Form 8-K CAI International, Inc. For: Sep 09
Exhibit 4.1
CAL FUNDING IV LIMITED
Issuer
and
WILMINGTON TRUST, NATIONAL ASSOCIATION
Indenture Trustee
INDENTURE
Dated as of September 9, 2020
TABLE OF CONTENTS
Page
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ARTICLE I DEFINITIONS
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4
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Section 101.
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Defined Terms
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4
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Section 102.
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Other Definitional Provisions
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35 | |
Section 103.
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Computation of Time Periods
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36
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Section 104.
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Statutory References
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36 | |
Section 105.
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Duties of Manager Transfer Facilitator
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36 | |
ARTICLE II THE NOTES
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37
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Section 201.
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Authorization of Notes
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37
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Section 202.
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Form of Notes; Book-Entry Notes
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37 | |
Section 203.
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Execution, Recourse Obligation
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40 | |
Section 204.
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Certificate of Authentication
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41
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Section 205.
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Registration; Registration of Transfer and Exchange of Notes
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41 | |
Section 206.
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Mutilated, Destroyed, Lost and Stolen Notes
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43 | |
Section 207.
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Delivery, Retention and Cancellation of Notes
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44
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Section 208.
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ERISA Deemed Representations
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44 | |
ARTICLE III PAYMENT OF NOTES; STATEMENTS TO NOTEHOLDERS
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45 | ||
Section 301.
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Principal and Interest
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45 | |
Section 302.
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Trust Account
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45 | |
Section 303.
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Investment of Monies Held in the Trust Account, the Excess Funding Account, each Restricted Cash Account and each Series Accounts
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46 | |
Section 304.
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Copies of Reports to Noteholders and each Interest Rate Hedge Provider
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49 | |
Section 305.
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Records
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49 | |
Section 306.
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Excess Funding Account
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49 | |
Section 307.
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CUSIP Numbers
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50 | |
Section 308.
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No Claim
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50 | |
Section 309.
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Compliance with Withholding Requirements; Noteholder Information
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50 | |
Section 310.
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Tax Treatment of Notes
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51 | |
Section 311.
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Subordination
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51 | |
ARTICLE IV COLLATERAL
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51 | ||
Section 401.
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Collateral
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51 | |
Section 402.
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Pro Rata Interest
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53 | |
Section 403.
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Indenture Trustee’s Appointment as Attorney-in-Fact
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53 | |
Section 404.
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Release of Security Interest
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54 | |
Section 405.
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Administration of Collateral
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55 | |
Section 406.
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Quiet Enjoyment
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56 | |
Section 407.
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Intercreditor Collateral Agreement and Manager Transfer Facilitator Agreement
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56 |
TABLE OF CONTENTS
(continued)
(continued)
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ARTICLE V RIGHTS OF NOTEHOLDERS; ALLOCATION AND APPLICATION OF NET ISSUER PROCEEDS; REQUISITE GLOBAL MAJORITY
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56 | ||
Section 501.
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Rights of Noteholders
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56 | |
Section 502.
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Allocations Among Series
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56 | |
Section 503.
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Determination of Requisite Global Majority
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56 | |
ARTICLE VI COVENANTS
|
57 | ||
Section 601.
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Payment of Principal and Interest, Payment of Taxes
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57 | |
Section 602.
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Maintenance of Office
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57 | |
Section 603.
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Corporate Existence
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58 | |
Section 604.
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Protection of Collateral
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58 | |
Section 605.
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Performance of Obligations
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59 | |
Section 606.
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Negative Covenants
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59 | |
Section 607.
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Non-Consolidation of Issuer
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61 | |
Section 608.
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No Bankruptcy Petition; Independent Director
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62 | |
Section 609.
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Liens
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62 | |
Section 610.
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Other Indebtedness
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62 | |
Section 611.
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Guarantees, Loans, Advances and Other Liabilities
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62 | |
Section 612.
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Consolidation, Amalgamation, Merger and Sale of Assets; Ownership of the Issuer
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63 | |
Section 613.
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Other Agreements
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63 | |
Section 614.
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Charter Documents
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64 | |
Section 615.
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Capital Expenditures
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64 | |
Section 616.
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Permitted Activities
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64 | |
Section 617.
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Investment Company
|
64 | |
Section 618.
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Payments of Collateral
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64 | |
Section 619.
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Notices
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64 | |
Section 620.
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Books and Records
|
65 | |
Section 621.
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Taxes
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65 | |
Section 622.
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Subsidiaries
|
65 | |
Section 623.
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Investments
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65 | |
Section 624.
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Use of Proceeds
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65 | |
Section 625.
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Purchase of Additional Containers
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66 | |
Section 626.
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Financial Statements
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66 | |
Section 627.
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Sanctions.
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66 | |
Section 628.
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UNIDROIT Convention
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66 | |
Section 629.
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Other Information
|
66 | |
Section 630.
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Separate Identity
|
67 | |
Section 631.
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Amendment of Intercreditor Collateral Agreement; Termination of Management Agreement
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67 | |
Section 632.
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Tax Election of the Issuer
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67 | |
Section 633.
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Rating Agency Notices
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67 | |
Section 634.
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Compliance with Law
|
67 | |
Section 635.
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FATCA
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68 | |
Section 636.
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Inspections
|
68 |
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TABLE OF CONTENTS
(continued)
(continued)
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ARTICLE VII DISCHARGE OF INDENTURE; PREPAYMENTS
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69 | ||
Section 701.
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Full Discharge
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69 | |
Section 702.
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Optional Prepayment of Notes
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69 | |
Section 703.
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Unclaimed Funds
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69 | |
ARTICLE VIII DEFAULT PROVISIONS AND REMEDIES
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70 | ||
Section 801.
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Trust Events of Default
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70 | |
Section 802.
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Acceleration of Stated Maturity; Rescission and Annulment
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71 | |
Section 803.
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Collection of Indebtedness
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72 | |
Section 804.
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Remedies
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73 | |
Section 805.
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Indenture Trustee May Enforce Claims Without Possession of Notes
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75 | |
Section 806.
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Allocation of Money Collected
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75 | |
Section 807.
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Limitation on Suits
|
76 | |
Section 808.
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Unconditional Right of Holders to Receive Principal, Interest and Commitment Fees
|
76 | |
Section 809.
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Restoration of Rights and Remedies
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76 |
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Section 810.
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Rights and Remedies Cumulative
|
77 | |
Section 811.
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Delay or Omission Not Waiver
|
77 | |
Section 812.
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Control by Requisite Global Majority
|
77 | |
Section 813.
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Waiver of Past Defaults
|
77 | |
Section 814.
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Undertaking for Costs
|
78 | |
Section 815.
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Waiver of Stay or Extension Laws
|
78 | |
Section 816.
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Sale of Collateral
|
78 | |
Section 817.
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Action on Notes
|
79 | |
ARTICLE IX CONCERNING THE INDENTURE TRUSTEE
|
79 | ||
Section 901.
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Duties of Indenture Trustee
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79 | |
Section 902.
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Certain Matters Affecting the Indenture Trustee
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81 | |
Section 903.
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Indenture Trustee Not Liable
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84 | |
Section 904.
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Indenture Trustee May Own Notes
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85 | |
Section 905.
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Indenture Trustee Fees, Expenses and Indemnities
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85 | |
Section 906.
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Eligibility Requirements for Indenture Trustee
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85 | |
Section 907.
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Resignation and Removal of Indenture Trustee
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86 | |
Section 908.
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Successor Indenture Trustee
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86 | |
Section 909.
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Merger or Consolidation of Indenture Trustee
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87 | |
Section 910.
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Separate Indenture Trustees, Co-Indenture Trustees and Custodians
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87 | |
Section 911.
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Representations and Warranties
|
89 | |
Section 912.
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Indenture Trustee Offices
|
90 | |
Section 913.
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Notice of Trust Event of Default
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90 | |
ARTICLE X SUPPLEMENTAL INDENTURES
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90
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Section 1001.
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Supplemental Indentures Not Creating a New Series Without Consent of Holders
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90 | |
Section 1002.
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Supplemental Indentures Not Creating a New Series with Consent of Holders
|
92 |
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TABLE OF CONTENTS
(continued)
(continued)
Page
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Section 1003.
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Execution of Supplemental Indentures
|
93 | |
Section 1004.
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Effect of Supplemental Indentures
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93 | |
Section 1005.
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Reference in Notes to Supplemental Indentures
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93 | |
Section 1006.
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Issuance of Series of Notes
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93 | |
Section 1007.
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Amendments to Intercreditor Collateral Agreement
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95 | |
ARTICLE XI HOLDERS LISTS
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95 | ||
Section 1101.
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Indenture Trustee to Furnish Names and Addresses of Holders
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95 | |
Section 1102.
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Preservation of Information; Communications to Holders
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95 | |
ARTICLE XII TRUST EARLY AMORTIZATION EVENT
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95 | ||
Section 1201.
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Trust Early Amortization Event
|
95 | |
ARTICLE XIII MISCELLANEOUS PROVISIONS
|
96 | ||
Section 1301.
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Compliance Certificates and Opinions
|
96 | |
Section 1302.
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Form of Documents Delivered to Indenture Trustee
|
96 | |
Section 1303.
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Acts of Holders
|
97 | |
Section 1304.
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Limitation of Rights; Third Party Beneficiary.
|
97 | |
Section 1305.
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Severability
|
98 | |
Section 1306.
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Notices
|
98 | |
Section 1307.
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Consent to Jurisdiction
|
99 | |
Section 1308.
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Captions
|
99 | |
Section 1309.
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Governing Law
|
99 | |
Section 1310.
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No Petition
|
99 | |
Section 1311.
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General Interpretive Principles
|
100 | |
Section 1312.
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WAIVER OF JURY TRIAL
|
100 | |
Section 1313.
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Waiver of Immunity
|
100 | |
Section 1314.
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Judgment Currency
|
101 | |
Section 1315.
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Statutory References
|
101 | |
Section 1316.
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Counterparts
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101 | |
Section 1317.
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Patriot Act
|
102 | |
Section 1318.
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Multiple Roles
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102 |
EXHIBIT A
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DEPRECIATION METHODS BY TYPE OF CONTAINER
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EXHIBIT B
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FORM OF PURCHASER LETTER
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EXHIBIT C
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FORM OF PURCHASER CERTIFICATION
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EXHIBIT D
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FORM OF NON-RECOURSE RELEASE
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EXHIBIT E
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FORM OF CONTROL AGREEMENT
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EXHIBIT F
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INTERCREDITOR COLLATERAL AGREEMENT
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EXHIBIT G
|
TABLE OF COST-EQUIVALENT UNITS (CEU'S)
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-iv-
This Indenture, dated as of September 9, 2020 (as amended or supplemented from time to time as permitted hereby, the “Indenture”), between CAL Funding IV Limited, an exempted company with
limited liability incorporated and existing under the laws of Bermuda (the “Issuer”), and Wilmington Trust, National Association, a national banking association, as Indenture Trustee (the “Indenture Trustee”).
W I T N E S S E T H:
WHEREAS, the Issuer desires to issue from time to time asset-backed warehouse revolving notes and term notes pursuant to this Indenture;
WHEREAS, such notes will be full recourse obligations of the Issuer and will be secured by the Collateral; and
WHEREAS, all acts and things have been done and performed which are necessary to make the Notes, when executed by the Issuer, authenticated by the Indenture Trustee and issued, the legal, valid and
binding obligations of the Issuer, enforceable in accordance with their terms, and to make this Indenture a valid and binding agreement for the security of the Notes authenticated and delivered under this Indenture.
NOW THEREFORE, in consideration of the mutual agreements herein contained, each party agrees as follows for the benefit of the other party, the Noteholders and each Interest Rate Hedge Provider:
GRANTING CLAUSE
To secure the payment of the Aggregate Outstanding Obligations and the performance of all of the Issuer’s covenants and agreements in this Indenture and each other Related Document to which it is a
party, the Issuer hereby grants, assigns, conveys, mortgages, pledges, charges, hypothecates and transfers to Indenture Trustee, for the benefit of the Noteholders of all Series of Notes, a first priority perfected security interest in and to all
rights, title and interest of the Issuer in, to and under the following, whether now existing or hereafter created or acquired:
(i) the Managed Containers and all other Transferred Assets;
(ii) all Deposit Accounts and all Securities Accounts, including the Trust Account, the Excess Funding Account, and all cash and cash equivalents, Eligible Investments,
Financial Assets, Investment Property, Securities Entitlements and other Instruments or amounts credited or deposited from time to time in any of the foregoing;
(iii) the Contribution and Sale Agreement, the Management Agreement and each other Related Document to which the Issuer is a party;
(iv) all other collections received by the Issuer from the operation of the Managed Containers, including any amount on deposit in the Manager Collection Account that, in
accordance with the terms of the Intercreditor Collateral Agreement, is attributable to a Managed Container;
(v) all Accounts;
(vi) all Chattel Paper, all Leases and all schedules, supplements, amendments, modifications, renewals, extensions and all guaranties and other credit support with respect to
the foregoing, all rentals, payments and monies due and to become due in respect of the foregoing, and all rights to terminate or compel performance thereof;
(vii) all Contracts;
(viii) all Documents;
(ix) all General Intangibles;
(x) all Instruments;
(xi) all Inventory;
(xii) all Supporting Obligations;
(xiii) all Equipment;
(xiv) all Letter of Credit Rights;
(xv) all Commercial Tort Claims;
(xvi) all property of the Issuer including, without limitation, all property of every description now or hereafter in the possession or custody of or in transit to the
Indenture Trustee for any purpose, including, without limitation, safekeeping, collection or pledge, for the account of the Issuer, or as to which the Issuer may have any right or power;
(xvii) the right of the Issuer to terminate, perform under, or compel performance of the terms of the Container Related Agreements and all claims for damages arising out of the
breach of any Container Related Agreement;
(xviii) any guarantee of the Container Related Agreements and any rights of the Issuer in respect of any subleases or assignments permitted under the Container Related
Agreements;
(xix) all or any part of insurance proceeds of all or any part of the Collateral and all proceeds of the voluntary or involuntary disposition of all or any part of the
Collateral or such proceeds;
(xx) any and all payments made or due to the Issuer in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral
by any Governmental Authority and any other cash or non-cash receipts from the sale, exchange, collection or other disposition of all or any part of the Collateral;
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(xxi) to the extent not otherwise included, all income, payments and Proceeds of each of the foregoing and all accessions to, substitutions and replacements for, and rents,
profits and products of each of the foregoing.
All of the property described in this Granting Clause is herein collectively called the “Collateral”, (A) the “Collateral” shall specifically exclude any Series-Specific Collateral, (B) the Lien on the
collateral types described in clauses (iii), (v), (vi), (vii), (viii), (ix), (x). (xi), (xii), (xiv) and (xv) above shall extend to such collateral types to the extent (and only to the extent) of the Issuer's rights therein, (C) the right of the
Issuer to terminate, perform under or compel performance of the terms of a Container Related Agreement described in clause (xvii) above is subject to any restrictions set forth in that agreement and/or the Intercreditor Collateral Agreement, (D) no
account, instrument, chattel paper or other obligation or property of any kind due from, owed by, or belonging to, a Sanctioned Person and (E) no Lease in which the Lessee is a Sanctioned Person, shall, in the case of clause (D) and (E), constitute
Collateral.
The security interest of the Indenture Trustee in the Collateral shall be subject at all times to the provisions of the Intercreditor Collateral Agreement (to the extent that the Intercreditor Collateral Agreement is
applicable thereto).
The Issuer hereby grants to the Indenture Trustee, for the benefit of the Noteholders, each of (i) a fixed charge over the Issuer’s rights (but not its obligations) under the Contribution and Sale
Agreement, each Interest Rate Hedge Agreement, the Performance Guaranty, the Intercreditor Collateral Agreement and the Management Agreement, and (ii) a floating charge over all other assets of the Issuer.
In furtherance of the foregoing, the Issuer hereby appoints the Indenture Trustee as its designee for purposes of exercising the power of attorney granted pursuant to Section 10.3 of the Management
Agreement.
The Indenture Trustee acknowledges such Grant, accepts the trusts hereunder in accordance with the provisions hereof, and agrees to perform the duties herein required as hereinafter provided.
Notwithstanding the foregoing, the Indenture Trustee does not assume, and shall have no liability to perform, any of the Issuer’s obligations under any agreement included in the Collateral and shall have no liability arising from the failure of the
Issuer or any other Person to duly perform any such obligations.
The Issuer hereby irrevocably authorizes the Indenture Trustee at any time, and from time to time, to file in any filing office in any UCC jurisdiction any financing statements (including any such
financing statements claiming a security interest in all assets of the Issuer, other than the Series-Specific Collateral) and amendments thereto that (i) indicate the Collateral, regardless of whether any particular asset comprised in the Collateral
falls within the scope of Article 9 of the UCC, and (ii) provide any other information required by Article 9 of the UCC for the sufficiency or filing office acceptance of any financing statement or amendment, including whether the Issuer is an
organization (provided, however, that the Indenture Trustee has no obligation or duty to take such action or to determine whether to perfect, file, record or maintain any perfected, filed or recorded document
or instrument (all of which the Issuer shall prepare, deliver and instruct the Indenture Trustee to execute) in connection with the grant of a security interest in the Collateral hereunder), the type of organization and any organizational
identification number issued to the Issuer; provided, however, that the Indenture Trustee shall not be obligated to file, or authorize the filing of, any financing
statements or amendments thereto except upon the written instruction from the Issuer or the Manager. The Issuer agrees to furnish any such information to the Indenture Trustee promptly upon the Indenture Trustee’s request. The Issuer also ratifies
its authorization for the Indenture Trustee to have filed in any jurisdiction any similar initial financing statements or amendments thereto if filed prior to the date hereof.
3
ARTICLE I
DEFINITIONS
Section 101. Defined Terms.
Capitalized terms used in this Indenture shall have the following meanings and the definitions of such terms shall be equally applicable to both the singular and plural forms of such terms:
Account: Any “account”, as such term is defined in Section 9-102(a)(2) of the UCC.
Account Debtor: Any “account debtor”, as such term is defined in Section 9‑102(a)(3) of the
UCC.
Administrative Agent: For any Series of Warehouse Notes, the Person (if any) performing the
duties of the Administrative Agent for any Series of Warehouse Notes.
Advance Rate: For any Series, this term shall have the meaning set forth in the related
Supplement.
Affiliate. With respect to a specified Person, any other Person that directly or indirectly
through one or more intermediaries controls, or is controlled by or under common control with such specified Person. For the purposes of this definition, “control”, when used with respect to any specified Person, means the power to direct the
management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.
Aggregate Asset Base. As of any date of determination, the sum of the Asset Bases for all
Series of Notes then Outstanding.
Aggregate Invested Amount. As of any date of determination, an amount equal to the sum of
the Invested Amounts for all Series of Notes then Outstanding.
Aggregate Net Book Value. As of any date of determination, an amount equal to the sum of the
Net Book Values of all Eligible Containers.
4
Aggregate Outstanding Obligations: As of any date of determination, an amount equal to the
sum of (i) the Outstanding Obligations for all Series of Notes then Outstanding, and (ii) all other amounts owing by the Issuer to the Indenture Trustee, any Noteholder, or any Interest Rate Hedge Provider pursuant to the terms of any Related
Document.
Aggregate Principal Balance. As of any date of determination, an amount equal to the sum of
the then Unpaid Principal Balance of all Series of Notes then Outstanding.
Aggregate Required Asset Base. As of any Determination Date, an amount equal to the then
Aggregate Principal Balance for all Series of Notes then Outstanding.
Applicable Law. With respect to any Person or Managed Container, all law, treaties,
judgment, decrees, injunctions, waits, rules, regulations, orders, directives, concessions, licenses and permits of any Governmental Authority applicable to such Person or its Property or in respect of its operations.
Asset Allocation Percentage. As of any date of determination for each Series of Notes then
Outstanding, a fraction (expressed as a percentage) equal to (A) divided by (B), as follows:
(A) (x) the Asset Entitlement for such Series of Notes as of such date of determination, divided by (y) an amount equal to (1) one hundred percent (100%) minus (2) the Required
Overcollateralization Percentage for such Series; and
(B) the sum of the amounts described in clause (A) for all Series then Outstanding as of such date of determination.
Asset Base. With respect to each Series of Notes, the amount identified as such in the
Supplement for such Series of Notes.
Asset Base Deficiency. As of any Payment Date, the condition that exists if the Aggregate
Required Asset Base exceeds the Aggregate Asset Base. If such term is used in a quantitative context, the amount of the Asset Base Deficiency shall be equal to the amount of such excess.
Asset Base Report. A certificate with appropriate insertions setting forth the components of
the Asset Base as of the date of determination for which such certificate is submitted, which certificate shall be substantially in the form of an Exhibit to the Indenture (and, for purposes of any Series, including any additional Asset Base Report
that may be required pursuant to the terms of the Supplement under which such Series was issued) and shall be certified by an Authorized Signatory of the Manager or one of its permitted Affiliates on behalf of the Manager. The Asset Base Report
will include (a) for each equipment type (i) utilization, (ii) average per diem rate, (iii) number of units, (iv) Original Equipment Cost, (v) Net Book Value, (vi) Weighted Average Age, and (vii) average remaining lease term; (b) collateral
disposition details including (i) number and Net Book Value of containers sold in the ordinary course of business and number and Net Book Value of containers transferred to an Affiliate and (ii) average sales proceeds, average Net Book Value,
average Original Equipment Cost, and Weighted Average Age by equipment type at time of sale; and (c) top 10 lessee concentrations by Net Book Value. The Asset Base Report may include additional information.
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Asset Entitlement. As of any date of determination for each Series of Notes then
Outstanding, an amount equal to the Unpaid Principal Balance of all Notes of such Series.
Authorized Signatory: Any Person designated by written notice delivered to the Indenture
Trustee as authorized to execute documents and instruments on behalf of a Person.
Available Distribution Amount. For any Payment Date, all amounts in the Trust Account on the
related Determination Date that consist of: (i) Issuer Proceeds, less certain sums deducted in accordance with the terms of the Management Agreement, in each case for the most recently completed Collection Period, (ii) all Warranty Purchase Amounts
and Manager Advances received by the Issuer after the Determination Date in the immediately preceding month, (iii) any earnings on Eligible Investments in the Trust Account to the extent that such earnings were credited to such account after the
Determination Date in the immediately preceding month, (iv) funds transferred from the Excess Funding Account on such Payment Date and (v) any Capital Contribution (to the extent consisting of cash) made to the Issuer after the Determination Date
in the immediately preceding month. In no event shall the Available Distribution Amount include the proceeds of the Containers and Leases sold at the direction of a Liquidating Series pursuant to the Indenture.
Available Funds. For any Series of Notes, the amount identified as such and set forth in the
related Supplement.
Back-up Data Files. An electronic copy of the following information, with respect to each of
the Managed Containers as of the last day of each month: (i) the container identification number, the equipment type, the date of manufacture and the Original Equipment Cost and (ii) (A) if then on-lease, the name of the lessee, the number of the
related Lease, the expiration date of such Lease, the type of Lease, the lease rate and buyout amount (if any) or (B) if then off-lease, the name and location of the depot in which stored.
Back-up Manager Event: With respect to any Series, the event or condition identified as such
in the related Supplement.
Bankruptcy Code: The United States Bankruptcy Reform Act of 1978, as amended.
Bankruptcy Event: For any Person, any of the following events:
(a) a case or other proceeding shall be commenced, without the application or consent of such Person, in any court, seeking the liquidation, reorganization, debt arrangement, dissolution,
winding up or composition or readjustment of debts of such Person, the appointment of a trustee, receiver, custodian, liquidator, assignee, sequestrator or the like for such Person or any substantial part of its assets, or any similar action with
respect to such Person under any law relating to bankruptcy, insolvency, reorganization, winding up or composition or adjustment of debts, and such case or proceeding shall continue undismissed, or unstayed and in effect, for a period of 60 days; or
an order for relief in respect of such Person shall be entered in an involuntary case under the federal bankruptcy laws or other similar laws now or hereafter in effect; or
6
(b) such Person shall commence a voluntary case or other proceeding under any applicable bankruptcy, insolvency, reorganization, debt arrangement, dissolution or other similar law now or
hereafter in effect, or shall consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestration or the like, for such Person or any substantial part of its property, or shall make any general
assignment for the benefit of creditors, or shall fail to, or admit in writing its inability to, pay its debts generally as they become due.
Balance Sheet Date: December 31, 2019.
Book-Entry Custodian: The Person appointed pursuant to the terms of this Indenture to act in
accordance with a certain letter of representations agreement such Person has with the Depositary, in which the Depositary delegates its duties to maintain the Book-Entry Notes to such Person and authorizes such Person to perform such duties.
Book-Entry Notes: Collectively, the Rule 144A Book-Entry Notes, the Regulation S Temporary
Book-Entry Notes and the Unrestricted Book-Entry Notes.
Business Day: Any day other than a Saturday, a Sunday or a day on which the New York Stock
Exchange, the Federal Reserve Bank or banking institutions in San Francisco, California, New York, New York or the city in which the Corporate Trust Office is located, are authorized or are obligated by law, executive order or governmental decree
to be closed.
CAI: CAI International Inc., a corporation organized under the laws of the State of
Delaware, and its successors and permitted assigns.
CAL: Container Applications Limited, a company organized under the laws of Barbados and a
wholly-owned subsidiary of CAI, and its successors and permitted assigns.
CAL Funding III: CAL Funding III Limited, an exempted company with limited liability
incorporated under the laws of Bermuda.
Capital Contribution. With respect to any Person, any cash and/or the fair market value of
any property contributed to the capital of such Person by the owners of the equity interests thereof.
Capital Stock. Any and all shares, interests, participations or other equivalents (however
designated) of capital stock of a company or corporation, any and all equivalent ownership interests in a Person (other than a corporation) and any and all warrants, rights or options to purchase any foregoing.
Capitalized Lease. A lease under which CAI or any of its Subsidiaries is the lessee or
obligor, the discounted future rental payment obligations under which are required to be capitalized on the balance sheet of the lessee or obligor in accordance with GAAP.
Casualty Loss. With respect to any Container, any of the following events: (a) the actual
total loss or constructive total loss of such Container, (b) the loss, theft or destruction of such Container (including any failure to recover a Container that is or was subject to a Lease or Finance Lease that is in default (where the failure to
recover the Container continues after the Manager has exhausted available legal process), (c) such Container is damaged beyond repair or permanently rendered unfit for normal use for any reason whatsoever, (d) the seizure, condemnation,
confiscation, forced sale or other taking of title to or use of such Container, (e) if such Container is subject to a Lease, such Container shall have been deemed under its Lease to have suffered a casualty loss as to the entire Container or (f)
the value of such Container in the accounting records of the Issuer has been written off by the Issuer (or the Manager, on behalf of the Issuer) as required by GAAP. In determining the date on which a Casualty Loss occurred, the application of the
time frames set forth in clauses (a) through (f) above shall in no event result in the deemed occurrence of a Casualty Loss prior to the date on which an officer of the Issuer or the Manager obtains actual knowledge of such Casualty Loss.
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Casualty Proceeds. For any accounting period, all proceeds due to Manager or Sub-Manager, as
agent of the Issuer, from a Lessee and/or any other source, including without limitation the proceeds of any insurance, as a result of a Casualty Loss with respect to a Container in the Issuer’s Fleet.
CEU. A cost equivalent unit which is a fixed unit of measurement based on the cost of a
Container relative to the cost of a twenty-foot standard dry freight Container, as set forth in Exhibit G.
Chattel Paper: Any lease (including any Finance Lease) or other “chattel paper”, as such
term is defined in Section 9-102(a)(11) of the UCC.
Class. All Notes of a Series having the same right to payment of principal and interest
pursuant to the terms of the Supplement pursuant to which such Series of Notes was issued.
Closing Date: With respect to any Series of Notes, the date identified as such in the
related Supplement.
Code: The Internal Revenue Code of 1986, as amended, or any successor statute thereto.
Collateral: This term shall have the meaning set forth in the Granting Clause of this
Indenture.
Collection Allocation Percentage. Unless otherwise stated in a Supplement for any Series of
Notes, as of any date of determination for such Series of Notes, a fraction (expressed as a percentage) equal to (A) divided by (B), as follows:
(A) the Invested Amount for such Series of Notes; and
(B) the sum of the Invested Amount for all Series of Notes then Outstanding (exclusive of the Invested Amount for any Liquidation Deficiency Series).
Collection Period. For any Payment Date, the period from the first day of the calendar month
immediately preceding the month in which such Payment Date occurs through and including the last day of such calendar month; provided, however, that the first Collection Period for any Series shall be set
forth in the related Supplement.
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Collections: With respect to any Collection Period, all payments (including any cash
proceeds) actually received by the Issuer with respect to the Managed Containers and the other items of Collateral, including amounts distributed by the Manager to the Issuer pursuant to Section 7.2 of the Management Agreement or otherwise.
Commercial Tort Claims: Any “commercial tort claim”, as such term is defined in 9-102(a)(13)
of the UCC.
Competitor. Any Person engaged and competing with any of the Issuer, CAL or CAI in the
Container leasing business and any Affiliate of any such Person; provided, however, that in no event shall any insurance company, bank, bank holding company, savings institution or trust company, fraternal
benefit society, pension, retirement or profit sharing trust or fund, or any collateralized bond obligation fund or similar fund (or any trustee of any such fund) or any holder of any obligations of any such fund (solely as a result of being such a
holder) be deemed to be a Competitor solely as a result of being an Affiliate of a Competitor, provided that firewalls are put in place to prevent confidential information of the Issuer or Manager from being distributed to the Competitor.
Container. Any dry freight cargo, high cube, flat rack, refrigerated (including associated
generator sets), rolltrailer or other type of marine or intermodal container that is owned by the Issuer from time to time and that is placed under CAL’s and CAI’s management pursuant to the terms of the Container Management Services Agreement.
Containers shall also include Substitute Containers. Such Container or Containers may be referred to interchangeably as the “Issuer’s Fleet.”
Container Disposal. The normal sale of any Container in its primary market as an intermodal
cargo container offered for lease to end-users thereof as generally accepted within the container leasing industry.
Container Related Agreement: Any agreement relating to the Managed Containers or agreements
relating to the use or management of such Managed Containers whether in existence on any Series Issuance Date or thereafter acquired, including, but not limited to, all Leases, the Management Agreement, the Contribution and Sale Agreement and the
Chattel Paper; provided, that any such agreement shall be deemed a “Container Related Agreement” only to the extent that they pertain to the Managed Containers.
Container Representations and Warranties. Certain specified representations and warranties
regarding the Transferred Containers and the Related Assets made by the Seller on the related transfer date pursuant to the terms of the Contribution and Sale Agreement.
Container Sale. A completed transaction by which any Container is sold, whether to a third
party or to Manager or to Sub-Manager.
Contracts. All contracts, undertakings, franchise agreements or other agreements (other than
rights evidenced by Chattel Paper, Documents or Instruments), arising out of or in any way related to the Managed Containers or to the Notes, in or under which Issuer may now or hereafter have any right, title or interest, including, without
limitation, the Management Agreement, the Contribution and Sale Agreement, any Interest Rate Hedge Agreements and any related agreements, security interests or UCC or other financing statements and, with respect to an Account, any agreement
relating to the terms of payment or the terms of performance thereof.
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Contribution and Sale Agreement. The Contribution and Sale Agreement, dated as of September
9, 2020, between the Issuer and CAL, as such agreement may be amended, modified or supplemented from time to time in accordance with its terms.
Control Agreement: A control agreement, among the
Issuer, the Indenture Trustee and the Securities Intermediary, which shall be substantially in the form of Exhibit E to this Indenture, for each of the
Trust Account, each Restricted Cash Account and each Series Account.
Control Party. With respect to a Series of Notes, the Person(s) described as such in the
Supplement for such Series of Notes.
Conversion Date: With respect to any Series of Warehouse Notes, the date on which a
Conversion Event occurs with respect to such Series of Warehouse Notes.
Conversion Event: With respect to any Series of Warehouse Notes, any event that will result
in the termination of the revolving period for such Series and the commencement of principal amortization of such Series as set forth in the related Supplement.
Corporate Trust Office. The principal office of the Indenture Trustee at which at any
particular time its corporate trust business shall be administered. As of the Closing Date, such office is located at 1100 North Market Street, Wilmington, Delaware 19890-1605, Attention: Corporate Trust Administration/Jose Paredes.
Default Fee: The incremental interest specified in the related Supplement payable by the
Issuer resulting from the occurrence of an Event of Default with respect to such Series or the other reasons set forth in the related Supplement.
Defaulted Lease. Any Lease of a Container as to which either of the following events or
conditions apply:
(i) the Manager has determined in accordance with the terms of the Management Agreement that all or any material portion of any regularly scheduled rental payments or end of term payments
owing pursuant to the terms of such Lease are wholly or partially uncollectible; or
(ii) the Manager has repossessed the equipment or is otherwise exercising remedies with respect to such Lease.
Definitive Note: A Note issued in physical form pursuant to the terms and conditions of
Section 202 hereof.
Deposit Account: Any “deposit account,” as such term is defined in Section 9-102(a)(29) of
the UCC.
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Depositary: The Depository Trust Company until a successor depositary shall have become such
pursuant to the applicable provisions of this Indenture and thereafter “Depositary” shall mean or include each Person who is then a Depositary hereunder. For purposes of this Indenture, unless otherwise specified pursuant to Section 202, any
successor Depositary shall, at the time of its designation and at all times while it serves as Depositary, be a clearing agency registered under the Exchange Act, and any other applicable statute or regulation.
Depositary Participants: A broker, dealer, bank, other financial institution or other Person
for whom from time to time the Depositary effects book-entry transfers and pledges of securities deposited with the Depositary.
Depreciation Policy. The depreciation policy set forth as Exhibit A hereto, as it may be
amended from time to time in accordance with the Indenture and the Related Documents. If a type of Container is not included on Exhibit A on the Closing Date of the initial Series of Notes, such Container type and the corresponding depreciation
life for such type of Containers may be added to such depreciation policy upon satisfaction of the Rating Agency Condition.
Determination Date. The fourth (4th) Business Day prior to the related Payment Date.
Direct Finance Leases: A lease that satisfies the criteria for classification as a capital
lease pursuant to GAAP, including under Financial Accounting Standards Board Statement No. 13, as amended.
Documents: Any “documents,” as such term is defined in Section 9-102(a)(30) of the UCC.
Dollars. Dollars and the sign “$” means lawful money of the United States of America.
Early Amortization Event: For each Series of Notes, the existence of either of the
following: a Trust Early Amortization Event and any Series-Specific Early Amortization Event for such Series.
Eligible Account: Either (a) a segregated account with an Eligible Institution (in its
capacity as Securities Intermediary of the Indenture Trustee), or (b) a segregated trust account with the corporate trust department of the Indenture Trustee (in its capacity as Securities Intermediary of the Indenture Trustee) or any other
depository institution organized under the laws of the United States or any of the states thereof (in its capacity as Securities Intermediary of the Indenture Trustee), including the District of Columbia (or any United States branch of a non-United
States bank), and acting as a trustee for funds deposited in such account, so long as the senior securities of such depository institution shall have a credit rating from each applicable Rating Agency in one of its generic credit rating categories
no lower than “A2” and “A”, as the case may be, and the short-term unsecured senior debt obligations of such depository institution or trust company are rated at least “P-1” by Moody’s and “A-1” by S&P, as the case may be, or (c) any account
held with the Indenture Trustee (in its capacity as Securities Intermediary of the Indenture Trustee) provided that the institution then acting as Indenture Trustee is an Eligible Institution.
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Eligible Container. As of any date of determination (or any specific date set forth below),
any Managed Container which shall meet all of the following criteria:
(i) |
Specifications. The Managed Container conforms to (i) the standard specifications used by the Manager for that category of container and
to any applicable industry standards, or (ii) if such Managed Container is subject to a Finance Lease, to the standard specification of either the Manager or the Lessee;
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(ii) |
Casualty Losses. Such Managed Container shall not have suffered a Casualty Loss;
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(iii) |
Purchase Price. The purchase price paid by the related Seller for such Managed Container was not greater than the Fair Market Value of
such container at the time of acquisition by such Seller;
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(iv) |
General Trading Terms. The Leases for such Managed Containers shall be entered into or acquired in the ordinary course of business and
contain commercially reasonable terms, consistent with the general trading terms the Manager uses in its normal course of business;
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(v) |
No Sanctioned Person or Sanctioned Country. Such Managed Container is then not on lease to a Sanctioned Person, and to the actual
knowledge of the Issuer or the Manager, is not subleased to a Sanctioned Person or located, operated or used in a Sanctioned Country unless it is used by the government of the United States or one of its allies or pursuant to a license
granted by the Office of Foreign Assets Control of the United States Treasury Department;
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(vi) |
Good Title; No Liens. The Issuer has good and marketable title to such Managed Container, free and clear of all Liens other than (i)
Permitted Encumbrances, and (ii) if Managed Container is subject to a Lease, those Liens that the Lessee is required to remove pursuant to the terms of such Lease;
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(vii) |
Container Representations and Warranties. Each Managed Container complies with the Container Representations and Warranties applicable to
such Managed Container;
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(viii) |
Defaulted Lease. If such Managed Container is subject to a Lease on its Transfer Date, such Lease is not a Defaulted Lease on such
Transfer Date;
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(ix) |
No Violation. The contribution and conveyance of such Managed Container to the Issuer does not violate any agreement to which the related
Seller is a party or by which it or its properties are bound;
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(x) |
Assignability. The Lease rights with respect to such Container are freely assignable without the consent of any Person other than
consents which have been obtained; and
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(xi) |
All Necessary Actions Taken. The Seller and the Issuer shall have taken all necessary actions set forth in the Contribution and Sale
Agreement to transfer from such Seller to the Issuer title to such Container and all related Leases.
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The foregoing requirements are subject to modification at the request of Issuer upon satisfaction of the Rating Agency Condition in each instance.
Eligible Institution: Any one or more of the following institutions: (i) the corporate
trust department of the Indenture Trustee (in its capacity as Securities Intermediary) of the Indenture Trustee so long as the Indenture Trustee maintains a long-term unsecured senior debt rating of at least “A” or better from Standard & Poor’s
or “A2” or better from Moody’s (so long as Notes deemed Outstanding hereunder are rated by Moody’s), or (ii) a depository institution organized under the laws of the United States of America or any one of the states thereof or the District of
Columbia (or any United States branch of a non-United States bank), (a) which, if applicable, has both (x) a long-term unsecured senior debt rating of not less than “A” by Standard & Poor’s and “A2” by Moody’s, and (y) a short-term unsecured
senior debt rating of at least “P-1” by Moody’s and “A-1” by Standard & Poor’s and (b) whose deposits are insured by the Federal Deposit Insurance Corporation.
Eligible Investments: One or more of the following:
(i) direct obligations of, and obligations fully guaranteed as to the timely payment of principal and interest by, the United States of America or obligations of any
agency or instrumentality thereof when such obligations are backed by the full faith and credit of the United States;
(ii) certificates of deposit and bankers' acceptances (which shall each have an original maturity of not more than 365 days) of any United States depository institution or
trust company incorporated under the laws of the United States or any State and subject to supervision and examination by federal and/or State authorities, provided that the long-term unsecured senior debt obligations of such depository institution
or trust company at the date of acquisition thereof have been rated "AA-/Aa3" (or the equivalent) or better by the Rating Agencies, or the short-term unsecured senior debt obligations of such depository institution or trust company are rated by each
Rating Agency in its highest rating category;
(iii) commercial paper (having original maturities of not more than 270 days) of any corporation, incorporated under the laws of the United States of America or any state
thereof which on the date of acquisition has been rated by each Rating Agency in the highest short-term unsecured commercial paper rating category;
(iv) any money market fund that has been rated by each Rating Agency in its highest rating category (including any designation of "plus" or "minus") or that invests solely
in Eligible Investments;
(v) Eurodollar deposits (that shall each have an original maturity of not more than 365 days) of any depository institution or trust company, provided that the long-term
unsecured senior debt obligations of such depository institution or trust company at the date of acquisition thereof have been rated "AA-/Aa3" (or the equivalent) or better by the Rating Agencies, or the short-term unsecured senior debt obligations
of such depository institution or trust company are rated by each Rating Agency in its highest rating category; and
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(vi) other obligations or securities that are acceptable to each Rating Agency as an Eligible Investment hereunder and will not result in a reduction or withdrawal in the then current rating
of the Notes as evidenced by a letter to such effect from each Rating Agency.
Nothing in the definition of “Eligible Investments” is intended to prohibit the Issuer from acquiring an Eligible Investment issued by the Indenture Trustee or an Affiliate of the Indenture Trustee, so long as such
Eligible Investment meets one or more of the criteria above.
Entitlement Order: Any “entitlement order” as defined in Section 8-102(8) of the UCC.
Equipment: Any “equipment” as defined in Section 9-102(a)(33) of the UCC.
ERISA: The Employee Retirement Income Security Act of 1974, as amended.
ERISA Affiliate: With respect to any Person, any other Person meeting the requirements of
paragraphs (b), (c), (m) or (o) of Section 414 of the Code.
Event of Default. For each Series of Notes, the existence of any of the following: a Trust
Event of Default or a Series-Specific Event of Default for such Series.
Excess Concentration Percentage. As of any date of determination for each Series of Notes
then Outstanding, the percentage specified as such in the Supplement pursuant to which such Series of Notes was issued.
Excess Funding Account. The account or accounts established pursuant to Section 306 of this
Indenture.
Exchange Act: The Securities Exchange Act of 1934, as amended.
Existing Commitment. With respect to any Series (A) of Warehouse Notes (i) prior to its
Conversion Date, the aggregate Initial Commitment with respect to such Series of Notes Outstanding, consisting of one or more Classes, expressed as a dollar amount, as set forth in the related Supplement and subject to reduction from time to time
in accordance with the related Supplement and (ii) after its Conversion Date, the then Unpaid Principal Balance of the Notes of such Series and (B) of Term Notes, the then Unpaid Principal Balance of the Notes of such Series.
Expected Final Maturity Date. With respect to any Series, the date on which the principal
balance of the Outstanding Notes of such Series are expected to be paid in full assuming that the Scheduled Principal Payment Amount for such Series are paid in full as such Scheduled Principal Payment Amount have become due. The Expected Final
Maturity Date for a Series shall be set forth in the related Supplement.
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Expected Final Payment Date. With respect to any Series, the date on which the principal
balance of the Outstanding Notes of such Series are expected to be paid in full assuming that the Scheduled Principal Payment Amount for such Series are paid in full as such Scheduled Principal Payment Amount have become due. The Expected Final
Payment Date for a Series shall be set forth in the related Supplement.
Factory Unit. Each Container transferred by the Seller to the Issuer that on such Transfer
Date was located at the manufacturer’s facility awaiting pick up by a lessee.
Fair Market Value. An amount equal to the value which would be obtained in an arm’s length
sales transaction between an informed and willing purchaser under no compulsion to buy and an informed and willing seller under no compulsion to sell.
FATCA. Sections 1471 through 1474 of the Code, as amended, any regulations thereunder or
other official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any intergovernmental agreements (including any foreign legislation, rules, regulations, guidance notes or other, similar guidance
adopted pursuant to or implementing such agreements) entered into in connection with such Sections.
FATCA Withholding Tax. Any withholding or deduction made pursuant to FATCA in respect to any
payment.
Finance Lease. A Lease pursuant to which the Manager leases Containers to a Lessee and (a)
the terms of such lease provide that title to such Containers will pass to such Lessee at the end of the lease term automatically or at the option of the Lessee for no additional consideration or for consideration so nominal that the lessee would
be economically compelled to exercise such option and (b) the interest component of the proceeds of such lease are booked on the Issuer’s financial statements as “Income from Direct Finance Leases” in accordance with GAAP as in effect on the
initial Closing Date.
Finance Lease Payments. For any period, all amounts due in connection with the ownership,
use and/or operation of Containers subject to a Finance Lease, including, but not limited to, rental, handling, location revenue and other rental-related charges arising from the leasing of such Containers, but excluding Miscellaneous Owner
Proceeds, Casualty Proceeds, Sales Proceeds and Indemnification Proceeds.
Financial Asset: Any “financial asset” as such term is defined in Section 8-102(a)(9) of
the UCC.
Fleet: As of any date of determination, both of the following collectively: (i) the Managed
Containers and (ii) without duplication of clause (i), all other Containers then managed by Manager or the Sub-Manager.
Funding Date: With respect to any Series of Warehouse Notes, this term shall have the
meaning set forth in the related Supplement.
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G&A Expenses. All general and administrative expenses (excluding Independent Agent
Commissions) now or hereafter incurred or paid by Manager, Sub-Manager and/or its Affiliates, directly or indirectly, in connection with the containers in the Manager Fleet (including the Containers in the Issuer’s Fleet), including but not limited
to, salaries, rents, legal (except legal fees included in the definition of Operating Expenses below), accounting (including accounting fees associated with the quarterly review and annual audit of Manager’s financial condition and preparation of
related financial statements), utilities, travel and entertainment, capital expenditures, amounts paid, reimbursed, or advanced to Sub-Manager, amounts paid, reimbursed, or advanced to Manager and other similar items constituting Manager’s or
Sub-Manager’s overhead but excluding the audit which may be requested by Issuer pursuant to the terms of the Management Agreement. G&A Expenses shall be for Manager’s or Sub-Manager’s own account.
General Intangibles: Any “general intangible” as such term is defined in Section
9-102(a)(42) of the UCC.
Generally Accepted Accounting Principles or GAAP: (a) With respect to the financial
calculations in a Supplement, whether directly or indirectly through reference to a capitalized term used therein, means (i) principles that are consistent with the principles promulgated or adopted by the Financial Accounting Standards Board and
its predecessors, in effect for the fiscal year ended on the Balance Sheet Date, and (ii) to the extent consistent with such principles, the accounting practice of any Borrower reflected in its financial statements for the year ended on the Balance
Sheet Date, and (b) when used in general, other than as provided above, means principles that are (i) consistent with the principles promulgated or adopted by the Financial Accounting Standards Board and its predecessors, as in effect from time to
time, and (ii) consistently applied with past financial statements of any Borrower adopting the same principles, provided that in each case referred to in this definition of “GAAP” a certified public accountant would, insofar as the use of such
accounting principles is pertinent, be in a position to deliver an unqualified opinion (other than a qualification regarding changes in GAAP) as to financial statements in which such principles have been properly applied.
Governmental Authority. Any of the following: (i) any national, state or other sovereign
government, and any federal, regional, state, provincial, local, city government or other political subdivision, (ii) any governmental or quasi-governmental agency, authority, board, bureau, commission, department, instrumentality or public body,
or (iii) any court or administrative tribunal.
Grant: To grant, bargain, sell, convey, assign, transfer, mortgage, pledge, create and
perfect a security interest in and right of set-off against, deposit, set over and confirm.
Gross Revenue. All income (without reduction for expenses or costs), calculated on a cash
basis earned in connection with the economic ownership, use and/or operation of Containers in the Issuer’s Fleet, or where indicated, the containers in the Manager Fleet, calculated on a container specific basis, including, but not limited to, (i)
rental, (ii) handling, (iii) the net amount (which can be a positive or negative number) of charges and credits to Lessees related to delivery and return of containers in geographic locations, including but not limited to container pick-up charges
and container drop-off charges, (iv) damage protection plan income, (v) interchange fees, (vi) repair rebills, and (vii) other rental-related charges arising from leasing of such containers, but excluding Miscellaneous Owner Proceeds, Casualty
Proceeds, Indemnification Proceeds and Sales Proceeds.
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Holder: See Noteholder.
Indebtedness: As to any Person and whether recourse is secured by or is otherwise available
against all or only a portion of the assets of such Person and whether or not contingent, but without duplication:
(a) every obligation of such Person for money borrowed,
(b) every obligation of such Person evidenced by bonds, debentures, notes or other similar instruments, including obligations incurred in connection with the acquisition
of property, assets or businesses,
(c) every reimbursement obligation of such Person with respect to letters of credit, bankers’ acceptances or similar facilities issued for the account of such Person,
(d) every obligation of such Person issued or assumed as the deferred purchase price of property or services (including securities repurchase agreements but excluding trade
accounts payable or accrued liabilities arising in the ordinary course of business which are not overdue or which are being contested in good faith),
(e) every obligation of such Person under any Capitalized Lease,
(f) every obligation of such Person under any Synthetic Lease,
(g) all sales by such Person of (i) accounts or general intangibles for money due or to become due, (ii) chattel paper, instruments or documents creating or evidencing a
right to payment of money or (iii) other receivables (collectively “receivables”), whether pursuant to a purchase facility or otherwise, other than in connection with the disposition of the business operations of such Person relating thereto
or a disposition of defaulted receivables for collection and not as a financing arrangement, and together with any obligation of such Person to pay any discount, interest, fees, indemnities, penalties, recourse, expenses or other amounts in
connection therewith,
(h) every obligation of such Person (an “equity related purchase obligation”) to purchase, redeem, retire or otherwise acquire for value any shares of Capital Stock
issued by such Person or any rights measured by the value of such Capital Stock,
(i) every obligation of such Person under any forward contract, futures contract, swap, option or other financing agreement or arrangement (including, without limitation,
caps, floors, collars and similar agreements), the value of which is dependent upon interest rates, currency exchange rates, commodities or other indices (a “derivative contract”),
(j) every obligation in respect of Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent that such Person is
liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent that the terms of such Indebtedness provide that such Person is not liable therefor and such terms are enforceable under
applicable law, and
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(k) every obligation, contingent or otherwise, of such Person guaranteeing, or having the economic effect of guarantying or otherwise acting as surety for, any obligation
of a type described in any of clauses (a) through (j) (the “primary obligation”) of another Person (the “primary obligor”), in any manner, whether directly or indirectly, and including, without limitation, any obligation of such Person
(i) to purchase or pay (or advance or supply funds for the purchase of) any security for the payment of such primary obligation, (ii) to purchase property, securities or services for the purpose of assuring the payment of such primary obligation, or
(iii) to maintain working capital, equity capital or other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such primary obligation.
provided, however, that, for the avoidance of doubt, any trade payables owing to manufacturers incurred in the
ordinary course of business that is not delinquent shall not be deemed Indebtedness for the purposes of this definition.
The “amount” or “principal amount” of any Indebtedness at any time of determination represented by (i) any Indebtedness, issued at a price that is less than the principal amount at
maturity thereof, shall be the amount of the liability in respect thereof determined in accordance with GAAP, (ii) any Capitalized Lease shall be the principal component of the aggregate of the rental obligation under such Capitalized Lease payable
over the term thereof that is not subject to termination by the lessee, (iii) any sale of receivables shall be the amount of unrecovered capital or principal investment of the purchaser (other than the Issuer or any of its wholly-owned Subsidiaries)
thereof, excluding amounts representative of yield or interest earned on such investment, (iv) any Synthetic Lease shall be the stipulated loss value, termination value or other equivalent amount, (v) any derivative contract shall be the maximum
amount of any termination or loss payment required to be paid by such Person if such derivative contract were, at the time of determination, to be terminated by reason of any event of default or early termination event thereunder, whether or not such
event of default or early termination event has in fact occurred, (vi) any equity related purchase obligation shall be the maximum fixed redemption or purchase price thereof inclusive of any accrued and unpaid dividends to be comprised in such
redemption or purchase price, and (vii) any guaranty or other contingent liability referred to in clause (k) shall be an amount equal to the stated or determinable amount of the primary obligation in respect of which such guaranty or other contingent
obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder) as determined by such Person in good faith.
Indemnification Proceeds. For any accounting period, all proceeds due to Manager or
Sub-Manager, on its own behalf or as agent of Issuer, from Lessees pursuant to the Leases, insurance or other sources, for indemnification of liability and loss with respect to the Issuer’s Fleet, excluding Casualty Proceeds, Sales Proceeds and
Miscellaneous Owner Proceeds.
Indenture: This Indenture, dated as of September 9, 2020, between the Issuer and the
Indenture Trustee and all amendments hereof and supplements hereto, including, with respect to any Series or Class, the related Supplement.
Indenture Trustee: The Person performing the duties of the Indenture Trustee under this
Indenture.
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Indenture Trustee Fee. The compensation payable to the Indenture Trustee for its services
under the Indenture and the other Related Documents to which it is a party, including, without limitation, all amounts owed to the Indenture Trustee pursuant to its schedule of fees.
Indenture Trustee Indemnified Amounts: This term shall have the meaning set forth in Section
905 hereof.
Independent Agent. An agent that is not an Affiliate of Manager or Sub-Manager.
Independent Agent Commissions. Commissions for any accounting period paid to Independent
Agents by Manager for assisting Manager in the leasing and operation of the containers in Manager’s Fleet (including the Containers) in the normal course of business.
Independent Accountants: KPMG LLP, any other Big 4 accounting firm, or other independent
certified public accountants of internationally recognized standing selected by Issuer for which the Rating Agency Condition is satisfied.
Independent Director. An individual who is not at the time of his appointment or at any time
when such person is serving as the Independent Director and has not been for the five years prior to his appointment as the Independent Director (i) an employee, officer, director, consultant, customer or supplier or the beneficial holder (directly
or indirectly) of more than a de minimus ownership interest, of CAI or any Affiliate of any such person; provided, however, that any such individual may serve as a trustee, manager or director of
another special purpose vehicle that is an Affiliate of the Issuer or CAI, or (ii) a spouse of, or person related to (but not more remote than first cousins), a person referred to at (i) above.
Independent Management Provider. AMACAR Group LLC or any successor thereto for which the
Rating Agency Condition is satisfied.
Independent Management Provider Fees. $25,000 per annum.
Initial Commitment. With respect to any Series, the aggregate initial commitment, expressed
as a dollar amount, to purchase up to a specified principal balance of such Series, which commitments shall be set forth in the related Supplement.
Insolvency Law. Each of the Bankruptcy Code, the Companies Act 1981 of Bermuda, the
Bankruptcy Code and Insolvency Act of Barbados or other similar Applicable Law in any other applicable jurisdiction.
Insolvency Proceeding. Any Proceeding under any applicable Insolvency Law.
Instrument. Any “instrument,” as such term is defined in Section 9-102(a)(47) of the UCC.
Intercreditor Collateral Agreement: The Intercreditor Collateral Agreement (as amended,
modified or supplemented from time to time), dated as of December 20, 2010, by and among CAI, the Issuer, certain “Lenders”, “Owners”, the “Revolver Agent”, the “Collateral Agent” (as each such term is defined therein) and certain other Persons
that from time to time become party thereto. A copy of the Intercreditor Collateral Agreement is attached as Exhibit F hereto.
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Interest Accrual Period. With respect to each Payment Date, the period commencing on and
including the immediately preceding Payment Date (or in the case of the initial Payment Date with respect to a Series, commencing on and including the Issuance Date for such Series) and ending on but excluding the current Payment Date.
Interest Rate Hedge Agreement. An ISDA interest rate cap agreement, ISDA interest rate swap
agreement, ISDA interest rate ceiling agreement, ISDA interest rate floor agreement or any combination of the foregoing or other similar agreement entered into pursuant to the terms of the Indenture between the Issuer and an Interest Rate Hedge
Provider named therein, including any schedules and confirmations prepared and delivered in connection therewith.
Interest Rate Hedge Provider: This term shall have the meaning set forth in the related
Supplement; provided, that each Interest Rate Hedge Provider must be an Eligible Interest Rate Hedge Counterparty.
Inventory: Any “inventory,” as such term is defined in Section 9-102(a)(48) of the UCC.
Invested Amount. As of any date of determination for such Series of Notes, one of the
following: (a) if no Early Amortization Event for any Series or Event of Default for any Series is then continuing, an amount equal to (x) the initial Unpaid Principal Balance of such Series on its Issuance Date minus the initial Restricted Cash
Amount for such Series of Notes on its Issuance Date, divided by (y) 100% minus the Required Overcollateralization Percentage for such Series of Notes in effect on such date of determination; or (b) if any Early Amortization Event for any Series or
Event of Default for any Series is then continuing, an amount (not less than zero) equal to (x) the Unpaid Principal Balance on the date on which such Early Amortization Event for any Series or Event of Default for any Series occurred, minus the
amount then on deposit in each Restricted Cash Account for such Series of Notes on the date on which such Early Amortization Event for any Series or Event of Default for any Series occurred, divided by (y) 100% minus the Required
Overcollateralization Percentage for such Series of Notes on the date on which such Early Amortization Event for any Series or Event of Default for any Series occurred.
Investment. When used in connection with any Person, any investment by or of that Person,
whether by means of purchase or other acquisition of securities of any other Person or by means of loan, advance, capital contribution, guaranty or other debt or equity participation or interest in any other Person including any partnership and
joint venture interests of each Person in any other Person. The amount of any Investment shall be the original principal or capital amount thereof, plus additional paid in capital (including, without limitation, share premium and contributed
surplus), plus retained earnings, less all returns of principal or equity thereon (and without adjustment by reason of the financial condition of such other Person) and shall, if made by the transfer or exchange of property other than cash, be
deemed to have been made in an original principal or capital amount equal to the fair market value of such property.
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Investment Property: Any “investment property” as such term is defined in Section
9-102(a)(49) of the UCC.
Issuance Date. With respect to any Series, the date on which the Notes of such Series are
originally issued in accordance with the Indenture and the related Supplement; provided, however, that in the case of a Series of Warehouse Notes, the Issuance Date of such Series of Warehouse Notes shall
be deemed to be the Conversion Date for such Series of Warehouse Notes. For Series 2020-1 Notes, the Issuance Date is the Series 2020-1 Closing Date.
Issuer: CAL Funding IV Limited, an exempted company with limited liability incorporated and
existing under the laws of Bermuda.
Issuer Container. A Container in Issuer's Fleet.
Issuer Expenses: For any Collection Period an amount equal to overhead and all other costs,
expenses and liabilities of the Issuer (other than Operating Expenses paid pursuant to the Management Agreement and any Management Fee) payable during such Collection Period (including costs and expenses permitted to be paid to or by the Manager in
connection with the conduct of the Issuer’s business), in each case determined on a cash basis, including but not limited to the following:
(A) |
administration expenses;
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(B) |
accounting and audit expenses of the Issuer, and tax preparation, filing and audit expenses of the Issuer;
|
(C) |
premiums for liability, casualty, fidelity, directors and officers and other insurance;
|
(D) |
directors’ fees and expenses;
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(E) |
legal fees and expenses;
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(F) |
other professional fees;
|
(G) |
taxes (including personal or other property taxes and all sales, value added, use and similar taxes but excluding any such amounts that are included as an Operating Expense);
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(H) |
taxes imposed in respect of any and all issuances of equity interests, stock exchange listing fees, registrar and transfer expenses and trustee’s fees with respect to any outstanding securities of the Issuer; and
|
(I) |
surveillance fees assessed by the Rating Agencies.
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Notwithstanding the foregoing, Issuer Expenses shall not include (i) depreciation or amortization on the Managed Containers, (ii) payments of principal, interest and premium, if any, on or with respect to the Notes, or
(iii) funds used to acquire additional Containers. In no event shall the Manager be obligated to pay any Issuer Expenses from its own funds.
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Issuer Proceeds. For any Collection Period, an amount equal to the Gross Revenue from the
Issuer’s Fleet.
Issuer’s Fleet. All Containers owned by Issuer from time to time, including Substitute
Containers, but excluding any such Container which: (a) have been subject to a Casualty Loss, Container Disposal or Container Sale, or (b) have been sold by Manager or Sub-Manager under the terms of the Management Agreement, or (c) have otherwise
become Terminated Containers.
Lease. A lease for one or more Containers between Manager (on behalf of Issuer) or
Sub-Manager (on behalf of Issuer) as Lessor, and the user of such Container(s), as Lessee, which is administered by Manager or Sub-Manager (as the case may be) as agent of Issuer. A Lease may cover one or more containers from Manager’s Fleet in
addition to Issuer’s Container(s).
Legal Final Maturity Date: With respect to any Series, the date set forth in the related
Supplement on which the unpaid principal balance of, and accrued interest on, the Notes of such Series will be due and payable. The Legal Final Maturity Date for a Series shall be set forth in the related Supplement.
Legal Final Payment Date: With respect to any Series, this term shall have the meaning set
forth in the related Supplement.
Lessee: Each lessee that leases a Container pursuant to a Lease.
Letter of Credit Right: Any “letter-of-credit right,” as such term is defined in Section
9-102(a)(51) of the UCC.
Lien: Any security interest, lien, charge, pledge,
equity or encumbrance of any kind.
Liquidating Series. One or more Series of Notes with respect to which the applicable Control
Parties have consented to or directed a sale of Collateral, but the Requisite Global Majority has not consented to such sale of Collateral.
Liquidation Deficiency Series. Any Liquidating Series that (i) has sold a portion of the
Terminated Containers and related Leases in accordance with the provisions of this Indenture regarding remedies, and (ii) after giving effect to the application of the net proceeds of such Terminated Containers and related Leases, a Liquidation
Deficiency Series Amount exists.
Liquidation Deficiency Series Amount. For any Liquidating Series, an amount equal to the
then Unpaid Principal Balance of, and accrued interest on, all Classes of the Notes of such Liquidating Series, after giving effect to the application of the proceeds of the sale relating to such Liquidating Series contemplated by this Indenture.
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Liquidating Series. One or more Series of Notes with respect to which the applicable Control
Parties have consented to or directed a sale of Collateral, but the Requisite Global Majority has not consented to such sale of Collateral.
Managed Containers. As of any date of determination, all Containers then owned by the
Issuer.
Management Agreement. The Container Management Services Agreement, dated as of the Closing
Date, among the Manager, the Sub-Manager and the Issuer, as such agreement shall be amended, supplemented or modified from time to time in accordance with its terms.
Management Fee Arrearage: For any Payment Date, an amount equal to any unpaid Management
Fee from all prior Collection Periods.
Management Fee. For any Payment Date, an amount equal to the total compensation payable to
the Manager for its services under the Management Agreement.
Manager: The Person performing the duties of the Manager under the Management Agreement;
initially, CAL.
Manager Account. Collectively, the bank accounts maintained by Manager and/or the
Sub-Manager, into which all receipts of Gross Revenue, Miscellaneous Owner Proceeds, Casualty Proceeds and Sales Proceeds relating to the Manager Fleet are deposited. Such bank accounts need not be segregated from the general account maintained by
Manager and/or the Sub-Manager for the conduct of its normal business operations so long as Manager separately accounts for sums due to Issuer under the Management Agreement and agrees that such sums are held by Manager in trust for Issuer as
provided under the Management Agreement.
Manager Advance: The term shall have the meaning as set forth in the Management Agreement.
Manager Default. With respect to any Series, any Trust Manager Default and any
Series-Specific Manager Default (as defined in the related Supplement) for such Series.
Manager Report: A report, substantially in the form attached to the Management Agreement.
Manager Termination Notice: A written notice to be
provided to the Manager and other specified Persons in accordance with the terms of the Management Agreement.
Manager Transfer Facilitator. The Person performing the duties of the Manager Transfer
Facilitator under the Manager Transfer Facilitator Agreement; initially, Wilmington Trust, National Association.
Manager Transfer Facilitator Agreement. The Manager Transfer Facilitator Agreement, dated as
of September 9, 2020, among Wilmington Trust, National Association, as Manager Transfer Facilitator, the Issuer and the Indenture Trustee, as such agreement shall be amended, restated, supplemented or otherwise modified or replaced from time to
time.
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Manager Transfer Facilitator Fee. This term shall have the meaning set forth in the Manager
Transfer Facilitator Agreement.
Manager’s Fleet. All containers owned, leased and/or managed by Manager, Sub-Manager, and
their Affiliates and other direct or indirect subsidiaries including Issuer’s Containers.
Managing Officer: Any representative of the Manager involved in, or responsible for, the management of the day-to-day operations of the Issuer and the administration and servicing of the Managed
Containers whose name appears on a list of managing officers furnished to Issuer and the Indenture Trustee by the Manager, as such list may from time to time be amended.
Master Lease. A Lease other than a Finance Lease or a Long-Term Lease.
Master Lease Fleet. As of any date of determination, all Managed Containers that are then
(a) subject to Master Leases or (b) off-lease if their Leases in effect immediately before they went off-lease were Leases subject to Master Leases.
Material Adverse Change: Any set of circumstances or events which (i) has, or could
reasonably be expected to have, any material adverse effect whatsoever upon the validity or enforceability of any Related Document or the security for any of the Notes, (ii) is, or could reasonably be expected to be, material and adverse to the
condition (financial or otherwise) or business operations of Issuer or Manager, individually or taken together as a whole, (iii) materially impairs, or could reasonably be expected to materially impair, the ability of Issuer or Manager to perform
any of their respective obligations under the Related Documents, or (iv) materially impairs, or could reasonably be expected to materially impair, the ability of the Indenture Trustee to enforce any of its legal rights or remedies pursuant to the
Related Documents.
Minimum Principal Payment Amount: With respect to any Series, the amount identified as such
in the related Supplement.
Miscellaneous Owner Proceeds. Amounts due to Manager or Sub-Manager: (i) as agent of Issuer
from the manufacturers or sellers of Containers in the Issuer’s Fleet for breach of sale warranties relating thereto, (ii) as agent of Issuer from Lessees for repair rebill proceeds on Containers which are designated for sale, and (iii) in payment
or settlement of any claims, losses, disputes or proceedings relating to such Containers; provided, however, Miscellaneous Owner Proceeds shall not include Sales Proceeds, Casualty Proceeds and
Indemnification Proceeds.
Moody’s: Moody’s Investors Service, Inc. and any successor thereto.
Net Book Value. One of the following: (A) with respect to a Managed Container that is not
subject to Finance Lease as of any date of determination, an amount equal to the Original Equipment Cost of such Container, less any accumulated depreciation, calculated utilizing the Depreciation Policy; or (B) if such Managed Container is subject
to a Finance Lease the “net investment in finance lease” for such Managed Container determined in accordance with GAAP as in effect on the initial Closing Date.
Net Operating Income or NOI. For any accounting period, Issuer Proceeds for such period
minus Operating Expenses for the Issuer's Fleet for such period.
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Noteholder or Holder: The Person in whose name a Note is registered in the Note Register,
except that, solely for the purposes of giving any consent, waiver, request or demand, the interest evidenced by any Note registered in the name of the Seller, the Issuer or any Affiliate of any of them known to be such an Affiliate by the
Indenture Trustee shall not be taken into account in determining whether the requisite percentage of the Aggregate Principal Balance of the Outstanding Notes necessary to effect any such consent, waiver, request or demand is represented.
Note Purchase Agreement. Any underwriting agreement or other purchase agreement for the
Notes of any Series.
Note Register. The register which shall provide for the registration and transfer of the
Notes and is maintained by the Indenture Trustee at its Corporate Trust Office pursuant to the Indenture.
Note Registrar: This term shall have the meaning set forth in Section 205(a) of this
Indenture.
Noteholder Tax Identification Information. Properly completed and signed tax certifications
(generally, in the case of U.S. Federal Income Tax, IRS Form W-9 (or applicable successor form) in the case of a person that is a “United States Person” within the meaning of Section 7701(a)(30) of the Code or the appropriate IRS Form W-8 (or
applicable successor form) in the case of a person that is not a “United States Person” within the meaning of Section 7701(a)(30) of the Code).
Notes. Any one of the notes or other securities executed by the Issuer pursuant to the
Indenture and authenticated by, or on behalf of, the Indenture Trustee, substantially in the form attached to the related Supplement.
OFAC: The Office of Foreign Assets Control of the United States Department of the Treasury.
Officer’s Certificate: A certificate signed by a duly authorized officer of the Person who
is required to sign such certificate.
ONOI. For any Collection Period, an amount equal to the NOI for the Issuer’s Fleet less any
Manager Fees withheld in accordance with the terms of the Management Agreement.
Operating Expenses. All expenses and costs (excluding the Total Manager Fee, G&A
Expenses and costs included in the definition of Sales Proceeds), and including all payments of fees to Affiliates of the Manager or Sub-Manager, that are for reasonable and necessary services at an expense that does not exceed the cost of
obtaining similar services in an arm’s length transaction. Operating Expenses shall be calculated on an accrual basis with respect to the operation and management of the Containers in the Issuer’s Fleet, or, where indicated, the Manager Fleet on a
Container specific basis. Operating Expenses include, but are not limited to, the following:
(a) all direct expenses and costs related to the operation and management of the Containers in the Issuer’s Fleet including but not limited to: (i) the expenses of maintaining, repairing
(including the cost of repairs made pursuant to a damage protection plan, but excluding repairs which are the responsibility of Lessees), refurbishing, storing, repositioning, surveying, recovering, and handling such Containers, including the cost of
spare parts; (ii) Independent Agent Commissions; (iii) depot fees (including the cost of storage and handling of such Containers); (iv) the expenses of inspecting; (v) bad debt expense on a specific Lessee identification basis; (vi) pro-rated
bankruptcy recovery expense; (vii) pro-rated legal fees and other costs incurred or paid by reason of uninsured claims for personal injury or property damage; (viii) pro-rated legal fees related to the collection of bad debts or legal fees incurred
or paid in connection with a proceeding against the supplier or manufacturer of such Containers; (ix) charges, assessments or levies of whatever kind or nature imposed upon or against such Containers including ad valorem, gross receipts and/or other
property taxes imposed against such Containers or against the revenues generated by such Containers; and (x) non-recoverable sales and value-added taxes on such expenses and costs. In this paragraph, “pro-rated” means a share of an expense
determined in the proportion that the total TEU or CEU of Issuer’s Containers involved in any proceeding bears to the total TEU or CEU of all containers owned or managed by Manager and/or Sub-Manager involved in the proceeding. Manager shall
allocate categories of expense based on either TEU or CEU, based on the method which in Manager's good faith discretion most fairly allocates the particular category of expense; and
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(b) certain indirect expenses that are reasonably attributable to the operation and management of the containers in the Manager’s Fleet and are therefore allocated among all such containers,
including the Containers in the Issuer’s Fleet, on an equitable, non-discriminatory basis (proportionally based on the ratio of the total number of TEU’s, CEU’s, revenue, asset value or other such metric in each fleet of containers managed by Manager
or Sub-Manager, including the Containers in the Issuer’s Fleet, to the total number of TEU’s, CEU’s, revenue, asset value or other such metric in the Manager’s Fleet). Such indirect expenses may include, but are not limited to: (i) the cost of
insurance premiums for insurance provided in accordance with the Management Agreement; (ii) bad debt reserves and write-offs in regard to doubtful accounts receivable due from specific Lessees in each case in accordance with the policies utilized by
Manager for Leases of containers that are owned by Manager; and (iii) prorated legal fees incurred or paid in connection with enforcing rights under the Leases or repossessing Containers. Manager shall allocate categories of expense based on either
TEU or CEU, based on the method which in Manager's good faith discretion most fairly allocates the particular category of expense.
Opinion of Counsel. A written opinion of counsel, in each case reasonably acceptable to the
Person or Persons to whom such Opinion of Counsel is to be delivered. Unless otherwise specified, the counsel rendering such opinion may be counsel employed by the Issuer, the Seller, or the Manager, as the context may require. The counsel
rendering such opinion may rely (i) as to factual matters, on a certificate of a Person whose duties relate to the matters being certified, and (ii) insofar as the opinion relates to local law matters, upon opinions of local counsel.
Original Equipment Cost. With respect to each Container, an amount equal to the sum of (i)
the vendor’s or manufacturer’s invoice price of the related Container and any rebates thereon, (ii) all reasonable and customary inspection, transport, and initial positioning costs necessary to put such Container in service and (iii) reasonable
acquisition fees and other fees not to exceed 2.5% of the amounts described in clauses (i) and (ii) above.
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Outstanding: When used with reference to the Notes and as of any particular date, any Note
theretofore and thereupon being authenticated and delivered except:
(i) any Note canceled by the Indenture Trustee or proven to the satisfaction of the Indenture Trustee to have been duly canceled by the Issuer at or before said date;
(ii) any Note, or portion thereof, called for payment or redemption for which monies equal to the principal amount or redemption price thereof, as the case may be, with
interest to the date of maturity or redemption, shall have theretofore been deposited with the Indenture Trustee (whether upon or prior to maturity or the redemption date of such Note);
(iii) any Note in lieu of or in substitution for which another Note shall subsequently have been authenticated and delivered; and
(iv) any Note held by the Issuer, the Seller or any Affiliate of either the Issuer or Seller.
Outstanding Obligations. As of any date of determination for any Series of Notes issued
under the Indenture or any Supplement thereto, an amount equal to the sum of (i) all accrued interest payable on such Series of Notes (including, for any Series of Notes for which the related Noteholder has funded or maintains its investment
through the issuance of commercial paper, interest accrued through the last maturing tranche, interest or fixed period, as applicable), (ii) the then Unpaid Principal Balance of such Series of Notes, (iii) all other amounts owing by the Issuer to
Noteholders or to any Person under the Indenture or any Supplement thereto and (iv) amounts owing by the Issuer under any Interest Rate Hedge Agreement.
Overdue Rate: The rate of interest specified in the related Supplement applicable to a Note
then earning Default Fee, but in no event to exceed two percent (2%) over the interest rate per annum otherwise then applicable to such Note.
Ownership Interest: An ownership interest in a Book-Entry Note.
Payment Date: The twenty fifth (25th) calendar day of each month or, if such day is not a
Business Day, on the next Business Day.
