Document:

Insurance and Indemnity Agreement

 EXHIBIT 10.118 
  
 INSURANCE AND INDEMNITY AGREEMENT 
 Dated as of September 22, 2004 
  
 AMBAC ASSURANCE CORPORATION, 
 as Insurer, 
  

UPFC AUTO RECEIVABLES TRUST 2004-A, 
 as
Issuer, 
  
 UNITED AUTO CREDIT CORPORATION, 
 as Servicer, 
  
 UPFC AUTO RECEIVABLES CORP., 
 as Transferor, 
  
 ACE SECURITIES CORP., 
 as Seller, 
  
 and 
  
 DEUTSCHE BANK TRUST COMPANY AMERICAS, 

as Indenture Trustee, Trust Collateral Agent and Backup Servicer 
  
 UPFC Auto Receivables Trust 2004-A 
 Class A Asset Backed Notes 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

		
	ARTICLE I	  	 
		
	DEFINITIONS	  	 
			
	 Section 1.1
	  	Defined Terms	  	3
	 Section 1.2
	  	Other Definitional Provisions	  	8
		
	ARTICLE II	  	 
		
	REPRESENTATIONS, WARRANTIES AND COVENANTS	  	 
			
	 Section 2.1
	  	Representations and Warranties of UACC, the Transferor and the Issuer	  	8
	 Section 2.2
	  	Representations and Warranties of the Seller	  	9
	 Section 2.3
	  	Affirmative Covenants of UACC, the Transferor and the Issuer	  	9
	 Section 2.4
	  	Negative Covenants of UACC, the Transferor and the Issuer	  	10
		
	ARTICLE III	  	 
		
	THE AMBAC POLICY; REIMBURSEMENT	  	 
			
	 Section 3.1
	  	Issuance of the Ambac Policy	  	17
	 Section 3.2
	  	Payment of Fees and Premium	  	18
	 Section 3.3
	  	Reimbursement Obligation	  	19
	 Section 3.4
	  	Indemnification	  	19
	 Section 3.5
	  	Payment Procedure	  	23
	 Section 3.6
	  	Subrogation	  	23
		
	ARTICLE IV	  	 
		
	FURTHER AGREEMENTS	  	 
			
	 Section 4.1
	  	Effective Date; Term of the Insurance Agreement	  	24
	 Section 4.2
	  	Further Assurances and Corrective Instruments	  	24
	 Section 4.3
	  	Obligations Absolute	  	25
	 Section 4.4
	  	Assignments; Reinsurance; Third-Party Rights	  	26
	 Section 4.5
	  	Liability of the Insurer	  	27
	 Section 4.6
	  	Rights and Remedies	  	27

  

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	ARTICLE V	  	 
		
	DEFAULTS AND REMEDIES	  	 
			
	 Section 5.1
	  	Defaults	  	28
	 Section 5.2
	  	Remedies; No Remedy Exclusive	  	30
	 Section 5.3
	  	Waivers	  	30
		
	ARTICLE VI	  	 
		
	MISCELLANEOUS	  	 
			
	 Section 6.1
	  	Amendments, Etc	  	31
	 Section 6.2
	  	Notices	  	31
	 Section 6.3
	  	Severability	  	33
	 Section 6.4
	  	Governing Law	  	33
	 Section 6.5
	  	Consent to Jurisdiction	  	33
	 Section 6.6
	  	Consent of the Insurer	  	34
	 Section 6.7
	  	Counterparts	  	34
	 Section 6.8
	  	Headings	  	34
	 Section 6.9
	  	Trial by Jury Waived	  	34
	 Section 6.10
	  	Limited Liability	  	34
	 Section 6.11
	  	Entire Agreement; Facsimile Signatures	  	35
	 Section 6.12
	  	Indenture Trustee	  	35
	 Section 6.13
	  	Third Party Beneficiary	  	35
	 Section 6.14
	  	No Proceedings	  	35
	 Section 6.15
	  	Limitation of Owner Trustee Liability	  	35
			
	 EXHIBITS
	  	 	  	 
			
	 EXHIBIT A
	  	Form of Ambac Policy	  	A 1

  

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 INSURANCE AND INDEMNITY AGREEMENT (as it may be amended, modified or supplemented from time to time, this
“Insurance Agreement”), dated as of September 22, 2004, by and among AMBAC ASSURANCE CORPORATION, as Insurer (the “Insurer”), UPFC AUTO RECEIVABLES TRUST 2004-A, as Issuer (the “Issuer”), UNITED
AUTO CREDIT CORPORATION (“UACC”), as Servicer (the “Servicer”), UPFC AUTO RECEIVABLES CORP., as Transferor (the “Transferor”), ACE SECURITIES CORP., as Seller (the “Seller”) and
DEUTSCHE BANK TRUST COMPANY AMERICAS, as Indenture Trustee (the “Indenture Trustee”), Trust Collateral Agent and Backup Servicer. 
  
 PRELIMINARY STATEMENTS 
  
 A. The Indenture, dated as of August 31, 2004 (the “Indenture”), by and between the Issuer and Deutsche Bank Trust Company Americas, as
Indenture Trustee, provides for, among other things, the issuance of the UPFC Auto Receivables Trust 2004-A Class A Asset Backed Notes. 
  
 B. The parties hereto desire that the Insurer issue the Ambac Policy to the Indenture Trustee for the benefit of the Holders and to, among other things,
specify the conditions precedent thereto, the premium in respect thereof and the indemnity, reimbursement, reporting and other obligations of the parties hereto other than the Insurer in consideration thereof. 
  
 NOW, THEREFORE, in consideration of the premises and the mutual agreements
herein contained, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 Section 1.1 Defined Terms. Capitalized terms used in this Insurance
Agreement shall have the meanings set forth below. Unless the context clearly requires otherwise, all capitalized terms used but not defined herein shall have the respective meanings assigned to them in the Ambac Policy or, if not defined therein,
in the Indenture or, if not defined therein, in the Sale and Servicing Agreement, or, if not defined therein, in the Purchase Agreement or the Spread Account Agreement, each as described below. 
  
 “Affiliate” means, with respect to any specified Person, any
other Person controlling or controlled by or under common control with such specified Person. For the purposes of this definition, “control” when used with respect to any 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. 
  
 “Ambac” means Ambac Assurance Corporation, a Wisconsin
domiciled stock insurance corporation. 
  
 “Ambac
Policy” means the Note Guaranty Insurance Policy No. AB0796BE, dated September 22, 2004, including any endorsements thereto, issued by the Insurer to the 

  

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Indenture Trustee with respect to the Class A Notes, for the benefit of the Holders, in the form attached as Exhibit A to this Insurance Agreement.

  
 “Certificate” means the trust certificate
evidencing the beneficial interest of the Certificateholder in the Trust. 
  
 “Change in Control” means, with respect to UPFC, (1) (a) the sale or other disposition, or the approval by the stockholders of UPFC of a sale or other disposition, of all or substantially all of the
assets of UPFC in the aggregate, whether pursuant to a single transaction or pursuant to a series of transactions to a person (the “Asset Buyer”) other than an Approved Purchaser (determined by the Insurer); (b) any
“person” (as defined in the Securities Exchange Act) other than an Approved Purchaser becomes the “beneficial owner” (as defined in Rule 13d 3 under the Securities Exchange Act), directly or indirectly, of securities of UPFC
representing fifty one (51%) or more of the combined voting power of UPFC’s then outstanding securities (such new beneficial owner, the “New Owner”); (c) the stockholders of UPFC approve a merger or consolidation of UPFC with
any other corporation, other than a merger or consolidation with an Approved Purchaser or a merger or consolidation which would result in the voting securities of UPFC outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the combined voting power of the voting securities of UPFC or such surviving entity outstanding immediately after such
merger or consolidation (the surviving entity being the “Surviving Entity”); or (d) the stockholders of UPFC approve a plan of complete liquidation of UPFC (the person receiving the liquidated assets being the “Resulting
Entity”) other than into an Approved Purchaser or a person or persons who beneficially own, directly or indirectly, at least fifty percent (50%) or more of the combined voting power of the outstanding voting securities of UPFC immediately
prior to the time of the liquidation; unless (2) the Asset Buyer, UPFC, the Surviving Entity or the Resulting Entity (each a “Successor”), in clause (1)(a), (b), (c) or (d) respectively and as the case may be, after giving effect to
the relevant transaction, (a) is an Approved Purchaser. 
  
 “Charter Documents” means, with respect to any Transaction Party, such entity’s organizational documents, including its trust agreement, certificate of trust, memorandum of association, articles of organization,
certificate or articles of incorporation, by laws and/or operating agreement. 
  
 “Class A Notes” means the Class A-1 Notes, the Class A-2 Notes and the Class A-3 Notes. 
  
 “Class A-1 Notes” means the Class A-1 1.93903% Asset Backed Notes, issued pursuant to the Indenture and substantially in the form
attached as an Exhibit to the Indenture. 
  
 “Class A-2
Notes” means the Class A-2 2.56% Asset Backed Notes, issued pursuant to the Indenture and substantially in the form attached as an Exhibit to the Indenture. 
  
 “Class A-3 Notes” means the Class A-3 3.27% Asset Backed Notes, issued pursuant to the Indenture and
substantially in the form attached as an Exhibit to the Indenture. 
  
 “Closing Date” means September 22, 2004. 
  

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 “Cut-off Date” means February 29, 2004. 
  
 “Event of Default” has the meaning specified in Section 5.1
hereof. 
  
 “Fee Letter” means that certain
letter agreement dated as of the date hereof between the Issuer and the Insurer and acknowledged by the Indenture Trustee setting forth certain fees and other matters referred to herein, as the same may be amended or supplemented from time to time
in accordance therewith and with this Insurance Agreement. 
  
 “Holder” has the meaning given thereto in the Ambac Policy. 
  
 “Indemnified Party” has the meaning specified in Section 3.4 hereof. 
  
 “Indemnifying Party” has the meaning specified in Section 3.4 hereof. 
  
 “Indenture” means the Indenture dated as of August 31, 2004 between the Issuer and the Indenture Trustee,
as the same may be amended and supplemented from time to time. 
  
 “Information” has the meaning specified in Section 2.1(c) hereof. 
  
 “Insolvency Proceeding” means any proceeding by or against any person under any applicable reorganization, bankruptcy, liquidation, rehabilitation, insolvency or other similar law now or hereafter in
effect or any proceeding in which a receiver, liquidator, conservator, trustee or similar official shall have been, or may be, appointed or requested for a person or any of its assets. 
  
 “Insurance Agreement” has the meaning given such term in the initial paragraph hereof. 
  
 “Insurer” means Ambac and any successor thereto, as issuer
of the Ambac Policy. 
  
 “Insurer Information”
means the information furnished by the Insurer in writing expressly for use in the Offering Document and is limited to the information included under the headings “The Insurer” and “The Policy” in the Prospectus Supplement.

  
 “Investment Company Act” means the Investment
Company Act of 1940, including, unless the context otherwise requires, the rules and regulations thereunder, as amended from time to time. 
  
 “Late Payment Rate” means the lesser of (a) the greater of (i) the per annum rate of interest publicly announced from time to time by
Citibank, N.A. as its prime or base lending rate (any change in such rate of interest to be effective on the date such change is announced by Citibank, N.A.), plus 2% per annum and (ii) the then applicable highest rate of interest on the Class A
Notes and (b) the maximum rate permissible under applicable usury or similar laws limiting interest rates. The Late Payment Rate shall be computed on the basis of the actual number of days elapsed over a year of 360 days. 
  

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 “Material Adverse Effect” means, with respect to any event or circumstance, a material
adverse effect on (a) the business, financial condition, operations or assets of the Issuer (considered separately) or the Issuer, the Servicer and the Transferor (taken as a whole), (b) the ability of any United Party to perform its obligations
under any Transaction Document to which it is a party, (c) the validity, enforceability of, or collectibility of, amounts payable by any United Party under any Transaction Document to which it is a party, (d) the status, existence, perfection or
priority of the interest of the Issuer or of the Indenture Trustee in the Trust Estate, (e) the validity, enforceability or collectibility of all or any portion of the Trust Estate with an aggregate value of at least $500,000 or (f) the ability of
the Insurer to monitor the performance of the Receivables and compliance of the United Parties with the Transaction Documents unless such impediment results from an action or omission on the part of the Insurer. 
  
 “Moody’s” means Moody’s Investors Service, Inc.
and any successor thereto. 
  
 “Offering
Document” means, taken together, the Prospectus Supplement, dated September 15, 2004 (the “Prospectus Supplement”), and the Prospectus, dated September 3, 2004, of the Issuer, in respect of the offering and sales of the
Class A Notes, any amendment or supplement thereto, and any other offering document in respect of the Class A Notes that makes reference to the Ambac Policy. 
  
 “Person” means an individual, joint stock company, trust, unincorporated association, joint venture, corporation, limited liability
company, business or owner trust, partnership or other organization or entity (whether governmental or private). 
  
 “Premium” means the premium payable in accordance with the Fee Letter. 
  
 “Purchase Agreement” means the Purchase Agreement between the Transferor, as Transferor and the Seller, as
Purchaser, dated as of August 31, 2004, as such Purchase Agreement may be amended from time to time. 
  
 “Rating Agencies” means Moody’s and S&P. 
  
 “Responsible Officer” means any Vice President, Assistant Vice President, Assistant Treasurer, Assistant
Secretary or any other officer of the relevant Transaction Party responsible for the performance of such Transaction Party’s obligations under the Transaction Documents and also, with respect to a particular matter, any other officer to whom
such matter is referred because of such officer’s knowledge of and familiarity with the particular subject. 
  
 “Sale Agreement” means the Sale Agreement, dated as of August 31, 2004, between UACC, as the Seller and the Transferor, as the Purchaser.

  
 “Sale and Servicing Agreement” means the Sale
and Servicing Agreement, dated as of August 31, 2004, among the Issuer, the Transferor, the Servicer, the Seller, and Deutsche Bank Trust Company Americas, as Trust Collateral Agent, Custodian and Backup Servicer, as the same may be amended or
supplemented from time to time. 
  

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 “Securities Act” means the Securities Act of 1933, including, unless the context
otherwise requires, the rules and regulations promulgated thereunder, as amended from time to time. 
  
 “Securities Exchange Act” means the Securities Exchange Act of 1934, including, unless the context otherwise requires, the rules and
regulations promulgated thereunder, as amended from time to time. 
  
 “Seller” has the meaning specified in the recitals hereof. 
  
 “Seller Information” means the information set forth in the Offering Document describing the Seller, which information shall consist of the sections entitled “Summary—The Seller” in the
Prospectus Supplement. 
  
 “Servicer” has the
meaning specified in the recitals hereof. 
  
 “Servicer
Termination Event” has the meaning specified in Section 9.1 of the Sale and Servicing Agreement. 
  
 “Servicing Policy and Procedures” means the policies and procedures set forth on Schedule D to the Sale and Servicing Agreement, and any
amendments thereto. 
  
 “S&P” means Standard
& Poor’s, a division of The McGraw Hill Companies, Inc., and any successor thereto. 
  
 “Spread Account Agreement” means the Spread Account Agreement, dated as of September 22, 2004, among the Insurer, the Servicer and the Indenture Trustee. 
  
 “Transaction” means the transactions contemplated by the
Transaction Documents. 
  
 “Transaction
Documents” means this Agreement, the Underwriting Agreement, the Sale and Servicing Agreement, the Certificate of Trust, the Trust Agreement, the Sale Agreement, the Purchase Agreement, the Indenture, the Spread Account Agreement and all
other documents and certificates delivered in connection therewith except for the Ambac Policy. 
  
 “Transaction Parties” means the United Parties and the Indenture Trustee. 
  
 “Transferor” has the meaning specified in the recitals hereof. 
  
 “Trust Agreement” means the Trust Agreement dated as of July
20, 2004 between the Seller and the Owner Trustee, as amended and restated as of August 31, 2004, as the same may be amended and supplemented from time to time. 
  

“Underwriter Information” means the information furnished by the Underwriter in writing expressly for use in the Offering Document and
included in the table following the second paragraph of text and the third, fourth, fifth, sixth and seventh paragraphs of text under the caption “Underwriting” in the Prospectus Supplement. 
  

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 “Underwriter” shall mean Deutsche Bank Securities Inc. 
  
