayment of such excess and Client irrevocably waives any and all other rights and remedies which may be available to Client under law or in equity).
		

		
			3.          Minimum Fee.  On the last day of each Contract Year, and on the effective date of termination of this Agreement for the Contract Year to date, Client shall pay to Purchaser a fee equal to the difference between the Minimum Fee Amount and the aggregate Discount Fee paid by Client during such Contract Year (or Contract Year to date).
		

		
			 
		

		
			4.          Termination Fee.  In the event this Agreement is terminated by Client prior to the last day of the Initial Term, Client shall pay Purchaser a termination fee (the “Termination Fee”) in an amount equal to the Minimum Fee Amount multiplied by the number of Contract Quarters remaining in the Term.   Notwithstanding the foregoing, Purchaser agrees that if Client obtains financing from any subsidiary or other operating division of Wells Fargo Bank, National Association and such financing is utilized to pay and satisfy in full all liabilities, indebtedness and obligations owing by Client to Purchaser hereunder, and Client ceases selling Approved Accounts hereunder, the foregoing Termination Fee shall be waived.
		

		
			 
		

		
			5.          Increased Costs.  If any change in law shall: (a) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, Purchaser (except any reserve requirement reflected in the LIBOR Rate); or (b) impose on Purchaser or the London interbank market any other condition, cost or expense affecting this Agreement or the LIBOR Rate, and the result of any of the foregoing shall be to increase the cost to Purchaser of making or maintaining financing at the LIBOR Rate, or to increase the cost to Purchaser or to reduce the amount of any sum received or receivable by
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

			

					

						 

					

					

						2

					

					

						[Rider B2]

				

		

			 

		

		

			 

		

		

		
			Purchaser hereunder, then, upon request of Purchaser, Client will pay to Purchaser such additional amount or amounts as will compensate Purchaser for such additional costs incurred or reduction suffered.
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

			

					

						 

					

					

						3

					

					

						[Rider B2]

				

		

			 

		

		

			 

		

		

		
			Schedule 2.2
		

		
			[Collection Accounts]
		

		
			 
		

		
			 
		

		 

		

			 

		

		

			 

		

			

					

						 

					

					

						 

					

					

						[Schedule 2.2]

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