Performance Guaranty: The performance guaranty, dated as of September 9, 2020, made by CAI
with respect to the performance of CAL in its capacity as Manager.
Permitted Encumbrance. With respect to the Collateral, any of the following: (i) Liens for
taxes not yet due or which are being contested in good faith by appropriate Proceedings and for the payment of which adequate reserves are provided by the Manager; (ii) with respect to the Managed Containers, carriers’, warehousemen’s, mechanics,
or other like Liens arising in the ordinary course of business and relating to amounts not yet due or which shall not have been overdue for a period of more than sixty (60) days or which are being contested in good faith by appropriate Proceedings
and for the payment of which adequate reserves are provided by the Manager; (iii) with respect to the Managed Containers, Leases entered into in the ordinary course of business providing for the leasing of Managed Containers; (iv) Liens created by
the Indenture and (v) the rights of the Manager under the Management Agreement; provided that any Proceedings of the type described in clauses (i) and (ii) above could not reasonably be expected to subject
the Indenture Trustee or any Noteholder to any civil or criminal penalty or liability or involve any material risk of loss, sale or forfeiture of any of the Collateral.
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Person. An individual, a partnership, a limited liability company, a corporation, a joint
venture, an unincorporated association, a joint-stock company, a trust, or other entity or a Governmental Authority.
Plan: An “employee benefit plan,” as such term is defined in Section 3(3) of ERISA, or a
plan described in Section 4975(e)(1) of the Code of the Issuer or its ERISA Affiliates, in either case, which plan is subject to Title IV of ERISA.
Prepayment. Any mandatory or optional prepayment of principal of any Series of Notes prior
to the Legal Final Payment Date of such Series including, without limitation, any prepayment pursuant to the Indenture.
Principal Terms. With respect to any Series, (i) the name or designation of such Series;
(ii) the initial principal amount of the Notes to be issued for such Series (or method for calculating such amount) and the Minimum Principal Payment Amounts, the Scheduled Principal Payment Amount for each Payment Date (or method for calculating
such amount); (iii) the interest rate to be paid with respect to each Class of Notes for such Series (or method for the determination thereof); (iv) the Payment Date and the date or dates from which interest shall accrue and principal shall be
paid; (v) the designation of any Series Accounts and the terms governing the operation of any such Series Accounts including the Permitted Payment Date Withdrawals with respect to such Series; (vi) the terms of any form of series enhancement with
respect thereto; (vii) the Expected Final Payment Date for the Series; (viii) the Legal Final Payment Date for the Series; (ix) the number of Classes of Notes of the Series and, if the Series consists of more than one Class, the rights and
priorities of each such Class; (x) the priority of the Series with respect to any other Series; (xi) the designation of such Series on its Series Issuance Date as either a Term Note or a Warehouse Note; (xii) the Control Party with respect to such
Series; (xiii) each of the following for such Series: any Series-Specific Collateral, any Series-Specific Early Amortization Events, any Series-Specific Events of Default, any Series-Specific Manager Defaults, any Required Payments for such Series,
the Advance Rate(s) for such Series, the Required Overcollateralization Percentage for such Series, the Excess Concentration Percentage for such Series and the information necessary to complete the Invested Amount for such Series, the Available
Funds for such Series, any Back-up Manager Events for such Series, and (xiv) any other terms of such Series.
Proceeding: Any suit in equity, action at law, or other judicial or administrative
proceeding.
Proceeds: Any “proceeds,” as such term is defined
in Section 9-102(a)(64) of the UCC.
Prospective Owner: This term shall have the meaning as set forth in Section 205(h) of this
Indenture.
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Purchaser Letter: This term shall have the meaning set forth in Section 205(i) of this
Indenture.
Rating Agency or Rating Agencies: With respect to
any Outstanding Series, each statistical rating agency selected by the Issuer to rate such Series which has an outstanding rating with respect to such Series.
Rating Agency Condition. With respect to (i) (A) the issuance of an additional Series, (B)
any Change of Control or other “Series Specific Manager Default” (as defined in the Management Agreement), (C) any waiver of a Trust Event of Default or Trust Manager Default, (D) for purposes of the Aggregate Asset Base calculation, any revision
to the Depreciation Policy which would reduce the amount of depreciation expense that would be recorded in any year from that which would have been recorded pursuant to the Depreciation Policy prior to such revision or (E) any other action
expressly specified in any Related Document as requiring the affirmative approval or consent of each Rating Agency, means a confirmation issued in writing by each Rating Agency that has issued an outstanding rating with respect to any Series of
Notes then Outstanding that the rating(s) on such existing Series will not be downgraded or withdrawn as the result of the issuance of such additional Series, change of control, waiver or other action; and (ii) any other action, means that each
Rating Agency that has issued an outstanding rating with respect to any Series of Notes then Outstanding shall have been given ten (10) Business Days (or such shorter period as is practicable or acceptable to each Rating Agency) prior notice
thereof and, within such notice period, such Rating Agency shall not have notified the Sellers, the Indenture Trustee or Issuer in writing that such action will result in a downgrade, qualification or withdrawal of any such outstanding rating; provided, however, the term “Rating Agency Condition” shall also include the satisfaction of any other requirement for the fulfillment of the Rating Agency Condition that may be set forth in a Supplement for any
Series of Notes which is not rated.
Record Date: Except as otherwise provided with respect to a Series in the related
Supplement, with respect to any Payment Date, the last Business Day of the month preceding the month in which the related Payment Date occurs.
Regulation S Book-Entry Notes: Collectively, the Unrestricted Book-Entry Notes and the
Regulation S Temporary Book-Entry Notes.
Regulation S Temporary Book-Entry Notes: The temporary book-entry notes in fully registered
form without coupons that represent the Notes sold in offshore transactions within the meaning of and in compliance with Regulation S under the Securities Act and which will be registered with the Depositary.
Related Assets. With respect to any Transferred Container, all of the following: (i) all
right, title and interest of the Seller directly or indirectly in and to, but none of the obligations under, any agreement with the manufacturer of such Transferred Container to the extent (but only to the extent) related to the Transferred
Container, and all amendments, additions and supplements thereafter made with respect to such Transferred Container, (ii) all right, title and interest of the Seller in and to any Lease to which such Transferred Container is subject on the Transfer
Date, but only to the extent that such Lease relates to such Transferred Container, including all lease rentals accruing with respect thereto as of the related Transfer Date or other earlier date, (iii) all documents in the lease file relating to
such Transferred Container, but only to the extent relating to such Transferred Container, (iv) all records to the extent relating to such Transferred Container, (v) all right, title and interest of the Seller in and to any other property
identified in the related container sale certificate, (vi) all Casualty Proceeds, Sales Proceeds, Miscellaneous Owner Proceeds, Indemnification Proceeds and Gross Revenues related to such Transferred Container (and only to the extent related to the
Transferred Container), (vii) all other security interests or Liens and property subject thereto from time to time purporting to secure payment of the Leases (to the extent, but only to the extent, attributable to such Transferred Container),
(viii) all letters of credit, guarantees, Supporting Obligations and other agreements or arrangements of whatever character from time to time supporting or securing payment of any Lease (to the extent, but only to the extent, attributable to such
Transferred Container), and (ix) all other payments, proceeds (including, without limitation, insurance proceeds), income and distributions (in cash, securities or otherwise) of the foregoing or directly or indirectly related thereto.
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Related Documents. With respect to any Series, the Contribution and Sale Agreement, this
Indenture, the related Supplement, the Notes of such Series, the Note Purchase Agreement for such Series, the Management Agreement, the Performance Guaranty, the Manager Transfer Facilitator Agreement, the Intercreditor Collateral Agreement, each
Interest Rate Hedge Agreement (upon execution thereof), and each other document or instrument executed in connection with the issuance of any Series, as any of the foregoing may from time to time be amended, modified, supplemented or renewed.
Released Assets: This term shall have the meaning set forth in the Contribution and Sale
Agreement.
Released Containers: This term shall have the meaning set forth in the Contribution and
Sale Agreement.
Replacement Manager. Any Person appointed to replace the then Manager as manager of the
Managed Containers, which Person shall be acceptable to the Requisite Global Majority.
Required Deposit Rating: With regard to an institution, the short-term unsecured senior debt
rating of such institution is in a category signifying investment grade by each rating Agency.
Required Overcollateralization Percentage. For any Series of Notes, the percentage set
forth in the related Supplement.
Required Payments. For any Series of Notes then Outstanding, the payments identified as such
in the related Supplement. Such Supplement shall also specify the relative priority in which the various components of the Required Payments are to be paid.
Required Payment Deficiency. For each Series of Notes then Outstanding, the condition that
will exist if funds on deposit on the Series Account for such Series (determined after giving effect to all draws on each Restricted Cash Account(s) for such Series, but without giving effect to any allocation of Shared Available Funds to such
Series) is not sufficient to pay all Required Payments for such Series of Notes.
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Requisite Global Majority: As of any date of determination, the determination of whether a
Requisite Global Majority exists with respect to a particular course of action shall be determined in accordance with Section 503 of this Indenture.
Responsible Officer: When used with respect to the Indenture Trustee and the Manager
Transfer Facilitator, any officer assigned to the Corporate Trust Office (or any successor thereto), including any Vice President, Assistant Vice President, Trust Officer, any Assistant Secretary, any trust officer or any other officer of the
Indenture Trustee customarily performing functions similar to those performed by any of the above designated officers and having direct responsibility for the administration of this Indenture.
Restricted Cash Account. The account(s) designated as such in the related Supplement.
Rule 144A: Rule 144A under the Securities Act, as such Rule may be amended from time to
time.
Rule 144A Book-Entry Notes: The permanent book-entry notes in fully registered form without
coupons that represent the Notes sold in reliance on Rule 144A and which will be registered with the Depositary.
Sale: This term shall have the meaning set forth in Section 816 of this Indenture.
Sales Proceeds: This term shall have the meaning set forth in the Management Agreement.
Sanctioned Country. Any country or territory to the extent that the government of such
country or territory is the subject of Sanctions consisting of a general embargo imposed by any Sanctions Authority.
Sanctioned Person. Any of the following: (a) any Person that is listed on, or owned or
controlled by a Person listed on (or a Person acting on behalf of such a Person) (i) the list of “Specially Designated Nationals and Blocked Persons” maintained by OFAC available at
http://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx or as otherwise published from time to time, the “Sectoral Sanctions Identifications” list maintained by OFAC available at
http://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/ssi_list.aspx or as otherwise published from time to time, or the “Foreign Sanctions Evaders” list maintained by OFAC available at
http://www.treasury.gov/resource-center/sanctions/SDNList/Pages/ fse_list.aspx or as otherwise published from time to time, (ii) the Consolidated List of Financial Sanctions Targets and the Investment Ban List maintained by Her Majesty’s Treasury
or (iii) any similar list maintained by, or public announcement of a Sanctions designation made by, a Sanctions Authority, each as amended, supplemented or substituted from time to time; or (b) (i) an agency of the government of a Sanctioned
Country, (ii) an organization directly or indirectly controlled by a Sanctioned Country or (iii) a Person resident in (or organized under the laws of) a Sanctioned Country (to the extent subject to a Sanctions program administered by OFAC, the
European Union or the United Nations), or (iv) a Person who is owned or controlled by, or acting on behalf of such a Person.
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Sanctions. Any trade, economic or financial sanctions laws, regulations, embargoes or
restrictive measures administered, enacted or enforced by a Sanctions Authority.
Sanctions Authority. Each of the following: (a) the United States Government, (b) the
United Nations Security Council, (c) the European Union, (d) the United Kingdom, (e) the governments, official institutions or agencies and other relevant sanctions authorities of any of the foregoing in clauses (a) through (d), including OFAC, the
US Department of State, and Her Majesty’s Treasury or (f) any other governmental authority with jurisdiction over the Issuer, TL or the Manager.
Scheduled Principal Payment Amount: With respect to any Series of Notes, the amount
identified as such in the related Supplement.
Securities Account: Any “securities account,” as such term is defined in Section 8-501 of
the UCC.
Securities Act: The Securities Act of 1933, as amended from time to time.
Securities Entitlement: Any “securities entitlement,” as such term is defined in Section
8-102(a)(17) of the UCC.
Securities Intermediary: Any “securities intermediary”, as such term is defined in Section
8-102 of the UCC.
Sellers: CAL and CAL Funding III.
Senior Notes. With respect to any Series of Notes, those Note(s) of such Series, if any,
that are designated as “Senior Notes” in the related Supplement.
Series: Any series of Notes established pursuant to a Supplement.
Series Account: Any deposit, trust, escrow or similar account maintained for the benefit of
the Noteholders of any Series or Class as specified in the related Supplement.
Series Enhancer: With respect to any Series, a party that provides credit support to enhance
the credit rating of the Notes of such Series.
Series Issuance Date: With respect to any Series, the date on which the Notes of such Series
are to be originally issued in accordance with Section 1006 of this Indenture and the related Supplement.
Series-Specific Collateral. With respect to any Series of Notes, the collateral identified
as such in the related Supplement.
Series Specific Early Amortization Event: With respect to any Series of Notes, the events or
conditions identified as such in the related Supplement.
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Series Specific Event of Default: With respect to any Series of Notes, the events or
conditions identified as such in the related Supplement.
Series Specific Manager Default: With respect to any Series of Notes, the events or
conditions identified as such in the related Supplement.
Shared Available Funds. For any Series, this term shall have the meaning set forth in the
Supplement for such Series.
Standard & Poor’s: Standard and Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc., and any successor thereto.
Step Up Warehouse Fee. For any Series of Warehouse Notes, the incremental fee (whether or
not characterized as a fee in the relevant Related Documents) payable by the Issuer on such Warehouse Notes upon the occurrence and continuance of an Early Amortization Event for such Series or Event of Default for such Series.
Subordinate Notes. With respect to any Series of Notes, those Note(s), if any, that are
designated as “Subordinate Notes” in the related Supplement.
Subsidiary: A subsidiary of a Person means any corporation, association, partnership,
limited liability company, joint venture or other business entity of which more than fifty percent (50.0%) of the voting stock or other equity interests (in the case of Persons other than corporations) is owned or controlled directly or indirectly
by such Person, or one or more of the Subsidiaries of such Person, or a combination thereof.
Sub-Manager. CAI.
Substitute Container(s). Replacement container(s) that may be substituted for Containers
pursuant to the terms of the Indenture and the Contribution and Sale Agreement.
Supplement: Any supplement to the Indenture executed in accordance with Article X of this
Indenture.
Supplemental Principal Payment Amount: With respect to any Series of Notes, the amount
identified as such in the related Supplement.
Supporting Obligation: Any “supporting obligation” as defined in Section 9-102(a)(77) of
the UCC.
Synthetic Lease: Any lease of goods or other property, whether real or personal, which is
treated as an operating lease under GAAP and as a loan or financing for U.S. income tax purposes.
Term Note. Any Note that pays principal and interest on each Payment Date from and after its
date of issuance.
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Terminated Container. A Container in the Issuer's Fleet which: (a)(i) on the date that the
Management Agreement is terminated pursuant to its terms is (x) off-hire and in a depot, or (y) subject to a Finance Lease where Issuer's Containers are the only containers subject to such Lease, or (ii) after such date is off-hired and returned to
a depot; or (b) is subject to a Casualty Loss or a Container Disposal; or (c) has been subject to a Container Sale.
Transfer Date: The date on which a container is contributed or sold by the Seller to the
Issuer pursuant to the terms of the Contribution and Sale Agreement.
Transferred Assets. With respect to any Transferred Container, all of the following: (i)
all right, title and interest of the Seller directly or indirectly in and to, but none of the obligations under, any agreement with the manufacturer of such Transferred Container to the extent (but only to the extent) related to the Transferred
Container, and all amendments, additions and supplements thereafter made with respect to such Transferred Container, (ii) all right, title and interest of the Seller in and to any Lease to which such Transferred Container is subject on the Transfer
Date, but only to the extent that such Lease relates to such Transferred Container, including all lease rentals accruing with respect thereto as of the related Transfer Date, (iii) all documents in the lease file relating to such Transferred
Container, but only to the extent relating to such Transferred Container, (iv) all records to the extent relating to such Transferred Container, (v) all right, title and interest of the Seller in and to any other property identified in the related
container sale certificate, (vi) all Casualty Proceeds, Sales Proceeds, Miscellaneous Owner Proceeds, Indemnification Proceeds and Gross Revenues related to such Transferred Container, (vii) all other security interests or Liens and property
subject thereto from time to time purporting to secure payment of the Leases (to the extent, but only to the extent, attributable to such Transferred Container), (viii) all letters of credit, guarantees, Supporting Obligations and other agreements
or arrangements of whatever character from time to time supporting or securing payment of any Lease (to the extent, but only to the extent, attributable to such Transferred Container), and (ix) all other payments, proceeds (including, without
limitation, insurance proceeds), income and distributions (in cash, securities or otherwise) of the foregoing or directly or indirectly related thereto.
Transferred Container. Each container transferred by the Seller to the Issuer pursuant to
the terms of the Contribution and Sale Agreement.
Trust Account: The non-interest bearing trust account or accounts established by the
Indenture Trustee, in the name of the Indenture Trustee, for the benefit of the Noteholders of all Series, pursuant to Section 302 hereof.
Trust Early Amortization Event. The occurrence of any of the events or conditions set forth
in Section 1201 hereof.
Trust Event of Default. The occurrence of any of the events or conditions set forth in
Section 801 hereof.
Trust Manager Default. The term shall have the meaning as set forth in the Management
Agreement.
UCC. The Uniform Commercial Code as the same may, from time to time, be in effect in the
State of New York; provided, however, in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of the Indenture Trustee’s security interest in any
Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of 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 attachment, perfection of priority and for purposes of definitions related to such provisions.
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Unpaid Principal Balance. On any date of determination (i) for any Note or Class of Note(s),
the then unpaid principal balance of such Note or Class of Notes, as the case may be, and (ii) for each Series of Notes then Outstanding, an amount equal to the then Unpaid Principal Balance of all Notes of such Series that are then Outstanding.
Unrestricted Book-Entry Notes: The permanent book-entry notes in fully registered form
without coupons that are exchangeable for Regulation S Temporary Book-Entry Notes after the expiration of the 40-day distribution compliance period and which will be registered with the Depositary.
Warehouse Note: Any Series of Notes that has a revolving period during which periodic
payments of principal are not scheduled to be paid.
Warranty Purchase Amount. With respect to any Transferred Container to be repurchased by the
Seller pursuant to the terms of the Contribution and Sale Agreement, an amount equal to the excess of (x) the Net Book Value of such Transferred Container on the related Transfer Date over (y) all rental and other payments received by the Indenture
Trustee, on behalf of the Noteholders, with respect to such Transferred Container and the Transferred Assets since the related Transfer Date.Weighted Average Age. For any date of determination shall be
equal to the quotient of (A) the sum of the products of (i) the age in years (determined from the date of the initial sale thereof by the manufacturer) of each Managed Container being evaluated, multiplied by (ii) the Net Book Value of such Managed
Container being evaluated, divided by (B) the sum of the Net Book Values of all Managed Containers being evaluated.
Section 102. Other Definitional Provisions.
(a) With respect to any Series, all terms used herein and not otherwise defined herein shall have meanings ascribed to them in the related
Supplement.
(b) All terms defined in this Indenture shall have the defined meanings when used in any agreement, certificate or other document made or delivered
pursuant hereto, including any Supplement, unless otherwise defined therein.
(c) As used in this Indenture and in any certificate or other document made or delivered pursuant hereto or thereto, accounting terms not defined in
this Indenture or in any such certificate or other document, and accounting terms partly defined in this Indenture or in any such certificate or other document to the extent not defined, shall have the respective meanings given to them under GAAP,
consistently applied. To the extent that the definitions of accounting terms in this Indenture or in any such certificate or other document are inconsistent with the meanings of such terms under GAAP or regulatory accounting principles, the
definitions contained in this Indenture or in any such certificate or other document shall control.
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(d) With respect to any Collection Period, the “related Record Date,” the “related Determination Date,” and the “related Payment Date,” shall mean the
Record Date occurring on the last Business Day of such Collection Period and the Determination Date and Payment Date occurring in the month immediately following the end of such Collection Period.
(e) With respect to any Series of Notes, the “related Supplement” shall mean the Supplement pursuant to which such Series of Notes is issued.
(f) References to the financial statements of CAI shall mean the financial statements of CAI and its consolidated Subsidiaries.
(g) With respect to any ratio analysis required to be performed as of the most recently completed fiscal quarter, the most recently completed fiscal
quarter shall mean the fiscal quarter for which financial statements were required hereunder to have been delivered.
(h) With respect to the calculation of any financial ratio set forth in this Indenture or any other Related Document, the components of such
calculations are to be determined in accordance with GAAP, consistently applied, with respect to the Issuer or the Manager, as the case may be.
Section 103. Computation of Time Periods.
Unless otherwise stated in this Indenture or any Supplement issued pursuant to the terms hereof, in the computation of a period of time from a specified date to a later specified date, the word
“from” means “from and including” and the words “to” and “until” each means “to but excluding.”
Section 104. Statutory References.
References in this Indenture and any other Related Document to any section of the UCC shall mean, on or after the effective date of adoption of any revision to the UCC in the applicable jurisdiction,
such revised or successor section thereto.
Section 105. Duties of Manager Transfer Facilitator.
All of the duties and responsibilities of the Manager Transfer Facilitator set forth in this Indenture, any Supplement or any other Related Document issued are subject in all respects to the terms
and conditions of the Manager Transfer Facilitator Agreement. Each of the Issuer, the Indenture Trustee and, by acceptance of its Notes, each Noteholder hereby acknowledges the terms of the Manager Transfer Facilitator Agreement, respectively, and
agrees to cooperate with the Manager Transfer Facilitator in their execution of its duties and responsibilities.
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ARTICLE II
THE NOTES
Section 201. Authorization of Notes.
(a) The number of Series or Classes of Notes which may be created by this Indenture is not limited; provided,
however, that, the issuance of any Series of Notes shall not result in, or with the giving of notice or the passage of time or both would result in, the occurrence of a Trust Early Amortization Event, a Series Specific Early Amortization
Event, a Trust Event of Default or a Series-Specific Event of Default. The aggregate principal amount of Notes of each Series which may be issued, authenticated and delivered under this Indenture is not limited except as shall be set forth in any
Supplement and as restricted by the provisions of this Indenture.
(b) The Notes issuable under this Indenture shall be issued in such Series (and with such Classes, if applicable), as may from time to time be
created by a Supplement pursuant to this Indenture. Each Series shall be created by a different Supplement and shall be designated to differentiate the Notes of such Series from the Notes of any other Series.
(c) Upon satisfaction of and compliance with the requirements and conditions to closing set forth in the related Supplement, Notes of the Series to
be executed and delivered on a particular Series Issuance Date pursuant to such related Supplement, may be executed by the Issuer and delivered to the Indenture Trustee for authentication following the execution and delivery of the related Supplement
creating such Series or from time to time thereafter, and the Indenture Trustee shall authenticate and deliver Notes upon an Issuer request set forth in an Officer’s Certificate of the Issuer signed by one of its Authorized Signatories, without
further action on the part of the Issuer.
Section 202. Form of Notes; Book-Entry Notes.
(a) Notes of any Series or Class may be issued, authenticated and delivered, at the option of the Issuer, as Regulation S Book-Entry Notes, Rule 144A
Book-Entry Notes, and/or as Definitive Notes or as may otherwise be set forth in a Supplement and shall be substantially in the form of the exhibits attached to the related Supplement. Notes of each Series shall be dated the date of their
authentication and shall bear interest at such rate, be payable as to principal, premium, if any, and interest on such date or dates, and shall contain such other terms and provisions as shall be established in the related Supplement. Except as
otherwise provided in any Supplement, the Notes shall be issued in minimum denominations of $250,000 and in integral multiples of $1,000 in excess thereof; provided that one Note of each Class may be issued
in a nonstandard denomination.
(b) If the Issuer shall choose to issue Regulation S Book-Entry Notes or Rule 144A Book-Entry Notes, such notes shall be issued in the form of one or
more Regulation S Book-Entry Notes or one or more Rule 144A Book-Entry Notes which (i) shall represent, and shall be denominated in an aggregate amount equal to, the aggregate principal amount of all Notes to be issued hereunder, (ii) shall be
delivered as one or more Notes held by the Book-Entry Custodian, or, if appointed to hold such Notes as provided below, the Notes shall be registered in the name of the Depositary or its nominee, (iii) shall be substantially in the form of the
exhibits attached to the related Supplement, with such changes therein as may be necessary to reflect that each such Note is a Book-Entry Note, and (iv) shall each bear a legend substantially to the effect included in the form of the exhibits
attached to the related Supplement.
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(c) Notwithstanding any other provisions of this Section 202 or of Section 205, unless and until a Book-Entry Note is exchanged in whole for
Definitive Notes, a Book-Entry Note may be transferred, in whole, but not in part, and in the manner provided in this Section 202, only by (i) the Depositary to a nominee of such Depositary, or (ii) by a nominee of such Depositary to such Depositary
or another nominee of such Depositary or (iii) by such Depositary or any such nominee to a successor Depositary selected or approved by the Issuer or to a nominee of such successor Depositary or in the manner specified in Section 202(d). The
Depositary shall order the Note Registrar to authenticate and deliver any Book-Entry Notes and any Book-Entry Note for each Series of Notes having an aggregate initial outstanding principal balance equal to the initial outstanding balance of such
Series. Noteholders shall hold their respective ownership interests in and to such Notes through the book-entry facilities of the Depositary. Without limiting the foregoing, any Book-Entry Noteholders shall hold their respective ownership
interests, if any, in Book-Entry Notes only through Depositary Participants.
(d) If (i) the Issuer elects to issue Definitive Notes, (ii) the Depositary for the Notes represented by one or more Book-Entry Notes at any time
notifies the Issuer that it is unwilling or unable to continue as Depositary of the Notes or if at any time the Depositary shall no longer be a clearing agency registered under the Exchange Act and any other applicable statute or regulation, and a
successor Depositary is not appointed or approved by the Issuer within 90 days after the Issuer receives such notice or becomes aware of such condition, as the case may be, (iii) the Indenture Trustee, at the written direction of the Noteholders
representing more than 50% of the outstanding principal balance of the Notes, elects to terminate the book entry system through the Depositary or (iv) after a Trust Event of Default or a Series-Specific Event of Default, Noteholders of such Series
notify the Depositary, or Book-Entry Custodian, as the case may be, in writing that the continuation of a book-entry system through the Depositary, or the Book-Entry Custodian, as the case may be, is no longer in such Noteholders’ best interest, upon
the request of such Noteholders, the Issuer will promptly execute, and the Indenture Trustee, upon receipt of an Officer’s Certificate evidencing such determination by the Issuer, will promptly authenticate and make available for delivery, Definitive
Notes for such Series, in authorized denominations and in an aggregate principal amount equal to the principal amount of the Book-Entry Note then outstanding for such Series in exchange for such Book-Entry Note or as an original issuance of Notes and
this Section 202(d) shall no longer be applicable to the Notes of such Series. Upon the exchange of such Book-Entry Notes for such Definitive Notes without coupons, in authorized denominations, such Book-Entry Notes shall be canceled by the
Indenture Trustee. All Definitive Notes shall be issued without coupons. Such Definitive Notes issued in exchange of the Book-Entry Notes pursuant to this Section 202(d) shall be registered in such names and in such authorized denominations as the
Depositary, in the case of an exchange, or the Note Registrar, in the case of an original issuance, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Indenture Trustee. The Indenture Trustee may
conclusively rely on any such instructions furnished by the Depositary or the Note Registrar, as the case may be, and shall not be liable for any delay in delivery of such instructions. The Indenture Trustee shall make such Notes available for
delivery to the Persons in whose names such Notes are so registered.
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(e) As long as the Notes outstanding are represented by one or more Book Entry Notes:
(i) the Note Registrar and the Indenture Trustee may deal with the Depositary for all purposes (including the payment of
principal of and interest on the Notes) as the authorized representative of the Noteholders;
(ii) the rights of Noteholders shall be exercised only through the Depositary and shall be limited to those established by law and
agreements between such Noteholders and the Depositary and/or the Depositary Participants. Unless and until Definitive Notes are issued, the Depositary will make book-entry transfers among the Depositary Participants and receive and transmit
payments of principal of, and interest on, the Notes to such Depositary Participants; and
(iii) whenever this Indenture requires or permits actions to be taken based upon instructions or directions of Holders of Notes
evidencing a specified percentage of the voting rights of a particular series, the Depositary shall be deemed to represent such percentage only to the extent that it has received instructions to such effect from Noteholders and/or Depositary
Participants owning or representing, respectively, such required percentage of the beneficial interest in the Notes and has delivered such instruction to the Indenture Trustee.
(f) Whenever a notice or other communication to the Noteholders is required under this Indenture, unless and until Definitive Notes have been issued
to Noteholders, the Indenture Trustee shall give all such notices and communications to the Depositary.
(g) The Indenture Trustee is hereby initially appointed as the Book-Entry Custodian and hereby agrees to act as such in accordance with the agreement
that it has with the Depositary authorizing it to act as such. The Book-Entry Custodian may, and, if it is no longer qualified to act as such, the Book-Entry Custodian shall, appoint, by written instrument delivered to the Issuer and the Depositary,
any other transfer agent (including the Depositary or any successor Depositary) to act as Book-Entry Custodian under such conditions as the predecessor Book-Entry Custodian and the Depositary or any successor Depositary may prescribe, provided that the predecessor Book-Entry Custodian shall not be relieved of any of its duties or responsibilities by reason of any such appointment of other than the Depositary. If the Indenture Trustee resigns
or is removed in accordance with the terms hereof, the successor Indenture Trustee or, if it so elects, the Depositary shall immediately succeed to its predecessor’s duties as Book-Entry Custodian. The Issuer shall have the right to inspect, and to
obtain copies of, any Notes held as Book-Entry Notes by the Book-Entry Custodian.
(h) The provisions of Section 205(i) shall apply to all transfers of Definitive Notes, if any, issued in respect of ownership interests in the Rule
144A Book-Entry Notes.
(i) To the extent Definitive Notes are issued under any Supplement, the Issuer will require that each relevant Noteholder provide Noteholder Tax
Identification Information to the Indenture Trustee and, if requested, a transfer statement in accordance with Treasury Regulation section 1.6045A-1(a)(1) to the Indenture Trustee to comply with its cost basis reporting obligations under the Code.
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(j) No transfer of any Note or interest therein shall be made unless that transfer is made pursuant to an effective registration statement under the
Securities Act, and effective registration or qualification under applicable state securities laws, or is made in a transaction that does not require such registration or qualification. If a transfer of any Definitive Note is to be made without
registration under the Securities Act (other than in connection with the initial issuance thereof or a transfer thereof by the Depositary or one of its Affiliates), then the Note Registrar shall refuse to register such transfer unless it receives
(and upon receipt, may conclusively rely upon) either: (i) a certificate from such Noteholder substantially in the form attached as Exhibit C hereto or such other certification reasonably acceptable to the Indenture Trustee and a certificate
from such Noteholder’s prospective transferee substantially in the form attached as Exhibit C hereto or such other certification reasonably acceptable to the Indenture Trustee; or (ii) an Opinion of Counsel satisfactory to the Indenture
Trustee to the effect that such transfer may be made without registration under the Securities Act (which Opinion of Counsel shall not be an expense of the Issuer or any Affiliate thereof or of the Depositary, the Manager or Affiliate thereof, the
Indenture Trustee or the Note Registrar in their respective capacities as such), together with the written certification(s) as to the facts surrounding such transfer from the Noteholder desiring to effect such transfer and/or such Noteholder’s
prospective transferee on which such Opinion of Counsel is based. If such a transfer of any interest in a Book-Entry Note is to be made without registration under the Securities Act, the transferor will be deemed to have made each of the
representations and warranties set forth on Exhibit C hereto in respect of such interest as if it was evidenced by a Definitive Note and the transferee will be deemed to have made each of the representations and warranties set forth in Exhibit
C hereto in respect of such interest as if it was evidenced by a Definitive Note. None of the Depositary, the Issuer, the Indenture Trustee or the Note Registrar is obligated to register or qualify the Notes under the Securities Act or any
other securities law or to take any action not otherwise required under this Indenture to permit the transfer of any Note or interest therein without registration or qualification. Any Noteholder desiring to effect such a transfer shall, and does
hereby agree to, indemnify the Depositary, the Issuer, the Indenture Trustee and the Note Registrar against any liability that may result if the transfer is not so exempt or is not made in accordance with such federal and state laws.
Section 203. Execution, Recourse Obligation.
The Notes shall be executed on behalf of the Issuer by an Authorized Signatory of the Issuer. The Notes shall be dated the date of their authentication by the Indenture Trustee.
In case any Authorized Signatory of the Issuer whose signature shall appear on the Notes shall cease to be an Authorized Signatory of the Issuer before the authentication by the Indenture Trustee and
delivery of such Notes, such signature or facsimile signature shall nevertheless be valid and sufficient for all purposes.
All Notes and the interest thereon shall be full recourse obligations of the Issuer and shall be secured by all of the Issuer’s right, title and interest in the Collateral. The Notes shall never
constitute obligations of the Indenture Trustee, the Manager, the Sellers or of any shareholder or any Affiliate of any Seller (other than the Issuer) or any member or shareholder of the Issuer, or any officers, directors, employees or agents of any
thereof, and no recourse may be had under or upon any obligation, covenant or agreement of this Indenture, any Supplement or of any Notes, or for any claim based thereon or otherwise in respect thereof, against any incorporator or against any past,
present, or future owner, partner of an owner or any officer, employee or director thereof or of any successor entity, or any other Person, either directly or through the Issuer, whether by virtue of any constitution, statute or rule of law, or by
the enforcement of any assessment or penalty or otherwise; it being expressly agreed that this Indenture and the obligations issued hereunder are solely obligations of the Issuer, and that no such personal liability whatever shall attach to, or is or
shall be incurred by, any other Person under or by reason of this Indenture, any Supplement or any Notes or implied therefrom, or for any claim based thereon or in respect thereof, all such liability and any and all such claims being hereby expressly
waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issue of such Notes. Except as provided in any Supplement, no Person other than the Issuer shall be liable for any obligation of the Issuer
under this Indenture or any Note or any losses incurred by any Noteholder.
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Section 204. Certificate of Authentication.
No Notes shall be secured hereby or entitled to the benefit hereof or shall be or become valid or obligatory for any purpose unless there shall be endorsed thereon a certificate of authentication by
the Indenture Trustee, substantially in the form set forth in the form of Note attached to the related Supplement. Such certificate on any Note issued by the Issuer shall be conclusive evidence and the only competent evidence that it has been duly
authenticated and delivered hereunder.
At the written direction of the Issuer, the Indenture Trustee shall authenticate and deliver the Notes. It shall not be necessary that the same Authorized Signatory of the Indenture Trustee execute
the certificate of authentication on each of the Notes.
Section 205. Registration; Registration of Transfer and Exchange of Notes.
(a) The Indenture Trustee shall keep at its Corporate Trust Office books for the registration and transfer of the Notes (the “Note Register”). The
Issuer hereby appoints the Indenture Trustee as its registrar (the “Note Registrar”) and transfer agent to keep such books and make such registrations and transfers as are hereinafter set forth in this Section 205 and also authorizes and directs the
Indenture Trustee to provide a copy of such registration record to the Manager upon its request. The names and addresses of the Holders of all Notes and all transfers of, and the names and addresses of, and the principal amounts (and stated
interest) owing to, the transferee of, all Notes will be registered in such Note Register. The Person in whose name any Note is registered shall be deemed and treated as the owner and Holder thereof for all purposes of this Indenture, and the
Indenture Trustee and the Issuer shall not be affected by any notice or knowledge to the contrary. If a Person other than the Indenture Trustee is appointed by the Issuer to maintain the Note Register, the Issuer will give the Indenture Trustee and
each Administrative Agent prompt written notice of such appointment and of the location, and any change in the location, of the successor note registrar. Notwithstanding the foregoing, so long as Wilmington Trust, National Association is acting as
the Indenture Trustee, it shall also act as the Note Registrar.
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(b) Payments of principal, premium, if any, and interest on any Note shall be payable on each Payment Date only to the registered Holder thereof on
the Record Date immediately preceding such Payment Date. The principal of, premium, if any, and interest on each Note shall be payable at the Corporate Trust Office in immediately available funds in such coin or currency of the United States of
America as at the time for payment shall be legal tender for the payment of public and private debts. Except as set forth in any Supplement, all interest payable on the Notes shall be computed on the basis of a 360-day year consisting of twelve
30-day months. Notwithstanding the foregoing or any provision in any Note to the contrary, if so requested by the registered Holder of any Note by written notice to the Indenture Trustee, all amounts payable to such registered Holder may be paid
either (i) by crediting the amount to be distributed to such registered Holder to an account maintained by such registered Holder with the Indenture Trustee or by transferring such amount by wire to such other bank in the United States, including a
Federal Reserve Bank, as shall have been specified in such notice, for credit to the account of such registered Holder maintained at such bank, or (ii) by mailing a check to such address as such Holder shall have specified in such notice, in either
case without any presentment or surrender of such Note to the Indenture Trustee (except in connection with the final payment on a Note in accordance with Section 207) at the Corporate Trust Office.
(c) All payments on the Notes shall be paid to the Noteholders reflected in the Note Register as of the related Record Date by wire transfer of
immediately available funds for receipt prior to 2:00 p.m. (New York City time) on the related Payment Date. Any payments received by the Noteholders after 2:00 p.m. (New York City time) on any day shall be considered to have been received on the
next succeeding Business Day; provided, however, that if the Issuer has deposited the required funds with the Indenture Trustee by 1:00 p.m. (New York City time), on
such date, then the Issuer, upon receipt by the Noteholders of such payment, shall be deemed to have made such payment at the time so required. Notwithstanding the foregoing or any provision in any Note to the contrary, if so requested by the
registered Noteholder by written notice to the Indenture Trustee, all amounts payable to such registered Noteholder may be paid by mailing on the related Payment Date a check to such address as such Noteholder shall have specified in such notice, in
either case without any presentment or surrender of such Note (except in connection with the final payment on a Note in accordance with Section 207) to the Indenture Trustee at the Corporate Trust Office.
(d) Upon surrender for registration of transfer of any Note at the Corporate Trust Office, the Issuer shall execute and the Indenture Trustee, upon
written request, shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Notes of the same Series (and Class, if applicable), of any authorized denominations and of a like aggregate original principal
amount.
(e) All Notes issued upon any registration of transfer or exchange of Notes shall be the legal, valid and binding obligations of the Issuer,
evidencing the same debt, and entitled to the same benefits under this Indenture and any Supplement, as the Notes surrendered upon such registration of transfer or exchange.
(f) Every Note presented or surrendered for registration of transfer or for exchange shall (if so required by the Issuer or the Indenture Trustee)
be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Issuer and the Indenture Trustee duly executed, by the Holder thereof or his attorney duly authorized in writing.
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(g) Any service charge, fees or expenses made or expense incurred by the Indenture Trustee for any such registration, discharge from registration or
exchange referred to in this Section 205 shall be paid by the Noteholder. The Indenture Trustee or the Issuer may require payment by the Holder of a sum sufficient to cover any tax expense or other governmental charge payable in connection
therewith.
(h) If Notes are issued or exchanged in definitive form under Section 202, such Notes will not be registered by the Indenture Trustee unless each
prospective initial Noteholder acquiring a Note, each prospective transferee acquiring a Note and each prospective owner (or transferee thereof) of a beneficial interest in Notes (each, a “Prospective Owner”) acquiring such beneficial interest
provides the Manager, the Issuer, the Indenture Trustee and any successor Manager with a written representation that the statement in either subsection (1) or (2) of Section 208 is an accurate representation as to all sources of funds to be used to
pay the purchase price of the Notes.
(i) No transfer of a Note shall be deemed effective unless (x) the transference of such Note is not to a Competitor and (y) the registration and
prospectus delivery requirements of Section 5 of the Securities Act and any applicable state securities laws are complied with, or such transfer is exempt from the registration and prospectus delivery requirements under said Securities Act and laws.
In the event that a transfer is to be made without registration or qualification, such Noteholder’s prospective transferee shall deliver to the Indenture Trustee an investment letter substantially in the form of Exhibit C hereto (the
“Purchaser Letter”) or such other form or document as set forth in a Supplement to this Indenture. Neither the Indenture Trustee nor the Issuer is under any obligation to register the Notes under the Securities Act or any other securities law or to
bear any expense with respect to such registration by any other Person or monitor compliance of any transfer with the securities laws of the United States regulations promulgated in connection thereto or ERISA.
Section 206. Mutilated, Destroyed, Lost and Stolen Notes.
(a) If (i) any mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee receives evidence to its satisfaction of the
destruction, loss or theft of any Note, and (ii) there is delivered to the Indenture Trustee such security or indemnity as it and the Issuer may require to hold the Issuer, the Manager and the Indenture Trustee harmless, then the Issuer shall execute
and the Indenture Trustee shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Note, a replacement Note of the same Series and maturity and of like terms as the mutilated, destroyed, lost or
stolen Note; provided, however, that if any such destroyed, lost or stolen Note, but not a mutilated Note, shall have become, or within seven days shall be due and payable, the Issuer may pay such destroyed,
lost or stolen Note when so due or payable instead of issuing a replacement Note.
(b) If, after the delivery of such replacement Note, or payment of a destroyed, lost or stolen Note pursuant to the proviso to the preceding
sentence, a bona fide purchaser of the original Note in lieu of which such replacement Note was issued presents for payment such original Note, the Issuer and the Indenture Trustee shall be entitled to recover upon the security or indemnity provided
therefor to the extent of any and all loss, damage, cost or expense incurred by the Issuer or the Indenture Trustee in connection therewith.
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(c) The Indenture Trustee and the Issuer may, for each new Note authenticated and delivered under the provisions of this Section 206, require the
advance payment by the Noteholder of the expenses, including counsel fees, service charges and any tax or governmental charge which may be incurred by the Indenture Trustee or the Issuer. Any Note issued under the provisions of this Section 206 in
lieu of any Note alleged to be destroyed, mutilated, lost or stolen, shall be equally and proportionately entitled to the benefits of this Indenture with all other Notes of the same Series. The provisions of this Section 206 are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Notes.
Section 207. Delivery, Retention and Cancellation of Notes.
Each Noteholder is required, and hereby agrees, to return to the Indenture Trustee on or prior to the Legal Final Payment Date (or, if earlier, the date on which the Unpaid Principal Balance of, and
accrued interest and other amounts related to, the applicable Series of Notes shall be paid in full (for example, pursuant to a refinancing of the Notes of the applicable Series or pursuant to the exercise of remedies under Article VIII hereof)), any
Note on which the final payment due thereon will be made for the related Series of Notes. Any such Note as to which the Indenture Trustee has made or holds the final payment thereon shall be deemed canceled and shall no longer be Outstanding for any
purpose of this Indenture, whether or not such Note is ever returned to the Indenture Trustee. Matured Notes delivered upon final payment to the Indenture Trustee and any Notes transferred or exchanged for other Notes shall be canceled and disposed
of by the Indenture Trustee in accordance with its policy of disposal and the Indenture Trustee shall promptly deliver to the Issuer such canceled Notes upon reasonable prior written request. If the Indenture Trustee shall acquire, for its own
account, any of the Notes, such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented by such Notes. If the Issuer shall acquire any of the Notes, such acquisition shall operate as a redemption or satisfaction
of the indebtedness represented by such Notes. Notes which have been canceled by the Indenture Trustee shall be deemed paid and discharged for all purposes under this Indenture.
Section 208. ERISA Deemed Representations.
Unless otherwise specified in any applicable Supplement, each prospective initial Noteholder acquiring Notes and each Prospective Owner will be deemed to have represented by such purchase to the
Issuer, the Indenture Trustee, the Manager and any successor Manager that either (1) it is not acquiring the Notes with the assets of a Plan; or (2) the acquisition and holding of the Notes will not give rise to a nonexempt prohibited transaction
under Section 406(a) of ERISA or Section 4975 of the Code.
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ARTICLE III
PAYMENT OF NOTES; STATEMENTS TO NOTEHOLDERS
Section 301. Principal and Interest.
Distributions of principal, premium, if any, and interest on any Series of Notes shall be made to Noteholders of each Series as set forth in Section 302 of this Indenture and the related Supplement.
The maximum Overdue Rate for any Note under any Series shall be equal to the sum of (i) two percent (2.00%) per annum, plus (ii) the interest rate for such Note prior to the occurrence of the relevant Event of Default for such Series. Except as set
forth in any Supplement, all interest and fees payable on, or with respect to, the Notes shall be computed on the basis of a 360-day year consisting of twelve 30-day months.
Section 302. Trust Account.
(a) On or prior to the date hereof, the Indenture Trustee shall establish and maintain the Trust Account into which all of the following amounts shall
be deposited: (i) Collections (subject to any deductions permitted pursuant to the Management Agreement), (ii) Warranty Purchase Amounts and (iii) other payments required by this Indenture and other Related Documents to be deposited therein. Such
Trust Account shall initially be established and maintained with the Corporate Trust Office in trust for the Indenture Trustee, on behalf of the Noteholders and each Interest Rate Hedge Provider, and shall be maintained until the Aggregate
Outstanding Obligations are paid in full. The Trust Account shall at all times be an Eligible Account and shall be pledged to the Indenture Trustee pursuant to the terms of this Indenture. The Issuer shall not establish any additional Trust
Accounts without prior written notice to the Indenture Trustee and without the prior written consent of the Requisite Global Majority.
(b) The Issuer shall cause the Manager to deposit funds into the Trust Account at the times and in the amounts required pursuant to the terms of the
Management Agreement. So long as no Trust Event of Default or Trust Manager Default shall have occurred and then be continuing, the Manager shall be permitted to net out, from amounts otherwise required to be deposited into the Trust Account
pursuant to Section 302(a) the amount of any Management Fees or Management Fee Arrearage that would otherwise be due and payable on the immediately succeeding Payment Date.
(c) On or prior to each Determination Date, the Issuer shall cause the Manager to prepare and deliver to the Issuer, the Indenture Trustee and each
Administrative Agent, the Manager Report. Subject to Section 302(d), on each Payment Date, the Indenture Trustee, based on the Manager Report (or in the absence of any Manager Report, in accordance with written instructions from the Requisite Global
Majority), upon which Manager Report (or written instructions from the Requisite Global Majority) the Indenture Trustee shall be entitled to conclusively rely, shall distribute from the Trust Account to the Series Account for each Series of Notes
then Outstanding (other than a Liquidation Deficiency Series), an amount equal to the product of (i) the Available Distribution Amount and (ii) the Collection Allocation Percentage for such Series on such Determination Date, for further distribution
in accordance with the priority of payments set forth in the related Supplement.
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(d) The Sales Proceeds resulting from a partial sale of Collateral made in accordance with the provisions of Section 804(b) of this Indenture shall
be deposited directly into the Series Account for each Liquidating Series and such Sales Proceeds shall not be subject to the allocation procedures set forth in Section 302(c).
(e) Once the Available Distribution Amount has been allocated to each Series, then that portion of the Available Distribution Amount allocable to
such Series shall be paid to each Noteholder of such Series in accordance with the priority of payments set forth in the related Supplement.
(f) The Issuer shall have the right, but not the obligation, at any time to make (or to direct the Indenture Trustee in writing to make) principal
payments on any Series of Notes and payments of other Outstanding Obligations from some or all of (i) amounts that are payable or have been paid to the Issuer pursuant to this Section 302, (ii) amounts that the Issuer receives from advances or draws
under any Series of Warehouse Notes, (iii) proceeds of the issuance of any Series of Notes, (iv) cash and Eligible Investments on deposit in the Excess Funding Account and (v) other funds held by the Issuer. Without limiting the foregoing, at the
written direction of the Issuer, amounts and proceeds contemplated by the preceding sentence may be included in distributions in respect of principal payments on the Notes of one or more Series and payments of other Outstanding Obligations pursuant
to Section 302(c).
Section 303. Investment of Monies Held in the Trust Account, the Excess Funding Account, each Restricted Cash Account and each Series Accounts.
(a) Subject to the provisions of Section 703 hereof, the Indenture Trustee will, at the written direction of the Issuer, invest amounts in the Trust
Account, the Excess Funding Account, each Restricted Cash Account, each Pre-Funding Account and each Series Account in such Eligible Investments as the Issuer or its designee (or its authorized agent) shall direct in writing. Each Eligible Investment
(including reinvestment of the income and proceeds of Eligible Investments) shall be held to its maturity and shall mature or shall be payable on demand not later than the Business Day immediately preceding the next succeeding Payment Date. If the
Indenture Trustee has not received written instructions from the Issuer or its designee by 2:30 p.m. (New York time) on the day such funds are received as to the investment of funds then on deposit in any of the aforementioned accounts, such funds
shall remain uninvested. Eligible Investments shall be made in the name of the Indenture Trustee for the benefit of the Noteholders and each Interest Rate Hedge Provider. Any earnings on Eligible Investments in the Trust Account, the Excess Funding
Account, each Restricted Cash Account, each Series Account and each Pre-Funding Account shall be retained in the respective account and be distributed in accordance with the terms of this Indenture or any related Supplement. The Indenture Trustee
shall not be liable or responsible for losses on any investments made by it pursuant to this Section 303 including without limitation, any loss of principal or interest or for any breakage fees or penalties in connection with the purchase of
liquidation of any investment made in accordance with the instructions of the Issuer. The Issuer acknowledges that upon its written request and at no additional cost, it has the right to receive notification after the completion of each purchase and
sale of permitted investments or the Indenture Trustee’s receipt of a broker’s confirmation. The Issuer agrees that such notifications shall not be provided by the Indenture Trustee hereunder, and the Indenture Trustee shall make available, upon
request and in lieu of notifications, periodic account statements that reflect such investment activity. No statement need be made available for any fund/account if no activity has occurred in such fund/account during such period.
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(b) On or prior to the date hereof, each of the Issuer and the Securities Intermediary shall enter into Control Agreements each in the form of Exhibit
F hereto for each of the Trust Account, the Excess Funding Account, each Restricted Cash Account, any Series Accounts and each Pre-Funding Account. At all times on and after the date hereof, each such account shall be the subject of a Control
Agreement.
(c) The Indenture Trustee, acting in accordance with the terms of this Indenture, shall be entitled to deliver an Entitlement Order to the Securities
Intermediary at which such accounts are maintained at any time; provided, however, that the Indenture Trustee agrees not to invoke its right to provide an Entitlement Order unless a Trust Event of Default has
occurred and is continuing. The Control Agreements shall provide that upon receipt of the Entitlement Order in accordance with the provisions of this Indenture, the Indenture Trustee shall comply with such Entitlement Order without further consent
by the Issuer or any other Person.
(d) Each of the Trust Account, the Excess Funding Account, each Restricted Cash Account, the Series Accounts and each Pre-Funding Account shall be
initially established with the Indenture Trustee and, so long as any Outstanding Obligations remain unpaid, shall be maintained with the Indenture Trustee so long as (A) the short-term unsecured debt obligations of the financial institution
fulfilling the role of the Indenture Trustee are rated not less than the Required Deposit Rating or (B) each of the Trust Account, the Excess Funding Account, each Restricted Cash Account, the Series Accounts and each Pre-Funding Account are
maintained at the Corporate Trust Office. If any of the Trust Account, the Excess Funding Account, each Restricted Cash Account, the Series Accounts or and each Pre-Funding Account are not maintained at the Corporate Trust Office or if the
short-term unsecured debt obligations of the Indenture Trustee fall below the Required Deposit Rating, then the Issuer shall within ten (10) days after obtaining knowledge of such condition, with the Indenture Trustee’s assistance as necessary, cause
each of the Trust Account, the Excess Funding Account, each Restricted Cash Account, the Series Accounts and each Pre-Funding Account to be transferred to either (A) an Eligible Institution which then maintains the Required Deposit Rating or (B) the
Corporate Trust Office of the successor Indenture Trustee. Prior to any of the Trust Account, the Excess Funding Account, each Restricted Cash Account, any Series Accounts or and each Pre-Funding Account being maintained with a Person other than the
Indenture Trustee, the Issuer shall obtain the prior written consent of the Requisite Global Majority and shall cause a new Control Agreement to be entered into with such Person as securities intermediary.
(e) Each of the Trust Account, the Excess Funding Account, each Restricted Cash Account, the Series Accounts and each Pre-Funding Account shall be
maintained in the State of Delaware and shall be governed by the laws of the State of New York, regardless of any provision in any other agreement. Each Control Agreement shall provide for purposes of the UCC that New York shall be deemed to be the
Securities Intermediary’s jurisdiction and each of the Trust Account, the Excess Funding Account, each Restricted Cash Account, each Series Account and each Pre-Funding Account (as well as the Securities Entitlements related thereto) shall be
governed by the laws of the State of New York.
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(f) The Indenture Trustee, in its capacity as the Securities Intermediary, has not entered into, and until the termination of this Indenture will
not enter into, any agreement with any other Person relating to any of the Trust Account, the Excess Funding Account, each Restricted Cash Account, any Series Account, and each Pre-Funding Account or any Financial Assets credited thereto pursuant to
which it has agreed to comply with Entitlement Orders of such other Person and the Securities Intermediary has not entered into, and until the termination of this Indenture will not enter into, any agreement with the Issuer, any Seller, the Manager
or the Indenture Trustee purporting to limit or condition the obligation of the Securities Intermediary to comply with Entitlement Orders as set forth in Section 303(c) hereof.
(g) Except for the claims and interest of the Indenture Trustee and of the Issuer hereunder in each of the Trust Account, the Excess Funding Account,
each Restricted Cash Account, each Series Account and each Pre-Funding Account, to the best of its knowledge without independent investigation, the Indenture Trustee, in its capacity as the initial Securities Intermediary, knows of no claim to, or
interest in, any of the Trust Account, the Excess Funding Account, each Restricted Cash Account, any Series Account, and each Pre-Funding Account or in any Financial Asset credited thereto. If any other Person asserts any Lien, encumbrance or
adverse claim (including any writ, garnishment, judgment, warrant of attachment, execution or similar process) against any of the Trust Account, the Excess Funding Account, each Restricted Cash Account, any Series Account, and each Pre-Funding
Account or in any Financial Asset credited thereto, the Securities Intermediary will promptly notify the Indenture Trustee, the Manager, each Administrative Agent, each Interest Rate Hedge Provider and the Issuer thereof.
(h) The Indenture Trustee shall possess a perfected security interest in all right, title and interest in and to all funds on deposit from time to
time in each of the Trust Account, the Excess Funding Account, each Restricted Cash Account, each Series Account, and each Pre-Funding Account and in all Proceeds thereof. Each of the Trust Account, the Excess Funding Account, each Restricted Cash
Account, each Series Account and each Pre-Funding Account shall be in the name of and under the sole dominion and control of the Indenture Trustee for the benefit of the Noteholders and each Interest Rate Hedge Provider. The Indenture Trustee shall
make withdrawals and payments from each of the Trust Account, the Excess Funding Account, each Restricted Cash Account, each Series Account and each Pre-Funding Account and apply such amounts in accordance with the provisions of this Indenture and
the related Manager Report or, in the absence of any Manager Report, in accordance with written instructions from the Requisite Global Majority.
(i) The Issuer shall not direct the Indenture Trustee to make any investment of any funds or to sell any investment held in any of the Trust Account,
the Excess Funding Account, each Restricted Cash Account, any Series Account and each Pre-Funding Account unless the security interest of the Indenture Trustee in such account and any funds or investments held therein shall continue to be perfected
without any further action by any Person.
(j) The Financial Assets and other items deposited to the accounts will not be subject to deduction, set-off, banker’s lien, or any other right in
favor of any Person except as created pursuant to this Indenture. For the avoidance of doubt, the fees and expenses of the Indenture Trustee shall be payable solely pursuant to Section 302 or Section 806 of this Indenture and in accordance with the
priority of payments set forth in any applicable Supplement and shall not be subject to deduction, set-off, banker’s lien or other right of the Indenture Trustee.
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Section 304. Copies of Reports to Noteholders and each Interest Rate Hedge Provider.
(a) Upon request, the Indenture Trustee shall promptly furnish to each Noteholder, each Administrative Agent and each Interest Rate Hedge Provider a
copy of the reports, financial statements and notices referred to in Section 304(b) received by the Indenture Trustee pursuant to the Contribution and Sale Agreement, this Indenture, the Management Agreement or any other Related Document.
(b) The Indenture Trustee will make available promptly upon receipt thereof to the Noteholders via the Indenture Trustee’s password-protected internet
website at (www.wilmingtontrustconnect.com) or at such other address as shall be specified by the Indenture Trustee from time to time in writing to each Noteholder) the Manager Report, the Asset Base Report, the other reports specified in Section 8.3
of the Management Agreement and the annual insurance confirmation; provided, that, as a condition to access to the Indenture Trustee’s website, the Indenture Trustee shall require each such Noteholder to
execute the Indenture Trustee’s standard form documentation, and upon such execution, each such Noteholder shall be deemed to have certified to the Indenture Trustee it (i) is a Noteholder, (ii) understands that such items contain material nonpublic
information (within the meaning of U.S. Federal Securities laws), (iii) is requesting the information solely for use in evaluating such party’s investment in the Notes and will keep such information strictly confidential (with such exceptions and
restrictions to distribution of the information as are more fully set forth in the information request certification) and (iv) is not a Competitor. Each time a Noteholder accesses the internet website, it will be deemed to have confirmed the
representations and warranties made pursuant to the certification as of the date of such access. The Indenture Trustee will provide the Issuer with copies of such information request certification. Assistance in using the Indenture Trustee’s
website can be obtained by calling the Indenture Trustee’s customer service desk at (866) 829-1928. The Indenture Trustee will make no representation or warranties as to the accuracy or completeness of such documents and will assume no responsibility
therefor.
Section 305. Records.
The Indenture Trustee shall cause to be kept and maintained adequate records pertaining to the Trust Account, the Excess Funding Account, each Restricted Cash Account, each Series Account, and each
Pre-Funding Account and all receipts and disbursements therefrom. The Indenture Trustee shall deliver or make available at least monthly an accounting thereof in the form of a trust statement to the Issuer, each member of the Issuer, the Manager,
each Administrative Agent and each Interest Rate Hedge Provider.
Section 306. Excess Funding Account.
(a) The Issuer shall establish on or prior to the date hereof, and shall thereafter maintain so long as any Outstanding Obligations remain unpaid, an Eligible Account in the name of the
Issuer with the Indenture Trustee which shall be designated as the Excess Funding Account, which account shall be held by the Indenture Trustee for the benefit of the Noteholders of all Series of Notes pursuant to the terms of this Indenture and the
related Supplements. Any and all monies on deposit in the Excess Funding Account shall be invested in Eligible Investments in accordance with this Indenture and shall be distributed in accordance with this Section 306.
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(b) On each Payment Date, the Indenture Trustee shall, in accordance with the Manager Report (or, subject to Section 306(d), in the absence of any
Manager Report, in accordance with written instructions from the Requisite Global Majority), deposit into the Excess Funding Account, all amounts designated for deposit therein in accordance with the terms of the Supplement for any Series of Notes
then Outstanding. In addition, the Indenture Trustee shall, in accordance with the Manager Report (or, in the absence of any Manager Report, in accordance with written instructions from the Requisite Global Majority), deposit into the Excess Funding
Account additional funds received from the Issuer from time to time.
(c) On each Payment Date on which no Trust Event of Default or Asset Base Deficiency is existing, the Indenture Trustee shall, in accordance with
the Manager Report (or, subject to Section 306(d), in the absence of any Manager Report, in accordance with written instructions from the Requisite Global Majority), withdraw funds from the Excess Funding Account and deposit such funds into the Trust
Account, which funds will be included in the calculation of the Available Distribution Amount for such Payment Date.
(d) While no Trust Event of Default or Asset Base Deficiency is continuing or would result therefrom, the Issuer may direct disposition of funds in
the Excess Funding Account without consent of the Indenture Trustee, any Noteholder or any other Person.
Section 307. CUSIP Numbers.
The Issuer in issuing the Notes may use “CUSIP” numbers (if then generally in use), and, if so, the Indenture Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Notes or as contained in any notice of a redemption and that reliance may be
placed only on the other identification numbers printed on the Notes, and any such redemption shall not be affected by any defect in or omission of such numbers. The Issuer will promptly notify the Indenture Trustee of any change in the “CUSIP”
numbers.
Section 308. No Claim.
The Indenture Trustee hereby agrees, and by accepting the benefits of this Indenture, each of the Sellers and the Manager shall be deemed to have agreed, that amounts payable to it pursuant to the
terms of the Related Documents shall be non-recourse to the Issuer in the event such amounts are not paid in accordance with this Indenture and the Supplement for each Series of Notes then Outstanding.
Section 309. Compliance with Withholding Requirements; Noteholder Information.
(a) Notwithstanding any other provision of this Indenture, the Indenture Trustee shall comply with all United States federal income tax withholding
requirements with respect to payments to Noteholders of interest, original issue discount, or other amounts that the Indenture Trustee reasonably believes are applicable under the Code. The consent of Noteholders shall not be required for any such
withholding.
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(b) Each holder of a Note or an interest therein, by acceptance of such Note or such interest in such Note, will be deemed to have agreed to provide
the Issuer and the Indenture Trustee with such Noteholder Tax Identification Information as requested from time to time by the Issuer or the Indenture Trustee. Each Noteholder or holder of an interest in a Note will be deemed to understand that each
of the Issuer and the Indenture Trustee has the right to (i) withhold tax (including, without limitation, FATCA Withholding Tax) on interest and other applicable amounts under the Code (without any corresponding gross-up) payable with respect to each
holder of a Note, or to any beneficial owner of an interest in a Note, that fails to comply with the foregoing requirements, fails to establish an exemption of such withholding or as otherwise required under the Code or other Applicable Law
(including, for the avoidance of doubt, FATCA) and (ii) provide such information and documentation and any other information concerning its interest in the applicable Note to the IRS and any other relevant U.S. or foreign tax authority. Upon request
from the Indenture Trustee, the Issuer will provide such additional information that it may have to assist the Indenture Trustee in making any withholdings or informational reports.
Section 310. Tax Treatment of Notes.
The Issuer has entered into this Indenture, and the Notes will be issued, with the intention that, for United States federal, state and local income, single business and franchise tax purposes, the
Notes will qualify as indebtedness. The Issuer and the Indenture Trustee, by entering into this Indenture, and each Noteholder and beneficial owner of a Note, by its acceptance of its Note or of a beneficial interest therein, will be deemed to,
agree to treat the Notes as indebtedness for United States federal, state and local income, single business and franchise tax purposes.
Section 311. Subordination.
Wilmington Trust, National Association, in its capacity as the Securities Intermediary hereby irrevocably subordinates to the security interest of the Indenture Trustee under this Indenture any and
all security interest in, liens on and rights of setoff against any and all of the Collateral that the Securities Intermediary may have or acquire on the date hereof or at any time hereafter until all Outstanding Obligations, and all amounts payable
by the Issuer under this Indenture and all other Related Documents have been paid in full and all covenants and agreements of the Issuer in this Indenture and all other Related Documents have been fully performed.
ARTICLE IV
COLLATERAL
Section 401. Collateral.
(a) The Notes and the obligations of the Issuer hereunder shall be obligations of the Issuer as provided in Section 203 hereof. The Noteholders and
each Interest Rate Hedge Provider shall also have the benefit of, and the Notes shall be secured by and be payable from, the Issuer’s right, title and interest in the Collateral. The income, payments and Proceeds of such Collateral shall be
allocated to each such Series of Notes strictly in accordance with the applicable payment priorities set forth in Section 302 and Section 806 hereof.
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(b) Notwithstanding anything contained in this Indenture to the contrary, the Issuer expressly agrees that it shall remain liable under each of its
Contracts and Leases to observe and perform all the conditions and obligations to be observed and performed by it thereunder and that it shall perform all of its duties and obligations thereunder, all in accordance with and pursuant to the terms and
provisions of each such Contract or Lease, as the case may be.
(c) The Indenture Trustee hereby acknowledges the appointment by the Issuer of the Manager to service and administer the Collateral in accordance
with the provisions of the Management Agreement and, so long as such Management Agreement shall not have been terminated in accordance with its terms, the Indenture Trustee hereby agrees to provide the Manager with such documentation and to take all
such actions with respect to the Collateral as the Manager may reasonably request in writing in accordance with the express provisions of the Management Agreement; provided, however, that the Indenture
Trustee shall be entitled to receive from the Issuer reasonable compensation and cost reimbursement for any such action. Until such time as the Management Agreement has been terminated in accordance with its terms, the Manager, on behalf of the
Issuer, shall continue to collect all Accounts and payments on the Leases in accordance with the provisions of the Management Agreement and make such deposits into the Trust Account as are required pursuant to the terms of the Management Agreement.
Any Proceeds received directly by the Issuer in payment of any Account or Leases or in payment for, or in respect of, any of the Managed Containers or on account of any of the Contracts to which the Issuer is a party shall be promptly deposited by
the Issuer in precisely the form received (with all necessary endorsements) in the Trust Account, and until so deposited shall be deemed to be held in trust by the Issuer as the Indenture Trustee’s property and shall continue to be collateral
security for all of the obligations secured by this Indenture and shall not constitute payment thereof until applied as hereinafter provided. If (i) an Event of Default has occurred, (ii) any Sale of the Collateral pursuant to Section 816 hereof
shall have occurred or (iii) a Manager Default has occurred, the Issuer shall at the request of the Indenture Trustee, acting with the consent of or at the direction of the Requisite Global Majority, to the extent practicable and to the extent the
Issuer possesses such documents, deliver to the Indenture Trustee (or such other Person as the Indenture Trustee may direct) originals (or, to the extent originals cannot be delivered, copies) of all other documents evidencing, and relating to, the
sale and delivery of the Managed Containers and the Issuer shall, to the extent practicable and to the extent the Issuer possesses such documents, deliver originals (or, to the extent originals cannot be delivered, copies) of all other documents
evidencing and relating to, the performance of any labor, maintenance, remarketing or other service which created such Accounts, including, without limitation, all original orders, invoices and shipping receipts. The Issuer shall be required to
deliver or disclose any information, data, document or agreement which is proprietary to the Issuer, only to the extent required by the terms of the Management Agreement.
(d) The Issuer hereby represents and warrants that this Indenture creates a valid and continuing security interest (as defined in the UCC) in the
Collateral in favor of the Indenture Trustee, for the benefit of the Noteholders, which security interest is prior to all other Liens (other than Permitted Encumbrances), and is enforceable as such as against creditors of and purchasers from the
Issuer. Any breaches of the representation and warranty set forth in this Section 401(d) may be waived by the Indenture Trustee, only with the prior written consent of the Requisite Global Majority and with
the prior satisfaction of the Rating Agency Condition.
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(e) Notwithstanding anything contained in this Indenture to the contrary, the Indenture Trustee may reject or refuse to accept any Collateral for
credit toward payment of the Notes that is an account, instrument, chattel paper, lease, or other obligation or property of any kind due from, owed by, or belonging to, a Sanctioned Person.
Section 402. Pro Rata Interest.
(a) Except as expressly provided for herein and in any Supplement, the Notes of all Outstanding Series shall be equally and ratably entitled to the
benefits of this Indenture without preference, priority or distinction, all in accordance with the terms and provisions of this Indenture and the related Supplement. All Notes issued hereunder are and are to be, to the extent (including any
exceptions) provided in this Indenture and the related Supplement, equally and ratably secured by this Indenture without preference, priority or distinction on account of the actual time or times of the authentication or delivery of the Notes so that
all Notes of a particular Series at any time Outstanding (including Notes owned by any Seller and its Affiliates, other than the Issuer) shall have the same right, Lien and preference under this Indenture and shall all be equally and ratably secured
hereby with like effect as if they had all been executed, authenticated and delivered simultaneously on the date hereof.
(b) With respect to each Series of Notes, the execution and delivery of the related Supplement shall be upon the express condition that if the
conditions specified in Section 701 of this Indenture are met with respect to such Series of Notes, the security interest and all other estate and rights granted by this Indenture with respect to such Series of Notes shall cease and become null and
void and all of the property, rights, and interest granted as security for the Notes of such Series shall revert to and revest in the Issuer without any other act or formality whatsoever.
Section 403. Indenture Trustee’s Appointment as Attorney-in-Fact.
(a) The Issuer hereby irrevocably constitutes and appoints Indenture Trustee, and any officer or agent thereof, with full power of substitution, as
its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of the Issuer and in the name of the Issuer or in its own name, from time to time, for the purpose of carrying out the terms of this Indenture, to
take any and all action and to execute and deliver any and all documents and instruments which may be necessary or desirable to accomplish the purposes of this Indenture; provided, however, that the Indenture
Trustee has no obligation or duty to take such action nor to determine whether to perfect, file, record or maintain any perfected, filed or recorded document or instrument (all of which the Issuer shall prepare, deliver and instruct the Indenture
Trustee to execute) in connection with the grant of a security interest in the Collateral hereunder.
(b) The Indenture Trustee shall not exercise the power of attorney or any rights granted to the Indenture Trustee pursuant to this Section 403 unless
a Trust Event of Default shall have occurred and then be continuing. The Issuer hereby ratifies, to the extent permitted by law, all actions that said attorney shall lawfully do or cause to be done by virtue hereof. The power of attorney granted
pursuant to this Section 403 is a power coupled with an interest and shall be irrevocable until all Series of Notes are paid and performed in full.
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(c) The powers conferred on the Indenture Trustee hereunder are solely to protect Indenture Trustee’s interests in the Collateral and shall not
impose any duty upon it to exercise any such powers except as set forth herein. The Indenture Trustee shall be accountable only for amounts that it actually receives as a result of the exercise of such powers and neither it nor any of its officers,
directors, employees, agents or representatives shall be responsible to the Issuer for any act or failure to act, except for its own gross negligence or willful misconduct, and solely with respect to the handling of funds actually received by the
Indenture Trustee or the giving of notices in accordance with the terms hereof, negligence.
(d) The Issuer also authorizes (but does not obligate) the Indenture Trustee to (i) so long as a Trust Manager Default is continuing, communicate
with any party to any Contract or Lease relating to a Managed Container with regard to the assignment of the right, title and interest of the Issuer in and under the Contracts or Leases relating to a Managed Container hereunder and other matters
relating thereto and (ii) so long as a Trust Event of Default is continuing, execute, in connection with the sale of Collateral provided for in Article VIII hereof, any endorsements, assignments or other instruments of conveyance or transfer with
respect to the Collateral.
(e) If the Issuer fails to perform or comply with any of its agreements contained herein and a Responsible Officer of the Indenture Trustee shall
receive notice of such failure, the Indenture Trustee, with the consent of and at the direction of the Requisite Global Majority, shall perform or comply, or otherwise cause performance or compliance, with such agreement, the reasonable expenses,
including attorneys’ fees and expenses, of Indenture Trustee incurred in connection with such performance or compliance together with interest thereon at the rate specified in the related Supplement, shall be payable by the Issuer to the Indenture
Trustee on demand and shall constitute additional Outstanding Obligations secured hereby.
Section 404. Release of Security Interest.
The Indenture Trustee, at the written direction of the Manager, shall release from the Lien of this Indenture, any Managed Container and the Related Assets sold or transferred or paid-in-kind
pursuant to, and in accordance with the terms of, Section 606(a) hereof. In effectuating such release, the Indenture Trustee shall be provided with and shall be entitled to conclusively and exclusively rely on: (A) so long as no Trust Early
Amortization Event is then continuing, a written direction of the Manager (with a copy to each Administrative Agent) identifying each Managed Container or other items to be released from the Lien of this Indenture in accordance with the provisions of
this Section 404 accompanied by an Asset Base Report, or (B) (x) if a Trust Early Amortization Event is then continuing, all of the following: (i) the items set forth in clause (A) above, and (ii) a certificate from the Manager (with a copy to each
Administrative Agent) stating that such release is in compliance with Sections 404 and 606(a) hereof and (y) if a Trust Manager Default is then continuing, the prior consent of the Requisite Global Majority shall also be required with respect to each
such release. The Issuer is authorized to file any UCC partial releases in the appropriate jurisdictions with respect to such released Containers.
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The Indenture Trustee will, promptly upon receipt of such certificate from the Manager and at the Issuer’s expense, execute and deliver to the Issuer, the Sellers or, the Manager, as appropriate, any
Administrative Agent and each Interest Rate Hedge Provider, a non-recourse certificate of release substantially in the form of Exhibit D hereto and such additional documents and instruments as that Person may reasonably request to evidence
the termination and release from the Lien of this Indenture of such Container and the other related items of Collateral.
Section 405. Administration of Collateral.