 “Underwriting Agreement” means the Underwriting Agreement,
dated September 15, 2004 between the Underwriter and the Seller with respect to the offer and sale of the Class A Notes, as amended, modified or supplemented from time to time. 
  
 “United Party” means any of the Issuer, UACC, the Servicer and the Transferor (collectively, the
“United Parties”); provided, however, that solely with respect to the definition of “United Party” as such term is used in the Ambac Policy, “United Party” shall have the meaning as specified
therein. 
  
 “UACC” means United Auto Credit
Corporation, and its successors. 
  
 “UPFC” means
United PanAm Financial Corporation, and its successors. 
  
 Section 1.2 Other Definitional Provisions. The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Insurance Agreement shall refer to this Insurance Agreement as a
whole and not to any particular provision of this Insurance Agreement, and Section, subsection, Schedule and Exhibit references are to this Insurance Agreement unless otherwise specified. The meanings given to terms defined herein shall be equally
applicable to both the singular and plural forms of such terms. The words “include” and “including” shall be deemed to be followed by the phrase “without limitation.” Where a representation, warranty or covenant herein
begins with the words “as to a Person only,” such representation, warranty or covenant is given by and as to such Person only. 
  
 ARTICLE II 
  
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
  
 Section 2.1 Representations and Warranties of UACC, the Transferor and the Issuer. Each of UACC, the Transferor and the Issuer hereby makes, to and
for the benefit of the Insurer, each of the representations and warranties made by it in each of the Transaction Documents to which it is a party. Such representations and warranties are incorporated herein by this reference as if fully set forth
herein, and may not be amended except by an amendment complying with the terms of the last sentence of Section 6.1 hereof. In addition, each of UACC, the Transferor and the Issuer represents and warrants as of the Closing Date as follows:

  
 (a) The offer and sale of the Class A Notes by the Issuer
comply in all material respects with all requirements of law, including all registration requirements of applicable securities laws and, without limiting the generality of the foregoing, the Offering Document (other than the Underwriter Information,
the Seller Information and the Insurer Information) does not contain any untrue statement of a material fact and does not omit to state a material fact necessary to make the statements made therein, in light of the circumstances under which they
were made, not misleading. 
  
 (b) The Indenture has been duly
qualified under the Trust Indenture Act of 1939, as amended; the Issuer is not required to be registered as an “investment company” under the Investment Company Act; and neither the offer nor the sale of the Class A Notes by the Issuer

  

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will be in violation of the Securities Act or the Securities Exchange Act and the rules and regulations promulgated thereunder or any other federal or state
securities law. UACC, the Transferor and the Issuer shall each satisfy any of the information reporting requirements of the Securities Exchange Act and the rules and regulations promulgated thereunder arising out of the Transaction to which it is
subject. 
  
 (c) Neither the Transaction Documents nor any other
information relating to the Receivables, the Other Conveyed Property or any other asset in the Trust Estate, the operations or financial condition of any of the United Parties (collectively, the “Information”), as amended,
supplemented or superseded, furnished to the Insurer by such United Party contains any statement of a material fact which was untrue or misleading in any material respect when made. None of the United Parties has any knowledge of any circumstances
that could reasonably be expected to have a Material Adverse Effect. Since the furnishing of the Information, there has been no change nor any development or event involving a prospective change known to any of the United Parties that would render
any of the Transaction Documents untrue or misleading in any material respect. 
  
 Section 2.2 Representations and Warranties of the Seller. The Seller hereby makes, to and for the benefit of the Insurer, each of the representations and warranties made by it in each of the Transaction
Documents to which it is a party. Such representations and warranties are incorporated herein by this reference as if fully set forth herein, and may not be amended except by an amendment complying with the terms of the last sentence of Section 6.1
hereof. In addition, the Seller represents and warrants as of the Closing Date as follows: 
  
 (a) The offer and sale of the Class A Notes by the Issuer comply in all material respects with all requirements of law, including all registration requirements of applicable securities laws and, without limiting the
generality of the foregoing, the Seller Information does not contain any untrue statement of a material fact and does not omit to state a material fact necessary to make the statements made therein, in light of the circumstances under which they
were made, not misleading. 
  
 (b) The Indenture has been duly
qualified under the Trust Indenture Act of 1939, as amended; the Issuer is not required to be registered as an “investment company” under the Investment Company Act; and neither the offer nor the sale of the Class A Notes by the Issuer
will be in violation of the Securities Act or any other federal or state securities law. The Seller shall satisfy any of the information reporting requirements of the Securities Exchange Act and the rules and regulations promulgated thereunder
arising out of the Transaction to which it or the Issuer is subject. 
  
 Section 2.3 Representations and Warranties of the Insurer. The Insurer represents and warrants to the Indenture Trustee (on behalf of the Holders), the Issuer and each other Transaction Party as follows: 
  
 (a) Organization and Licensing. The Insurer is a stock insurance
corporation duly organized, validly existing and in good standing under the laws of the State of Wisconsin. 
  

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 (b) Corporate Power. The Insurer has the corporate power and authority to issue the Ambac Policy
and execute and deliver this Insurance Agreement and to perform all of its obligations hereunder and thereunder. 
  
 (c) Authorization; Approvals. All proceedings legally required for the issuance of the Ambac Policy and the execution, delivery and performance of
this Insurance Agreement have been taken and all licenses, orders, consents or other authorizations or approvals of the Insurer’s Board of Directors or stockholders or any governmental boards or bodies legally required for the enforceability of
the Ambac Policy have been obtained or are not material to the enforceability of the Ambac Policy. 
  
 (d) Enforceability. The Ambac Policy, when issued, will constitute, and this Insurance Agreement constitutes, legal, valid and binding obligations
of the Insurer, enforceable in accordance with their respective terms, subject to insolvency, reorganization, moratorium, receivership and other similar laws affecting creditors’ rights generally and by general principles of equity and subject
to principles of public policy limiting the right to enforce the indemnification provisions contained therein and herein, insofar as such provisions relate to indemnification for liabilities arising under federal securities laws. 
  
 (e) No Conflict. The execution by the Insurer of this Insurance
Agreement will not, and the satisfaction of the terms hereof will not, conflict with or result in a breach of any of the terms, conditions or provisions of the Certificate of Incorporation or By-Laws of the Insurer, or any restriction contained in
any contract, agreement or instrument to which the Insurer is a party or by which it is bound or constitute a default under any of the foregoing which would materially and adversely affect its ability to perform its obligations under the Ambac
Policy or this Insurance Agreement. 
  
 (f) Accuracy of
Information. The Insurer Information included in the Offering Document is limited and does not purport to provide the scope of disclosure required to be included in a prospectus with respect to a registrant in connection with the offer and sale
of securities of such registrant registered under the Securities Act. Within such limited scope of disclosure, however, as of the date of the Offering Document, the Insurer Information does not contain an untrue statement of a material fact or omit
to state a material fact necessary to make the statements therein, in light of the circumstances in which they were made, not misleading. 
  
 Section 2.4 Affirmative Covenants of UACC, the Transferor and the Issuer. Each of UACC, the Transferor and the Issuer hereby makes, to and for the
benefit of the Insurer, all of the covenants made by it in the Transaction Documents to which it is a party. Such covenants are hereby incorporated herein by this reference as if fully set forth herein, and may not be amended except by an amendment
complying with the terms of the last sentence of Section 6.1. In addition, UACC, each of the Transferor and the Issuer hereby agrees that during the term of this Insurance Agreement, unless the Insurer shall otherwise expressly consent in writing:

  
 (a) Compliance with Agreements and Applicable Laws. It
shall comply with the terms and conditions of and perform its obligations under the Transaction Documents to which it is a party and shall comply with any law, rule or regulation applicable to it, except where the 

  

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failure to comply with any such law, rule or regulation is not reasonably likely to have a Material Adverse Effect. 
  
 (b) Existence. Except as otherwise expressly provided by the
Transaction Documents, it shall maintain its corporate existence and shall at all times continue to be duly organized under the laws of the place of its organization and duly qualified and duly authorized thereunder. Additionally, it shall conduct
its business in accordance with the terms of its Charter Documents and shall maintain all licenses, permits, charters and registrations, except for any such license, permit, charter or registration the failure of which to maintain is not reasonably
likely to have a Material Adverse Effect. 
  
 (c) Notice of
Material Events. It shall promptly (and, with respect to item (ii) below, in any event not later than two (2) Business Days, and, with respect to all other items not later than five (5) Business Days) following receipt of actual knowledge by a
Responsible Officer thereof inform the Insurer in writing of the occurrence of any of the following: 
  
 (i) the submission of any claim or the initiation of any legal process, litigation or administrative or judicial investigation, or
disciplinary proceeding by or against it that would be reasonably likely to have a Material Adverse Effect or the promulgation of any proceeding or any proposed or final ruling in connection with any such litigation, investigation or proceeding
which would reasonably likely to have a Material Adverse Effect; 
  
 (ii) the occurrence of any Event of Default hereunder, any Default or Event of Default under the Indenture, any Servicer Termination Event or any Trigger Event; 
  
 (iii) the commencement of any Insolvency Proceeding against
any Transaction Party; 
  
 (iv) the occurrence of
a Change in Control (as defined in the Spread Account Agreement); and 
  
 (v) the receipt of written notice that (a) any license, permit, charter, registration or approval necessary and material for the conduct of its business is to be, or may be, suspended or revoked and such suspension or
revocation would be reasonably likely to have a Material Adverse Effect or (b) it is to cease and desist any practice, procedure or policy employed by it in the conduct of its business, and such cessation would be reasonably likely to have a
Material Adverse Effect. 
  
 (d) Notice of Change. It shall
give the Insurer not less than thirty (30) days’ prior written notice of any proposed change in its name, principal place of business or jurisdiction of organization. 
  
 (e) Access to Records; Discussions with Officers and Accountants. Upon reasonable prior written notice of the Insurer
at any time, it shall permit the Insurer or its authorized agents: 
  

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 (i) to inspect its books and its records as they may relate to the Transaction, the
Receivables, the Other Conveyed Property or any other assets in the Trust Estate, as the case may be, or its obligations under the Transaction Documents; 
  
 (ii) to discuss its affairs, finances and accounts with its principal executive officer and its principal financial officer; and

  
 (iii) to discuss its affairs, finances and
accounts with its independent accountants, provided that one of its officers shall have the right to be present during such discussions. 
  
 Such inspections and discussions shall be conducted during normal business hours at UACC’s cost and expense and shall not unreasonably disrupt the
business of UACC, the Transferor or the Issuer, as the case may be. Absent an Event of Default hereunder or under the Indenture, a Servicer Termination Event or a Trigger Event, the Insurer shall not conduct such inspections or discussions more
often than annually, unless otherwise mutually agreed by the Insurer and UACC. If, however, an Event of Default hereunder or under the Indenture, a Servicer Termination Event or a Trigger Event has occurred and is continuing, the Insurer may
increase the frequency of such audits to semi-annual, quarterly, or otherwise as it deems appropriate. Without limiting the foregoing, upon the occurrence of a Trigger Event, an Event of Default hereunder or under the Indenture or a Servicer
Termination Event, UACC and the Transferor shall make its principal officers available to discuss the Transaction with representatives of the Insurer within 15 days of receipt by UACC or the Transferor of such a request from the Insurer. 

 
 (f) Closing Documents. It shall provide or cause to be provided to
the Insurer an executed original copy of each Transaction Document executed by it in connection with the closing of the Transaction within thirty (30) days of the Closing Date. 
  
 (g) Financial Reporting. In the case of UACC, it shall provide or cause to be provided to the Insurer the following:

  
 (i) Annual and Periodic Financial
Statements; Other Reporting. Copies of the financial statements required to be delivered pursuant to Section 4.11 of the Sale and Servicing Agreement and such notices, certificates, reports and other information delivered by UACC under the
Transaction Documents, as and when required pursuant to such sections or agreements, and any other reporting or financial information required to be provided to the Insurer pursuant to the terms of the Transaction Documents, including, without
limitation, financial projections, as and when required pursuant to such terms. Subsequent to a Change in Control as described in (2)(b) of the definition thereof and for the purpose of determining that a Successor continues to be a Net Worth
Successor (as those terms are defined in the definition of “Change in Control”), UACC will provide unaudited quarterly financial statements, accompanied by the statement in the form of Exhibit C hereto. Such statements will be
provided no later than thirty (30) days following each fiscal quarter. 
  

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 (ii) Compliance Certificate. Together with the financial statements required under
Section 4.11 of the Sale and Servicing Agreement, a compliance certificate signed by its principal financial officer stating that to the best of such person’s knowledge, (a) each United Party is in compliance with its obligations hereunder and
under the other Transaction Documents, and (b) no Event of Default hereunder or under the Indenture or Servicer Termination Event exists and no event which but for the lapse of time or the giving of notice, or both, would constitute an Event of
Default hereunder or under the Indenture or Servicer Termination Event or Trigger Event exists, or if an Event of Default hereunder or under the Indenture or Servicer Termination Event or other such event exists, stating the nature and status
thereof (including all relevant financial and other information and amounts used in determining whether such Event of Default hereunder or under the Indenture or Servicer Termination Event or Trigger Event or other such event exists). 
  
 (iii) S.E.C. Filings. Promptly after the filing
thereof, copies of all registration statements and annual, quarterly or other regular reports which it or any subsidiary files with the Securities and Exchange Commission. 
  
 (iv) Shareholders Statements and Reports. Promptly after the furnishing thereof to its shareholders,
copies of all financial statements, reports and proxy statements so furnished. 
  
 (v) Amendments to Servicing Policy and Procedure. Within ten (10) Business Days after the date of any material change or amendment
to its Servicing Policy and Procedure, a true and complete copy of such change or amendment, and if requested by the Insurer, a copy of the Servicing Policy and Procedure then in effect. No such change or amendment shall become effective if the
Insurer determines, in its sole discretion, that such change or amendment will have a Material Adverse Effect; provided that such change or amendment shall become effective and continue to be effective if the Insurer has not objected to such
change or amendment within ten (10) Business Days of receipt of written notice thereof. 
  
 (vi) Servicing Policy and Procedure. Within ninety (90) days after the end of each of its fiscal years, a true and complete copy of
its Servicing Policy and Procedure then in effect. 
  
 (h)
Maintenance of Licenses. It shall maintain all licenses, permits, charters and registrations, except for licenses, permits, charters and registrations the failure of which to maintain is not reasonably likely to have a Material Adverse
Effect. 
  
 (i) Public Debt Ratings. UACC shall promptly,
but in any event within five (5) Business Days after the date of any change in its public debt ratings, if any, a written certification of its public debt ratings after giving effect to such change. 
  
 (j) Compliance with Securities Laws. It shall comply with the
Securities Act and the Securities Exchange Act and the regulations thereunder so as to permit the completion of the offer and sale of the Class A Notes as contemplated by the Underwriting Agreement. 
  

 13 

 (k) Disclosure Document. Each Offering Document delivered with respect to the Class A Notes shall
clearly disclose that the insurance provided by the Ambac Policy is not covered by the property/casualty insurance security fund specified in Article 76 of the New York Insurance Law. 
  
 (l) Financial Statements. In the case of the Transferor and the Issuer, its financial statements and books and
records will reflect its separate existence and will present fairly its financial position. 
  
 (m) Operation. In the case of the Transferor and the Issuer, it shall: 
  
 (i) manage its day to day business without the involvement of any other Transaction Party except as required or permitted by the
Transaction Documents; 
  
 (ii) act solely in its
own name in the conduct of its business, including business correspondence and other communications, and shall conduct its business so as not to mislead others as to the identity of the entity with which they are concerned; 
  
 (iii) ensure that, to the extent that it shares the same
officers or other employees as any of its Affiliates, the salaries of and the expenses related to providing benefits to such officers and other employees shall be fairly allocated among such entities, and each such entity shall bear its fair share
of the salary and benefit costs associated with all such common officers and employees; 
  
 (iv) ensure that, to the extent that it jointly contracts with any of its Affiliates to do business with vendors or service providers or
to share overhead expenses, the costs incurred in doing so shall be allocated fairly among such entities, and each such entity shall bear its fair share of such costs. To the extent that it contracts or does business with vendors or service
providers when the goods and services provided are partially for the benefit of any other Person, the costs incurred in so doing shall be fairly allocated to or among such entities for whose benefit the goods and services are provided, and each such
entity shall bear its fair share of such costs. All material transactions between the other Transaction Parties and its Affiliates shall only be on an arm’s-length basis; 
  
 (v) require that all of its full-time employees identify themselves as such and not as employees of UACC or
any other United Party (including, without limitation, by means of providing appropriate employees with business or identification cards identifying such employees as its employees); and 
  
 (vi) compensate all employees, consultants and agents directly, from its bank accounts, for services
provided to it by such employees, consultants and agents, and, to the extent any of its employees, consultants or agents is also an employee, consultant or agent of UACC (or any Affiliate thereof), allocate the compensation of such employee,
consultant or agent between itself and UACC (or any Affiliate thereof) on a basis which reflects the services rendered to itself and UACC (or such Affiliate thereof). 
  