(a) The Indenture Trustee, on behalf of the Noteholders and each Interest Rate Hedge Provider, has, pursuant to the Manager Transfer Facilitator
Agreement, appointed the Manager Transfer Facilitator to perform all of the activities set forth therein. The Indenture Trustee shall promptly as practicable notify the Noteholders, each Interest Rate Hedge Provider and the Manager Transfer
Facilitator of a Trust Manager Default of which a Responsible Officer has actual knowledge. If a Trust Manager Default shall have occurred and then be continuing, the Indenture Trustee, in accordance with the written direction of the Requisite
Global Majority, shall deliver to the Manager (with a copy to each Administrative Agent, each Interest Rate Hedge Provider and the Manager Transfer Facilitator) a Manager Termination Notice terminating the Manager of its responsibilities in
accordance with the terms of the Management Agreement. If the Manager Transfer Facilitator is unable to locate and qualify a Replacement Manager acceptable to the Requisite Global Majority within sixty (60) days after the date of delivery of the
Manager Termination Notice, then the Manager Transfer Facilitator may and shall, at the direction of the Requisite Global Majority, appoint, or petition a court of competent jurisdiction to appoint as a successor Manager, a Person acceptable to the
Requisite Global Majority, having a net worth of not less than $15,000,000 and whose regular business includes marine cargo container leasing and/or container chassis leasing. In connection with the appointment of a Replacement Manager, the
Indenture Trustee may, with the written consent of the Requisite Global Majority, make such arrangements for the compensation of such Replacement Manager out of Collections as the Indenture Trustee (acting in accordance with the Requisite Global
Majority) and such Replacement Manager shall agree. The terminated Manager shall not be entitled to receive any Management Fee or other amounts owing to it pursuant to the Management Agreement for any period after the effective date of such
replacement, but shall be entitled to receive any such amounts earned or accrued through the effective date of such replacement which amounts shall be payable in accordance with Section 302 of this Indenture. The Indenture Trustee shall take such
action, consistent with the Management Agreement and the other Related Documents, as shall be reasonably necessary to effectuate any such succession including exercising the power of attorney granted by the Manager pursuant to the Management
Agreement. In no event shall the Indenture Trustee and the Manager Transfer Facilitator be required to act as the Replacement Manager.
(b) Upon a Responsible Officer of the Indenture Trustee obtaining actual knowledge or the receipt of written notice that any repurchase obligations
of the Seller under the Contribution and Sale Agreement has arisen, the Indenture Trustee shall notify each Interest Rate Hedge Provider and each Noteholder of such event and shall enforce such repurchase obligations at the written direction of the
Requisite Global Majority.
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Section 406. Quiet Enjoyment.
The security interest hereby granted to the Indenture Trustee by the Issuer is subject to the right of any lessee to the quiet enjoyment of any Managed Container under lease to such lessee for so
long as such lessee is not in default under the Lease therefor and the Manager under the Management Agreement (including any Replacement Manager) or the Indenture Trustee (as provided in Section 405 hereof) continues to receive all amounts payable
under such Lease.
Section 407. Intercreditor Collateral Agreement and Manager Transfer Facilitator Agreement.
The Indenture Trustee is hereby authorized and instructed to become a party to the Intercreditor Collateral Agreement and to enter into the Manager Transfer Facilitator Agreement, and to abide by the
respective terms thereof.
ARTICLE V
RIGHTS OF NOTEHOLDERS; ALLOCATION
AND APPLICATION OF NET ISSUER PROCEEDS;
REQUISITE GLOBAL MAJORITY
Section 501. Rights of Noteholders.
The Noteholders of each Series shall have the right to receive, to the extent necessary to make the required payments with respect to the Notes of such Series at the times and in the amounts
specified in the related Supplement, (i) the portion of Collections allocable to Noteholders of such Series pursuant to this Indenture and the related Supplement, (ii) funds on deposit in the Trust Account (subject to the priorities set forth in
Section 302 hereof) and the Excess Funding Account, and (iii) funds on deposit in any Series Account and each Restricted Cash Account(s) for such Series. Each Noteholder, by acceptance of its Notes, (a) acknowledges and agrees that (except as
expressly provided herein and in a Supplement entered into in accordance with Section 1006(b) hereof) the Noteholders of a Series shall not have any interest in any Series Account or any Restricted Cash Account(s) for the benefit of any other Series
and (b) ratifies and confirms the terms of this Indenture and the Related Documents executed in connection with such Series.
Section 502. Allocations Among Series.
With respect to each Collection Period, Collections on deposit in the Trust Account will be allocated to each Series then Outstanding in accordance with Article III of this Indenture and the
Supplements.
Section 503. Determination of Requisite Global Majority.
Certain actions to be taken, or consents or waivers to be given, require the direction or consent of the Requisite Global Majority. A Requisite Global Majority shall exist with respect to any action
proposed to be taken pursuant to the terms of the Indenture or other Related Documents if the Control Party or Control Parties representing more than fifty percent (50%) of the sum of the Existing Commitments of all Series of Outstanding Notes (but
excluding any Liquidation Deficiency Series) shall approve or direct such proposed action (in making such a determination, each Control Party shall be deemed to have voted the entire Existing Commitment of the related Series in favor of, or in
opposition to, such proposed action, as the case may be). The Indenture Trustee shall be responsible for identifying the Requisite Global Majority in accordance with the terms of this Section 503.
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ARTICLE VI
COVENANTS
For so long as any Aggregate Outstanding Obligation of the Issuer remains outstanding the Issuer shall observe each of the following covenants:
Section 601. Payment of Principal and Interest, Payment of Taxes.
(a) The Issuer will duly and punctually pay the principal of and interest on the Notes in accordance with the terms of the Notes, this Indenture and
the related Supplement.
(b) The Issuer will take all actions as are necessary to insure that all taxes and governmental claims, if any, in respect of the Issuer’s
activities and assets are promptly paid.
Section 602. Maintenance of Office.
(a) The only “place of business” (within the meaning of Section 9-307 of the UCC) of the Issuer is located at
Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda.
(b) The Issuer shall not establish a new place of business or location for a chief executive office or registered office outside of Bermuda or change
the jurisdiction of its incorporation unless (i) it shall have given to the Indenture Trustee, each Rating Agency, each Administrative Agent and each Interest Rate Hedge Provider not less than sixty (60) days’ prior written notice of its intention so
to do, clearly describing such new location and providing such other information in connection therewith as the Indenture Trustee, each Administrative Agent or any Interest Rate Hedge Provider may reasonably request, (ii) not less than fifteen (15)
days’ prior to the effective date of such relocation, the Issuer shall have taken, at its own cost, all action necessary so that such change of location does not impair the security interest of the Indenture Trustee in the Collateral, or the
perfection of the sale or contribution of the containers to the Issuer, and shall have delivered to the Indenture Trustee, each Administrative Agent and each Interest Rate Hedge Provider copies of all filings required in connection therewith and
(iii) the Issuer has delivered to the Indenture Trustee, each Administrative Agent, each Interest Rate Hedge Provider and each Rating Agency, one or more Opinions of Counsel satisfactory to the Requisite Global Majority, stating that, after giving
effect to such change of location: (A) the Seller and the Issuer will not, pursuant to applicable Insolvency Law, be substantively consolidated in the event of any Insolvency Proceeding by, or against, the Seller, (B) under applicable Insolvency Law,
the transfers of Transferred Assets made in accordance with the terms of the Related Documents will be treated as a “true sale” in the event of any Insolvency Proceeding by, or against, either Seller, and (C) either (1) in the opinion of such
counsel, all registration of charges, financing statements, or other documents of similar import, and amendments thereto have been executed and filed that are necessary to fully preserve and protect the interest of the Issuer and the Indenture
Trustee in the Transferred Assets, or (2) stating that, in the opinion of such counsel, no such action shall be necessary to preserve and protect such interest.
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Section 603. Corporate Existence.
The Issuer will keep in full effect its existence, rights and franchises as an exempted company with limited liability incorporated under the laws of Bermuda, and will obtain and preserve its
qualification in each jurisdiction in which such qualification is necessary to protect the validity and enforceability of this Indenture, any Supplements issued hereunder and the Notes.
Section 604. Protection of Collateral.
The Issuer, at its expense, will cause this Indenture and any Control Agreement to be registered under Section 55 of the Companies Act 1981 of Bermuda in the Register of Charges kept at the Office of
the Registrar of Companies of Bermuda (or under any statute enacted in lieu thereof and for the time being in force, or under any law of general application relating to the registration of mortgages of or charges upon personal property for the time
being in force in the Islands of Bermuda). In addition, the Issuer will from time to time execute and deliver all amendments thereto and all such financing statements, continuation statements, instruments of further assurance and other instruments,
and will, upon the reasonable request of the Manager, the Indenture Trustee, each Administrative Agent or any Interest Rate Hedge Provider, take such other action necessary or advisable to:
(a) grant more effectively the security interest in all or any portion of the Collateral;
(b) maintain or preserve the Lien of this Indenture (and the priority thereof) or carry out more effectively the purposes hereof including executing
and filing such documents, as may be required under any international convention for the perfection of interests in containers that may be adopted subsequent to the date of this Indenture;
(c) perfect, publish notice of, or protect the validity of the security interest in the Collateral created pursuant to this Indenture;
(d) enforce any of the items of the Collateral;
(e) preserve and defend its right, title and interest to the Collateral and the rights of the Indenture Trustee in such Collateral against the
claims of all Persons (other than the Noteholders or any Person claiming through the Noteholders);
(f) pay any and all taxes levied or assessed upon all or any part of the Collateral;
(g) pay any and all fees, taxes and other charges payable in connection with the registration of this Indenture and any Supplement with the Office
of the Registrar of Companies of Bermuda or any other Governmental Authority; or
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(h) notify such parties of any Commercial Tort Claims in which the Issuer has rights that arise after the Closing Date and exceed $250,000 and take
such actions necessary to create and perfect the Indenture Trustee’s Lien therein.
In furtherance of clauses (b) and (c) above, the Issuer hereby agrees that if at any time subsequent to a Closing Date there is a change in Applicable Law (or a change in the interpretation of
Applicable Law as in effect on such Closing Date) which, in the reasonable judgment of the Requisite Global Majority, may affect the perfection of the Indenture Trustee’s security interest in the Collateral, then the Issuer shall, within thirty (30)
days after written request from the Requisite Global Majority, furnish to the Indenture Trustee, each Administrative Agent and each Rating Agency, an Opinion of Counsel either (i) stating that, in the opinion of such counsel, such action has been
taken with respect to the recording, filing, re-recording and refiling of this Indenture, any Supplements hereto and any other requisite documents, and with respect to the execution and filing of any financing statements and continuation statements,
as are necessary to maintain the Lien created by this Indenture and reciting the details of such action, or (ii) stating that, in the opinion of such counsel, no such action is necessary to maintain such Lien. Such Opinion of Counsel shall also
describe the recording, filing, re-recording and refiling of this Indenture, any Supplements hereto and any other requisite documents and the execution and filing of any financing statements and continuation statements that, in the opinion of such
counsel, are required to maintain the Lien and security interest of this Indenture. In furtherance of clause (h) above, the Issuer hereby confirms that it does not currently have any rights with respect to Commercial Tort Claims as of the Closing
Date.
Section 605. Performance of Obligations.
Except as otherwise permitted by this Indenture, the Management Agreement or the Contribution and Sale Agreement, the Issuer will not take, or fail to take, any action, and will use its best efforts
not to permit any action to be taken by others, which would release any Person from any of such Person’s covenants or obligations under any agreement or instrument included in the Collateral (excluding any Interest Rate Hedge Agreement), or which
would result in the amendment, hypothecation, subordination, termination or discharge of, or impair the validity or effectiveness of, any such agreement or instrument (excluding any Interest Rate Hedge Agreement).
Section 606. Negative Covenants. The Issuer will not, without (i) the prior written consent of the Requisite Global Majority and (ii)
satisfaction of the Rating Agency Condition:
(a) at any time sell, transfer, exchange or otherwise dispose (collectively, “Dispositions”) of any of the Collateral, except as follows:
(i) in connection with a sale to Persons that are not Sanctioned Persons following the occurrence of an Event of Default pursuant
to Section 816 hereof;
(ii) Dispositions of one or more Managed Containers or Finance Leases to Persons that are not Sanctioned Persons so long as (x)
after giving effect to each such Disposition, no Early Amortization Event nor an Event of Default is then continuing or would result from the Disposition of such Managed Containers, and (y) the net cash sales proceeds realized by the Issuer from such
Disposition of Managed Containers or Finances Leases shall equal or exceed an amount equal to the greater of (A) the sum of the then Net Book Values of all such Managed Containers and the Finance Lease Balance of such Finance Leases (as the case may
be) and (B) the sum of the then Fair Market Values of all such sold Managed Containers or Finance Leases;
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(iii) if an Early Amortization Event but no Event of Default is then continuing or would result from such sale of Managed
Containers, sales of one or more Managed Containers to Persons that are not Sanctioned Persons in the normal course of business (including any such Dispositions resulting from the sell/repair decision of the Manager) so long as the sum of the Net
Book Values of all Managed Containers that were subject to Dispositions for less than Net Book Value during the four (4) immediately preceding Collection Periods shall not exceed an amount equal to the product of (x) ten percent (10%) and (y) an
amount equal to the quotient of (i) the sum of the aggregate Net Book Value as of the last day of each of the four (4) immediately preceding Collection Periods, divided by (ii) four (4); provided that the
sale price of each such Managed Container (including payments for damage) shall not be subject to Disposition for less than an amount equal to the Fair Market Value for such Managed Container;
(iv) in connection with a repurchase or substitution by the Seller to remedy a breach of a Container Representations and
Warranties;
(v) in connection with the sale of a Managed Container to the related Lessee pursuant to the terms of a Finance Lease; or
(vi) any other Dispositions of Managed Containers to Persons that are not Sanctioned Persons not covered by clauses (i) through (v)
inclusive, provided that each such sale must be specifically approved in writing by the Requisite Global Majority;
(b) claim any credit on, make any deduction from the principal, premium, if any, or interest payable in respect of the Notes (other than amounts
properly withheld from such payments under any Applicable Law) or assert any claim against any present or former Noteholder by reason of the payment of any taxes levied or assessed upon any of the Collateral;
(c) (i) permit the validity or effectiveness of this Indenture to be impaired, or (ii) permit the Lien of this Indenture with respect to the
Collateral (excluding any Interest Rate Hedge Agreement) to be subordinated, terminated or discharged, except as permitted with respect to a sale of such Collateral made in accordance with Section 404, this Section 606 or Article VII hereof or upon
payment in full of all Aggregate Outstanding Obligations, or (iii) permit any Person to be released from any covenants or obligations with respect to such Collateral (excluding any Interest Rate Hedge Agreement), except as may be expressly permitted
by the Management Agreement or the Contribution and Sale Agreement;
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(d) permit any Lien (except any Permitted Encumbrance) to be created on or extend to or otherwise arise upon or burden the Collateral or any part
thereof or any interest therein or the Proceeds thereof other than the Lien created pursuant to this Indenture;
(e) permit the Lien of this Indenture not to constitute a valid first priority perfected security interest in the Collateral;
(f) fail to maintain the registration of this Indenture with the Office of the Registrar of Companies of
Bermuda or fail to maintain the effectiveness of any required UCC financing statements filed in the applicable jurisdictions; or
(g) for purposes of the Asset Base for any Series or the Aggregate Asset Base calculation only (and not with respect to GAAP accounting matters),
revise the Depreciation Policy with respect to the Managed Containers in such a way as to shorten the period of depreciable life or reduce the amount of depreciation expense that would be recorded in any year from that which would have been recorded
pursuant to the Depreciation Policy then in effect without obtaining in each such instance (i) the prior written consent of the Requisite Global Majority and (ii) evidence that the Rating Agency Condition shall have been satisfied.
Section 607. Non-Consolidation of Issuer.
(a) The Issuer shall be operated in such a manner that it shall not be substantively consolidated with the estate of any other Person in the event of
the bankruptcy or insolvency of the Issuer or such other Person. Without limiting the foregoing, the Issuer shall (1) conduct its business in its own name, (2) except as required for reporting with the Securities and Exchange Commission or for GAAP
accounting with respect to Manager's and CAI's publicly-disclosed financial results, maintain its books, records and bank accounts separate from those of any other Person, (3) not commingle its funds with those of any other Person (except as
contemplated by the Intercreditor Collateral Agreement and for any commingling of monies attributable to the Managed Containers that are on deposit in the Manager Collection Account until such time as such monies are transferred to the Trust Account
in accordance with the terms of the Management Agreement), (4) maintain separate financial statements, showing its assets and liabilities separate and apart from those of any other Person and, to the extent that the Issuer’s assets, liabilities,
expenses, revenues, and other financial information are required to be included in any consolidated financial statement, a note will be included in such financial statements that indicates that the Issuer is a separate legal entity from the other
members of the consolidated group, its assets are not assets of any other member of the consolidated group, and its assets are not available to the creditors of any other member of the consolidated group, (5) other than with respect to Manager
Advances, pay its own liabilities and expenses out of its own funds, (6) enter into a transaction with an Affiliate only if such transaction is intrinsically fair, commercially reasonable and on the same terms as would be available in an arm’s length
transaction with a Person or entity that is not an Affiliate (provided, any transaction between the Issuer and an Affiliate pursuant to the Management Agreement, the Contribution and Sale Agreement shall be deemed to have satisfied this clause (6)),
(7) allocate fairly and reasonably any overhead expenses that are shared with an Affiliate, (8) hold itself out as a separate entity and maintain adequate capital in light of its contemplated business operations and (9) observe all other
organizational formalities.
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(b) Notwithstanding any provision of law which otherwise empowers the Issuer, the Issuer shall not (1) hold itself out as being liable for the debts
of any other Person, (2) act other than in its corporate name and through its duly authorized officers or agents, (3) engage in any joint activity or transaction of any kind with or for the benefit of any Affiliate including any of the transactions
described in Section 611 hereof, except (i) payment of lawful distributions to its members and (ii) the execution, delivery and performance of the Management Agreement, (4) enter into any transaction that is prohibited pursuant to the provisions of
Section 610 herein or (5) take any other action that would be inconsistent with maintaining the separate legal identity of the Issuer or engage in any other activity not contemplated by this Indenture and the Related Documents.
Section 608. No Bankruptcy Petition; Independent Director.
(a) The Issuer shall not (i) commence any Insolvency Proceeding seeking to have an order for relief entered with respect to it, or seeking
reorganization, arrangement, adjustment, wind-up, liquidation, dissolution, composition or other relief with respect to it or its debts, (ii) seek appointment of a receiver, trustee, custodian or other similar official for it or any part of its
assets, (iii) make a general assignment for the benefit of creditors, or (iv) take any action in furtherance of, or consenting or acquiescing in, any of the foregoing.
(b) The Issuer will at all times have at least one Independent Director.
Section 609. Liens.
The Issuer shall not (i) permit any Lien (except any Permitted Encumbrance) to be created on or extend to or otherwise arise upon or burden the Collateral or any part thereof or any interest therein
or the Proceeds thereof; or (ii) permit the Lien of this Indenture not to constitute a valid first priority security interest in the Collateral.
Section 610. Other Indebtedness.
The Issuer shall not contract for, create, incur, assume or suffer to exist any Indebtedness except (i) any Notes issued pursuant to this Indenture or any Supplement issued hereunder, (ii)
obligations incurred in accordance with the terms of the Related Documents including, without limitation, Manager Advances and Management Fees incurred in accordance with the terms of the Management Agreement, (iii) trade payables and expense
accruals incurred in the ordinary course and which are incidental to the purposes permitted pursuant to the Issuer’s charter documents and (iv) Interest Rate Hedge Agreements required or permitted pursuant to the terms of the related Supplement. For
the avoidance of doubt, the Issuer shall not incur any Indebtedness for borrowed money other than pursuant to clauses (i) and (iv) of this Section 610.
Section 611. Guarantees, Loans, Advances and Other Liabilities.
The Issuer will not make any loan, advance or credit to, or guarantee (directly or indirectly or by an instrument having the effect of assuring another’s payment or performance on any obligation or
capability of so doing, or otherwise), endorse (except for the endorsement of checks for collection or deposit) or otherwise become contingently liable, directly or indirectly, in connection with the obligations, shares, stock or dividends of, or
own, purchase, repurchase or acquire (or agree contingently to do so) any share, stock, obligations or securities of, or any other interest in, or make any capital contribution to, any other Person.
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Section 612. Consolidation, Amalgamation, Merger and Sale of Assets; Ownership of the Issuer.
(a) The Issuer shall not consolidate with, amalgamate or merge with or into any other Person or sell, convey, transfer or lease all or substantially
all of its assets, whether in a single transaction or a series of transactions, to any Person, except for (i) any such sale, conveyance or transfer contemplated in this Indenture or any Supplement issued hereunder and (ii) any Lease of a Managed
Container in accordance with the terms of the Management Agreement.
(b) The obligations of the Issuer hereunder shall not be assignable nor shall any Person succeed to the obligations of the Issuer hereunder except
in each case in accordance with the provisions of this Indenture.
(c) The Issuer shall give prior written notice to the Rating Agencies of any action pursuant to this Section 612.
Section 613. Other Agreements.
(a) The Issuer will not after the date of the issuance of the Notes enter into or become a party to any agreements or instruments other than (i) this
Indenture, the Supplements, the Contribution and Sale Agreement, the Management Agreement, the Note Purchase Agreement, the other Related Documents for any Series of Notes and any agreements or instruments contemplated under the foregoing agreements
listed in this clause (i), (ii) any agreement pursuant to which the Issuer issues additional shares to any other Person, (iii) any indemnification agreements with officers and directors of the Issuer provided
that any payments owing by the Issuer thereunder shall be payable only to the extent set forth in Section 302 hereof, (iv) any agreement among the Issuer and one or more Affiliates with respect to the payment and accounting treatment of routine
administrative expenses incurred by or on behalf of the Issuer in the normal course of its business, (v) any Interest Rate Hedge Agreement required or permitted pursuant to the terms of the related Supplement, (vi) the Intercreditor Collateral
Agreement and (vii) any other agreement(s) contemplated by any Related Document, including, without limitation, any agreement(s) for disposition of the Transferred Assets permitted by Sections 404, 606(a), 804 or 816 hereof and any agreement(s) for
the sale, repurchase, lease or re-lease of a Container made in accordance with the provisions of the Contribution and Sale Agreement or the Management Agreement.
(b) In addition, the Issuer will not amend, modify or waive any provision of the Contribution and Sale Agreement, the Management Agreement or any
other Related Documents or give any approval or consent or permission provided for therein without the prior written consent of the Persons (if any) set forth in the Contribution and Sale Agreement, the Management Agreement or such other Related
Documents, respectively, except to the extent such waiver, modification or amendment is permitted pursuant to the terms of such agreement.
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Section 614. Charter Documents.
The Issuer will not amend or modify its memorandum of association or bye-laws or issue shares to any Person other than CAL, in each case, without (i) the prior written consent of the Requisite Global
Majority and (ii) the prior written notice to the Rating Agencies and satisfaction of the Rating Agency Condition.
Section 615. Capital Expenditures.
The Issuer will not make any expenditure (by long-term or operating lease or otherwise) for capital assets (both realty and personalty), except for (a) acquisition of additional containers made in
accordance with the terms of the Management Agreement or (b) capital improvements to the containers in the ordinary course of its business and in accordance with the Management Agreement.
Section 616. Permitted Activities.
The Issuer will not engage in any activity or enter into any transaction except as permitted under its memorandum of association or bye-laws as in effect on the date on
which this Indenture is executed. The Issuer will observe all organizational and managerial procedures required by its constitutional documents and Applicable Law. The Issuer shall (i) keep complete minutes of the meetings and other proceedings of
the Issuer and (ii) continuously maintain the resolutions, agreements and other instruments underlying the transaction contemplated by the Related Documents.
Section 617. Investment Company.
The Issuer will conduct its operations in a manner which will not subject it to registration as an “investment company” under the Investment Company Act of 1940, as amended.
Section 618. Payments of Collateral.
If the Issuer shall receive from any Person any payments with respect to the Collateral (to the extent such Collateral has not been released from the Lien of this Indenture in accordance with Section
404 hereof), the Issuer shall receive such payment in trust for the Indenture Trustee, as secured party hereunder, and subject to the Indenture Trustee’s security interest and shall, by not later than one Business Day after receipt thereof, deposit
such payment in the Trust Account.
Section 619. Notices.
The Issuer shall notify the Indenture Trustee, each Administrative Agent, each Rating Agency, each Interest Rate Hedge Provider and the Manager Transfer Facilitator (but in the case of the Manager
Transfer Facilitator only with respect to the occurrence of an Event of Default under the Management Agreement) in writing of any of the following immediately upon learning of the occurrence thereof, describing the same and, if applicable, the steps
being taken by the Person(s) affected with respect thereto:
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(a) Event of Default. The occurrence of an Event of Default and any acceleration of any Notes hereunder;
(b) Litigation. The institution of any litigation, arbitration proceeding or Proceeding before any Governmental Authority which might
reasonably be expected to have or result in a Material Adverse Change;
(c) Material Adverse Change. The occurrence of a Material Adverse Change;
(d) Other Events. The occurrence of an Early Amortization Event or such other events that may, with the giving of notice or the passage of
time or both, constitute an Event of Default; and
(e) Management Agreement. The occurrence of a Trust Manager Default under the Management Agreement.
Section 620. Books and Records. The Issuer shall, and shall cause the Manager to, maintain complete and accurate books and records in which
full and correct entries in conformity with GAAP shall be made of all dealings and transactions in relation to its business and activities. In connection with each transfer of Transferred Assets, the Issuer shall report, or cause to be reported, on
its financial records the transfer of the Transferred Assets as a purchase under GAAP. The Issuer will ensure that no financial statement, nor any consolidated financial statements of the Issuer, suggests that the assets of the Issuer are available
to pay the debts of the Seller, the Manager, or any of their Affiliates.
Section 621. Taxes. The Issuer shall, or shall cause the Manager to, pay when due, all of its taxes, unless and only to the extent that
Issuer is contesting such taxes in good faith and by appropriate Proceedings and Issuer has set aside on its books such reserves or other appropriate provisions therefor as may be required by GAAP.
Section 622. Subsidiaries. The Issuer shall not create any Subsidiaries.
Section 623. Investments. The Issuer shall not make or permit to exist any Investment in any Person except for Investments in Eligible
Investments made in accordance with the terms of this Indenture.
Section 624. Use of Proceeds.
(a) The Issuer shall use the proceeds of any Series of Notes for general corporate purposes including the purchase of the Managed Containers, the
distribution of dividends, paying Indebtedness and paying the costs of the issuance of the Notes, and the other purpose set forth in the related Supplement.
(b) The Issuer shall not permit any proceeds of the Notes to be used, either directly or indirectly, for the purpose, whether immediate, incidental
or ultimate, of “purchasing or carrying any margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System, as amended from time to time, and shall furnish to each Holder, upon its request, a statement in
conformity with the requirements of Regulation U.
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Section 625. Purchase of Additional Containers.
The Issuer shall not use funds classified as an Issuer Expense to purchase additional Containers.
Section 626. Financial Statements.
The Issuer shall deliver (or shall cause the Manager to deliver) to the Indenture Trustee, each Rating Agency and each Administrative Agent, (a) quarterly financial statements of each of (i) the
Issuer, and (ii) CAI and its consolidated Subsidiaries, in each case within sixty (60) days of the end of each fiscal quarter (commencing with the fiscal quarter ended December 31, 2020), and (b) annual financial statements of each of (i) the Issuer,
and (ii) CAI and its consolidated Subsidiaries, in each case audited by their regular Independent Accountants, within one hundred twenty (120) days of the end of each fiscal year ending on and after December 31, 2020. All financial statements shall
be prepared in accordance with GAAP. For so long as CAI files its financial statements with the U.S. Securities and Exchange Commission, CAI will be deemed to have delivered its financial statements upon the filing of such financial statements with
the U.S. Securities and Exchange Commission. Delivery of such reports, information and documents to the Indenture Trustee is for informational purposes only and the Indenture Trustee’s receipt of such (including monthly distribution reports) and any
publicly available information shall not constitute actual or constructive notice or knowledge of any information contained therein or determinable from information contained therein, including the Issuer’s compliance with any of its covenants
hereunder (as to which the Indenture Trustee is entitled to rely exclusively on Officer’s Certificates).
Section 627. Sanctions.
The Issuer shall not (i) in a manner which would violate any Sanction, other than pursuant to a license issued by OFAC, lease, or consent to any sublease of, any of the Managed Containers to any
Person that is a Sanctioned Person or (ii) derive any of its assets or operating income from investments in or transactions with any such Sanctioned Person. If the Issuer obtains knowledge that a Container is subleased to a Sanctioned Person or
located or used in a Sanctioned Country in a manner which would violate any Sanction (other than pursuant to a license issued by OFAC), then the Issuer shall, within one (1) Business Day after obtaining knowledge thereof, remove such Managed
Container from the Aggregate Asset Base for so long as such condition continues.
Section 628. UNIDROIT Convention.
The Issuer shall comply with the terms and provisions of the UNIDROIT Convention or any other internationally recognized system for recording interests in or liens against shipping containers at the
time that such convention is adopted by the container leasing industry.
Section 629. Other Information.
For so long as any of the Notes are “restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act and the Issuer is not subject to Section 13 or 15(d) of the Exchange Act, the
Issuer will, and shall cause Manager to, (i) provide or cause to be provided to any Noteholder and any prospective purchaser thereof designated by such a Holder, upon the request of such Holder or prospective purchaser, the information required to be
provided to such Holder or prospective purchaser by Rule 144A(d)(4) under the Securities Act; and (ii) update such information to prevent such information from becoming materially false and materially misleading in a manner adverse to any Noteholder.
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Section 630. Separate Identity.
The Issuer will be operated, or will cause itself to be operated, so that the Issuer will not be substantively consolidated with CAI, the Manager or any of their Affiliates.
Section 631. Amendment of Intercreditor Collateral Agreement; Termination of Management Agreement.
(a) The Issuer shall not, without the prior written consent of the Requisite Global Majority, consent to any amendment, modification or revision to
the Intercreditor Collateral Agreement except any amendment, modification or revision: (i) to add parties to the Intercreditor Collateral Agreement pursuant to an Investor Supplemental Agreement, Non-Revolving Lender Supplemental Agreement or a CAI
Subsidiary Supplemental Agreement; and (ii) that do not adversely affect any Noteholder’s priority of payments shall not be deemed such an amendment, modification or revision, so long as an Opinion of Counsel has been delivered to the Requisite
Global Majority, stating that such amendment of the Intercreditor Collateral Agreement not requiring consent of the Requisite Global Majority, does not adversely affect any Noteholder’s priority of payments, together with an Officer’s Certificate of
the Issuer as to the facts surrounding such amendment on which such Opinion of Counsel is based.
(b) The Issuer shall not amend, modify or terminate the Management Agreement or the Contribution and Sale Agreement except in accordance with the
terms of such agreement.
Section 632. Tax Election of the Issuer.
The Issuer will not elect or agree to elect to be treated as an association taxable as a corporation for United States federal income tax or any State income or franchise tax purposes.
Section 633. Rating Agency Notices.
Subject to the application of applicable law, the Issuer shall promptly deliver a copy of any written notice concerning the Issuer’s credit rating received by it from any Rating Agency to the
Indenture Trustee, each Administrative Agent and each Interest Rate Hedge Provider.
Section 634. Compliance with Law.
The Issuer shall comply with any applicable statute, license, rule or regulation by which it or any of its properties may be bound if the failure to comply would reasonably be expected to result in a
Material Adverse Change.
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Section 635. FATCA.
The Issuer hereby covenants with the Indenture Trustee that the Issuer will provide the Indenture Trustee with sufficient information so as to enable the Indenture Trustee to determine whether or not
the Indenture Trustee is obliged to make any withholding, including FATCA Withholding Tax, in respect of any payments with respect to a Note (and if applicable, to provide the necessary detailed information to effectuate any withholding, including
FATCA Withholding Tax, such as setting forth applicable amounts to be withheld). The Issuer agrees that, as between Issuer and the Indenture Trustee shall be released of any liability relating to its actions that are in compliance with this Section
635 and FATCA. Notwithstanding any other provisions herein, the term ‘applicable law’ for purposes of this Section 635 includes U.S. federal tax law and FATCA. Upon request from the Indenture Trustee, the Issuer will provide such additional
information that it may have to assist the Indenture Trustee in making any withholdings or informational reports.
Section 636. Inspections.
(a) Upon reasonable request, the Issuer agrees that it shall make available to any representative of the Indenture Trustee, each Administrative
Agent, any Interest Rate Hedge Provider and any Holder of a Warehouse Note and their duly authorized representatives, attorneys or accountants, for inspection and copying its books of account, records and reports relating to the Managed Containers
and copies of all Leases or other documents relating thereto, all in the format which the Manager uses for its own operations. Such inspections shall be conducted during normal business hours and shall not unreasonably disrupt the business of the
Manager. The Indenture Trustee, each Interest Rate Hedge Provider and each Noteholder shall, and shall cause their respective representatives to, hold in confidence all such information except to the extent disclosure may be required by law (and all
reasonable applications for confidential treatment are unavailing); provided that, if no Trust Event of Default shall have occurred and then be continuing, the Issuer shall not be required to provide such
access to any such Person more than once per calendar year. Each Noteholder, each Interest Rate Hedge Provider, each Holder of a Note and the Indenture Trustee agrees that it and its Affiliates and their respective shareholders, directors, agents,
representatives, accountants and attorneys shall keep confidential any matter of which any of them becomes aware through such inspections or discussions (unless readily available from public sources), except as may be otherwise required by
regulation, law or court order or required by appropriate Governmental Authorities (and all reasonable applications for confidential treatment are unavailing) or as necessary to preserve their rights or security under or to enforce the Related
Documents, provided that the foregoing shall not limit the right of any Interest Rate Hedge Provider to make such information available to its regulators, securities rating agencies, reinsurers and credit and
liquidity providers whom such Interest Rate Hedge Provider, as the case may be, reasonably believes will respect the confidential nature of such information. Any expense incident to the reasonable exercise by the Indenture Trustee, any Interest Rate
Hedge Provider or any Noteholder of any right under this Section shall be borne by the Person exercising such right unless an Event of Default shall have occurred and then be continuing in which case such expenses shall be borne by the Issuer.
(b) The Issuer also agrees (i) to make available a Managing Officer on a reasonable basis to the Indenture Trustee, each Administrative Agent, each
Interest Rate Hedge Provider, any Noteholder or any Prospective Owner of a Note for the purpose of answering reasonable questions respecting recent developments affecting the Issuer and (ii) to allow the Indenture Trustee, each Administrative Agent,
Interest Rate Hedge Provider or any Prospective Owner of a Note to inspect the Manager’s facilities during normal business hours.
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ARTICLE VII
DISCHARGE OF INDENTURE; PREPAYMENTS
Section 701. Full Discharge.
Upon payment in full of the Aggregate Outstanding Obligations, the Indenture Trustee shall, at the request and at the expense of the Issuer, execute and deliver to the Issuer such deeds or other
instruments as shall be requisite to evidence the satisfaction and discharge of this Indenture and the security hereby created with respect to the applicable Series, and to release the Issuer from its covenants contained in this Indenture and the
related Supplement with respect to such Series. In connection with the satisfaction and discharge of this Indenture the Indenture Trustee shall be provided with and shall be entitled to conclusively rely upon an Opinion of Counsel stating that such
satisfaction and discharge is authorized or permitted.
Section 702. Optional Prepayment of Notes.
The Issuer may, from time to time, make an optional Prepayment of principal of the Notes of a Series at the times, in the amounts and subject to the conditions and limitations set forth in the
Supplement for the Series of Notes to be prepaid, and all amounts due under the Interest Rate Hedge Agreements (including any termination payments) required solely pursuant to the related Supplement.
Section 703. Unclaimed Funds.
In the event that any amount due to any Noteholder remains unclaimed, the Issuer shall, at its expense, cause to be published once, in the eastern edition of The Wall Street Journal notice
that such money remains unclaimed. Any such unclaimed amounts shall not be invested by the Indenture Trustee (notwithstanding the provisions of Section 303 hereof) and no additional interest shall accrue on the related Note subsequent to the date on
which such funds were available for distribution to such Noteholder. Any such unclaimed amounts shall be held by the Indenture Trustee in accordance with the applicable laws with respect to the escheat of funds.
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ARTICLE VIII
DEFAULT PROVISIONS AND REMEDIES
Section 801. Trust Events of Default.
“Trust Event of Default”, wherever used herein with respect to any Series of Notes, means any one of the following events (whatever the reason for such Trust Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any Governmental Authority):
(i) The entry of a decree or order for relief by a court having jurisdiction in respect of the Issuer in any involuntary case
under any applicable Insolvency Law, or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, or sequestrator (or other similar official) for the Issuer or for any substantial part of its
properties, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of sixty (60) consecutive days;
(ii) The commencement by the Issuer of a voluntary case under any applicable Insolvency Law, or other similar law now or hereafter
in effect, or the consent by the Issuer to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee or sequestrator (or other similar official) of the Issuer or any substantial part of its properties, or the
making by the Issuer of any general assignment for the benefit of creditors, or the failure by the Issuer generally to pay its debts as they become due, or the taking of any action by the Issuer in furtherance of any such action;
(iii) All of the following conditions shall have occurred: (A) a Trust Manager Default shall have occurred and shall not have been
remedied, waived or cured, for a period of sixty (60) days after the earliest of (i) any authorized officer of the Issuer, Manager or the Seller, as the case may be, first acquiring knowledge thereof; (ii) the Indenture Trustee's (to the extent a
responsible officer of the Indenture Trustee has received written notice or has actual knowledge) giving writing notice to the Issuer, Manager or Seller, as the case may be, or (iii) any Noteholder giving written notice thereof to the Issuer, the
Manager or the Seller, as the case may be, and to the Indenture Trustee, (B) the Indenture Trustee (acting at the direction of the Requisite Global Majority) shall have directed the Issuer in writing, with a copy of such written direction delivered
to the Manager, to appoint a Replacement Manager for the Terminated Containers in accordance with the terms of the Management Agreement, and (C) a Replacement Manager shall not have been appointed and assumed the management of all Terminated
Containers pursuant to a management agreement reasonably acceptable to the Requisite Global Majority by the date which is ninety (90) days after the date on which such Trust Manager Default initially occurred.
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(iv) An Asset Base Deficiency has occurred and is continuing on any Payment Date, such condition continues unremedied for a period
of ninety (90) consecutive days and the Requisite Global Majority has declared a Trust Event of Default;
(v) The Issuer is required to register as an Investment Company under the Investment Company Act of 1940, as amended;
(vi) The occurrence of a reportable event (within the meaning of Section 4043 of ERISA) with respect to any Plan maintained by the
Issuer as to which the Pension Benefit Guaranty Corporation has not by regulation waived the requirement that it be notified thereof, or the occurrence of any event or condition with respect to a Plan which reasonably could be expected to result in
any liability in excess of $250,000 or which actually results in the imposition of a Lien on the assets of the Issuer;
(vii) The Indenture Trustee shall fail to have a first priority perfected security interest in the Collateral under applicable law
of the United States of America and Bermuda;
(viii) CAI or any of its Subsidiaries shall fail to own all of the issued and outstanding Capital Stock in the Issuer; or
(ix) CAI or any of its Subsidiaries shall own less than a majority of the issued and outstanding Capital Stock in CAL.
Each Trust Event of Default shall apply with respect to each Series of Notes then Outstanding unless the related Supplement shall specifically provide to the contrary. A Series-Specific Event of
Default (as defined in the related Supplement) for any Series shall apply solely with respect to such Series of Notes, unless the related Supplement for any other Series of Notes shall specifically provide to the contrary.
Section 802. Acceleration of Stated Maturity; Rescission and Annulment.
(a) Upon the occurrence of a Trust Event of Default of the type described in Section 801(i) or (ii) hereof, the Unpaid Principal Balance of, and
accrued interest on, all Series of Notes, together with all other amounts then due and owing to the Noteholders and each Interest Rate Hedge Provider, shall become immediately due and payable without further action by any Person.
(b) If (x) any other Trust Event of Default occurs and is continuing, or (y) a Series Specific Event of Default is continuing for all Series of Notes
then Outstanding then and in every such case the Indenture Trustee shall, at the direction of the Requisite Global Majority, declare the principal of and accrued interest on all Notes of all Series then Outstanding, to be due and payable immediately,
by written notice to the Issuer, and upon any such declaration such principal and accrued interest shall become immediately due and payable.
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(c) At any time after such a declaration of acceleration has been made and before a judgment or decree for payment of the money due has been obtained
by the Indenture Trustee as hereinafter provided in this Article, the Requisite Global Majority, in its sole discretion, by written notice to the Issuer and the Indenture Trustee, may rescind and annul such declaration and its consequences if:
(i) the Issuer has paid or deposited with the Indenture Trustee a sum sufficient to pay:
(A) all of the installments of interest and, if the Legal Final Payment Date has occurred with respect to any Series, principal
of all Notes of such Series, in each case to the extent such amounts were overdue prior to the date of such acceleration;
(B) to the extent that payment of such interest is lawful, a Default Fee on the amounts set forth in clause (A) above;
(C) all unpaid Indenture Trustee Fees, Manager Transfer Facilitator Fees, indemnified amounts and sums paid or advanced by the
Indenture Trustee or the Manager Transfer Facilitator hereunder or by the Manager and the reasonable and documented compensation, out-of-pocket expenses, indemnities, disbursements and advances of the Indenture Trustee or the Manager Transfer
Facilitator and their respective agents and counsel incurred in connection with the enforcement of this Indenture and the other Related Documents; and
(D) all payments due and payable under any Interest Rate Hedge Agreement, together with interest thereon in accordance with the
terms thereof; and
(ii) all Events of Default, other than the nonpayment of the principal of or interest on Notes which have become due solely by
such declaration of acceleration, have been cured or waived as provided in Section 813 hereof.
No such rescission with respect to any Trust Event of Default shall affect any subsequent Trust Event of Default or impair any right consequent thereon, nor shall any such rescission affect any
Interest Rate Hedge Agreement which has been terminated in accordance with its terms.
(d) For purposes of clarification only, the Noteholders of each Series shall have the right to accelerate the maturity of such Series of Notes during
the continuance of Series Specific Event of Default for such Series, on the terms and conditions set forth in the related Supplement.
Section 803. Collection of Indebtedness.
The Issuer covenants that, if a Trust Event of Default occurs and is continuing and a declaration of acceleration has been made under Section 802 and not rescinded, the Issuer will, upon demand of
the Indenture Trustee (acting at the written direction of a Noteholder), pay to the Indenture Trustee, for the benefit of the Noteholders of all Series then Outstanding and each Interest Rate Hedge Provider, an amount equal to the sum of (i) the sum
of (A) the whole amount then due and payable for all Series of Notes then Outstanding, (B) all amounts owing by the Issuer under any Interest Rate Hedge Agreement, and (C) such further amounts as shall be required to pay in full all of the
Outstanding Obligations, including in each case, the costs and out-of-pocket expenses of collection, including the reasonable compensation, expenses, indemnities, disbursements and advances of the Indenture Trustee, the Requisite Global Majority,
their agents and counsel incurred in connection with the enforcement of this Indenture, and (ii) to the extent that the payment of such interest is lawful, interest on the amount set forth in clause (i) at the applicable Overdue Rate with respect to
the Notes and any applicable Default Fee as set forth in the related Interest Rate Hedge Agreements or other Related Documents.
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Section 804. Remedies.
(a) If a Trust Event of Default shall occur and be continuing, or a Series Specific Event of Default shall occur and be continuing for all Series of
Notes then Outstanding, the Indenture Trustee by such officer or agent as it may appoint, shall notify each Noteholder, each Administrative Agent and the applicable Rating Agencies of such Trust Event of Default or the existence of a Series Specific
Event of Default for all Series of Notes then Outstanding, as the case may be, and shall, if instructed by the Requisite Global Majority, do any of the following:
(i) Institute any Proceedings, in its own name and as trustee of an express trust, for the collection of all amounts then due and
payable on the Notes of all Series or under the Indenture or the related Supplement with respect thereto, whether by declaration or otherwise, enforce any judgment obtained, and collect from the Collateral and any other assets of the Issuer any
monies adjudged due;
(ii) Subject to the quiet enjoyment rights of any Lessee of a Managed Container, sell (including any sale made in accordance with
Section 816 hereof), hold or lease the Terminated Containers or any portion thereof or rights or interest therein, at one or more public or private transactions conducted in any manner permitted by law;
(iii) Institute any Proceedings from time to time for the complete or partial foreclosure of the Lien created by this Indenture with
respect to the Managed Containers and Leases; provided that any Managed Containers and Leases sold in any such foreclosure sale shall be subject to the rights of (i) any Lessee under any Lease of such Managed Containers and (ii) the rights of the
Manager under the Management Agreement with respect to any Managed Container that is not a Terminated Container. It shall be a condition to any such sale that the purchaser of such sold Managed Containers and Lease shall enter into a management
agreement with CAL with respect to any sold Managed Container that is not a Terminated Container, which management agreement shall be in form and substance reasonably satisfactory to CAL (provided that if such purchaser is already party to a
management agreement with CAL, such management agreement shall be deemed to be satisfactory to CAL for purposes of this sentence);
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(iv) Institute such other appropriate Proceedings to protect and enforce any other rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any power granted therein, or to enforce any other proper remedy;
(v) Exercise any remedies of a secured party under the UCC or any applicable law and take any other appropriate action to protect
and enforce the rights and remedies of the Indenture Trustee or the Noteholders hereunder;
(vi) Appoint a receiver or a manager over the Issuer or its assets; and
(vii) If a Trust Manager Default is then continuing, terminate the Management Agreement in accordance with its provisions.
(b) Subject to the Intercreditor Collateral Agreement, in the event that Control Parties for one or more Series of Notes consent to or direct a sale
of Collateral in accordance with the terms of its Supplement (each such Series, a “Liquidating Series”) but, if applicable, the Requisite Global Majority does not consent to such sale of Collateral, a portion of the Managed Containers and related
Leases pledged as Collateral pursuant to the Indenture (selected as set forth in Section 804(c) below) may be sold (i) at the direction of the Control Party for such Liquidating Series, if the amount of net proceeds realized from such sale will be
sufficient to repay all principal, interest and other amounts owed to each Class of Notes that is the Control Party for each such Liquidating Series or (ii) at all times not covered by clause (i), at the direction of the Noteholders of such
Liquidating Series representing in aggregate more than 66 2/3% of the then Unpaid Principal Balance of the Notes of such Liquidating Series. The net proceeds of such sale of Managed Containers and Leases shall be applied to the payment of the Notes
of each Liquidating Series in accordance with the terms of the Supplement for such Liquidating Series. The value of the Managed Containers and Leases to be sold in respect of the Liquidating Series will be equal to the sum, for each Liquidating
Series, of the product of (i) the Asset Allocation Percentage of such Liquidating Series and (ii) the then Aggregate Net Book Value. If the proceeds of any partial sale of Collateral is not sufficient to repay in full the Unpaid Principal Balance
of, and accrued interest on, the Notes of such Liquidating Series, the Notes of such Liquidating Series shall remain Outstanding and shall be entitled, after payments are made to all non-Liquidating Series, to receive Shared Available Funds allocable
to such Series in accordance with the terms of the Supplements of other Series of Notes then Outstanding. Any Managed Containers and Leases sold pursuant to this provision shall be subject to the rights of (i) any Lessee under any Lease of such
Managed Containers and (ii) the rights of the Manager under the Management Agreement with respect to any Managed Container that is not a Terminated Container. It shall be a condition to any such sale that the purchaser of such sold Managed
Containers and Lease shall enter into a management agreement with CAL with respect to any sold Managed Container that is not a Terminated Container, which management agreement shall be in form and substance reasonably satisfactory to CAL (provided
that if such purchaser is already party to a management agreement with CAL, such management agreement shall be deemed to be satisfactory to CAL for purposes of this sentence).
(c) The specific Managed Containers and Leases to be included in any partial sale of Collateral pursuant to Section 804(b) above will be selected (i)
by the Manager if no Trust Manager Default is then outstanding, or (ii) in all other instances, as set forth in the immediately succeeding sentence, in each case on a non-systematic basis such that Managed Containers to be sold will be representative
in term, age, type, and on-lease status as the pool of Managed Containers owned by the Issuer after giving effect to such partial sale. If a Trust Manager Default has occurred and is continuing, a third-party consultant, accounting firm or other
advisor will be hired by the Indenture Trustee (acting at the direction of the Requisite Global Majority) at the expense of the Issuer to conduct such selection process.
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(d) For purposes of clarification only, the Noteholders of each Series shall have the right to accelerate the maturity of such Series of Notes during
the continuance of Series-Specific Event of Default for such Series, on the terms and conditions set forth in the related Supplement.
(e) If the Requisite Global Majority elects to sell all, or any portion, of the Collateral following the occurrence of an Event of Default, the
Manager Transfer Facilitator shall use reasonable efforts to assist the Indenture Trustee in soliciting bids for each such sale of the Collateral.
Section 805. Indenture Trustee May Enforce Claims Without Possession of Notes.
(a) In all Proceedings brought by the Indenture Trustee (and also any Proceedings involving the interpretation of any provision of this Indenture to
which the Indenture Trustee shall be a party), the Indenture Trustee shall be held to represent all of the Noteholders, and it shall not be necessary to make any Noteholder a party to any such Proceedings.
(b) All rights of action and claims under this Indenture, the related Supplement or any of the Notes may be prosecuted and enforced by the Indenture
Trustee without the possession of such Notes or the production thereof in any Proceeding relating thereto, and any such Proceeding instituted by the Indenture Trustee shall be brought in its own name as trustee of an express trust, and any recovery
whether by judgment, settlement or otherwise shall, after provision for the payment of the compensation, expenses, and disbursements incurred and advances made, by the Indenture Trustee, its agents and counsel, be for the ratable benefit of the
Holders of the Notes.
Section 806. Allocation of Money Collected. If the Notes of all Series have been declared due and payable following a Trust Event of Default
and such declaration and its consequences have not been rescinded or annulled, any money collected by the Indenture Trustee pursuant to this Article or otherwise and any other monies that may be held or thereafter received by the Indenture Trustee as
security for such Notes shall be applied, to the extent permitted by law, in the following order, at the date or dates fixed by the Indenture Trustee:
FIRST: To the payment of all amounts due the Indenture Trustee under Section 905 hereof; and
SECOND: Any remaining amounts shall be distributed in accordance with Section 302(c) hereof.
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Section 807. Limitation on Suits.
Except to the extent permitted under Section 802(b) hereof, no Noteholder shall have the right to institute any Proceeding, with respect to this Indenture, or for the appointment of a receiver or
trustee, or for any other remedy hereunder, unless:
(i) such Holder has previously given written notice to the Indenture Trustee and the Requisite Global Majority of a continuing
Trust Event of Default;
(ii) the Requisite Global Majority shall have made written request to the Indenture Trustee to institute Proceedings in respect of
such Trust Event of Default in its own name as Indenture Trustee hereunder;
(iii) such Holder or Holders have offered to the Indenture Trustee security or indemnity satisfactory to it against the costs,
expenses and liabilities to be incurred in compliance with such request;
(iv) the Indenture Trustee has, for thirty (30) days after its receipt by a Responsible Officer of the Indenture Trustee of such
notice, request and offer of security or indemnity, failed to institute any such Proceeding; and
(v) no direction inconsistent with such written request has been given to the Indenture Trustee during such thirty (30) day period
by the Requisite Global Majority;
it being understood and intended that no one or more Noteholders shall have any right in any manner whatsoever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights
of any other Noteholder, or to obtain or to seek to obtain priority or preference over any other Noteholder (except to the extent provided in the related Supplement) or to enforce any right under this Indenture, except in the manner herein provided
and for the benefit of all Noteholders.
Section 808. Unconditional Right of Holders to Receive Principal, Interest and Commitment Fees.
Notwithstanding any other provision of this Indenture, each Noteholder shall have the right, which is absolute and unconditional, to receive payment of the principal of, and interest, commitment fees
and premiums in respect of such Note as such principal, interest and commitment fees becomes due and payable in accordance with the provisions of this Indenture and the related Supplement and to institute any Proceeding for the enforcement of such
payment, and such rights shall not be impaired without the consent of such Holder.
Section 809. Restoration of Rights and Remedies.
If the Indenture Trustee or any Holder has instituted any Proceeding to enforce any right or remedy under this Indenture or the related Supplement and such Proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Indenture Trustee or to such Holder, then and in every such case, subject to any determination in such Proceeding, the Issuer, the Indenture Trustee and the Holders shall be restored
severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Indenture Trustee and the Holders shall continue as though no such Proceeding had been instituted.
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Section 810. Rights and Remedies Cumulative.
No right or remedy conferred upon or reserved to the Indenture Trustee, any Interest Rate Hedge Provider or to the Holders pursuant to this Indenture or any Supplement is intended to be exclusive of
any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion
or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.
Section 811. Delay or Omission Not Waiver.
No delay or omission of the Indenture Trustee, any Interest Rate Hedge Provider or any Holder of any Note to exercise any right or remedy accruing upon any Trust Event of Default shall impair any
such right or remedy or constitute a waiver of any such Trust Event of Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Indenture Trustee, any Interest Rate Hedge Provider, or to the Holders may be
exercised from time to time, and as often as may be deemed expedient, by the Indenture Trustee, by any Interest Rate Hedge Provider, or by the Holders, as the case may be.
Section 812. Control by Requisite Global Majority.
(a) Upon the occurrence of a Trust Event of Default, the Requisite Global Majority shall have the right to direct in writing the time, method and
place of conducting any Proceeding for any remedy available to the Indenture Trustee or exercising any trust or power conferred on the Indenture Trustee, provided that (i) such direction shall not be in
conflict with any rule of law or with this Indenture, including, without limitation, Section 804 hereof and (ii) the Indenture Trustee may take any other action deemed proper by the Indenture Trustee which is not inconsistent with such direction.
(b) Notwithstanding the grant of a security interest to secure the Outstanding Obligations owing to the Indenture Trustee, for the benefit of the
Noteholders and each Interest Rate Hedge Provider, all rights to direct actions or to exercise rights or remedies under this Indenture or the UCC (including those set forth in Section 804 hereof) shall be vested solely in the Requisite Global
Majority and, by accepting the benefits of this Indenture each Noteholder acknowledges such statement; provided, however, that nothing contained herein shall constitute a modification of Section 808, Section 813(b) or Section 816(d) hereof.
Section 813. Waiver of Past Defaults.
(a) The Requisite Global Majority may, on behalf of all Noteholders of all Series, waive any past Trust Event of Default and its consequences, except
a Trust Event of Default in respect of a covenant or provision of this Indenture which cannot be modified or amended without the consent of all the Noteholders of all Series pursuant to Section 1002 of this Indenture.
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(b) Upon any such waiver, such Trust Event of Default shall cease to exist and shall be deemed to have been cured and not to have occurred for every
purpose of this Indenture; provided, however, that no such waiver shall extend to any subsequent or other Trust Event of Default or impair any right consequent thereon nor affect any Interest Rate Hedge
Agreement which has been terminated in accordance with its terms.
Section 814. Undertaking for Costs.
All parties to this Indenture agree, and each Holder of any Note by acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of
any right or remedy under this Indenture, or in any suit against the Indenture Trustee for any action taken, suffered or omitted by it as Indenture Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such
suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such
party litigant; provided, however, that the provisions of this Section shall not apply to any suit instituted by the Indenture Trustee or any Holder or group of Holders, holding in the aggregate more than ten
percent (10%) of the aggregate principal balance of the Notes of all Series then Outstanding, or (ii) to any suit instituted by any Holder for the enforcement of (x) the payment of interest on any Notes on any Payment Date or (y) the payment of the
principal of any Note on or after the Legal Final Payment Date of such Note.
Section 815. Waiver of Stay or Extension Laws.
The Issuer covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or
extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture; and the Issuer (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of
any such law and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Indenture Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted.
Section 816. Sale of Collateral.
(a) The power to effect any sale (a “Sale”) of any portion of the Collateral pursuant to Section 804 hereof shall not be exhausted by any one or more
Sales as to any portion of the Collateral remaining unsold, but shall continue unimpaired until the entire Collateral shall have been sold or the Aggregate Outstanding Obligations shall have been paid in full. The Indenture Trustee at the written
direction of the Requisite Global Majority may from time to time postpone any Sale by public announcement made at the time and place of such Sale.
(b) Upon any Sale, whether made under the power of sale hereby given or under judgment, order or decree in any Proceeding for the foreclosure or
involving the enforcement of this Indenture: (i) the Indenture Trustee, at the written direction of the Requisite Global Majority, may bid for and purchase the property being sold, and upon compliance with the terms of such Sale may hold, retain and
possess and dispose of such property in accordance with the terms of this Indenture; and (ii) the receipt of the Indenture Trustee or of any officer thereof making such Sale shall be a sufficient discharge to the purchaser or purchasers at such Sale
for its or their purchase money, and such purchaser or purchasers, and its or their assigns or personal representatives, shall not, after paying such purchase money and receiving such receipt of the Indenture Trustee or of such officer therefor, be
obliged to see to the application of such purchase money or be in any way answerable for any loss, misappropriation or non-application thereof.
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(c) The Indenture Trustee shall execute and deliver an appropriate instrument of conveyance provided to it transferring its interest in any portion
of the Collateral in connection with a Sale thereof. In addition, the Indenture Trustee is hereby irrevocably appointed the agent and attorney-in-fact of the Issuer to transfer and convey its interest (subject to lessee’s rights of quiet enjoyment)
in any portion of the Collateral in connection with a Sale thereof, and to take all action necessary to effect such Sale. No purchaser or transferee at such a Sale shall be bound to ascertain the Indenture Trustee’s authority, inquire into the
satisfaction of any conditions precedent or see to the application of any monies.
(d) The right of the Indenture Trustee to sell, transfer or otherwise convey any Interest Rate Hedge Agreement or any transaction outstanding
thereunder, or to exercise foreclosure rights with respect thereto shall be subject to compliance with the provisions of the applicable Interest Rate Hedge Agreement.
(e) The Indenture Trustee shall provide prior written notice to the Issuer, to each Administrative Agent and to each Interest Rate Hedge Provider of
any Sale of any portion of the Collateral under this Section 816.
Section 817. Action on Notes.
The Indenture Trustee’s right to seek and recover judgment on the Notes under this Indenture or any Supplement shall not be affected by the seeking, obtaining or application of any other relief under
or with respect to this Indenture or any Supplement. Neither the Lien of this Indenture nor any rights or remedies of the Indenture Trustee, any Interest Rate Hedge Provider or the Noteholders shall be impaired by the recovery of any judgment by the
Indenture Trustee against the Issuer or by the levy of any execution under such judgment upon any portion of the Collateral or upon any of the assets of the Issuer.
ARTICLE IX
CONCERNING THE INDENTURE TRUSTEE
Section 901. Duties of Indenture Trustee.
The Indenture Trustee, prior to the occurrence of an Event of Default or after the cure or waiver of any Event of Default which may have occurred, undertakes to perform such duties and only such
duties as are specifically set forth in this Indenture and the related Supplement and no duties shall be inferred or implied. If an Event of Default has occurred and is continuing, the Indenture Trustee, at the written direction of the Requisite
Global Majority, shall exercise such of the rights and powers vested in it by this Indenture and the related Supplement, and use the same degree of care and skill in its exercise as a prudent Person would exercise or use under the circumstances in
the conduct of such Person’s own affairs.
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The Indenture Trustee, upon receipt of all resolutions, certificates, statements, opinions, reports, documents, orders or other instruments furnished to the Indenture Trustee which are specifically
required to be furnished pursuant to any provisions of this Indenture and any applicable Supplement, shall determine whether they are substantially in the form required by this Indenture and any applicable Supplement; provided, however, that the
Indenture Trustee shall not be responsible for investigating or re-calculating, evaluating, certifying, verifying or independently determining the accuracy or content (including mathematical calculations) of any such resolution, certificate,
statement, opinion, report, document, order or other instrument furnished pursuant to this Indenture and any applicable Supplement.
No provision of this Indenture or any Supplement shall be construed to relieve the Indenture Trustee from liability for its own grossly negligent action, (or in the case of handling of funds actually
received by the Indenture Trustee or giving of notices in accordance with the terms hereof, negligent action) its own grossly negligent failure to act or its own willful misconduct; provided, however, that:
(i) Prior to the occurrence of an Event of Default and after the cure or waiver of any Event of Default which may have occurred,
the duties and obligations of the Indenture Trustee shall be determined solely by the express provisions of this Indenture and any Supplements issued pursuant to the terms hereof. The Indenture Trustee shall not be liable except for the performance
of such duties and obligations as are specifically set forth in this Indenture and any Supplements issued pursuant to the terms hereof, and no implied covenants or obligations shall be read into this Indenture against the Indenture Trustee and, in
the absence of bad faith on the part of the Indenture Trustee, the Indenture Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates, statements, reports,
documents, orders, opinions or other instruments (whether in their original or facsimile form) furnished to the Indenture Trustee and conforming to the requirements of this Indenture and any Supplements issued pursuant to the terms hereof;
(ii) The Indenture Trustee shall not be liable for actions taken, or any error of judgment made in good faith by a Responsible
Officer or Responsible Officers of the Indenture Trustee, unless it shall be proved that the Indenture Trustee was negligent in ascertaining the pertinent facts; and
(iii) The Indenture Trustee shall not be liable with respect to any action taken, suffered or omitted to be taken by it in good
faith in accordance with the direction of the Requisite Global Majority relating to the time, method and place of conducting any Proceeding for any remedy available to the Indenture Trustee, or exercising any trust or power conferred upon the
Indenture Trustee, under this Indenture.
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No provision of this Indenture shall require the Indenture Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of its duties hereunder, or in the
exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate security or indemnity against such risk or liability is not reasonably assured to it.
Whether or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Indenture Trustee shall be subject
to the provisions of this Section 901.
Section 902. Certain Matters Affecting the Indenture Trustee.
Except as otherwise provided in Section 901 hereof:
(i) The Indenture Trustee may conclusively rely and shall be fully protected in acting or refraining from acting upon any Opinion
of Counsel, certificate of an officer of the Issuer or the Manager, certificate of auditors or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, judgment, appraisal, bond or other paper or document
(whether in its original or facsimile form) believed by it to be genuine and to have been signed or presented by the proper party or parties;
(ii) The Indenture Trustee may consult with counsel of its selection and any advice or opinion of such counsel shall be full and
complete authorization and protection in respect of any action taken or suffered or omitted by it hereunder in good faith and in accordance in reliance thereof;
(iii) The Indenture Trustee shall not be liable with respect to any action it takes or omits to take in accordance with a direction
received by it from the Issuer or the Requisite Global Majority in accordance with the terms of this Indenture and the other Related Documents. The Indenture Trustee shall be under no obligation to institute, conduct or defend any litigation or
Proceeding hereunder or in relation hereto at the request, order or direction of the Requisite Global Majority, pursuant to the provisions of this Indenture, unless the Requisite Global Majority shall have offered to the Indenture Trustee security or
indemnity reasonably satisfactory to it against the costs, expenses and liabilities which may be incurred therein or thereby;
(iv) The Indenture Trustee shall not be liable for any action taken, suffered or omitted by it in good faith and believed by it to
be authorized or within the discretion or rights or powers conferred upon it by this Indenture;
(v) The Indenture Trustee shall not be bound to take any discretionary action, including any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond or other paper or document, unless requested in writing to do so by the Requisite Global Majority; provided,
however, that the Indenture Trustee may require security or indemnity reasonably satisfactory to it against any cost, expense or liability likely to be incurred in making such investigation as a condition to so proceeding. The reasonable expense of
any such examination shall be paid, on a pro rata basis, by the Noteholders of the applicable Series requesting such examination or, if paid by the Indenture Trustee, shall be reimbursed by such Noteholders upon demand;
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(vi) The Indenture Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by
or through its agents or attorneys and the Indenture Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed by it with due care hereunder;
(vii) The Indenture Trustee shall not be deemed to have knowledge of any default, Event of Default, Early Amortization Event, Manager
Default or Back-up Manager Event, or other event or information, or be required to act upon any default, Event of Default, Early Amortization Event, Manager Default or Back-up Manager Event, or other event or information (including the sending of any
notice) unless a Responsible Officer of the Indenture Trustee shall have received written notice or has actual knowledge of such event or information, and shall have no duty to take any action to determine whether any such event, default, Event of
Default, Early Amortization Event, Manager Default or Back-up Manager Event has occurred;
(viii) The knowledge of the Indenture Trustee shall not be attributed or imputed to Wilmington Trust, National Association's other
roles in the transaction and knowledge of the Securities Intermediary, Paying Agent and Note Registrar shall not be attributed or imputed to each other or to the Indenture Trustee (other than those where the roles are performed by the same group or
division within Wilmington Trust, National Association or otherwise share the same Responsible Officers), or any affiliate, line of business, or other division of Wilmington Trust, National Association (and vice versa);
(ix) Notwithstanding anything to the contrary herein or otherwise, under no circumstance will the Indenture Trustee be liable for
special, punitive, indirect, or consequential loss or damage of any kind whatsoever (including lost profits), whether or not foreseeable, even if the Indenture Trustee is actually aware of or has been advised of the likelihood of such loss or damage;
(x) Before the Indenture Trustee acts or refrains from taking any action under this Indenture, it may require an officer’s
certificate and/or an opinion of counsel from the party requesting that the Indenture Trustee act or refrain from acting in form and substance acceptable to the Indenture Trustee, the costs of which (including the Indenture Trustee’s reasonable
attorney’s fees and expenses) shall be paid by the party requesting that the Indenture Trustee act or refrain from acting. The Indenture Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such officer’s
certificates and/or opinions of counsel;
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(xi) The Indenture Trustee shall incur no liability if, by reason of and shall not be responsible or liable for, any failure or
delay in the performance of its obligations under this Indenture arising out of or caused, directly or indirectly, by circumstances beyond its control, including without limitation, any act or provision of any present or future law or regulation or
governmental authority; acts of God; earthquakes; fires; floods; pandemics; epidemics; wars; terrorism; civil or military disturbances; sabotage; riots; interruptions, loss or malfunctions of utilities, computer (hardware or software) or
communications service; accidents; labor disputes; acts of civil or military authority or governmental actions; or the unavailability of the Federal Reserve Bank wire or telex or other wire or communication facility;
(xii) Notwithstanding anything to the contrary in this Indenture, the Indenture Trustee shall not be required to take any action
that is not in accordance with applicable law;
(xiii) The right of the Indenture Trustee to perform any permissive or discretionary act enumerated in this Indenture or any related
document shall not be construed as a duty;
(xiv) Neither the Indenture Trustee nor any of its officers, directors, employees, attorneys or agents will be responsible or liable
for the existence, genuineness, value or protection of any collateral securing the Notes, for the legality, enforceability, effectiveness or sufficiency of the Related Documents for the creation, perfection, continuation, priority, sufficiency or
protection of any of the liens, or for any defect or deficiency as to any such matters, or for monitoring the status of any lien or performance of the collateral;
(xv) The Indenture Trustee shall not be liable for any action or inaction of the Issuer, the Manager, or any other party (or agent
thereof) to this Indenture or any related document and may assume compliance by such parties with their obligations under this Indenture or any related agreements, unless a Responsible Officer of the Indenture Trustee shall have received written
notice to the contrary at the Corporate Trust Office of the Indenture Trustee;
(xvi) The rights, privileges, protections, immunities and benefits given to the Indenture Trustee, including, without limitation, its
right to be indemnified, are extended to, and shall be enforceable by, the Indenture Trustee in each of its capacities hereunder and under the other Related Documents, including without limitation, the Paying Agent, Note Registrar, Securities
Intermediary and Manager Transfer Facilitator, and to each agent, custodian and other Person employed to act hereunder;
(xvii) The Indenture Trustee shall have no duty to see to, or be responsible for the correctness or accuracy of, any recording, filing
or depositing of this Indenture or any agreement referred to herein, or any financing statement or continuation statement evidencing a security interest, or to see to the maintenance of any such recording or filing or depositing or to any
rerecording, refilling or re-depositing of any thereof; and
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(xviii) Notwithstanding anything to the contrary herein, the Indenture Trustee shall have no duty to prepare or file any Federal or
state tax report or return with respect to any funds held pursuant to this Indenture or any income earned thereon, except for the delivery and filing of tax information reporting forms required to be delivered and filed with the Internal Revenue
Service..
The provisions of this Section 902 shall be applicable to the Indenture Trustee in its capacity as Indenture Trustee under this Indenture and the other Related Documents.
Section 903. Indenture Trustee Not Liable.
(a) The recitals contained herein (other than the representations and warranties contained in Section 911 hereof), in any Supplement and in the Notes
(other than the certificate of authentication on the Notes) shall be taken as the statements of the Issuer, and the Indenture Trustee assumes no responsibility for their correctness. The Indenture Trustee makes no representations as to, and shall
not be responsible for, the validity, legality, enforceability or adequacy or sufficiency of this Indenture, any Supplement, the Notes, the Collateral or of any Related Document, or as to the correctness of any statement contained in any thereof.
The Indenture Trustee shall not be accountable for (i) the use or application by the Issuer of the proceeds of any Series of Notes, and (ii) the use or application of any funds paid to the Issuer or the Manager in respect of the Collateral except for
any payment in accordance with the Manager Report of amounts on deposit in any of the Trust Accounts.
(b) The Indenture Trustee shall have no responsibility or liability for or with respect to the existence or validity of any Managed Container, the
perfection of any security interest (whether as of the date hereof or at any future time), the maintenance of or the taking of any action to maintain such perfection, the validity of the assignment of any portion of the Collateral to the Indenture
Trustee or of any intervening assignment, the compliance by the Sellers or the Manager with any covenant or the breach by the Sellers or the Manager of any warranty or representation made hereunder, in any Supplement or in any Related Document or the
accuracy of such warranty or representation, any investment of monies in the Trust Account, the Excess Funding Account, each Restricted Cash Account, any Pre-Funding Account or any Series Account or any loss resulting therefrom (provided that such investments are made in accordance with the provisions of Section 303 hereof), or the acts or omissions of the Sellers or the Manager or any other Person.
(c) The Indenture Trustee shall not have any obligation or liability under any Contract by reason of or arising out of this Indenture or the
granting of a security interest in such Contract hereunder or the receipt by the Indenture Trustee of any payment relating to any Contract pursuant hereto, nor shall the Indenture Trustee be required or obligated in any manner to perform or fulfill
any of the obligations of the Issuer, the Sellers or the Manager under or pursuant to any Contract, or to make any payment, or to make any inquiry as to the nature or the sufficiency of any payment received by it, or the sufficiency of any
performance by any party, under any Contract.
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Section 904. Indenture Trustee May Own Notes.
The Indenture Trustee in its individual or any other capacity may become the owner or pledgee of Notes with the same rights it would have if it were not Indenture Trustee.
Section 905. Indenture Trustee Fees, Expenses and Indemnities.
(a) The fees, expenses and indemnities (the “Indenture Trustee Fees”) of the Indenture Trustee shall be paid only by the Issuer in accordance with
Section 302 or 806 hereof and in accordance with the Supplements. The Issuer shall indemnify the Indenture Trustee (and any predecessor Indenture Trustee) and each of its officers, directors and employees for, and hold them harmless against, any and
all loss, liability, damage claim or expense (including reasonable legal fees, costs and expenses and court costs), in each case, incurred without gross negligence or willful misconduct on their part, arising out of or in connection with the
acceptance or administration of this trust and, solely with respect to the handling of funds actually received by the Indenture Trustee and the giving of notices in accordance with the terms hereof, negligence, including the costs and expenses of
defending itself both individually and in its representative capacity against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder and those incurred in connection with any action, claim or
suit brought to enforce the Indenture Trustee’s right to indemnification.
(b) The obligations of the Issuer under this Section 905 to compensate the Indenture Trustee, to pay or reimburse the Indenture Trustee for
expenses, disbursements and advances and to indemnify and hold harmless the Indenture Trustee, shall constitute Outstanding Obligations hereunder and shall survive the resignation or removal of the Indenture Trustee and the satisfaction and discharge
or assignment of this Indenture.
(c) When the Indenture Trustee incurs expenses or renders services in connection with a Trust Event of Default specified in Section 801(i) or (ii),
the expenses and the compensation for the services are intended to constitute expenses of administration under Insolvency Law.
Section 906. Eligibility Requirements for Indenture Trustee.
The Indenture Trustee hereunder shall at all times be a national banking association or a corporation, organized and doing business under the laws of the United States of America or any State, and
authorized under such laws to exercise corporate trust powers. In addition, the Indenture Trustee or its parent corporation shall at all times (i) have a combined capital and surplus of at least Two Hundred Fifty Million Dollars ($250,000,000), (ii)
be subject to supervision or examination by Federal or state authority and (iii) have a long-term unsecured senior debt rating signifying investment grade by Moody’s and by Standard & Poor’s and short-term unsecured senior debt rating signifying
investment grade by Moody’s and by Standard & Poor’s. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of such supervising or examining authority, then, for the purposes of this Section
906, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. In case at any time the Indenture Trustee shall cease to be eligible
in accordance with the provisions of this Section, the Indenture Trustee shall resign immediately in the manner and with the effect specified in Section 907 hereof.
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Section 907. Resignation and Removal of Indenture Trustee.
The Indenture Trustee may at any time resign and be discharged from the trusts hereby created by giving written notice thereof to the Issuer, the Manager, each Administrative Agent, each Interest
Rate Hedge Provider and the Noteholders. Upon receiving such notice of resignation, the Issuer at the direction and subject to the consent of the Requisite Global Majority shall promptly appoint a successor Indenture Trustee by written instrument,
in duplicate, one copy of which instrument shall be delivered to the resigning Indenture Trustee, each Administrative Agent, each Interest Rate Hedge Provider and one copy to the successor Indenture Trustee. If no successor Indenture Trustee shall
have been so appointed by the Issuer or the proposed successor Indenture Trustee has not accepted its appointment within thirty (30) days after the giving of such notice of resignation or removal, the Requisite Global Majority may appoint a successor
trustee or, if it does not do so within thirty (30) days thereafter, the resigning Indenture Trustee, may petition at the expense of the Issuer any court of competent jurisdiction for the appointment of a successor Indenture Trustee.
If at any time the Indenture Trustee shall cease to be eligible in accordance with the provisions of Section 906 hereof and shall fail to resign after written request therefor by the Issuer at the
direction of the Requisite Global Majority, or if at any time the Indenture Trustee shall become incapable of acting, or shall be adjudged bankrupt or insolvent, or a receiver of the Indenture Trustee or of its property shall be appointed, or any
public officer shall take charge or control of the Indenture Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then the Issuer at the direction of the Requisite Global Majority shall remove the
Indenture Trustee for cause and appoint a successor Indenture Trustee with prior notice by written instrument, in duplicate, one copy of which instrument shall be delivered to the Indenture Trustee so removed and one copy to the successor Indenture
Trustee. In addition, the Issuer may, with the consent of the Requisite Global Majority, upon prior written notice to the Indenture Trustee, remove the Indenture Trustee and appoint a successor Indenture Trustee by written instrument, in duplicate,
one copy of which instrument shall be delivered to the Indenture Trustee so removed and one copy to the successor Indenture Trustee. If no successor Indenture Trustee shall have been so appointed and have accepted appointment within 30 days after
such resignation or removal, the Requisite Global Majority may appoint a successor Indenture Trustee or, if it does not do so within 30 days after such resignation or removal, the departing Indenture Trustee may petition at the expense of the Issuer
any court of competent jurisdiction for the appointment of a successor Indenture Trustee.
Any resignation or removal of the Indenture Trustee and appointment of a successor Indenture Trustee pursuant to any of the provisions of this Section shall become effective upon acceptance of
appointment by the successor Indenture Trustee as provided in Section 908 hereof.
Section 908. Successor Indenture Trustee.
Any successor Indenture Trustee appointed as provided in Section 907 hereof shall execute, acknowledge and deliver to the Issuer and to its predecessor Indenture Trustee an instrument accepting such
appointment hereunder, and thereupon the resignation or removal of the predecessor Indenture Trustee shall become effective and such successor Indenture Trustee, without any further act, deed or conveyance, shall become fully vested with all the
rights, powers, duties and obligations of its predecessor hereunder, with like effect as if originally named as Indenture Trustee herein. The predecessor Indenture Trustee shall deliver to the successor Indenture Trustee all documents relating to
the Collateral, if any, delivered to it, together with any amount remaining in the Trust Account, the Excess Funding Account, each Restricted Cash Account and any other Series Accounts. In addition, the predecessor Indenture Trustee and, upon
request of the successor Indenture Trustee, the Issuer shall execute and deliver such instruments and do such other things as may reasonably be required for more fully and certainly vesting and confirming in the successor Indenture Trustee all such
rights, powers, duties and obligations.
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No successor Indenture Trustee shall accept appointment as provided in this Section unless at the time of such acceptance such successor Indenture Trustee shall be eligible under the provisions of
Section 906 hereof and shall be acceptable to the Requisite Global Majority.
Upon acceptance of appointment by a successor Indenture Trustee as provided in this Section, the Issuer shall deliver notice of the succession of such Indenture Trustee hereunder to all Noteholders
at their addresses as shown in the registration books maintained by the Indenture Trustee and to each Interest Rate Hedge Provider. If the Issuer fails to deliver such notice within ten (10) days after acceptance of appointment by the successor
Indenture Trustee, the successor Indenture Trustee shall cause such notice to be delivered at the expense of the Issuer.
Section 909. Merger or Consolidation of Indenture Trustee.
Any corporation into which the Indenture Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Indenture Trustee shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the Indenture Trustee, shall be the successor of the Indenture Trustee hereunder, provided
such corporation shall be eligible under the provisions of Section 906 hereof, without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.
Section 910. Separate Indenture Trustees, Co-Indenture Trustees and Custodians.
If the Indenture Trustee is not capable of acting for jurisdictional purposes, it shall have the power from time to time to appoint one or more Persons or corporations to act either as co-trustees
jointly with the Indenture Trustee, or as separate trustees, or as custodians, for the purpose of holding title to, foreclosing or otherwise taking action with respect to any of the Collateral, when such separate trustee or co-trustee is necessary or
advisable under any Applicable Laws or for the purpose of otherwise conforming to any legal requirement, restriction or condition in any applicable jurisdiction. The separate trustees, co-trustees, or custodians so appointed shall be trustees,
co-trustees, or custodians for the benefit of all Noteholders and shall have such powers, rights and remedies as shall be specified in the instrument of appointment; provided, however, that no such appointment shall, or shall be deemed to, constitute
the appointee an agent of the Indenture Trustee and the Indenture Trustee shall not have any liability relating to such appointment. The Issuer shall join in any such appointment, but such joining shall not be necessary for the effectiveness of such
appointment.
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Every separate trustee, co-trustee and custodian shall, to the extent permitted by law, be appointed and act subject to the following provisions and conditions:
(i) all powers, duties, obligations and rights conferred upon the Indenture Trustee in respect of the receipt, custody and
payment of moneys shall be exercised solely by the Indenture Trustee;
(ii) all other rights, powers, duties and obligations conferred or imposed upon the Indenture Trustee shall be conferred or
imposed upon and exercised or performed by the Indenture Trustee and such separate trustee, co-trustee, or custodian jointly, except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed the
Indenture Trustee shall be incompetent or unqualified to perform such act or acts, in which event such rights, powers, duties and obligations (including the holding of title to the Collateral or any portion thereof in any such jurisdiction) shall be
exercised and performed by such separate trustee, co-trustee or custodian;
(iii) no trustee, co-trustee, separate trustee or custodian hereunder shall be liable by reason of any act or omission of any other
trustee, co-trustee, separate trustee or custodian hereunder; and
(iv) the Issuer or the Indenture Trustee may at any time accept the resignation of or remove any separate trustee, co-trustee or
custodian so appointed by it or them if such resignation or removal does not violate the other terms of this Indenture.
Any notice, request or other writing given to the Indenture Trustee shall be deemed to have been given to each of the then separate trustees and co-trustees, as effectively as if given to each of
them. Every instrument appointing any separate trustee, co-trustee, or custodian shall refer to this Indenture and the conditions of this Article. Each separate trustee and co-trustee, upon its acceptance of the trusts conferred, shall be vested
with the estates or property specified in its instrument of appointment, either jointly with the Indenture Trustee or separately, as may be provided therein, subject to all the provisions of this Indenture, specifically including every provision of
this Indenture relating to the conduct of, affecting the liability of, or affording protection to, the Indenture Trustee. Every such instrument shall be furnished to the Indenture Trustee and each Interest Rate Hedge Provider.
Any separate trustee, co-trustees, or custodian may, at any time, constitute the Indenture Trustee, its agent or attorney-in-fact, with full power and authority, to the extent not prohibited by law,
to do any lawful act under or in respect of this Indenture on its behalf and in its name. If any separate trustee, co-trustee, or custodian shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies
and trusts shall vest in and be exercised by the Indenture Trustee, to the extent permitted by law, without the appointment of a new or successor trustee or custodian.
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No separate trustee, co-trustee or custodian hereunder shall be required to meet the terms of eligibility as a successor Indenture Trustee under Section 906 hereof and no notice to Noteholders of the
appointment thereof shall be required under Section 908 hereof.
The Indenture Trustee agrees to instruct the co-trustees, if any, to the extent necessary to fulfill the Indenture Trustee’s obligations hereunder.
Section 911. Representations and Warranties.
The Indenture Trustee hereby represents and warrants as of each Series Issuance Date that:
(a) Organization and Good Standing. The Indenture Trustee is a national banking association duly organized, validly existing and in good
standing under the laws of the United States, and has the power to own its assets and to transact the business in which it is presently engaged;
(b) Authorization. The Indenture Trustee has the power, authority and legal right to execute, deliver and perform this Indenture and each
Supplement and to authenticate the Notes, and the execution, delivery and performance of this Indenture and each Supplement and the authentication of the Notes has been duly authorized by the Indenture Trustee by all necessary corporate action;
(c) Binding Obligations. This Indenture and each Supplement, assuming due authorization, execution and delivery by the Issuer, constitutes
the legal, valid and binding obligations of the Indenture Trustee, enforceable against the Indenture Trustee in accordance with its terms, except that (i) such enforcement may be subject to bankruptcy, insolvency, reorganization, moratorium or other
similar laws (whether statutory, regulatory or decisional) now or hereafter in effect relating to creditors’ rights generally and the rights of trust companies in particular and (ii) the remedy of specific performance and injunctive and other forms
of equitable relief may be subject to certain equitable defenses and to the discretion of the court before which any Proceeding therefor may be brought, whether in a Proceeding at law or in equity;
(d) No Violation. The performance by the Indenture Trustee of its obligations under this Indenture and each Supplement will not conflict
with, result in any breach of any of the terms and provisions of, or constitute (with or without notice, lapse of time or both) a default under, the charter documents or bylaws of the Indenture Trustee;
(e) No Proceedings. There are no Proceedings or investigations to which the Indenture Trustee is a party pending, or, to the best of its
knowledge without independent investigation, threatened, before any court, regulatory body, administrative agency or other tribunal or Governmental Authority (A) asserting the invalidity of this Indenture or the Notes, (B) seeking to prevent the
issuance of the Notes or the consummation of any of the transactions contemplated by this Indenture or (C) seeking any determination or ruling that would materially and adversely affect the performance by the Indenture Trustee of its obligations
under, or the validity or enforceability of, this Indenture or the Notes; and
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(f) Approvals. Neither the execution or delivery by the Indenture Trustee of this Indenture nor the consummation of the transactions by the
Indenture Trustee contemplated hereby requires the consent or approval of, the giving of notice to, the registration with or the taking of any other action with respect to any Governmental Authority under any existing federal or State of Delaware or
State of New York law governing the banking or trust powers of the Indenture Trustee.
Section 912. Indenture Trustee Offices.
The Indenture Trustee shall maintain in the State of Delaware an office or offices or agency or agencies where Notes may be surrendered for registration of transfer or exchange, which office is
currently located at 1100 North Market Street, Wilmington, Delaware 19890-1605, Attention: Corporate Trust Administration/Jose Paredes, and shall promptly notify the Issuer, the Manager, each Interest Rate Hedge Provider and the Noteholders of any
change of such location.
Section 913. Notice of Trust Event of Default.
If a Responsible Officer of the Indenture Trustee shall have actual knowledge that an Event of Default, Early Amortization Event or Manager Default has occurred and be continuing, the Indenture
Trustee shall promptly (but in any event within five (5) Business Days) give written notice thereof to the Noteholders, each Administrative Agent and each Interest Rate Hedge Provider of such affected Series. For all purposes of this Indenture, in
the absence of actual knowledge by a Responsible Officer of the Indenture Trustee, the Indenture Trustee shall not be deemed to have actual knowledge of an Event of Default, Early Amortization Event or Manager Default unless notified in writing
thereof by the Issuer, any Seller, the Manager, each Administrative Agent, any Interest Rate Hedge Provider or any Noteholder, and such notice references the applicable Series of Notes generally, the Issuer, this Indenture or the applicable
Supplement.
ARTICLE X
SUPPLEMENTAL INDENTURES
Section 1001. Supplemental Indentures Not Creating a New Series Without Consent of Holders.
(a) Without the consent of any Holder and based on an Opinion of Counsel in form and substance reasonably acceptable to the Indenture Trustee to the
effect that such Supplement is for one of the purposes set forth in clauses (i) through (vii) below, the Issuer and the Indenture Trustee, at any time and from time to time, may, enter into one or more Supplements in form satisfactory to the
Indenture Trustee, for any of the following purposes:
(i) to add to the covenants of the Issuer in this Indenture for the benefit of the Holders of all Series then Outstanding, or to
surrender any right or power conferred upon the Issuer in this Indenture;
(ii) to cure any ambiguity, to correct or supplement any provision in this Indenture which may be inconsistent with any other
provision in this Indenture, or to make any other provisions with respect to matters or questions arising under this Indenture;
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(iii) to correct or amplify the description of any property at any time subject to the Lien of this Indenture, or better to assure,
convey and confirm unto the Indenture Trustee any property subject or required to be subject to the Lien of this Indenture, or to subject additional property to the Lien of this Indenture;
(iv) to add to the conditions, limitations and restrictions on the authorized amount, terms and purposes of issue, authentication
and delivery of the Notes, as herein set forth, or additional conditions, limitations and restrictions thereafter to be observed by the Issuer;
(v) to convey, transfer, assign, mortgage or pledge any additional property to or with the Indenture Trustee;
(vi) to evidence the succession of the Indenture Trustee pursuant to Article IX;
(vii) to add any additional Trust Early Amortization Events or Trust Events of Default;
(viii) to conform the terms of this Indenture to the terms set forth in the offering memorandum for any Series of Notes or to modify
the definition of Eligible Investments to conform with criteria established by the Rating Agency; or
(ix) to reflect an amendment to the Depreciation Policy adopted in accordance with Section 606(h) hereof.
(b) The Indenture Trustee shall sign such amendments or amendments and restatements upon written direction from the Issuer and shall have no
liability to any Noteholder as a result of such execution.
(c) Prior to the execution of any Supplement issued pursuant to this Section 1001, the Issuer shall provide written notice to each Rating Agency
setting forth in general terms the substance of any such Supplement or the proposed form of such Supplement.
(d) Promptly after the execution by the Issuer and the Indenture Trustee of any Supplement pursuant to this Section, the Issuer shall mail to the
Holders of all Notes then Outstanding, each Rating Agency, each Administrative Agent, a notice setting forth in general terms the substance of such Supplement, together with a copy of the text of such Supplement. Any failure of the Issuer to mail
such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such Supplement.
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Section 1002. Supplemental Indentures Not Creating a New Series with Consent of Holders.
(a) With the consent of the Requisite Global Majority, the Issuer and the Indenture Trustee may enter into a Supplement hereto for the purpose of
adding any provisions to or changing in any manner or eliminating or waiving any of the provisions of this Indenture or of modifying in any manner the rights of the Holders under this Indenture (other than any such
additions, changes, eliminations or modifications described in Section 1001); provided, however, that no such Supplement shall, without the consent of the Holder of each Outstanding Note affected
thereby:
(i) reduce the principal amount of any Note or the rate of interest thereon, change the priority of any such payments (other than
to increase the priority thereof) required pursuant to this Indenture or any Supplement in a manner adverse to any Noteholder, or the date on which, or the amount of which, or the place of payment where, or the coin or currency in which, any Note or
the interest thereon is payable, or impair the right to institute suit for the enforcement of any such payment on or after the Legal Final Payment Date thereof,
(ii) reduce the percentage of Outstanding Notes or Existing Commitments required for (a) the consent of any Supplement to this
Indenture, (b) the consent required for any waiver of compliance with certain provisions of this Indenture or certain Events of Default hereunder and their consequences as provided for in this Indenture or (c) the consent required to waive any
payment default on the Notes;
(iii) modify any provision of this Indenture or any Supplement which specifies that such provision cannot be modified or waived
without the consent of the Holder of each Outstanding Note affected thereby;
(iv) modify or alter the definition of the terms “Outstanding”, “Requisite Global Majority”, “Existing Commitment” or “Initial
Commitment”;
(v) impair or adversely affect the Collateral in any material respect as a whole except as otherwise permitted herein; or
(vi) permit the creation of any Lien ranking prior to or on a parity with the Lien of this Indenture with respect to any part of
the Collateral or terminate the Lien of this Indenture on any property at any time subject hereto or deprive the Holder of any Note of the security afforded by the Lien of this Indenture;
provided further, that, unless such Supplement has been consented to in writing by the Holder of each
Outstanding Note, the Indenture Trustee shall have received an Opinion of Counsel stating that the consent of the Holder of each Outstanding Note, is not required because such Supplement does not adversely affect the Holder of each Outstanding Note
as contemplated by the foregoing Section 1002(a)(i).
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Prior to the execution of any Supplement issued pursuant to this Section 1002, the Issuer shall provide written notice to each Rating Agency, each Interest Rate Hedge Provider and each Series Enhancer setting forth in
general terms the substance of any such Supplement.
(b) Promptly after the execution by the Issuer and the Indenture Trustee of any Supplement pursuant to this Section, the Issuer shall mail to the
Holders of the Notes, each Rating Agency, each Administrative Agent and each Interest Rate Hedge Provider, a notice setting forth in general terms the substance of such Supplement, together with a copy of the text of such Supplement. Any failure of
the Issuer to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such Supplement.
Section 1003. Execution of Supplemental Indentures.
In executing, or accepting the additional trusts created by, a Supplement permitted by this Article or the modification thereby of the trusts created by this Indenture or any Supplement, the
Indenture Trustee shall be entitled to receive, and shall be fully protected in relying upon, an Opinion of Counsel stating that all conditions precedent specified in Section 1001 or 1002, as applicable, for the execution of such Supplement have been
satisfied and that the execution thereof is authorized or permitted by this Indenture. The Indenture Trustee may, but shall not be obligated to, enter into any such Supplement which affects the Indenture Trustee’s own rights, duties or immunities
under this Indenture or otherwise.
Section 1004. Effect of Supplemental Indentures.
Upon the execution of any Supplement under this Article, this Indenture shall be modified in accordance therewith, and such Supplement shall form a part of this Indenture for all purposes, and every
Holder of Notes theretofore or thereafter authenticated and delivered hereunder shall be bound thereby.
Section 1005. Reference in Notes to Supplemental Indentures.
Notes authenticated and delivered after the execution of any Supplement pursuant to this Article may, and shall if required by the Issuer, bear a notation as to any matter provided for in such
Supplement. If the Issuer shall so determine, new Notes so modified as to conform may be prepared and executed by the Issuer and authenticated and delivered by the Indenture Trustee in exchange for Outstanding Notes.
Section 1006. Issuance of Series of Notes.
(a) The Issuer may from time to time issue one or more Series of Notes pursuant to the terms of this Indenture as long as (i) the Rating Agency
Condition shall have been satisfied with respect to the issuance of such Series, (ii) no Trust Event of Default or Trust Early Amortization Event, or event or condition which with the passage of time or giving of notice or both would become a Trust
Event of Default or Trust Early Amortization Event is then continuing (nor would occur as a result of the issuance of such additional Series) and (iii) all of the applicable conditions set forth in Section 1006(b) have been satisfied. Each
additional Series will be issued pursuant to a Supplement to this Indenture which Supplement shall specify the Principal Terms of such Series and may modify or amend the terms of this Indenture solely as applied to such Series.
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(b) The Supplement may modify or amend the terms of this Indenture solely as applied to such Series. The obligation of the Indenture Trustee to
authenticate, execute and deliver the Notes of such Series and to execute and deliver the related Supplement is subject to the satisfaction of the following conditions:
(i) on or before the second (2nd) Business Day
immediately preceding the Series Issuance Date (unless the parties to be notified agree to a shorter notice period), the Issuer shall have given each Administrative Agent and each Interest Rate Hedge Provider pursuant to the relevant Supplement
notice of the Series and the Series Issuance Date;
(ii) the Issuer shall have delivered to the Indenture Trustee the related Supplement, in form satisfactory to the Indenture
Trustee, executed by each party hereto other than the Indenture Trustee;
(iii) the Rating Agency Condition shall have been satisfied with respect to the issuance of such Series of Notes;
(iv) the Issuer shall have delivered to the Indenture Trustee and, if required, any Noteholder, any Opinions of Counsel required by
the related Supplement, including without limitation with respect to true sale, enforceability, non-consolidation and security interest perfection issues;
(v) the Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate stating that no Early Amortization Event,
Event of Default or event or condition which with the passage of time or giving of notice or both would become an Early Amortization Event or an Event of Default for any Series has occurred and is then continuing (or would result from the issuance of
such additional Series);
(vi) written confirmation from an officer of the Manager that after giving effect to such proposed issuance, no Asset Base
Deficiency will exist, as evidenced by the Asset Base Report most recently received by the Indenture Trustee (but not earlier than the preceding Payment Date);
(vii) such other conditions as shall be specified in the related Supplement; and
(viii) the Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate that all of the conditions specified in
clauses (i) through (vii) have been satisfied.
The provisions of clauses (i), (iii) and (vi) above shall not apply to the issuance of the initial Series of Notes issued pursuant to this Indenture.
Upon satisfaction of the above conditions, the Indenture Trustee shall execute the Supplement and authenticate, execute and deliver the Notes of such Series.
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Section 1007. Amendments to Intercreditor Collateral Agreement.
The Indenture Trustee is hereby authorized and directed to enter into amendments to the Intercreditor Collateral Agreement permitted pursuant to Section 631.
ARTICLE XI
HOLDERS LISTS
Section 1101. Indenture Trustee to Furnish Names and Addresses of Holders. Unless otherwise provided in the related Supplement, the Indenture
Trustee will furnish or cause to be furnished to the Manager not more than ten (10) days after receipt of a written request, a list, in such form as the Indenture Trustee generally maintains, of the names, addresses and tax identification numbers of
the Holders of Notes as of such date.
Section 1102. Preservation of Information; Communications to Holders. The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of Holders contained in the most recent list furnished to the Indenture Trustee as provided in Section 1101 and the names and addresses of Holders received by the Indenture Trustee in its capacity as
Note Registrar. The Indenture Trustee may destroy any list furnished to it as provided in Section 1101 upon receipt of a new list so furnished.
ARTICLE XII
TRUST EARLY AMORTIZATION EVENT
Section 1201. Trust Early Amortization Event.
As of any date of determination, the existence of any one of the following events or conditions:
(1) A Trust Event of Default shall have occurred and then be continuing;
(2) A Trust Manager Default shall have occurred and then be continuing;
(3) On any Payment Date an Asset Base Deficiency shall have occurred, and shall have remained unremedied for a period of thirty
(30) consecutive days without having been cured;
(4) The amount in the Excess Funding Account relied upon in order to prevent an Asset Base Deficiency exceeds fifty percent (50%)
of the Aggregate Net Book Value.
Promptly following any occurrence of a Trust Early Amortization Event, the Issuer shall notify the Indenture Trustee, each Administrative Agent and each Interest Rate Hedge Provider thereof.
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If a Trust Early Amortization Event has occurred and is continuing on any Payment Date, then such Trust Early Amortization Event shall be deemed to continue until
the Business Day on which the Requisite Global Majority waives, in writing, such Trust Early Amortization Event. The Indenture Trustee shall promptly provide notice of any such waiver to each Rating Agency (if applicable).
ARTICLE XIII
MISCELLANEOUS PROVISIONS
Section 1301. Compliance Certificates and Opinions.
(a) Upon any application or request by the Issuer to the Indenture Trustee to take any action under any provision of this Indenture or any
Supplement, the Issuer shall furnish to the Indenture Trustee a certificate stating that all conditions precedent, if any, provided for in this Indenture and any relevant Supplement relating to the proposed action have been complied with and, if
deemed reasonably necessary by the Indenture Trustee or if required pursuant to the terms of this Indenture, an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have been complied with, except that
in the case of any such application or request as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or request, no additional certificate or opinion need be
furnished.
(b) Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include:
(i) a statement that each individual signing such certificate or opinion has read such covenant or condition and the definitions
herein relating thereto;
(ii) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based;
(iii) a statement that, in the opinion of each such individual, he has made such examination or investigation as is necessary to
enable him to express an informed opinion as to whether such covenant or condition has been complied with; and
(iv) a statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with.
Section 1302. Form of Documents Delivered to Indenture Trustee.
(a) In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that
all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other
such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents.
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(b) Any certificate or opinion may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by,
counsel, unless such officer knows that the certificate or opinion or representations with respect to the matters upon which his certificate or opinion is based are erroneous.
(c) Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and form one instrument.
Section 1303. Acts of Holders.
(a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture or any Supplement to be given
or taken by Holders may be (i) embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by an agent duly appointed in writing, (ii) evidenced by the written consent or direction of
Holders of the specified percentage of the principal amount of the Notes, or (iii) evidenced by a combination of such instrument or instruments; and, except as herein otherwise expressly provided, such action shall become effective when such
instrument or instruments and record are delivered to the Indenture Trustee and, where it is hereby expressly required, to the Issuer. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any
purpose of this Indenture and conclusive in favor of the Indenture Trustee and the Issuer, if made in the manner provided in this Section.
(b) The fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of such execution
or by a certificate of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to him the execution thereof. Where such execution is by a
signer acting in a capacity other than his individual capacity, such certificate or affidavit shall also constitute sufficient proof of his authority. The fact and date of the execution of any such instrument or
writing, or the authority of the Person executing the same, may also be proved in any other manner which the Indenture Trustee deems sufficient.
(c) The ownership of Notes shall be proved by the Note Register.
(d) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the Holder of any Note shall bind every future Holder of
the same Note and the Holder of every Note issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the Indenture Trustee or the Issuer in reliance
thereon, whether or not notation of such action is made upon such Note.
Section 1304. Limitation of Rights; Third Party Beneficiary.
Except as expressly set forth in this Indenture, this Indenture shall be binding upon the Issuer, the Noteholders and their respective successors and permitted assigns and shall not inure to the
benefit of any Person other than the parties hereto, the Noteholders and the Manager as provided herein. Notwithstanding the previous sentence, the parties hereto acknowledge that each Interest Rate Hedge Provider is an express third party
beneficiary hereof entitled to enforce its rights hereunder as if actually a party hereto.
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Section 1305. Severability.
If any provision of this Indenture is held to be in conflict with any applicable statute or rule of law or is otherwise
held to be unenforceable for any reason whatsoever, such circumstances shall not have the effect of rendering the provision in question inoperative or unenforceable in any other case or circumstance, or of rendering any other provision or provisions
herein contained invalid, inoperative, or unenforceable to any extent whatsoever.
The invalidity of any one or more phrases, sentences, clauses or Sections of this Indenture, shall not affect the remaining portions of this Indenture, or any part thereof.
Section 1306. Notices.
All demands, notices and communications hereunder shall be in writing, personally delivered, or by email (with subsequent telephone confirmation of receipt thereof), or sent by internationally
recognized overnight courier service, (a) in the case of the Indenture Trustee, at the following address: 1100 North Market Street, Wilmington, Delaware 19890-1605, Attention: Corporate Trust Administration/Jose Paredes, Telephone: (302) 636-6191,
email: [email protected], (b) in the case of the Issuer, at the following address: Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda, Telephone: (441) 295-5950, email: [email protected], Attention: Secretary, with a copy to
each: (i) CAI at its address at 1 Market Plaza, Suite 2400, San Francisco, CA 94105, Telephone: (415) 788-0100, email: [email protected] with a copy to: [email protected], and (ii) Container Applications Limited at its address at Suite 102, Bush
Hill, Bay Street, St. Michael, Barbados, West Indies, Telephone: (246) 430-5310, email: [email protected], Attention: CEO and CFO, with a copy to CAI International, Inc., 1 Market Plaza, Suite 2400, San Francisco, CA 94105, Attention: CEO and
CFO, Telephone: (415) 788-0100, email [email protected], with a copy to [email protected]; (c) in the case of each Rating Agency, its address set forth in the related Supplement and (d) in the case of an Interest Rate Hedge Provider, at its address
set forth in the related Interest Rate Hedge Agreement, or at such other address as shall be designated by such party in a written notice to the other parties. Any notice required or permitted to be given to a Noteholder shall be given by certified
first class mail, postage prepaid (return receipt requested), or by courier, or by email, with subsequent telephone confirmation of receipt thereof, in each case at the address of such Holder as shown in the Note Register or to the telephone and
email address furnished by such Noteholder. Notice shall be effective and deemed received (a) two (2) days after being delivered to the courier service, if sent by courier, (b) upon receipt of confirmation of receipt, if sent by email, or (c) when
delivered, if delivered by hand. Any rights to notices conveyed to a Rating Agency pursuant to the terms of this Indenture with respect to any Series or Class shall terminate immediately if such Rating Agency no longer has a rating outstanding with
respect to such Series or Class.
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Section 1307. Consent to Jurisdiction.
ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST THE ISSUER ARISING OUT OF OR RELATING TO THIS INDENTURE, OR ANY TRANSACTION CONTEMPLATED HEREBY, MAY BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE
CITY OF NEW YORK, STATE OF NEW YORK AND THE ISSUER HEREBY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND, SOLELY FOR THE PURPOSES OF ENFORCING THIS INDENTURE, THE ISSUER
HEREBY IRREVOCABLY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF ANY SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING. THE ISSUER HEREBY IRREVOCABLY APPOINTS AND DESIGNATES CSC CORPORATION SERVICE COMPANY, HAVING AN ADDRESS AT 1180 AVENUE OF THE
AMERICAS, SUITE 210, NEW YORK, NEW YORK 10036-8401, ITS TRUE AND LAWFUL ATTORNEY-IN-FACT AND DULY AUTHORIZED AGENT FOR THE LIMITED PURPOSE OF ACCEPTING SERVICING OF LEGAL PROCESS AND THE ISSUER AGREES THAT SERVICE OF PROCESS UPON SUCH PARTY SHALL
CONSTITUTE PERSONAL SERVICE OF SUCH PROCESS ON SUCH PERSON. THE ISSUER SHALL MAINTAIN THE DESIGNATION AND APPOINTMENT OF SUCH AUTHORIZED AGENT UNTIL ALL AMOUNTS PAYABLE UNDER THIS INDENTURE SHALL HAVE BEEN PAID IN FULL. IF SUCH AGENT SHALL CEASE TO
SO ACT, THE ISSUER SHALL IMMEDIATELY DESIGNATE AND APPOINT ANOTHER SUCH AGENT SATISFACTORY TO THE INDENTURE TRUSTEE AND SHALL PROMPTLY DELIVER TO THE INDENTURE TRUSTEE EVIDENCE IN WRITING OF SUCH OTHER AGENT’S ACCEPTANCE OF SUCH APPOINTMENT.
Section 1308. Captions.
The captions or headings in this Indenture are for convenience only and in no way define, limit or describe the scope or intent of any provisions or sections of this Indenture.
Section 1309. Governing Law.
THIS INDENTURE SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF NEW YORK GENERAL OBLIGATIONS LAW, BUT WITHOUT
GIVING EFFECT TO ANY OTHER PRINCIPLES OF CONFLICTS OF LAW, AND THE RIGHTS, OBLIGATIONS AND REMEDIES OF THE PARTIES HERETO SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
Section 1310. No Petition.
The Indenture Trustee, on its own behalf, hereby covenants and agrees, and each Noteholder by its acquisition of a Note shall be deemed to covenant and agree, that it will not institute against the
Issuer any bankruptcy, reorganization, arrangement insolvency or liquidation Proceedings, or other Proceedings under any federal or state bankruptcy or similar law, at any time other than on a date which is at least one (1) year and one (1) day after
the last date on which any Note of any Series was Outstanding.
99
Section 1311. General Interpretive Principles.
For purposes of this Indenture except as otherwise expressly provided or unless the context otherwise requires:
(a) the defined terms in this Indenture shall include the plural as well as the singular, and the use of any gender herein shall be deemed to
include any other gender;
(b) accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles as
in effect on the date hereof;
(c) references herein to “Articles”, “Sections”, “Subsections”, “paragraphs”, and other subdivisions without reference to a document are to
designated Articles, Sections, Subsections, paragraphs and other subdivisions of this Indenture;
(d) a reference to a Subsection without further reference to a Section is a reference to such Subsection as contained in the same Section in which
the reference appears, and this rule shall also apply to paragraphs and other subdivisions;
(e) the words “herein”, “hereof’, “hereunder” and other words of similar import refer to this Indenture as a
whole and not to any particular provision;
(f) the term “include” or “including” shall mean without limitation by reason of enumeration; and
(g) When referring to Section 302 or Section 806 of this Indenture, the term “or” shall be additive and not exclusive.
Section 1312. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, AS AGAINST THE OTHER PARTIES HERETO, ANY RIGHTS IT
MAY HAVE TO A JURY TRIAL IN RESPECT OF ANY CIVIL ACTION OR PROCEEDING (WHETHER ARISING IN CONTRACT OR TORT OR OTHERWISE), INCLUDING ANY COUNTERCLAIM, ARISING UNDER OR RELATING TO THIS INDENTURE OR ANY OTHER OPERATIVE DOCUMENT, INCLUDING IN RESPECT OF
THE NEGOTIATION, ADMINISTRATION OR ENFORCEMENT HEREOF OR THEREOF.
Section 1313. Waiver of Immunity. To the extent that any party hereto or any of its property is or becomes entitled at any time to any immunity
on the grounds of sovereignty or otherwise from any legal actions, suits or Proceedings, from set‑off or counterclaim, from the jurisdiction or judgment of any competent court, from service of process, from execution of a judgment, from attachment
prior to judgment, from attachment in aid of execution, or from execution prior to judgment, or other legal process in any jurisdiction, such party, for itself and its successors and assigns and its property, does hereby irrevocably and
unconditionally waive, and agrees not to plead or claim, any such immunity with respect to its obligations, liabilities or any other matter under or arising out of or in connection with this Indenture, the other Related Documents or the subject
matter hereof or thereof, subject, in each case, to the provisions of the Related Documents and mandatory requirements of Applicable Law.
100
Section 1314. Judgment Currency. The parties hereto (A) acknowledge that the matters contemplated by this Indenture are part of an
international financing transaction and (B) hereby agree that (i) specification and payment of Dollars is of the essence, (ii) Dollars shall be the currency of account in the case of all obligations under the Related Documents unless otherwise
expressly provided herein or therein, (iii) the payment obligations of the parties under the Related Documents shall not be discharged by an amount paid in a currency or in a place other than that specified with respect to such obligations, whether
pursuant to a judgment or otherwise, except to the extent actually received by the Person entitled thereto and converted into Dollars by such Person (it being understood and agreed that, if any transaction party shall so receive an amount in a
currency other than Dollars, it shall (A) if it is not the Person entitled to receive payment, promptly return the same (in the currency in which received) to the Person from whom it was received or (B) if it is the Person entitled to receive
payment, either, in its sole discretion, (x) promptly return the same (in the currency in which received) to the Person from whom it was received or (y) subject to reasonable commercial practices, promptly cause the conversion of the same into
Dollars), (iv) to the extent that the amount so paid on prompt conversion to Dollars under normal commercial practices does not yield the requisite amount of Dollars, the obligee of such payment shall have a separate cause of action against the party
obligated to make the relevant payment for the additional amount necessary to yield the amount due and owing under the Related Documents, (v) if, for the purpose of obtaining a judgment in any court with respect to any obligation under any of the
Related Documents, it shall be necessary to convert to any other currency any amount in Dollars due thereunder and a change shall occur between the rate of exchange applied in making such conversion and the rate of exchange prevailing on the date of
payment of such judgment, the obligor in respect of such obligation will pay such additional amounts (if any) as may be necessary to insure that the amount paid on the date of payment is the amount in such other currency which, when converted into
Dollars and transferred to New York City, New York, in accordance with normal banking procedures, will result in realization of the amount then due in Dollars and (vi) any amount due under this paragraph shall be due as a separate debt and shall not
be affected by or merged into any judgment being obtained for any other sum due under or in respect of the Related Documents.
Section 1315. Statutory References. References in this Indenture and each other Related Document for any Series to any section of the Uniform
Commercial Code or the UCC shall mean, on or after the effective date of adoption of any revision to the Uniform Commercial Code or the UCC in the State of New York, such revised or successor section thereto.
Section 1316. Counterparts. This Indenture may be executed in counterparts (and by different parties hereto on different counterparts), each of
which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Indenture by facsimile shall be effective as delivery of a manually executed
counterpart of this Indenture.
101
Section 1317. Patriot Act. The parties hereto acknowledge that in accordance with the Customer Identification Program (CIP) requirements under
the USA PATRIOT Act and its implementing regulations, the Indenture Trustee in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or legal entity that
establishes a relationship or opens an account with the Indenture Trustee. Each party hereby agrees that it shall provide the Indenture Trustee with such information as the Indenture Trustee may request that will help Indenture Trustee to identify
and verify each party’s identity, including without limitation each party’s name, physical address, tax identification number, organizational documents, certificate of good standing, license to do business, or other pertinent identifying information.
Section 1318. Multiple Roles. The parties expressly acknowledge and consent to Wilmington Trust, National Association acting in the multiple
capacities of Securities Intermediary, Paying Agent, Note Registrar, Manager Transfer Facilitator, and in the capacity as Indenture Trustee. Wilmington Trust, National Association may, in such multiple capacities, discharge its separate functions
fully, without hindrance or regard to conflict of interest principles or other breach of duties to the extent that any such conflict or breach arises from the performance by Wilmington Trust, National Association of express duties set forth in this
Indenture and any other Related Documents in any of such capacities, all of which defenses, claims or assertions are hereby expressly waived by the other parties hereto except in the case of gross negligence (other than errors in judgment) and
willful misconduct and, solely with respect to the handling of funds actually received by the Indenture Trustee and the giving of notices in accordance with the terms hereof, negligence by Wilmington Trust, National Association.
102
IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused this Indenture to be duly executed and delivered by their respective officers thereunto duly authorized as of the day and year
first above written.
CAL FUNDING IV LIMITED
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By: |
/s/ Timothy B. Page
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Name: |
Timothy B. Page
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Title: |
Chief Financial Officer
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WILMINGTON TRUST, NATIONAL ASSOCIATION, as Indenture Trustee
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By: |
/s/ Jose Paredes
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Name: |
Jose Paredes
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Title: |
Assistant Vice President
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Exhibit 4.2
CAL FUNDING IV LIMITED
Issuer
and
WILMINGTON TRUST, NATIONAL ASSOCIATION
Indenture Trustee
SERIES 2020-1 SUPPLEMENT
DATED AS OF SEPTEMBER 9, 2020
TO
INDENTURE
DATED AS OF SEPTEMBER 9, 2020
FIXED RATE ASSET-BACKED NOTES, SERIES 2020-1,
CLASS A NOTES AND CLASS B NOTES
TABLE OF CONTENTS
Page
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ARTICLE I Definitions; Calculation Guidelines
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1 |
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Section 101.
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Definitions
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1
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ARTICLE II Creation of the Series 2020-1 Notes
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18
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Section 201.
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Designation
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18
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Section 202.
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Authentication and Delivery
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20
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Section 203.
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Interest Payments on the Series 2020-1 Notes
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20
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Section 204.
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Principal Payments on the Series 2020-1 Notes
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21
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Section 205.
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Prepayment of Principal on the Series 2020-1 Notes
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22
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Section 206.
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Payments of Principal and Interest
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23
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Section 207.
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Restrictions on Transfer
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23
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Section 208.
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Grant of Security Interest
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27
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ARTICLE III Series 2020-1 Series Account and Allocation and Application of Amounts Therein
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28
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Section 301.
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Series 2020-1 Series Account
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28
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Section 302.
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Series 2020-1 Restricted Cash Account
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28
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Section 303.
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Series 2020-1 Defaulted Lease Account
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30
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Section 304.
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Series 2020-1 Redemption Account
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30
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Section 305.
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Distributions from Series 2020-1 Series Account
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31
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Section 306.
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Allocation of Series 2020-1 Available Funds
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39
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Section 307.
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Series 2020-1 L/C Cash Account
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42
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Section 308.
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Drawing on Eligible Letters of Credit.
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43
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Section 309.
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Series 2020-1 Revenue Reserve Account
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44
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ARTICLE IV Series-Specific Early Amortization Events, Series-Specific Manager
Defaults, Series-Specific Events of Default and Covenants for the Series 2020-1 Notes
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45
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Section 401.
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Series-Specific Early Amortization Events
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45
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Section 402.
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Series 2020-1 Manager Defaults
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45
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Section 403.
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Series-Specific Events of Default
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46
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Section 404.
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Series 2020-1 Management Fee
|
47
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Section 405.
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Additional Covenants
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47
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Section 406.
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Back-up Manager Event
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48
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ARTICLE V Conditions to Issuance
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48
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Section 501.
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Conditions to Issuance
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48
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ARTICLE VI Representations and Warranties
|
48
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Section 601.
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Existence
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49
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Section 602.
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Authorization
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49
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i
TABLE OF CONTENTS
(continued)
Page |
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Section 603.
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No Conflict; Legal Compliance
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49
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Section 604.
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Validity and Binding Effect
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49
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Section 605.
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Financial Statements
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49
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Section 606.
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Place of Business
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49
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Section 607.
|
No Agreements or Contracts
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49
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Section 608.
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Consents and Approvals
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50
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Section 609.
|
Margin Regulations
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50
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Section 610.
|
Taxes
|
50
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Section 611.
|
Investment Company Act of 1940
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50
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Section 612.
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Solvency and Separateness
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51
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Section 613.
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Title; Liens
|
51
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Section 614.
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No Default
|
51
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Section 615.
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Litigation and Contingent Liabilities
|
51
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Section 616.
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Subsidiaries
|
52
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Section 617.
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No Partnership
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52
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Section 618.
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Pension and Welfare Plans
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52
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Section 619.
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Ownership of the Issuer
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52
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Section 620.
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Security Interest Representations
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52
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Section 621.
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ERISA Lien
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54
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Section 622.
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Survival of Representations and Warranties
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54
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ARTICLE VII Miscellaneous Provisions
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55 |
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Section 701.
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Ratification of Indenture
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55
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Section 702.
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Counterparts
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55
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Section 703.
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Governing Law
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55
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Section 704.
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Notices
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55
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Section 705.
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Amendments and Modifications
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56
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Section 706.
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Consent to Jurisdiction
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59
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Section 707.
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Waiver of Jury Trial
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59
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Section 708.
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Successors
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59
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Section 709.
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Nonpetition Covenant
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59
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Section 710.
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Recourse Against the Issuer
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59
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Section 711.
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Reports, Financial Statements and Other Information to Series 2020-1 Noteholders
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60
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Section 712.
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Patriot Act
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60
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Section 713.
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Definitive Notes
|
61
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Section 714.
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Noteholder Information
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61
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ii
TABLE OF CONTENTS
(continued)
EXHIBITS
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Exhibit
|
Description
|
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EXHIBIT A-1
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Form of 144A Book-Entry Note
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EXHIBIT A-2
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Form of Regulation S Temporary Book-Entry Note
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EXHIBIT A-3
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Form of Unrestricted Book-Entry Note
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EXHIBIT A-4
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Form of Note Issued to Institutional Accredited Investors
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EXHIBIT B
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Form of Certificate to be Given by Series 2020-1 Noteholders
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EXHIBIT C
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Form of Certificate to be Given by Euroclear or Clearstream
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EXHIBIT D
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Form of Certificate to be Given by Transferee of Beneficial Interest In a Regulation S Temporary Book-Entry Note
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EXHIBIT E
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Form of Transfer Certificate for Exchange or Transfer From 144A Book-Entry Note to Regulations S Book-Entry Note
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EXHIBIT F
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Form of Initial Purchaser Exchange Instructions
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SCHEDULES
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Schedules
|
Description
|
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Schedule I
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Scheduled Targeted Principal Balances
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Schedule II
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Maximum Concentration of Leases
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iii
SERIES 2020-1 SUPPLEMENT, dated as of September 9, 2020 (as amended, restated, supplemented or otherwise modified from time to time, this
“Supplement”), between CAL FUNDING IV LIMITED, an exempted company with limited liability incorporated in Bermuda (the “Issuer”), and WILMINGTON TRUST, NATIONAL
ASSOCIATION, a national banking association, as Indenture Trustee (the “Indenture Trustee”).
WHEREAS, pursuant to the Indenture, dated as of September 9, 2020 (as amended, restated, supplemented or otherwise modified from time to time, the “Indenture”), between the Issuer and the Indenture Trustee, the Issuer may from time to time issue any one or more Series of Notes. The Principal Terms of any Series of Notes are to be set forth in a Supplement to
the Indenture; and
WHEREAS, the Issuer wishes to create a new Series of Notes that will be designated as the Series 2020-1 Notes and this Supplement shall specify the Principal Terms of such Series 2020-1 Notes.
NOW THEREFORE, in consideration of the premises and mutual covenants herein contained, the parties hereto agree as follows:
ARTICLE I
Definitions; Calculation Guidelines
Definitions; Calculation Guidelines
Section 101. Definitions. i) Whenever used in this Supplement, the following words and phrases shall have the following meanings, and the definitions of such terms are applicable to
the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such terms.
“144A Book-Entry Notes”. The 144A Book-Entry Notes substantially in the form of Exhibit A-1 hereto.
“Additional Interest”. With respect to the period: (i) commencing Payment Date in March
2028; and (ii) ending upon payment in full of the principal balance of and all accrued interest on the Series 2020-1 Notes, four percent (4.00%) per annum for each class (in addition to the Class A Note Interest Rate and Class B Note Interest Rate
for each respective class). Interest will not accrue on any unpaid Additional Interest.
“Aggregate Available Amount”. As of any date of determination, an amount equal to the sum of
the amount available for drawing on all Eligible Letter(s) of Credit then in effect for Series 2020-1.
“Aggregate Class A Note Principal Balance”. As of any date of determination, an amount equal
to the sum of the Class A Note Principal Balances of all Class A Notes then Outstanding.
“Aggregate Class B Note Principal Balance”. As of any date of determination, an amount equal
to the sum of the Class B Note Principal Balances of all Class B Notes then Outstanding.
“Aggregate Invested Amount”. As of any date of determination, an amount equal to the sum of
the Invested Amounts for all Series of Notes then Outstanding.
“Aggregate Series 2020-1 Note Principal Balance”. As of any date of determination, an amount
equal to the sum of the then Aggregate Class A Note Principal Balance and the then Aggregate Class B Note Principal Balance then Outstanding.
“Back-up Manager Event”. For the Series 2020-1 Notes, the event on conditions set forth in
Section 406 of this Supplement.
“Balance Sheet Date”. December 31, 2019.
“Bankruptcy Event”. For any Person, any of the following events:
(a) a case or other proceeding shall be commenced, without the application or consent of such Person, in any court, seeking the liquidation, reorganization, debt arrangement, dissolution,
winding up or composition or readjustment of debts of such Person, the appointment of a trustee, receiver, custodian, liquidator, assignee, sequestrator or the like for such Person or any substantial part of its assets, or any similar action with
respect to such Person under any law relating to bankruptcy, insolvency, reorganization, winding up or composition or adjustment of debts, and such case or proceeding shall continue undismissed, or unstayed and in effect, for a period of 60 days; or
an order for relief in respect of such Person shall be entered in an involuntary case under the federal bankruptcy laws or other similar laws now or hereafter in effect; or
(b) such Person shall commence a voluntary case or other proceeding under any applicable bankruptcy, insolvency, reorganization, debt arrangement, dissolution or other similar law now or
hereafter in effect, or shall consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestration or the like, for such Person or any substantial part of its property, or shall make any general
assignment for the benefit of creditors, or shall fail to, or admit in writing its inability to, pay its debts generally as they become due.
“CAI”. CAI International, Inc., a Delaware Corporation.
“CAL”. Container Applications Limited, a company incorporated and licensed as an international business company and existing under the laws of Barbados.
“CAL Funding III”. CAL Funding III Limited, an exempted company with limited liability, incorporated in Bermuda.
“CAL Revolver Administrative Agent”. Bank of America, N.A. as administrative agent for the lenders under the Third Amended and Restated Revolving Credit
Agreement, dated as of March 15, 2013 as amended, with CAI and CAL as co-borrowers.
2
“Capitalized Leases”. A lease under which CAI or any of its Subsidiaries is the lessee or obligor, the discounted future rental payment obligations under
which are required to be capitalized on the balance sheet of the lessee or obligor in accordance with GAAP.
“Change of Control”. With respect to CAI in its capacity as Sub-Manager, an event or series of events by which any of the following events occur:
(a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act, but excluding any employee benefit plan of such person or its subsidiaries, and any
person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of 50% or more of the
equity securities of CAI entitled to vote for members of the board of directors or equivalent governing body of CAI on a fully-diluted basis (and taking into account all such securities that such “person” or “group” has the right to acquire pursuant
to any option right); or
(b) any Person or two or more Persons acting in concert shall have acquired by contract or otherwise, the power to exercise, directly or indirectly, a controlling influence over the
management or policies of CAI, or control over the equity securities of CAI entitled to vote for members of the board of directors or equivalent governing body of CAI on a fully-diluted basis (and taking into account all such securities that such
Person or Persons have the right to acquire pursuant to any option right) representing 50% or more of the combined voting power of such securities.
“Class A Adjusted Asset Base”. As of any Determination
Date shall be an amount equal to the product of (i) the quotient of (x) a percentage equal to the Class A Advance Rate decreased by one-twelfth of 0.50% for each of Payment Dates 1 through 24 inclusive, one-twelfth of 1.0% for each of Payment
Dates 25 through 66 inclusive, one-twelfth of 1.50% for each of Payment Dates 67 through 90 and each Payment Date thereafter, divided by (y) the Class B Advance Rate decreased by one-twelfth of 0.50% for each of Payment Dates 1 through 24
inclusive, one-twelfth of 1.0% for each of Payment Dates 25 through 66 inclusive, one-twelfth of 1.50% for each of Payment Dates 67 through 90 and each Payment Date thereafter, multiplied by (ii) the Series 2020-1 Asset Base.
“Class A Advance Rate”. For the Class A Notes, eighty percent (80%).
“Class A Asset Base”. As of any Determination Date, shall be equal to the product of (i) the
quotient of the Class A Advance Rate divided by the Class B Advance Rate and (ii) the Series 2020-1 Asset Base.
“Class A Note”. Any of the $715,900,000 Fixed Rate
Asset-Backed Notes, Series 2020-1, Class A issued pursuant to the terms of this Supplement, substantially in the form of any Exhibit A-1, A-2, A-3 or A-4 to this Supplement.
“Class A Note Interest Payment”. For the Class A Notes on each Payment Date, an amount equal
to the product of (i) two and twenty-two hundredths percent (2.22%) per annum, (ii) the Aggregate Class A Note Principal Balance on the immediately preceding Payment Date, calculated after giving effect to all principal payments on the Class A
Notes actually paid on such date (or, in the case of the first Payment Date, the Aggregate Class A Note Principal Balance on the Closing Date) and (iii) one twelfth (or, in the case of the first Payment Date, the number of days in the first
Interest Accrual Period divided by 360).
3
“Class A Note Principal Balance”. With respect to any Class A Note as of any date of
determination, an amount equal to the excess, if any, of (x) the initial principal balance of such Class A Note as of the Closing Date, over (y) the cumulative amount of all Class A Supplemental Principal Payment Amounts, Class A Scheduled
Principal Payment Amounts and any other principal payments (including Prepayments) actually paid to the related Class A Noteholder subsequent to the Closing Date.
“Class A Scheduled Principal Payment Amount”. On each Payment Date is equal to the excess,
if any, of (x) the then Aggregate Class A Note Principal Balance, over (y) the Class A Scheduled Targeted Principal Balance for such Payment Date.
“Class A Scheduled Targeted Principal Balance”. On each Payment Date is the applicable amount
set forth opposite such Payment Date under “Class A” in Schedule I hereto, as such Schedule I may be adjusted from time to time in accordance with Section 205(b) of this Supplement. For each Payment Date
occurring after the latest Payment Date under “Class A” on Schedule I, the Class A Scheduled Targeted Principal Balance shall be zero.
“Class A Supplemental Principal Payment Amount”. On each Payment Date is equal to the excess,
if any, of (i) the Aggregate Class A Note Principal Balance (calculated after giving effect to any payment of any Class A Scheduled Principal Payment Amount actually paid on such Payment Date), over (ii) the Class A Adjusted Asset Base (determined
as of the last day of the month immediately preceding such Payment Date).
“Class B Adjusted Advance Rate”. As of any Determination Date, the Class B Advance Rate, decreased by: (i) one-twelfth of 0.50% for each of Payment Dates 1 through 24, inclusive, (ii) one-twelfth of 1.00% for each of Payment Dates 25 through 66, inclusive; and (iii) one-twelfth of 1.50% for each of
Payment Dates 67 through 90, and each Payment Date thereafter.
“Class B Advance Rate”. For the Class B Notes, eighty-three percent (83%).
“Class B Note”. The $26,800,000 Fixed Rate Asset-Backed
Notes, Series 2020-1, Class B.
“Class B Note Interest Payment”. For the Class B Notes on each Payment Date, an amount equal
to the product of (i) three and five-tenths percent (3.50%) per annum, (ii) the Aggregate Class B Note Principal Balance on the immediately preceding Payment Date, calculated after giving effect to all principal payments on the Class B Notes
actually paid on such date (or, in the case of the first Payment Date, the Aggregate Class B Note Principal Balance on the Closing Date) and (iii) one twelfth (or, in the case of the first Payment Date, the number of days in the first Interest
Accrual Period divided by 360)..
“Class B Note Principal Balance”. With respect to any Class B Note as of any date of
determination, an amount equal to the excess, if any, of (x) the initial principal balance of such Class B Note as of the Closing Date, over (y) the cumulative amount of all Class B Supplemental Principal Payment Amounts, Class B Scheduled
Principal Payment Amounts and any other principal payments (including Prepayments) actually paid to the related Class B Noteholder subsequent to the Closing Date.
4
“Class B Scheduled Principal Payment Amount”. On each Payment Date is equal to the excess, if
any, of (x) the then Aggregate Class B Note Principal Balance, over (y) the Class B Scheduled Targeted Principal Balance for such Payment Date. For each Payment Date occurring after the latest Payment Date under “Class B” on Schedule II, the Class
B Scheduled Targeted Principal Balance shall be zero.
“Class B Scheduled Targeted Principal Balance”. On each Payment Date is the applicable
amount set forth opposite such Payment Date under “Class B” in Schedule I hereto, as such Schedule I may be adjusted from time to time in accordance with Section 205(b) of this Supplement.
“Class B Supplemental Principal Payment Amount”. On each Payment Date is equal to the excess,
if any, of (i) the Aggregate Series 2020-1 Note Principal Balance (calculated after giving effect to all Class A Supplemental Principal Payment Amounts, Class A Scheduled Principal Payment Amounts, and Class B Scheduled Principal Payment Amounts
actually paid on such date) over (ii) the Series 2020-1 Adjusted Asset Base (determined as of the last day of the month immediately preceding such Payment Date).
“Closing Date”. September 9, 2020.
“Consolidated Funded Debt”. At any time of determination, with respect to CAI and its Subsidiaries, an amount equal to the excess of (1) the sum, without
duplication, of (a) the aggregate amount of Indebtedness of CAI and its Subsidiaries, on a consolidated basis, relating to (i) the borrowing of money or the obtaining of credit, including the issuance of notes or bonds, (ii) the deferred purchase
price of assets (other than trade payables (including trade payables to manufacturers) incurred in the ordinary course of business), (iii) Capitalized Leases, (iv) Rental Obligations, and (v) the maximum drawing amount of all letters of credit
outstanding plus (b) Indebtedness of the type referred to in clause (a) of another Person guaranteed by CAI or any of its Subsidiaries, in all cases determined in accordance with GAAP, over (2) the amount of cash and short term investments
held by or on behalf of CAI or any of its Subsidiaries as restricted cash pursuant to the terms of a debt instrument.
“Consolidated Leverage Ratio”. As of any date of determination, the ratio of (a) the Consolidated Funded Debt to (b) Consolidated Tangible Net Worth; provided
that If there is a restructuring of CAI and its consolidated subsidiaries, the Consolidated Leverage Ratio will be modified so that it is calculated in a manner equivalent to the calculation of the equivalent covenant in the primary senior secured
revolving credit agreement for CAI that is in place after giving effect to the restructuring. The same 0.75 margin as is currently in place between the Consolidated Leverage Ratio for this Supplement and the comparable consolidated leverage ratio in
CAI's (or its successor entity's) senior secured revolving credit agreement will remain in place with respect to the Consolidated Leverage Ratio for this Supplement
5
“Consolidated Tangible Net Worth”. As of any date of determination, for CAI and its Subsidiaries on a consolidated
basis, Shareholders’ Equity of CAI and its Subsidiaries on such date minus the Intangible Assets of CAI and its Subsidiaries on such date; provided that the calculation of Consolidated Tangible Net Worth shall exclude any unrealized
adjustments, whether positive or negative, resulting from interest rate protection agreements or swap contracts in respect of currency hedging entered into in the ordinary course of business.
“Delinquent Bankrupt Lessee”. Each Lessee of a
Managed Container that meets both of the following criteria:
(A) such Lessee is then the subject of a Bankruptcy Event; and
(B) such Lessee is not current on its rental obligations under the related Lease(s) within one hundred eighty (180) days after the commencement of such Bankruptcy Event.
“Downgraded Letter of Credit Bank”. This term has the meaning set forth in Section 308(e).
“DTC”. This term has the meaning set forth in Section 207 (ix).
“Eligible Bank”. A banking, financial or similar institution capable of issuing an Eligible Letter of Credit which institution has a long-term unsecured debt
rating of “A” or better from the Rating Agency.
“Eligible Letter of Credit”. Any Letter of Credit (a) issued by an Eligible Bank and for which the Indenture Trustee is the beneficiary on behalf of the
2020-1 Noteholders, (b) that has a stated expiration date of not earlier than one year after its issuance date and that permits drawing thereon prior to non-renewal of such Letter of Credit if not replaced by cash or a replacement Eligible Letter of
Credit, (c) that may be drawn upon at a branch of such institution in the Borough of Manhattan, New York or the City of Wilmington, Delaware, (d) which is payable in Dollars in immediately available funds in an amount of not less than the available
drawing amount specified therein, and (e) that may be transferred by the Indenture Trustee, without a fee payable by the Indenture Trustee and without the consent of the related Letter of Credit Bank, to any replacement indenture trustee appointed in
accordance with the terms of the Indenture.
“Excess Defaulted Lessee Balance”. As of any date of determination, an amount equal to the
excess of (x) an amount equal to the product of (i) the Series 2020-1 Asset Allocation Percentage and (ii) an amount equal to the sum of the then Net Book Values of all Unrecovered Containers, over (y) an amount equal to the product of (a) five
percent (5%), (b) the Series 2020-1 Asset Allocation Percentage and (c) the then Aggregate Net Book Value.
“GAAP or generally accepted accounting principles”. (a) With respect to the financial calculations in Section 402, whether directly or indirectly through reference to a capitalized term used therein, means (i) principles that are consistent
with the principles promulgated or adopted by the Financial Accounting Standards Board and its predecessors, in effect for the fiscal year ended on the Balance Sheet Date, and (ii) to the extent consistent with such principles, the accounting
practice of any Borrower reflected in its financial statements for the year ended on the Balance Sheet Date, and (b) when used in general, other than as provided above, means principles that are (i) consistent with the principles promulgated or
adopted by the Financial Accounting Standards Board and its predecessors, as in effect from time to time, and (ii) consistently applied with past financial statements of any Borrower adopting the same principles, provided that in each case referred
to in this definition of “GAAP” a certified public accountant would, insofar as the use of such accounting principles is pertinent, be in a position to deliver an unqualified opinion (other than a qualification regarding changes in GAAP) as
to financial statements in which such principles have been properly applied.
6
“Indebtedness”. As to any Person and whether recourse is secured by or is otherwise available
against all or only a portion of the assets of such Person and whether or not contingent, but without duplication:
(a) every obligation of such Person for money borrowed,
(b) every obligation of such Person evidenced by bonds, debentures, notes or other similar instruments, including obligations incurred in connection with the acquisition of property, assets
or businesses,
(c) every reimbursement obligation of such Person with respect to letters of credit, bankers’ acceptances or similar facilities issued for the account of such Person,
(d) every obligation of such Person issued or assumed as the deferred purchase price of property or services (including securities repurchase agreements but excluding trade accounts payable
or accrued liabilities arising in the ordinary course of business which are not overdue or which are being contested in good faith),
(e) every obligation of such Person under any Capitalized Lease,
(f) every obligation of such Person under any Synthetic Lease,
(g) all sales by such Person of (i) accounts or general intangibles for money due or to become due, (ii) chattel paper, instruments or documents creating or evidencing a right to payment of
money or (iii) other receivables (collectively “receivables”), whether pursuant to a purchase facility or otherwise, other than in connection with the disposition of the business operations of such Person relating thereto or a disposition of
defaulted receivables for collection and not as a financing arrangement, and together with any obligation of such Person to pay any discount, interest, fees, indemnities, penalties, recourse, expenses or other amounts in connection therewith,
(h) every obligation of such Person (an “equity related purchase obligation”) to purchase, redeem, retire or otherwise acquire for value any shares of Capital Stock issued by such Person or
any rights measured by the value of such Capital Stock,
(i) every obligation of such Person under any forward contract, futures contract, swap, option or other financing agreement or arrangement (including, without limitation, caps, floors,
collars and similar agreements), the value of which is dependent upon interest rates, currency exchange rates, commodities or other indices (a “derivative contract”),
7
(j) every obligation in respect of Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent that such Person is liable therefor as
a result of such Person’s ownership interest in or other relationship with such entity, except to the extent that the terms of such Indebtedness provide that such Person is not liable therefor and such terms are enforceable under applicable law, and
(k) every obligation, contingent or otherwise, of such Person guaranteeing, or having the economic effect of guarantying or otherwise acting as surety for, any obligation of a type described
in any of clauses (a) through (j) (the “primary obligation”) of another Person (the “primary obligor”), in any manner, whether directly or indirectly, and including, without limitation, any obligation of such Person (i) to purchase or pay (or advance
or supply funds for the purchase of) any security for the payment of such primary obligation, (ii) to purchase property, securities or services for the purpose of assuring the payment of such primary obligation, or (iii) to maintain working capital,
equity capital or other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such primary obligation.
provided, however, that, for the avoidance of doubt, any trade payables owing to manufacturers
incurred in the ordinary course of business that is not delinquent shall not be deemed Indebtedness for the purposes of this definition.
The “amount” or “principal amount” of any Indebtedness at any time of determination represented by (i) any Indebtedness, issued at a price that is less than the principal amount at
maturity thereof, shall be the amount of the liability in respect thereof determined in accordance with GAAP, (ii) any Capitalized Lease shall be the principal component of the aggregate of the rental obligation under such Capitalized Lease payable
over the term thereof that is not subject to termination by the lessee, (iii) any sale of receivables shall be the amount of unrecovered capital or principal investment of the purchaser (other than the Issuer or any of its wholly-owned Subsidiaries)
thereof, excluding amounts representative of yield or interest earned on such investment, (iv) any Synthetic Lease shall be the stipulated loss value, termination value or other equivalent amount, (v) any derivative contract shall be the maximum
amount of any termination or loss payment required to be paid by such Person if such derivative contract were, at the time of determination, to be terminated by reason of any event of default or early termination event thereunder, whether or not such
event of default or early termination event has in fact occurred, (vi) any equity related purchase obligation shall be the maximum fixed redemption or purchase price thereof inclusive of any accrued and unpaid dividends to be comprised in such
redemption or purchase price, and (vii) any guaranty or other contingent liability referred to in clause (k) shall be an amount equal to the stated or determinable amount of the primary obligation in respect of which such guaranty or other contingent
obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder) as determined by such Person in good faith.
“Initial Purchasers”. Each of (i) Wells Fargo Securities
LLC; (ii) BofA Securities, Inc.; (iii) Deutsche Bank Securities; (iv) MUFG Securities Americas Inc.; (v) RBC Capital Markets; (vi) Fifth Third Securities; (vii) ING Bank N.V.; and (viii) PNC Capital Markets LLC.
“Institutional Accredited Investors”. Institutional “accredited investors” within the meaning
of paragraphs (1), (2), (3) or (7) of Rule 501(a) under the Securities Act.
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“Intangible Assets”. Assets that are considered to be intangible assets under GAAP, including customer lists, goodwill, computer software, copyrights, trade
names, trademarks, patents, franchises, licenses, unamortized deferred charges, unamortized debt discount and capitalized research and development costs.
“Interest Accrual Period”. With respect to each Payment Date, the period commencing on and
including the immediately preceding Payment Date (or in the case of the initial Payment Date with respect to a Series, commencing on and including the Closing Date) and ending on but excluding the current Payment Date.
“Issuance Date Restricted Cash Amount”. An amount
equal to the sum of the Series 2020-1 Restricted Cash Amount on the Issuance Date of the Series 2020-1 Notes; this amount shall be Fourteen Million, Two Hundred Twenty-Three Thousand, Two Hundred Thirty-Five Dollars ($14,223,235).
“Issuance Date Series 2020-1 Note Principal Balance”. The Unpaid Principal Balance on the
Closing Date; this amount shall be Seven Hundred Forty-Two Million, Seven Hundred Thousand Dollars ($742,700,000).
“Letter of Credit”. Any irrevocable, transferable, unconditional standby letter of credit issued for the benefit of the Indenture Trustee, for the benefit of
the Series 2020-1 Noteholders, in accordance with the terms of this Supplement.
“Letter of Credit Bank”. The issuing bank of a Letter of Credit.
“Letter of Credit Expiration Date”. With respect to any Letter of Credit, the stated expiration date set forth in such Letter of Credit, as such date may be
extended in accordance with the terms of such Letter of Credit.
“Letter of Credit Fee”. The periodic interest and/or fees payable by the Issuer to a Letter of Credit Bank for issuing a Letter of Credit; provided, however,
that in no event shall the Letter of Credit Fee include reimbursement for any unreimbursed draws made on the related Letter of Credit.
“LOC Pro Rata Share”. With respect to any Letter of Credit, a fraction (stated as percentage) the numerator of which is the available amount of such Letter of
Credit and the denominator of which is the then Aggregate Available Amount.
“Majority of Holders”. With respect to the Series 2020-1 Notes means, as of any date of
determination, (A) so long as the Class A Notes are Outstanding, Class A Noteholders holding Class A Notes constituting more than fifty percent (50%) of the then Aggregate Class A Note Principal Balance; and (B) at all times not covered by clause
(A), Class B Noteholders holding Class B Notes constituting more than fifty percent (50%) of the Aggregate Class B Note Principal Balance.
“Mandatory Special Redemption”. This term has the meaning set forth in Section 304(c).
9
“Material Lessees”. The largest twenty-five (25) lessees of Eligible Containers based on the
Aggregate Net Book Value of the Eligible Containers on lease to such lessees.
“Percentage”. With respect to any Series 2020-1 Noteholder as of any date of determination,
the percentage equivalent of a fraction, the numerator of which is the Class A Note Principal Balance or Class B Note Principal Balance, as the case may be, of the Class A Note or Class B Note, as the case may be, owned by such Series 2020-1
Noteholder and the denominator of which is equal to the then Aggregate Class A Note Principal Balance or Class B Note Principal Balance, as the case may be.
“Permitted Non-U.S. Person”. Any Person (i) who is not a U.S. Person and (ii) to whom the
offer and sale of the Series 2020-1 Notes may be made without registration under the Securities Act in reliance upon Regulation S.
“Permitted Payment Date Withdrawals”. Both of the following with respect to the Series 2020-1
Notes: (i) on any Payment Date other than the Series 2020-1 Legal Final Payment Date, the amounts required to pay any shortfall in the Class A Note Interest Payment and the Class B Note Interest Payment (calculated after giving effect to the
application of all Series 2020-1 Available Funds on such Payment Date); and (ii) on the Series 2020-1 Legal Final Payment Date for the Series 2020-1 Note, the amount required to pay any shortfall in the unpaid principal balance of all of the Series
2020-1 Notes (calculated after giving effect to the application of the Series 2020-1 Available Funds on such Payment Date).
“Prepayment Premium”. The premium payable in connection with a Mandatory Special Redemption
pursuant to Section 304(c).
“Qualified Institutional Buyers”. This term has the meaning set forth in Section 207(i).
“Regulation S”. Regulation S under the Securities Act.
“Regulation S Temporary Book-Entry Notes”. The Regulation S Temporary Book-Entry Notes
substantially in the form of Exhibit A-2.
“Related Documents”. With respect to any Series, the Contribution and Sale Agreement, the
Indenture, the related Supplement, the Notes of such Series, the Note Purchase Agreement for such Series, the Management Agreement, the Manager Transfer Facilitator Agreement, each Interest Rate Hedge Agreement (upon execution thereof), each Letter
of Credit (upon delivery thereof), the Performance Guaranty and each other document or instrument executed in connection with the issuance of any Series, as any of the foregoing may from time to time be amended, modified, supplemented or renewed.
10
“Rental Obligations”. All present or future obligations of CAI or any of its Subsidiaries
under any rental agreements or leases of real or personal property, other than (a) obligations that can be terminated by the giving of notice without liability to CAI or such Subsidiary in excess of the liability for rent due as of the date on
which such notice is given and under which no penalty or premium is paid as a result of any such termination, (b) obligations under rental agreements relating to equipment other than Containers having an aggregate value of less than $5,000,000 for
all such agreements, (c) obligations in respect of any Capitalized Leases, (d) any obligations incurred in a lease transaction where the obligation of CAI or its Subsidiary to pay rent thereunder is limited to a pass-through of net rental amounts
received by CAI or its Subsidiaries from a sublessee of container equipment under such transaction (“net sublease rentals”), so that if there are no net sublease rental amounts received by CAI or its Subsidiaries from a sublessee then CAI or its
Subsidiaries would have no obligation to make any rental payment under or in connection with such transaction, shall not constitute a Rental Obligation hereunder; and (e) obligations under the lease of commercial office properties in the conduct of
the Company’s business shall not be deemed a Rental Obligation hereunder. For purposes of this Agreement, the aggregate amount of Rental Obligations of CAI and its Subsidiaries shall, as at any date of determination, be an amount equal to the net
present value, calculated at a discount rate equal to the rate implicit in the relevant lease per annum, of the future Rental Obligations of such Person.
“Required Payments”. For Series 2020-1 Notes, the Required Payments shall be as follows:
(A) if neither an Early Amortization Event for Series 2020-1 nor an Event of Default for Series 2020-1 is then continuing, the payments specified in clauses (1) through (21) inclusive (excluding clause (16)) inclusive in Section 305(I), (B) if an
Early Amortization Event for Series 2020-1 shall then be continuing but no Event of Default for Series 2020-1 shall then be continuing (or an Event of Default for Series 2020-1 is continuing but the Series 2020-1 Notes have not been accelerated in
accordance with the Indenture), the payments set forth in clauses (1) through (17) inclusive (excluding clause (14)) in Section 305(II), or (C) if an Event of Default for Series 2020-1 shall then be continuing and the Series 2020-1 Notes have been
accelerated in accordance with the Indenture and such consequence shall not have been rescinded or annulled, the payments set forth in clauses (1) through (16) (excluding clause (13)) inclusive in Section 305(III).
“Rule 144A”. This term has the meaning set forth in Section
207(i).
“Scheduled Principal Payment Amount”. With respect to Series 2020-1, the Class A Scheduled
Principal Payment Amount and the Class B Scheduled Principal Payment Amount.
“Sellers”. CAL and CAL Funding III.
“Series 2020-1 Asset Allocation Percentage”. As of any date of determination, the Asset
Allocation Percentage for Series 2020-1.
“Series 2020-1 Asset Base”. As of any Determination Date, an amount equal to the sum of (a)
the product of (i) Series 2020-1 Asset Allocation Percentage in effect on such Determination Date, (ii) a percentage equal to 100% minus the Series 2020-1 Required Overcollateralization Percentage in effect on such Determination Date and (iii) the
sum of (x) the Aggregate Net Book Value (measured as of the last day of the immediately preceding calendar month) and (y) the aggregate outstanding balance of receivables resulting from the sale or disposition of Managed Containers which have not
been outstanding for more than 60 days, plus (b) an amount equal to the sum of (i) the amount of cash and Eligible Investments on deposit in each of the Series 2020-1 Restricted Cash Account, the Series 2020-1 Defaulted Lease Account, the Series
2020-1 Redemption Account and the Series 2020-1 L/C Cash Account and (ii) an amount equal to the product of (x) the Series 2020-1 Asset Allocation Percentage in effect on such Determination Date and (y) the amount of cash and Eligible Investments
on deposit in the Excess Funding Account, plus (c) the Aggregate Available Amount.
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“Series 2020-1 Adjusted Asset Base”. As of any Determination Date, an amount equal to the sum
of (a) the product of (i) the excess of the (1) Class B Adjusted Advance Rate, minus (2) the Series 2020-1 Excess Concentration Percentage (measured as of the last day of the immediately preceding calendar month) and (ii) the sum of (x) the
Aggregate Net Book Value (measured as of the last day of the immediately preceding calendar month) and (y) the aggregate outstanding balance of receivables resulting from the sale or disposition of Managed Containers which have not been outstanding
for more than 60 days, plus (b) an amount equal to the sum of the amount of cash and Eligible Investments on deposit in each of the Series 2020-1 Restricted Cash Account, the Series 2020-1 Defaulted Lease Account, the Series 2020-1 Redemption
Account and the Series 2020-1 L/C Cash Account on such Determination Date and (c) the Aggregate Available Amount.