 (n) Special Purpose Entity. In addition, the Transferor shall: 
  

 14 

 (i) ensure that its capital is adequate for the business and undertakings of the
Transferor; 
  
 (ii) other than activities in
connection with the Transaction, be restricted from undertaking any activities other than purchasing automobile loans receivables and transferring the proceeds to other special-purpose entities in connection with the issuance of other asset backed
securities; 
  
 (iii) have at least one director,
manager or member that is a person who is not, and will not be, a director, officer, employee or holder of any equity securities of UACC or any of its affiliates or subsidiaries; 
  
 (iv) not commingle its funds and assets with the funds of any other person; 
  
 (v) maintain (A) correct and complete minute books and
records of account, and (B) minutes of the meetings and other proceedings of its board of managers, as provided in its articles of incorporation. 
  
 (o) Other Information. It shall provide to the Insurer such other information (including non financial information) in respect of the Receivables,
the Other Conveyed Property or the other assets in the Trust Estate, as the case may be, the Transaction and the Transaction Documents and such other financial or operating information in respect of itself, the Transferor, the Issuer or any of their
Affiliates, in each case, which the Insurer may from time to time reasonably request. 
  
 Section 2.5 Affirmative Covenants of the Seller. The Seller hereby makes, to and for the benefit of the Insurer, all of the covenants made by it in the Transaction Documents to which it is a party. Such
covenants are hereby incorporated herein by this reference as if fully set forth herein, and may not be amended except by an amendment complying with the terms of the last sentence of Section 6.1. In addition, the Seller hereby agrees that during
the term of this Insurance Agreement, unless the Insurer shall otherwise expressly consent in writing: 
  
 (a) Compliance with Agreements and Applicable Laws. It shall comply with the terms and conditions of and perform its obligations under the
Transaction Documents to which it is a party and shall comply with any law, rule or regulation applicable to it, except where the failure to comply with any such law, rule or regulation is not reasonably likely to have a Material Adverse Effect.

  
 (b) Existence. Except as otherwise expressly provided
by the Transaction Documents, it shall maintain its corporate existence and shall at all times continue to be duly organized under the laws of the place of its organization and duly qualified and duly authorized thereunder. Additionally, it shall
conduct its business in accordance with the terms of its Charter Documents and shall maintain all licenses, permits, charters and registrations, except for any such license, permit, charter or registration the failure of which to maintain is not
reasonably likely to have a Material Adverse Effect. 
  

 15 

 Section 2.6 Negative Covenants of UACC, the Transferor and the Issuer. each of UACC, the
Transferor and the Issuer hereby agrees that during the term of this Insurance Agreement, unless the Insurer shall otherwise expressly consent in writing: 
  
 (a) Impairment of Rights. It shall not take any action, or fail to take any action, if such action or failure to take action (x) is reasonably
likely to have a Material Adverse Effect or (y) is reasonably likely to interfere with the enforcement of any rights of the Insurer under or with respect to any of the Transaction Documents. It shall give the Insurer written notice of any such
action or failure to act promptly prior to the date of consummation of such action or failure to act. It shall furnish to the Insurer all information requested by it that is reasonably necessary to determine compliance with this paragraph.

  
 (b) Amendments, Etc. It shall not modify, amend or
waive, or consent to any modification or amendment of, any of the terms, provisions or conditions of the Transaction Documents to which it is a party or, in the case of the Transferor and the Issuer, any of its Charter Documents, without the prior
written consent of the Insurer thereto. 
  
 (c) Limitation on
Mergers, Etc. In the case of the Transferor and the Issuer, it shall not consolidate with or merge with or into any Person or liquidate or dissolve, or transfer all or substantially all of its assets to any Person except, in the case of the
Issuer, by way of the grant of a lien to the Indenture Trustee pursuant to the Transaction Documents, or, except as expressly permitted by the Transaction Documents, transfer any of its assets to any Person. 
  
 (d) Certain Other Limitations. In the case of the Transferor and the
Issuer, it shall: 
  
 (i) not be named as an
insured on the insurance policy held by another United Party or covering the property of any other United Party, except to the extent it shall bear its allocable share of the expense thereof, or enter into an agreement with the holder of such policy
whereby in the event of a loss in connection with property not owned by the Issuer or the Transferor, as the case may be, proceeds are paid to it; 
  
 (ii) be restricted from undertaking activities in connection with the issuance of the Class A Notes other than activities as set forth in
its Charter Documents; 
  
 (iii) not be involved
in the day-to-day management of any of the other United Parties except as required by or permitted by the Transaction Documents; 
  
 (iv) not incur, assume or guarantee any indebtedness except for such indebtedness as may be incurred by the Issuer in connection with the
issuance of the Class A Notes, or as otherwise expressly permitted by the Insurer or the Transaction Documents; 
  
 (v) not commingle its deposit accounts (and funds therein) or other assets with the deposit accounts (and funds therein) or other assets
of any other entity; 
  
 (vi) not act as an agent
of any other United Party; and 
  

 16 

 (vii) not form, or cause to be formed, any subsidiaries; provided that the
Transferor may form other special purpose entities in connection with the issuance of other asset backed securities to the extent the Insurer acts as an insurer in connection with such transactions. 
  
 ARTICLE III 
  
 THE AMBAC POLICY; REIMBURSEMENT 
  
 Section 3.1 Issuance of the Ambac Policy. The Insurer agrees to issue
the Ambac Policy on the Closing Date subject to satisfaction of the conditions precedent set forth below: 
  
 (a) Payment of Expenses. The applicable parties shall have been paid their related fees and expenses payable in accordance with Section 3.2(a) and
(b); 
  
 (b) Receipt of Certain Documents. The Insurer
shall have received a complete copy of the Servicing Policy and Procedures then in effect certified by the principal financial officer of UACC and of each Transaction Document fully executed and delivered by each applicable Transaction Party;

  
 (c) Representations and Warranties; Certificate. The
representations and warranties of the United Parties set forth or incorporated by reference in this Insurance Agreement and the representations and warranties set forth by the Indenture Trustee in the Indenture are true and correct on and as of the
Closing Date as if made on the Closing Date, and the Insurer has received a certificate of appropriate officers of the related United Party to that effect; 
  
 (d) No Litigation, Etc. No suit, action or other proceeding, investigation or injunction, or final judgment relating thereto, is pending or, to any
Transaction Party’s knowledge, threatened before any court, governmental or administrative agency or arbitrator in which it is sought to restrain or prohibit or to obtain damages or other relief in connection with any of the Transaction
Documents or the consummation of the Transaction; 
  
 (e)
Legality. No statute, rule, regulation or order has been enacted, entered or deemed applicable by any government or governmental or administrative agency or court that would make the Transaction illegal or otherwise prevent the consummation
thereof; 
  
 (f) No Event of Default. No Event of Default
hereunder, Default or Event of Default under the Indenture, Trigger Event or Servicer Termination Event has occurred; 
  
 (g) Satisfaction of Conditions of the Underwriting Agreement. All conditions in the Underwriting Agreement relating to the Underwriter’s
obligation to offer and sell the Class A Notes have been fulfilled to the satisfaction of the Insurer, with such satisfaction deemed to have occurred upon issuance of the Ambac Policy. The Insurer has received copies of each of the documents, and
shall be entitled to rely on each of the documents, required to be delivered to the Underwriter pursuant to the Underwriting Agreement; 
  

 17 

 (h) Issuance of Ratings. The Insurer has received confirmation that the Class A-1 Notes will be
rated in the highest short term rating category by at least two nationally recognized statistical rating agencies, that the Class A-2 Notes and the Class A-3 Notes will be rated in the highest long term rating category by at least two nationally
recognized statistical rating agencies and that, without the benefit of the Ambac Policy, the Class A Notes will have a shadow rating of at least BBB from S&P and Baa2 from Moody’s; 
  
 (i) Approvals, Etc. The Insurer has received true and correct copies
of all approvals, licenses and consents, if any, required in connection with the Transaction; 
  
 (j) Fee Letter. The Insurer, the Indenture Trustee and the Issuer have executed the Fee Letter; 
  
 (k) Certified Copies. The Insurer has received an executed copy of each Transaction Document; 
  
 (l) Opinions. The Insurer has received opinions of counsel concerning
the perfection of the Indenture Trustee’s security interest in the Trust Estate and other matters under the laws of the United States, and has received copies of any opinions delivered to the Rating Agencies, the Noteholders and the Indenture
Trustee, in each case addressed to, and in form and substance satisfactory to, the Insurer; 
  
 (m) Satisfactory Documentation. The Insurer and its counsel have determined that all documents, the Class A Notes and opinions to be delivered in connection with the Class A Notes conform to the terms of the
Transaction Documents; and 
  
 (n) Additional Items. The
Insurer has received such other documents, instruments, approvals or opinions in form and substance reasonably satisfactory to the Insurer as are reasonably requested by the Insurer, including evidence reasonably satisfactory to the Insurer that the
conditions precedent, if any, in the Transaction Documents have been satisfied. 
  
 Section 3.2 Payment of Fees and Premium. 
  
 (a) Legal and Accounting Fees. UACC shall pay or cause to be paid on the Closing Date all reasonable legal fees, auditors’ fees and disbursements incurred by the Insurer in connection with the issuance of
the Ambac Policy and the Transaction Documents through the Closing Date. Additional fees of the Insurer’s counsel or auditors payable in connection with the Transaction Documents incurred after the Closing Date shall be paid by UACC as provided
in Section 3.3 below. 
  
 (b) Rating Agency Fees. UACC
shall promptly pay the initial fees of the Rating Agencies with respect to the Class A Notes and the transactions contemplated hereby following receipt of a statement with respect thereto, and shall pay or cause to be paid any subsequent fees of the
Rating Agencies with respect to, and directly allocable to, the Class A Notes. The Insurer shall not be responsible for any fees or expenses of the Rating Agencies. The fees for any other rating agency shall be paid by the party requesting such
other rating agency’s rating. 
  

 18 

 (c) Premium. In consideration of the issuance by the Insurer of the Ambac Policy, the Issuer shall
pay or cause to be paid the Premiums to the Insurer as set forth in the Fee Letter in accordance with the Indenture and this Insurance Agreement and from the funds specified by Section 5.7 of the Sale and Servicing Agreement, commencing on the day
the Ambac Policy is issued, until the Ambac Policy has been terminated in accordance with its terms. The Premium paid pursuant to the Indenture and the Sale and Servicing Agreement shall be nonrefundable without regard to whether any Notice (as
defined in the Ambac Policy) is delivered to the Insurer requiring the Insurer to make any payment under the Ambac Policy or any other circumstances relating to the Class A Notes or provision being made for payment of the Class A Notes prior to
maturity. 
  
 Section 3.3 Reimbursement Obligation. (a) The
Issuer agrees absolutely and unconditionally to reimburse the Insurer for any amounts paid by the Insurer under the Ambac Policy, plus the amount of any other due and payable and unpaid Reimbursement Amounts (as defined in the Ambac Policy), which
reimbursement shall be due and payable on the date that any such amount is paid thereunder from amounts available for such payment under the Indenture and the Sale and Servicing Agreement, in an amount equal to the amounts so paid and all amounts
previously paid that remain unreimbursed, together (without duplication) with interest on any and all amounts remaining unreimbursed (to the extent permitted by law, if in respect of any unreimbursed amounts representing interest) from the date such
amounts became due until paid in full (after as well as before judgment), at a rate of interest equal to the Late Payment Rate. 
  
 (b) Each of the Issuer, the Transferor and UACC agrees, jointly and severally, to pay to the Insurer, promptly, but in no event later than 30 days after
demand thereof, as follows: any and all charges, fees, costs and expenses, including reasonable attorneys’ and accountants’ fees and expenses, that the Insurer may pay or incur in connection with the Transaction Documents, including (i)
the enforcement, defense or preservation of any rights in respect of any of the Transaction Documents, defending, monitoring or participating in any litigation or proceeding (including any insolvency proceeding in respect of any United Party or any
Affiliate thereof) relating to any of the Transaction Documents, any party to any of the Transaction Documents (in its capacity as such a party) or the Transaction, the costs and fees of inspections by the Insurer or audits or field examinations by
accountants and the ongoing administration of the Transaction pursuant to the Transaction Documents, or (ii) any amendment, waiver or other similar action with respect to, or related to, any Transaction Document, whether or not executed or
completed. 
  
 (c) Each of the Issuer, the Transferor and UACC
agrees, jointly and severally, to pay to the party to whom such amounts are owed on demand interest at the Late Payment Rate on any and all amounts described in Sections 3.3(b) and 3.4 after the date such amounts become due and payable until payment
thereof in full. 
  
 Section 3.4 Indemnification. (a) In
addition to any and all of the Insurer’s rights of reimbursement, indemnification or subrogation, and to any other rights of the Insurer pursuant hereto or under law or in equity, each of UACC and the Transferor agrees, jointly and severally,
to pay, and to protect, indemnify and save harmless, the Insurer and its officers, directors, shareholders, employees, agents and each Person, if any, who controls the Insurer 

  

 19 

 
within the meaning of either Section 15 of the Securities Act or Section 20 of the Securities Exchange Act from and against, any and all claims, losses,
liabilities (including penalties), actions, suits, judgments, demands, damages, costs or expenses (including reasonable fees and expenses of attorneys, consultants and auditors and reasonable costs of investigations) of any nature arising out of or
relating to the transactions contemplated by the Transaction Documents by reason of: 
  
 (i) any statement, omission or action (other than of the Insurer with respect to the Insurer Information, of the Underwriter with respect
to the Underwriter Information or of the Seller with respect to the Seller Information) in connection with the offering, issuance, sale or delivery of any of the Class A Notes; 
  
 (ii) the negligence, bad faith, willful misconduct, misfeasance, malfeasance or theft committed by any
director, officer, employee or agent of any United Party in connection with the Transaction; 
  
 (iii) the violation by any United Party of any domestic or foreign law, rule or regulation, or any judgment, order or decree applicable to
them; 
  
 (iv) the breach by any United Party of
any representation, warranty or covenant under any of the Transaction Documents (without giving effect to any materiality qualifier or limitation therein); 
  
 (v) the occurrence, in respect of UACC’s duties as the Servicer, under any of the Transaction Documents of any Servicer Termination
Event or any event which, with the giving of notice or the lapse of time or both, would constitute any Servicer Termination Event; or 
  
 (vi) any untrue statement or alleged untrue statement of a material fact contained in the Offering Document or any omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, except insofar as such claims, losses, liabilities
(including penalties), actions, suits, judgments, demands, damages, costs or expenses (including reasonable fees and expenses of attorneys, consultants and auditors and reasonable costs of investigations) arise out of or are based upon any untrue
statement or omission in the Offering Document in the information with respect to (x) the Insurer Information, (y) the Underwriter Information and (z) the Seller Information. 
  
 (b) In addition to any and all of the Insurer’s rights of reimbursement, indemnification or subrogation, and to any
other rights of the Insurer pursuant hereto or under law or in equity, the Seller agrees to pay, and to protect, indemnify and save harmless, the Insurer and its officers, directors, shareholders, employees, agents and each Person, if any, who
controls the Insurer within the meaning of either Section 15 of the Securities Act or Section 20 of the Securities Exchange Act from and against, any and all claims, losses, liabilities (including penalties), actions, suits, judgments, demands,
damages, costs or expenses (including reasonable fees and expenses of attorneys, consultants and auditors and reasonable costs of investigations) 

  

 20 

 
of any nature arising out of or relating to the transactions contemplated by the Transaction Documents, including by reason of: 
  
 (i) the negligence, bad faith, willful misconduct,
misfeasance, malfeasance or theft committed by any director, officer, employee or agent of the Seller in connection with the Transaction; 
  
 (ii) the violation by the Seller of any domestic or foreign law, rule or regulation, or any judgment, order or decree applicable to them;

  
 (iii) the breach by the Seller of any
representation, warranty or covenant under any of the Transaction Documents (without giving effect to any materiality qualifier or limitation therein); or 
  
 (iv) any untrue statement or alleged untrue statement of a material fact contained in the Seller Information or any omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. 
  
 (c) In addition to any and all of the Insurer’s rights of reimbursement,
indemnification or subrogation, and to any other rights of the Insurer pursuant hereto or under law or in equity, the Issuer agrees to pay, and to protect, indemnify and save harmless, the Insurer and its officers, directors, shareholders,
employees, agents and each Person, if any, who controls the Insurer within the meaning of either Section 15 of the Securities Act or Section 20 of the Securities Exchange Act from and against, any and all claims, losses, liabilities (including
penalties), actions, suits, judgments, demands, damages, costs or expenses (including reasonable fees and expenses of attorneys, consultants and auditors and reasonable costs of investigations) of any nature arising out of or relating to the
transactions contemplated by the Transaction Documents, including by reason of: 
  
 (i) any statement, omission or action (other than of the Insurer with respect to the Insurer Information, of the Underwriter with respect
to the Underwriter Information, or of the Seller with respect to the Seller Information) in connection with the offering, issuance, sale or delivery of any of the Class A Notes; 
  
 (ii) the negligence, bad faith, willful misconduct, misfeasance, malfeasance or theft committed by any
director, officer, employee or agent of any Transaction Party in connection with the Transaction; 
  
 (iii) the violation by any Transaction Party of any domestic or foreign law, rule or regulation, or any judgment, order or decree
applicable to them; 
  
 (iv) the breach by any
Transaction Party of any representation, warranty or covenant under any of the Transaction Documents (without giving effect to any materiality qualifier or limitation therein); or 
  
 (v) any untrue statement or alleged untrue statement of a material fact contained in the Offering Document
or any omission or alleged omission to state therein 

  

 21 

 
a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading, except insofar as such claims, losses, liabilities (including penalties), actions, suits, judgments, demands, damages, costs or expenses (including reasonable fees and expenses of attorneys, consultants and auditors and reasonable
costs of investigations) arise out of or are based upon any untrue statement or omission in the Offering Document in the information with respect to (x) the Insurer Information, (y) the Underwriter Information and (z) the Seller Information.

  
 (d) The Insurer agrees to pay, and to protect, indemnify and
save harmless each of UACC, the Transferor, the Seller and the Issuer, and their respective officers, directors, shareholders, employees, agents and each Person, if any, who controls UACC, the Transferor, the Seller and the Issuer, within the
meaning of either Section 15 of the Securities Act or Section 20 of the Securities Exchange Act from and against, any and all claims, losses, liabilities (including penalties), actions, suits, judgments, demands, damages, costs or expenses
(including reasonable fees and expenses of attorneys, consultants and auditors and reasonable costs of investigations) of any nature arising out of or by reason of any untrue statement or alleged untrue statement of a material fact contained in the
Insurer Information in any Offering Document or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made,
not misleading. 
  
 (e) If any action or proceeding (including any
governmental investigation) shall be brought or asserted against any Person (each, an “Indemnified Party”) in respect of which the indemnity provided in Section 3.4(a), (b), (c) or (d) may be sought from UACC, the Transferor, the
Seller, the Issuer or the Insurer, as the case may be (the “Indemnifying Party”), each such Indemnified Party shall promptly notify the Indemnifying Party in writing, and the Indemnifying Party shall assume the defense thereof,
including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all expenses and legal fees; provided that failure to notify the Indemnifying Party shall not relieve it from any liability it may have to
such Indemnified Party except to the extent that it shall be actually prejudiced thereby. The Indemnified Party shall have the right to employ separate counsel in any such action and to participate in the defense thereof at the expense of the
Indemnified Party and may assume the defense of any such action or claim in reasonable cooperation with, and with the reasonable cooperation of, the Indemnifying Party; provided, however, that the fees and expenses of separate counsel
to the Indemnified Party in any such proceeding shall be at the expense of the Indemnifying Party if (i) the Indemnifying Party has agreed to pay such fees and expenses, (ii) the Indemnifying Party shall have failed to assume the defense of such
action or proceeding or employ counsel reasonably satisfactory to the Indemnified Party in any such action or proceeding within a reasonable time after the commencement of such action or (iii) the named parties to any such action or proceeding
(including any impleaded parties) include both the Indemnified Party and the Indemnifying Party, and the Indemnified Party shall have been advised by counsel that there may be one or more legal defenses available to it which are different from or
additional to those available to the Indemnifying Party (in which case, if the Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party
shall not have the right to assume the defense of such action or proceeding on behalf of such Indemnified Party, it being 

  

 22 

 
understood, however, that the Indemnifying Party shall not, in connection with any one such action or proceeding or separate but substantially similar or
related actions or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than one separate firm of attorneys at any time for the Indemnified Parties,
which firm shall be designated in writing by the Indemnified Party). The Indemnifying Party shall not be liable for any settlement of any such action or proceeding effected without its written consent to the extent that any such settlement shall be
prejudicial to the Indemnifying Party, which consent shall not be unreasonably withheld or delayed, but, if settled with its written consent, or if there is a final judgment for the plaintiff in any such action or proceeding with respect to which
the Indemnifying Party shall have received notice in accordance with this subsection (d), the Indemnifying Party agrees to indemnify and hold the Indemnified Parties harmless from and against any loss or liability by reason of such settlement or
judgment. 
  
 (f) To provide for just and equitable contribution
if the indemnification provided by the Indemnifying Party is determined to be unavailable or insufficient to hold harmless any Indemnified Party (other than due to application of this Section), each Indemnifying Party shall contribute to the losses
incurred by the Indemnified Party on the basis of the relative fault of the Indemnifying Party, on the one hand, and the Indemnified Party, on the other hand. The relative fault of each Indemnifying Party, on the one hand, and each Indemnified
Party, on the other, shall be determined by reference to, among other things, whether the breach or alleged breach is within the control of the Indemnifying Party or the Indemnified Party, and the parties relative intent, knowledge, access to
information and opportunity to correct or prevent such breach. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. 
  
 Section 3.5 Payment
Procedure. In the event of any payment by the Insurer for which reimbursement is sought under Section 3.3, the Issuer, UACC, the Transferor, the Seller and the Indenture Trustee agree to accept the voucher or other evidence of payment as
prima facie evidence of the propriety thereof and the liability, if any, described in Section 3.3 therefor to the Insurer; provided, that with respect to claims for reimbursement of amounts other than amounts paid by the Insurer
under the Ambac Policy and any interest thereon made to UACC under Section 3.3(b), the Insurer will also provide appropriate supporting documents to UACC for such claims. All payments to be made to the Insurer under this Insurance Agreement shall be
made to the Insurer (to such account as shall be specified by the Insurer in writing) by no later than 3:00 p.m. (New York time) on the date when due in lawful currency of the United States of America in immediately available funds or as the Insurer
shall otherwise direct by written notice to the party making such payment. In the event that the date of any payment to the Insurer or the expiration of any time period hereunder occurs on a day that is not a Business Day, then such payment or
expiration of time period shall be made or occur on the next succeeding Business Day with the same force and effect as if such payment was made or time period expired on the scheduled date of payment or expiration date. 
  
 Section 3.6 Subrogation. The parties hereto acknowledge that, to the
extent of any payment made by the Insurer pursuant to the Ambac Policy, the Insurer shall be fully subrogated to the extent of such payment and any interest due thereon, to the rights of the 

  

 23 

 
Noteholders to any moneys paid or payable in respect of the Class A Notes under the Transaction Documents or otherwise subject to applicable law. The parties
hereto agree to such subrogation and further agree to execute such instruments and to take such actions as, in the sole and reasonable judgment of the Insurer, are necessary to evidence such subrogation and to perfect the rights of the Insurer to
receive any such moneys paid or payable in respect of the Class A Notes, under the Transaction Documents or otherwise. 
  
 ARTICLE IV 
  
 FURTHER AGREEMENTS 
  
 Section 4.1 Effective Date; Term of the Insurance Agreement. This Insurance Agreement shall take effect on the Closing Date and shall remain in effect until the later of (a) such time as the Insurer is no
longer subject to a claim under the Ambac Policy and such policy has been surrendered to the Insurer for cancellation and (b) such time as all amounts payable to the Insurer by the United Parties hereunder or under the Transaction Documents and the
Class A Notes have been irrevocably paid and redeemed in full and such Class A Notes have been cancelled; provided, however, that the provisions of Sections 3.2, 3.3 and 3.4 hereof shall survive any termination of this Insurance
Agreement. 
  
 Section 4.2 Further Assurances and Corrective
Instruments. (a) Unless an Insurer Event of Default has occurred and is continuing, or except as the Indenture otherwise provides, none of the Indenture Trustee and none of the other Transaction Parties shall grant any waiver of rights under any
of the Transaction Documents to which any of them is a party without the prior written consent of the Insurer and any such waiver without prior written consent of the Insurer shall be null and void and of no force or effect. 
  
 (b) Each of the parties hereto agrees that it will, from time to time,
execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments and agreements and take such further actions as the Insurer may reasonably request and as may be required in
the Insurer’s reasonable judgment to effectuate the intent and purpose of this Insurance Agreement and the other Transaction Documents. Without limiting the foregoing, to the extent such authorization shall be required by law, each United Party
hereby authorizes the Indenture Trustee and the Insurer, at the expense of the Issuer, in the event the Issuer has failed to do so upon request (provided that no such request shall be required if there exists any Insolvency Proceeding), to
execute and file financing statements covering the assets covered by any purchase or transfer pursuant to the Transaction Documents or owned by the Issuer in such jurisdictions as may be required to confirm title thereto and perfect and maintain the
lien thereon. In addition, each of the parties hereto agrees to cooperate with the Rating Agencies in connection with any review of the Transaction conducted during normal business hours and in a manner that does not unreasonably disrupt the
business of the Transaction Parties, that may be undertaken by the Rating Agencies after the date hereof upon prior written notice. 
  
 (c) None of the Transaction Parties shall cause or permit the Issuer to issue any notes or other evidences of indebtedness, or to otherwise incur any
indebtedness, other than the 

  

 24 

 
indebtedness represented by the Class A Notes or other indebtedness expressly permitted under the Transaction Documents. 
  
 (d) Each Transaction Party shall concurrently provide the Insurer, as and
when delivery thereof is required to be made pursuant to the Transaction Documents, with copies of all reports, notices, requests and demands delivered or required to be delivered by it pursuant to the Transaction Documents. 
  
 Section 4.3 Obligations Absolute. (a) The obligations of the
Transaction Parties hereunder shall be absolute and unconditional and shall be paid or performed strictly in accordance with this Insurance Agreement and the other Transaction Documents under all circumstances irrespective of: 
  
 (i) any lack of validity or enforceability of, or any
amendment or other modifications of, or waiver with respect to, any of the Transaction Documents or the Class A Notes; 
  
 (ii) any exchange or release of any other obligations hereunder; 
  
 (iii) the existence of any claim, setoff, defense, reduction, abatement or other right that a Transaction
Party which is a party to any of the Transaction Documents may have at any time against the Insurer or any other Person; 
  
 (iv) any document presented in connection with the Ambac Policy proving to be forged, fraudulent, invalid or insufficient in any respect
or any statement therein being untrue or inaccurate in any respect; 
  
 (v) any payment by the Insurer under the Ambac Policy against presentation of a certificate or other document that does not strictly comply with the terms of the Ambac Policy; 
  
 (vi) any failure of the Transaction Parties to receive the
proceeds from the sale of the Class A Notes; 
  
 (vii) any Insolvency Event with respect to any Transaction Party; and 
  
 (viii) any other circumstances, other than payment in full, that might otherwise constitute a defense available to, or discharge of, such
party in respect of any Transaction Document. 
  
 (b) The
Transaction Parties and any and all others who are now or may become liable for all or any part of the obligations of the Transaction Parties under this Insurance Agreement agree to be bound by this Insurance Agreement and (i) to the extent
permitted by law, waive and renounce any and all redemption and exemption rights and the benefit of all valuation and appraisement privileges against the indebtedness and obligations evidenced by any Transaction Document or by any extension or
renewal thereof; (ii) waive presentment and demand for payment, notices of nonpayment and of dishonor, protest of dishonor and notice of protest; (iii) waive all notices in connection with the delivery and acceptance hereof and all other 

  

 25 

 
notices in connection with the performance, default or enforcement of any payment hereunder, except as required by the Transaction Documents; (iv) waive all
rights of abatement, diminution, postponement or deduction, all defenses, other than payment, and all rights of setoff or recoupment arising out of any breach under any of the Transaction Documents, by any party thereto or any beneficiary thereof,
or out of any obligation at any time owing to any of the Transaction Parties; (v) agree that their liabilities hereunder shall be unconditional and without regard to any setoff, counterclaim or the liability of any other Persons for the payment
hereof; (vi) agree that any consent, waiver or forbearance hereunder with respect to an event shall operate only for such event and not for any subsequent event; (vii) consent to any and all extensions of time that may be granted by the Insurer with
respect to any payment hereunder or other provisions hereof and to the release of any security at any time given for any payment hereunder, or any part thereof, with or without substitution, and to the release of any Person or entity liable for any
such payment; and (viii) consent to the addition of any and all other makers, endorsers, guarantors and other obligors for any payment hereunder, and to the acceptance of any and all other security for any payment hereunder, and agree that the
addition of any such obligors or security shall not affect the liability of the parties hereto for any payment hereunder. 
  
 (c) Nothing herein shall be construed as prohibiting any party hereto from pursuing any rights or remedies it may have against any Person in a separate
legal proceeding. 
  
 Section 4.4 Assignments; Reinsurance;
Third-Party Rights. (a) This Insurance Agreement shall be a continuing obligation of the parties hereto and shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. None of the
Transaction Parties may assign its rights under this Insurance Agreement, or delegate any of its duties hereunder, without the prior written consent of the Insurer. Any assignments made in violation of this Insurance Agreement shall be null and
void. 
  
 (b) The Insurer shall have the right to give
participations in its rights under this Insurance Agreement and to enter into contracts of reinsurance with respect to the Ambac Policy upon such terms and conditions as the Insurer may in its discretion determine; provided, however,
that no such participation or reinsurance agreement or arrangement shall relieve the Insurer of any of its obligations hereunder or under the Ambac Policy, and provided, further, that any reinsurer or participant will not have any
rights against the Transaction Parties or the Holders and that none of the Transaction Parties or the Holders shall have any obligation to have any communication or relationship with any reinsurer or participant in order to enforce the obligations
of the Insurer hereunder and under the Ambac Policy. 
  
 (c) The
Insurer shall be entitled to assign or pledge to any bank, other lender or reinsurer providing liquidity or credit with respect to the Transaction or the obligations of the Insurer in connection therewith, any rights of the Insurer under the
Transaction Documents or with respect to any real or personal property or other interests pledged to the Insurer or in which the Insurer has a security interest, in connection with the Transaction, subject in each case to the liens granted pursuant
to the Transaction Documents; provided that no such bank or other lender shall thereby obtain any direct right against Transaction Parties or the Holders, and further, provided; that no such assignment or pledge shall give any
assignee the right to exercise any discretionary authority that the Transaction Documents provide shall be exercisable by the Insurer or relieve the Insurer of any of its obligations hereunder or under the Ambac Policy. 
  

 26 

 (d) Except as provided herein with respect to participants and reinsurers, nothing in this Insurance
Agreement shall confer any right, remedy or claim, express or implied, upon any Person not a party hereto, including any Holders, other than the rights of the Insurer against the Transaction Parties and all the terms, covenants, conditions, promises
and agreements contained herein shall be for the sole and exclusive benefit of the parties hereto and their successors and permitted assigns. Neither the Indenture Trustee nor any Holders shall have any right to payment from any Premiums paid or
payable hereunder or under the Indenture or from any amounts paid by the Issuer or UACC pursuant to Sections 3.2, 3.3 or 3.4 hereof. 
  