“Series 2020-1 Available Funds”. As of any Payment Date, an amount equal to the sum of (i) an
amount equal to the product of (x) the Available Distribution Amount for the most recently completed Collection Period and (y) the Series 2020-1 Collection Allocation Percentage in effect on the related Determination Date, (ii) all amounts
transferred to the Series 2020-1 Series Account from the Series 2020-1 Restricted Cash Account, the Series 2020-1 L/C Cash Account or the Series 2020-1 Revenue Reserve Account on the related Determination Date pursuant to the Indenture, (iii) the
amount of funds transferred to the Series 2020-1 Series Account on such Payment Date following transfer from the Excess Funding Account to the Trust Account pursuant to the Indenture, (iv) the amount of any Shared Available Funds (as defined in the
Supplements for each other Series of Notes then Outstanding) deposited to the Series 2020-1 Series Account on such Payment Date in accordance with the terms of the Supplement for each other Series of Notes then Outstanding, and (v) any other
amounts deposited into the Series 2020-1 Series Account pursuant to the terms of the Series 2020-1 Supplement, including amounts transferred from the Series 2020-1 Revenue Reserve Account.
“Series 2020-1 Collection Allocation Percentage”. For Series 2020-1 Notes as of any date of
determination, a fraction (expressed as a percentage) equal to (A) divided by (B), as follows:
(A) the Series 2020-1 Invested Amount; and
(B) the Aggregate Invested Amount (exclusive of the Invested Amount for any Liquidation Deficiency Series).
For purposes of the Indenture and the Series 2020-1 Supplement, the Series 2020-1 Collection Allocation Percentage shall be the “Collection Allocation Percentage” for Series 2020-1.
“Series 2020-1 Control Party”. The Majority of Holders of the Series 2020-1 Notes.
“Series 2020-1 Defaulted Lease Account”. The non-interest bearing trust account designated as such that has been established by the Issuer for the benefit of
the Series 2020-1 Noteholders in accordance with Section 303 of this Supplement.
“Series 2020-1 Early Amortization Event”. An Early Amortization Event for Series 2020-1.
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“Series 2020-1 Event of Default”. An Event of Default for Series 2020-1.
“Series 2020-1 Excess Concentration Percentage”. As of any date of determination, an amount
equal to the sum of the following percentages:
(a) |
Maximum Concentration of Dry Freight Special Containers. The amount by which (x) the sum of the Net Book Values of all Eligible
Containers that are dry freight specialized containers (other than refrigerated containers and generator sets), divided by the Aggregate Net Book Value, expressed as a percentage, exceeds (y) thirty percent (30%);
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(b) |
Maximum Concentration of Finance Leases (Total). The amount by which (x) the sum of the Net Book Values of all Eligible Containers that
are subject to Finance Leases, divided by the Aggregate Net Book Value, expressed as a percentage, exceeds (y) thirty five percent (35%);
|
(c) |
Maximum Concentration of Non-U.S. Currency Rentals. The amount by which (x) the sum of the Net Book Values of all Eligible Containers
subject to Leases for which rentals are payable in a currency other than Dollars and which are not the subject of a currency hedge agreement, divided by the Aggregate Net Book Value, expressed as a percentage, exceeds (y) two percent (2%);
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(d) |
Maximum Concentration of any Three Lessees. The amount by which (x) the sum of the Net Book Values of all Eligible Containers then on
lease to any three lessees or sublessees, divided by the Aggregate Net Book Value, expressed as a percentage, exceeds (y) sixty percent (60%); provided, however, that if two or more lessees shall engage in any transaction (whether through
merger, consolidation, stock sale, asset sale or otherwise) pursuant to which a lessee shall become the owner of, or interest holder in, any other lessee’s leasehold interests in one or more Eligible Containers and the effect of such
transaction is to cause a breach of the foregoing threshold, then the foregoing threshold shall on the effective date of such transaction be increased to an amount equal to the quotient, expressed as a percentage, (x) the numerator of which
shall equal the sum of (A) the sum of the Net Book Values of all Eligible Containers on lease to such transacting lessees immediately prior to such transaction, and (B) the sum of the Net Book Values of all Eligible Containers then on lease
to the two other lessees having the most Eligible Containers then on lease with the Issuer (measured by Net Book Value) and (y) the denominator of which shall equal the then Aggregate Net Book Value; and provided further that, if the
foregoing limitation has been increased above sixty percent (60%) by operation of the above proviso, then any additional Eligible Containers subsequently leased to any of such three lessees shall not be considered Eligible Containers until
such time as the sum of the Net Book Values of all Eligible Containers then on lease to such three lessees does not exceed an amount equal to sixty percent (60%) of the then Aggregate Net Book Value;
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(e) |
Maximum Concentration of a Single Lessee. The amount by which (x) the sum of the Net Book Values of all Eligible Containers then on lease
to any single lessee, divided by the Aggregate Net Book Value, expressed as a percentage, exceeds either (a) with respect to any of the lessees set forth on Schedule II attached hereto, the percentage of the Aggregate Net Book Value set
opposite the name of such lessee on such annex, (b) with respect to all other Material Lessees not covered by clause (a), fifteen percent (15%) of the Aggregate Net Book Value and (c) with respect to any lessee not covered by clauses (a) or
(b), seven percent (7%) of the Aggregate Net Book Value; provided, however, that if two or more lessees shall engage in any transaction (whether through merger, consolidation, stock sale, asset sale or otherwise) pursuant to which a lessee
shall become the owner of, or interest holder in, any other lessee’s leasehold interests in one or more Eligible Containers, the foregoing threshold set forth in clauses (a) and (b) shall on the effective date of such transaction be
increased with respect to such acquiring or, in the case of a merger, surviving lessee to equal the greater of (i) the sum of the applicable percentage limitations for the transacting lessees as set forth in clauses (a) and (b) above, and
(ii) a quotient, expressed as a percentage, (x) the numerator of which shall equal the sum of the Net Book Values of all Eligible Containers on Lease to such transacting lessees immediately prior to such transaction and (y) the denominator
of which shall equal the then Aggregate Net Book Value; and
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(f) |
Maximum Concentration of Finance Leases by Single Lessee. The amount by which (x) the sum of the Net Book Values of all Eligible
Containers that are subject to a Finance Lease to a single lessee, divided by the Aggregate Net Book Value, expressed as a percentage, exceeds (y) twenty-five percent (25%).
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“Series 2020-1 Expected Final Payment Date”. The Payment Date in March 2028.
“Series 2020-1 Interest Coverage Ratio”. For any Payment Date for Series 2020-1 beginning
with the thirteenth Payment Date for Series 2020-1, the ratio calculated according to the following formula:
ICR = (TCC - FEES - OPEX) / INT |
||||
where: ICR
|
= |
Series 2020-1 Interest Coverage Ratio;
|
||
TCC =
|
the total amount of Gross Revenue, Casualty Proceeds and Sales Proceeds received during the most recently concluded twelve (12) Collection Periods;
|
|||
FEES =
|
the aggregate amount of Issuer Expenses, Management Fees, Transition Manager Fees, and Indenture Trustee Fees for all Series of Notes which have accrued during the most recently concluded twelve (12) Collection
Periods;
|
|||
OPEX =
|
the amount of Operating Expenses for the Managed Containers paid during the most recently concluded twelve (12) Collection Periods.
|
|||
INT=
|
the sum of all interest (excluding Additional Interest) owing on all Series of Notes on the twelve most recent Payment Dates (including the current Payment Date) (including the current Payment Date).
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“Series 2020-1 Invested Amount”. As of any date of determination for the Series 2020-1 Notes,
one of the following: (a) if no Early Amortization Event for any Series or Event of Default for any Series is then continuing, an amount equal to (x) the Issuance Date Series 2020-1 Note Principal Balance minus the Issuance Date Restricted Cash
Amount for Series 2020-1, divided by (y) 100% minus the Series 2020-1 Required Overcollateralization Percentage in effect on such date of determination; or (b) if any Early Amortization Event for any Series or Event of Default for any Series is
then continuing, an amount (not less than zero) equal to (x) the Unpaid Principal Balance on the date on which such Early Amortization Event for any Series or Event of Default for any Series occurred, minus the amount then on deposit in the Series
2020-1 Restricted Cash Account the Series 2020-1 L/C Cash Account and the Aggregate Available Amount on the date on which such Early Amortization Event for any Series or Event of Default for any Series occurred, divided by (y) 100% minus the Series
2020-1 Required Overcollateralization Percentage on the date on which such Early Amortization Event for any Series or Event of Default for any Series occurred.
“Series 2020-1 Issuance Date”. The date the Series 2020-1 Notes are issued pursuant to the Series 2020-1 Note Purchase Agreement.
“Series 2020-1 L/C Cash Account”. The non-interest bearing trust account established pursuant to Section 307 of this Supplement.
“Series 2020-1 Legal Final Payment Date”. September 25, 2045.
“Series 2020-1 Management Fee”. A Management Fee for the Series 2020-1 Notes equal to the sum
of: (a) 7% of the Series 2020-1 Asset Allocation Percentage of net operating income (“NOI”) of Managed Containers subject to Term Leases (including short term leases), (b) 2% of the Series 2020-1 Asset Allocation Percentage of payments received on
Finance Leases of the Managed Containers, and (c) 5% of the Series 2020-1 Asset Allocation Percentage of Sales Proceeds from the disposition of any Managed Container (other than dispositions to Manager or one of its Affiliates).
“Series 2020-1 Manager Default”. The occurrence of either a Trust Manager Default or a
Series-Specific Manager Default set forth in Section 402 hereof.
“Series 2020-1 Note Purchase Agreement”. The Note Purchase Agreement dated as of September
9, 2020 between Issuer, the Indenture Trustee, the Initial Purchasers, CAI, CAL and CAL Funding III.
“Series 2020-1 Noteholder”. Any Holder of a Series 2020-1 Note.
“Series 2020-1 Notes”. The Series of notes issued pursuant to the terms of this Supplement.
The Series 2020-1 Notes are issued in two Classes: Class A Notes and Class B Notes.
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“Series 2020-1 Redemption Account”. The non-interest bearing restricted cash account trust
account maintained pursuant to Section 304.
“Series 2020-1 Related Documents”. means any and all of the Indenture, this Supplement, the
Series 2020-1 Notes, the Management Agreement, the Contribution and Sale Agreement, the Series 2020-1 Note Purchase Agreement, the Manager Transfer Facilitator Agreement, and any and all other agreements, documents and instruments executed and
delivered by or on behalf or in support of the Issuer with respect to the issuance and sale of the Series 2020-1 Notes, as any of the foregoing may from time to time be amended, modified, supplemented or renewed.
“Series 2020-1 Required Overcollateralization Percentage”. As of any date of determination,
an amount equal to (a) one hundred percent (100%), minus (b) the Class B Advance Rate, plus (c) the Series 2020-1 Excess Concentration Percentage.
“Series 2020-1 Restricted Cash Account”. The non-interest bearing trust account established
pursuant to Section 302 of this Supplement.
“Series 2020-1 Restricted Cash Amount”. As of any date of determination, the amount required
to be deposited or maintained in the Series 2020-1 Restricted Cash Account, which shall be equal to the product of (a) nine (9), (b) one-twelfth (1/12), (c) the weighted average (based on unpaid principal balances) of the annual rates of interest
payable by the Issuer on all Class A Notes and all Class B Notes then Outstanding and (d) the then Aggregate Series 2020-1 Note Principal Balance, calculated after giving effect to all principal payments actually paid on all Class A Notes and all
Class B Notes on such date.
“Series 2020-1 Revenue Reserve Account”. The non-interest bearing trust account of that name established in accordance with Section 309 of this Supplement.
“Series 2020-1 Revenue Reserve Deposit Amount”. Ten Million, Three Hundred Ninety-Four Thousand, Eight Hundred Ninety-Four Dollars, and Seventy-Nine Cents
($10,394,894.79).
“Series 2020-1 Revenue Reserve Release Amount”. On the Determination Date occurring in October 2020, Ten Million, Three Hundred Ninety-Four Thousand, Eight
Hundred Ninety-Four Dollars, and Seventy-Nine Cents ($10,394,894.79).
“Series 2020-1 Series Account”. The non-interest bearing trust account of that name
established in accordance with Section 301 herein.
“Series 2020-1 Supplement”. This Supplement, dated as of September 9, 2020, entered into by
and between the Issuer and the Indenture Trustee, pursuant to which the Series 2020-1 Notes will be issued.
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“Series 2020-1 Specific Collateral” and “Series Specific
Collateral for Series 2020-1”. These terms shall have the meanings set forth in Section 208 hereto.
“Series-Specific Event of Default”. Shall have the meaning set forth in Section 403 hereto.
“Shareholders’ Equity”. As of any date of determination, the consolidated
shareholders’ equity of CAI and its Subsidiaries as of that date determined in accordance with GAAP.
“Supplemental Principal Payment Amount”. With respect to Series 2020-1, the Class A
Supplemental Principal Payment Amount and the Class B Supplemental Principal Payment Amount.
“Targeted Defaulted Lease Account Balance”. As of any date of determination, an amount equal to the excess (but not less than zero) of:
(A) the Excess Defaulted Lessee Balance on such date of determination, minus
(B) an amount equal to the sum of (1) the amount of cash and Eligible Investments on deposit in the Series 2020-1 Defaulted Lease Account on such date of determination, and (2) an amount
equal to excess of (x) the then Series 2020-1 Asset Base, over (y) an amount equal to the sum of (AA) the product of (aa) the Class B Advance Rate and (bb) the product of (i) the Series 2020 1 Asset Allocation Percentage and (ii) the Aggregate Net
Book Value, plus (BB) the amount of cash and Eligible Investment on deposit in the Series 2020-1 Restricted Cash Account and the Series 2020-1 L/C Cash Account, plus (CC) the Aggregate Available Amount.
“Term Lease”. Any Lease other than a Finance Lease.
“Unrecovered Container”. Each Managed Container this is, or was on, lease to a Delinquent Bankrupt Lessee and such Managed Container has not been returned to
(i) the Manager or Sub-Manager, (ii) a depot contracted by the Manager or Sub-Manager, or (iii) a location or designee specified by the Manager or the Sub-Manager.
An Unrecovered Container shall be re-classified as an Eligible Container (assuming that such Unrecovered Container complies with the requirements set forth in the definition of “Eligible Container”)
upon the return of such Managed Container as set forth in the immediately preceding paragraph.
An Unrecovered Container shall be classified as having been the subject of a Casualty Loss once the Manager or the Sub-Manager has determined, in accordance with its normal business practice, that
(i) such Container will not be recovered by the Manager or the Sub-Manager, or (ii) the cost of recovering such Container and discharging an liens thereon would exceed the value of such Container.
“Unrestricted Book-Entry Notes”. The Unrestricted Book-Entry Notes substantially in the form
of Exhibit A-3.
“U.S. Person”. This term has the meaning set forth in Regulation S.
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“Weighted Average Age”. For any date of determination shall be equal to the quotient of (A)
the sum of the products of (i) the age in years (determined from the date of the initial sale thereof by the manufacturer) of each Managed Container being evaluated, multiplied by (ii) the Net Book Value of such Managed Container being evaluated,
divided by (B) the sum of the Net Book Values of all Managed Containers being evaluated.
(b) Capitalized terms used herein and not otherwise defined shall have the meaning set forth in the Indenture or, if not defined therein, as defined in the Series 2020-1 Note Purchase
Agreement, or, if not defined therein, as defined in the Management Agreement.
(c) References in this Supplement and any other Series 2020-1 Related Document to any section of the Uniform Commercial Code or the UCC shall mean, on or after the effective date of adoption
of any revision to the Uniform Commercial Code or the UCC in the applicable jurisdiction, such revised or successor section thereto.
ARTICLE II
Creation of the Series 2020-1 Notes
Creation of the Series 2020-1 Notes
Section 201. Designation. ii) There is hereby created a Series of Notes to be issued in two Classes pursuant to the Indenture and this Supplement to be known as (i) “$715,900,000
Fixed Rate Asset-Backed Notes, Series 2020-1, Class A”, and (ii) “$26,800,000 Fixed Rate Asset-Backed Notes, Series 2020-1, Class B”. The Class A Notes will be issued in the initial principal balance of Seven Hundred Fifteen Million, Nine Hundred
Thousand Dollars ($715,900,000), and the Class B Notes will be issued in the initial principal balance of Twenty-Six Million Eight Hundred Thousand Dollars ($26,800,000). The Series 2020-1 Notes will not have
priority over any other Series, except to the extent set forth in the Supplement for such other Series. The Class A Notes are the Senior Notes and senior Class of Series 2020-1, and the Class B Notes are the Subordinate Notes and the
subordinate Class of Series 2020-1.
(b) Payments of principal on the Series 2020-1 Notes shall be payable from funds on deposit in the Series 2020-1 Series Account or otherwise at the
times and in the amounts set forth in Article III of the Indenture and Article III of this Supplement.
(c) Each Series 2020-1 Note is classified as a “Term Note”, as such term is used in the Indenture.
(d) Each of the following terms defined in the Indenture shall have the following meanings with respect to the Series 2020-1 Notes:
(i) The “Asset Allocation Percentage” (as defined in the Indenture) for Series 2020-1 shall be the “Series 2020-1 Asset
Allocation Percentage” (as defined in Section 101(a)).
(ii) The “Available Funds” (as defined in the Indenture) for Series 2020-1 shall be the “Series 2020-1 Available Funds” (as
defined in Section 101(a)).
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(iii) The “Collection Allocation Percentage” (as defined in the Indenture) for Series 2020-1 shall be the “Series 2020-1
Collection Allocation Percentage” (as defined in Section 101(a)).
(iv) The “Excess Concentration Percentage” (as defined in the Indenture) for Series 2020-1 shall be the “Series 2020-1 Excess
Concentration Percentage” (as defined in Section 101(a)).
(v) The “Expected Final Payment Date” (as defined in the Indenture) for Series 2020-1 shall be the “Series 2020-1 Expected Final
Payment Date” (as defined in Section 101(a)).
(vi) The “Invested Amount” (as defined in the Indenture) for Series 2020-1 shall be the “Series 2020-1 Invested Account” (as
defined in Section 101(a)).
(vii) The “Legal Final Payment Date” (as defined in the Indenture) for Series 2020-1 shall be the “Series 2020-1 Legal Final
Payment Date” (as defined in Section 101(a)).
(viii) The initial “Payment Date” (as defined in the Indenture) for Series 2020-1 shall be October 26, 2020.
(ix) The “Series 2020-1 Redemption Account” for Series 2020-1, shall be the account established pursuant to Section 304.
(x) The “Rating Agency” for Series 2020-1, as such term is used in the Indenture, shall be S&P Global Ratings.
(xi) The initial “Record Date” (as defined in the Indenture) for Series 2020-1 shall be the Closing Date.
(xii) The “Related Documents” (as defined in the Indenture) for Series 2020-1 shall be the “Series 2020-1 Related Documents” (as
defined in Section 101(a)).
(xiii) The “Required Overcollateralization Percentage” (as defined in the Indenture) for Series 2020-1 shall be the “Series 2020-1
Required Overcollateralization Percentage” (as defined in Section 101(a)).
(xiv) The “Required Payments” (as defined in the Indenture) for Series 2020-1 is the Required Payment (as defined in Section 101(a)).
(xv) The “Restricted Cash Account” (as defined in the Indenture) for Series 2020-1 shall be the “Series 2020-1 Restricted Cash
Account” (as defined in Section 101(a)).
(xvi) The “Restricted Cash Amount” (as defined in the Indenture) for Series 2020-1 shall be the “ Series 2020-1 Restricted Cash
Amount” (as defined in Section 101(a)).
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(xvii) The “Series Account” (as defined in the Indenture) for Series 2020-1 shall be the “Series 2020-1 Series Account” (as defined
in Section 101(a)).
(xviii) The “Shared Available Funds” (as defined in the Indenture) for Series 2020-1 shall be the
“Series 2020-1 Available Funds” (as defined in Section 101(a)).
(e) In the event that any term or provision contained herein shall conflict with or be inconsistent with any term or provision contained in the
Indenture, the terms and provisions of this Supplement shall govern.
Section 202. Authentication and Delivery.
(a) On the Closing Date, the Issuer shall sign, and shall direct the Indenture Trustee in writing pursuant to Section 204 of the Indenture to duly
authenticate, and the Indenture Trustee, upon receiving such direction, shall authenticate, subject to compliance with the conditions precedent set forth in Section 501, the Series 2020-1 Notes in accordance
with such written directions.
(b) In accordance with Section 202 of the Indenture, the Series 2020-1 Notes sold in reliance on Rule 144A shall be represented by one or more 144A
Book-Entry Notes. Any Series 2020-1 Notes sold in reliance on Regulation S shall be represented by one or more Regulation S Book-Entry Notes. Any Series 2020-1 Notes sold to Institutional Accredited Investors or other Persons that are not Qualified
Institutional Buyers or Permitted Non-U.S. Persons shall be represented by one or more Definitive Notes.
(c) The Series 2020-1 Notes shall be executed by manual or facsimile signature on behalf of the Issuer by any officer of the Issuer and shall be
substantially in the forms of Exhibit A-1, A-2, A-3 and A-4.
(d) The Series 2020-1 Notes shall be issued in minimum denominations of $250,000 and in integral multiples of $1,000 in excess thereof.
Section 203. Interest Payments on the Series 2020-1 Notes.
(a) Interest on Series 2020-1 Notes. Interest will accrue on the Class A Notes during each Interest Accrual Period and will be due and
payable in arrears on each Payment Date in an amount equal to the Class A Note Interest Payment, plus, to the extent applicable, Additional Interest pursuant to Section 203(b). Interest will accrue on the Class B Notes during each Interest Accrual
Period and be due and payable in arrears on each Payment Date in an amount equal to the Class B Note Interest Payment, plus, to the extent applicable, Additional Interest pursuant to Section 203(b). Interest on the Class A Notes and the Class B
Notes shall (i) be calculated on the basis of a year consisting of twelve thirty (30) day months, (ii) be due and payable on each Payment Date, and (iii) be payable
from the Series 2020-1 Series Account in accordance with Section 302 of the Indenture and in accordance with Section 305 hereof. Payment of the Class B Note Interest Payment due on each Payment Date will be subordinated to payment in full of the
Class A Note Interest Payment due on such Payment Date in accordance with the priority of payments set forth in Section 305 of this Supplement.
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(b) Additional Interest. If the principal balance of, and all accrued interest on, all of the Series 2020-1 Notes is not repaid in full by
the Payment Date in March 2028, each Series 2020-1 Noteholder shall be entitled to receive Additional Interest.
(c) Interest on Overdue Amounts. If the Issuer shall default in the payment of (i) the Unpaid Principal Balance (or any portion of the
principal balance) of all Series 2020-1 Notes on the Series 2020-1 Legal Final Payment Date, (ii) Class A Note Interest Payment on any Payment Date, (iii) any Class B Note Interest Payment on any Payment Date or (iv) following the acceleration of the
Series 2020-1 Notes in accordance with the terms of the Indenture and this Supplement, any other amount owing under the Indenture not covered in clauses (i), (ii) and (iii) which is not paid when due, the Issuer shall, from time to time, pay interest
on such unpaid amounts, to the extent permitted by Applicable Law, at a rate per annum equal to the sum of (x) the interest rate otherwise in effect hereunder plus (y) two percent (2.00%), for the period
during which such principal, interest or other amount shall be unpaid from the due date of such payment to but not including the date of actual payment thereof (after as well as before judgment).
(d) Maximum Interest Rate. In no event shall the interest charged with respect to a Series 2020-1 Note exceed the maximum amount permitted
by Applicable Law. If at any time the interest rate charged with respect to the Series 2020-1 Notes exceeds the maximum rate permitted by Applicable Law, the rate of interest to accrue pursuant to this Supplement and such Series 2020-1 Note shall be
limited to the maximum rate permitted by Applicable Law. If the total amount of interest paid or accrued on the Series 2020-1 Note under the foregoing provisions is less than the total amount of interest that would have accrued if the interest rate
had at all times been in effect, the Issuer agrees to pay to the Series 2020-1 Noteholders an amount equal to the difference between (a) the lesser of (i) the amount of interest that would have accrued if the maximum rate permitted by Applicable Law
had at all times been in effect, or (ii) the amount of interest that would have accrued if the interest rate had at all times been in effect, and (b) the amount of interest accrued in accordance with the other provisions of this Supplement.
Section 204. Principal Payments on the Series 2020-1 Notes.
(a) On each Payment Date, the Issuer will, to the extent that funds are available for such purpose in accordance with Section 305, pay the principal
balance of the Class A Notes in an amount equal to the Class A Scheduled Principal Payment Amount and the Class A Supplemental Principal Payment Amount; provided that if an Early Amortization Event for Series 2020-1 is then continuing or an Event of
Default for Series 2020-1 is then continuing but the Series 2020-1 Notes have not been accelerated in accordance with the provisions of the Indenture, the then unpaid Aggregate Class A Note Principal Balance shall be payable in full to the extent
that funds are available for such purpose in accordance with Section 305.
(b) On each Payment Date, the Issuer will, to the extent that funds are available for such purpose in accordance with Section 305 pay the principal
balance of the Class B Notes in an amount equal to the Class B Scheduled Principal Payment Amount and the Class B Supplemental Principal Payment Amount; provided that if an Early Amortization Event for Series 2020-1 is then continuing or an Event of
Default for Series 2020-1 is then continuing but the Series 2020-1 Notes have not been accelerated in accordance with the provisions of the Indenture, the then unpaid Aggregate Class B Note Principal Balance shall be payable in full to the extent
that funds are available for such purpose in accordance with Section 305.
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(c) Principal payments on the Class B Notes for any Payment Date are subordinated to the payment of principal payments on the Class A Notes for such
Payment Date in accordance with the priority of payments set forth in this Supplement.
(d) The unpaid principal amount of each Series 2020-1 Note together with all unpaid interest, fees, expenses, indemnities, costs and other amounts
payable by the Issuer to the Series 2020-1 Noteholders and the Indenture Trustee pursuant to the terms of the Indenture and this Supplement, shall be due and payable in full on the earlier to occur of (x) the date on which an Event of Default shall
occur and the Series 2020-1 Notes have been accelerated in accordance with the provisions of the Indenture and (y) the Series 2020-1 Legal Final Payment Date.
Section 205. Prepayment of Principal on the Series 2020-1 Notes.
(a) The Issuer will not be permitted to make a voluntary prepayment of all, or a portion, of the principal balance of the Series 2020-1 Notes prior
to the Payment Date occurring in September, 2022. Beginning on the Payment Date in September, 2022, the Issuer will have the option to prepay on any Business Day all, or any portion of, the outstanding principal of the Series 2020-1 Notes, in a
minimum amount of One Hundred Thousand Dollars ($100,000), together with accrued interest on the principal balance being prepaid to the date of such prepayment. Except during the period described above, the Issuer may make voluntary principal
prepayments on: (i) only the Class A Notes, or (ii) the Class A Notes and the Class B Notes simultaneously, provided that (in the case of prepayments of the Class B Notes), so long as the Class A Notes are Outstanding, at the time of any prepayment
of the Class B Notes, and after giving effect thereto, the percentage of the original principal amount of the Class B Notes Outstanding shall be equal to, or greater than, the percentage of the original principal amount of the Class A Notes
Outstanding. However, the foregoing shall not restrict (i) repayments of the Offered Notes as a consequence of a Class A Supplemental Principal Payment Amount or a Class B Supplemental Principal Payment Amount or (ii) prepayments of the Series
2020-1 Notes with funds on deposit in the Series 2020-1 Redemption Account in accordance with Section 304 hereof.
(b) Any optional Prepayments or prepayments from the Series 2020-1 Redemption Account, Supplemental Principal Payment Amounts or accelerated
principal payments received during the continuation of a Series 2020-1 Early Amortization Event will apply to each Class of Series 2020-1 Notes will be applied on each Payment Date on which such type of payment is received to reduce the Scheduled
Targeted Principal Balances of the affected Class of Notes in respect of each subsequent Payment Date by a percentage, the numerator of which is the amount of such Prepayment, Supplemental Principal Payment Amount for such Class, or accelerated
principal payment, and the denominator of which is the Aggregate Class A Note Principal Balance or the Aggregate Class B Note Principal Balance, as the case may be, on such Payment Date (determined without giving effect to such optional Prepayment,
Supplemental Principal Payment Amount for such Class or accelerated payment). The Issuer shall promptly (but in any event within five (5) Business Days after the date on which such payments are made) thereafter recalculate the Scheduled Targeted
Principal Balance of the affected Classes of Notes for each future Payment Date.
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Section 206. Payments of Principal and Interest. All payments of principal and interest on the Series 2020-1 Notes shall be paid to the Series 2020-1 Noteholders reflected in the
Note Register as of the related Record Date by wire transfer of immediately available funds for receipt prior to 11:00 a.m. (New York City time) on the related Payment Date. Any payments received by the Series 2020-1 Noteholders after 11:00 a.m.
(New York City time) on any day shall be considered to have been received on the next succeeding Business Day.
Section 207. Restrictions on Transfer. On the Closing Date, the Issuer shall sell the Series 2020-1 Notes to the Initial Purchasers pursuant to the Series 2020-1 Note Purchase
Agreement and deliver such Series 2020-1 Notes in accordance herewith and therewith. Thereafter, no Series 2020-1 Note may be sold, transferred or otherwise disposed of except in compliance with the provisions of the Indenture and except as follows:
(i) to Persons that take delivery of such Series 2020-1 Note in an amount of at least $250,000 and that the transferring Person
reasonably believes are qualified institutional buyers as defined in Rule 144A (“Qualified Institutional Buyers”) in reliance on the exemption from the registration requirements of the Securities Act provided
by Rule 144A promulgated thereunder (“Rule 144A”);
(ii) to Permitted Non-U.S. Persons that take delivery of such Series 2020-1 Note in an amount of at least $250,000;
(iii) to Institutional Accredited Investors that take delivery of such Series 2020-1 Note in an amount of at least $250,000 and
that deliver to the Indenture Trustee a letter substantially in the form of Exhibit D to the Indenture to the Indenture Trustee; or
(iv) to a Person that is taking delivery of such Series 2020-1 Note in an amount of at least $250,000 and that is otherwise exempt
from the registration requirements of the Securities Act and from any applicable State law securities registration or qualification requirements, as confirmed in an Opinion of Counsel addressed to the Indenture Trustee and the Issuer, which counsel
and opinion are satisfactory to the Indenture Trustee and the Issuer.
The Indenture Trustee shall have no obligations or duties with respect to determining whether any transfers of the Series 2020-1 Notes are made in accordance with the Securities Act or any other law.
Each purchaser (other than any Initial Purchaser) of the Series 2020-1 Notes (including any purchaser, other than any Initial Purchaser, of an interest in the Series 2020-1 Notes which are Book-Entry Notes) shall be
deemed to have acknowledged and agreed as follows:
(v) It is (A) Qualified Institutional Buyer and is acquiring such Series 2020-1 Notes for its own institutional account or for
the account or accounts of a Qualified Institutional Buyer or (B) purchasing such Series 2020-1 Notes in a transaction exempt from registration under the Securities Act and in compliance with the provisions of this Supplement and in compliance with
the legend set forth in Section 207(b)(v) below or (C) not a U.S. Person and is acquiring such Series 2020-1 Notes outside of the United States.
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(vi) It is purchasing one or more Series 2020-1 Notes in an amount of at least $250,000 and it understands that such Series
2020-1 Notes may be resold, pledged or otherwise transferred only in an amount of at least $250,000.
(vii) It represents and warrants to the Initial Purchasers, Issuer and the Indenture Trustee, that either (i) it is not acquiring
and will not hold the Series 2020-1 Note with the plan assets of a Plan or any other plan that is subject to any federal, state, local, or other laws or regulations comparable to Title I of ERISA and Section 4975 of the Code (“Similar Law”) or (ii) (a) the Series 2020-1 Notes are rated investment grade or better and have not been characterized as other indebtedness for applicable local law purposes and (b) the acquisition, holding and
disposition of the Series 2020-1 Note will not give rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or Similar Law;
(viii) It understands that the Series 2020-1 Notes are being transferred to it in a transaction not involving any public offering
within the meaning of the Securities Act, and that, if in the future it decides to resell, pledge or otherwise transfer any Series 2020-1 Notes, such Series 2020-1 Notes may be resold, pledged or transferred only in accordance with applicable state
securities laws and (1) in a transaction meeting the requirements of Rule 144A, to a Person that the seller reasonably believes is a Qualified Institutional Buyer that purchases for its own account (or for the account or accounts of a Qualified
Institutional Buyer) and to whom notice is given that the resale, pledge or transfer is being made in reliance on Rule 144A, or (2) (A) to a Person that is an Institutional Accredited Investor, is taking delivery of such Series 2020-1 Notes in an
amount of at least $250,000, and delivers to the Indenture Trustee a letter substantially in the form of Exhibit D to the Indenture or (B) to a Person that is taking delivery of such Series 2020-1 Notes pursuant to a transaction that is otherwise
exempt from the registration requirements of the Securities Act and from any applicable state law securities registration or qualification requirements, as confirmed in an Opinion of Counsel addressed to the Indenture Trustee, the Issuer and the
transferor, which counsel and Opinion are satisfactory to the Indenture Trustee, the Issuer and the transferor, or (3) in an offshore transaction in accordance with Rule 903 or 904 of Regulation S.
(ix) It understands that each Series 2020-1 Note shall bear a legend substantially to the following effect:
[For Book-Entry Notes Only: UNLESS THIS SERIES 2020-1 NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION (“DTC”), TO THE TRANSFEROR OF SUCH SERIES 2020-1 NOTE (THE “TRANSFEROR”) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SERIES 2020-1 NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR THE USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]
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THIS SERIES 2020-1 NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THE HOLDER HEREOF, BY PURCHASING THIS SERIES 2020-1 NOTE, AGREES THAT SUCH SERIES 2020-1 NOTE MAY BE RESOLD, PLEDGED OR TRANSFERRED ONLY IN ACCORDANCE WITH ANY
APPLICABLE STATE SECURITIES LAWS AND (1) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON THAT TAKES
DELIVERY OF SUCH SERIES 2020-1 NOTE IN AN AMOUNT OF AT LEAST $250,000 AND THAT THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT (OR FOR THE ACCOUNT OR ACCOUNTS OF A QUALIFIED INSTITUTIONAL
BUYER) AND TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (2) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT WITH SUCH SERIES
2020-1 NOTE IN AN AMOUNT OF AT LEAST $250,000 OR (3) TO A PERSON (A) THAT IS AN INSTITUTIONAL “ACCREDITED INVESTOR,” WITHIN THE MEANING OF RULE 501(A)(1), (2),
(3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT, IS TAKING DELIVERY OF SUCH SERIES 2020-1 NOTE IN AN AMOUNT OF AT LEAST $250,000 AND DELIVERS TO THE INDENTURE TRUSTEE A LETTER SUBSTANTIALLY IN THE FORM OF EXHIBIT B TO THE INDENTURE OR
(B) THAT IS TAKING DELIVERY OF SUCH SERIES 2020-1 NOTE IN AN AMOUNT OF AT LEAST $250,000 PURSUANT TO A TRANSACTION THAT IS OTHERWISE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND FROM ANY APPLICABLE STATE LAW SECURITIES
REGISTRATION OR QUALIFICATION REQUIREMENTS, AS CONFIRMED IN AN OPINION OF COUNSEL ADDRESSED TO THE INDENTURE TRUSTEE AND THE ISSUER, WHICH COUNSEL AND OPINION ARE SATISFACTORY TO THE ISSUER AND THE INDENTURE TRUSTEE.
EACH PURCHASER AND TRANSFEREE (AND ITS FIDUCIARY, IF APPLICABLE) OF A NOTE (OR INTEREST HEREIN) WILL BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (I) IT IS NOT ACQUIRING AND WILL NOT HOLD THE NOTE
WITH THE PLAN ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), WHICH IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, A “PLAN” DESCRIBED IN AND SUBJECT TO
SECTION 4975OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” OF ANY OF THE FOREGOING BY REASON OF AN EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN SUCH ENTITY (EACH OF THE
FOREGOING, A “BENEFIT PLAN”) OR ANY OTHER PLAN THAT IS SUBJECT TO A LAW THAT IS SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE OR (II) (A) THE SERIES 2018-2 NOTES ARE RATED INVESTMENT GRADE OR BETTER AND HAVE NOT BEEN CHARACTERIZED AS OTHER
THAN INDEBTEDNESS FOR APPLICABLE LOCAL LAW PURPOSES AND (B) THE ACQUISITION, HOLDING AND DISPOSITION OF THE NOTE WILL NOT GIVE RISE TO A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA, SECTION 4975 OF THE CODE OR A VIOLATION OF ANY
SIMILAR APPLICABLE LAW.
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THIS SERIES 2020-1 NOTE IS NOT GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.
(x) Each Series 2020-1 Noteholder that is a Permitted Non-U.S. Person described in Section
207(b)(i)(C) understands that the Series 2020-1 Notes have not and will not be registered under the Securities Act, that any offers, sales or deliveries of the Series 2020-1 Notes purchased by it in the United States or to U.S. Persons
prior to the date that is 40 days after the later of (i) the commencement of the distribution of the Series 2020-1 Notes and (ii) the Closing Date, may constitute a violation of United States law, and that distributions of principal and interest will
be made in respect of such Series 2020-1 Notes only following the delivery by the holder of a certification of non-U.S. beneficial ownership or the exchange of beneficial interest in Regulation S Temporary Book-Entry Notes for beneficial interests in
the related Unrestricted Book-Entry Notes (which in each case will itself require a certification of non-U.S. beneficial ownership), at the times and in the manner set forth in this Supplement.
(xi) The Regulation S Temporary Book-Entry Notes representing the Series 2020-1 Notes sold to each Series 2020-1 Noteholder that is
a Permitted Non-U.S. Person described in Section 207(b)(i)(C) will bear a legend to the following effect, unless the Issuer determines otherwise consistent with Applicable Law:
[FOR REGULATION S BOOK-ENTRY NOTES ONLY: THIS SERIES 2020-1 NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”) AND, PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF (I) THE COMPLETION OF THE DISTRIBUTION
OF THE SERIES 2020-1 NOTES AND (II) THE CLOSING DATE, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.]
(xii) The Issuer shall not permit the transfer of any Series 2020-1 Notes unless such transfer complies with the terms of the
foregoing legends and, in the case of a transfer (i) to an Institutional Accredited Investor (other than a Qualified Institutional Buyer), the transferee delivers to the Indenture Trustee a letter substantially in the form of Exhibit D to the
Indenture, or (ii) to a Person other than a Qualified Institutional Buyer, an Institutional Accredited Investor or a Permitted Non-U.S. Person, upon delivery of an Opinion of Counsel satisfactory to the Indenture Trustee and the applicable
transferor, to the effect that the transferee is taking delivery of the Series 2020-1 Notes in a transaction that is otherwise exempt from the registration requirements of the Securities Act and from any applicable state law securities registration
or qualification requirements.
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The applicable transferor and transferee shall execute and deliver, or in the case of a Series 2020-1 Noteholder, is deemed to have executed and delivered, to the Indenture Trustee documentation in substantially the
forms of (i) Exhibit(s) B through F hereto or (ii) Exhibit D to the Indenture, as appropriate, in connection with any transfer
of Series 2020-1 Notes. The foregoing transfer restriction shall supersede the transfer restriction set forth in Section 205 of the Indenture.
Section 208. Grant of Security Interest.
(a) In order to secure and provide for the repayment and payment of the Series 2020-1 Notes, the Issuer hereby grants a security interest to the
Indenture Trustee, for the benefit of the Series 2020-1 Noteholders, in all of the Issuer’s right, title and interest in and to the following (whether existing or accrued after the Closing Date): (i) the Series 2020-1 Restricted Cash Account, the
Series 2020-1 Defaulted Lease Account, the Series 2020-1 Redemption Account, the Series 2020-1 L/C Cash Account, the Series 2020-1 Revenue Reserve Account and the Series 2020-1 Series Account; (ii) all funds on deposit Series 2020-1 Restricted Cash
Account, the Series 2020-1 Defaulted Lease Account, the Series 2020-1 Redemption Account, the Series 2020-1 L/C Cash Account, the Series 2020-1 Revenue Reserve Account and Series 2020-1 Series Account and all Securities Entitlements credited thereto
from time to time; (iii) all investments made at any time and from time to time with monies in the Series 2020-1 Restricted Cash Account, the Series 2020-1 Defaulted Lease Account, the Series 2020-1 Redemption Account, the Series 2020-1 L/C Cash
Account, the Series 2020-1 Revenue Reserve Account and the Series 2020-1 Series Account, whether constituting securities, instruments, general intangibles, investment property, financial assets or other property; (iv) all interest, dividends, cash,
instruments and other property from time to time received, receivable or otherwise distributed in respect of, or in exchange for, such Series 2020-1 Restricted Cash Account, the Series 2020-1 L/C Cash Account, the Series 2020-1 Defaulted Lease
Account, the Series 2020-1 Redemption Account, the Series 2020-1 Revenue Reserve Account and the Series 2020-1 Series Account, the funds on deposit therein from time to time or the investments made with such funds; and (v) all proceeds of any and all
of the foregoing, including, without limitation, cash (the property described in clause (i) through (v) collectively, the “Series 2020-1 Specific Collateral” or the “Series
Specific Collateral for Series 2020-1”). The Indenture Trustee shall possess all right, title and interest in and to all funds on deposit from time to time in the Series 2020-1 Restricted Cash Account, the Series 2020-1 Defaulted Lease
Account and the Series 2020-1 Series Account, the Series 2020-1 L/C Cash Account, the Series 2020-1 Revenue Reserve Account, the Series 2020-1 Redemption Account and in all proceeds thereof, and shall be the only person authorized to originate
Entitlement Orders with respect thereto. No other Series of Notes shall have interest in the Series-Specific Collateral for Series 2020-1. The Series 2020-1 Control Party shall direct the exercise of remedies regarding the Series-Specific
Collateral for Series 2020-1.
(b) The Issuer hereby irrevocably authorizes the Manager and the Indenture Trustee at any time, and from time to time, to file in any filing office
in any UCC jurisdiction any financing statements with respect to the foregoing, including financing statements claiming a security interest in the Series 2020-1 Specific Collateral; provided, however, that neither the Manager nor the Indenture
Trustee shall have any responsibility or liability for or with respect to the perfection of any security interest.
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(c) In furtherance of the foregoing, the Issuer hereby grants, assigns, conveys, mortgages, pledges, charges, hypothecates and transfers to the
Indenture Trustee, for the benefit of the Series 2020-1 Noteholders, a floating charge over all of the Series 2020-1 Specific Collateral.
(d) Upon the occurrence of a Series-Specific Event of Default, the Series 2020-1 Control Party shall direct the exercise of remedies with respect to
the Series 2020-1 Specific Collateral.
ARTICLE III
Series 2020-1 Series Account and
Allocation and Application of Amounts Therein
Series 2020-1 Series Account and
Allocation and Application of Amounts Therein
Section 301. Series 2020-1 Series Account. The Issuer has established and maintains at the Corporate Trust Office at the Indenture Trustee, in the name of the Issuer, the Series
2020-1 Series Account, which Series 2020-1 Series Account has been pledged to the Indenture Trustee for the benefit of the Series 2020-1 Noteholders pursuant to the Indenture and this Supplement. All deposits of funds by, or for the benefit of, the
Series 2020-1 Noteholders from the Trust Account and the Excess Funding Account, shall be accumulated in, and withdrawn from, the Series 2020-1 Series Account in accordance with the provisions of the Indenture and this Supplement. Any funds on
deposit in the Series 2020-1 Series Account shall be invested in accordance with the provisions of Section 303 of the Indenture.
Section 302. Series 2020-1 Restricted Cash Account.
(a) The Issuer has established and maintains at the Corporate Trust Office of the Indenture Trustee, in the name of the Issuer, the Series 2020-1
Restricted Cash Account, which Series 2020-1 Restricted Cash Account has been pledged to the Indenture Trustee for the benefit of the Holders of the Series 2020-1 Notes. On the Issuance Date for the Series 2020-1 Notes, the Issuer will have
deposited, or have caused to be deposited, cash and/or Eligible Investments having a value of not less than the Series 2020-1 Restricted Cash Amount in the Series 2020-1 Restricted Cash Account. Thereafter, additional amounts will be deposited in
the Series 2020-1 Restricted Cash Account in accordance with Section 305 of this Supplement. Any and all monies on deposit in the Series 2020-1 Restricted Cash Account shall be invested in Eligible Investments in accordance with Section 303 of the
Indenture and shall be distributed in accordance with this Supplement.
(b) On each Payment Date, the Indenture Trustee shall, in accordance with the priority set forth in Section 305, transfer from the Series 2020-1
Series Account to the Series 2020-1 Restricted Cash funds in an amount necessary to restore the balance of cash and Eligible Investments on deposit in the Series 2020-1 Restricted Cash Account to an amount equal to the Series 2020-1 Restricted Cash
Amount for such Payment Date.
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(c) On each Determination Date, the Indenture Trustee will, in accordance with the Manager Report (or, in the absence of any Manager Report, in
accordance with written instructions from the Series 2020-1 Control Party), withdraw from the Series 2020-1 Restricted Cash Account an amount equal to the Permitted Payment Date Withdrawals (determined after giving effect to all other deposits to the
Series 2020-1 Series Account (other than funds transferred from the Series 2020-1 Restricted Cash Account)) on or prior to such Determination Date. Such amounts may only be used to pay amounts specified in the definition of “Permitted Payment Date
Withdrawals”. If there are insufficient funds in the Series 2020-1 Restricted Cash Account to fully fund the Permitted Payment Date Withdrawal, payments will be paid to the Class A Noteholders and the Class B Noteholders in the same priority as the
priority of payments from the Series 2020-1 Series Account.
(d) Notice of each such drawing will be delivered to the Manager, by hand delivery or facsimile transmission (or, if applicable, included in the
respective Manager Report delivered to the Indenture Trustee). Any such funds actually received by the Indenture Trustee pursuant to Section 302(c) shall be used solely to make payments of the Class A Note
Interest Payments, Class B Note Interest Payments or payment of the Unpaid Principal Balance, as the case may be.
(e) On each Payment Date, the Indenture Trustee shall, in accordance with the Manager Report (or in the absence of any Manager Report, in accordance
with written instructions from the Series 2020-1 Control Party), deposit in the Series 2020-1 Series Account for distribution in accordance with this Supplement the excess, if any, of (i) the amounts then on deposit in the Series 2020-1 Restricted
Cash Account (after giving effect to any withdrawals therefrom on such Payment Date), over (ii) an amount equal to the Series 2020-1 Restricted Cash Amount for such Payment Date. On the Series 2020-1 Legal Final Payment Date or, at the direction of
the Control Party upon the occurrence of an Event of Default for Series 2020-1, any remaining funds in the Series 2020-1 Restricted Cash Account will be deposited in the Series 2020-1 Series Account and be distributed in accordance with this
Supplement.
(f) If on any Payment Date the aggregate amount of cash and Eligible Investments then on deposit in the Series 2020-1 Restricted Cash Account is
equal to, or greater than, the Aggregate Series 2020-1 Note Principal Balance and accrued interest thereon, the Indenture Trustee shall, in accordance with the Manager Report (or, in the absence of any Manager Report, in accordance with the written
direction of the Series 2020-1 Control Party), prepay in full on such Payment Date the then Unpaid Principal Balance of, and accrued interest on, all Series 2020-1 Notes.
(g) The Issuer shall have the option to satisfy a portion of the Series 2020-1 Restricted Cash Amount by the delivery to the Indenture Trustee of one
or more Eligible Letters of Credit from Eligible Bank(s). At least one-ninth of the Series 2020-1 Restricted Cash Amount must be in the form of cash and Eligible Investments on deposit in the Series 2020-1 Restricted Cash Account. Such cash and
Eligible Investments will be drawn upon before any draw is made on a Letter of Credit. Such Eligible Letter of Credit shall have Aggregate Available Amounts equal to the portion of the Series 2020-1 Restricted Cash Amount not held in the Series
2020-1 Restricted Cash Account. The Issuer shall give written notice to the Rating Agency prior to delivering on such Letter of Credit.
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Section 303. Series 2020-1 Defaulted Lease Account.
(a) The Issuer has established and maintains at the Corporate Trust Office of the Indenture Trustee, in the name of the Issuer, the Series 2020-1
Defaulted Lease Account, which Series 2020-1 Defaulted Lease Account has been pledged to the Indenture Trustee for the benefit of the Holders of the Series 2020-1 Notes. Any and all monies on deposit in the Series 2020-1 Defaulted Lease Account
shall be invested in Eligible Investments in accordance with Section 303 of the Indenture and shall be distributed in accordance with this Supplement.
(b) On each Payment Date, the Indenture Trustee shall, in accordance with the priority of payments set forth in Section 305, transfer from the
Series 2020-1 Series Account to the Series 2020-1 Defaulted Lease Account funds in an amount to bring the balance of cash and Eligible Investments on deposit therein to the Targeted Series 2020-1 Defaulted Lease Account Balance (if any).
(c) On each Payment Date on which no Early Amortization Event for Series 2020-1 nor an Event of Default for Series 2020-1 is then continuing, the
Indenture Trustee shall, in accordance with the Manager Report (or in the absence of any Manager Report, in accordance with written instructions from the Series 2020-1 Control Party), deposit in the Series 2020-1 Series Account for distribution in
accordance with this Supplement the excess, if any, of (i) the amounts then on deposit in the Series 2020-1 Defaulted Lease Account, over (ii) an amount equal to the Targeted Defaulted Lease Account Balance for such Payment Date.
(d) On the Series 2020-1 Legal Final Payment Date or, at the direction of the Control Party upon the occurrence of an Event of Default for Series
2020-1, any funds in the Series 2020-1 Series 2020-1 Defaulted Lease Account will be deposited in the Series 2020-1 Series Account and be distributed in accordance with the terms of this Supplement.
Section 304. Series 2020-1 Redemption Account.
(a) The Issuer has established and maintains at the Corporate Trust Office of the Indenture Trustee, in the name of the Issuer, the Series 2020-1
Redemption Account which Series 2020-1 Series 2020-1 Redemption Account has been pledged to the Indenture Trustee for the benefit of the Series 2020-1 Noteholders pursuant to the Indenture and this Supplement. The Redemption Account is a special
restricted cash account that is to be held and disbursed pursuant to this Section 304 rather than Section 302. On the Issuance Date for the Series 2020-1 Notes, the Issuer will deposit, or cause to be deposited, into the Series 2020-1 Redemption
Account the entire proceeds of the sale of the Series 2020-1 Notes. Any and all monies on deposit in the Series 2020-1 Redemption Account shall be invested in Eligible Investments in accordance with Section 303 of the Indenture and shall be
distributed in accordance with this Supplement.
(b) So long as no Series-Specific Event of Default or Trust Event of Default (collectively, an “Event of Default”) has occurred and then be
continuing,
(A) on the Payment Date in September, 2020, the Indenture Trustee will, in accordance with the Manager Report (which the Indenture Trustee shall rely on to confirm absence of an Event of Default) or,
in the absence of any Manager Report, in accordance with the written direction of the Series 2020-1 Control Party, withdraw from the Series 2020-1 Redemption Account and pay to the trustee for the CAL Funding III Series 2017-1 and 2018-1 Notes and to
the CAL Revolver Administrative Agent the amount purchase price of the Managed Containers being purchased by Issuer from CAL Funding III and from CAL pursuant to Contribution and Sale Agreements between the Issuer and each of such Sellers,
respectively, to be purchased on such Payment Date; and
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(B) on the Payment Date in October 2020, the Indenture Trustee will, in accordance with the Manager Report (or, in the absence of any Manager Report, in accordance with the written direction of the
Series 2020-1 Control Party) withdraw from the Series 2020-1 Redemption Account and:
(i) pay to the trustee for the CAL Funding III Series 2018-2 Notes and CAL Revolver Administrative Agent the amount purchase price of the Managed Containers being purchased by Issuer from CAL Funding
III and from CAL pursuant to Contribution and Sale Agreements between Issuer and each of such Sellers, respectively, to be purchased on such Payment Date;
(ii) pay to the Indenture Trustee as a principal prepayment, without prepayment premium, in an amount not to exceed $5,000,000 as a Class A Supplemental Principal Payment Amount or Class B
Supplemental Principal Payment Amount, as the case may be; and
(iii) if (y) the Series 2020-1 Adjusted Asset Base, exceeds (z) the Aggregate Series 2020-1 Note Principal Balance, distribute funds to Issuer in an amount not to exceed the amount of such excess.
(c) If, after giving effect to the distributions from the Series 2020-1 Redemption Account described in Section 304(b), any portion of the funds on
deposit in the Series 2020-1 Redemption Account on the Payment Date in October 2020 remain in the Series 2020-1 Redemption Account, the Series 2020-1 Notes will be redeemed (a “Mandatory Special Redemption”) in
part on such Payment Date. The aggregate amount of the remaining funds in the Series 2020-1 Redemption Account will be applied to: (y) a prepayment of principal of the Series 2020-1 Notes to be redeemed in the Mandatory Special Redemption (such
amount, the “Mandatory Special Redemption Principal Amount”); and (z) a prepayment premium of one-half of one percent (.50%) of the Mandatory Special Redemption Principle Amount (the “Prepayment Premium”), so that after application of the remaining proceeds to pay the Mandatory Special Redemption Principal Amount and the Prepayment Premium, the Indenture Trustee shall have disbursed all funds in the Series 2020-1
Redemption Account.
Section 305. Distributions from Series 2020-1 Series Account. On each Payment Date, the Indenture Trustee, based on the information contained in the Manager Report (or, in the
absence of any Manager Report, in accordance with the written direction of the Series 2020-1 Control Party), is required to make payments from the Series 2020-1 Available Funds then on deposit in the Series 2020-1 Series Account. The calculation and
relative priorities of such specified payments will vary depending on whether an Early Amortization Event for Series 2020-1 or an Event of Default for Series 2020-1 has occurred and is continuing on such Payment Date. The alternative payment
priorities for each Payment Date are set forth below:
(I) If neither an Early Amortization Event for Series 2020-1 nor an Event of Default for Series 2020-1 shall then be continuing:
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(1) To the Indenture Trustee, an amount equal to the sum of (A) the Indenture Trustee’s Fees then due and payable for the Series 2020-1 Notes (subject to, in the case of expenses and
indemnities only, a per annum dollar limitation of $40,000) and (B) an amount equal to the product of (i) the Series 2020-1 Asset Allocation Percentage and (ii) any amounts payable to the Indenture Trustee on such Payment Date in accordance with a
specified provision of the Indenture regarding enforcement of the obligations of the Issuer under the Indenture; provided, however, that to the extent that the amounts in clause (B) have been incurred solely with respect to Series 2020-1, such
amounts will be paid by Series 2020-1 and will not be divided among the Series according to the Asset Allocation Percentages;
(2) To the Manager, an amount equal to the sum of (i) an amount equal to the Series 2020-1 Management Fee then due and payable with respect to the Series 2020-1 Notes, and (ii) the amount of
any Management Fee Arrearage then due and payable with respect to the Series 2020-1 Notes;
(3) To the Manager, an amount equal to the product of (i) the Series 2020-1 Asset Allocation Percentage and (ii) any unreimbursed Manager Advances made in accordance with the terms of the
Management Agreement;
(4) To each of the following on a pro rata basis: (A) to the Manager Transfer Facilitator, an amount equal to the product of (x) Manager Transfer Facilitator Fees, expenses and indemnities
(subject to, in the case of expenses and indemnities only, a per annum dollar limitation of $40,000) and (y) the Series 2020-1 Asset Allocation Percentage of any amounts incurred by the Manager Transfer Facilitator, including those related to the
actual transfer from the Manager to the Back-up Manager, and (B) to Back-up Manager, an amount equal to the product of (i) the Series 2020-1 Asset Allocation Percentage and (ii) any Back-Up Manager fees then due and payable;
(5) To the Independent Management Provider, an amount equal to the product of (i) the Series 2020-1 Asset Allocation Percentage and (ii) that portion of the Independent Management Provider
Fee then owing;
(6) To the Persons entitled thereto, the Issuer Expenses then due and payable, so long as the aggregate amount paid pursuant to this clause (6) in any calendar year would not exceed an
amount equal to the product of (i) the Series 2020-1 Asset Allocation Percentage and (ii) Fifty Thousand Dollars ($50,000) in aggregate;
(7) To each Holder of a Class A Note on the immediately preceding Record Date, on a pro rata basis, an amount equal to its Percentage of the Class A Note Interest Payment (exclusive of
Additional Interest on the Class A Notes) for such Payment Date;
(8) To each Holder of a Class B Note on the immediately preceding Record Date, on a pro rata basis, an amount equal to its Percentage of the Class B Note Interest Payment (exclusive of
Additional Interest on the Class B Notes) for such Payment Date;
(9) To each Letter of Credit Bank, on a pro rata basis (based on amounts owed), in reimbursement of unpaid Letter of Credit Fees then due and payable;
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(10) To the Series 2020-1 Restricted Cash Account, an amount sufficient so that the total amount on deposit in the Series 2020-1 Restricted Cash Account is equal to the Series 2020-1
Restricted Cash Amount for such Payment Date;
(11) To each Letter of Credit Bank, on a pro rata basis (based on amounts owed), in reimbursement of unpaid draws under each Letter of Credit;
(12) to the Series 2020-1 L/C Cash Account in reimbursement of any unreimbursed draws from such account;
(13) To each Holder of a Class A Note on the immediately preceding Record Date, an amount equal to its Percentage of the Class A Scheduled Principal Payment Amount for the Class A Notes on
such Payment Date;
(14) To each Holder of a Class A Note on the immediately preceding Record Date, an amount equal to its Percentage of the Class A Supplemental Principal Payment Amount for the Class A Notes on
such Payment Date;
(15) To each Holder of a Class B Note on the immediately preceding Record Date, an amount equal to its Percentage of the Class B Scheduled Principal Payment Amount for the Class B Notes on
such Payment Date;
(16) To each Holder of a Class B Note on the immediately preceding Record Date, an amount equal to its Percentage of the Class B Supplemental Principal Payment Amount for the Class B Notes on
such Payment Date;
(17) To the Series Account for each other Series of Notes then Outstanding (excluding the Series 2020-1 Notes), all remaining Series 2020-1 Available Funds to be allocated to such other Series
of Notes in accordance with the terms of the Series 2020-1 Supplement;
(18) To each Class A Noteholder on the immediately preceding Record Date, an amount equal to Additional Interest (if any) on the Class A Notes and all indemnities, costs, expenses and other
amounts then due and payable to the Class A Noteholders pursuant to the Series 2020-1 Related Documents;
(19) To each Class B Noteholder on the immediately preceding Record Date, an amount equal to Additional Interest (if any) on the Class B Notes and all indemnities, costs, expenses and other
amounts then due and payable to the Class B Noteholders pursuant to the Series 2020-1 Related Documents;
(20) On a pro rata basis (a) to the Manager Transfer Facilitator, any amounts due and payable to the Manager Transfer Facilitator and (b) to the Back-up Manager, any unpaid amounts due to
Back-up Manager, in each case calculated after giving effect to payments remaining after clause (4) above;
(21) To the Indenture Trustee, an amount equal to the product of (i) the Series 2020-1 Asset Allocation Percentage and (ii) Indenture Trustee’s Fees and indemnified amounts then due and
payable to the Indenture Trustee after giving effect to the payment made pursuant to clause (1) above; provided, however, that to the extent such amounts have been incurred solely with respect to Series 2020-1, such amounts will be paid by Series
2020-1 and will not be divided among the Series according to the Asset Allocation Percentages;
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(22) To each of the following on a pro rata basis: (A) to the Issuer, an amount equal to the product of (i) the Series 2020-1 Asset Allocation Percentage and (ii) the amount of any indemnity
payments payable to the officers, directors and/or managers of the Issuer required to be made by the Issuer, and (B) to the Manager, an amount equal to the product of (i) the Series 2020-1 Asset Allocation Percentage and (ii) the amount of any
indemnity payments required to be made to the Manager;
(23) If the Aggregate Required Asset Base exceeds the Aggregate Asset Base (determined prior to giving effect to any deposits to the Excess Funding Account made pursuant to this clause (23)),
any remaining Series 2020-1 Available Funds will be deposited in the Excess Funding Account until such condition is remedied;
(24) To the Series 2020-1 Defaulted Lease Account in an amount necessary to bring the amount of cash and Eligible Investments on deposit in the Series 2020-1 Defaulted Lease Account to the
Targeted Defaulted Lease Account Balance; and
(25) To the Issuer, any remaining Series 2020-1 Available Funds.
(II) If an Early Amortization Event for Series 2020-1 shall then be continuing, but no Event of Default for Series 2020-1 shall then be continuing (or an Event of Default for Series 2020-1 is
continuing but the Series 2020-1 Notes have not been accelerated in accordance with the Indenture):
(1) To the Indenture Trustee, an amount equal to the sum of (A) the Indenture Trustee’s Fees then due and payable for the Series 2020-1 Notes (subject to, in the case of expenses and
indemnities only, a per annum dollar limitation of $40,000) and (B) an amount equal to the product of (i) the Series 2020-1 Asset Allocation Percentage and (ii) any amounts payable to the Indenture Trustee on such Payment Date in accordance with a
specified provision of the Indenture regarding enforcement of the obligations of the Issuer under the Indenture; provided, however, that to the extent that the amounts in clause (B) have been incurred solely with respect to Series 2020-1, such
amounts will be paid by Series 2020-1 and will not be divided among the Series according to the Asset Allocation Percentages;
(2) To the Manager, an amount equal to the sum of (i) an amount equal to the Series 2020-1 Management Fee then due and payable with respect to the Series 2020-1 Notes, and (ii) the amount of
any Management Fee Arrearage then due and payable with respect to the Series 2020-1 Notes;
(3) To the Manager, an amount equal to the product of (i) the Series 2020-1 Asset Allocation Percentage and (ii) any unreimbursed Manager Advances made in accordance with the terms of the
Management Agreement;
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(4) To each of the following on a pro rata basis: (A) to the Manager Transfer Facilitator, an amount equal to the product of (x) Manager Transfer Facilitator Fees, expenses and indemnities
(subject to, in the case of expenses and indemnities only, a per annum dollar limitation of $40,000) and (y) the Series 2020-1 Asset Allocation Percentage of any amounts incurred by the Manager Transfer Facilitator, including those related to the
actual transfer from the Manager to the Back-up Manager, and (B) to Back-up Manager, an amount equal to the product of (i) the Series 2020-1 Asset Allocation Percentage and (ii) any Back-Up Manager fees then due and payable;
(5) To the Independent Management Provider, an amount equal to the product of (i) the Series 2020-1 Asset Allocation Percentage and (ii) that portion of the Independent Management Provider
Fees then owing;
(6) To the Persons entitled thereto, Issuer Expenses then due and payable, so long as the aggregate amount paid pursuant to this clause (6) in any calendar year would not exceed an amount
equal to the product of (i) the Series 2020-1 Asset Allocation Percentage and (ii) Fifty Thousand Dollars ($50,000) in aggregate;
(7) To each Holder of a Class A Note on the immediately preceding Record Date, an amount equal to its Percentage of the Class A Note Interest Payment (exclusive of any Additional Interest on
the Class A Notes) for such Payment Date;
(8) To each Holder of a Class B Note on the immediately preceding Record Date, an amount equal to its Percentage of the Class B Note Interest Payment (exclusive of any Additional Interest on
the Class B Notes) for such Payment Date;
(9) To each Letter of Credit Bank, on a pro rata basis (based on amounts owed), any Letter of Credit Fees then due and payable;
(10) To the Series 2020-1 Restricted Cash Account, an amount sufficient so that the total amount on deposit in the Series 2020-1 Restricted Cash Account, is equal to the Series 2020-1
Restricted Cash Amount for such Payment Date;
(11) To each Letter of Credit Bank, on a pro rata basis (based on amounts owed), in reimbursement of unpaid draws under each Letter of Credit;
(12) to the Series 2020-1 L/C Cash Account in reimbursement of any unreimbursed draws from such account;
(13) To each Holder of a Class A Note on the immediately preceding Record Date, all remaining Series 2020-1 Available Funds until the Aggregate Class A Note Principal Balance is reduced to
zero;
(14) To each Holder of a Class B Note on the immediately preceding Record Date, all remaining Series 2020-1 Available Funds until the Aggregate Class B Note Principal Balance is reduced to
zero;
(15) To each Holder of a Class A Note on the immediately preceding Record Date, all Additional Interest (if any) on the Class A Note and all indemnities, costs, expenses and other amounts then
due and payable to the Class A Noteholders pursuant to the Series 2020-1 Related Documents;
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(16) To each Holder of a Class B Note on the immediately preceding Record Date, all Additional Interest (if any) and all indemnities, costs, expenses and other amounts then due and payable to
the Class B Noteholders pursuant to the Series 2020-1 Related Documents;
(17) To the Series Account for each other Series of Notes then Outstanding (excluding the Series 2020-1 Notes), all remaining Series 2020-1 Available Funds to be allocated to such other Series
of Notes in accordance with the terms of the Series 2020-1 Supplement;
(18) On a pro rata basis (a) to the Manager Transfer Facilitator, any amounts due and payable to the Manager Transfer Facilitator and (b) to the Back-up Manager, any unpaid amounts due to
Back-up Manager, in each case calculated after giving effect to payments remaining after clause (4) above;
(19) To the Indenture Trustee, an amount equal to the product of (i) the Series 2020-1 Asset Allocation Percentage and (ii) Indenture Trustee’s Fees and indemnified amounts then due and payable
to the Indenture Trustee after giving effect to the payment made pursuant to clause (1) above; provided, however, that to the extent such amounts have been incurred solely with respect to Series 2020-1, such amounts will be paid by Series 2020-1 and
will not be divided among the Series according to the Asset Allocation Percentages;
(20) To each of the following on a pro rata basis: (i) to the Issuer, an amount equal to the product of (i) the Series 2020-1 Asset Allocation Percentage and (ii) the amount of any indemnity
payments payable to the officers, directors and/or managers of the Issuer required to be made by the Issuer, and (ii) to the Manager, an amount equal to the product of (i) the Series 2020-1 Asset Allocation Percentage and (ii) the amount of any
indemnity payments required to be made to the Manager;
(21) If the Aggregate Required Asset Base exceeds the Aggregate Asset Base (determined prior to giving effect to any deposits to the Excess Funding Account pursuant to this clause (21)), any
remaining Series 2020-1 Available Funds will be deposited in the Excess Funding Account until such condition is remedied; and
(22) To the Issuer, any remaining Series 2020-1 Available Funds.
(III) If an Event of Default for Series 2020-1 shall have occurred and then be continuing and the Series 2020-1 Notes have been accelerated in accordance with the Indenture and such
consequence shall not have been rescinded or annulled:
(1) To the Indenture Trustee, an amount equal to the sum of (i) the fee payable to the Indenture Trustee with respect to Series 2020-1, (ii) all out of pocket expenses owing to the Indenture
Trustee, and indemnification payments owing to the Indenture Trustee, to the extent directly attributable by the Indenture Trustee to Series 2020-1, and (iii) the product of (x) the Series 2020-1 Indenture Trustee Default Expense Allocation
Percentage and (y) an amount equal to the excess of (A) all out of pocket expenses owing to the Indenture Trustee, and indemnification payments owing to the Indenture Trustee, to the extent not directly attributed by the Indenture Trustee to a
specific Series, minus (B) all expenses and indemnification described in clause (A) that have been paid from the Series Account for any other Series of Notes then Outstanding; provided, however, that to the extent that the amounts in clause (iii)
have been incurred solely with respect to Series 2020-1, such amounts will be paid by Series 2020-1 and will not be divided among the Series according to the Asset Allocation Percentages;
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(2) To the Manager, an amount equal to the sum of (i) an amount equal to the Series 2020-1 Management Fee then due and payable with respect to the Series 2020-1 Notes, and (ii) the amount of
any Management Fee Arrearage then due and payable with respect to the Series 2020-1 Notes;
(3) To the Manager, an amount equal to the product of (i) the Series 2020-1 Asset Allocation Percentage and (ii) any unreimbursed Manager Advances made in accordance with the terms of the
Management Agreement;
(4) To each of the following on a pro rata basis: (A) to the Manager Transfer Facilitator, an amount equal to the product of (x) Manager Transfer Facilitator Fees, expenses and indemnities
and (y) the Series 2020-1 Asset Allocation Percentage of any amounts incurred by the Manager Transfer Facilitator, including those related to the actual transfer from the Manager to the Back-up Manager, and (B) to Back-up Manager, an amount equal to
the product of (i) the Series 2020-1 Asset Allocation Percentage and (ii) any Back-Up Manager fees then due and payable;
(5) To the Independent Management Provider, an amount equal to the product of (i) the Series 2020-1 Asset Allocation Percentage and (ii) that portion of the Independent Management Provider
Fees then owing;
(6) To the Persons entitled thereto, Issuer Expenses then due and payable, so long as the aggregate amount paid pursuant to this clause (6) in any calendar year would not exceed an amount
equal to the product of (i) the Series 2020-1 Asset Allocation Percentage and (ii) One Hundred Thousand Dollars ($100,000);
(7) To each Holder of a Class A Note on the immediately preceding Record Date, an amount equal to its Percentage of the Class A Note Interest Payment (exclusive of any Additional Interest on
the Class A Notes) for such Payment Date;
(8) To each Holder of a Class B Note on the immediately preceding Record Date, an amount equal to its Percentage of the Class B Note Interest Payment (exclusive of any Additional Interest on
the Class B Notes) for such Payment Date;
(9) To each Letter of Credit Bank, on a pro rata basis (based on amounts owed), any Letter of Credit Fees then due and payable;
(10) To each Holder of a Class A Note on the immediately preceding Record Date, all remaining Series 2020-1 Available Funds until the Aggregate Class A Note Principal Balance is reduced to
zero;
(11) To each Holder of a Class B Note on the immediately preceding Record Date, all remaining Series 2020-1 Available Funds until the Aggregate Class B Note Principal Balance is reduced to
zero;
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(12) To each Holder of a Class A Note on the immediately preceding Record Date, all Additional Interest (if any) on the Class A Note and all indemnities, costs, expenses and other amounts then
due and payable to the Class A Noteholder pursuant to the Series 2020-1 Related Documents;
(13) To each Holder of a Class B Note on the immediately preceding Record Date, all Additional Interest (if any) on the Class B Notes and all indemnities, costs, expenses and other amounts then
due and payable to the Class B Noteholder pursuant to the Series 2020-1 Related Documents;
(14) To each Letter of Credit Bank, on a pro rata basis (based on amounts owed), in reimbursement of unpaid draws under each Letter of Credit;
(15) To the Series Account for each other Series of Notes then Outstanding (excluding the Series 2020-1 Notes), all remaining Series 2020-1 Available Funds to be allocated to such other Series
of Notes in accordance with the methodology described in the Series 2020-1 Supplement;
(16) On a pro rata basis (a) to the Manager Transfer Facilitator, any amounts due and payable to the Manager Transfer Facilitator and (b) to the Back-up Manager, any unpaid amounts due to
Back-up Manager, in each case calculated after giving effect to payments remaining after clause (4) above;
(17) To the Indenture Trustee, an amount equal to the product of (i) the Series 2020-1 Asset Allocation Percentage and (ii) Indenture Trustee’s Fees and indemnified amounts then due and payable
to the Indenture Trustee after giving effect to the payment made pursuant to clause (1) above; provided, however, that to the extent such amounts have been incurred solely with respect to Series 2020-1, such amounts will be paid by Series 2020-1 and
will not be divided among the Series according to the Asset Allocation Percentages;
(18) To each of the following on a pro rata basis: (i) to the Issuer, an amount equal to the product of (w) the Series 2020-1 Asset Allocation Percentage and (x) the amount of any indemnity
payments payable to the officers, directors and/or managers of the Issuer required to be made by the Issuer, and (ii) to the Manager, an amount equal to the product of (y) the Series 2020-1 Asset Allocation Percentage and (z) the amount of any
indemnity payments required to be paid by the Manager;
(19) If the Aggregate Required Asset Base exceeds the Aggregate Asset Base (determined prior to giving effect to any deposits to the Excess Funding Account pursuant to this clause (19)), any
remaining Series 2020-1 Available Funds will be deposited into the Excess Funding Account until such condition is remedied; and
(20) To the Issuer, any remaining Series 2020-1 Available Funds.
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Section 306. Allocation of Series 2020-1 Available Funds.