 Section 4.5 Liability of the Insurer. Neither the Insurer nor any of its officers, directors or employees shall be liable or responsible for: (a)
the use that may be made of the Ambac Policy by the Indenture Trustee or any other party or for any acts or omissions of the Indenture Trustee or any other party in connection therewith; or (b) the validity, sufficiency, accuracy or genuineness of
documents delivered to the Insurer in connection with any claim under the Ambac Policy, or of any signatures thereon, even if such documents or signatures should in fact prove to be in any or all respects invalid, insufficient, fraudulent or forged
(unless the Insurer shall have actual knowledge thereof). In furtherance and not in limitation of the foregoing, the Insurer may accept documents that appear on their face to be in order, without responsibility for further investigation. 

 
 Section 4.6 Rights and Remedies. Each party (other than the
Indenture Trustee) to this Insurance Agreement has acknowledged and agreed to and hereby confirms its acknowledgement and agreement to, and the Indenture Trustee has acknowledged and hereby confirms its acknowledgement of, the collateral sale and
assignment by UACC to the Transferor, by the Transferor to the Seller, by the Seller to the Issuer, and each party to this Insurance Agreement has acknowledged and agreed to and hereby confirms its acknowledgement and agreement to the pledge by the
Issuer to the Indenture Trustee, of all of its right, title and interest in, to and under the Trust Estate, and the Transaction Documents and all of the Issuer’s rights, remedies, powers and privileges and all claims of the Issuer, the Seller
or the Transferor, as the case may be, against UACC, of the Issuer or the Seller, as the case may be, against the Transferor and of the Issuer against the Seller, under or with respect to the Transaction Documents (whether arising pursuant to the
terms thereof or otherwise available at law or in equity), including without limitation (whether or not any of a Default or Event of Default under the Indenture, an Event of Default hereunder, a Servicer Termination Event or a Trigger Event has
occurred and is continuing) (i) the right of the Issuer at any time to enforce the Transaction Documents against the Servicer, the Transferor, the Seller or UACC and the obligations of the Servicer, the Seller, the Transferor and UACC thereunder and
(ii) the right at any time to give or withhold any and all consents, requests, notices, directions, approvals, demands, extensions or waivers under or with respect to any Transaction Document or the obligations in respect of the Issuer, the
Servicer, the Transferor, the Seller or UACC thereunder, all of which rights, remedies, powers, privileges and claims may, notwithstanding any provision to the contrary by any of the Transaction Documents, be exercised and/or enforced by the
Indenture Trustee in lieu of and in the place and stead of the Transferor and the Issuer to the same extent as the Transferor or the Issuer would otherwise do, and except to the extent a Transaction Document provides that the Insurer shall not have
such a right upon an Insurer Default that has occurred and is continuing, neither the Transferor nor the Issuer may exercise any of the foregoing rights without the prior written consent of the Insurer. Each party hereto further acknowledges and
agrees that, unless an 

  

 27 

 
Insurer Default has occurred and is continuing, the Indenture Trustee will take or refrain from taking any action, and exercise or refrain from exercising
any rights under the Transaction Documents in its capacity as Indenture Trustee pursuant to the written direction of the Insurer; provided, however, that the obligations of the Indenture Trustee to take or refrain from taking, or to
exercise or refrain from exercising, any such action or rights shall not apply to routine administrative tasks required to be performed by the Indenture Trustee pursuant to the Transaction Documents and shall be limited to those actions and rights
that can be exercised or taken (or not exercised or taken, as the case may be) in full compliance with the provisions of the Transaction Documents and with applicable law. 
  
 ARTICLE V 
  
 DEFAULTS AND REMEDIES 
  
 Section 5.1 Defaults. The occurrence of any of the following events shall constitute an “Event of Default” hereunder: 

 
 (a) Any representation or warranty made by any of the Transaction Parties
hereunder or under the Transaction Documents, or in any certificate furnished hereunder or under the Transaction Documents, prove to be untrue or misleading in any material respect; provided, however, that if such Transaction Party
effectively cures any such defect in any representation or warranty under any Transaction Document or certificate or report furnished under any Transaction Document, within the time period specified in the related Transaction Document as the cure
period therefor, such defect shall not in and of itself constitute an Event of Default; 
  
 (b) (i) Any Transaction Party fails to pay or deposit when due any amount required to be paid or deposited by it hereunder or under any other Transaction Document and such failure has continued for a period of at
least two (2) Business Days or, if so specified in the applicable Transaction Document, the applicable grace period set forth herein, or (ii) a legislative body has enacted any law that declares or a court of competent jurisdiction finds or rules
that this Insurance Agreement or any other Transaction Document is not valid and binding on the Transaction Parties hereto or thereto; 
  
 (c) The occurrence and continuance of an Event of Default under the Indenture or Servicer Termination Event under the Sale and Servicing Agreement;

  
 (d) Any failure on the part of any Transaction Party duly to
observe or perform in any material respect any other of the covenants or agreements on the part of such Transaction Party contained in this Insurance Agreement or in any other Transaction Document which continues unremedied beyond any cure period
provided therein, or, in the case of this Insurance Agreement, for a period of 30 days after the earlier of the date on which written notice of such failure, requiring the same to be remedied, has been given to UACC by the Insurer (with a copy to
the Indenture Trustee) or by the Indenture Trustee (with a copy to the Insurer), or a Responsible Officer of such Transaction Party has actual knowledge thereof; 
  

 28 

 (e) The entry of a decree or order by a court or agency or supervisory authority having jurisdiction in
the premises for appointment of a conservator, receiver or liquidator or similar official for any Transaction Party which is a party to any Transaction Document in any bankruptcy, insolvency, readjustment of debt, marshaling of assets and
liabilities or similar proceedings or for the winding up or liquidation of its respective affairs, and the continuance of any such decree or order unstayed and in effect for a period of 30 consecutive days; 
  
 (f) The consent by any Transaction Party to the appointment of a conservator
or receiver or liquidator or similar official in any bankruptcy, insolvency, readjustment of debt, marshaling of assets and liabilities, or similar proceedings of or relating to such Transaction Party or relating to all or substantially all of its
respective property; or any such Transaction Party admits in writing its inability to pay its debts generally as they become due, files a petition to take advantage of any applicable bankruptcy, insolvency or reorganization statute, make an
assignment for the benefit of its creditors or voluntarily suspends payment of its obligations; 
  
 (g) Ray Thousand is not the Chief Executive Officer of United PanAm Financial Corporation, and the replacement Chief Executive Officer has not been
approved by the Insurer; 
  
 (h) The shadow rating provided by
S&P or Moody’s shall fall below “BBB” or “Baa2,” respectively; 
  
 (i) Failure by the Servicer to (x) deliver the Servicer’s Certificate by the Determination Date, (y) to deposit to the Collection Account any amount required to be deposited therein or (z) to purchase any
Receivable required to be purchased by it in accordance with the Sale and Servicing Agreement in the case of any of (x), (y) or (z), after the earlier to occur of (1) written notice of such failure having been received by the Servicer from the
Indenture Trustee, the Issuer, the Insurer or the Majority Noteholders; or (2) discovery of such failure by an officer of the Servicer; 
  
 (j) A claim is made under the Policy; 
  
 (k) There is a Change in Control; 
  
 (l) UACC changes its credit and collection policy with respect to the Receivables without the prior written consent of the Insurer; 
  
 (m) The Issuer becoming taxable as an association or a publicly traded
partnership taxable as a corporation for federal or state tax purposes; 
  
 (n) A Level 4 Trigger Event shall have occurred; 
  
 (o)
The Servicer realizes a net loss as determined in accordance with generally accepted accounting principles in each of two consecutive fiscal quarters; 
  
 (p) A final, non-appealable judgment shall be entered against, or settlements by any of the Transaction Parties by a court of competent jurisdiction
assessing monetary damages in excess of $10 million and, in the case of a judgment, such judgment shall not have been discharged or stayed within 60 days; 
  

 29 

 (q) Except as permitted by the Basic Documents, UPFC, the Depositor or the Servicer shall make any
assignment of any of its rights or obligations under the Basic Documents or any attempt to make such an assignment without the express written consent of the Insurer; or 
  
 (r) UPFC or any of their affiliates or subsidiaries is in default under any indebtedness having an outstanding principal
amount of $1 million or more. 
  
 Section 5.2 Remedies; No
Remedy Exclusive. (a) Upon the occurrence of an Event of Default hereunder, the Insurer may take whatever action at law or in equity as may appear necessary or desirable in its judgment to collect the amounts, if any, then due under this
Insurance Agreement or any other Transaction Document or to enforce performance and observance of any obligation, agreement or covenant of the Transaction Parties under this Insurance Agreement or any other Transaction Document, either in its own
capacity or as Controlling Party. 
  
 (b) Unless otherwise
expressly provided, no remedy herein conferred or reserved is intended to be exclusive of any other available remedy, but each remedy shall be cumulative and shall be in addition to other remedies given under this Insurance Agreement or any other
Transaction Document, or existing at law or in equity. No delay or omission to exercise any right or power accruing under this Insurance Agreement or any other Transaction Document upon the happening of any event set forth in Section 5.1 shall
impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Insurer to exercise any remedy reserved to
the Insurer in this Article, it shall not be necessary to give any notice, other than such notice as may be required by this Article. 
  
 (c) Each party to this Insurance Agreement hereby agrees that, in addition to any other rights or remedies existing in its favor, it shall be entitled to
specific performance and/or injunctive relief in order to enforce any of its rights or any obligation owed to it under the Transaction Documents. 
  
 Section 5.3 Waivers. (a) No failure by the Insurer to exercise, and no delay by the Insurer in exercising, any right hereunder shall operate as a
waiver thereof. The exercise by the Insurer of any right hereunder shall not preclude the exercise of any other right, and the remedies provided herein to the Insurer are declared in every case to be cumulative and not exclusive of any remedies
provided by law or equity. 
  
 (b) The Insurer shall have the
right, to be exercised in its complete discretion, to waive any Event of Default hereunder, by a writing setting forth the terms, conditions and extent of such waiver signed by the Insurer and delivered to UACC and the Indenture Trustee. Unless such
writing expressly provides to the contrary, any waiver so granted shall extend only to the specific event or occurrence which gave rise to the Event of Default so waived and not to any other similar event or occurrence which occurs subsequent to the
date of such waiver. 
  

 30 

 ARTICLE VI 
  

MISCELLANEOUS 
  
 Section 6.1 Amendments, Etc. This Insurance Agreement may be amended, modified, supplemented or terminated only by written instrument or written
instruments signed by the parties hereto. No consent of any reinsurer or participant contracted with by the Insurer pursuant to Section 4.4(b) hereof shall be required for any amendment, modification, supplement or termination hereof. UACC agrees to
provide a copy of any amendment to this Insurance Agreement promptly to the Rating Agencies. No act or course of dealing shall be deemed to constitute an amendment, modification, supplement or termination hereof. Unless an Insurer Event of Default
has occurred and is continuing, the other Transaction Documents may be amended, modified or supplemented only with the prior written consent of the Insurer and any amendment, modification or supplement without such consent shall be null and void and
of no force and effect. 
  
 Section 6.2 Notices. All
demands, notices and other communications to be given hereunder shall be in writing (except as otherwise specifically provided herein) and shall be (i) mailed by prepaid registered or certified mail, return receipt requested, or (ii) personally
delivered by messenger or overnight courier (with confirmation of receipt) and in either case telecopied to the recipient as follows: 
  
 (a) To the Insurer: 
  

			
	 Ambac Assurance Corporation
	  	 
	 One State Street Plaza
	  	 
	 New York, New York 10004
	  	 
	 Attention: Structured Finance Department – ABS

	 Telecopy No.: 212-208-3547
	  	 
	 Confirmation: 212-668-0340
	  	 
	 with a copy to the attention of:
	  	Michael Babick, Vice President
	 	  	Telecopy No.: 212-363-1459
	 	  	Confirmation: 212-208-3407

  
 (in each case in
which notice or other communication to the Insurer refers to a Servicer Termination Event, an Event of Default hereunder, a Default or Event of Default under the Indenture or a Trigger Event, a claim on the Ambac Policy or any event with respect to
which failure on the part of the Insurer to respond shall be deemed to constitute consent or acceptance, then a copy of such notice or other communication shall also be sent to the attention of the general counsel of each of the Insurer and the
Indenture Trustee and shall be marked to indicate “URGENT MATERIAL ENCLOSED.”) 
  
 (b) To UACC: 
  

 31 

 United Auto Credit Corporation 
 3990 Westerly Place, Suite 200 
 Newport
Beach, California 92660 
 Attention: Garland Koch, CFO 
 Telephone: 949-224-1917 
 Facsimile: 949-224-1910 
  
 (c) To the Transferor: 
  
 UPFC Auto Receivables Corp. 
 3990 Westerly Place, Suite 200 
 Newport
Beach, California 92660 
 Attention: Garland Koch, CFO 
 Telephone: 949-224-1917 
 Facsimile: 949-224-1910 
  
 (d) To the Seller: 
  
 ACE Securities Corp. 
 6525 Morrison Boulevard 
 Suite 318

 Charlotte, North Carolina 28211 
 Telephone: 704-365-0569 
  
 (e) To the Issuer:

  

			
	 UPFC Auto Receivables Trust 2004-A

	 in care of:
	  	 Wells Fargo Delaware Trust Company,
 as Owner
Trustee
 919 N. Market Street
 Suite 700
 Wilmington, Delaware 19801
 Attention: Corporate Trust Services
 Telephone: (302) 575-2004
 Facsimile: (302) 575-2006

		
	 with a copy to the attention of:
	  	 United Auto Credit Corporation
 3990 Westerly Place,
Suite 200
 Newport Beach, California 92660
 Attention: Garland
Koch, CFO
 Telephone: 949-224-1917
 Facsimile:
949-224-1910

  
 (f) To the Indenture
Trustee: 
  
 Deutsche Bank Trust Company Americas 
 Corporate Trust and Agency Services 
  

 32 

 60 Wall Street, 26th Floor New 
 York, NY 10005 
 Attention: Structured Finance
Services 
 Phone: (212) 250-4772 
 Facsimile: (212) 797-8606 
  
 A party may specify an additional or
different address or addresses by writing mailed or delivered to the other parties as aforesaid. All such notices and other communications shall be effective upon receipt. 
  
 Section 6.3 Severability. In the event that any provision of this Insurance Agreement is held invalid or
unenforceable by any court of competent jurisdiction, the parties hereto agree that such holding shall not invalidate or render unenforceable any other provision hereof. The parties hereto further agree that the holding by any court of competent
jurisdiction that any remedy pursued by any party hereto is unavailable or unenforceable shall not affect in any way the ability of such party to pursue any other remedy available to it. 
  
 Section 6.4 Governing Law. This Insurance Agreement shall be governed by and construed in accordance with the laws of
the State of New York without regard to conflicts of laws provisions. 
  
 Section 6.5 Consent to Jurisdiction. (a) THE PARTIES HERETO HEREBY IRREVOCABLY SUBMIT TO THE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND ANY COURT IN THE STATE OF NEW YORK LOCATED IN THE
CITY AND COUNTY OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION, SUIT OR PROCEEDING BROUGHT AGAINST IT AND TO OR IN CONNECTION WITH ANY OF THE TRANSACTION DOCUMENTS OR THE TRANSACTION OR FOR RECOGNITION OR ENFORCEMENT OF ANY
JUDGMENT RELATING THERETO, AND THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREE THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING SHALL BE HEARD OR DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE EXTENT PERMITTED BY LAW,
IN SUCH FEDERAL COURT. THE PARTIES AGREE THAT A FINAL NONAPPEALABLE JUDGMENT IN ANY SUCH ACTION, SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. TO THE
EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES HEREBY WAIVE AND AGREE NOT TO ASSERT BY WAY OF MOTION, AS A DEFENSE OR OTHERWISE IN ANY SUCH SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH COURTS,
THAT THE SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, THAT THE VENUE OF THE SUIT, ACTION OR PROCEEDING IS IMPROPER OR THAT THE RELATED DOCUMENTS OR THE SUBJECT MATTER THEREOF MAY NOT BE LITIGATED IN OR BY SUCH COURTS. 

 

 33 

 (b) To the extent permitted by applicable law, the parties shall not seek and hereby waive the right to
any review of the judgment of any such court by any court of any other nation or jurisdiction which may be called upon to grant an enforcement of such judgment. 
  

(c) Service on any party hereto may be made by mailing or delivering copies of the summons and complaint and other process which may be served in any
suit, action or proceeding to such party at its address listed in Section 6.2 herein. Such address may be changed by the applicable party or parties by written notice to each of the other parties hereto. 
  
 (d) Nothing contained in this Insurance Agreement shall limit or affect any
party’s right to serve process in any other manner permitted by law or to start legal proceedings relating to any of the Transaction Documents against any other party or its properties in the courts of any jurisdiction. 
  
 Section 6.6 Consent of the Insurer. In the event that the consent of
the Insurer is required under any of the Transaction Documents, the determination whether to grant or withhold such consent shall be made by the Insurer in writing and in its sole discretion except to the extent such consent of the Insurer pursuant
to the terms of the applicable Transaction Document may not be unreasonably withheld, and without any implied duty towards any other Person. 
  
 Section 6.7 Counterparts. This Insurance Agreement may be executed in counterparts by the parties hereto, and all such counterparts shall
constitute one and the same instrument. 
  
 Section 6.8
Headings. The headings of Articles and Sections and the Table of Contents contained in this Insurance Agreement are provided for convenience only. They form no part of this Insurance Agreement and shall not affect its construction or
interpretation. 
  
 Section 6.9 Trial by Jury Waived. Each
party hereby waives, to the fullest extent permitted by law, any right to a trial by jury in respect of any litigation arising directly or indirectly out of, under or in connection with any of the Transaction Documents or any of the transactions
contemplated thereunder. Each party hereto (a) certifies that no representative, agent or attorney of any party hereto has represented, expressly or otherwise, that it would not, in the event of litigation, seek to enforce the foregoing waiver and
(b) acknowledges that it has been induced to enter into the Transaction Documents to which it is a party by, among other things, this waiver. 
  
 Section 6.10 Limited Liability. No recourse under any Transaction Document shall be had against, and no personal liability shall attach to, any
officer, employee, director, affiliate or shareholder of the Insurer or any other party hereto, as such, by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute or otherwise in respect of any of the
Transaction Documents (including the Class A Notes and the Ambac Policy), it being expressly agreed and understood that each Transaction Document is solely a corporate obligation of each party hereto, and that any and all personal liability, either
at common law or in equity, or by statute or constitution, of every such officer, employee, director, affiliate or shareholder for breaches of any party hereto of any obligations under any Transaction 

  

 34 

 
Document is hereby expressly waived as a condition of and in consideration for the execution and delivery of this Insurance Agreement. 
  
 Section 6.11 Entire Agreement; Facsimile Signatures. This Insurance
Agreement, the Fee Letter and the Ambac Policy set forth the entire agreement between the parties with respect to the subject matter hereof and thereof, and supersede and replace any agreement or understanding that may have existed between the
parties prior to the date hereof in respect of such subject matter. Execution and delivery of this Insurance Agreement by facsimile signature shall constitute execution and delivery of this Insurance Agreement for all purposes hereof with the same
force and effect as execution and delivery of a manually signed copy hereof. 
  
 Section 6.12 Indenture Trustee. Deutsche Bank Trust Company Americas, as the Indenture Trustee, Trust Collateral Agent and Backup Servicer hereby acknowledges and agrees to perform all its obligations and
duties pursuant to the Transaction Documents to which it is a party thereto. 
  
 Section 6.13 Third Party Beneficiary. Subject to the provisions of the Transaction Documents, each of the parties hereto agrees that the Insurer shall have all rights of an intended third party beneficiary in
respect of each of the Transaction Documents, including the right to enforce the respective obligations of the parties thereunder. 
  
 Section 6.14 No Proceedings. Each of the parties hereto agrees that it will not institute against the Issuer or the Transferor any involuntary
proceeding or otherwise institute any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding or other proceeding under any federal or state bankruptcy or similar law until the date which is one year and one day or, if longer,
the then applicable preference period plus one day, since the last day on which any Class A Notes shall have been outstanding and all amounts payable to the Insurer hereunder shall have been paid in full. 
  
 Section 6.15 Limitation of Owner Trustee Liability. It is expressly
understood and agreed by the parties hereto that (a) this document is executed and delivered by Wells Fargo Delaware Trust Company, not individually or personally, but solely as Owner Trustee, in the exercise of the powers and authority conferred
and vested in it, pursuant to the Trust Agreement for UPFC Auto Receivables Trust 2004-A, (b) each of the representations, undertakings and agreements herein made on the part of the Issuer is made and intended not as personal representations,
undertakings and agreements by Wells Fargo Delaware Trust Company but is made and intended for the purpose for binding only the Issuer, (c) nothing herein contained shall be construed as creating any liability on Wells Fargo Delaware Trust Company,
individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties hereto and by any person claiming by, through or under the parties hereto, and (d)
under no circumstances shall Wells Fargo Delaware Trust Company be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation, representation, warranty or covenant made or
undertaken by the Issuer under this Agreement or any other related documents. 
  

 35 

 Section 6.16 Limitation of Indenture Trustee, Trust Collateral Agent and Backup Servicer
Liability. In no event shall the Indenture Trustee, the Trust Collateral Agent and the Backup Servicer be liable for any indirect, special, punitive or consequential loss or damage of any kind whatsoever, including but not limited to, lost
profits, even if the Indenture Trustee, the Trust Collateral Agent or the Backup Servicer has been advised of such loss or damage and regardless of the form of action. 
  
 In no event shall the Indenture Trustee, the Trust Collateral Agent and the Backup Servicer be liable for any failure or
delay in the performance of its obligations hereunder because of circumstances beyond its control, including but not limited to, acts of God, flood, war (whether declared or undeclared), terrorism, fire, riot, embargo, government action, including
any laws, ordinances, regulations, governmental action or the like which delay, restrict or prohibit the providing of the services contemplated by this Insurance Agreement. 
  
 ANY PERSON WHO KNOWINGLY AND WITH INTENT TO DEFRAUD ANY INSURANCE COMPANY OR OTHER PERSON FILES AN APPLICATION FOR
INSURANCE OR STATEMENT OF CLAIM CONTAINING ANY MATERIALLY FALSE INFORMATION, OR CONCEALS FOR THE PURPOSE OF MISLEADING, INFORMATION CONCERNING ANY FACT MATERIAL THERETO, COMMITS A FRAUDULENT INSURANCE ACT, WHICH IS A CRIME AND SHALL ALSO BE SUBJECT
TO A CIVIL PENALTY NOT TO EXCEED FIVE THOUSAND DOLLARS AND THE STATED VALUE OF THE CLAIM FOR EACH SUCH VIOLATION. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 36 

 IN WITNESS WHEREOF, the parties hereto have executed this Insurance Agreement, all as of the day and year
first above mentioned. 
  

					
	 AMBAC ASSURANCE CORPORATION,
as Insurer

		
	 By:
	 	 /s/ Michael Babick

	 Name:
	 	 Michael Babick

	 Title:
	 	 First Vice President

	
	 UPFC AUTO RECEIVABLES TRUST 2004-A,
as Issuer

		
	 By:
	 	 WELLS FARGO DELAWARE TRUST
 COMPANY,
not
in its individual capacity,
but solely as Owner Trustee

		
	 By:
	 	 /s/ Stephen J. Kaba

	 	 	 Name:
	 	 Stephen J. Kaba

	 	 	 Title:
	 	 Executive Vice President

	
	 UPFC AUTO RECEIVABLES CORP., as
Transferor

		
	 By:
	 	 /s/ Garland Koch

	 	 	 Name:
	 	 Garland Koch

	 	 	 Title:
	 	 Chief Financial Officer

	
	 ACE SECURITIES CORP., as Seller

		
	 By:
	 	 /s/ Douglas K. Johnson

	 	 	 Name:
	 	 Douglas K. Johnson

	 	 	 Title:
	 	 President

  

 37 

					
	 UNITED AUTO CREDIT CORPORATION,
as Servicer

		
	 By:
	 	 /s/ Mario Radrigan

	 	 	 Name:
	 	 Mario Radrigan

	 	 	 Title:
	 	 Executive Vice President

	
	 DEUTSCHE BANK TRUST COMPANY
AMERICAS
not in its individual capacity, but solely
as Indenture Trustee, Trust Collateral
Agent and
Backup Servicer

		
	 By:
	 	 /s/ Tara Richards

	 	 	 Name:
	 	 Tara Richards

	 	 	 Title:
	 	 Associate

  

 38 

 EXHIBIT A 
  

FORM OF AMBAC POLICY 
  

 A-1Spread Account Agreement

 EXHIBIT 10.119 
  

  
 SPREAD ACCOUNT AGREEMENT 
  
 among 
  
 UPFC AUTO RECEIVABLES TRUST 2004-A, 
 as Issuer, 
  
 AMBAC ASSURANCE CORPORATION, 
 as Insurer, 
  
 and 
  
 DEUTSCHE BANK TRUST COMPANY AMERICAS, 
 as Trustee, as Trust Collateral Agent and as Collateral Agent 
  
 Dated as of September 22, 2004 
  

 TABLE OF CONTENTS 
  

			
	 	  	Page

		
	ARTICLE I	  	 
		
	DEFINITIONS	  	 
		
	 Section 1.01. Definitions
	  	1
	 Section 1.02. Other Definitional Provisions
	  	4
		
	ARTICLE II	  	 
		
	THE SPREAD ACCOUNT AGREEMENT COLLATERAL	  	 
		
	 Section 2.01. Grant of Security Interest by the Issuer
	  	5
	 Section 2.02. Priority
	  	5
	 Section 2.03. Issuer Remains Liable
	  	6
	 Section 2.04. Delivery and Maintenance of Spread Account Agreement Collateral
	  	6
	 Section 2.05. Termination and Release of Rights
	  	7
	 Section 2.06. Non-Recourse Obligations of Issuer
	  	8
		
	ARTICLE III	  	 
		
	SPREAD ACCOUNT	  	 
		
	 Section 3.01. Establishment of Spread Account; Initial Deposit into Spread Account; Maintenance of Spread Account
	  	8
	 Section 3.02. Investments
	  	9
	 Section 3.03. Payments; Priority of Payments
	  	10
	 Section 3.04. General Provisions Regarding Spread Account
	  	11
	 Section 3.05. Reports by the Collateral Agent
	  	12
		
	ARTICLE IV	  	 
		
	THE COLLATERAL AGENT	  	 
		
	 Section 4.01. Appointment and Powers
	  	12
	 Section 4.02. Performance of Duties
	  	12
	 Section 4.03. Limitation on Liability
	  	13
	 Section 4.04. Reliance upon Documents
	  	13
	 Section 4.05. Successor Collateral Agent
	  	13
	 Section 4.06. Indemnification
	  	15
	 Section 4.07. Compensation and Reimbursement
	  	15
	 Section 4.08. Representations and Warranties of the Collateral Agent
	  	15
	 Section 4.09. Waiver of Setoffs
	  	16
	 Section 4.10. Control by the Controlling Party
	  	16
	 Section 4.11. Limitation of Collateral Agent Liability
	  	16

  

			
	ARTICLE V	  	 
		
	COVENANTS OF THE ISSUER	  	 
		
	 Section 5.01. Preservation of Spread Account Agreement Collateral
	  	17
	 Section 5.02. Notices
	  	17
	 Section 5.03. Waiver of Stay or Extension Laws; Marshalling of Assets
	  	17
	 Section 5.04. Noninterference, etc.
	  	17
	 Section 5.05. Issuer Changes
	  	18
		
	ARTICLE VI	  	 
		
	CONTROLLING PARTY; INTERCREDITOR PROVISIONS	  	 
		
	 Section 6.01. Appointment of Controlling Party
	  	18
	 Section 6.02. Controlling Party’s Authority
	  	18
	 Section 6.03. Rights of Issuer Secured Parties
	  	19
	 Section 6.04. Degree of Care
	  	19
		
	ARTICLE VII	  	 
		
	REMEDIES UPON DEFAULT	  	 
		
	 Section 7.01. Remedies upon a Default
	  	20
	 Section 7.02. Waiver of Default
	  	20
	 Section 7.03. Restoration of Rights and Remedies
	  	20
	 Section 7.04. No Remedy Exclusive
	  	20
		
	ARTICLE VIII	  	 
		
	MISCELLANEOUS	  	 
		
	 Section 8.01. Further Assurances
	  	21
	 Section 8.02. Waiver
	  	21
	 Section 8.03. Amendments; Waivers
	  	21
	 Section 8.04. Severability
	  	21
	 Section 8.05. Nonpetition Covenant
	  	22
	 Section 8.06. Notices
	  	22
	 Section 8.07. Term of this Agreement
	  	24
	 Section 8.08. Assignments; Third-Party Rights; Reinsurance
	  	24
	 Section 8.09. Consent of Controlling Party
	  	25
	 Section 8.10. Consents to Jurisdiction
	  	25
	 Section 8.11. Determination of Adverse Effect
	  	25
	 Section 8.12. Headings
	  	25
	 Section 8.13. TRIAL BY JURY WAIVED
	  	25
	 Section 8.14. GOVERNING LAW
	  	26
	 Section 8.15. Counterparts
	  	26
	 Section 8.16. Limitation of Liability
	  	26

  

 ii 

 SPREAD ACCOUNT AGREEMENT 
  
 This SPREAD ACCOUNT AGREEMENT, dated as of September 22, 2004 (this “Agreement”), is among UPFC AUTO
RECEIVABLES TRUST 2004-A, as issuer (the “Issuer”), AMBAC ASSURANCE CORPORATION, as insurer (the “Insurer”), and DEUTSCHE BANK TRUST COMPANY AMERICAS, as trustee (in such capacity, the “Trustee”),
as trust collateral agent (in such capacity the “Trust Collateral Agent”) and as collateral agent (in such capacity, the “Collateral Agent”). 
  
 RECITALS 
  
 WHEREAS, the Issuer was formed pursuant to the Trust Agreement dated as of July 20], 2004 as amended and restated as of August 31, 2004 (as amended from
time to time, the “Trust Agreement”), between ACE Securities Corp., as seller (the “Seller”), and Wells Fargo Delaware Trust Company, as owner trustee (the “Owner Trustee”). 
  
 WHEREAS, pursuant to a Sale and Servicing Agreement, dated as of August 31,
2004, (the “Sale and Servicing Agreement”) among the Issuer, the Seller, the Servicer, the Trust Collateral Agent, the Custodian and the Backup Servicer, the Seller sold to the Issuer all of its right, title and interest in and to
the Receivables and Other Conveyed Property. 
  
 WHEREAS, pursuant
to the Indenture, dated as of August 31, 2004 (the “Indenture”), among the Issuer, the Trustee and the Trust Collateral Agent, the Issuer pledged all of its right, title and interest in and to the Collateral to the Trust Collateral
Agent on behalf of the Issuer Secured Parties. 
  
 WHEREAS, the
Issuer requested that the Insurer issue the Note Policy to the Trustee to guarantee payment of the Insured Payments on each Distribution Date, in respect of the Notes. 
  
 WHEREAS, in consideration of the issuance of the Note Policy, the Issuer and the Servicer have agreed that the Insurer shall
have certain rights as Controlling Party to the extent set forth in the Basic Documents, with respect to the Collateral. 
  
 In consideration of the premises, and for other good and valuable consideration, the adequacy, receipt and sufficiency of which are hereby acknowledged
the parties hereto agree as follows: 
  
 ARTICLE I

  
 DEFINITIONS 
  
 Section 1.01. Definitions. Unless otherwise defined in this
Agreement, the following terms shall have the following meanings: 
  
 “Collateral Agent” means, initially Deutsche Bank Trust Company Americas, in its capacity as collateral agent on behalf of the Issuer Secured Parties, including its successors in interest, until a successor Person shall
have become the Collateral Agent pursuant to Section 4.05 and thereafter “Collateral Agent” shall mean such successor Person. 
  

 “Collateral Agent Fee” means as designated in the fee letter between Collateral Agent
and UACC. 
  
 “Controlling Party” means
the Person designated as the Controlling Party at such time pursuant to Section 6.01. 
  
 “Cumulative Net Loss” means the positive difference between (i) the sum of (A) the aggregate Principal Balance of all Liquidated Receivables plus (B) aggregate Cram Down Losses minus (ii)
Liquidation Proceeds received with respect to the Receivables described in clause (i). 
  