(a) All Available Funds for Series 2020-1 that are available for distribution to other Series of Notes shall be allocated by the Manager to all
Series of Notes then Outstanding (other than the Liquidation Deficiency Series) that have a Required Payment Deficiency on such Determination Date. (Allocation of Shared Available Funds for Series 2020-1 to Liquidation Deficiency Series will be in
accordance with paragraph (b) of this Section 306.) Allocations shall be made to each Series having a Required Payment Deficiency in accordance with the following order of priorities, with no payment being made at any level of priority until all
prior priorities have been paid in full:
First, to each Series that has not paid in full the Indenture Trustee Fees, indemnities
and expenses payable by, or allocable to, such Series, the amount of such unpaid Indenture Trustee Fees, indemnities and expenses;
Second, to each Series that has not paid in full the Management Fee and Management Fee
arrearages payable by, or allocable to, such Series, the amount of such unpaid Management Fee and Management Fee Arrearages;
Third, to each Series that has not paid in full the Manager Advances payable by, or
allocable to, such Series, the amount of such unpaid Manager Advances;
Fourth, to each Series that has not paid in full the Manager Transfer Facilitator Fees
and Back-up Management Fees payable by, or allocable to, such Series, the amount of such unpaid Manager Transfer Facilitator Fees and Back-up Management Fees and any other amount due and owing to the Manager Transfer Facilitator;
Fifth, to each Series that has not paid in full the Issuer Expenses payable by, or
allocable to, such Series, the amount of such unpaid Issuer Expenses;
Sixth, to each Series that has not paid in full all interest payments payable with
respect to the senior Class of such Series and all commitment fees payable with respect to the senior Class of such Series, the amount of such unpaid interest payments and commitment fees;
Seventh, to each Series that has not paid in full all regularly scheduled payments
(excluding termination payments) owing to each Interest Rate Hedge Counterparty that has entered into an Interest Rate Hedge Agreement with respect to one or more of the senior Class of such Series, the amount of such unpaid regularly scheduled
payments;
Eighth, to each Series that has not paid in full all interest payments payable with
respect to the subordinate Class of such Series and all commitment fees payable with respect to the subordinate Class of such Series, the amount of such unpaid interest payments and commitment fees;
Ninth, to each Series that has not paid in full all Supplemental Principal Payment
Amounts for the senior Class of such Series, the amount of such unpaid Supplemental Principal Payment Amounts;
Tenth, to each Series that has not paid in full all Scheduled Principal Payment Amounts
for the senior Class of such Series, the amount of such unpaid Scheduled Principal Payment Amounts;
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Eleventh, to each Series that has not paid in full all Supplemental Principal Payment
Amounts for the senior Class of such Series, the amount of such unpaid Supplemental Principal Payment Amounts;
Twelfth, to each Series that has not paid in full all regularly scheduled payments
(excluding termination payments) owing to each Interest Rate Hedge Counterparty that has entered into an Interest Rate Hedge Agreement with respect to the subordinate Class of such Series, the amount of such unpaid regularly scheduled payments;
Thirteenth, to each Letter of Credit Bank, on a pro rata basis (based on amounts owed),
any Letter of Credit Fees then due and payable
Fourteenth, to each Series that has not paid in full all Supplemental Principal Payment
Amounts for the subordinate Class of such Series, the amount of such unpaid Supplemental Principal Payment Amounts;
Fifteenth, to each Series that has not paid in full all Scheduled Principal Payment
Amounts for the subordinate Class of such Series, the amount of such unpaid Scheduled Principal Payment Amounts;
Sixteenth, to each Series that has not paid in full all Supplemental Principal Payment
Amounts for the subordinate Class of such Series, the amount of such unpaid Supplemental Principal Payment Amounts;
Seventeenth, to each Letter of Credit Bank, on a pro rata basis (based on amounts
owed), in reimbursement of unpaid draws under each Letter of Credit;
Eighteenth, to each Series that has a principal reserve account (or another Series
Account that serves a similar purpose), the amount necessary to restore the balance in such account to the balance specified in the related Supplement;
Nineteenth, (a) to the Manager Transfer Facilitator, any amounts due and payable to the
Manager Transfer Facilitator and (b) to the Back-up Manager, any unpaid amounts due to Back-up Manager;
Twentieth, to the Indenture Trustee, any remaining unpaid expenses and indemnified
amounts;
Twenty-First, (a) to the Issuer, any unpaid indemnified amounts, and (b) to the
Manager, any unpaid indemnified amounts; and
Twenty-Second, to each Series of Notes that has not been paid in full, all other
amounts owing to the Noteholders of such Series.
If more than one Series shall be entitled to a distribution pursuant to a particular priority set forth in the flow of funds set forth immediately above, funds shall be allocated among each such
entitled Series on a pro rata basis based on the relative amount owing to each such Series pursuant to such payment priority.
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(b) After the application of the allocation set forth in the flow of funds set forth in Section 306(a) above, any remaining Shared Available Funds
shall be allocated to each Liquidation Deficiency Series in accordance with the following order of priorities, with no payment being made at any level of priority until all prior priorities have been paid in full:
First, to each Liquidation Deficiency Series that has not paid in full the Indenture
Trustee Fees, indemnities and expenses payable by, or allocable to, such Liquidation Deficiency Series, the amount of such unpaid Indenture Trustee Fees, indemnities and expenses;
Second, to each Liquidation Deficiency Series that has not paid in full the Management
Fee and Management Fee arrearages payable by, or allocable to, such Liquidation Deficiency Series, the amount of such unpaid Management Fee and Management Fee Arrearages;
Third, to each Liquidation Deficiency Series that has not paid in full the Manager
Advances payable by, or allocable to, such Liquidation Deficiency Series, the amount of such unpaid Manager Advances;
Fourth, to each Liquidation Deficiency Series that has not paid in full the Manager
Transfer Facilitator Fees and Back-up Management Fees payable by, or allocable to, such Liquidation Deficiency Series, the amount of such unpaid Manager Transfer Facilitator Fees and Back-up Management Fees and any other amount due and owing to the
Manager Transfer Facilitator;
Fifth, to each Liquidation Deficiency Series that has not paid in full all interest
payments and commitment fees payable with respect to the senior Class of such Liquidation Deficiency Series, the amount of such unpaid interest payments and commitment fees;
Sixth, to each Liquidation Deficiency Series that has not paid in full all regularly
scheduled payments (excluding termination payments) owing to each Interest Rate Hedge Counterparty that has entered into an Interest Rate Hedge Agreement with respect to such Liquidation Deficiency Series, the amount of such unpaid regularly
scheduled payments;
Seventh, to each Liquidation Deficiency Series that has not paid in full all
Supplemental Principal Payment Amounts to the senior Class of such Liquidation Deficiency Series, the amount of such unpaid Supplemental Principal Payment Amounts;
Eighth, to each Liquidation Deficiency Series that has not paid in full all Scheduled
Principal Payment Amounts to the senior Class of such Liquidation Deficiency Series, the amount of such unpaid Scheduled Principal Payment Amounts;
Ninth, to each Liquidation Deficiency Series that has not paid in full all termination
and all other payments owing to each Interest Rate Hedge Counterparty that has entered into an Interest Rate Hedge Agreement with respect to such Liquidation Deficiency Series, the amount of such unpaid termination and other payments;
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Tenth, to each Liquidation Deficiency Series that has not paid in full all Letter of
Credit Fees then due and payable to each Letter of Credit Bank;
Eleventh, to each Liquidation Deficiency Series that has not paid in full all
Supplemental Principal Payment Amounts to the subordinate Class of such Liquidation Deficiency Series, the amount of such unpaid Supplemental Principal Payment Amounts; and
Twelfth, to each Liquidation Deficiency Series that has not paid in full all Scheduled
Principal Payment Amounts to the subordinate Class of such Liquidation Deficiency Series, the amount of such unpaid Scheduled Principal Payment Amounts.
Thirteenth, to each Liquidation Deficiency Series that has not paid in full reimbursements
of unpaid draws under each Letter of Credit.
If more than one Liquidation Deficiency Series shall be entitled to a distribution pursuant to a particular priority set forth above, funds shall be allocated among each such entitled Liquidation
Deficiency Series on a pro rata basis based on the relative amount owing to each such Liquidation Deficiency Series pursuant to such payment priority.
(c) All Shared Available Funds remaining after the payments set forth in Section 306 (a) and (b) have been paid, shall be used to pay, for each Series for which the Unpaid Principal Balance
of, and accrued interest on, the Notes of such Series have been paid in full but for which fees, indemnities and other amounts owing to any Person, the aggregate amount of such unpaid fees, indemnities and other amounts. If more than one Series are
entitled to such payments, then such payments shall be allocated among such Series on a pro rata basis based on the amounts owing.
Section 307. Series 2020-1 L/C Cash Account.
(a) The Issuer shall establish and maintain with the Indenture Trustee, in the name of the Issuer, the Series 2020-1 L/C Cash Account, which Series
2020-1 L/C Cash Account is pledged to the Indenture Trustee for the benefit of the Holders of the Series 2020-1 Notes. Any and all amounts on deposit in the Series 2020-1 L/C Cash Account may be invested in Eligible Investments in accordance with
Section 303 of the Indenture.
(b) If the Series 2020-1 L/C Cash Account has been funded in accordance with the terms of this Supplement, then the Indenture Trustee shall, based
on the information set forth in the Manager Report (or, in the absence of any Manager Report, in accordance with the written direction of the Series 2020-1 Control Party), make drawings outlined in Section 308(a) from amounts on deposit in the Series
2020-1 L/C Cash Account before any drawings are made on any Eligible Letters of Credit. Such drawing shall be reimbursed in accordance with the priority of payments in Section 305 of this Supplement.
(c) If, subsequent to the funding of the Series 2020-1 L/C Cash Account, the Issuer shall deliver to the Indenture Trustee an Eligible Letter of
Credit, the Indenture Trustee shall, on the next succeeding Payment Date (based on the Manager Report (or, in the absence of any Manager Report, in accordance with the written direction of the Series 2020-1 Control Party)), withdraw from the Series
2020-1 L/C Cash Account and remit to the Issuer funds in an amount equal to the available amount of such delivered Eligible Letter of Credit.
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(d) At the direction of the Control Party upon the occurrence of a Series 2020-1 Series-Specific Event of Default, the Indenture Trustee will
withdraw all amounts then on deposit in the Series 2020-1 L/C Cash Account and deposit such amounts in the Series 2020-1 Series Account to be distributed in accordance with Section 305 of this Supplement.
Section 308. Drawing on Eligible Letters of Credit.
(a) On each Determination Date, the Indenture Trustee shall, based on the Manager Report (or, in the absence of any Manager Report, in accordance
with the written direction of the Series 2020-1 Control Party) delivered on such Determination Date and after giving effect to drawings made under the Series 2020-1 Restricted Cash Account and the Series 2020-1 L/C Cash Account, submit a draw request
on the Letter(s) of Credit in an amount equal to the lesser of:
(i) the Aggregate Available Amount; and
(ii) an amount equal to the excess of (x) the Permitted Payment Date Withdrawals for the related Payment Date, over (y) any
amounts drawn from the Series 2020-1 Restricted Cash Account or the Series 2020-1 L/C Cash Account on such Determination Date to satisfy such Permitted Payment Date Withdrawals in accordance with the terms of this Supplement.
(b) If there is more than one Letter of Credit on the date of any draw on the Letter(s) of Credit pursuant to the terms of this Supplement, the
Indenture Trustee, based on the Manager Report (or, in the absence of any Manager Report, in accordance with the written direction of the Series 2020-1 Control Party) delivered on such Determination Date, shall draw on each Letter of Credit in an
amount equal to the LOC Pro Rata Share of the related Letter of Credit Bank.
(c) The Indenture Trustee shall receive the proceeds of all drawings on the Letter(s) of Credit on behalf of the Series 2020-1 Noteholders. Any
drawings in respect of a Letter of Credit made pursuant to the provisions due to a non-renewal of a Letter of Credit or a downgrade in the credit rating of a Letter of Credit Bank shall be deposited into the Series 2020-1 L/C Cash Account and paid in
accordance with the terms of this Supplement.
(d) If, prior to the date which is ten (10) days prior to the then scheduled Letter of Credit Expiration Date, the Issuer has not either deposited
cash into the Series 2020-1 Restricted Cash Account and/or delivered to the Indenture Trustee an Eligible Letter of Credit in an amount that is equal to or greater than the available amount of the expiring Letter of Credit, then the Manager shall
notify the Indenture Trustee in writing no later than two Business Days prior to such Letter of Credit Expiration Date of the available amount of such expiring Letter of Credit and direct the Indenture Trustee in writing to draw on the expiring
Letter of Credit in an amount equal to the amount set forth in such written direction. Upon acknowledgment of receipt of such notice by the Indenture Trustee on or prior to 10:00 a.m. (New York City time) on any Business Day, the Indenture Trustee
shall, by 2:00 p.m. (New York City time) on such Business Day (or, in the case of any notice given to the Indenture Trustee after 10:00 a.m. (New York City time), by 2:00 p.m. (New York City time) on the next following Business Day), draw on the
expiring Letter of Credit an amount equal to the amount set forth above. The proceeds of any such drawing shall be deposited in the Series 2020-1 L/C Cash Account.
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(e) The Issuer shall, or shall cause the Manager to, notify the Indenture Trustee in writing within two Business Days after becoming aware that the
long-term senior unsecured debt credit rating of any Letter of Credit Bank has fallen below “A”, as determined by the Rating Agency (each such Letter of Credit Bank, a “Downgraded Letter of Credit Bank”). The
Issuer shall have 60 days from the date of such downgrade to deliver to the Indenture Trustee a replacement Eligible Letter of Credit from an Eligible Bank having an available drawing amount at least equal to the available drawing amount under the
Letter of Credit issued by the Downgraded Letter of Credit Bank. If the Issuer fails to either deposit cash into the Series 2020-1 Restricted Cash Account and/or deliver to the Indenture Trustee an Eligible Letter of Credit in an amount that is
equal to or greater than the available amount of the Letter of Credit issued by the Downgraded Letter of Credit Bank, the Issuer or the Manager shall notify the Indenture Trustee of the amount available to be drawn on the Letter of Credit issued by
such Downgraded Letter of Credit Bank and direct the Indenture Trustee in writing to draw on the Letter of Credit issued by the Downgraded Letter of Credit Bank in an amount equal to the full amount available under the Letter of Credit issued by the
Downgraded Letter of Credit Bank. Upon acknowledgment of receipt of such notice by the Indenture Trustee on or prior to 10:00 a.m. (New York City time) on any Business Day, the Indenture Trustee shall, by 2:00 p.m. (New York City time) on such
Business Day (or, in the case of any notice given to the Indenture Trustee after 10:00 a.m. (New York City time), by 2:00 p.m. (New York City time) on the next following Business Day), draw on such Letter of Credit in an amount equal to the full
amount of available amount under the Letter of Credit issued by such Downgraded Letter of Credit Bank. The proceeds of any such drawing shall be deposited in the Series 2020-1 L/C Cash Account.
(f) Upon the occurrence of a Series 2020-1 Series-Specific Event of Default, the Indenture Trustee shall promptly submit a draw for the available
amount of all Letters of Credit and deposit the amount of such drawing in the Series 2020-1 Series Account to be distributed in accordance with Section 305.
Section 309. Series 2020-1 Revenue Reserve Account. The Issuer shall establish on or prior to the Series 2020-1 Closing Date an Eligible Account in the name of the Issuer with the
Indenture Trustee which shall be a special non-interest bearing restricted cash trust account and designated as the Series 2020-1 Revenue Reserve Account, which account shall be held by the Indenture Trustee for the benefit of the Series 2020-1
Noteholders pursuant to the terms of this Supplement. On the Series 2020-1 Closing Date, the Issuer will deposit (or cause to be deposited) into the Series 2020-1 Revenue Reserve Account an amount equal to the Series 2020-1 Revenue Reserve Deposit
Amount. The Series 2020-1 Revenue Reserve Account shall only be relocated to another financial institution in accordance with the express provisions of Section 309(d) of the Indenture. On the Payment Dates in September 2020 and October 2020, the
Indenture Trustee will, in accordance with the Manager Report (or, in the absence of any Manager Report, in accordance with the written direction of the Series 2020-1 Control Party), withdraw from the Series 2020-1 Revenue Reserve Account and deposit
in the Series 2020-1 Series Account funds in an amount equal to the Series 2020-1 Revenue Reserve Release Amount for such Determination Date.
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ARTICLE IV
Series-Specific Early Amortization Events, Series-Specific Manager Defaults, Series-Specific Events of Default and Covenants for the Series 2020-1 Notes
Series-Specific Early Amortization Events, Series-Specific Manager Defaults, Series-Specific Events of Default and Covenants for the Series 2020-1 Notes
Section 401. Series-Specific Early Amortization Events.
The existence of any one of the following events or conditions will constitute a “Series-Specific Early Amortization Event” for the Series 2020-1 Notes that can be enforced by the Indenture Trustee,
at the direction of, and/or waived by, the Series 2020-1 Control Party:
(a) Commencing with the thirteenth Payment Date following the Series 2020-1 Closing Date, the Series 2020-1 Interest Coverage Ratio is less than
2.50:1.00 for four consecutive Payment Dates; or
(b) The Manager Report delivered for any Payment Date indicates that the Weighted Average Age of the Eligible Containers is greater than ten (10)
years; or
(c) A default shall occur governing any Indebtedness of CAI and/or its Subsidiaries that, individually or in the aggregate, exceeds $75,000,000, and
such default continues for such period of time as would permit (assuming the giving of appropriate notice if required) the holder or holders thereof or of any obligations issued thereunder to accelerate the maturity of all or part of such
Indebtedness, or any such holder or holders shall rescind or shall have a right to rescind the purchase of any such obligations; or
(d) The principal balance of the Offered Notes is not repaid fully by the Series 2020-1 Expected Final Payment Date.
Any Series-Specific Early Amortization Event described in the foregoing clause (a) and (b) shall, for purposes of the Series 2020-1 Related Documents, be deemed no longer to be continuing, if such
condition does not exist on any two consecutive subsequent Payment Dates, immediately upon such second consecutive Payment Date. Any Series-Specific Early Amortization Event described in the foregoing clause (c) shall, for purposes of the Series
2020-1 Related Documents, be deemed no longer to be continuing immediately upon the cure or waiver thereof for purposes of the related debt documents. Except as described in the preceding two sentences, if a Series-Specific Early Amortization Event
exists on any Payment Date, then such Series-Specific Early Amortization Event shall be deemed to continue until the Business Day on which the Series 2020-1 Control Party waives, in writing, such Series-Specific Early Amortization Event. The
Indenture Trustee shall promptly provide notice of any such waiver received by it to each Rating Agency for the Series 2020-1 Notes.
(e) If an Early Amortization Event for Series 2020-1 shall have occurred and then be continuing, the Indenture Trustee shall have, in addition to
the rights provided in the Related Documents, all rights and remedies provided under all applicable laws.
Section 402. Series 2020-1 Manager Defaults.
(a) The existence of any one of the following events or conditions shall constitute a Series-Specific Manager Default with respect to the Series
2020-1 Notes:
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(i) The occurrence and continuance of a Trust Manager Default.
(ii) The Consolidated Leverage Ratio of CAI and its consolidated subsidiaries as of the last day of a fiscal quarter exceeds
4.50 to 1.00;.
(iii) A default shall occur governing any Indebtedness of CAI and/or its Subsidiaries that, individually or in the aggregate,
exceeds $75,000,000, and such default continues for such period of time as would permit (assuming the giving of appropriate notice if required) the holder or holders thereof to accelerate the maturity of all or part of such Indebtedness, or any such
holder or holders shall rescind or shall have a right to rescind the purchase of any such obligations; or
(iv) A Change of Control shall occur;
unless (in the case of any such instance) the Rating Agency Condition is satisfied.
A Series-Specific Manager Default of the type described in clause (i) above shall cease upon the cure or waiver of the Trust Manager Default in accordance with the Management Agreement. A
Series-Specific Manager Default of the type described in either clause (ii) or (iii) shall be cured upon the first subsequent date on which a Manager Report is delivered indicating that such condition does not exist on any subsequent Payment Date. A
Series-Specific Manager Default of the types described in clauses (i), (ii), (iii) or (iv) above shall cease upon satisfaction of the Rating Agency Condition. Except as set forth in the three immediately preceding sentences, any Series-Specific
Manager Default shall be deemed to continue until the Business Day on which the Control Party for Series 2020-1 waives, in writing, such Series-Specific Manager Default (and any such waiver by the Control Party for Series 2020-1 of any
Series-Specific Manager Default shall be binding for purposes of all Series of Notes issued under the Indenture). The Indenture Trustee shall promptly provide notice of any such waiver received by it of a Series-Specific Manager Default to each
Rating Agency for the Series 2020-1 Notes.
(b) The Series 2020-1 Control Party may waive any Series-Specific Manager Default with respect to Series 2020-1 and may amend or consent to any
amendment of the provisions of Section 402(a).
Section 403. Series-Specific Events of Default.
(a) Each of the following will constitute a “Series-Specific Event of Default” for the Series 2020-1 Notes:
(i) Failure to pay (1) on any Payment Date, the full amount of the Class A Note Interest Payment and Class B Note Interest
Payment on the Series 2020-1 Notes and such condition continues for three (3) Business Days, or (2) on the Series 2020-1 Legal Final Payment Date for the Unpaid Principal Balance for the Series 2020-1 Notes and such condition continues for three (3)
Business Days;
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(ii) Except as dealt with in clause (i) above or included as a Trust Event of Default, breach of any covenant of the Issuer or any
Seller in any Series 2020-1 Related Document, which breach (1) materially and adversely affects the interest of any Series 2020-1 Noteholder, and (2) continues for a period of 60 days after (y) an authorized officer of the Issuer or the applicable
Seller first having notice thereof, or (z) notice is received from the Indenture Trustee (to the extent a responsible officer of the Indenture Trustee has received written notice or actual knowledge) or a Noteholder (subject to an additional 60-day
cure period for defaults that the Issuer or Seller is diligently attempting to cure);
(iii) Any representation or warranty of the Issuer or any Seller made in any Series 2020-1 Related Document shall prove to be
incorrect in any material respect as of the time when the same shall have been made, which incorrectness (1) materially and adversely affects the interest of any Series 2020-1 Noteholder, and (2) if capable of cure, continues for a period of 30 days
(subject to an additional 30-day cure period for defaults that the Issuer or Seller is diligently attempting to cure); or
(iv) The Indenture Trustee shall fail to have a first priority perfected security interest in the Series Specific Collateral for
Series 2020-1.
(b) Upon the occurrence and during the continuance of a Series-Specific Event of Default, the Control Party may (i) declare the Series 2020-1 Notes
to be immediately due and payable, (ii) institute judicial proceedings for collection of the Series 2020-1 Notes, (iii) direct a sale of the Collateral (with the consent of the Requisite Global Majority if a Series-Specific Event of Default is
continuing for all Series of Notes then Outstanding), or a partial sale of, the Collateral (without the consent of the Requisite Global Majority) under the circumstances an in accordance with the terms of and using the selection procedures set forth
in of the Indenture, (iv) exercise any other remedies that may be available to the Series 2020-1 Noteholder under the Indenture or Applicable Law, and (v) exercise remedies with respect to the Series 2020-1 Series-Specific Collateral.
(c) The Control Party may waive any Series-Specific Event of Default set forth in clauses (ii), (iii) and (iv) above. Each affected Series 2020-1
Noteholder must waive a Series-Specific Event of Default of the type described in clause (i) above. Subject to the foregoing and the restrictions set forth in Section 705(b), the Control Party may amend or consent to any amendment of the provisions
of Section 403(a).
Section 404. Series 2020-1 Management Fee.
As contemplated by the Management Agreement, the Manager shall be entitled to a management fee for Series 2020-1 for each Collection Period in an amount equal to the Series 2020-1 Management Fee.
Section 405. Additional Covenants. In addition to the covenants set forth in Article VI of the Indenture, the Issuer hereby makes the
following additional covenants for the benefit of the Series 2020-1 Noteholders:
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(a) Rule 144A. So long as any of the Series 2020-1 Notes are “restricted securities” within the meaning of Rule 144(a)(3) under the
Securities Act, the Issuer shall, unless it becomes subject to and complies with the reporting requirements of Section 13 or 15(d) of the Exchange Act, or rule 12g3-2(b) thereunder, (i) provide to any Series 2020-1 Noteholder of such restricted
securities, or to any prospective Series 2020-1 Noteholder of such restricted securities designated by a Series 2020-1 Noteholder, upon the request of such Series 2020-1 Noteholder or prospective Series 2020-1 Noteholder, any information required to
be provided by Rule 144A(d)(4) under the Securities Act and (ii) update such information to prevent such information from becoming materially false and materially misleading in a manner adverse to any Series 2020-1 Noteholder.
(b) Use of Proceeds. The Issuer will apply the net proceeds from the sale of the Offered Notes: to fund the initial deposit into the Series
2020-1 Redemption Account, the Series 2020-1 Revenue Reserve Account and the Series 2020-1 Restricted Cash Account, (iii) to pay the costs of issuance of the Series 2020-1 Notes and (iv) for other general business purposes.
(c) Perfection Requirements. The Issuer will not (x) change any of (i) its corporate name, (ii) the name under which it does business or
(iii) the jurisdiction in which it is incorporated or (y) amend any provision of its memorandum of association or bye-laws, in each case, without the prior written consent of the Series 2020-1 Control Party. The Issuer shall make such filing and
take such actions as the Series 2020-1 Noteholder may request in order to maintain the Lien of the Indenture Trustee in the Collateral.
(d) United States Federal Income Tax Election. The Issuer shall not make an election to be classified as an association taxable as a
corporation pursuant to Section 301.7701-3 of the United States Treasury Regulations.
(e) Further Assurances Regarding Purchase of Managed Containers. On the Payment Dates in September 2020 and October 2020, when the Issuer
purchases Managed Containers using funds from the Redemption Account, Issuer shall: (i) cause the Seller of such Managed Containers to release all liens of record, including without limitation, liens in favor of the indenture trustee of the Series
2017-1, 2018-1 and 2018-2 Notes issued by CAL Funding III Limited and the liens in favor of Bank of America, as Administrative Agent; and (ii) undertake whatever other action may be necessary to vest in the Issuer good and marketable title to the
Managed Containers.
Section 406. Back-up Manager Event. A Back-up Manager Default will occur with respect to Series 2020-1 if the Consolidated Leverage Ratio of CAI and its consolidated subsidiary of
the last day of a fiscal quarter exceeds 4.25 to 1.00.
ARTICLE V
Conditions to Issuance
Conditions to Issuance
Section 501. Conditions to Issuance. The Indenture Trustee shall not authenticate the Series 2020-1 Notes unless the Issuer shall have delivered a certificate to the Indenture
Trustee to the effect that all conditions set forth in the Series 2020-1 Note Purchase Agreement, other than the condition precedent set forth in Section 8(p) thereof, shall have been satisfied or waived.
ARTICLE VI
Representations and Warranties
Representations and Warranties
To induce the Series 2020-1 Noteholders to purchase the Series 2020-1 Notes hereunder, the Issuer hereby represents and warrants as of the Closing Date to the Indenture Trustee for the benefit of the
Series 2020-1 Noteholders that:
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Section 601. Existence. The Issuer is a company duly incorporated, validly existing and in compliance under the laws of Bermuda. The Issuer is in good standing and is duly qualified
to do business in each jurisdiction where the failure to do so would have a material adverse effect upon the Issuer and in each jurisdiction in which a failure to so qualify would materially and adversely affect the ability of the Indenture Trustee
to enforce its security interest in the Collateral.
Section 602. Authorization. The Issuer has the necessary corporate power and is duly authorized to execute and deliver this Supplement and the other Series 2020-1 Related Documents
to which it is a party; the Issuer is and will continue to be duly authorized to borrow monies hereunder; and the Issuer is and will continue to be authorized to perform its obligations under this Supplement and under the other Series 2020-1 Related
Documents. The execution, delivery and performance by the Issuer of this Supplement and the other Series 2020-1 Related Documents to which it is a party and the borrowings hereunder do not and will not require any consent or approval of any
Governmental Authority, shareholder or any other Person which has not already been obtained.
Section 603. No Conflict; Legal Compliance. The execution, delivery and performance of this Supplement and each of the other Series 2020-1 Related Documents and the execution,
delivery and payment of the Series 2020-1 Notes will not: (a) contravene any provision of the Issuer’s Bye-Laws or Memorandum of Association; (b) contravene, conflict with or violate any Applicable Law or regulation, or any order, writ, judgment,
injunction, decree, determination or award of any Governmental Authority; or (c) violate or result in the breach of, or constitute a default under the Indenture, the Series 2020-1 Related Documents, any other indenture or other loan or credit
agreement, or other agreement or instrument to which the Issuer is a party or by which the Issuer, or its property and assets may be bound or affected. The Issuer is not in violation or breach of or default under any law, rule, regulation, order,
writ, judgment, injunction, decree, determination or award or any contract, agreement, lease, license, indenture or other instrument to which it is a party.
Section 604. Validity and Binding Effect. This Supplement is, and each Series 2020-1 Related Document to which the Issuer is a party, when duly executed and delivered, will be, the
legal, valid and binding obligation of the Issuer, enforceable against the Issuer in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency or other similar laws of general application affecting the enforcement
of creditors’ rights or by general principles of equity limiting the availability of equitable remedies.
Section 605. Financial Statements. Since December 31, 2019, there has been no Material Adverse Change in the financial condition of any of
the Issuer, the Seller or the Manager.
Section 606. Place of Business. The sole “place of business” (within the meaning of Section 9-307 of the UCC) of the Issuer is located at Clarendon House, 2 Church Street, Hamilton
HM 11, Bermuda. The Issuer does not maintain an office or assets in the United States, other than (i) the Trust Account, the Series 2020-1 Restricted Cash Account, the Excess Funding Account, the Series 2020-1 Defaulted Lease Account and the Series
2020-1 Series Account (ii) off-hire containers located in depots in the United States, and (iii) Managed Containers described in Section 606(g) of the Indenture and subject to Leases pursuant to Section 3.1 of the Management Agreement.
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Section 607. No Agreements or Contracts. The Issuer is not a party to any contract or agreement (whether written or oral) other than the Related Documents.
Section 608. Consents and Approvals. No approval, authorization or consent of any trustee or holder of any Indebtedness or obligation of the Issuer or of any other Person under any
agreement, contract, lease or license or similar document or instrument to which the Issuer is a party or by which the Issuer is bound, is required to be obtained by the Issuer in order to make or consummate the transactions contemplated under the
Series 2020-1 Related Documents, except for those approvals, authorizations and consents that have been obtained on or prior to the Closing Date. All consents and approvals of, filings and registrations with, and other actions in respect of, all
Governmental Authorities required to be obtained by the Issuer in order to make or consummate the transactions contemplated under the Series 2020-1 Related Documents have been, or prior to the time when required will have been, obtained, given, filed
or taken and are or will be in full force and effect.
Section 609. Margin Regulations. The Issuer does not own any “margin security”, as that term is defined in Regulation U of the Federal Reserve Board, and the proceeds of the Series
2020-1 Notes issued under this Supplement will be used only for the purposes contemplated hereunder. None of such proceeds will be used, directly or indirectly, for the purpose of purchasing or carrying any margin security, for the purpose of
reducing or retiring any indebtedness which was originally incurred to purchase or carry any margin security or for any other purpose which might cause any of the loans under this Supplement to be considered a “purpose credit” within the meaning of
Regulations T, U and X. The Issuer will not take or permit any agent acting on its behalf to take any action which might cause this Supplement or any document or instrument delivered pursuant hereto to violate any regulation of the Federal Reserve
Board.
Section 610. Taxes. All federal, state, local and foreign Tax returns, reports and statements required to be filed by the Issuer have been filed with the appropriate Governmental
Authorities, and all Taxes and other impositions shown thereon to be due and payable by the Issuer have been paid prior to the date on which any fine, penalty, interest or late charge may be added thereto for nonpayment thereof, or any such fine,
penalty, interest, late charge or loss has been paid, or the Issuer is contesting its liability therefor in good faith and has fully reserved all such amounts according to GAAP in the financial statements provided to the Series 2020-1 Noteholders
pursuant to Section 626 of the Indenture. The Issuer has paid when due and payable all material charges upon the books of the Issuer and no Governmental Authority has asserted any Lien against the Issuer with respect to unpaid Taxes. Proper and
accurate amounts have been withheld by the Issuer from its employees for all periods in full and complete compliance with the Tax, social security and unemployment withholding provisions of applicable federal, state, local and foreign law and such
withholdings have been timely paid to the respective Governmental Authorities.
Section 611. Investment Company Act of 1940. The Issuer is not, and is not controlled by, an “investment company” registered or required to be registered under the Investment Company
Act. The Issuer is not an “investment company” as defined in Section 3(a)(1) of the Investment Company Act, although other exemptions or exclusions may be available. The Issuer is not relying on the exemptions set forth in Section 3(c)(1) or Section
3(c)(7) of the Investment Company Act. The Issuer is structured so as not to constitute a “covered fund” for purposes of the Volcker Rule under the Dodd-Frank Act.
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Section 612. Solvency and Separateness.
(a) The capital of the Issuer is adequate for the business and undertakings of the Issuer.
(b) Other than with respect to the transactions contemplated hereby and by the other Related Documents (including without limitation the Management
Agreement and the Contribution and Sale Agreement), the Issuer is not engaged in any business transactions with the Sellers or the Manager.
(c) The bye-laws of the Issuer provide that the Issuer shall have three directors of which one director shall be an Independent Director (as defined
in such bye-laws). No action can be taken to institute voluntary Insolvency Proceedings on behalf of the Issuer unless such action shall have been approved or authorized by (x) all of the Directors (which approval shall include the Independent
Director) and (y) a resolution of the members of the Issuer representing one hundred percent (100%) of all shares of the Issuer then issued and outstanding.
(d) The Issuer’s funds and assets are not, and will not be, commingled with those of the Seller or the Manager, except as permitted by the
Management Agreement.
(e) The bye-laws of the Issuer require it to maintain correct and complete books and records of account, and Bermuda law requires it to maintain
minutes of the meetings and other proceedings of its members.
(f) The Issuer is not insolvent under the Insolvency Law and will not be rendered insolvent by the transactions contemplated by the Series 2020-1
Related Documents and after giving effect to such transactions, the Issuer will not be left with an unreasonably small amount of capital with which to engage in its business nor will the Issuer have intended to incur, or believe that it has incurred,
debts beyond its ability to pay such debts as they mature. The Issuer does not contemplate the commencement of insolvency, bankruptcy, liquidation or consolidation proceedings or the appointment of a receiver, liquidator, trustee or similar official
in respect of the Issuer or any of its assets.
Section 613. Title; Liens. On the Closing Date, the Issuer will have good, legal and marketable title to each of its respective assets, and none of such assets is subject to any
Lien, except for Permitted Encumbrances.
Section 614. No Default. No Trust Event of Default, Series-Specific Event of Default, Trust Early Amortization Event, Series-Specific Early Amortization Event, Trust Manager Default,
or Series-Specific Manager Default (or event or condition which with the giving of notice or passage of time or both would become a Trust Event of Default, Series-Specific Event of Default, Trust Early Amortization Event, Series-Specific Early
Amortization Event Trust Manager Default, or Series-Specific Manager Default) has occurred and is continuing.
Section 615. Litigation and Contingent Liabilities. No claims, litigation, arbitration proceedings or governmental Proceedings by any Governmental Authority are pending or threatened
against or are affecting the Issuer or any of its Affiliates the results of which might interfere with the consummation of any of the transactions contemplated by this Supplement or any document issued or delivered in connection herewith.
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Section 616. Subsidiaries. The Issuer has no subsidiaries.
Section 617. No Partnership. The Issuer is not a partner or joint venturer in any partnership or joint venture.
Section 618. Pension and Welfare Plans. No accumulated funding deficiency (as defined in Section 412 of the Code or Section 302 of ERISA) or reportable event (within the meaning of
section 4043 of ERISA), has occurred with respect to any Plan of the Issuer or any ERISA Affiliate. The present value of all benefit liabilities under all Plans of the Issuer or any ERISA Affiliate subject to Title IV of ERISA, as defined in Section
4001(a)(16) of ERISA, exceeds the fair market value of all assets of Plans subject to Title IV of ERISA (determined as of the most recent valuation date for such Plan on the basis of assumptions prescribed by the Pension Benefit Guaranty Corporation
for the purpose of Section 4044 of ERISA), by no more than $1.9 million. Neither the Issuer nor any ERISA Affiliate is subject to any present or potential withdrawal liability pursuant to Title IV of ERISA and no multi-employer plan (with the
meaning of Section 4001(a)(3) of ERISA) to which the Issuer or any ERISA Affiliate has an obligation to contribute or any liability, is or is likely to be disqualified for Tax purposes, in reorganization within the meaning of Section 4241 of ERISA or
Section 418 of the Code or is insolvent (as defined in Section 4245 of ERISA). No liability (other than liability to make periodic contributions to fund benefits) with respect to any Plan of the Issuer, or Plan subject to Title IV of ERISA or any
ERISA Affiliate, has been, or is expected to be, incurred by the Issuer or an ERISA Affiliate, either directly or indirectly. All Plans of the Issuer are in material compliance with ERISA and the Code. No lien under Section 412 of the Code or
302(f) of ERISA or requirement to provide security under the Code or ERISA has been or is reasonably expected by the Issuer to be imposed on its assets. The Issuer does not have any obligation under any collective bargaining agreement. As of the
Closing Date, the Issuer is not an employee benefit plan with the meaning of ERISA or a “plan” within the meaning of Section 4975 of the Code and assets of the Issuer do not constitute “plan assets” within the meaning of Section 2510.3-101 of the
regulations of the Department of Labor.
Section 619. Ownership of the Issuer. As of the Closing Date, all of the shares of the Issuer are owned by Container Applications Limited, a company organized under the laws of
Barbados.
Section 620. Security Interest Representations.
(a) This Supplement creates a valid and continuing security interest (as defined in the UCC) in the Series 2020-1 Specific Collateral in favor of the
Indenture Trustee, for the benefit of the Series 2020-1 Noteholders, which security interest is prior to all other Liens (other than Permitted Encumbrances), and is enforceable as such as against creditors of and purchasers from the Issuer.
(b) The Managed Containers constitute “goods” or “inventory” within the meaning of the applicable UCC. The Leases constitute “tangible chattel
paper” within the meaning of the UCC. The lease receivables constitute “accounts” or “proceeds” of the Leases within the meaning of the UCC. The Trust Account, the Series 2020-1 Restricted Cash Account, the Excess Funding Account, the Series 2020-1
Defaulted Lease Account, Series 2020-1 Redemption Account, the Series 2020-1 Revenue Reserve Account, the Series 2020-1 L/C Account and the Series 2020-1 Series Account constitute “securities accounts” within the meaning of the UCC. The Issuer’s
contractual rights under the Contribution and Sale Agreement and the Management Agreement constitute “general intangibles” within the meaning of the UCC.
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(c) The Issuer owns and has good and marketable title to the Collateral and the Series-Specific Collateral, free and clear of any Lien (whether
senior, junior or pari passu), claim or encumbrance of any Person, except for Permitted Encumbrances.
(d) The Issuer has caused the filing of all appropriate financing statements or documents of similar import in the proper filing office in the
appropriate jurisdictions under Applicable Law in order to perfect the security interest in the Collateral and any Series-Specific Collateral granted to the Indenture Trustee in this Supplement and the Indenture. All financing statements filed
against the Issuer in favor of the Indenture Trustee in connection herewith describing the Collateral and any Series-Specific Collateral contain a statement to the following effect: “A purchase of or security interest in any collateral described in
this financing statement will violate the rights of the Indenture Trustee.”
(e) Other than the security interest granted to the Indenture Trustee pursuant to this Supplement and the Indenture, the Issuer has not pledged,
assigned, sold, granted a security interest in, or otherwise conveyed any of the Collateral and any Series-Specific Collateral, except as permitted pursuant to the Indenture. The Issuer has not authorized the filing of, and is not aware of, any
financing statements against the Issuer that include a description of collateral covering the Collateral and any Series-Specific Collateral other than any financing statement or document of similar import (i) relating to the security interest granted
to the Indenture Trustee in this Supplement or the Indenture or (ii) that has been terminated. The Issuer is not aware of any judgment or Tax lien filings against the Issuer.
(f) The Issuer has received a written acknowledgment from the Manager that the Manager or an Affiliate thereof is holding the Leases, to the extent
they relate to the Managed Containers, on behalf of, and for the benefit of, the Indenture Trustee and the other Persons set forth in the Indenture. None of the Leases that constitute or evidence the Collateral and any Series-Specific Collateral
have any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person. The Seller has caused the filing of all appropriate financing statements or documents of similar import in the proper filing office in
the appropriate jurisdictions under Applicable Law in order to perfect the security interest of the Issuer (and the Indenture Trustee as its assignee) in the Leases (to the extent that such Leases relate to the Managed Containers) granted to the
Issuer in the Contribution and Sale Agreement.
(g) The Issuer has received all necessary consents and approvals required by the terms of the Collateral and any Series-Specific Collateral to the
pledge to the Indenture Trustee of its interest and rights in such Collateral and any Series-Specific Collateral hereunder or under the Indenture.
(h) The Issuer has taken all steps necessary to cause Wilmington Trust, National Association (in its capacity as securities intermediary) to identify
in its records the Indenture Trustee as the Person having a Securities Entitlement in each of the Trust Account, the Series 2020-1 Restricted Cash Account, the Excess Funding Account, the Series 2020-1 Defaulted Lease Account, the Series 2020-1
Redemption Account, the Series 2020-1 Revenue Reserve Account, the Series 2020-1 L/C Account and the Series 2020-1 Series Account.
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(i) The Trust Account, the Series 2020-1 Restricted Cash Account, the Excess Funding Account, the Series 2020-1 Defaulted Lease Account and Series
2020-1 Series Account are not in the name of any Person other than the Issuer or the Indenture Trustee. The Issuer has not consented to Wilmington Trust, National Association (as the Securities Intermediary of the Trust Account, the Series 2020-1
Restricted Cash Account, the Excess Funding Account, the Series 2020-1 Defaulted Lease Account, the Series 2020-1 Redemption Account, the Series 2020-1 Revenue Reserve Account, the Series 2020-1 L/C Account and the Series 2020-1 Series Account)
entering into any agreement in which it has agreed to comply with entitlement orders of any Person other than the Indenture Trustee.
(j) All Eligible Investments owned by the Issuer have been and will have been credited to one of the Trust Account, the Excess Funding Account, the
Series 2020-1 Restricted Cash Account, the Series 2020-1 Defaulted Lease Account, the Series 2020-1 Redemption Account, the Series 2020-1 Revenue Reserve Account, the Series 2020-1 L/C Account and the Series 2020-1 Series Account. The securities
intermediary for each of the Trust Account, the Excess Funding Account, the Series 2020-1 Defaulted Lease Account, the Series 2020-1 Restricted Cash Account and the Series 2020-1 Series Account has agreed to treat all assets credited to the Trust
Account, the Excess Funding Account, the Series 2020-1 Restricted Cash Account, the Series 2020-1 Defaulted Lease Account and the Series 2020-1 Series Account as “financial assets” within the meaning of the UCC.
(k) The Issuer has delivered to Indenture Trustee a fully executed agreement pursuant to which the securities intermediary has agreed to comply with
all instructions originated by the Indenture Trustee relating to the Trust Account, the Excess Funding Account, the Series 2020-1 Restricted Cash Account, the Series 2020-1 Defaulted Lease Account, the Series 2020-1 Redemption Account, the Series
2020-1 Revenue Reserve Account, the Series 2020-1 L/C Account and the Series 2020-1 Series Account without further consent by the Issuer.
(l) No creditor of the Issuer (other than (x) with respect to the Managed Containers, the related Lessee and (y) the Manager in its capacity as
Manager under the Management Agreement) has in its possession any goods that constitute or evidence the Collateral or any Series-Specific Collateral.
The falsity of any of the representations and warranties set forth in this Section 620 may be waived by the Indenture Trustee, only with the prior written consent of the
Control Party and with the prior satisfaction of the Rating Agency Condition.
Section 621. ERISA Lien. As of the Closing Date, the Issuer has not received notice that any Lien arising under ERISA has been filed against the assets of the Issuer.
Section 622. Survival of Representations and Warranties. So long as any of the Series 2020-1 Notes shall be Outstanding and until payment and performance in full of the Outstanding
Obligations relating to the Series 2020-1 Notes or otherwise under this Supplement, the representations and warranties contained herein shall have a continuing effect as having been true when made.
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ARTICLE VII
Miscellaneous Provisions
Miscellaneous Provisions
Section 701. Ratification of Indenture. As supplemented by this Supplement, the Indenture is in all respects ratified and confirmed and the Indenture as so supplemented by this
Supplement shall be read, taken and construed as one and the same instrument.
Section 702. Counterparts. This Supplement may be executed in two or more counterparts, and by different parties on separate counterparts, each of which shall be an original, but all
of which shall constitute one and the same instrument. Delivery of an executed counterpart of this Supplement by facsimile or by electronic means shall be equally effective as of the delivery of an originally executed counterpart.
Section 703. Governing Law. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW
YORK GENERAL OBLIGATIONS LAWS BUT OTHERWISE WITHOUT REFERENCE TO ITS CONFLICTS OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
Section 704. Notices. All demands, notices and communications hereunder shall be in writing, personally delivered, or by email (with subsequent telephone confirmation of receipt
thereof), or sent by internationally recognized overnight courier service, (a) in the case of the Indenture Trustee, at the following address: 1100 North Market Street, Wilmington, Delaware 19890-1605, Attention: Corporate Trust Administration/Jose
Paredes, Telephone: (302) 636-6191, email: [email protected], (b) in the case of the Issuer, at the following address: Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda, Telephone: (441) 295-5950, email: [email protected],
Attention: Secretary, with a copy to each: (i) CAI at its address at 1 Market Plaza, Suite 2400, San Francisco, CA 94105, Telephone: (415) 788-0100, email: [email protected], with a copy to: [email protected], (ii) Container
Applications Limited at its address at Suite 102, Bush Hill, Bay Street, St. Michael, Barbados, West Indies, Telephone: (246) 430-5310, email: [email protected], Attention: CEO and CFO, with a copy to [email protected], (c) in the case of
S&P Global Ratings, at the following email address: servicer [email protected]; for information that cannot be sent electronically, at the following address: S&P Global Ratings, 55 Water Street, 41st Floor, New York, New
York 10041-0003, Attention: New Asset Surveillance Group, or (d) at such other address as shall be designated by such party in a written notice to the other parties. Any notice required or permitted to be given to a Series 2020-1 Noteholder shall be
given by certified first class mail, postage prepaid (return receipt requested), or by courier, or by email, with subsequent telephone confirmation of receipt thereof, in each case at the address of such Series 2020-1 Noteholder as shown in the Note
Register or to the telephone and email address furnished by such Series 2020‑1 Noteholder. Notice shall be effective and deemed received (A) upon receipt, if sent by courier or U.S. mail, (B) upon receipt of confirmation of receipt, if sent by
email, or (C) when delivered, if delivered by hand. Any rights to notices conveyed to a Rating Agency pursuant to the terms hereof with respect to any Series shall terminate immediately if such Rating Agency no longer has a rating outstanding with
respect to such Series.
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Section 705. Amendments and Modifications.
(a) Subject to the provisions of Sections 705(b) through (e), the
terms of this Supplement may be waived, modified or amended in accordance with the provisions of this Supplement in a written instrument signed by each of the Issuer and the Indenture Trustee. The Indenture Trustee shall be entitled to receive and
rely upon an Opinion of Counsel stating that all conditions precedent specified in the Indenture or this Supplement have been satisfied and that the execution of such waiver, modification or amendment is authorized or permitted by the Indenture and
this Supplement. For purposes of clarification, no change in the Depreciation Policy, for purposes other than calculating the Asset Base, by operation of paragraph (ii) of the definition of “Depreciation Policy” shall be deemed an amendment or
modification to this Supplement subject to the requirements of this Section 705.
(b) Notwithstanding Section 705(a), but subject to Section 705(d),
without the consent of any Holder and based on an Opinion of Counsel in form and substance reasonably acceptable to the Indenture Trustee to the effect that such Supplement is for one of the purposes set forth in clauses (i) through (vii) below, the
Issuer and the Indenture Trustee, at any time and from time to time, may enter into one or more Supplements in form satisfactory to the Indenture Trustee, for any of the following purposes:
(i) to add to the covenants of the Issuer in this Supplement for the benefit of the Series 2020-1 Noteholders, or to surrender
any right or power conferred upon the Issuer in this Supplement;
(ii) to cure any ambiguity, to correct or supplement any provision in this Supplement that may be inconsistent with any other
provision in this Supplement, or to make any other provisions with respect to matters or questions arising under this Supplement;
(iii) to correct or amplify the description of any property at any time subject to the Lien created pursuant to this Supplement, or
better to assure, convey and confirm unto the Indenture Trustee any property subject or required to be subjected to the Lien created pursuant to this Supplement, or to subject additional property to the Lien of this Supplement;
(iv) to add to the conditions, limitations and restrictions on the authorized amount, terms and purposes of issue, authentication
and delivery of the Series 2020-1 Notes, or additional conditions, limitations and restrictions thereafter to be observed by the Issuer with respect to the Series 2020-1 Notes;
(v) to convey, transfer, assign, mortgage or pledge any additional property to the Indenture Trustee for the benefit of the
Series 2020-1 Noteholders;
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(vi) conform to the terms of this Supplement to the terms of the offering memorandum for such Series of Notes;
(vii) to decrease any component of the Class A Advance Rate or the Class B Advance Rate; or
(viii) to add any additional Series-Specific Events of Default, Series-Specific Early Amortization Events or Series-Specific
Manager Defaults for the Series 2020-1 Notes.
(c) If Section 705(b) does not apply to an amendment, modification or waiver of this Supplement, then the
Issuer and the Indenture Trustee (acting at the direction of, and with the consent of, the Series 2020-1 Control Party) may enter into an amendment, modification or waiver for the purpose of adding any provisions to, or changing in any manner or
eliminating any of, the provisions of this Supplement or of modifying in any manner the rights of the Series 2020-1 Noteholders under this Supplement; provided, however, that no such amendment, modification
or waiver shall, without the consent of each Holder of a Series 2020-1 Note affected thereunder:
(i) reduce the principal amount of any Series 2020-1 Note of such Holder, lengthen the Legal Final Payment Date of any Series
2020-1 Note of such Holder, reduce the rate of interest payable on any Series 2020-1 Note of such Holder, amend the allocation methodology or payment priority set forth for payments from the Series 2020-1 Series Account (other than to increase the
amount of any allocation) or change the date on which or the amount of which, or the place of payment where, or the coin or currency in which, any Series 2020-1 Note of such Holder or the interest thereon, is payable, or impair the right of such
Holder to institute suit for the enforcement of any such payment on or after the Legal Final Payment Date of any Series 2020-1 Note of such Holder;
(ii) modify any provision of this Supplement which specifies that such provision cannot be modified or waived without the consent
of each Series 2020-1 Noteholder affected thereby;
(iii) modify or alter this proviso;
(iv) amend the definition of “Class A Asset Base” or “Series 2020-1 Asset Base” (provided, however, that an amendment to the
Depreciation Policy in accordance with the terms of the Indenture shall not be deemed to constitute an amendment to the definition of “Class A Asset Base” or “Series 2020-1 Asset Base”), “Series 2020-1 Asset Allocation Percentage”, “Series 2020-1
Required Overcollateralization Percentage” or “Control Party” or to increase either the Class A Advance Rate or the Class B Advance Rate; or
(v) permit the creation of any Lien ranking prior to, or on a parity with, the Lien in the Series-Specific Collateral for Series
2020-1 created pursuant to this Supplement or terminate the Lien in the Series-Specific Collateral for Series 2020-1 on any property at any time subject to the Lien in the Series-Specific Collateral for Series 2020-1 or deprive in any material
respect the Series 2020-1 Noteholders of the security afforded by the Lien in the Series-Specific Collateral for Series 2020-1, except as otherwise permitted in this Supplement.
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In addition, to the foregoing, any amendment to any of the Series 2020-1 Manager Defaults, the Series 2020-1 Management Fee or the Back-up Manager Events shall require the prior written consent of
the Manager, the Performance Guarantor and the Sub-Manager.
(d) The obligation of the Indenture Trustee to execute and deliver a waiver, modification or amendment with respect to this Supplement is subject to
the satisfaction of all of the following conditions:
(i) the Issuer shall have given the Indenture Trustee and the Manager not less than two days’ notice of such amendment and a
copy of such proposed amendment, it being understood that the Indenture Trustee and the Manager from time to time may waive the right to receive such notice;
(ii) such amendment either (A) will not result in a Trust Early Amortization Event or a Trust Event of Default or cause the
Aggregate Required Asset Base to exceed the Aggregate Asset Base (in each case calculated after giving effect to such proposed amendment) or (B) in all other cases shall have been approved in accordance with the terms of the Indenture, and in either
case the Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate stating the foregoing;
(iii) such other conditions as shall be specified in such amendment; and
(iv) the Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate that all of the conditions specified in
clauses (i) through (iii) have been satisfied.
(e) The provisions of Sections 401, 402 and 403 may be waived or
amended in accordance with the provisions of such Sections.
(f) Prior to the execution of any written instrument pursuant to this Section 705, the Issuer shall provide
a written notice to the Rating Agency (if any) setting forth in general terms the substance of any such written instrument.
(g) Promptly after the execution by the Issuer and the Indenture Trustee of any written instrument pursuant to this Section 705, the Indenture Trustee shall mail to the Series 2020-1 Noteholders and the Rating Agency (if any) a copy of the text of such written instrument. Any failure of the Indenture Trustee to mail such copy, or any defect
therein, shall not, however, in any way impair or affect the validity of any such written instrument.
(h) (i) Any amendment or waiver of any Series-Specific Early Amortization Event, Series-Specific Manager Default or Series-Specific Event of
Default in accordance with this Section 705 shall be effective for purposes of all Series of Notes (and, similarly, any amendment or waiver of any Series-Specific Early Amortization Event for any other Series
of Notes, Series-Specific Manager Default for any other Series of Notes or Series-Specific Event of Default for any other Series of Notes in accordance with the provisions of the related Supplement shall be effective for purposes of the Series 2020-1
Notes).
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(ii) Any amendment or waiver of any Trust Early Amortization Event, Trust Manager Default or Trust Event of Default in accordance
with this Section 705 shall be effective as applied to Series 2020-1 only (and not for purposes of any other Series of Notes), unless similarly amended or waived in accordance with the Indenture or the related
Supplement for any other Series of Notes.
Section 706. Consent to Jurisdiction. ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST THE ISSUER ARISING OUT OF OR RELATING TO THIS SUPPLEMENT, OR ANY TRANSACTION CONTEMPLATED HEREBY,
MAY BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, STATE OF NEW YORK AND THE ISSUER HEREBY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND, SOLELY FOR
THE PURPOSES OF ENFORCING THIS SUPPLEMENT, THE ISSUER HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING.
Section 707. Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, AS AGAINST THE OTHER PARTIES HERETO, ANY RIGHTS IT MAY HAVE TO A JURY TRIAL IN RESPECT OF ANY
CIVIL ACTION OR PROCEEDING (WHETHER ARISING IN CONTRACT OR TORT OR OTHERWISE), INCLUDING ANY COUNTERCLAIM, ARISING UNDER OR RELATING TO THIS SUPPLEMENT OR ANY OTHER SERIES 2020-1 RELATED DOCUMENT, INCLUDING IN RESPECT OF THE NEGOTIATION,
ADMINISTRATION OR ENFORCEMENT HEREOF OR THEREOF.
Section 708. Successors. This Supplement shall inure to the benefit of and be binding upon the Issuer, the Indenture Trustee and, by its acceptance of any Series 2020-1 Note or any
legal or beneficial interest therein, each Series 2020-1 Noteholder, and each of such Person’s successors and assigns.
Section 709. Nonpetition Covenant. Each Series 2020-1 Noteholder by its acquisition of a Series 2020-1 Note shall be deemed to covenant and agree that it will not institute against
the Issuer any bankruptcy, reorganization, arrangement insolvency or liquidation Proceedings, or other Proceedings under any federal or state bankruptcy or similar law, at any time other than on a date which is at least one (1) year and one (1) day
after the last date on which any Note of any Series was Outstanding.
Section 710. Recourse Against the Issuer. No recourse under or with respect to any obligation, covenant or agreement (including, without limitation, the payment of any fees or any
other obligations) of the Issuer as contained in this Supplement or any other agreement, instrument or document entered into by the Issuer pursuant hereto or in connection herewith shall be had against any administrator of the Issuer or any
incorporator, affiliate, shareholder, officer, employee, manager or director of the Issuer or of any such administrator, as such, by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute or otherwise; it
being expressly agreed and understood that the agreements of the Issuer contained in this Supplement and all of the other agreements, instruments and documents entered into by the Issuer pursuant hereto or in connection herewith are, in each case,
solely the corporate obligations of the Issuer, and that no personal liability whatsoever shall attach to or be incurred by any administrator of the Issuer or any incorporator, shareholder, affiliate, officer, employee, manager or director of the
Issuer or of any such administrator, as such, or any other of them, under or by reason of any of the obligations, covenants or agreements of the Issuer contained in this Supplement or in any other such instruments, documents or agreements, or which
are implied therefrom, and that any and all personal liability of every such administrator of the Issuer and each incorporator, shareholder, affiliate, officer, employee, manager or director of the Issuer or of any such administrator, as such, or any
of them, for breaches by the Issuer of any such obligations, covenants or agreements, which liability may arise either at common law or at equity, by statute or constitution, or otherwise, is hereby expressly waived as a condition of and in
consideration for the execution of this Supplement. The provisions of this Section 710 shall survive the termination of this Supplement.
59
Section 711. Reports, Financial Statements and Other Information to Series 2020-1 Noteholders. The Indenture Trustee will make each monthly statement available to the Noteholders via the Indenture Trustee’s internet website at http://www.wilmingtontrustconnect.com. For assistance with regard to this service,
investors may call the Indenture Trustee’s corporate trust office at (866) 829-1928. The Indenture Trustee will make available promptly upon receipt thereof to the Series 2020-1 Noteholders via the Indenture Trustee’s internet website at http://www.wilmingtontrustconnect.com the
financial statements referred to in Section 8.2 of the Management Agreement, the Manager Report, the Asset Base Report, and the annual insurance confirmation; provided, that, as a condition to access to the
Indenture Trustee’s website, the Indenture Trustee shall require each such Series 2020-1 Noteholder to execute the Indenture Trustee’s standard form documentation, and upon such execution, each such Series 2020-1 Noteholder shall be deemed to have
certified to the Indenture Trustee it (i) is a Series 2020-1 Noteholder, (ii) understands that such items contain material nonpublic information (within the meaning of U.S. Federal Securities laws), (iii) is requesting the information solely for
use in evaluating such party’s investment in the Series 2020-1 Notes and will keep such information strictly confidential (with such exceptions and restrictions to distribution of the information as are more fully set forth in the information
request certification) and (iv) is not a Competitor. Each time a Series 2020-1 Noteholder accesses the internet website, it will be deemed to have confirmed the representations and warranties made pursuant to the confirmation as of the date of
such access. The Indenture Trustee will provide the Issuer with copies of such information request certification. The Indenture Trustee makes no representation or warranty as to the accuracy of such documents and assumes no responsibility.
Section 712. Patriot Act. The parties hereto acknowledge that in accordance with the Customer Identification Program (CIP) requirements under the USA PATRIOT Act and its implementing
regulations, the Indenture Trustee in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an
account with the Indenture Trustee. Each party hereby agrees that it shall provide the Indenture Trustee with such information as the Indenture Trustee may request that will help Indenture Trustee to identify and verify each party’s identity,
including without limitation each party’s name, physical address, tax identification number, organizational documents, certificate of good standing, license to do business, or other pertinent identifying information.
60
Section 713. Definitive Notes. To the extent that Definitive Notes are issued hereunder, each relevant Series 2020-1 Noteholder provide Noteholder Tax Identification Information
(including, if requested, a transfer statement in accordance with Treasury Regulation section 1.6045A-1(a)(1)) requested by the Indenture Trustee to comply with its cost basis reporting obligations under the Code. Each Noteholder or holder of an
interest in a Note, by acceptance of such Series 2020-1 Note or such interest in such Series 2020-1 Note, will be deemed to have agreed to provide the Issuer and the Indenture Trustee with such Noteholder Tax Identification Information referred to in
the preceding sentence as requested from time to time by the Issuer or the Indenture Trustee.
Section 714. Noteholder Information. Each Noteholder or holder of an interest in a Series 2020-1 Note, by acceptance of such Series 2020-1 Note or such interest in such Series 2020-1
Note, will be deemed to have agreed to provide the Issuer and the Indenture Trustee with such Noteholder Tax Identification Information as requested from time to time by the Issuer or the Indenture Trustee. Each Noteholder or holder of an interest
in a Series 2020-1 Note will be deemed to understand that each of the Issuer and the Indenture Trustee has the right to (i) withhold tax (including, without limitation, FATCA Withholding Tax) on interest and other applicable amounts under the Code
(without any corresponding gross-up) payable with respect to each holder of a Series 2020-1 Note, or to any beneficial owner of an interest in a Series 2020-1 Note, that fails to comply with the foregoing requirements, fails to establish an exemption
of such withholding or as otherwise required under the Code or other Applicable Law (including, for the avoidance of doubt, FATCA) and (ii) provide such information and documentation and any other information concerning its interest in the applicable
Series 2020-1 Note to the IRS and any other relevant U.S. or foreign tax authority. Upon request from the Indenture Trustee, the Issuer will provide such additional information that it may have to assist the Indenture Trustee in making any
withholdings or informational reports.
[Signature pages follow]
61
IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused this Supplement to be duly executed and delivered by their respective officers all as of the day and year first above written.
CAL FUNDING IV LIMITED
|
|
By:
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/s/ Timothy B. Page
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Name:
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Timothy B. Page
|
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Title:
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Chief Financial Officer
|
Series 2020-1 Supplement
WILMINGTON TRUST, NATIONAL
ASSOCIATION, as Indenture Trustee
|
By:
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/s/ Jose Paredes
|
Name:
|
Jose Paredes
|
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Title:
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Assistant Vice President
|
Series 2020-1 Supplement
Acknowledged by:
|
CONTAINER APPLICATIONS LIMITED,
|
as Manager
|
By:
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/s/ Timothy B. Page
|
Name:
|
Timothy B. Page
|
|
Title:
|
Chief Financial Officer
|
Acknowledged by:
|
CAI INTERNATIONAL INC.,
|
as Sub-Manager
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By:
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/s/ Timothy B. Page
|
|
Name:
|
Timothy B. Page
|
|
Title:
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Interim President and Chief Executive Officer
|
Series 2020-1 Supplement
EXHIBIT A-1
FORM OF 144A BOOK-ENTRY NOTE
UNLESS THIS SERIES 2020-1 NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRANSFEROR OF SUCH NOTE (THE “TRANSFEROR”) OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SERIES 2020-1 NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR THE USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.
THIS SERIES 2020-1 NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THE HOLDER HEREOF, BY PURCHASING THIS SERIES 2020-1 NOTE, AGREES THAT SUCH SERIES
2020-1 NOTE MAY BE RESOLD, PLEDGED OR TRANSFERRED ONLY IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS AND (1) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON THAT TAKES DELIVERY OF
SUCH SERIES 2020-1 NOTE IN AN AMOUNT OF AT LEAST $250,000 AND THAT THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT (OR FOR THE ACCOUNT OR ACCOUNTS OF A QUALIFIED INSTITUTIONAL BUYER) AND TO WHOM
NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (2) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT WITH SUCH SERIES 2020-1 NOTE IN AN AMOUNT
OF AT LEAST $250,000 OR (3) TO A PERSON (A) THAT IS AN INSTITUTIONAL “ACCREDITED INVESTOR,” WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT, IS TAKING DELIVERY OF SUCH SERIES 2020-1 NOTE IN AN AMOUNT OF
AT LEAST $250,000 AND DELIVERS TO THE INDENTURE TRUSTEE A LETTER SUBSTANTIALLY IN THE FORM OF EXHIBIT C TO THE INDENTURE OR (B) THAT IS TAKING DELIVERY OF SUCH SERIES 2020-1 NOTE IN AN AMOUNT OF AT LEAST $250,000 PURSUANT TO A TRANSACTION THAT IS
OTHERWISE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND FROM ANY APPLICABLE STATE LAW SECURITIES REGISTRATION OR QUALIFICATION REQUIREMENTS, AS CONFIRMED IN AN OPINION OF COUNSEL ADDRESSED TO THE INDENTURE TRUSTEE AND THE
ISSUER, WHICH COUNSEL AND OPINION ARE SATISFACTORY TO THE ISSUER AND THE INDENTURE TRUSTEE.
1
EACH PURCHASER AND TRANSFEREE (AND ITS FIDUCIARY, IF APPLICABLE) OF A SERIES 2020-1 NOTE (OR INTEREST HEREIN) WILL BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (I) IT IS NOT ACQUIRING AND WILL NOT
HOLD THE SERIES 2020-1 NOTE WITH THE PLAN ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), WHICH IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, A “PLAN”
DESCRIBED IN AND SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” OF ANY OF THE FOREGOING BY REASON OF AN EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN
SUCH ENTITY (EACH OF THE FOREGOING, A “BENEFIT PLAN”) OR ANY OTHER PLAN THAT IS SUBJECT TO A LAW THAT IS SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE OR (II) (A) THE SERIES 2020-1 NOTES ARE RATED INVESTMENT GRADE OR BETTER AND HAVE NOT
BEEN CHARACTERIZED AS OTHER THAN INDEBTEDNESS FOR APPLICABLE LOCAL LAW PURPOSES AND (B) THE ACQUISITION, HOLDING AND DISPOSITION OF THE SERIES 2020-1 NOTE WILL NOT GIVE RISE TO A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA, SECTION
4975 OF THE CODE OR A VIOLATION OF ANY SIMILAR APPLICABLE LAW.
THIS SERIES 2020-1 NOTE IS NOT GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.
2
CAL FUNDING IV LIMITED
FIXED RATE ASSET-BACKED NOTES, SERIES 2020-1, [CLASS A][CLASS B]
$[XX]
|
CUSIP No.: _____________
|
No. 1
|
|
_____________ ___, 20___
|
KNOW ALL PERSONS BY THESE PRESENTS that CAL Funding IV Limited, a company incorporated under the laws of Bermuda (the “Issuer”), for value received, hereby promises to pay to Cede & Co.,
or its registered assigns, at the principal corporate trust office of the Indenture Trustee named below, (i) the principal sum of up to XX.00 Dollars ($XX.00), which sum shall be payable on the dates and in the amounts set forth in the Indenture,
dated as of September 9, 2020 (as amended, restated, supplemented or otherwise modified from time to time in accordance with its terms, the “Indenture”), and the Series 2020-1 Supplement, dated as of September 9, 2020 (as amended, restated,
supplemented or otherwise modified from time to time in accordance with its terms, the “Series 2020-1 Supplement”), each between the Issuer and Wilmington Trust, National Association, as indenture trustee (the “Indenture Trustee”), and
(ii) interest on the outstanding principal amount of this Series 2020-1 Note on the dates and in the amounts set forth in the Indenture and the Series 2020-1 Supplement. Capitalized terms not otherwise defined herein will have the meaning set forth
in the Indenture and the Series 2020-1 Supplement.
Payment of the principal of and interest on this Series 2020-1 Note shall be made in lawful money of the United States of America which at the time of payment is legal tender for payment of public
and private debts. The principal balance of, and interest on this Series 2020-1 Note is payable at the times and in the amounts set forth in the Indenture and the 2020-1 Supplement by wire transfer of immediately available funds to the account
designated by the Holder of record on the immediately preceding Record Date.
This Series 2020-1 Note is one of the authorized Notes identified in the title hereto and issued in the aggregate principal amount of up to [ ] Dollars ($[ ]) pursuant to the Indenture and the
Series 2020-1 Supplement.
The Notes shall be an obligation of the Issuer and shall be secured by the Collateral, all as defined in, and subject to limitations set forth in, the Indenture and the Series 2020-1 Supplement.
This Series 2020-1 Note is transferable as provided in the Indenture and the Series 2020-1 Supplement, subject to certain limitations therein contained, only upon the books for registration and
transfer kept by the Indenture Trustee, and only upon surrender of this Series 2020-1 Note for transfer to the Indenture Trustee duly endorsed by, or accompanied by a written instrument of transfer in form reasonably satisfactory to the Indenture
Trustee duly executed by, the registered Holder hereof or his attorney duly authorized in writing. The Indenture Trustee or the Issuer may require payment by the Holder of a sum sufficient to cover any tax expense or other governmental charge
payable in connection with any transfer or exchange of the Notes.
3
The Issuer, the Indenture Trustee and any other agent of the Issuer may treat the Person in whose name this Series 2020-1 Note is registered as the absolute owner hereof for all purposes, and neither
the Issuer, the Indenture Trustee, nor any other such agent shall be affected by notice to the contrary.
The Notes are subject to Prepayment, at the times and subject to the conditions set forth in the Indenture and the Series 2020-1 Supplement.
If an Event of Default shall occur and be continuing, the principal of and accrued interest on this Series 2020-1 Note may be declared to be due and payable in the manner and with the effect provided
in the Indenture and the Series 2020-1 Supplement.
The Indenture permits, with certain exceptions as therein provided, the issuance of supplemental indentures with the consent of the Requisite Global Majority, in certain specifically described
instances. Any consent given by the Requisite Global Majority shall be conclusive and binding upon the Holder of this Series 2020-1 Note and on all future holders of this Series 2020-1 Note and of any Note issued in lieu hereof whether or not
notation of such consent is made upon this Series 2020-1 Note. Supplements and amendments to the Indenture and the Series 2020-1 Supplement may be made only to the extent and in circumstances permitted by the Indenture and the Series 2020-1
Supplement.
The Holder of this Series 2020-1 Note shall have no right to enforce the provisions of the Indenture and the Series 2020-1 Supplement or to institute action to enforce the covenants, or to take any
action with respect to a default under the Indenture and the Series 2020-1 Supplement, or to institute, appear in or defend any suit or other Proceedings with respect thereto, except as provided under certain circumstances described in the Indenture
and the Series 2020-1 Supplement; provided, however, that nothing contained in the Indenture and the Series 2020-1 Supplement shall affect or impair any right of enforcement conferred on the Holder hereof to enforce any payment of the principal of
and interest on this Series 2020-1 Note on or after the due date thereof; provided further, however, that by acceptance hereof the Holder is deemed to have covenanted and agreed that it will not institute against the Issuer any bankruptcy,
reorganization, arrangement, insolvency or liquidation Proceedings, or other Proceedings under any applicable bankruptcy or similar law, at any time other than at such time as permitted by Section 1310 of the Indenture and the Series 2020-1
Supplement.
Each Purchaser and Transferee (and its fiduciary, if applicable) of a Series 2020-1 Note (or interest therein) will be deemed to represent and warrant that either (I) It is not acquiring and will not
hold the Series 2020-1 Note with the Plan assets of an “Employee Benefit Plan” as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) which is subject to the provisions of Title I of ERISA, a “Plan”
described in and subject to Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”), an entity whose underlying assets include “Plan Assets” of any of the foregoing by reason of an Employee Benefit Plan’s or Plan’s investment in
such entity (each of the foregoing, a “Benefit Plan”) or any other plan that is subject to a law that is similar to Title I of ERISA or Section 4979 of the Code, or (II) (A) the Series 2020-1 Notes are rated investment grade or better and have not
been characterized as other than indebtedness for applicable local law purposes and (B) the acquisition, holding and disposition of the Series 2020-1 Note will not give rise to a non-exempt prohibited transaction under Section 406 of ERISA, Section
4975 of the Code or a violation of any similar applicable law.
4
Each Holder of a Series 2020-1 Note (i) agrees to treat this Series 2020-1 Note for United States federal, state and local income, single business and franchise tax purposes as indebtedness, (ii)
agrees that the Series 2020-1 Note shall not have any interest in any Series Account of any other Series or Class and (iii) ratifies and confirms the terms of the Indenture and the other Series 2020-1 Related Documents.
This Series 2020-1 Note, and the rights and obligations of the parties hereunder, shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York without
giving effect to the principles of conflict of laws thereof (other than Section 5-1401 of the New York General Obligations Law) that would permit or require the application of the law of any other jurisdiction.
All terms and provisions of the Indenture and the Series 2020-1 Supplement are herein incorporated by reference as if set forth herein in their entirety. To the extent any provision of this Series
2020-1 Note conflicts or is inconsistent with the provisions of the Indenture or the Series 2020-1 Supplement, the provisions of the Indenture or Series 2020-1 Supplement, as applicable, shall govern and be controlling.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED, that all acts, conditions and things required to exist, happen and be performed precedent to the execution and delivery of the Indenture and the Series
2020-1 Supplement and the issuance of this Series 2020-1 Note and the issue of which it is a part, do exist, have happened and have been timely performed in regular form and manner as required by law.
Unless the certificate of authentication hereon has been executed by the Indenture Trustee by manual signature of one of its authorized officers, this Series 2020-1 Note shall not be entitled to any
benefit under the Indenture and the Series 2020-1 Supplement, or be valid or obligatory for any purpose.
5
IN WITNESS WHEREOF, CAL FUNDING IV LIMITED has caused this Series 2020-1 Note to be duly executed by its duly authorized representative, on this 9th day of September 2020.
CAL FUNDING IV LIMITED
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||
By:
|
||
Name:
|
||
Title:
|
This Series 2020-1 Note is one of the Notes described in the within-mentioned Indenture and the Series 2020-1 Supplement.
WILMINGTON TRUST, NATIONAL ASSOCIATION,
|
||
as Indenture Trustee
|
||
By:
|
||
Name:
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||
Title:
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EXHIBIT A-2
FORM OF REGULATION S TEMPORARY BOOK-ENTRY NOTE
UNLESS THIS SERIES 2020-1 NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRANSFEROR OF SUCH NOTE (THE “TRANSFEROR”) OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SERIES 2020-1 NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR THE USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.
THIS SERIES 2020-1 NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THE HOLDER HEREOF, BY PURCHASING THIS SERIES 2020-1 NOTE, AGREES THAT SUCH SERIES
2020-1 NOTE MAY BE RESOLD, PLEDGED OR TRANSFERRED ONLY IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS AND (1) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON THAT TAKES DELIVERY OF
SUCH SERIES 2020-1 NOTE IN AN AMOUNT OF AT LEAST $250,000 AND THAT THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT (OR FOR THE ACCOUNT OR ACCOUNTS OF A QUALIFIED INSTITUTIONAL BUYER) AND TO WHOM
NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (2) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT WITH SUCH SERIES 2020-1 NOTE IN AN AMOUNT
OF AT LEAST $250,000 OR (3) TO A PERSON (A) THAT IS AN INSTITUTIONAL “ACCREDITED INVESTOR,” WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT, IS TAKING DELIVERY OF SUCH SERIES 2020-1 NOTE IN AN AMOUNT OF
AT LEAST $250,000 AND DELIVERS TO THE INDENTURE TRUSTEE A LETTER SUBSTANTIALLY IN THE FORM OF EXHIBIT D TO THE INDENTURE OR (B) THAT IS TAKING DELIVERY OF SUCH SERIES 2020-1 NOTE IN AN AMOUNT OF AT LEAST $250,000 PURSUANT TO A TRANSACTION THAT IS
OTHERWISE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND FROM ANY APPLICABLE STATE LAW SECURITIES REGISTRATION OR QUALIFICATION REQUIREMENTS, AS CONFIRMED IN AN OPINION OF COUNSEL ADDRESSED TO THE INDENTURE TRUSTEE AND THE
ISSUER, WHICH COUNSEL AND OPINION ARE SATISFACTORY TO THE ISSUER AND THE INDENTURE TRUSTEE.
1
EACH PURCHASER AND TRANSFEREE (AND ITS FIDUCIARY, IF APPLICABLE) OF A SERIES 2020-1 NOTE (OR INTEREST HEREIN) WILL BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (I) IT IS NOT ACQUIRING AND WILL NOT
HOLD THE SERIES 2020-1 NOTE WITH THE PLAN ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), WHICH IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, A “PLAN”
DESCRIBED IN AND SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” OF ANY OF THE FOREGOING BY REASON OF AN EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN
SUCH ENTITY (EACH OF THE FOREGOING, A “BENEFIT PLAN”) OR ANY OTHER PLAN THAT IS SUBJECT TO A LAW THAT IS SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE OR (II) (A) THE SERIES 2020-1 NOTES ARE RATED INVESTMENT GRADE OR BETTER AND HAVE NOT
BEEN CHARACTERIZED AS OTHER THAN INDEBTEDNESS FOR APPLICABLE LOCAL LAW PURPOSES AND (B) THE ACQUISITION, HOLDING AND DISPOSITION OF THE SERIES 2020-1 NOTE WILL NOT GIVE RISE TO A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA, SECTION
4975 OF THE CODE OR A VIOLATION OF ANY SIMILAR APPLICABLE LAW.
EACH INVESTOR THAT IS A PERSON WHO IS NOT A U.S. PERSON AND TO WHOM THE OFFER AND SALE OF THE SERIES 2020-1 NOTES MAY BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT IN RELIANCE UPON REGULATION
S (“PERMITTED NON-U.S. PERSON”) UNDERSTANDS THAT THE SERIES 2020-1 NOTES HAVE NOT AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT, THAT ANY OFFERS, SALES OR DELIVERIES OF THE SERIES 2020-1 NOTES PURCHASED BY IT IN THE UNITED STATES OR TO U.S.
PERSONS PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF (I) THE COMMENCEMENT OF THE DISTRIBUTION OF THE SERIES 2020-1 NOTES AND (II) THE CLOSING DATE, MAY CONSTITUTE A VIOLATION OF UNITED STATES LAW, AND THAT DISTRIBUTIONS OF PRINCIPAL AND
INTEREST WILL BE MADE IN RESPECT OF SUCH SERIES 2020-1 NOTES ONLY FOLLOWING THE DELIVERY BY THE HOLDER OF A CERTIFICATION OF NON-U.S. BENEFICIAL OWNERSHIP OR THE EXCHANGE OF BENEFICIAL INTEREST IN REGULATION S TEMPORARY BOOK-ENTRY NOTES FOR
BENEFICIAL INTERESTS IN THE RELATED UNRESTRICTED BOOK-ENTRY NOTES (WHICH IN EACH CASE WILL ITSELF REQUIRE A CERTIFICATION OF NON-U.S. BENEFICIAL OWNERSHIP), AT THE TIMES AND IN THE MANNER SET FORTH IN THE INDENTURE AND THE SUPPLEMENT.
2
THIS SERIES 2020-1 NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND, PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF (I) THE
COMPLETION OF THE DISTRIBUTION OF THE SERIES 2020-1 NOTES AND (II) THE CLOSING DATE, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT.
THIS SERIES 2020-1 NOTE IS NOT GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.
3
CAL FUNDING IV LIMITED
FIXED RATE ASSET-BACKED NOTES, SERIES 2020-1, [CLASS A][CLASS B]
$[XX]
|
CUSIP No.: _____________
|
No. 1
|
|
_____________ ___, 20___
|
KNOW ALL PERSONS BY THESE PRESENTS that CAL Funding IV Limited, a company incorporated under the laws of Bermuda (the “Issuer”), for value received, hereby promises to pay to Cede & Co.,
or its registered assigns, at the principal corporate trust office of the Indenture Trustee named below, (i) the principal sum of up to XX Dollars ($XX.00), which sum shall be payable on the dates and in the amounts set forth in the Indenture, dated
as of September 9, 2020 (as amended, restated, supplemented or otherwise modified from time to time in accordance with its terms, the “Indenture”), and the Series 2020-1 Supplement, dated as of September 9, 2020 (as amended, restated,
supplemented or otherwise modified from time to time in accordance with its terms, the “Series 2020-1 Supplement”), each between the Issuer and Wilmington Trust, National Association, as indenture trustee (the “Indenture Trustee”), and
(ii) interest on the outstanding principal amount of this Series 2020-1 Note on the dates and in the amounts set forth in the Indenture and the Series 2020-1 Supplement. Capitalized terms not otherwise defined herein will have the meaning set forth
in the Indenture and the Series 2020-1 Supplement.
Payment of the principal of and interest on this Series 2020-1 Note shall be made in lawful money of the United States of America which at the time of payment is legal tender for payment of public
and private debts. The principal balance of, and interest on this Series 2020-1 Note is payable at the times and in the amounts set forth in the Indenture and the 2020-2 Supplement by wire transfer of immediately available funds to the account
designated by the Holder of record on the immediately preceding Record Date.
This Series 2020-1 Note is one of the authorized Notes identified in the title hereto and issued in the aggregate principal amount of up to [ ] Dollars ($[ ]) pursuant to the Indenture and the
Series 2020-1 Supplement.
The Notes shall be an obligation of the Issuer and shall be secured by the Collateral, all as defined in, and subject to limitations set forth in, the Indenture and the Series 2020-1 Supplement.
This Series 2020-1 Note is transferable as provided in the Indenture and the Series 2020-1 Supplement, subject to certain limitations therein contained, only upon the books for registration and
transfer kept by the Indenture Trustee, and only upon surrender of this Series 2020-1 Note for transfer to the Indenture Trustee duly endorsed by, or accompanied by a written instrument of transfer in form reasonably satisfactory to the Indenture
Trustee duly executed by, the registered Holder hereof or his attorney duly authorized in writing. The Indenture Trustee or the Issuer may require payment by the Holder of a sum sufficient to cover any tax expense or other governmental charge
payable in connection with any transfer or exchange of the Notes.
4
The Issuer, the Indenture Trustee and any other agent of the Issuer may treat the Person in whose name this Series 2020-1 Note is registered as the absolute owner hereof for all purposes, and neither
the Issuer, the Indenture Trustee, nor any other such agent shall be affected by notice to the contrary.
The Notes are subject to Prepayment, at the times and subject to the conditions set forth in the Indenture and the Series 2020-1 Supplement.
If an Event of Default shall occur and be continuing, the principal of and accrued interest on this Series 2020-1 Note may be declared to be due and payable in the manner and with the effect provided
in the Indenture and the Series 2020-1 Supplement.
The Indenture permits, with certain exceptions as therein provided, the issuance of supplemental indentures with the consent of the Requisite Global Majority, in certain specifically described
instances. Any consent given by the Requisite Global Majority shall be conclusive and binding upon the Holder of this Series 2020-1 Note and on all future holders of this Series 2020-1 Note and of any Note issued in lieu hereof whether or not
notation of such consent is made upon this Series 2020-1 Note. Supplements and amendments to the Indenture and the Series 2020-1 Supplement may be made only to the extent and in circumstances permitted by the Indenture and the Series 2020-1
Supplement.
The Holder of this Series 2020-1 Note shall have no right to enforce the provisions of the Indenture and the Series 2020-1 Supplement or to institute action to enforce the covenants, or to take any
action with respect to a default under the Indenture and the Series 2020-1 Supplement, or to institute, appear in or defend any suit or other Proceedings with respect thereto, except as provided under certain circumstances described in the Indenture
and the Series 2020-1 Supplement; provided, however, that nothing contained in the Indenture and the Series 2020-1 Supplement shall affect or impair any right of enforcement conferred on the Holder hereof to enforce any payment of the principal of
and interest on this Series 2020-1 Note on or after the due date thereof; provided further, however, that by acceptance hereof the Holder is deemed to have covenanted and agreed that it will not institute against the Issuer any bankruptcy,
reorganization, arrangement, insolvency or liquidation Proceedings, or other Proceedings under any applicable bankruptcy or similar law, at any time other than at such time as permitted by Section 1311 of the Indenture and the Series 2020-1
Supplement.
Each purchaser and transferee of a Series 2020-1 Note will be deemed to represent and warrant that either (i) it is not acquiring and will not hold the Series 2020-1 Note with the plan assets of an
“employee benefit plan” as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), which is subject to the provisions of Title I of ERISA, a “plan” described in and subject to Section 4975 of the Internal
Revenue Code of 1986, as amended (the “Code”), an entity whose underlying assets include “plan assets” of any of the foregoing by reason of an employee benefit plan’s or plan’s investment in such entity (each of the foregoing, a “Plan”), or any other
plan that is subject to a law that is similar to Title I of ERISA or Section 4975 of the Code or (ii) (a) the Series 2020-1 Notes are rated investment grade or better and have not been characterized as other than indebtedness for applicable local law
purposes and (b) the acquisition, holding and disposition of the Series 2020-1 Note will not give rise to a non-exempt prohibited transaction under Section 406 of ERISA, Section 4975 of the Code or a violation of any similar applicable law.
5
Each Holder of a Series 2020-1 Note (i) agrees to treat this Series 2020-1 Note for United States federal, state and local income, single business and franchise tax purposes as indebtedness, (ii)
agrees that the Series 2020-1 Note shall not have any interest in any Series Account of any other Series or Class and (iii) ratifies and confirms the terms of the Indenture and the other Series 2020-1 Related Documents.
This Series 2020-1 Note, and the rights and obligations of the parties hereunder, shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York without
giving effect to the principles of conflict of laws thereof (other than Section 5-1401 of the New York General Obligations Law) that would permit or require the application of the law of any other jurisdiction.
All terms and provisions of the Indenture and the Series 2020-1 Supplement are herein incorporated by reference as if set forth herein in their entirety. To the extent any provision of this Series
2020-1 Note conflicts or is inconsistent with the provisions of the Indenture or the Series 2020-1 Supplement, the provisions of the Indenture or Series 2020-1 Supplement, as applicable, shall govern and be controlling.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED, that all acts, conditions and things required to exist, happen and be performed precedent to the execution and delivery of the Indenture and the Series
2020-1 Supplement and the issuance of this Series 2020-1 Note and the issue of which it is a part, do exist, have happened and have been timely performed in regular form and manner as required by law.
Unless the certificate of authentication hereon has been executed by the Indenture Trustee by manual signature of one of its authorized officers, this Series 2020-1 Note shall not be entitled to any
benefit under the Indenture and the Series 2020-1 Supplement, or be valid or obligatory for any purpose.
6
IN WITNESS WHEREOF, CAL FUNDING IV LIMITED has caused this Series 2020-1 Note to be duly executed by its duly authorized representative, on this 9th day of September 2020.
CAL FUNDING IV LIMITED
|
||
By:
|
||
Name:
|
||
Title:
|
This Series 2020-1 Note is one of the Notes described in the within-mentioned Indenture and the Series 2020-1 Supplement.
WILMINGTON TRUST, NATIONAL ASSOCIATION,
|
||
as Indenture Trustee
|
||
By:
|
||
Name:
|
||
Title:
|
EXHIBIT A-3
FORM OF UNRESTRICTED BOOK-ENTRY NOTE
UNLESS THIS SERIES 2020-1 NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRANSFEROR OF SUCH NOTE (THE “TRANSFEROR”) OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SERIES 2020-1 NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR THE USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.
THIS SERIES 2020-1 NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THE HOLDER HEREOF, BY PURCHASING THIS SERIES 2020-1 NOTE, AGREES THAT SUCH SERIES
2020-1 NOTE MAY BE RESOLD, PLEDGED OR TRANSFERRED ONLY IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS AND (1) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON THAT TAKES DELIVERY OF
SUCH SERIES 2020-1 NOTE IN AN AMOUNT OF AT LEAST $250,000 AND THAT THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT (OR FOR THE ACCOUNT OR ACCOUNTS OF A QUALIFIED INSTITUTIONAL BUYER) AND TO WHOM
NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (2) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT WITH SUCH SERIES 2020-1 NOTE IN AN AMOUNT
OF AT LEAST $250,000 OR (3) TO A PERSON (A) THAT IS AN INSTITUTIONAL “ACCREDITED INVESTOR,” WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT, IS TAKING DELIVERY OF SUCH SERIES 2020-1 NOTE IN AN AMOUNT OF
AT LEAST $250,000 AND DELIVERS TO THE INDENTURE TRUSTEE A LETTER SUBSTANTIALLY IN THE FORM OF EXHIBIT D TO THE INDENTURE OR (B) THAT IS TAKING DELIVERY OF SUCH SERIES 2020-1 NOTE IN AN AMOUNT OF AT LEAST $250,000 PURSUANT TO A TRANSACTION THAT IS
OTHERWISE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND FROM ANY APPLICABLE STATE LAW SECURITIES REGISTRATION OR QUALIFICATION REQUIREMENTS, AS CONFIRMED IN AN OPINION OF COUNSEL ADDRESSED TO THE INDENTURE TRUSTEE AND THE
ISSUER, WHICH COUNSEL AND OPINION ARE SATISFACTORY TO THE ISSUER AND THE INDENTURE TRUSTEE.
1
EACH PURCHASER AND TRANSFEREE (AND ITS FIDUCIARY, IF APPLICABLE) OF A SERIES 2020-1 NOTE (OR INTEREST HEREIN) WILL BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (I) IT IS NOT ACQUIRING AND WILL NOT
HOLD THE SERIES 2020-1 NOTE WITH THE PLAN ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), WHICH IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, A “PLAN”
DESCRIBED IN AND SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” OF ANY OF THE FOREGOING BY REASON OF AN EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN
SUCH ENTITY (EACH OF THE FOREGOING, A “BENEFIT PLAN”) OR ANY OTHER PLAN THAT IS SUBJECT TO A LAW THAT IS SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE OR (II) (A) THE SERIES 2020-1 NOTES ARE RATED INVESTMENT GRADE OR BETTER AND HAVE NOT
BEEN CHARACTERIZED AS OTHER THAN INDEBTEDNESS FOR APPLICABLE LOCAL LAW PURPOSES AND (B) THE ACQUISITION, HOLDING AND DISPOSITION OF THE SERIES 2020-1 NOTE WILL NOT GIVE RISE TO A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA, SECTION
4975 OF THE CODE OR A VIOLATION OF ANY SIMILAR APPLICABLE LAW.
EACH INVESTOR THAT IS A PERSON WHO IS NOT A U.S. PERSON AND TO WHOM THE OFFER AND SALE OF THE SERIES 2020-1 NOTES MAY BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT IN RELIANCE UPON REGULATION
S (“PERMITTED NON-U.S. PERSON”) UNDERSTANDS THAT THE SERIES 2020-1 NOTES HAVE NOT AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT, THAT ANY OFFERS, SALES OR DELIVERIES OF THE SERIES 2020-1 NOTES PURCHASED BY IT IN THE UNITED STATES OR TO U.S.
PERSONS PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF (I) THE COMMENCEMENT OF THE DISTRIBUTION OF THE SERIES 2020-1 NOTES AND (II) THE CLOSING DATE, MAY CONSTITUTE A VIOLATION OF UNITED STATES LAW, AND THAT DISTRIBUTIONS OF PRINCIPAL AND
INTEREST WILL BE MADE IN RESPECT OF SUCH SERIES 2020-1 NOTES ONLY FOLLOWING THE DELIVERY BY THE HOLDER OF A CERTIFICATION OF NON-U.S. BENEFICIAL OWNERSHIP OR THE EXCHANGE OF BENEFICIAL INTEREST IN REGULATION S TEMPORARY BOOK-ENTRY NOTES FOR
BENEFICIAL INTERESTS IN THE RELATED UNRESTRICTED BOOK-ENTRY NOTES (WHICH IN EACH CASE WILL ITSELF REQUIRE A CERTIFICATION OF NON-U.S. BENEFICIAL OWNERSHIP), AT THE TIMES AND IN THE MANNER SET FORTH IN THE INDENTURE AND THE SUPPLEMENT.
THIS SERIES 2020-1 NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND, PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE
LATER OF (I) THE COMPLETION OF THE DISTRIBUTION OF THE SERIES 2020-1 NOTES AND (II) THE CLOSING DATE, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON EXCEPT PURSUANT TO AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.
THIS SERIES 2020-1 NOTE IS NOT GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.
2
CAL FUNDING IV LIMITED
FIXED RATE ASSET-BACKED NOTES, SERIES 2020-1, [CLASS A][CLASS B]
$[XX]
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CUSIP No.: _____________
|
No. 1
|
|
_____________ ___, 20___
|
KNOW ALL PERSONS BY THESE PRESENTS that CAL Funding IV Limited, a company incorporated under the laws of Bermuda (the “Issuer”), for value received, hereby promises to pay to Cede & Co.,
or its registered assigns, at the principal corporate trust office of the Indenture Trustee named below, (i) the principal sum of up to XX ($XX.00), which sum shall be payable on the dates and in the amounts set forth in the Indenture, dated as of
September 9, 2020 (as amended, restated, supplemented or otherwise modified from time to time in accordance with its terms, the “Indenture”), and the Series 2020-1 Supplement, dated as of September 9, 2020 (as amended, restated, supplemented
or otherwise modified from time to time in accordance with its terms, the “Series 2020-1 Supplement”), each between the Issuer and Wilmington Trust, National Association, as indenture trustee (the “Indenture Trustee”), and (ii) interest
on the outstanding principal amount of this Series 2020-1 Note on the dates and in the amounts set forth in the Indenture and the Series 2020-1 Supplement. Capitalized terms not otherwise defined herein will have the meaning set forth in the
Indenture and the Series 2020-1 Supplement.
Payment of the principal of and interest on this Series 2020-1 Note shall be made in lawful money of the United States of America which at the time of payment is legal tender for payment of public
and private debts. The principal balance of, and interest on this Series 2020-1 Note is payable at the times and in the amounts set forth in the Indenture and the 2020-1 Supplement by wire transfer of immediately available funds to the account
designated by the Holder of record on the immediately preceding Record Date.
This Series 2020-1 Note is one of the authorized Notes identified in the title hereto and issued in the aggregate principal amount of up to [ ] Dollars ($[ ]) pursuant to the Indenture and the
Series 2020-1 Supplement.
The Notes shall be an obligation of the Issuer and shall be secured by the Collateral, all as defined in, and subject to limitations set forth in, the Indenture and the Series 2020-1 Supplement.
This Series 2020-1 Note is transferable as provided in the Indenture and the Series 2020-1 Supplement, subject to certain limitations therein contained, only upon the books for registration and
transfer kept by the Indenture Trustee, and only upon surrender of this Series 2020-1 Note for transfer to the Indenture Trustee duly endorsed by, or accompanied by a written instrument of transfer in form reasonably satisfactory to the Indenture
Trustee duly executed by, the registered Holder hereof or his attorney duly authorized in writing. The Indenture Trustee or the Issuer may require payment by the Holder of a sum sufficient to cover any tax expense or other governmental charge
payable in connection with any transfer or exchange of the Notes.
3
The Issuer, the Indenture Trustee and any other agent of the Issuer may treat the Person in whose name this Series 2020-1 Note is registered as the absolute owner hereof for all purposes, and neither
the Issuer, the Indenture Trustee, nor any other such agent shall be affected by notice to the contrary.
The Notes are subject to Prepayment, at the times and subject to the conditions set forth in the Indenture and the Series 2020-1 Supplement.
If an Event of Default shall occur and be continuing, the principal of and accrued interest on this Series 2020-1 Note may be declared to be due and payable in the manner and with the effect provided
in the Indenture and the Series 2020-1 Supplement.
The Indenture permits, with certain exceptions as therein provided, the issuance of supplemental indentures with the consent of the Requisite Global Majority, in certain specifically described
instances. Any consent given by the Requisite Global Majority shall be conclusive and binding upon the Holder of this Series 2020-1 Note and on all future holders of this Series 2020-1 Note and of any Note issued in lieu hereof whether or not
notation of such consent is made upon this Series 2020-1 Note. Supplements and amendments to the Indenture and the Series 2020-1 Supplement may be made only to the extent and in circumstances permitted by the Indenture and the Series 2020-1
Supplement.
The Holder of this Series 2020-1 Note shall have no right to enforce the provisions of the Indenture and the Series 2020-1 Supplement or to institute action to enforce the covenants, or to take any
action with respect to a default under the Indenture and the Series 2020-1 Supplement, or to institute, appear in or defend any suit or other Proceedings with respect thereto, except as provided under certain circumstances described in the Indenture
and the Series 2020-1 Supplement; provided, however, that nothing contained in the Indenture and the Series 2020-1 Supplement shall affect or impair any right of enforcement conferred on the Holder hereof to enforce any payment of the principal of
and interest on this Series 2020-1 Note on or after the due date thereof; provided further, however, that by acceptance hereof the Holder is deemed to have covenanted and agreed that it will not institute against the Issuer any bankruptcy,
reorganization, arrangement, insolvency or liquidation Proceedings, or other Proceedings under any applicable bankruptcy or similar law, at any time other than at such time as permitted by Section 1310 of the Indenture and the Series 2020-1
Supplement.
Each purchaser and transferee of a Series 2020-1 Note will be deemed to represent and warrant that either (i) it is not acquiring and will not hold the Series 2020-1 Note with the plan assets of an
“employee benefit plan” as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), which is subject to the provisions of Title I of ERISA, a “plan” described in and subject to Section 4975 of the Internal
Revenue Code of 1986, as amended (the “Code”), an entity whose underlying assets include “plan assets” of any of the foregoing by reason of an employee benefit plan’s or plan’s investment in such entity (each of the foregoing, a “Plan”), or any other
plan that is subject to a law that is similar to Title I of ERISA or Section 4975 of the Code or (ii) (a) the Series 2020-1 Notes are rated investment grade or better and have not been characterized as other than indebtedness for applicable local law
purposes and (b) the acquisition, holding and disposition of the Series 2020-1 Note will not give rise to a non-exempt prohibited transaction under Section 406 of ERISA, Section 4975 of the Code or a violation of any similar applicable law.
4
Each Holder of a Series 2020-1 Note (i) agrees to treat this Series 2020-1 Note for United States federal, state and local income, single business and franchise tax purposes as indebtedness, (ii)
agrees that the Series 2020-1 Note shall not have any interest in any Series Account of any other Series or Class and (iii) ratifies and confirms the terms of the Indenture and the other Series 2020-1 Related Documents.
This Series 2020-1 Note, and the rights and obligations of the parties hereunder, shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York without
giving effect to the principles of conflict of laws thereof (other than Section 5-1401 of the New York General Obligations Law) that would permit or require the application of the law of any other jurisdiction.
All terms and provisions of the Indenture and the Series 2020-1 Supplement are herein incorporated by reference as if set forth herein in their entirety. To the extent any provision of this Series
2020-1 Note conflicts or is inconsistent with the provisions of the Indenture or the Series 2020-1 Supplement, the provisions of the Indenture or Series 2020-1 Supplement, as applicable, shall govern and be controlling.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED, that all acts, conditions and things required to exist, happen and be performed precedent to the execution and delivery of the Indenture and the Series
2020-1 Supplement and the issuance of this Series 2020-1 Note and the issue of which it is a part, do exist, have happened and have been timely performed in regular form and manner as required by law.
Unless the certificate of authentication hereon has been executed by the Indenture Trustee by manual signature of one of its authorized officers, this Series 2020-1 Note shall not be entitled to any
benefit under the Indenture and the Series 2020-1 Supplement, or be valid or obligatory for any purpose.
5
IN WITNESS WHEREOF, CAL FUNDING IV LIMITED has caused this Series 2020-1 Note to be duly executed by its duly authorized representative, on this 9th day of September 2020.
CAL FUNDING IV LIMITED
|
||
By:
|
||
Name:
|
||
Title:
|
This Series 2020-1 Note is one of the Notes described in the within-mentioned Indenture and the Series 2020-1 Supplement.
WILMINGTON TRUST, NATIONAL ASSOCIATION,
|
||
as Indenture Trustee
|
||
By:
|
||
Name:
|
||
Title:
|
EXHIBIT A-4
FORM OF SERIES 2020-1 NOTE ISSUED TO INSTITUTIONAL ACCREDITED INVESTORS
THIS SERIES 2020-1 NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THE HOLDER HEREOF, BY PURCHASING THIS SERIES 2020-1 NOTE, AGREES THAT SUCH SERIES
2020-1 NOTE MAY BE RESOLD, PLEDGED OR TRANSFERRED ONLY IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS AND (1) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON THAT TAKES DELIVERY OF
SUCH SERIES 2020-1 NOTE IN AN AMOUNT OF AT LEAST $250,000 AND THAT THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT (OR FOR THE ACCOUNT OR ACCOUNTS OF A QUALIFIED INSTITUTIONAL BUYER) AND TO WHOM
NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (2) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT WITH SUCH SERIES 2020-1 NOTE IN AN AMOUNT
OF AT LEAST $250,000 OR (3) TO A PERSON (A) THAT IS AN INSTITUTIONAL “ACCREDITED INVESTOR,” WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT, IS TAKING DELIVERY OF SUCH SERIES 2020-1 NOTE IN AN AMOUNT OF
AT LEAST $250,000 AND DELIVERS TO THE INDENTURE TRUSTEE A LETTER SUBSTANTIALLY IN THE FORM OF EXHIBIT C TO THE INDENTURE OR (B) THAT IS TAKING DELIVERY OF SUCH SERIES 2020-1 NOTE IN AN AMOUNT OF AT LEAST $250,000 PURSUANT TO A TRANSACTION THAT IS
OTHERWISE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND FROM ANY APPLICABLE STATE LAW SECURITIES REGISTRATION OR QUALIFICATION REQUIREMENTS, AS CONFIRMED IN AN OPINION OF COUNSEL ADDRESSED TO THE INDENTURE TRUSTEE AND THE
ISSUER, WHICH COUNSEL AND OPINION ARE SATISFACTORY TO THE ISSUER AND THE INDENTURE TRUSTEE.
EACH PURCHASER AND TRANSFEREE (AND ITS FIDUCIARY, IF APPLICABLE) OF A SERIES 2020-1 NOTE (OR INTEREST HEREIN) WILL BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (I) IT IS NOT ACQUIRING AND WILL NOT
HOLD THE SERIES 2020-1 NOTE WITH THE PLAN ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), WHICH IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, A “PLAN”
DESCRIBED IN AND SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” OF ANY OF THE FOREGOING BY REASON OF AN EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN
SUCH ENTITY (EACH OF THE FOREGOING, A “BENEFIT PLAN”) OR ANY OTHER PLAN THAT IS SUBJECT TO A LAW THAT IS SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE OR (II) (A) THE SERIES 2020-1 NOTES ARE RATED INVESTMENT GRADE OR BETTER AND HAVE NOT
BEEN CHARACTERIZED AS OTHER THAN INDEBTEDNESS FOR APPLICABLE LOCAL LAW PURPOSES AND (B) THE ACQUISITION, HOLDING AND DISPOSITION OF THE SERIES 2020-1 NOTE WILL NOT GIVE RISE TO A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA, SECTION
4975 OF THE CODE OR A VIOLATION OF ANY SIMILAR APPLICABLE LAW.
1
THIS SERIES 2020-1 NOTE IS NOT GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.
OWING TO THE PROVISIONS FOR THE PAYMENT OF PRINCIPAL CONTAINED HEREIN, THE OUTSTANDING SERIES 2020-1 NOTE PRINCIPAL BALANCE OF THIS SERIES 2020-1 NOTE MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF. ANYONE PURCHASING THIS SERIES 2020-1 NOTE SHOULD CONFIRM THE OUTSTANDING SERIES 2020-1 NOTE PRINCIPAL BALANCE HEREOF BY INQUIRY TO THE INDENTURE TRUSTEE.
2
CAL FUNDING IV LIMITED
FIXED RATE ASSET-BACKED NOTES, SERIES 2020-1, [CLASS A][CLASS B]
$XX
|
CUSIP No.: _____________
|
No. 1
|
|
_____________ ___, 20___
|
KNOW ALL PERSONS BY THESE PRESENTS that CAL Funding IV Limited, a company incorporated under the laws of Bermuda (the “Issuer”), for value received, hereby promises to pay to Cede & Co.,
or its registered assigns, at the principal corporate trust office of the Indenture Trustee named below, (i) the principal sum of up to XX Dollars ($XX.00), which sum shall be payable on the dates and in the amounts set forth in the Indenture, dated
as of September 9, 2020 (as amended, restated, supplemented or otherwise modified from time to time in accordance with its terms, the “Indenture”), and the Series 2020-1 Supplement, dated as of September 9, 2020 (as amended, restated,
supplemented or otherwise modified from time to time in accordance with its terms, the “Series 2020-1 Supplement”), each between the Issuer and Wilmington Trust, National Association, as indenture trustee (the “Indenture Trustee”), and
(ii) interest on the outstanding principal amount of this Series 2020-1 Note on the dates and in the amounts set forth in the Indenture and the Series 2020-1 Supplement. Capitalized terms not otherwise defined herein will have the meaning set forth
in the Indenture and the Series 2020-1 Supplement.
Payment of the principal of and interest on this Series 2020-1 Note shall be made in lawful money of the United States of America which at the time of payment is legal tender for payment of public
and private debts. The principal balance of, and interest on this Series 2020-1 Note is payable at the times and in the amounts set forth in the Indenture and the 2020-2 Supplement by wire transfer of immediately available funds to the account
designated by the Holder of record on the immediately preceding Record Date.
All borrowings evidenced by this Series 2020-1 Note and all payments and prepayments of the principal hereof and interest hereon and the respective dates thereof shall be endorsed by the Holder
hereof on the schedule attached hereto and made a part hereof, or on a continuation thereof that shall be attached hereto and made a part hereof, or otherwise recorded by that Holder in its internal records; provided, however, that the failure of the
holder hereof to make such a notation or any error in such a notation shall not in any manner affect the obligation of the Issuer to make payments of principal and interest in accordance with the terms of this Series 2020-1 Note and the Indenture and
the Series 2020-1 Supplement.
The final payment on any Definitive Note shall be made only upon presentation and surrender of the Note at the Corporate Trust Office of the Indenture Trustee.
This Series 2020-1 Note is one of the authorized Notes identified in the title hereto and issued in the aggregate principal amount of up to [ ] Dollars ($[ ]) pursuant to the Indenture and the
Series 2020-1 Supplement.
3
The Notes shall be an obligation of the Issuer and shall be secured by the Collateral, all as defined in, and subject to limitations set forth in, the Indenture and the Series 2020-1 Supplement.
This Series 2020-1 Note is transferable as provided in the Indenture and the Series 2020-1 Supplement, subject to certain limitations therein contained, only upon the books for registration and
transfer kept by the Indenture Trustee, and only upon surrender of this Series 2020-1 Note for transfer to the Indenture Trustee duly endorsed by, or accompanied by a written instrument of transfer in form reasonably satisfactory to the Indenture
Trustee duly executed by, the registered Holder hereof or his attorney duly authorized in writing. The Indenture Trustee or the Issuer may require payment by the Holder of a sum sufficient to cover any tax expense or other governmental charge
payable in connection with any transfer or exchange of the Notes.
The Issuer, the Indenture Trustee and any other agent of the Issuer may treat the Person in whose name this Series 2020-1 Note is registered as the absolute owner hereof for all purposes, and neither
the Issuer, the Indenture Trustee, nor any other such agent shall be affected by notice to the contrary.
The Notes are subject to Prepayment, at the times and subject to the conditions set forth in the Indenture and the Series 2020-1 Supplement.
If an Event of Default shall occur and be continuing, the principal of and accrued interest on this Series 2020-1 Note may be declared to be due and payable in the manner and with the effect provided
in the Indenture and the Series 2020-1 Supplement.
The Indenture permits, with certain exceptions as therein provided, the issuance of supplemental indentures with the consent of the Requisite Global Majority, in certain specifically described
instances. Any consent given by the Requisite Global Majority shall be conclusive and binding upon the Holder of this Series 2020-1 Note and on all future holders of this Series 2020-1 Note and of any Note issued in lieu hereof whether or not
notation of such consent is made upon this Series 2020-1 Note. Supplements and amendments to the Indenture and the Series 2020-1 Supplement may be made only to the extent and in circumstances permitted by the Indenture and the Series 2020-1
Supplement.
The Holder of this Series 2020-1 Note shall have no right to enforce the provisions of the Indenture and the Series 2020-1 Supplement or to institute action to enforce the covenants, or to take any
action with respect to a default under the Indenture and the Series 2020-1 Supplement, or to institute, appear in or defend any suit or other Proceedings with respect thereto, except as provided under certain circumstances described in the Indenture
and the Series 2020-1 Supplement; provided, however, that nothing contained in the Indenture and the Series 2020-1 Supplement shall affect or impair any right of enforcement conferred on the Holder hereof to enforce any payment of the principal of
and interest on this Series 2020-1 Note on or after the due date thereof; provided further, however, that by acceptance hereof the Holder is deemed to have covenanted and agreed that it will not institute against the Issuer any bankruptcy,
reorganization, arrangement, insolvency or liquidation Proceedings, or other Proceedings under any applicable bankruptcy or similar law, at any time other than at such time as permitted by Section 1310 of the Indenture and the Series 2020-1
Supplement.
4
Each purchaser and transferee of a Series 2020-1 Note will be deemed to represent and warrant that either (i) it is not acquiring and will not hold the Series 2020-1 Note with the plan assets of an
“employee benefit plan” as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), which is subject to the provisions of Title I of ERISA, a “plan” described in and subject to Section 4975 of the Internal
Revenue Code of 1986, as amended (the “Code”), an entity whose underlying assets include “plan assets” of any of the foregoing by reason of an employee benefit plan’s or plan’s investment in such entity (each of the foregoing, a “Plan”), or any other
plan that is subject to a law that is similar to Title I of ERISA or Section 4975 of the Code or (ii) (a) the Series 2020-1 Notes are rated investment grade or better and have not been characterized as other than indebtedness for applicable local law
purposes and (b) the acquisition, holding and disposition of the Series 2020-1 Note will not give rise to a non-exempt prohibited transaction under Section 406 of ERISA, Section 4975 of the Code or a violation of any similar applicable law.
Each Holder of a Series 2020-1 Note (i) agrees to treat this Series 2020-1 Note for United States federal, state and local income, single business and franchise tax purposes as indebtedness, (ii)
agrees that the Series 2020-1 Note shall not have any interest in any Series Account of any other Series or Class and (iii) ratifies and confirms the terms of the Indenture and the other Series 2020-1 Related Documents.
This Series 2020-1 Note, and the rights and obligations of the parties hereunder, shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York without
giving effect to the principles of conflict of laws thereof (other than Section 5-1401 of the New York General Obligations Law) that would permit or require the application of the law of any other jurisdiction.
All terms and provisions of the Indenture and the Series 2020-1 Supplement are herein incorporated by reference as if set forth herein in their entirety. To the extent any provision of this Series
2020-1 Note conflicts or is inconsistent with the provisions of the Indenture or the Series 2020-1 Supplement, the provisions of the Indenture or Series 2020-1 Supplement, as applicable, shall govern and be controlling.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED, that all acts, conditions and things required to exist, happen and be performed precedent to the execution and delivery of the Indenture and the Series
2020-1 Supplement and the issuance of this Series 2020-1 Note and the issue of which it is a part, do exist, have happened and have been timely performed in regular form and manner as required by law.
Unless the certificate of authentication hereon has been executed by the Indenture Trustee by manual signature of one of its authorized officers, this Series 2020-1 Note shall not be entitled to any
benefit under the Indenture and the Series 2020-1 Supplement, or be valid or obligatory for any purpose.
5
IN WITNESS WHEREOF, CAL FUNDING IV LIMITED has caused this Series 2020-1 Note to be duly executed by its duly authorized representative, on this 9th day of September 2020.
CAL FUNDING IV LIMITED
|
||
By:
|
||
Name:
|
||
Title:
|
This Series 2020-1 Note is one of the Notes described in the within-mentioned Indenture and the Series 2020-1 Supplement.
WILMINGTON TRUST, NATIONAL ASSOCIATION,
|
||
as Indenture Trustee
|
||
By:
|
||
Name:
|
||
Title:
|
EXHIBIT B
FORM OF
CERTIFICATE TO BE GIVEN BY SERIES 2020-1 NOTEHOLDER
[Euroclear Bank S.A./N.V., as operator
of the Euroclear Clearance System
1 Boulevard du Roi Albert II
B‑1210 Brussels, Belgium]
[Clearstream Banking, société anonyme
67 Boulevard Grand‑Duchesse Charlotte
L‑1331 Luxembourg]
Re: |
Fixed Rate Asset-Backed Notes, Series 2020-1, [Class A][Class B] (the “Series 2020-1 Notes”) issued pursuant to the Supplement, dated as of September 9, 2020, between CAL Funding IV Limited (the “Issuer”) and Wilmington
Trust, National Association (the “Indenture Trustee”) to the Indenture, dated as of September 9, 2020, between the Issuer and the Indenture Trustee.
|
This is to certify that as of the date hereof, and except as set forth below, the beneficial interest in the Series 2020-1 Notes held by you for our account is owned by Persons that are not U.S.
Persons (as defined in Rule 902 under the Securities Act of 1933, as amended).
The undersigned undertakes to advise you promptly by tested telex on or prior to the date on which you intend to submit your certification relating to the Series 2020-1 Notes held by you in which the
undersigned has acquired, or intends to acquire, a beneficial interest in accordance with your operating procedures if any applicable statement herein is not correct on such date. In the absence of any such notification, it may be assumed that this
certification applies as of such date.
[This certification excepts beneficial interests in and does not relate to U.S. $_________ principal amount of the Series 2020-1 Notes appearing in your books as being held for our account but that
we have sold or as to which we are not yet able to certify.]
We understand that this certification is required in connection with certain securities laws in the United States of America. If administrative or legal Proceedings are commenced or threatened in
connection with which this certification is or would be relevant, we irrevocably authorize you to produce this certification or a copy thereof to any interested party in such Proceedings.
Dated:*
|
By:
|
||||
Account Holder
|
*Certification must be dated on or after the 15th day before the date of the Euroclear or Clearstream certificate to which this certification relates.
EXHIBIT C
FORM OF
CERTIFICATE TO BE GIVEN BY EUROCLEAR OR CLEARSTREAM
Wilmington Trust, National Association,
as Indenture Trustee and Note Registrar
______________________
Wilmington, DE_______
Attention: Corporate Trust Services/Asset-Backed Administrator
Re: |
Fixed Rate Asset-Backed Notes, Series 2020-1, [Class A][Class B] (the “Series 2020-1 Notes”) issued pursuant to the Supplement, dated as of September 9, 2020, between CAL Funding IV Limited (the “Issuer”) and Wilmington
Trust, National Association (the “Indenture Trustee”) to the Indenture, dated as of September 9, 2020, between the Issuer and the Indenture Trustee.
|
This is to certify that, based solely on certifications we have received in writing, by tested telex or by electronic transmission from member organizations appearing in our records as Persons being
entitled to a portion of the principal amount set forth below (our “Member Organizations”) as of the date hereof, $__________ principal amount of the Series 2020-1 Notes is owned by Persons (a) that are not U.S. Persons (as defined in Rule 902
under the Securities Act of 1933, as amended (the “Securities Act”), and used in Regulation S) or (b) who purchased their Series 2020-1 Notes (or interests therein) in a transaction or transactions that did not require registration under the
Securities Act.
We further certify (a) that we are not making available herewith for exchange any portion of the related Regulation S Temporary Book-Entry Note excepted in such certifications and (b) that as of the
date hereof we have not received any notification from any of our Member Organizations to the effect that the statements made by them with respect to any portion of the part submitted herewith for exchange are no longer true and cannot be relied upon
as of the date hereof.
We understand that this certification is required in connection with certain securities laws of the United States of America. If administrative or legal Proceedings are commenced or threatened in
connection with which this certification is or would be relevant, we irrevocably authorize you to produce this certification or a copy hereof to any interested party in such Proceedings.
Date:
|
Yours faithfully,
|
||
By:
|
|||
[Morgan Guaranty Trust Company of New York, Brussels Office, as Operator of the Euroclear Clearance System] [Clearstream Banking, société anonyme]
|
EXHIBIT D
FORM OF
CERTIFICATE TO BE GIVEN BY TRANSFEREE OF BENEFICIAL INTEREST IN A
REGULATION S TEMPORARY BOOK-ENTRY NOTE
[Euroclear Bank S.A./N.V., as operator
of the Euroclear Clearance System
1 Boulevard du Roi Albert II
B‑1210 Brussels, Belgium]
[Clearstream Banking, société anonyme
67 Boulevard Grand‑Duchesse Charlotte
L‑1331 Luxembourg]
Re: |
Fixed Rate Asset-Backed Notes, Series 2020-1, [Class A][Class B] (the “Series 2020-1 Notes”) issued pursuant to the Supplement, dated as of September 9, 2020, between CAL Funding IV Limited (the “Issuer”) and Wilmington
Trust, National Association (the “Indenture Trustee”) to the Indenture, dated as of September 9, 2020, between the Issuer and the Indenture Trustee.
|
This is to certify that as of the date hereof, and except as set forth below, for purposes of acquiring a beneficial interest in the Series 2020-1 Notes, the undersigned certifies that it is not a
U.S. Person (as defined in Rule 902 under the Securities Act of 1933, as amended, and used in Regulation S).
The undersigned undertakes to advise you promptly by tested telex on or prior to the date on which you intend to submit your certification relating to the Series 2020-1 Notes held by you in which the
undersigned intends to acquire a beneficial interest in accordance with your operating procedures if any applicable statement herein is not correct on such date. In the absence of any such notification, it may be assumed that this certification
applies as of such date.
We understand that this certification is required in connection with certain securities laws in the United States of America. If administrative or legal Proceedings are commenced or threatened in
connection with which this certification is or would be relevant, we irrevocably authorize you to produce this certification or a copy thereof to any interested party in such Proceedings.
Dated:
|
By:
|
EXHIBIT E
FORM OF
TRANSFER CERTIFICATE FOR EXCHANGE OR
TRANSFER FROM 144A BOOK-ENTRY NOTE
TO REGULATION S BOOK-ENTRY NOTE
Wilmington Trust, National Association,
as Indenture Trustee and Note Registrar
______________________________________
Wilmington, DE _____
Attention: Corporate Trust Services/Asset-Backed Administrator
Re: |
Fixed Rate Asset-Backed Notes, Series 2020-1, [Class A][Class B] (the “Series 2020-1 Notes”) issued pursuant to the Supplement, dated as of September 9, 2020, between CAL Funding IV Limited (the “Issuer”) and Wilmington
Trust, National Association (the “Indenture Trustee”) to the Indenture, dated as of September 9, 2020, between the Issuer and the Indenture Trustee.
|
Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.
This letter relates to U.S. $___________ principal amount of Series 2020-1 Notes that are held as a beneficial interest in the 144A Book-Entry Note (CUSIP No. _____) with DTC in the name of [insert name of transferor]
(the “Transferor”). The Transferor has requested an exchange or transfer of the beneficial interest for an interest in the Regulation S Book-Entry Note (CUSIP No. _____) to be held with [Euroclear] [Clearstream] through DTC.
In connection with the request and in receipt of the Series 2020-1 Notes, the Transferor does hereby certify that the exchange or transfer has been effected in accordance with the transfer restrictions set forth in the
Indenture and the Series 2020-1 Notes and:
(a) pursuant to and in accordance with Regulation S under the Securities Act of 1933, as amended (the “Securities Act”), and accordingly the Transferor does hereby certify that:
(i) the offer of the Series 2020-1 Notes was not made to a Person in the United States of America,
(ii) either (A) at the time the buy order was originated, the transferee was outside the United States of America or the Transferor and any Person acting on its behalf reasonably believed that the
transferee was outside the United States of America, or (B) the transaction was executed in, on or through the facilities of a designated offshore securities market and neither the Transferor nor any Person acting on its behalf knows that the
transaction was pre‑arranged with a buyer in the United States of America,
1
(iii) no directed selling efforts have been made in contravention of the requirements of Rule 903 or 904 of Regulation S, as applicable, and the other conditions of Rule 903 or Rule 904 of
Regulation S, as applicable, have been satisfied and
(iv) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act, and
(b) with respect to transfers made in reliance on Rule 144A under the Securities Act, the Transferor does hereby certify that the Series 2020-1 Notes are being transferred in a transaction permitted by Rule 144A under
the Securities Act.
This certification and the statements contained herein are made for your benefit and the benefit of the Issuer and [Wells Fargo Securities LLC, BofA Securities, Inc., Deutsche Bank Securities Inc., MUFG Securities
Americas Inc., RBC Capital Markets LLC, Fifth Third Securities, Inc., ING Bank N.V., and PNC Capital Markets LLC] as the Initial Purchasers.
[Insert name of Transferor]
|
|
Dated:
|
By:
|
Title:
|
EXHIBIT F
FORM OF
INITIAL PURCHASER EXCHANGE INSTRUCTIONS
Depository Trust Company
55 Water Street
50th Floor
New York, New York 10041
Re: |
$__________ of the Fixed Rate Asset-Backed Notes, Series 2020-1, [Class A][Class B] (the “Series 2020-1 Notes”) issued pursuant to the Supplement, dated as of September 9, 2020, between CAL Funding IV Limited (the “Issuer”)
and Wilmington Trust, National Association (the “Indenture Trustee”) to the Indenture, dated as of September 9, 2020, between the Issuer and the Indenture Trustee.
|
Pursuant to Section 207 of the Supplement, [Wells Fargo Securities LLC][BofA Securities, Inc.][Deutsche Bank Securities Inc.][MUFG Securities Americas Inc.][RBC Capital Markets LLC][Fifth Third Securities, Inc.][ING
Bank N.V.][PNC Capital Markets LLC] (the “Initial Purchaser”), hereby requests that $____________ aggregate principal amount of the Series 2020-1 Notes held by you for our account and represented by the Regulation S Temporary Book-Entry Note
(CUSIP No. _____) (as defined in the Supplement) be exchanged for an equal principal amount represented by the 144A Book-Entry Note (CUSIP No. _____) to be held by you for our account.
Dated:
|
[Wells Fargo Securities LLC][BofA Securities, Inc.][Deutsche Bank Securities Inc.][MUFG Securities Americas Inc.][RBC Capital Markets LLC][Fifth Third Securities, Inc.][ING Bank N.V.][PNC Capital Markets LLC],
as Initial Purchaser
|
By:
|
|
Title:
|
1
Exhibit 99.1
NOTE PURCHASE AGREEMENT
Dated as of September 1, 2020
Among
CAL FUNDING IV LIMITED
as Issuer
and
WELLS FARGO SECURITIES LLC
DEUTSCHE BANK SECURITIES INC.
BofA SECURITIES, INC.
RBC CAPITAL MARKETS, LLC
MUFG SECURITIES AMERICAS INC.
PNC CAPITAL MARKETS LLC
FIFTH THIRD SECURITIES, INC.
and
ING BANK N.V.
as the Initial Purchasers
CONTAINER APPLICATIONS LIMITED
as Seller and Manager
and
CAI INTERNATIONAL, INC.
as Sub-Manager and Performance Guarantor
(CAL FUNDING IV LIMITED-
$715,900,000 FIXED RATE ASSET BACKED NOTES, SERIES 2020-1, CLASS A
$26,800,000 FIXED RATE ASSET BACKED NOTES, SERIES 2020-1, CLASS B)
TABLE OF CONTENTS
SECTION 1.
|
Definitions.
|
1
|
SECTION 2.
|
The Notes; Purchase of Notes.
|
5
|
SECTION 3.
|
Information.
|
5
|
SECTION 4.
|
Representations and Warranties of the Issuer and CAL
|
6
|
SECTION 4A
|
Representation and Warranties of CAI
|
13
|
SECTION 5.
|
Offering by each Initial Purchaser.
|
15
|
SECTION 6.
|
Covenants of the Issuer and CAL.
|
16
|
SECTION 7.
|
Expenses; Fees
|
20
|
SECTION 8.
|
Conditions of each Initial Purchaser’s Obligation
|
20
|
SECTION 9.
|
Representations, Warranties and Covenants of each Initial Purchaser
|
25
|
SECTION 10.
|
Indemnification and Contribution.
|
26
|
SECTION 11.
|
Survival of Representations and Warranties
|
28
|
SECTION 12.
|
Termination
|
28
|
SECTION 13.
|
Initial Purchaser Information
|
29
|
SECTION 14.
|
Notices
|
29
|
SECTION 15.
|
Successors
|
31
|
SECTION 16.
|
Counterparts
|
31
|
SECTION 17.
|
Governing Law
|
31
|
SECTION 18.
|
Submission to Jurisdiction
|
31
|
SECTION 19.
|
Waiver of Jury Trial
|
32
|
SECTION 20.
|
Negotiations
|
32
|
SECTION 21.
|
Amendments, etc
|
32
|
SECTION 22.
|
Severability of Provisions
|
32
|
SECTION 23.
|
No Waiver; Cumulative Remedies
|
32
|
SECTION 24.
|
Integration
|
32
|
SECTION 25.
|
Nonpetition Covenant
|
33
|
SECTION 26.
|
Recourse Against Certain Parties
|
33
|
SECTION 27.
|
Appointment of Bookrunners, Structuring Agents and Co-Managers; No Other Duties
|
33
|
SECTION 28.
|
Confidentiality
|
34
|
SECTION 29.
|
Recognition of the U.S. Special Resolution Regimes.
|
35
|
SECTION 30.
|
Electronic Signatures
|
36
|
TABLE OF CONTENTS
(continued)
|
Page
|
|
||
Schedule I
|
-
|
Initial Purchasers and Note Amounts
|
Schedule II
|
-
|
Initial Purchaser Information
|
Exhibit A
|
-
|
Investor Presentation
|
Exhibit B
|
-
|
Investor Cash Flow Reports
|
ii
NOTE PURCHASE AGREEMENT (as amended, modified and supplemented from time to time in accordance with its terms, the “Agreement”), dated as of September 1, 2020, by and among:
(1) CAL FUNDING IV LIMITED, an exempted company incorporated and existing under the laws of Bermuda, as issuer under the Indenture (defined below) and the Series 2020-1 Supplement (defined
below) (the “Issuer”);
(2) WELLS FARGO SECURITIES LLC (“WFS”);
(3) DEUTSCHE BANK SECURITIES INC. (“DB”);
(4) BofA SECURITIES, INC. (“BofA”);
(5) RBC CAPITAL MARKETS, LLC (“RBC”);
(6) MUFG SECURITIES AMERICAS INC. (“MUFG”)’
(7) PNC CAPITAL MARKETS LLC (“PNC”);
(8) FIFTH THIRD SECURITIES, INC. (“FTS”);
(9) ING BANK N.V. (“ING”; and, collectively with WFS, DB, BofA, RBC, MUFG, PNC and FTS, the “Initial Purchasers”
and each, an “Initial Purchaser”);
(9) solely with respect to Sections 4, 5(b), 6, 8, 10, 12, 17, 18, 19, 20 and 21 hereof, CONTAINER APPLICATIONS LIMITED, a company continuing into and existing under the laws of Barbados (“CAL”); and
(10) solely with respect to Sections 4A, 8, 12, 17, 18, 19, 20 and 21 hereof,
CAI INTERNATIONAL, INC., a corporation organized under the laws of the State of Delaware (“CAI”).
NOW THEREFORE, in consideration of the premises and mutual covenants herein contained, the parties hereto agree as follows:
SECTION 1. Definitions.
(a) Certain capitalized terms used throughout this Agreement are defined above or in Section 1(b) hereof. In
addition, capitalized terms used but not defined herein have the meanings given to such terms in the Preliminary Offering Memorandum (as defined below) or, if not defined therein, as defined in the Series 2020-1 Supplement, dated as of the Closing
Date (as amended, restated, supplemented or otherwise modified from time to time in accordance with its terms, the “Series 2020-1 Supplement”), by and between the Issuer and the Indenture Trustee (as defined
below), issued pursuant to the terms of the Indenture (as defined below), or, if not defined therein, as defined in the Indenture, dated as of the Closing Date (as amended, restated, supplemented or otherwise modified from time to time in accordance
with its terms, the “Indenture”), by and between the Issuer and Wells Fargo Bank, National Association, as indenture trustee (the “Indenture Trustee”).
(b) As used in this Agreement and its exhibits, the following terms shall have the following meanings (such meanings to be equally applicable to both the
singular and plural forms of the terms defined).
“Act”: The Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.
“Additional Disclosure Document”: Any information prepared by, or on behalf of, the Issuer for delivery to prospective Series 2020-1 Noteholders, other than the Preliminary Offering
Memorandum and the Offering Memorandum. For the avoidance of doubt (i) the Road Show Information and (ii) the Investor Cash Flow Information, shall each constitute an Additional Disclosure Document. None of the Related Documents or Series 2020-1
Related Documents shall be deemed to constitute an Additional Disclosure Document.
“BofA”: This term has the meaning set forth in preamble hereto.
“CAL III”: CAL Funding III Limited, an exempted company with limited liability incorporated under the laws of Bermuda.
“CAI Indemnified Party”: This term shall have the meaning set forth in Section 10(b) hereof.
“CAL Person”: This term has the meaning set forth in Section 8(h) hereof.
“Class A Notes": The Fixed Rate Asset- Backed Notes, Series 2020-1 Notes, Class A issued pursuant to the Supplement in the initial aggregate principal balance of Seven Hundred Fifteen Million,
Nine Hundred Thousand Dollars ($715,900,000).
“Class B Notes”: The Fixed Rate Asset- Backed Notes, Series 2020-1 Notes, Class B issued pursuant to the Supplement in the initial aggregate principal balance of Twenty-Six Million, Eight
Hundred Thousand Dollars ($26,800,000).
“Closing Date”: This term has the meaning set forth in Section 2(a) hereof.
“Code”: Internal Revenue Code of 1986, as amended.
“Commission”: The United States Securities and Exchange Commission.
“Credit Risk Retention Rule”: This term has the meaning set forth in Section 4(gg).
“DB”: This term has the meaning set forth in preamble.
“Designated Jurisdiction”: Any country or territory to the extent that such country or territory itself is the subject of any Sanction.
“EEA”: This term has the meaning set forth in Section 9(h) hereof.
2
“Exchange Act”: Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
“FTS”: This term has the meaning set forth in preamble hereto.
“Indenture”: This term shall have the meaning set forth in Section 1(a) hereof.
“Independent Accountants”: This term shall have the meaning set forth in the Management Agreement.
“Initial Purchasers”: This term has the meaning set forth in the preamble hereto.
“Initial Purchaser Information”: With respect to any Initial Purchaser, the information described in Schedule II hereto, but only to the extent that such information relates to the
applicable Initial Purchaser.
“Institutional Accredited Investors”: This term has the meaning set forth in Section 3(b) hereof.
“Investment Company Act”: The Investment Company Act of 1940, as amended.
“Investor Cash Flow Information”: Each of the cash flow reports listed on Exhibit B hereto provided to prospective purchasers of the Notes of at the request of such investor.
“Issuer”: This term has the meaning set forth in the preamble hereto.
“Loss”: This term has the meaning set forth in Section 10(a) hereof.
“Majority-Owned Affiliate”: This term has the meaning set forth in Section 4(gg).
“Manager”: This term has the meaning set forth in the preamble hereto.
“MIFID II”: This term has the meaning set forth in Section 9(h) hereof.
“MUFG”: This term has the meaning set forth in preamble hereto.
“Noteholder”: With respect to a Note that is a Book-Entry Note, the Person who is the owner of such Book-Entry Note, as reflected on the books of (i) the Depositary (a direct participant) or
(ii) a Person maintaining an account with the Depositary (an indirect participant), in each case in accordance with the rules of the Depositary.
“Notes”: The Class A Notes and the Class B Notes, collectively.
“OFAC”: The Office of Foreign Assets Control of the United States Department of the Treasury.
“Offering Memorandum”: This term has the meaning set forth in Section 3(a) hereof.
3
“Permitted Transferee”: This term has the meaning set forth in Section 3(b) hereof.
“PNC”: This term had the meaning set forth in the preamble.
“Preliminary Offering Memorandum”: This term has the meaning set forth in Section 3(a) hereof.
“Purchaser Indemnified Party”: This term shall have the meaning set forth in Section 10(a) hereof.
“Qualified Institutional Buyers”: This term has the meaning set forth in Rule 144A of the Act.
“RBC”: This term has the meaning set forth in the preamble.
“Regulation S”: Regulation S under the Act.
“Related Transferred Assets”: This term has the meaning set forth in the Contribution and Sale Agreement.
“Road Show Information”: The investor presentation attached as Exhibit A hereto.
“Sanction(s)”: Any sanction administered or enforced by the United States Government (including without limitation, OFAC), the United Nations Security Council, the European Union, Her
Majesty’s Treasury (“HMT”) or other relevant sanctions authority.
“Series 2020-1 Managed Container Purchase Date”: This term has the meaning set forth in Section 6(xxiv)
“Series 2020-1 Supplement”: This term has the meaning set forth in Section 1(a) hereof.
Similar Law: This term has the meaning set forth in Section 9(d) hereof.
“UCC”: The Uniform Commercial Code as in effect in the applicable jurisdiction.
“United States”: The United States of America.
“U.S. Persons”: This term has the meaning set forth in Section 3(b) hereof.
“WFS”: This term has the meaning set forth in preamble hereto.
(c) All accounting terms not specifically defined herein shall be construed in accordance with GAAP. All terms used in the UCC in effect in the State of
New York and not specifically defined herein, are used herein as defined therein.
(d) Unless otherwise stated in this Agreement, in the computation of a period of time from a specified date to a later specified date, the word “from”
means “from and including” and the words “to” and “until” each mean “to but excluding”.
4
SECTION 2. The Notes; Purchase of Notes.
(a) On the basis of the representations, warranties, agreements and covenants herein contained and subject to the terms and conditions herein set forth,
the Issuer agrees to sell to the Initial Purchasers, and each Initial Purchaser severally agrees to purchase from the Issuer, on the Closing Date, Class A Notes and Class B Notes in the respective principal amounts set forth on Schedule I
hereto opposite the name of such Initial Purchaser. The purchase obligation of each Initial Purchaser is several and not joint. The Class A Notes are to be purchased by each Initial Purchaser at a purchase price equal to 98.97741% of the initial
principal balance of the total Class A Notes to be purchased by such Initial Purchaser. The Class A Notes shall bear a stated interest rate of two and twenty two hundredths percent (2.22%). The Class B Notes are to be purchased by each Initial
Purchaser at a purchase price equal to 98.95688% of the initial principal balance of the Class B Notes to be purchased by such Initial Purchaser. The Class B Notes shall bear a stated interest rate of three and one half percent (3.50%). Except for
any Notes issued to Institutional Accredited Investors, which Notes shall be issued as Definitive Notes, the Notes shall be Book-Entry Notes, and shall be issued to Cede & Co., as nominee of The Depository Trust Company. The delivery of and
payment for the Notes shall be made at the offices of Dentons US LLP, by 10:00 a.m., New York time on September 9, 2020 or at such other place, time or date as the Initial Purchasers and the Issuer may agree upon, such time and date of delivery
against payment being herein referred to as the “Closing Date”. The Issuer shall make copies of the Notes available for review by each Initial Purchaser at the offices of the applicable Initial Purchaser at
least 24 hours prior to the Closing Date. The purchase price of the Notes paid by an Initial Purchaser shall be remitted by wire transfer to the Indenture Trustee and applied in accordance with Section 6(v)
hereof. The terms of the Notes are more fully set forth in the Offering Memorandum and in the Series 2020-1 Related Documents (provided, that in no event shall the Offering Memorandum be deemed to constitute a Series 2020-1 Related Document or shall
the terms and conditions described in the Offering Memorandum be binding upon the Issuer or any party to any Series 2020-1 Related Document, except to the extent consistent with and expressly set forth in a Series 2020-1 Related Document).
(b) The Notes are to be issued under the Series 2020-1 Supplement.
(c) The Notes shall be offered and sold to the Initial Purchasers without being registered under the Act, in reliance on exemptions thereunder.
SECTION 3. Information.
(a) In connection with the sale of the Notes, the Issuer has prepared a preliminary offering memorandum, dated August 27, 2020 (including all attachments
thereto and any supplements or amendments thereto (other than the Offering Memorandum), including without limitation the Supplement to Preliminary Offering Memorandum, dated September 1, 2020, the “Preliminary
Offering Memorandum”) and a final Offering Memorandum (including all attachments thereto and any supplements or amendments thereto, the “Offering Memorandum”).
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(b) The Issuer hereby expressly authorizes each Initial Purchaser to use the Additional Disclosure Documents, the Preliminary Offering Memorandum and the
Offering Memorandum, in connection with the offer and sale of the Notes. The Issuer hereby indicates its authorization of all distributions of the Additional Disclosure Documents and the Preliminary Offering Memorandum made by each Initial Purchaser
prior to the date of this Agreement and authorizes each Initial Purchaser to distribute the Additional Disclosure Documents, the Preliminary Offering Memorandum (in conjunction with the Supplement, if a Supplement exists) prior to the date of the
Offering Memorandum, and after the Offering Memorandum is complete, the Offering Memorandum in connection with the offer and sale of the Notes, provided that such distributions were or are made only to
Persons that are (i) reasonably believed by the applicable Initial Purchaser to be Qualified Institutional Buyers, (ii) institutional Accredited Investors, as defined in Rule 501(a)(1), (2), (3) or (7) under Regulation D of the Act (“Institutional Accredited Investors”), or (iii) to certain Persons that are not U.S. Persons, as defined in Regulation S (“U.S. Persons”; any Person described in clause (i), (ii) or (iii) being a “Permitted Transferee”) to whom the offer and sale of the Notes may be made without registration
under the Act in reliance upon Regulation S (as defined below). The Issuer also hereby expressly authorizes each Initial Purchaser to distribute to Persons with the aforementioned qualifications, in connection with the offer and sale of the Notes,
(i) any report or document filed by the Issuer, the Manager or any of their Affiliates with the Commission, and (ii) subject to terms of confidentiality substantially similar to those set forth in Section 711 of the Series 2020-1 Supplement, copies
of the Series 2020-1 Related Documents and opinion letters and other documents delivered in connection with the execution of the Series 2020-1 Related Documents.
(c) The Issuer understands that each Initial Purchaser proposes to make an offering of the Notes, as soon as it deems advisable after this Agreement has
been executed and delivered, on the terms and in the manner set forth in the Offering Memorandum to Persons that such Initial Purchaser reasonably believes to be Permitted Transferees. Any Notes sold to Institutional Accredited Investors shall be
represented by one or more Definitive Notes.
SECTION 4. Representations and Warranties of the Issuer and CAL. Each of the Issuer and CAL, as applicable, represents and warrants to each Initial
Purchaser, as of the date hereof and as of the Closing Date (or, if specifically stated below to be made as of another particular time or date, as of such time or date instead), each of representations and warranties set forth below. With respect to
the representations and warranties set forth in paragraphs (d), (e), (g), (h), (i), (j), (k), (l), (m), (o), (s), (aa), (bb), (cc), (dd), (ee) and (ff) below, each of the Issuer and CAL makes such representation and warranty solely as to itself.
(a) (i) At 2:34 p.m. on September 1, 2020, the time of the first contract of sale by the Initial Purchasers for any Notes (the “Time of Sale”), and as of the Closing Date, none of the Additional Disclosure Documents or the Preliminary Offering Memorandum contained or contains an untrue statement of a material fact or omitted or omits to state a material fact
necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and (ii) the Offering Memorandum, as of its date (including any attachments, supplements or amendments thereto, as of the respective
dates thereof), and as of the Closing Date, did not contain an untrue statement of a material fact or omitted or omits to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading; provided, in the case of each of the foregoing clauses (i) and (ii), that such representations and warranties do
not apply to statements or omissions made in reliance upon and in conformity with the Initial Purchaser Information or with regard to the information set forth in the Preliminary Offering Memorandum or the Offering Memorandum under the heading
“Structuring Assumptions”. The statements made in the “Structuring Assumptions” section of the Preliminary Offering Memorandum and the Offering Memorandum represent the good faith estimate of the Issuer, based on assumptions that the Issuer believes
to be reasonable, it being recognized, however, that such “Structuring Assumptions” sections, as expressly noted therein, contain projections, estimates and forecasts which are subject to significant contingencies and uncertainties, many of which are
beyond the control of the Issuer, and no assurances are given that such projections, estimates and forecasts will be achieved.
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(b) The descriptions of the Series 2020-1 Related Documents contained in the Preliminary Offering Memorandum and Offering Memorandum conform in all
material respects to the terms of the Series 2020-1 Related Documents.
(c) The statistical and market-related data included in the Additional Disclosure Documents, the Preliminary Offering Memorandum and the Offering
Memorandum are based on or derived from sources that the Issuer believes to be reliable and accurate in all material respects. The information concerning the Managed Containers and the Fleet that is included in the Additional Disclosure Documents,
the Preliminary Offering Memorandum and the Offering Memorandum presents fairly in all material respects the information purported to be stated therein. There has been no material adverse change in the container utilization, loss, delinquency, lessee
concentration, container type concentration and other information with respect to the Managed Containers or the Fleet from that set forth in the Additional Disclosure Documents, the Preliminary Offering Memorandum and the Offering Memorandum.
(d) Each of the Issuer and CAL is duly incorporated and validly existing and in good standing under the laws of the jurisdiction of its incorporation and
has full power and authority to own its properties and to conduct its business as the properties presently are owned and the business presently is conducted. The Issuer had at all relevant times, and now has, all necessary power, authority and legal
right to own in the manner contemplated by the Series 2020-1 Related Documents, the Managed Containers and the related Transferred Assets. CAL had at all relevant times, and now has, all necessary power, authority and legal right to transfer, in the
manner contemplated by the Series 2020-1 Related Documents, the Managed Containers and the Related Transferred Assets.
(e) Each of the Issuer and CAL is duly qualified to do business and is in good standing as a foreign entity (or is exempt from such requirements), and
has obtained all necessary licenses and approvals as required under Applicable Law, in each case, where the failure so to qualify, to be in good standing, to obtain such licenses and approvals or to preserve and maintain such qualification, licenses
or approvals that could have a material and adverse effect on its ability to perform any of its obligations under any Series 2020-1 Related Document to which it is a party.
(f) The Issuer has all necessary power and authority to execute and deliver the Notes. Each Note has been duly and validly authorized by the Issuer and,
from and after the date on which such Note is executed by the Issuer and authenticated by the Indenture Trustee in accordance with the terms of the Indenture and the Series 2020-1 Supplement and delivered to and paid for by the Initial Purchasers in
accordance with the terms of this Agreement, shall be validly issued and outstanding and shall constitute a valid and legally binding obligation of the Issuer, entitled to the benefits of the Indenture and the Series 2020-1 Supplement and enforceable
against the Issuer in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights generally and
by general principles of equity, regardless of whether enforceability is considered in a Proceeding in equity or at law.
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(g) Each of the Issuer and CAL has (i) all necessary power and authority to (A) execute and deliver this Agreement and the other Series 2020-1 Related
Documents to which it is a party, and (B) perform its obligations under this Agreement and the other Series 2020-1 Related Documents to which it is a party, and (ii) duly authorized, by all necessary action, the execution, delivery and performance of
this Agreement and the other Series 2020-1 Related Documents to which it is a party and the consummation of the transactions provided for in this Agreement and the other Series 2020-1 Related Documents to which it is a party.
(h) Each of this Agreement and the other Series 2020-1 Related Documents to which the Issuer and/or CAL is a party, when executed and delivered by it
(assuming the due authorization, execution and delivery thereof by the other parties thereto), shall constitute its legal, valid and binding agreement, enforceable against it in accordance with the terms thereof, except as enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity, regardless of whether enforceability is
considered in a Proceeding in equity or at law.
(i) This Agreement has been duly and validly executed and delivered by each of the Issuer and CAL.
(j) All authorizations, consents, orders and approvals of, or other action by, any Governmental Authority or any other Person that are required to be
obtained by the Issuer or CAL, as the case may be, and all notices to and filings with any Governmental Authority or any other Person that are required to be made by the Issuer or CAL in the case of each of the foregoing in connection with the due
execution, delivery, and performance by the Issuer or CAL, as the case may be, of this Agreement and the other Series 2020-1 Related Documents to which it is a party and the consummation of the transactions contemplated by this Agreement and the
Series 2020-1 Related Documents to which it is a party (including transfers by each Seller to the Issuer of the Managed Containers and the related Transferred Assets), have been obtained or made and are in full force and effect except where the
failure to obtain or make any such authorization, consent, order, approval, action, notice or filing, individually or in the aggregate for all such failures, would not reasonably be expected to have a material and adverse effect on the ability of the
Issuer, CAL or CAI, to perform any of its obligations under any Series 2020-1 Related Document to which it is a party.
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(k) The execution, delivery and performance of, and the consummation of the transactions contemplated by, this Agreement and the other Series 2020-1
Related Documents and the fulfillment of the terms hereof and thereof by the Issuer and/or CAL do not (i) conflict with, violate, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time or
both) a default under, (A) the constitutional documents of the Issuer or CAL, as the case may be, or (B) any material contract, indenture, loan agreement, mortgage, deed of trust or other agreement or instrument to which the Issuer or CAL is a party
or by which the Issuer or any of its properties is bound, (ii) result in the creation or imposition of any Lien upon any of the properties of the Issuer or CAL (other than as contemplated by the Series 2020-1 Related Documents), or (iii) conflict
with or violate any federal, state, local or foreign law or any decision, decree, order, rule or regulation of any Governmental Authority applicable to the Issuer or CAL, as the case may be, or any of its respective properties, in the case of each of
the foregoing clauses (i) through (iii), which conflict, violation, breach, default or Lien, individually or in the aggregate, would have a substantial likelihood of
having a material and adverse effect on the ability of the Issuer or CAL, as the case may be, to perform any of its obligations under any Series 2020-1 Related Document to which it is a party.
(l) Except as disclosed in the Additional Disclosure Documents, the Preliminary Offering Memorandum and the Offering Memorandum, since December 31, 2019,
(i) there has been no material adverse change in the condition, financial or otherwise, or the earnings, business affairs or business prospects of the Issuer or CAL, whether or not arising in the ordinary course of business, and (ii) there have been
no transactions entered into by the Issuer or CAL that are material with respect to the Issuer or CAL and that would be required to be disclosed under Applicable Law in connection with the offering, sale or resale of the Notes.
(m) There is no Proceeding or investigation pending or, to the best knowledge of the Issuer or CAL, as the case may be, threatened against it before any
court, regulatory body, arbitrator, administrative agency or other tribunal or governmental instrumentality, and none of the Issuer or CAL is subject to any order, judgment, decree, injunction, stipulation or consent order of or with any court or
other Governmental Authority that (i) asserts the invalidity of this Agreement or any other Series 2020-1 Related Document, (ii) seeks to prevent any transfer to the Issuer of any Managed Container or Related Transferred Asset, the issuance of the
Notes or the consummation of any transactions contemplated by this Agreement or any other Series 2020-1 Related Document, (iii) seeks any determination or ruling that would materially and adversely affect the performance by the Issuer or CAL, as the
case may be, of its respective obligations under this Agreement or any other Series 2020-1 Related Document or the validity or enforceability of this Agreement or any other Series 2020-1 Related Document, in the case of each of the foregoing clauses (i) through (iii), which individually or in the aggregate for all such actions, suits, Proceedings, investigations, orders, judgments, decrees, injunctions,
stipulations or consent orders would have a substantial likelihood of having a material and adverse effect on the ability of the Issuer or CAL to perform any of its respective obligations under any Series 2020-1 Related Document to which it is a
party.