 “Cumulative Net Loss Ratio” means the ratio, expressed as a percentage, computed by dividing the Cumulative Net Losses by the Original Pool Balance. 
  
 “Default” means, (i) if the Insurer is then the Controlling
Party, any Insurance Agreement Event of Default or an Event of Default under the Indenture and (ii) if the Trustee is then the Controlling Party, any Event of Default under Section 5.1 of the Indenture. 
  
 “Delinquency Ratio” means, the ratio (expressed as a
percentage) computed by dividing: (a) the aggregate Principal Balance of all Receivables which were Delinquent Receivables as of the close of business on the last day of the related Collection Period by (b) the sum of the aggregate Principal Balance
of all Receivables as of the close of business on the first day of the related Collection Period. 
  
 “Delinquent Receivable” means a Receivable with respect to which a scheduled payment is more than sixty (60) days past due
(excluding (i) Receivables which the Servicer has repossessed the related Financed Vehicle and (ii) Receivables which have become Liquidated Receivables). 
  
 “Final Termination Date” means the date that is the later of (i) the Insurer Termination Date and (ii) the Trustee Termination Date.

  
 “Insured Payments” has the meaning set forth
in the Note Policy. 
  
 “Insurer Termination
Date” means the date which is the latest of (i) the date of the expiration of the Note Policy and the cancellation and return thereof to the Insurer, (ii) the date on which the Insurer shall have received payment and performance in full of
all Insurer Issuer Secured Obligations and (iii) the latest date on which any payment referred to above could be avoided as a preference or otherwise under the United States Bankruptcy Code or any other similar federal or state law relating to
insolvency, bankruptcy, rehabilitation, liquidation or reorganization, as specified in an Opinion of Counsel delivered to the Collateral Agent, the Insurer and the Trustee. 
  
 “Issuer” means UPFC Auto Receivables Trust 2004-A. 
  
 “Level 1 Cumulative Net Loss Test” means, for any
Distribution Date specified below, the Cumulative Net Loss Ratio for the related Collection Period is greater than the percentage set forth opposite such Distribution Date in Schedule A hereto. 
  

 2 

 “Level 1 Delinquency Test” means, for any Distribution Date, the arithmetic average of
the monthly Delinquency Ratios for the three immediately preceding Collection Periods is greater than the percentage set forth opposite such Distribution Date in Schedule A hereto. 
  
 “Level 1 Trigger Event” means any violation of the Level 1 Cumulative Net Loss Test or the Level 1
Delinquency Test. 
  
 “Level 2 Cumulative Net Loss
Test” means, for any Distribution Date specified below, the Cumulative Net Loss Ratio for the related Collection Period is greater than the percentage set forth opposite such Distribution Date in Schedule A hereto. 
  
 “Level 2 Delinquency Test” means, for any Distribution Date,
the arithmetic average of the monthly Delinquency Ratios for the three immediately preceding Collection Periods is greater than the percentage set forth opposite such Distribution Date in Schedule A hereto. 
  
 “Level 2 Trigger Event” means the occurrence of the Level 2
Cumulative Net Loss Test or the Level 2 Delinquency Test. 
  
 “Level 3 Cumulative Net Loss Test” means, for any Distribution Date specified below, the Cumulative Net Loss Ratio for the related Collection Period is greater than the percentage set forth opposite such Distribution Date
in Schedule A hereto. 
  
 “Level 3 Delinquency
Test” means, for any Distribution Date, the arithmetic average of the monthly Delinquency Ratios for the three immediately preceding Collection Periods is greater than the percentage set forth opposite such Distribution Date in Schedule A
hereto. 
  
 “Level 3 Trigger Event” means the
occurrence of the Level 3 Cumulative Net Loss Test or the Level 3 Delinquency Test. 
  
 “Level 4 Cumulative Net Loss Test” means, for any Distribution Date specified below, the Cumulative Net Loss Ratio for the related Collection Period is greater than the percentage set forth opposite
such Distribution Date in Schedule A hereto. 
  
 “Level 4
Delinquency Test” means, for any Distribution Date, the arithmetic average of the monthly Delinquency Ratios for the three immediately preceding Collection Periods is greater than the percentage set forth opposite such Distribution Date in
Schedule A hereto. 
  
 “Level 4 Trigger Event”
means the occurrence of the Level 4 Cumulative Net Loss Test or the Level 4 Delinquency Test. 
  
 “Liquidation Proceeds” means, with respect to a Liquidated Receivable, all amounts realized with respect to such Receivable including (1) proceeds from the disposition of the underlying financed
vehicles; (2) any related insurance proceeds; (3) other monies received from the obligor that are allocable to principal and interest due under the automobile loan, and (4) with respect to a Sold Receivable, the related Sale Amount. 
  
 “Non-Controlling Party” means, at any time, the Issuer
Secured Party that is not the Controlling Party at such time. 
  

 3 

 “Original Pool Balance” means the Pool Balance as of the Cutoff Date. 
  
 “Outstanding Pool Balance” means the Pool Balance as of the
end of the related Collection Period. 
  
 “Requisite
Amount” will equal the Spread Account Initial Deposit on the Closing Date, and thereafter, on each Distribution Date, the Requisite Amount shall be equal to 2.0% of the Original Pool Balance, provided, however, that (i) on
each Distribution Date upon which a Level 1 Trigger Event has occurred and is continuing, and upon each Distribution Date thereafter (unless no Level 1 Trigger Event has occurred for three consecutive months) the Requisite Amount shall be equal to
the greater of (x) 6.0% of the Outstanding Pool Balance or (y) 4.0% of the Original Pool Balance; and (ii) on each Distribution Date upon which a Level 4 Trigger Event has occurred and upon each Distribution Date thereafter, the Requisite Amount
shall be equal to 100% of the Outstanding Pool Balance. 
  
 “Security Interests” means the security interests and Liens in the Spread Account Agreement Collateral granted pursuant to Section 2.01. 
  
 “Seller” means ACE Securities Corp. 
  
 “Spread Account” means the account designated as such, established and maintained pursuant to Article
Three. 
  
 “Spread Account Agreement Collateral”
has the meaning set forth in Section 2.01. 
  
 “Spread
Account Claim Amount” has the meaning set forth in Section 1.1 of the Sale and Servicing Agreement. 
  
 “Trigger Event” means a Level 1 Trigger Event, a Level 2 Trigger Event, a Level 3 Trigger Event or a Level 4 Trigger Event. 

 
 “Trustee Termination Date” means the date which is the
latest of the date on which (i) the Trustee shall have received, as Trustee for the holders of the Notes, payment and performance in full of all Trustee Issuer Secured Obligations and (ii) all payments in respect of the Notes shall have been made
and the Indenture shall have been satisfied and discharged pursuant to the terms of Article IV of the Indenture. 
  
 “UACC” means United Auto Credit Corporation. 
  
 “Uniform Commercial Code” or “UCC” means the Uniform Commercial Code in effect in the relevant jurisdiction, as the same
may be amended from time to time. 
  
 Section 1.02. Other
Definitional Provisions. 
  
 (a) Capitalized
terms used but not otherwise defined herein shall have the meanings set forth in the Sale and Servicing Agreement or the Indenture, as the case may be. 
  

 4 

 (b) The terms “hereof,” “herein” or “hereunder,” unless
otherwise modified by more specific reference, shall refer to this Agreement in its entirety. Unless otherwise indicated in context, the terms “Article,” “Section,” “Appendix,” “Exhibit” or “Annex”
shall refer to an Article or Section of, or Appendix, Exhibit or Annex to, this Agreement. The definition of a term shall include the singular, the plural, the past, the present, the future, the active and the passive forms of such term. 

 
 ARTICLE II 
  
 THE SPREAD ACCOUNT AGREEMENT COLLATERAL 
  
 Section 2.01. Grant of Security Interest by the Issuer. In
order to secure the performance of Issuer Secured Obligations, to the extent provided herein, the Issuer hereby pledges, assigns, grants, transfers and conveys to the Collateral Agent, on behalf of and for the benefit of the Issuer Secured Parties,
a lien on and security interest in (which lien and security interest is intended to be prior to all other Liens), all of its right, title and interest in and to the following (all being collectively referred to herein as the “Spread Account
Agreement Collateral” and constituting Spread Account Agreement Collateral hereunder): 
  
 (a) the Spread Account established pursuant to Section 3.01 hereof, and each other account owned by the Issuer and maintained by the
Collateral Agent and any funds or investments deposited therein (including, without limitation, the Spread Account Initial Deposit related thereto and all additional monies, checks, securities, investments and other documents from time to time held
in or evidencing any such accounts); 
  
 (b) all
of the Issuer’s right, title and interest in and to investments made with proceeds of the property described in clause (a) above, or made with amounts on deposit in the Spread Account; and 
  
 (c) all distributions, revenues, products, substitutions,
benefits, profits and proceeds, in whatever form, of any of the foregoing whether now owned or hereafter acquired. 
  
 Section 2.02. Priority. The Issuer intends the security interests granted hereunder in favor of the Issuer Secured Parties to be prior to
all other Liens in respect of the Spread Account Agreement Collateral, and the Issuer shall take all actions necessary to obtain and maintain, in favor of the Collateral Agent, for the benefit of the Issuer Secured Parties, a first lien on and a
first priority, perfected security interest in the Spread Account Agreement Collateral including, without limitation, the filing of a UCC-1 financing statement relating to the Spread Account Agreement Collateral. Subject to the provisions hereof
specifying the rights and powers of the Collateral Agent at the direction of the Controlling Party from time to time to control certain specified matters relating to the Spread Account Agreement Collateral, each Issuer Secured Party shall have all
of the rights, remedies and recourse with respect to the Spread Account Agreement Collateral afforded a Secured Party under the Uniform Commercial Code, and all other applicable law in addition to, and not in limitation of, the other rights,
remedies and recourse granted to such Issuer Secured Parties by this Agreement or any other law relating to the creation and perfection of liens on, and security interests in, the Spread Account Agreement Collateral. 
  

 5 

 Section 2.03. Issuer Remains Liable. The Security Interests are granted as security only
and shall not (i) transfer or in any way affect or modify, or relieve either the Issuer from, any obligation to perform or satisfy, any term, covenant, condition or agreement to be performed or satisfied by the Issuer under or in connection with
this Agreement, the Insurance Agreement or any other Basic Documents to which it is a party or (ii) impose any obligation on any of the Issuer Secured Parties or the Collateral Agent to perform or observe any such term, covenant, condition or
agreement or impose any liability on any of the Issuer Secured Parties or the Collateral Agent for any act or omission on its part relative thereto or for any breach of any representation or warranty on its part contained therein or made in
connection therewith, except, in each case, to the extent provided herein and in the other Basic Documents. 
  
 Section 2.04. Delivery and Maintenance of Spread Account Agreement Collateral. 
  
 (a) The Collateral Agent agrees to maintain the Spread Account Agreement Collateral received by it (or
evidence thereof, in the case of book-entry securities in the name of the Collateral Agent) and all records and documents relating thereto at the office of the Collateral Agent specified in Section 8.06 or such other address as may be approved by
the Controlling Party. The Collateral Agent shall keep all Spread Account Agreement Collateral and related documentation in its possession separate and apart from all other property that it is holding in its possession and from its own general
assets and shall maintain accurate records pertaining to the Eligible Investments and Spread Account included in the Spread Account Agreement Collateral in such a manner as shall enable the Collateral Agent and the Issuer Secured Parties to verify
the accuracy of such record-keeping. The Collateral Agent’s books and records shall at all times show that the Spread Account Agreement Collateral is held by the Collateral Agent as agent of the Issuer Secured Parties and is not the property of
the Collateral Agent. The Collateral Agent will promptly report to each Issuer Secured Party and the Issuer any failure on its part to hold the Spread Account Agreement Collateral as provided in this Section 2.04(a) and will promptly take
appropriate action to remedy any such failure. 
  
 (b) The Collateral Agent shall permit each of the Issuer Secured Parties, or their respective duly authorized representatives, attorneys, auditors or designees, to inspect the Spread Account Agreement Collateral in the possession of or
otherwise under the control of the Collateral Agent pursuant hereto at such reasonable times during normal business hours as any such Issuer Secured Party may reasonably request upon not less than one Business Day’s prior written notice. The
costs and expenses associated with any such inspection will be paid by the party making such inspection. 
  
 (c) All Spread Account Agreement Collateral shall be transferred to the Collateral Agent on behalf of the Issuer Secured Party in a manner
consistent with the definition of “Delivery” set forth in the Sale and Servicing Agreement. 
  
 (d) Notwithstanding anything to the contrary herein, the Collateral Agent: (i) is and will be acting on behalf of the Issuer Secured
Parties as a securities intermediary under Article Eight of the UCC; (ii) shall establish and maintain the Spread Account for the benefit of the Issuer Secured Parties as a holder of a security interest in the Spread Account Agreement Collateral and
the Spread Account; (iii) shall treat all of the assets in the Spread Account (other than cash) as financial assets under Article Eight of the UCC; (iv) shall not hold, or exercise 

  

 6 

 
control (within the meaning of Article Eight or Nine of the UCC) over, the Spread Account Agreement Collateral and/or the Spread Account for the benefit of
any person or entity other than the Issuer Secured Parties; (v) has received notice of the Issuer Secured Parties’ interest in the assets contained and/or to be contained in the Spread Account; and (vi) shall take instructions only from the
Issuer Secured Party constituting the Controlling Party hereunder (and shall comply with entitlement orders originated by such Issuer Secured Party without any consent of and notwithstanding any alternate direction of the Issuer) with respect to the
Spread Account and/or the Spread Account Agreement Collateral, including, without limitation, all instructions with respect to the acquisition, transfer and disposition of assets in the Spread Account and the proceeds thereof. In accordance with the
choice of law governing this Agreement set forth in Section 8.14 herein, for purposes of Article Eight of the UCC the jurisdiction of the Collateral Agent is deemed to be New York. 
  
 Section 2.05. Termination and Release of Rights. 
  
 (a) On the Insurer Termination Date, the rights, remedies, powers, duties, authority and obligations
conferred upon the Insurer pursuant to this Agreement in respect of the Spread Account Agreement Collateral shall terminate and be of no further force and effect and all rights, remedies, powers, duties, authority and obligations of the Insurer with
respect to such Spread Account Agreement Collateral shall be automatically released; provided that any indemnity provided to or by the Insurer herein shall survive such Insurer Termination Date. If the Insurer is acting as Controlling Party on the
related Insurer Termination Date, the Insurer agrees, at the expense of the Issuer, to execute and deliver such instruments as the successor Controlling Party may reasonably request to effectuate such release, and any such instruments so executed
and delivered shall be fully binding on the Insurer and any Person claiming by, through or under the Insurer. 
  
 (b) On the Trustee Termination Date, the rights, remedies, powers, duties, authority and obligations, if any, conferred upon the Trustee
pursuant to this Agreement in respect of the Spread Account Agreement Collateral shall terminate and be of no further force and effect and all such rights, remedies, powers, duties, authority and obligations of the Trustee with respect to such
Spread Account Agreement Collateral shall be automatically released; provided that any indemnity provided to the Trustee herein shall survive such Trustee Termination Date. If the Trustee is acting as Controlling Party on the related Trustee
Termination Date, the Trustee agrees, at the expense of the Issuer, to execute and deliver such instruments as the Issuer may reasonably request to effectuate such release, and any such instruments so executed and delivered shall be fully binding on
the Trustee. 
  
 (c) On the Final Termination
Date, the rights, remedies, powers, duties, authority and obligations conferred upon the Collateral Agent and each Issuer Secured Party pursuant to this Agreement shall terminate and be of no further force and effect and all rights, remedies,
powers, duties, authority and obligations of the Collateral Agent and each Issuer Secured Party with respect to the Spread Account Agreement Collateral shall be automatically released. On the Final Termination Date, the Collateral Agent agrees, and
each Issuer Secured Party agrees, at the expense of the Issuer, to execute such instruments of release, in recordable form if necessary, in favor of the Issuer as the Issuer may reasonably request, to deliver any Spread Account Agreement Collateral
in its possession to the Issuer, and to otherwise release the 

  

 7 

 
lien of this Agreement and release and deliver to the Issuer the Spread Account Agreement Collateral. 
  