(n) The Issuer does not own any “margin security,” as that term is defined in Regulation U of the Federal Reserve Board. Neither this Agreement, the
other Series 2020-1 Related Documents nor any transaction contemplated herein or therein or in the Additional Disclosure Documents, the Preliminary Offering Memorandum or the Offering Memorandum results in a violation of, or gives rise to an
obligation on the part of any Noteholder or Noteholder to register, file or give notice under, Regulations T, U or X of the Federal Reserve Board or any other regulation issued by the Federal Reserve Board pursuant to the Exchange Act, in each case
as in effect on the Closing Date.
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(o) Each of CAL and the Issuer is not, and is not controlled by, an “investment company” registered or required to be registered under the Investment
Company Act. The Issuer is not an "investment company" as defined in Section 3(a)(1) of the Investment Company Act although other exemptions may exist. The Issuer is not relying on the exemptions set forth in Section 3(c)(1) or Section 3(c)(7) of
the Investment Company Act. The Issuer is structured so as not to constitute a “covered fund” for purposes of the Volcker Rule under the Dodd-Frank Act.
(p) Neither the Issuer nor any of its “affiliates” (as defined in Regulation D under the Act) has directly, or through any agent, (i) sold, offered for
sale, solicited offers to buy or otherwise negotiated in respect of, any “security” (as defined in the Act) that is or shall be integrated with the sale of the Notes in a manner that would require the registration under the Act of the offering of the
Notes or (ii) assuming the accuracy of the representations and warranties of each Initial Purchaser in Section 9 hereof, engaged in any form of general solicitation or general advertising in connection with
the offering of the Notes (as those terms are used in Regulation D under the Act) or in any manner involving a public offering of the Notes within the meaning of Section 4(2) of the Act.
(q) Neither the Issuer nor any of its Affiliates or any Person acting on its behalf has engaged in any directed selling efforts (as that term is defined
in Regulation S) with respect to any Notes (provided that no representation is made as to the actions of any Initial Purchaser or any Person acting on its behalf). The Issuer and its Affiliates and any Person acting on its behalf (provided that no
representation is made as to the actions of any Initial Purchaser or any Person acting on its behalf) have complied with the offering restrictions and the requirements of Regulation S in connection with any offering of Notes outside the United
States.
(r) Assuming the representations and warranties of each Initial Purchaser in Section 9 hereof are true, and
assuming compliance by the Initial Purchasers with their covenants and agreements set forth herein, it is not necessary in connection with the offer, sale and delivery of the Notes in the manner contemplated by this Agreement, the Additional
Disclosure Documents, the Preliminary Offering Memorandum and the Offering Memorandum to register any of the Notes under the Act or to qualify the Indenture under the Trust Indenture Act of 1939, as amended.
(s) On the date hereof and the Closing Date, (i) each of the representations and warranties of the Issuer and CAL that is set forth in this Agreement, the
Indenture or the other Series 2020-1 Related Documents is true and correct in all material respects and (ii) none of the Issuer or CAL is or shall be in breach of any covenant or agreement set forth in this Agreement, the Indenture or any other
Series 2020-1 Related Document. Each Initial Purchaser may rely on the representations and warranties of the Issuer or CAL in any Series 2020-1 Related Document as if such representations and warranties were set forth in this Agreement in full.
(t) No Early Amortization Event for any Series or Event of Default for any Series of Notes, or event which with the giving of notice or passage of time
or both would become an Early Amortization Event or Event of Default for any Series of Notes, has occurred and is continuing.
(u) The Series 2020-1 Notes will not be of the same class (within the meaning of Rule 144A under the Act) as securities that are listed on a national
securities exchange registered under Section 6 of the Exchange Act or quoted in a U.S. automated inter-dealer quotation system. The Notes meet the eligibility requirements of Rule 144A(d)(3) of the Act.
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(v) Neither the Issuer nor any of its Affiliates has purchased, or is purchasing, any Notes.
(w) The Issuer has not taken, directly or indirectly, any action prohibited by Rule 102 of Regulation M under the Exchange Act.
(x) The Issuer reasonably believes that based on the procedures it has put in place in connection with the Series 2020-1 Related Documents (and assuming
compliance by each Initial Purchaser with the provisions hereof) to ensure that all purchasers and transferees of the Notes are Permitted Transferees, the sale of the Notes to the initial Series 2020-1 Noteholders and the subsequent transfers of the
Notes will only be made to Permitted Transferees as set forth above and in accordance with the Indenture.
(y) CAL has executed and delivered a written representation (the “17g-5 Representation”) to Standard & Poor’s that CAL will comply with the
requirements applicable to sponsors as and to the extent required under Rule 17g-5(a)(3)(iii)(A) through (D) under the U.S. Securities Exchange Act of 1934, as amended (“Rule 17g-5”) with respect to the Notes,
and CAL has complied with the 17g-5 Representation. CAL acknowledges and agrees that, as between CAL and the Initial Purchasers, CAL is solely responsible for compliance with Rule 17g-5 in connection with the issuance and monitoring of the credit
ratings on the Series 2020-1 Notes.
(z) Neither the Issuer nor any of its Affiliates has received an order from the Commission, any state securities
commission, or any foreign government or agency thereof preventing or suspending the offering of the Notes or the use of the Preliminary Offering Memorandum or the Offering Memorandum, and to the best knowledge
of the Issuer no such order has been issued and no proceedings for that purpose have been instituted.
(aa) Except for the Initial Purchasers, neither the Issuer nor CAL has employed or retained a broker, finder, commission
agent or other person in connection with the sale of the Notes, and neither the Issuer nor the Manager is under any obligation to pay any broker’s fee or commission in connection with such sale.
(bb) Each of the Issuer and CAL conducted its businesses in compliance with the United States Foreign Corrupt Practices Act
of 1977, the UK Bribery Act 2010, and other similar applicable anti-corruption legislation in other jurisdictions and have instituted and maintained policies and procedures designed to promote and achieve compliance with such laws.
(cc) The operations of the Issuer and CAL are and have been conducted at all times in material compliance with
applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions, the rules and regulations thereunder and any related or
similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or
governmental agency, authority or body or any arbitrator involving the Issuer and/or CAL with respect to the Money Laundering Laws is pending or, to the knowledge of the Issuer and/or CAL, threatened.
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(dd) None of the Issuer or CAL nor, to their knowledge, any of their respective directors, officers, employees, agents,
affiliates or representatives thereof, is an individual or entity that is, or is owned or controlled by any individual or entity that is (i) currently the subject or target of any Sanctions, (ii) included on OFAC’s List of Specially Designated
Nationals, HMT’s Consolidated List of Financial Sanctions Targets and the Investment Ban List, or any similar list enforced by any other relevant sanctions authority or (iii) located, organized or resident in a Designated Jurisdiction.
(ee) The operations of the Issuer and CAL are and have been conducted at all applicable times in material compliance with
the USA Patriot Act of 2001, as amended, and the rules and regulations thereunder.
(ff) Neither the Issuer nor CAL has engaged any third-party due diligence services providers to provide any “due diligence services” (as defined in Rule
17g-10(d)(1) under the Exchange Act), other than the independent accountants engaged for the purpose of delivering the Independent Accountants’ Report on Applying Agreed-Upon Procedures, dated on or about May 2, 2017 (such independent accountants,
the “Accountants”, and such report, the “Report”), and the only report generated as a result of such engagement is the Report. A copy of the Form ABS-15E furnished with respect to the Report was provided to the Initial Purchasers at least one
Business Day prior to the furnishing of the correlative Form ABS-15G on EDGAR (the “Form ABS-15G”). The Report is, as amongst the parties to this Agreement, deemed to have been obtained by the Issuer pursuant to Rule 15Ga-2(a) and (b) under the
Exchange Act. No portion of the Form ABS-15G contains any names, addresses, other personal identifiers or zip codes with respect to any individuals, or any other personally identifiable or other information that would be associated with an
individual, including without limitation any “nonpublic personal information” within the meaning of Title V of the Gramm-Leach-Bliley Financial Services Modernization Act of 1999, in the case of each of the foregoing, other than name, title, and
signature of a signatory.
(gg) CAL has complied, and is the appropriate entity to comply, with all requirements imposed on the “sponsor of a securitization transaction” in accordance
with the final rules contained in Regulation RR, 17 C.F.R. §246.1, et seq. (the “Credit Risk Retention Rules”) implementing the credit risk retention requirements of Section 15G of the Exchange Act, in each
case directly or (to the extent permitted by the Credit Risk Retention Rules) through one or more majority-owned affiliates (as defined in the Credit Risk Retention Rules, each a “Majority-Owned Affiliate”).
CAL or one or more of its Majority-Owned Affiliates will hold an “eligible horizontal residual interest” (as defined in the Credit Risk Retention Rules) equal to at least 5% of the fair value of all the “ABS interests” (as defined in the Credit Risk
Retention Rules) in the Issuer issued as part of the transactions contemplated by the Series 2020-1 Related Documents, determined as of the closing date using a fair value measurement framework under United States generally accepted accounting
principles (such interest, the “Retained Interest”). CAL has determined such fair value of the Retained Interest based on its own valuation methodology, inputs and assumptions and is solely responsible
therefor.
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SECTION 4A Representation and Warranties of CAI. CAI represents and warrants to each Initial Purchaser as of the date hereof and as of the Closing
Date (or if specifically stated below to be made as of another particular time or date, as of such time or date instead) as follows:
(a) CAI is duly incorporated and validly existing and in good standing under the laws of the jurisdiction of its incorporation and has full power and
authority to own its properties and to conduct its business as the properties presently are owned and the business presently is conducted. CAI had at all relevant times, and now has, all necessary power, authority and legal right to manage the
Managed Containers and the related Transferred Assets in the manner contemplated by the Series 2020-1 Related Documents.
(b) CAI is duly qualified to do business and is in good standing as a foreign entity (or is exempt from such requirements), and has obtained all necessary
licenses and approvals as required under Applicable Law, in each case, where the failure so to qualify, to be in good standing, to obtain such licenses and approvals or to preserve and maintain such qualification, licenses or approvals that could
have a material and adverse effect on its ability to perform any of its obligations under any Series 2020-1 Related Document to which it is a party.
(c) CAI has (i) all necessary power and authority to (A) execute and deliver this Agreement and the other Series 2020-1 Related Documents to which it is
a party, and (B) perform its obligations under this Agreement and the other Series 2020-1 Related Documents to which it is a party, and (ii) duly authorized, by all necessary action, the execution, delivery and performance of this Agreement and the
other Series 2020-1 Related Documents to which it is a party and the consummation of the transactions provided for in this Agreement and the other Series 2020-1 Related Documents to which it is a party.
(d) Each of this Agreement and the other Series 2020-1 Related Documents to which CAI is a party, when executed and delivered by it (assuming the due
authorization, execution and delivery thereof by the other parties thereto), shall constitute its legal, valid and binding agreement, enforceable against it in accordance with the terms thereof, except as enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity, regardless of whether enforceability is considered in a Proceeding in
equity or at law.
(e) This Agreement has been duly and validly executed and delivered by CAI.
(f) All authorizations, consents, orders and approvals of, or other action by, any Governmental Authority or any other Person that are required to be
obtained by CAI and all notices to and filings with any Governmental Authority or any other Person that are required to be made by the CAI in the case of each of the foregoing in connection with the due execution, delivery, and performance by the CAI
of this Agreement and the other Series 2020-1 Related Documents to which it is a party and the consummation of the transactions contemplated by this Agreement and the Series 2020-1 Related Documents to which it is a party have been obtained or made
and are in full force and effect except where the failure to obtain or make any such authorization, consent, order, approval, action, notice or filing, individually or in the aggregate for all such failures, would not reasonably be expected to have a
material and adverse effect on the ability of CAI to perform any of its obligations under any Series 2020-1 Related Document to which it is a party.
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(g) The execution, delivery and performance of, and the consummation of the transactions contemplated by, this Agreement and the other Series 2020-1
Related Documents and the fulfillment of the terms hereof and thereof by CAI do not (i) conflict with, violate, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time or both) a default
under, (A) the constitutional documents of CAI, or (B) any material contract, indenture, loan agreement, mortgage, deed of trust or other agreement or instrument to which CAI is a party or by which it or any of its properties is bound, (ii) result in
the creation or imposition of any Lien upon any of the properties of CAI (other than as contemplated by the Series 2020-1 Related Documents), or (iii) conflict with or violate any federal, state, local or foreign law or any decision, decree, order,
rule or regulation of any Governmental Authority applicable to CAI or any of its respective properties, in the case of each of the foregoing clauses (i) through (iii),
which conflict, violation, breach, default or Lien, individually or in the aggregate, would have a substantial likelihood of having a material and adverse effect on the ability of CAI to perform any of its obligations under any Series 2020-1 Related
Document to which it is a party.
(h) Except as disclosed in the Additional Disclosure Documents, the Preliminary Offering Memorandum and the Offering Memorandum, since December 31, 2019,
(i) there has been no material adverse change in the condition, financial or otherwise, or the earnings, business affairs or business prospects of CAI, whether or not arising in the ordinary course of business, and (ii) there have been no
transactions entered into by CAI that are material with respect to CAI and that would be required to be disclosed under Applicable Law in connection with the offering, sale or resale of the Notes.
(i) There is no Proceeding or investigation pending or, to the best knowledge of CAI threatened against it before any court, regulatory body, arbitrator,
administrative agency or other tribunal or governmental instrumentality, and CAI is not subject to any order, judgment, decree, injunction, stipulation or consent order of or with any court or other Governmental Authority that (i) asserts the
invalidity of this Agreement or any other Series 2020-1 Related Document, (ii) seeks to prevent the consummation of any transactions contemplated by this Agreement or any other Series 2020-1 Related Document, (iii) seeks any determination or ruling
that would materially and adversely affect the performance by CAI of its obligations under this Agreement or any other Series 2020-1 Related Document to which it is a party or the validity or enforceability of this Agreement or any other Series
2020-1 Related Document, in the case of each of the foregoing clauses (i) through (iii), which individually or in the aggregate for all such actions, suits,
Proceedings, investigations, orders, judgments, decrees, injunctions, stipulations or consent orders would have a substantial likelihood of having a material and adverse effect on the ability of CAI to perform any of its obligations under any Series
2020-1 Related Document to which it is a party.
(j) On the date hereof and the Closing Date, (i) each of the representations and warranties of CAI that is set forth in this Agreement or the other
Series 2020-1 Related Documents is true and correct in all material respects and (ii) CAI is not or shall be in breach of any covenant or agreement set forth in this Agreement or any other Series 2020-1 Related Document to which it is a party. Each
Initial Purchaser may rely on the representations and warranties of CAI in any Series 2020-1 Related Document as if such representations and warranties were set forth in this Agreement in full.
(k) None of CAI nor, to its knowledge, any of its directors, officers, employees, agents, affiliates or representatives of CAI, is an individual or entity
that is, or is owned or controlled by any individual or entity that is (i) currently the subject or target of any Sanctions, (ii) included on OFAC’s List of Specially Designated nationals, HMT’s Consolidated List of Financial Sanctions Targets and
the Investment Ban List, or any similar list enforced by any other relevant sanctions authority or (iii) located, organized or resident in a Designated Jurisdiction.
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(l) The operations of CAI are and have been conducted at all applicable times in material compliance with the USA Patriot Act of 2001, as amended, and
the rules and regulations thereunder.
SECTION 5. Offering by each Initial Purchaser.
(a) Each Initial Purchaser proposes to make an offering of the Notes, upon the terms set forth in the Offering Memorandum, as soon as practicable after
this Agreement is entered into and as in its judgment is advisable. During the period from the date of this Agreement until the applicable Initial Purchaser has sold all of the Notes, the Issuer agrees (i) to reasonably assist such Initial Purchaser
in any marketing of the Notes and (promptly upon request) to provide all information reasonably deemed necessary by such Initial Purchaser in such marketing and (ii) to use commercially reasonable efforts to make appropriate officers and
representatives of the Issuer available to participate in information meetings for potential Series 2020-1 Noteholders at such times and places as any Initial Purchaser may reasonably request.
(b) Each of the Issuer and CAL acknowledges and agrees that each Initial Purchaser is acting solely in the capacity of an arm’s length contractual
counterparty to the Issuer with respect to the offering of the Notes contemplated hereby (including in connection with determining the terms of the offering) and not as a financial advisor or a fiduciary to, or an agent of, the Issuer or any other
Person. Additionally, neither Initial Purchaser is advising the Issuer or any other Person as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction. Each of the Issuer and CAL shall consult with its own advisors
concerning such matters and shall be responsible for making its own independent investigation and appraisal of the transactions contemplated hereby, and neither Initial Purchaser shall have responsibility or liability to the Issuer or any other
Person with respect thereto. Any review by the Initial Purchasers of the Issuer, CAL, the transactions contemplated hereby or other matters relating to such transactions will be performed solely for the benefit of the Initial Purchasers and shall not
be on behalf of the Issuer, CAL or any other party.
(c) The Issuer acknowledges and agrees that:
(i) the Issuer has been advised that each Initial Purchaser and its respective Affiliates are engaged in a broad range of
transactions which may involve interests that differ from those of the Issuer and that such Initial Purchaser has no obligation to disclose such interests and transactions to the Issuer by virtue of any fiduciary, advisory or agency relationship; and
(ii) the Issuer waives, to the fullest extent permitted by law, any claims it may have against any Initial Purchaser for breach of
fiduciary duty or alleged breach of fiduciary duty and agrees that neither Initial Purchaser shall have liability (whether direct or indirect) to the Issuer in respect of such a fiduciary duty claim or to any Person asserting a fiduciary duty claim
on behalf of or in right of the Issuer, including stockholders, employees or creditors of the Issuer.
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SECTION 6. Covenants of the Issuer and CAL.
(a) The Issuer covenants and agrees with each Initial Purchaser that:
(i) The Issuer shall not amend or supplement the Additional Disclosure Documents, the Preliminary Offering Memorandum, the Offering
Memorandum or any amendment thereof or supplement thereto unless the Initial Purchasers previously shall have been advised thereof and been furnished a copy thereof prior to the proposed amendment or supplement and shall have been given a reasonable
opportunity to review such amended and supplemented Preliminary Offering Memorandum or Offering Memorandum, or amendment or supplement thereto as the case may be (but in no event shall such period be less than five (5) Business Days). During the
period beginning on the date hereof and ending on the date on which the Initial Purchasers shall have sold all of the Notes purchased by them hereunder, the Issuer shall, promptly upon the reasonable request by the Initial Purchasers, prepare any
amendments of or supplements to the Offering Memorandum that, in the opinion of the Initial Purchasers, may be necessary or advisable in connection with the resale of the Notes by the Initial Purchasers. During the period beginning on the date hereof
and ending on the date on which the Initial Purchasers shall have sold all of the Notes, the Issuer shall, to the extent practicable (taking into account the disclosure requirements and restrictions imposed by Applicable Law), supply the Initial
Purchasers with drafts or duplicate copies of any reports required to be filed by the Issuer with the Commission at least two (2) Business Days prior to any such filing, and in any event shall supply such reports to the Initial Purchasers
concurrently with any such filing thereof.
(ii) The Issuer shall take any action to arrange for the qualification or exemption of the Notes for offer, sale and resale under the
securities or “Blue Sky” laws of any state that any Initial Purchaser shall reasonably request and shall pay all reasonable expenses (including reasonable fees and disbursements of counsel) in connection with the qualification or exemption and in
connection with the determination of the eligibility of the Notes for investment under the laws of the jurisdictions that such Initial Purchaser may designate. Thereafter, while any of the Notes remain Outstanding, the Issuer shall arrange for the
filing and making of, and shall pay all fees applicable to, any statements and reports and renewals of registration necessary in order to continue to qualify or exempt the Notes for secondary market transactions in those jurisdictions in which the
Notes were originally registered or exempted for sale in accordance with the preceding sentence. If an Initial Purchaser shall pay any of the fees or expenses referred to in this Section 6(a)(ii), the Issuer
shall promptly reimburse such Initial Purchaser; it being understood and agreed that the reimbursement shall not be subject to any limitations on reimbursement set forth in Section 7 hereof.
(iii) If, at any time prior to the time at which an Initial Purchaser shall have sold all of the Notes, any event occurs or condition
exists as a result of which it is necessary or desirable, in the reasonable opinion of such Initial Purchaser or Issuer, to amend or supplement the Offering Memorandum in order that the Offering Memorandum shall not include an untrue statement of a
material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made or existing at the time the Offering Memorandum is delivered to a prospective Series
2020-1 Noteholder not misleading, or if for any other reason it is necessary at any time to amend or supplement the Offering Memorandum to comply with Applicable Law, the Issuer shall promptly notify such Initial Purchaser or such Initial Purchaser
shall promptly notify the Issuer thereof, as applicable, and the Issuer shall prepare and deliver to such Initial Purchaser, at the expense of the Issuer, an amendment of or supplement to the Offering Memorandum that (i) corrects the statement or
omission or (ii) effects such compliance, as the case may be.
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(iv) The Issuer shall, without charge, provide to each Initial Purchaser as many copies of the Additional Disclosure Documents, the
Preliminary Offering Memorandum and the Offering Memorandum as such Initial Purchaser may reasonably request.
(v) The Issuer shall apply the proceeds from the sale of the Notes (i) to acquire from CAL the Managed Containers and Related Assets,
(ii) to fund the initial deposits to the Series 2020-1 Restricted Cash Account, (iii) to pay the cost of issuance of the Notes and (iv) for other purposes contemplated under the Series 2020-1 Related Documents. The Issuer shall not use the proceeds
of the sale of the Notes or any part thereof, directly or indirectly, to purchase or carry any “margin security” (as defined in Regulations T, U or X issued by the Federal Reserve Board) or to reduce or retire any indebtedness originally incurred to
purchase any margin security.
(vi) Neither the Issuer nor any of its “affiliates” (as defined in Regulation D under the Act), directly or through any agent, shall
sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any “security” (as defined in the Act) that is or that could be integrated with the sale of the Notes in a manner that would require the registration of the Notes
under the Act.
(vii) The Issuer shall not, and shall not permit any of its “affiliates” (as defined in Regulation D under the Act) to, directly or
through any agent, solicit any offer to buy or offer to sell the Notes by means of any form of general solicitation or general advertising (as those terms are used in Regulation D under the Act) or in any manner involving a public offering within the
meaning of Section 4(2) of the Act.
(viii) Neither the Issuer nor any of its Affiliates or any Person acting on its behalf (provided that
no covenant is made as to the actions of any Initial Purchaser or any Person acting on its behalf) shall engage in any directed selling efforts (as that term is defined in Regulation S) with respect to any Notes, and the Issuer, all of its Affiliates
and any Person acting on its behalf shall comply with the offering restrictions and the requirements of Regulation S in connection with the offering of Notes outside the United States.
(ix) The Issuer shall not, and shall not permit any of its Affiliates to, contact or solicit potential investors to purchase any Note,
engage any Person to assist in the placement or sale of the Notes or sell any Notes to any Person, in the case of each of the foregoing, other than any Initial Purchaser except as consented to in writing by such Initial Purchaser.
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(x) So long as any of the Notes are “restricted securities” within the meaning of Rule 144 under the Act, the Issuer shall, unless it
becomes subject to and complies with the reporting requirements of Section 13 or 15(d) of the Exchange Act, provide to any Series 2020-1 Noteholder or Noteholder, and to any prospective Series 2020-1 Noteholder or Noteholder designated by a Series
2020-1 Noteholder or Noteholder, upon the request of such Series 2020-1 Noteholder or Noteholder or prospective Series 2020-1 Noteholder or Noteholder, any information required to be provided by Rule 144A(d)(4) under the Act. This covenant is
intended to be for the benefit of the Series 2020-1 Noteholders and Noteholders, and prospective Series 2020-1 Noteholders and Noteholders designated by such Series 2020-1 Noteholders or Noteholders, from time to time of such restricted securities.
(xi) The Issuer shall cause the Notes to be eligible for clearance and settlement through The Depository Trust Company, Clearstream and
the Euroclear Clearing System.
(xii) Until all obligations under the Notes and the Series 2020-1 Supplement shall have been finally and fully paid and performed, the
Issuer or the Manager on its behalf shall deliver to each Initial Purchaser contemporaneously with the delivery thereof to the Indenture Trustee, copies of each (A) Manager Report at the times when it is delivered pursuant to the Management Agreement
and (B) Accountants Report (as defined in the Management Agreement), at the times when it is delivered pursuant to the Management Agreement.
(xiii) The Issuer shall not, and shall not permit any of its respective Affiliates to, sell or otherwise transfer any Notes that have
been acquired by it.
(xiv) Except with respect to the Notes to be issued on the Closing Date, during the period commencing on the date hereof and ending on
the thirtieth (30th) day after the Closing Date, the Issuer shall not cause or permit any of its Affiliates to make or issue any borrowings, debt instruments or
securities similar to the Notes (whether issued or guaranteed by the Issuer or any of its Affiliates), which are either placed or syndicated by the Issuer or any of its Affiliates in the international or U.S. capital markets, directly or on their
behalf, in any manner which could in the sole judgment of any Initial Purchaser have a detrimental effect on the successful offering, sale or resale of the Notes unless mutually agreed to in writing by each Initial Purchaser and the Issuer.
(xv) Neither the Issuer nor any Person acting on its behalf shall make offers or sales of securities under circumstances that would
require the registration of the Notes under the Act or permit or require the Issuer to become an “investment company” registered or required to be registered under the Investment Company Act.
(xvi) If the ratings assigned to the Notes are dependent upon the delivery to the applicable Rating Agency of the executed Series 2020-1
Related Documents, the Issuer shall deliver the required copies of such documents to such Rating Agency within thirty (30) days after the Closing Date.
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(xvii) Neither the Issuer, nor any of its Affiliates, nor any Person acting on its behalf (provided that no covenant is made as to the
actions of any Initial Purchaser or any Person acting on its behalf) will sell the Notes by means of any general solicitation or general advertising within the meaning of Rule 502(c) under the Securities Act.
(xviii) From the date hereof and prior to the Closing Date, the Issuer will notify each Initial Purchaser with respect to the suspension of
the qualification of the Notes for sale in any jurisdiction or the initiation of any Proceeding for such purpose (to the extent the Issuer is aware of any such suspension or the initiation of any such Proceeding).
(xix) The Issuer shall conduct its businesses in compliance with the United States Foreign Corrupt Practices Act of 1977, the UK Bribery
Act 2010, and other similar applicable anti-corruption legislation in other jurisdictions, and maintain policies and procedures designed to promote and achieve compliance with such laws.
(xx) The Issuer shall not, directly or indirectly, use the proceeds of the issuance of the Notes, or lend, contribute or otherwise make
available such proceeds to any parent, subsidiary, joint venture partner or other individual or entity, to fund any activities of or business with any individual or entity, or in any Designated Jurisdiction, that, at the time of such funding, is the
subject of Sanctions, or in any other manner that will result in a violation by an individual or entity (including any Initial Purchaser) of Sanctions.
(xxi) The Issuer shall not, directly or indirectly, use the proceeds of the issuance of the Notes for any purpose which would breach the
United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010 and other similar applicable anti-corruption legislation in other jurisdictions.
(xxii) CAL covenants and agrees with each Initial Purchaser that it will comply, and will cause the Issuer to comply, with the 17g-5
Representation.
(xxiii) CAL shall, or (to the extent permitted by the Credit Risk Retention Rules) one or more Majority-Owned Affiliates shall, continue to
comply with all requirements imposed on the “sponsor of a securitization transaction” by the Credit Risk Retention Rules for so long as those requirements are applicable, including holding the Retained Interest for the duration required in the Credit
Risk Retention Rules, without any impermissible hedging, transfer or financing of the Retained Interest. CAL is and will be solely responsible for compliance with the disclosure requirements of the Credit Risk Retention Rules, including the contents
of all such disclosures, ensuring that the required pre-sale disclosures are contained in the Offering Memorandum, and ensuring that any required post-closing disclosures are provided to investors timely and by an appropriate method that does not
require any involvement of the Initial Purchasers.
(xxiv) CAL shall provide all notices, and take such other actions, as are necessary to arrange for payment in full (A) on September 25,
2020, the CAL III Series 2017-1 Notes and the CAL III Series 2018-1 Notes, and (B) on October 26, 2020, the CAL III Series 2018-2 Notes (each of such dates, a “Series 2020-1 Managed Container Purchase Date”).
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(xxv) CAL shall deliver to the Indenture Trustee and the Initial Purchasers on each Managed Container Purchase Date evidence of the
release of any lien, claim and encumbrance (other that Permitted Encumbrances) on the Transferred Assets to be acquired by the Issuer on each such date.
SECTION 7. Expenses; Fees. In addition to the rights of indemnification granted to the Purchaser Indemnified Parties under Section 10, the Issuer
covenants and agrees with the several Initial Purchasers that the Issuer will pay or cause to be paid the following: (i) the fees, disbursements and expenses of the Issuer’s and each Initial Purchaser’s counsel and accountants in connection with (A)
to the extent applicable, the registration of the Notes under the Act, (B) the preparation, printing, reproduction and filing of the Additional Disclosure Documents, the Preliminary Offering Memorandum or the Offering Memorandum, (C) the mailing and
delivering of copies thereof to the Initial Purchasers and dealers, and (D) the preparation, documentation and execution of the Series 2020-1 Related Documents; provided that the Initial Purchasers shall have a single outside counsel, Dentons US LLP,
represent them for purposes of this clause (i); (ii) the cost of printing or reproducing this Agreement, the Indenture, any Blue Sky Memorandum and any other documents in connection with the offering, purchase, sale and delivery of the Notes; (iii)
all out-of-pocket expenses of the Initial Purchasers in connection with the qualification of the Notes for offering and sale under state securities laws as provided in Section 6(a)(ii) hereof, including the
reasonable fees and disbursements of counsel for the Initial Purchasers in connection with such qualification and in connection with the Blue Sky survey(s); (iv) any fees charged by securities rating services for rating the Notes; (v) any filing fees
incident to, and the fees and disbursements of counsel for the Initial Purchasers in connection with, any required reviews by the Financial Industry Regulatory Authority of the terms of the sale of the Notes; (vi) the cost of preparing certificates
for the Notes; (vii) all out-of-pocket expenses incurred by the Issuer and the Initial Purchasers in connection with any “net road show website" for potential investors, (viii) the fees and expenses of the Indenture Trustee and any agent of the
Indenture Trustee and the fees and disbursements of counsel for the Indenture Trustee in connection with the Indenture and the Notes; (ix) all costs and out-of-pocket expenses incurred by any Purchaser Indemnified Party with respect to enforcing its
respective rights and remedies as against the Issuer, CAI or CAL under this Agreement, the Indenture, any Note, any other Series 2020-1 Related Document to which the Issuer or CAL is a party, (x) all costs and out-of-pocket expenses incurred in
connection with the amendment or modification of, or any waiver or consent, made at the request of the Issuer, CAL or any of their respective Affiliates, and issued in connection with, this Agreement, the Indenture, any Note, any other Series 2020-1
Related Document to which the Issuer or CAL is a party and (xi) all other costs and out-of-pocket expenses incident to the performance of its obligations hereunder which are not otherwise specifically provided for in this Section. It is understood,
however, that, except as provided in this Section 7 and Sections 10 and 12, the Initial Purchasers will pay all of their own costs and expenses.
SECTION 8. Conditions of each Initial Purchaser’s Obligation. The obligation of each Initial Purchaser to purchase and pay for Notes in the initial
principal amount set forth on Schedule I hereto opposite its name shall, in its sole discretion, be subject to the satisfaction of all of the following conditions on the Closing Date:
(a) The Issuer shall have good title to the Managed Containers and the other Collateral, free and clear of all Liens other than Permitted Encumbrances.
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(b) The Issuer shall have (i) caused all Uniform Commercial Code financing statements (or documents of similar import) required to perfect the first
priority security interest of the Indenture Trustee pursuant to the Indenture in the Collateral and related items, in each case, to be duly filed in the manner required by the laws of each appropriate jurisdiction, (ii) caused all Uniform Commercial
Code financing statements (or documents of similar import) required to (A) perfect the first priority security interest of the Issuer (and the Indenture Trustee as assignee of the Issuer) pursuant to the Contribution and Sale Agreement and (B)
release any existing lien, charge or encumbrance (other than Permitted Encumbrances) on any Transferred Assets to be acquired by the Issuer on the Closing Date); and (iii) paid, or caused to be paid, all transfer taxes, documentary stamp taxes and
filing fees incurred in connection therewith.
(c) All corporate and other proceedings in connection with the transactions contemplated hereby and by the Series 2020-1 Related Documents and all
documents incidental thereto shall be satisfactory in form and substance to each Initial Purchaser and its counsel, and such Initial Purchaser shall have received its Notes and any other documents incident to the transactions contemplated hereby and
by the Series 2020-1 Related Documents that such Initial Purchaser or its counsel shall reasonably request. Each Initial Purchaser or its counsel shall have received on the Closing Date certified copies of all documents evidencing corporate or other
organizational action taken by the Issuer, CAL, CAI and the Indenture Trustee to approve the execution and delivery of this Agreement and the other Series 2020-1 Related Documents to which they are a party and the consummation of the transactions
contemplated hereby and thereby.
(d) The Series 2020-1 Related Documents and the Notes shall conform in all material respects to the descriptions thereof contained in the Additional
Disclosure Documents, the Preliminary Offering Memorandum and the Offering Memorandum. Immediately prior to the sale of the Notes to the Initial Purchasers, the Notes shall have been executed by the Issuer and authenticated by or on behalf of the
Indenture Trustee, and this Agreement and each of the other Series 2020-1 Related Documents that is to be executed and delivered on or prior to the Closing Date shall have been executed and delivered by the Issuer, CAI, CAL and all other parties
thereto. Each Initial Purchaser and the Indenture Trustee shall have received on the Closing Date a true and correct copy of each Series 2020-1 Related Document delivered on or prior to the Closing Date, and each Initial Purchaser or its authorized
representative shall have received its original Notes.
(e) Each Initial Purchaser or its counsel shall have received on the Closing Date signature and incumbency certificates executed by Authorized Signatories
of the Issuer, CAL, CAI and the Indenture Trustee certifying the identities and signatures of those officers who executed each of this Agreement and the other Series 2020-1 Related Documents delivered in connection with Series 2020-1 to which the
Issuer, CAL, CAI or the Indenture Trustee, as the case may be, is a party.
(f) The purchase of the Notes by any Initial Purchaser shall be permitted by the laws and regulations to which such Initial Purchaser is subject.
(g) The Class A Notes shall have been rated not less than “A (sf)” by Standard & Poor’s, and the Class B Notes shall have been rated not less than
"BBB (sf)" by Standard & Poor's. The Rating Agency Condition shall have been satisfied with respect to the Series 2017-1 Notes and the Series 2018-1 Notes issued by the Issuer. Such ratings of the Class A Notes and the Class B Notes shall be in
full force and effect and each Initial Purchaser shall have received on the Closing Date a letter from Standard & Poor’s dated on or before the Closing Date to such effect.
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(h) Subsequent to the respective dates as of which information is given in the Additional Disclosure Documents, the Preliminary Offering Memorandum and
the Offering Memorandum, there shall not have occurred (i) any material adverse change, or any development involving a prospective material adverse change, in the condition (financial or otherwise) or in the earnings, business, operations or business
prospects of the Issuer, the Manager, CAL or CAI (collectively, a “CAL Person”), whether or not arising in the ordinary course of business that, in the sole judgment of any Initial Purchaser, makes it
impracticable or inadvisable to purchase the Notes or to proceed with the offering, sale, resale or delivery of the Notes, (ii) any other event or occurrence that could have a material adverse effect on the ability of the Issuer to perform any of its
obligations under any Series 2020-1 Related Document to which it is a party or a material adverse effect on the value of the Managed Containers or the rights and remedies of the Indenture Trustee or any Series 2020-1 Noteholder under any Series
2020-1 Related Document, that, in the sole judgment of any Initial Purchaser, makes it impracticable or inadvisable to purchase the Notes or to proceed with the offering, sale, resale or delivery of the Notes, (iii) a general moratorium on commercial
banking activities declared by any state of the United States or United States authorities, (iv) any downgrading in, or withdrawal of, the rating (including any “shadow rating”) accorded to securities (or the placement of any such securities on any
watch or similar list with negative implications) issued by any CAI Person or the Notes by any “nationally recognized statistical rating organization,” as that term is defined for purposes of Rule 436(g) under the Act, or any public announcement that
any such organization has under surveillance or review its rating (including any “shadow rating”) of the Notes (other than an announcement with positive implications of a possible upgrading, and no implication of a possible downgrading, of the
rating), (v) any outbreak or escalation of hostilities, insurrection or armed conflict in which the United States of America is involved, any declaration of war by Congress or any other national or international calamity or emergency that in the sole
judgment of any Initial Purchaser makes it impractical or inadvisable to purchase the Notes or to proceed with the offering, sale, resale or delivery of the Notes, or (vi) any material adverse change in financial, political or economic conditions
having an effect on the U.S. or Western European financial markets that in the sole judgment of any Initial Purchaser makes it impractical or inadvisable to purchase the Notes or to proceed with the offering, sale, resale or delivery of the Notes.
(i) Each Initial Purchaser shall have received opinions, dated the Closing Date, addressed to such Initial Purchaser and in form and substance
satisfactory to its counsel, of (i) Perkins Coie LLP, U.S. counsel to the Issuer and the Seller, Conyers Dill & Pearman Limited, special Bermuda counsel to the Issuer, and Clarke Gittens Farmer, special Barbados counsel to the Seller, as to (A)
perfection of the Indenture Trustee’s interest in the Collateral and other UCC matters, (B) “true sale,” “substantive consolidation” and "perfection" matters regarding CAL, certain Affiliates (including CAL III) and the Issuer, (C) corporate, tax and
other matters, and (D) securities laws matters, in each case as applicable; and (ii) counsel to the Indenture Trustee, as to certain matters relating to the Indenture Trustee.
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(j) Each Initial Purchaser shall have received each of a negative assurance letter, dated the Closing Date, addressed to each Initial Purchaser and in
form and substance satisfactory to its counsel, of Perkins Coie LLP, U.S. counsel to the Issuer.
(k) Each Initial Purchaser shall have received one or more letters from an Independent Accountant dated the Closing Date, in form and substance
satisfactory to such Initial Purchaser and its counsel, containing statements and information of the type ordinarily included in accountants’ “comfort letters” with respect to information contained in the Preliminary Offering Memorandum and the
Offering Memorandum.
(l) The representations and warranties of each of the Issuer, CAL and CAI contained in this Agreement and in the other Series 2020-1 Related Documents to
which it is a party shall be true and correct as of the date hereof and as of the Closing Date. Each of the Issuer, CAL and CAI shall have performed all covenants and agreements and satisfied all conditions on its part to be performed or satisfied
hereunder and under the Series 2020-1 Related Documents on or prior to the Closing Date; since December 31, 2019, there has been no material adverse change in the business, condition (financial or otherwise) or results of operations or business
prospects of the Issuer, CAL and CAI; and no event shall have occurred and no condition shall exist that would constitute (or which with the giving of notice or passage of time or both would constitute) an Early Amortization Event or an Event of
Default.
(m) Subsequent to the respective dates as of which information is given in the Preliminary Offering Memorandum and the Offering Memorandum, other than as
contemplated by the Preliminary Offering Memorandum and the Offering Memorandum, neither the Issuer nor any CAI Person shall have entered into any transactions that are material to the business, condition (financial or otherwise) or results of
operations or business prospects of Issuer or any CAI Person, respectively.
(n) Each Initial Purchaser shall have received a certificate of the Issuer, dated the Closing Date, signed on its behalf by its President or any Vice
President and its Chief Financial Officer or if such entity has none, its Treasurer, to the effect that:
(i) The conditions precedent set forth in Section 8(l) have been satisfied.
(ii) Subsequent to the respective dates as of which information is given in the Additional Disclosure Documents, the Preliminary
Offering Memorandum and the Offering Memorandum, other than as contemplated by the Offering Memorandum, there has not occurred (A) any material adverse change, or any development involving a prospective material adverse change, in the condition
(financial or otherwise) or in the earnings, business, operations or business prospects of the Issuer, whether or not arising in the ordinary course of business, or (B) any other event or occurrence that would have a material and adverse effect on
the ability of the Issuer to perform any of its obligations under any Series 2020-1 Related Document to which it is a party.
(iii) Subsequent to the respective dates as of which information is given in the Additional Disclosure Documents, the Preliminary
Offering Memorandum and the Offering Memorandum, other than as contemplated by the Offering Memorandum, the Issuer has not entered into any transactions that are material and adverse to the business, condition (financial or otherwise) or results of
operations or business prospects of the Issuer.
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(iv) As of the Closing Date, none of the Additional Disclosure Documents, the Preliminary Offering Memorandum and the Offering
Memorandum contains an untrue statement of a material fact or omits to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, except that this representation shall
not apply to statements or omissions made in reliance upon and in conformity with the Initial Purchaser Information.
(o) Each Initial Purchaser shall have received confirmation that the Notes have been accepted for clearance of secondary market trading by The Depository
Trust Company.
(p) The Offering Memorandum shall have been distributed to each Initial Purchaser not later than 5:00 p.m., New York time on September 3, 2020.
(q) All conditions to the issuance of the Notes set forth in the Indenture shall have been satisfied. The Issuer shall have delivered a certificate to
that effect to each Initial Purchaser, and all opinions delivered in connection with the satisfaction of such conditions shall be delivered to the Initial Purchasers.
(r) This Agreement has not terminated pursuant to Section 12 hereof.
(s) The Aggregate Class A Note Principal Balance does not exceed the Class A Asset Base. The Aggregate Series 2020-1 Note Principal Balance does not
exceed the Series 2020-1 Asset Base.
(t) A list (which may be in the form of a data file) of all Managed Containers as of the Closing Date, which includes the Container Identification Number
for each such Managed Container, shall have been delivered, in form and substance satisfactory to each Initial Purchaser.
(u) All of the conditions precedent to the authentication of the Series 2020-1 Notes set forth in the Series 2020-1 Supplement and the Indenture shall
have been satisfied or waived (including the execution and delivery of control agreements with respect to each of the Series 2020-1 Series Account, the Defaulted Lease Account, the Series 2020-1 Restricted Cash Account, the Redemption Account and
the Revenue Reserve Account, each such control account to be in form and substance satisfactory to the Initial Purchasers).
(v) The Issuer shall have paid to WFS, or made arrangements satisfactory to WFS for the payment of, the fees payable to the Initial Purchasers with respect
to the transaction evidenced by this Agreement. WFS will distribute to each Initial Purchaser its share of such fee (determined based on relative purchase commitment) in accordance with industry practice.
(w) The Issuer shall fund, or direct the Initial Purchaser to deposit on the Closing Date the entire proceeds of the Series 2020-1 Notes into the
Redemption Account.
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The Issuer shall furnish to each Initial Purchaser and the Rating Agency (x) such other agreements, instruments, documents, opinions, certificates, letters and schedules as such Initial Purchaser or
its counsel or the Rating Agency or its counsel reasonably may request and (y) originals and conformed copies of all opinions, certificates, letters, schedules, agreements, documents and instruments delivered pursuant to this Agreement in the
quantities that such Initial Purchaser or such Rating Agency, as the case may be, may reasonably request.
SECTION 9. Representations, Warranties and Covenants of each Initial Purchaser. Each Initial Purchaser severally and not jointly represents and
warrants to the Issuer that:
(a) Such Initial Purchaser is a Qualified Institutional Buyer.
(b) Such Initial Purchaser will not offer or sell, and has not offered or sold any Notes except (x) within the United States to Persons reasonably
believed by it to be (i) Qualified Institutional Buyers in reliance on the exemption from registration provided by Rule 144A or (ii) Institutional Accredited Investors and (y) to certain non-U.S. Persons outside the United States within the meaning
of, and in compliance with, Regulation S.
(c) Such Initial Purchaser has not engaged in any form of general solicitation or general advertising in connection with the offering or sale of the Notes
(as those terms are used in Regulation D under the Act).
(d) Such Initial Purchaser represents that either (i) it is not acquiring and will not hold the Series 2020-1 Note with the plan assets of a Plan or any
other plan that is subject to the provisions of other applicable federal and state law (“Similar Law”) or (ii) (a) the Series 2020-1 Notes are rated investment grade or better and have not been characterized
as other indebtedness for applicable local law purposes and (b) the acquisition, holding and disposition of the Series 2020-1 Note will not give rise to a non-exempt prohibited transaction under Section 406 of ERISA, Section 4975 of the Code or
Similar Law.
(e) Such Initial Purchaser will not offer or sell any Note except on the terms contemplated by the Offering Memorandum.
(f) None of such Initial Purchaser, its Affiliates or any Person acting on its behalf has engaged or will engage in any directed selling efforts within
the meaning of Regulation S with respect to the Notes, and such Initial Purchaser, its Affiliates and all Persons acting on its behalf have complied and will comply with the offering restrictions requirements of Regulation S in connection with the
offering of Notes outside of the United States.
(g) Each Initial Purchaser severally and not jointly represents and agrees as to itself that:
(i) it has only communicated or caused to be communicated and will only communicate or cause to be communicated any invitation or
inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000 of the U.K., as amended, or “FSMA”) received by it in connection with the issue or sale of the Notes in circumstances in
which section 21(1) of the FSMA does not apply to the Issuing Entity or the Depositor; and it has complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to the Notes in, from or otherwise
involving the U.K.
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(h) Each Initial Purchaser severally and not jointly as to itself that it has not offered, sold or otherwise made available and will not offer, sell or
otherwise make available any Series 2020-1 Notes which are the subject of the offering contemplated by this Preliminary Offering Memorandum to any retail investor in the EEA or the U.K. For the purposes of this provision, the expression "retail
investor" means a person who is one (or more) of the following:
(i) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU as amended, “MiFID II”; or
(ii) a customer within the meaning of Directive (EU) 2016/97 as amended, where that customer would not qualify as a professional
client as defined in point (10) of Article 4(1) of MiFID II; or
(iii) not a “qualified investor” as defined in Regulation (EU) 2017/1129, as amended.
SECTION 10. Indemnification and Contribution.
(a) The Issuer and CAL, jointly and severally, agree to indemnify and hold harmless each Initial Purchaser, its Affiliates, together with its successors,
directors and officers and each Person who controls such Initial Purchaser within the meaning of Section 15 of the Act or Section 20 of the Exchange Act (each, a “Purchaser Indemnified
Party”), against any and all losses, claims, damages or other liabilities, joint or several (collectively, “Losses”), to which such Purchaser Indemnified Party may become subject, insofar as such
Losses arise out of or are based upon (i) any breach of any of the representations, warranties and covenants of the Issuer, CAL or CAI contained herein; (ii) any untrue statement or alleged untrue statement of any material fact contained in the
Additional Disclosure Documents, any Form ABS-15G, the Preliminary Offering Memorandum, the Offering Memorandum or any amendment of or supplement to any of the foregoing, or (iii) any omission or alleged omission to state, in the Additional
Disclosure Documents, any Form ABS-15G, the Preliminary Offering Memorandum, the Offering Memorandum or any amendment of or supplement to any of the foregoing, a material fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading, and, in each case, will reimburse, as incurred, each Purchaser Indemnified Party for any legal or other expenses reasonably incurred by such Purchaser Indemnified Party in
connection with investigating or defending any claim, action, litigation, investigation or proceeding whatsoever (whether or not such Purchaser Indemnified Party is a party thereto), whether commenced or threatened; provided,
however, that neither the Issuer nor CAL shall be liable in any case under this Section 10(a) to the extent that any Loss arises out of or is based upon any untrue statement or alleged untrue
statement or omission or alleged omission made in the Additional Disclosure Documents, the Preliminary Offering Memorandum, any Form ABS-15G or the Offering Memorandum that, in the case of each of the foregoing, is made in reliance upon and in
conformity with the Initial Purchaser Information.
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(b) Each Initial Purchaser agrees, severally and not jointly, to indemnify and hold harmless each of the Issuer, CAL, their respective directors, officers,
employees, agents and representatives and each Person, if any, who controls the Issuer or CAL within the meaning of Section 15 of the Act or Section 20 of the Exchange Act (collectively, the “CAI Indemnified Parties”;
collectively with the Purchaser Indemnified Parties and in their respective capacities as such, the “Indemnified Parties”), against any Losses to which such CAI Indemnified Party may become subject, under the
Act, the Exchange Act, other Federal or state statutory law or regulation or otherwise, insofar as the Losses (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact
contained in the Additional Disclosure Documents, the Preliminary Offering Memorandum or the Offering Memorandum, or arise out of or are based upon the omission or the alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged
omission was made in the Additional Disclosure Documents, the Preliminary Offering Memorandum or the Offering Memorandum in reliance upon and in conformity with the Initial Purchaser Information provided by such Initial Purchaser, as further
described in Schedule II. Each Initial Purchaser will reimburse each CAI Indemnified Party for any legal or other expenses reasonably incurred by such CAI Indemnified Party in connection with investigating or defending any claim, action, litigation,
investigation or proceeding whatsoever (whether or not such CAI Indemnified Party is a party thereto), whether commenced or threatened, based upon any such untrue statement or alleged untrue statement or omission or alleged omission, as such expenses
are incurred.
(c) Promptly after receipt by an Indemnified Party of notice of the commencement of any action described in Section
10(a) or (b), the Indemnified Party shall, if a claim in respect thereof is to be made against the indemnifying party under Section 10(a) or (b), notify the indemnifying party of the commencement thereof, but the failure so to notify the indemnifying party shall not relieve it from any liability that it may have under such Section 10(a) or (b). In case any such action is brought against any Indemnified Party, and it notifies the indemnifying party of the commencement thereof, the indemnifying party shall be
entitled to participate therein and, to the extent that it may wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such Indemnified Party (who shall not, except
with the consent of the Indemnified Party, be counsel to the indemnifying party). In no event shall the indemnifying parties be liable for fees and expenses of more than one counsel (in addition to any local counsel) separate from their own counsel
for all Indemnified Parties in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances. No indemnifying party shall, without the written consent
of the Indemnified Party, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification may be sought hereunder (whether or not the
Indemnified Party is an actual or potential party to such action or claim) unless such settlement, compromise or judgment (i) includes an unconditional release of the Indemnified Party from all liability arising out of such action or claim and (ii)
does not include any statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any Indemnified Party.
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(d) If the indemnity provided for in Section 10(a) or (b) is unavailable
or insufficient to hold harmless an Indemnified Party in respect of any Losses referred to in Section 10(a) or (b), then each indemnifying party shall contribute to the
amount paid or payable by such Indemnified Party in respect of such Losses in such proportion as is appropriate to reflect (i) the relative benefits received by the indemnifying party or parties on the one hand and the Indemnified Party on the other
from the offering of the Notes or (ii) if the allocation provided by clause (i) is not permitted by Applicable Law, not only the relative benefits referred to in clause (i)
but also the relative fault of the indemnifying party or parties on the one hand and the Indemnified Party on the other in connection with the untrue statement or alleged untrue statement or omission or alleged omission that resulted in such Losses.
The relative benefits received by the CAI Indemnified Parties on the one hand and the Purchaser Indemnified Parties on the other shall be deemed to be in the same proportion as the total proceeds from the offering (before deducting expenses) received
by the Issuer bear to the total underwriting discounts and commissions received by the Initial Purchasers with respect to the offering. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by any CAI Indemnified Party on the one hand, or any Purchaser Indemnified Party on the other, the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by an Indemnified Party as a result of the Losses referred to above in this Section 10(d)
shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section
10(d), no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total underwriting discounts and commissions received by such Initial Purchaser exceeds the amount of any damages which such Initial
Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation. The Initial Purchasers’ obligations in this Section 10(d) to contribute are several in proportion to their respective
underwriting obligations and not joint.
SECTION 11. Survival of Representations and Warranties. So long as any of the Notes shall be Outstanding and until payment and performance in full of
the Aggregate Outstanding Obligations, the representations and warranties contained herein shall have a continuing effect of having been true when made.
SECTION 12. Termination. This Agreement may be terminated in the sole discretion of each Initial Purchaser by notice to the Issuer, CAL or CAI, as the
case may be, given on or prior to the Closing Date in the event that (A) the Issuer, CAL or CAI shall have failed, refused or been unable to perform all obligations and satisfy all conditions on its part to be performed or satisfied hereunder at or
prior thereto or (B) there shall have occurred any of the events or conditions set forth in Section 8(h) hereof. Termination of this Agreement pursuant to this Section 12 shall be without liability of any
party to any other party; provided that the respective agreements, covenants, indemnities and other statements set forth in this Section 12 and in Sections 7, 10, 14, 15, 17,
18, 19, 20, 21, 22, 23, 25, 26 and 27 shall remain in full force and effect regardless of any termination of this Agreement.
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SECTION 13. Initial Purchaser Information. The Issuer acknowledges and agrees that the Initial Purchaser Information constitutes the only information
furnished by the Initial Purchasers to the Issuer for purposes of inclusion in the Additional Disclosure Documents, the Preliminary Offering Memorandum or the Offering Memorandum. Each Initial Purchaser shall only be liable for any such information
related to, or provided by, such Initial Purchaser.
SECTION 14. Notices. Unless otherwise provided herein, all notices required under the terms and provisions hereof shall be in writing and either
delivered by hand, by mail or by email, and any notice shall be effective when received at the address or facsimile number (as applicable) specified below:
If to the Issuer:
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CAL Funding IV Limited
Clarendon House, 2 Church Street
Hamilton HM 11, Bermuda
Attention: The Secretary
Telephone: (441) 298-5950
With copies to
(i) CAI International, Inc.
1 Market Plaza
Steuart Tower, Suite 2400
San Francisco, CA 94105 USA
email: [email protected] with a copy to [email protected]
Telephone: (415) 788-0100
and
(ii) Container Applications Limited
Suite 102, Corporate Centre
Bush Hill, Bay Street, St. Michael
Barbados, West Indies
Telephone: (246) 430-5310
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If to CAL:
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Container Applications Limited
Suite 102, Corporate Centre
Bush Hill, Bay Street, St. Michael
Barbados, West Indies
Telephone: (246) 430-5310
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If to WFS:
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Wells Fargo Securities, LLC
Duke Energy Center
550 South Tryon Street
Charlotte, NC 28202
D1086-051
Attention: John Fulvimar
Telephone: (704) 410-1477
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If to Deutsche Bank Securities Inc.
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Deutsche Bank Securities Inc.
60 Wall Street, 5th Floor
New York, NY 10005
Attention: Kevin Fagan
Telephone: (212) 250-2433
and
Attention: Max Schleikorn
Telephone: (212) 250-4080
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If to BofA Securities, Inc.
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BofA Securities, Inc.
One Bryant Park, Floor 11
New York, NY 10036
Attention: Bradley Sohl
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If to RBC Capital Markets, LLC
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RBC Capital Markets, LLC
Three World Financial Center
200 Vesey Street, 8th Floor
New York, NY 10281
Attention: Nicholas Rogers
Telephone: (212) 905-2904
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If to MUFG Securities Americas Inc.:
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MUFG Securities Americas Inc.
1221 Avenue of the Americas, 6th Floor
New York, NY 10020
Attention: Keith Allman
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If to PNC Capital Markets LLC
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PNC Capital Markets LLC
340 Madison Avenue, Floor 11
New York, NY 10173
Attention: Valerie Shadeck
Telephone: (412) 762-6825
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If to Fifth Third Securities, Inc.:
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Fifth Third Securities, Inc.
38 Fountain Square Plaza
Cincinnati, OH 45263
Attention: Legal Department
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If to ING:
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ING Bank N.V.
Foppingadreef 7
1102 BD Amsterdam
The Netherlands
Attention: Emely de Andrade
Telephone: +31 610685126
Email: [email protected]
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or at such other address or facsimile number as any party may designate from time to time by notice duly given to the other parties in accordance with the terms of this Section 14.
SECTION 15. Successors. This Agreement shall inure to the benefit of and be binding upon each Initial Purchaser and the Issuer and their respective successors and
legal representatives. Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any Person, other than the parties hereto, the Indemnified Parties and their respective successors, any legal or equitable right,
remedy or claim under or in respect of this Agreement or any provision herein contained. This Agreement and all conditions and provisions hereof are intended to be for the sole and exclusive benefit of such Persons, and for the benefit of no
other Person. No purchaser of a Note or a beneficial interest in a Note from any Initial Purchaser shall be deemed a successor because of such purchase.
SECTION 16. Counterparts. This Agreement may be executed in any number of counterparts and by the different parties hereto in separate counterparts
(which may include facsimile), each of which when so executed shall be deemed to be an original and all of which together shall constitute one and the same agreement.
SECTION 17. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTIONS 5-1401 AND 5-1402
OF THE NEW YORK GENERAL OBLIGATIONS LAW, BUT WITHOUT REGARD TO ANY OTHER CONFLICT OF LAWS PRINCIPLES, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
SECTION 18. Submission to Jurisdiction. EACH PARTY HERETO HEREBY (A) IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE
JURISDICTION OF ANY NEW YORK STATE OR FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK, NEW YORK OVER ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, (B) IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT
OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH STATE OR FEDERAL COURT, AND (C) IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR
PROCEEDING. EACH OF THE ISSUER, CAL AND CAI SHALL HAVE DELIVERED ON OR PRIOR TO THE DATE HEREOF TO EACH INITIAL PURCHASER OR ITS COUNSEL EVIDENCE OF ACCEPTANCE BY CSC CORPORATION SERVICE COMPANY OF ITS APPOINTMENT BY THE ISSUER, CAL AND CAI, AS
AGENT FOR SERVICE OF PROCESS IN NEW YORK. THE SERVICE MAY BE MADE TO THE ISSUER, CAL, OR CAI, AS THE CASE MAY BE, IN CARE OF THE PROCESS AGENT AT THE PROCESS AGENT’S ADDRESS. AS AN ALTERNATIVE METHOD OF SERVICE OTHER THAN SERVICE TO ITS RESPECTIVE
APPOINTED SERVICE OF PROCESS AGENT, EACH PARTY ALSO IRREVOCABLY CONSENTS TO THE SERVICE OF ANY AND ALL PROCESS IN ANY ACTION OR PROCEEDING BY THE MAILING OF COPIES OF THE PROCESS TO SUCH PARTY AT ITS ADDRESS SPECIFIED HEREIN. NOTHING IN THIS
SECTION SHALL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AFFECT THE RIGHT OF ANY PARTY HERETO TO BRING ANY ACTION OR PROCEEDING AGAINST ANY OR ALL OF THE OTHER PARTIES HERETO OR ANY OF THEIR
RESPECTIVE PROPERTIES IN THE COURTS OF ANY OTHER JURISDICTION.
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SECTION 19. Waiver of Jury Trial. EACH PARTY HERETO WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO
ENFORCE OR DEFEND ANY RIGHTS UNDER OR RELATING TO THIS AGREEMENT OR ANY OTHER RELATED DOCUMENTS OR ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR THAT MAY IN THE FUTURE BE DELIVERED IN CONNECTION THEREWITH OR ARISING FROM ANY COURSE
OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), ACTIONS OF ANY OF THE PARTIES HERETO OR ANY OTHER RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER RELATED DOCUMENTS, AND AGREES THAT ANY SUCH ACTION OR
PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.
SECTION 20. Negotiations. This Agreement and the other Series 2020-1 Related Documents are the result of negotiations among the parties hereto, and have
been reviewed by the respective counsel to the parties hereto, and are the products of all parties hereto. Accordingly, this Agreement and the other Series 2020-1 Related Documents shall not be construed against any Initial Purchaser merely because
of such Initial Purchaser’s involvement in the preparation of this Agreement and the other Series 2020-1 Related Documents.
SECTION 21. Amendments, etc. This Agreement may be amended and/or restated at any time but
only upon the written consent of each of the parties hereto. The parties hereto may waive the provisions of this Agreement in a writing signed by the parties hereto.
SECTION 22. Severability of Provisions. If any one or more of the agreements, provisions or terms of this Agreement shall for any reason whatsoever be
held invalid, then the unenforceable agreements, provisions or terms shall be deemed severable from the remaining agreements, provisions or terms of this Agreement and shall in no way affect the validity or enforceability of the other agreements,
provisions or terms of this Agreement.
SECTION 23. No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of any party hereto, any right, remedy,
power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy,
power or privilege. Except as otherwise provided in this Agreement, the rights, remedies, powers and privileges herein provided are cumulative and are not exhaustive of any rights, remedies, powers and privileges provided by law.
SECTION 24. Integration. This Agreement contains a final and complete integration of all prior expressions by the parties hereto with respect to the
subject matter hereof and shall constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof, superseding all prior oral or written understandings.
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SECTION 25. Nonpetition Covenant. Notwithstanding any prior termination of this Agreement, each Initial Purchaser agrees that it shall not, with respect
to the Issuer, institute or join any other Person in instituting any Insolvency Proceeding against or with respect to the Issuer or so long as any Notes issued by the Issuer shall be Outstanding and there shall not have elapsed one year plus one day
since the last day on which any such Notes shall have been Outstanding and all other obligations of the Issuer under the Series 2020-1 Related Documents have been paid in full. The foregoing shall not limit the right of any such Person to file any
claim in or otherwise take any action with respect to any such proceeding that was instituted against the Issuer by any Person other than any Initial Purchaser. In addition, each Initial Purchaser agrees that all amounts owed to it by the Issuer
shall be payable solely from amounts that become available for such payment pursuant to Section 302 of the Indenture and Section 303 of the Series 2020-1 Supplement, and no such amounts shall constitute a “claim” against the Issuer (as defined in
Section 105 of the Bankruptcy Code) to the extent that they are in excess of the amounts available for their payment.
SECTION 26. Recourse Against Certain Parties. No recourse under or with respect to any obligation, covenant or agreement (including, without
limitation, the payment of any fees or any other obligations) of any party as contained in this Agreement or any other agreement, instrument or document entered into by it pursuant hereto or in connection herewith shall be had against any
administrator of such party or any incorporator, affiliate, stockholder, officer, employee, manager or director of such party or of any such administrator, as such, by the enforcement of any assessment or by any legal or equitable proceeding, by
virtue of any statute or otherwise; it being expressly agreed and understood that the agreements of such party contained in this Agreement and all of the other agreements, instruments and documents entered into by it pursuant hereto or in connection
herewith are, in each case, solely the corporate obligations of such party, and that no personal liability whatsoever shall attach to or be incurred by any administrator of such party or any incorporator, stockholder, affiliate, officer, employee,
manager or director of such party or of any such administrator, as such, or any other of them, under or by reason of any of the obligations, covenants or agreements of such party contained in this Agreement or in any other such instruments, documents
or agreements, or which are implied therefrom, and that any and all personal liability of every such administrator of such party and each incorporator, stockholder, affiliate, officer, employee, manager or director of such party or of any such
administrator, as such, or any of them, for breaches by such party of any such obligations, covenants or agreements, which liability may arise either at common law or at equity, by statute or constitution, or otherwise, is hereby expressly waived as
a condition of and in consideration for the execution of this Agreement. The provisions of this Section 26 shall survive the termination of this Agreement.
SECTION 27. Appointment of Bookrunners, Structuring Agents and Co-Managers; No Other Duties. The Issuer hereby appoints (i) each of BofA and WFS as a
bookrunner, (ii) each of BofA and WFS as a structuring agent and (iii) each of MUFG, BBVA and FTS as a co-manager. Anything herein to the contrary notwithstanding, none of the bookrunners nor the structuring agents shall have any powers, duties or
responsibilities under this Agreement or any other Series 2020-1 Related Document, except in its capacity as an Initial Purchaser hereunder.
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SECTION 28. Confidentiality. Each of the Initial Purchasers and the Issuer shall maintain and shall cause each of its employees and officers to
maintain the confidentiality of this Agreement and the other Series 2020-1 Related Documents and the other confidential proprietary information with respect to the other parties hereto and the other parties to the Series 2020-1 Related Documents and
their respective businesses obtained by it or them in connection with the structuring, negotiating and execution of the transactions contemplated herein (the “Confidential Information”), except that each such party and its officers, members
and employees may disclose (x) the existence of this Agreement and the other Series 2020-1 Related Documents, but not the financial terms thereof and (y) any Confidential Information (i) to its external accountants, financial advisors, attorneys, and
the agents of such Persons, as well as any nationally recognized statistical rating organization (an “NRSRO”) to whom any part of the Confidential Information is required to be disclosed pursuant to the terms of the Exchange Act or any rules
(including Rule 17g-5) and regulations promulgated thereunder (collectively, “Excepted Persons”), (ii) as required by an applicable law (including, without limitation, public reporting requirements applicable to CAI) or order of any judicial
or administrative proceeding, and (iii) in any suit, action, proceeding or investigation (whether in law or in equity or pursuant to arbitration) involving this Agreement or the other Series 2020-1 Related Documents for the purpose of defending
itself, reducing its liability, or protecting or exercising any of its claims, rights, remedies or interests under or in connection with this Agreement (notice of which shall be given to the Issuer to the extent permitted under applicable law, rule
or regulation) (in connection therewith, the Initial Purchasers agree, at the expense of the Issuer, to cooperate with the Issuer in seeking a protective order for such Confidential Information). Notwithstanding the foregoing, the following will not
constitute Confidential Information subject to this Section 28: (i) information that was already known to or in possession of any of the Initial Purchasers or any of their respective Excepted Persons prior to its disclosure to such Initial Purchaser
by the Issuer pursuant to this Agreement or in contemplation of entering into this Agreement or any of the Related Documents; (ii) information that is obtained by any of the Initial Purchasers or any of their respective Excepted Persons from a third
party who is not known by such Initial Purchaser to be prohibited from disclosing the information to such Initial Purchaser by a contractual or legal obligation to the Company; (iii) information that is or becomes publicly available (other than as a
result of disclosure by any of the Initial Purchasers or any of their respective Excepted Persons in violation of this Agreement); or (iv) information that is independently developed, discovered or arrived at by any of the Initial Purchasers or any
of their respective Excepted Persons without reference to the confidential proprietary information which is the subject of this Section 28. Notwithstanding anything to the contrary contained herein, any of the Initial Purchasers and their respective
affiliates may disclose confidential proprietary information, without notice to the Issuer, to any governmental agency, regulatory authority or self-regulatory authority (including without limitation, bank and securities examiners) having or claiming
to have authority to regulate or oversee any aspect of the business of such Initial Purchaser or that of its affiliates in connection with the exercise of such authority or claimed authority. The confidentiality obligations set forth in this Section
28 are in addition to any other confidentiality agreements or other similar documents that are in place among any of the parties hereto and their Affiliates and are not intended to amend or supersede any such agreement.
Notwithstanding anything contained in this Agreement or in any other document, agreement or understanding relating to the transactions contemplated by this Agreement and the Series 2020-1 Related Documents, each party
(and each employee, representative, or other agent of such party) is authorized to disclose to any and all persons, beginning immediately upon commencement of discussions regarding the transactions contemplated by this Agreement, and without
limitation of any kind, the U.S. federal, state or local tax treatment and tax structure of such transactions, and all materials of any kind (including opinions or other tax analyses) that are provided to such party (or any employee, representative,
or other agent of such party) to the extent related to such tax treatment and tax structure. However, any information relating to the tax treatment or tax structure shall remain subject to the confidentiality provisions hereof (and the foregoing
sentence shall not apply) to the extent reasonably necessary to enable the parties hereto, their respective Affiliates, and their respective Affiliates’ directors and employees to comply with applicable securities laws. For purposes of this
authorization, the “tax treatment” of a transaction means the purported or claimed tax treatment of the transaction, and the “tax structure” of a transaction means any fact that may be relevant to understanding the purported or claimed tax treatment
of the transaction contemplated by the Series 2020-1 Related Documents. None of the parties to the transactions contemplated by this Agreement provides U.S. tax advice, and each party should consult its own advisors regarding its participation in
the transactions contemplated by this Agreement.
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SECTION 29. Recognition of the U.S. Special Resolution Regimes.
(a) In the event an Initial Purchaser is a Covered Entity that becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer from
such Initial Purchaser of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement, and any such
interest and obligation, were governed by the laws of the United States or a state of the United States.
(b) In the event that an Initial Purchaser is a Covered Entity or a BHC Act Affiliate of such Initial Purchaser becomes subject to a proceeding under a
U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against such Initial Purchaser are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution
Regime if this Agreement were governed by the laws of the United States or a state of the United States.
(c) For purposes of this Section 29, a “BHC Act Affiliate” has the meaning assigned to the term “affiliate” in, and shall be interpreted in accordance
with, 12 U.S.C. § 1841(k). “Covered Entity” means any of the following: (i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a “covered bank” as that term is defined in, and interpreted in
accordance with, 12 C.F.R. § 47.3(b); or (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b). “Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance
with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable. “U.S. Special Resolution Regime” means each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and
Consumer Protection Act and the regulations promulgated thereunder.
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SECTION 30. Electronic Signatures. The parties agree that this Agreement may be executed and delivered by electronic signatures and that the signatures
appearing on this Agreement are the same as handwritten signatures for the purposes of validity, enforceability and admissibility
[Signature pages follow]
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If the foregoing correctly sets forth our understanding, please indicate your acceptance thereof in the space provided below for that purpose, whereupon this Agreement shall constitute a binding
agreement among the Issuer, CAL, CAI and each of the Initial Purchasers.
Very truly yours,
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CAL FUNDING IV LIMITED
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By:
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/s/ Timothy B. Page |
Name: Timothy B. Page
|
|
Title: Chief Financial Officer
|
ACCEPTED AND AGREED, SOLELY
FOR PURPOSES OF SECTIONS 4, 5(b), 6, 8, 10, 12, 17, 18, 19, 20 and 21:
CONTAINER APPLICATIONS LIMITED
|
|
By: | /s/ Timothy B. Page | |
Name: Timothy B. Page
|
||
Title: Chief Financial Officer
|
ACCEPTED AND AGREED, SOLELY
FOR PURPOSES OF SECTIONS 4A, 8, 12, 17, 18, 19, 20 and 21:
CAI INTERNATIONAL, INC.
|
|
By: | /s/ Timothy B. Page | |
Name: Timothy B. Page
|
||
Title: Interim President and Chief Executive Officer
|
[Note Purchase Agreement (CAL I Series 2020-1)]
Accepted and agreed to as of the date first above written:
|
DEUTSCHE BANK SECURITIES INC.
|
By:
|
/s/ Kevin Fagan | |
|
Kevin Fagan, Vice President
|
By:
|
/s/ Robert Sheldon | |
|
Robert Sheldon, Managing Director
|
[Note Purchase Agreement (CAL I Series 2020-1)]
Accepted and agreed to as of the date first above written:
|
BofA SECURITIES, INC.
|
By:
|
/s/ Bradley J Sohl | |
|
Bradley J Sohl, Director
|
[Note Purchase Agreement (CAL I Series 2020-1)]
Accepted and agreed to as of the date first above written:
|
||
RBC CAPITAL MARKETS, LLC
|
||
By:
|
/s/ Nicholas Rogers |
[Note Purchase Agreement (CAL I Series 2020-1)]
Accepted and agreed to as of the date first above written:
|
MUFG SECURITIES AMERICAS, INC.
|
By:
|
/s/ Keith Allman | |
|
Keith Allman, Managing Director
|
[Note Purchase Agreement (CAL I Series 2020-1)]
Accepted and agreed to as of the date first above written:
|
PNC CAPITAL MARKETS LLC
|
By:
|
/s/ Valerie Shadeck | |
|
Valerie Shadeck
|
[Note Purchase Agreement (CAL I Series 2020-1)]
Accepted and agreed to as of the date first above written:
|
||
FIFTH THIRD SECURITIES, INC.
|
||
By:
|
/s/ Ricardo C. Valeriano |
[Note Purchase Agreement (CAL I Series 2020-1)]
Accepted and agreed to as of the date first above written:
|
||
ING BANK N.V.
|
||
By:
|
/s/ M.R. Brinkhuis |
[Note Purchase Agreement (CAL I Series 2020-1)]
SCHEDULE I
to Note Purchase Agreement (Series 2020-1)
Initial Purchasers
|
Principal Amount of Class A
Notes
|
Principal Amount of Class B
Notes
|
||||||
Wells Fargo Securities LLC
|
$
|
286,360,000
|
$
|
10,720,000
|
||||
Deutsche Bank Securities Inc.
|
$
|
93,067,000
|
$
|
3,484,000
|
||||
BofA Securities, Inc.
|
$
|
93,067,000
|
$
|
3,484,000
|
||||
RBC Capital Markets, LLC
|
$
|
93,067,000
|
$
|
3,484,000
|
||||
MUFG Securities Americas Inc.
|
$
|
93,067,000
|
$
|
3,484,000
|
||||
PNC Capital Markets LLC
|
$
|
21,477,000
|
$
|
804,000
|
||||
Fifth Third Securities, Inc.
|
$
|
21,477,000
|
$
|
804,000
|
||||
ING Bank N.V.
|
$
|
14,318,000
|
$
|
536,000
|
||||
$
|
715,900,000
|
$
|
26,800,000
|
SCHEDULE II
to Note Purchase Agreement (Series 2020-1)
Initial Purchaser Information: For each Initial Purchaser the information provided by, or relating to, such Initial Purchaser in (i) the first paragraph, (ii) the fourth paragraph, (iii) the fourth, fifth, sixth and
seventh sentences of the sixth paragraph, (iv) the seventh paragraph, (v) the eighth paragraph and (vi) the ninth paragraph, in each case, under the heading “PLAN OF DISTRIBUTION” in the Offering Memorandum.