 Section 2.06. Non-Recourse Obligations of Issuer.
Notwithstanding anything herein or in the other Basic Documents to the contrary, the parties hereto agree that the obligations of the Issuer hereunder shall be recourse only to the extent of amounts released to the Issuer pursuant to Section
3.03(b)(ii) and retained by the Issuer in accordance with the next sentence. The Issuer agrees that it shall not declare or make any payment to the Seller or UACC except in accordance with the Basic Documents. Nothing contained herein shall be
deemed to limit the rights of the Noteholders under any other Basic Document. 
  
 ARTICLE III 
  
 SPREAD
ACCOUNT 
  
 Section 3.01. Establishment of Spread Account;
Initial Deposit into Spread Account; Maintenance of Spread Account. 
  
 (a) On or prior to the Closing Date, the Collateral Agent shall establish, at its office or at another depository institution or trust company an Eligible Deposit Account, designated, “Spread
Account—Deutsche Bank Trust Company Americas, as Collateral Agent for Ambac Assurance Corporation and Deutsche Bank Trust Company Americas, as Trustee and Trust Collateral Agent Re: UPFC Auto Receivables Trust 2004-A, Class A Asset-Backed Notes
Series 2004-A” (the “Spread Account”). The Spread Account shall be maintained by the Collateral Agent at all times separate and apart from any other account of UACC, the Seller, the Servicer or the Issuer. The Spread Account
shall be maintained at the same depository institution (which depository institution may be changed from time to time in accordance with this Agreement). If the Spread Account ceases to be an Eligible Deposit Account, the Collateral Agent shall
notify the Controlling Party of such fact and shall establish within five Business Days of such determination, in accordance with Section 3.04(a), a successor Spread Account thereto, which shall be an Eligible Deposit Account, at another depository
institution acceptable to the Controlling Party. 
  
 (b) No withdrawals may be made of funds in the Spread Account except as provided in Section 3.03. Except as specifically provided in this Agreement, funds in the Spread Account shall not be commingled with any other moneys. All moneys
deposited from time to time in the Spread Account and all investments made with such moneys shall be held by the Collateral Agent as part of the Spread Account Agreement Collateral. 
  
 (c) On the Closing Date, Issuer shall provide or cause to be provided to the Collateral Agent for deposit
into the Spread Account an amount equal to the Spread Account Initial Deposit. 
  
 (d) On each Distribution Date, after giving effect to all payments to be made on the related Distribution Date, the Collateral Agent
shall, based solely on the information contained in the Preliminary Servicer’s Certificate delivered with respect to the Determination 

  

 8 

 
Date, cause to be maintained in the Spread Account an amount equal to the Requisite Amount in accordance with Section 5.07 of the Sale and Servicing
Agreement. 
  
 Section 3.02. Investments. 
  
 (a) Funds which may at any time be held in the Spread
Account shall be invested and reinvested by the Collateral Agent, at the written direction (which may include, subject to the provisions hereof, general standing instructions) of the Issuer (unless a Default shall have occurred and be continuing, in
which case at the written direction of the Controlling Party if it so elects) or its designee received by the Collateral Agent by 1:00 p.m. New York City time, on the Business Day prior to the date on which such investment shall be made, in one or
more Eligible Investments in the manner specified in Section 3.02(b) and (c) herein. If no written direction with respect to any portion of the Spread Account is received by the Collateral Agent, the Collateral Agent shall invest such funds
overnight in money market mutual funds described in paragraph (d) of the definition of the term “Eligible Investments,” provided that the Collateral Agent shall not be liable for any loss or absence of income resulting from such
investments. 
  
 (b) Each investment made
pursuant to this Section on any date shall mature not later than the Business Day immediately preceding the Distribution Date next succeeding the day such investment is made or payable on demand, provided that any investment of funds in the Spread
Account maintained with the Collateral Agent in any investment as to which the Collateral Agent is the obligor, if otherwise qualified as an Eligible Investment may mature on the Distribution Date next succeeding the date of such investment.

  
 (c) Subject to the other provisions hereof,
the Collateral Agent shall have sole control over each such investment and the income thereon, and any certificate or other instrument evidencing any such investment, if any, shall be delivered directly to the Collateral Agent or its agent, together
with each document of transfer, if any, necessary to transfer title to such investment to the Collateral Agent in a manner which complies with Section 2.04 hereof and the requirements of the definition of “Eligible Investments.”

  
 (d) If amounts on deposit in the Spread
Account are at any time invested in an Eligible Investment payable on demand, the Collateral Agent shall (i) consistent with any notice required to be given thereunder, demand that payment thereon be made on the last day such Eligible Investment is
permitted to mature under the provisions hereof and (ii) demand payment of all amounts due thereunder promptly upon receipt of written notice from the Controlling Party to the effect that such investment does not constitute an Eligible Investment.

  
 (e) All moneys on deposit in the Spread
Account, together with any deposits or securities in which such moneys may be invested or reinvested, and any gains from such investments, shall constitute Spread Account Agreement Collateral hereunder subject to the Security Interests of the Issuer
Secured Parties. 
  
 (f) Subject to Section 4.03
hereof, the Collateral Agent shall not be liable by reason of any insufficiency in amounts on deposit in the Spread Account resulting from any loss on any Eligible Investment included therein except for losses attributable to the failure of the

  

 9 

 
relevant Deutsche Bank entity, in its commercial capacity, to make payments on Eligible Investments for which it is obligated. All income or loss on
investments of funds in the Spread Account shall be reported by UACC as taxable income or loss. 
  
 Section 3.03. Payments; Priority of Payments. 
  
 (a) On or before the second Business Day prior to each Distribution Date, the Collateral Agent will make the following calculations on the
basis of information (including, without limitation, the amount of any Spread Account Claim Amount (but not including the Requisite Amount) received pursuant to Article IV of the Sale and Servicing Agreement from the Servicer; provided, however,
that if the Collateral Agent receives written notice from the Insurer, the Trustee, the Issuer or the Servicer of the occurrence of a Trigger Event, such notice shall be determinative for the purposes of determining the Requisite Amount: 

 
 (i) determine the amounts to be on deposit in the Spread
Account on such Distribution Date which will be available to satisfy any Spread Account Claim Amount; and 
  
 (ii) determine (A) the amounts, if any, to be paid from the Spread Account with respect to the Spread Account Claim Amount and (B)
whether, following payment from the Spread Account to the Trust Collateral Agent for deposit into the Collection Account, a Spread Account Claim Amount will continue to exist. 
  
 On such Distribution Date, the Collateral Agent shall deliver a certificate to the Trust Collateral Agent and the Insurer
with respect to any Deficiency Notice, stating the amount, if any, to be distributed to the Trust Collateral Agent on that Distribution Date in respect of such Spread Account Claim Amount. 
  
 (b) On each Distribution Date, the Collateral Agent shall
make the following payments from the Spread Account (to the extent of funds available in the Spread Account) in the following order of priority: 
  
 (i) if the Trust Collateral Agent has delivered a Deficiency Notice and if there exists a Spread Account Claim Amount, to the Trust
Collateral Agent for deposit in the Collection Account the amount of such Spread Account Claim Amount; and 
  
 (ii) any funds in the Spread Account in excess of the Requisite Amount, after making the withdrawals therefrom required by clause (i) of
this Section 3.03(b) (to the extent of funds available in excess of the Requisite Amount) and any funds remaining in the Spread Account as of the Distribution Date immediately following the Final Termination Date will be applied by the Collateral
Agent in the following order of priority: 
  
 (A) to the payment of any expenses payable pursuant to Section 4.5 of the Sale and Servicing Agreement to the extent not paid by UACC; 
  

 10 

 (B) to the Trust Collateral Agent for payment to the Trustee, the Trust Collateral
Agent, the Backup Servicer, the Collateral Agent and the Designated Backup Servicer or to any replacement servicer any accrued and unpaid replacement servicer fees, transition costs or additional compensation to the extent not paid by UACC or
pursuant to the Sale and Servicing Agreement; 
  
 (C) to the Trust Collateral Agent for payment to the Insurer, any amounts due and owing to the Insurer that were not paid under clause (v) of Section 5.7(a) of the Sale and Servicing Agreement; 
  
 (D) to the Backup Servicer, any indemnification amounts
payable by the Servicer to the Backup Servicer to the extent not paid by the Servicer; 
  
 (E) to the Owner Trustee to the extent any amounts due and owing to the Owner Trustee under the Transaction Documents were not otherwise
paid; and 
  
 (F) to the holder(s) of the
Certificates, any remaining funds in the Spread Account in excess of the Requisite Amount. 
  
 Section 3.04. General Provisions Regarding Spread Account. 
  
 (a) Promptly upon the establishment (initially or upon any relocation) of the Spread Account hereunder, the Collateral Agent shall advise
the Issuer and each Issuer Secured Party in writing of the name and address of the depository institution or trust company where the Spread Account has been established (if not at Deutsche Bank Trust Company Americas or any successor Collateral
Agent in its commercial banking capacity), the name of the officer of the depository institution who is responsible for overseeing the Spread Account, the account number and the individuals whose names appear on the signature cards for the Spread
Account. The Issuer shall cause each such depository institution or trust company to execute a written agreement, in form and substance reasonably satisfactory to the Controlling Party, waiving, and the Collateral Agent by its execution of this
Agreement hereby waives (except to the extent expressly provided herein), in each case to the extent permitted under applicable law, (i) any banker’s or other statutory or similar Lien, and (ii) any right of set-off or other similar right under
applicable law with respect to the Spread Account and agreeing, and the Collateral Agent by its execution of this Agreement hereby agrees to notify the Issuer and each Issuer Secured Party of any charge or claim against or with respect to such
Spread Account. The Collateral Agent shall give the Issuer and each Issuer Secured Party at least ten Business Days’ prior written notice of any change in the location of the Spread Account or in any related account information. Anything herein
to the contrary notwithstanding, unless otherwise consented to by the Controlling Party in writing, the Collateral Agent shall have no right to change the location of the Spread Account 
  
 (b) Upon the written request of the Controlling Party or the Issuer, the Collateral Agent shall cause, at
the expense of the Issuer, the depository institution at which the 

  

 11 

 
Spread Account is located to forward to the requesting party copies of all monthly account statements for the Spread Account. 
  
 (c) No passbook, certificate of deposit or other similar
instrument evidencing the Spread Account shall be issued, and all contracts, receipts and other papers, if any, governing or evidencing the Spread Account shall be held by the Collateral Agent. 
  
 Section 3.05. Reports by the Collateral Agent. The Collateral
Agent shall report to the Issuer, the Insurer, the Trustee (unless the Trustee is the same party as the Collateral Agent), the Trust Collateral Agent and the Servicer, on a monthly basis no later than each Distribution Date, the amount on deposit in
the Spread Account and the identity of the investments included therein as of the last day of the related Collection Period, and shall provide accountings of deposits into and withdrawals from the Spread Account, and of the investments made therein,
upon the request of the Issuer, the Insurer or the Servicer. 
  
 ARTICLE IV 
  
 THE COLLATERAL AGENT

  
 Section 4.01. Appointment and Powers.
Subject to the terms and conditions hereof, each of the Issuer Secured Parties hereby appoints Deutsche Bank Trust Company Americas as the Collateral Agent with respect to the Spread Account Agreement Collateral, and Deutsche Bank Trust Company
Americas hereby accepts such appointment and agrees to act as Collateral Agent with respect to the Spread Account Agreement Collateral, for the Issuer Secured Parties, to maintain custody and possession of such Spread Account Agreement Collateral
(except as otherwise provided hereunder) and to perform the other duties of the Collateral Agent in accordance with the provisions of this Agreement. Each Issuer Secured Party hereby authorizes the Collateral Agent to take such action on its behalf,
and to exercise such rights, remedies, powers and privileges hereunder, as the Controlling Party may direct and as are specifically authorized to be exercised by the Collateral Agent by the terms hereof, together with such actions, rights, remedies,
powers and privileges as are reasonably incidental thereto. The Collateral Agent shall act (and shall be completely protected in so acting) upon and in compliance with the written instructions of the Controlling Party delivered pursuant to this
Agreement promptly following receipt of such written instructions; provided that the Collateral Agent shall not act in accordance with any instructions (i) which are not authorized by, or in violation of the provisions of, this Agreement, (ii) which
are in violation of any applicable law, rule or regulation or (iii) for which the Collateral Agent has not received reasonable indemnity. Receipt of such instructions shall not be a condition to the exercise by the Collateral Agent of its express
duties hereunder, except where this Agreement provides that the Collateral Agent is permitted to act only following and in accordance with such instructions. 
  
 Section 4.02. Performance of Duties. The Collateral Agent shall have no duties or responsibilities except those expressly set forth in this
Agreement and the other Basic Documents to which the Collateral Agent is a party or as directed by the Controlling Party in accordance with this Agreement. The Collateral Agent shall not be required to take any discretionary actions hereunder except
at the written direction and with indemnification satisfactory to it from the Controlling Party. 
  

 12 

 Section 4.03. Limitation on Liability. Neither the Collateral Agent nor any of its
directors, officers or employees shall be liable for any action taken or omitted to be taken by it or them hereunder, or in connection herewith, except that the Collateral Agent shall be liable for its negligence, bad faith or willful misconduct;
nor shall the Collateral Agent be responsible for the validity, effectiveness, value, sufficiency or enforceability against the Issuer of this Agreement or any of the Spread Account Agreement Collateral (or any part thereof). Notwithstanding any
term or provision of this Agreement, the Collateral Agent shall incur no liability to the Issuer or the Issuer Secured Parties for any action taken or omitted by the Collateral Agent in connection with the Spread Account Agreement Collateral, except
for the negligence or willful misconduct on the part of the Collateral Agent, and, further, shall incur no liability to the Issuer Secured Parties except for negligence or willful misconduct in carrying out its duties to the Issuer Secured Parties.
Subject to Section 4.04 hereof, the Collateral Agent shall be completely protected and shall incur no liability to any such party in relying upon the accuracy, acting in reliance upon the contents, and assuming the genuineness of any notice, demand,
certificate, signature, instrument or other document reasonably believed by the Collateral Agent to be genuine and to have been duly executed by the appropriate signatory, and (absent actual knowledge to the contrary) the Collateral Agent shall not
be required to make any independent investigation with respect thereto. The Collateral Agent shall at all times be free independently to establish to its reasonable satisfaction, but shall have no duty to independently verify, the existence or
nonexistence of facts that are a condition to the exercise or enforcement of any right or remedy hereunder or under any of the Basic Documents. The Collateral Agent may consult with counsel selected by it with due care, and shall not be liable for
any action taken or omitted to be taken by it hereunder in good faith and in accordance with the advice of such counsel. The Collateral Agent shall not be under any obligation to exercise any of the remedial rights or powers vested in it by this
Agreement or to follow any direction from the Controlling Party unless it shall have received reasonable security or indemnity satisfactory to the Collateral Agent against the costs, expenses and liabilities which might be incurred by it.

  
 Section 4.04. Reliance upon Documents. In the
absence of bad faith or negligence on its part, the Collateral Agent shall be entitled to rely on any communication, instrument, paper or other document reasonably believed by it to be genuine and correct and to have been signed or sent by the
proper Person or Persons and shall have no liability in acting, or omitting to act, where such action or omission to act is in reasonable reliance upon any statement or opinion contained in any such document or instrument. 
  
 Section 4.05. Successor Collateral Agent. 
  
 (a) Any Person into which the Collateral Agent may be
converted or merged, or with which it may be consolidated, or to which it may sell or transfer its trust business and assets as a whole, or substantially as a whole, or any Person resulting from any such conversion, merger, consolidation, sale or
transfer to which the Collateral Agent is a party, shall (provided it is otherwise qualified to serve as the Collateral Agent hereunder and is acceptable to the Insurer) be and become a successor Collateral Agent hereunder and be vested with all of
the title to and interest in the Spread Account Agreement Collateral and all of the trusts, powers, discretions, immunities, privileges and other matters as was its predecessor without the execution or filing of any instrument or any further act,
deed or conveyance on the part of any of the parties hereto, anything herein to the contrary notwithstanding, except to the extent, if any, that any such action 

  

 13 

 
is necessary to perfect, or continue the perfection of, the security interest of the Issuer Secured Parties in the Spread Account Agreement Collateral.

  
 (b) The Collateral Agent and any successor
Collateral Agent may resign only (i) upon a determination that by reason of a change in legal requirements the performance of its duties under this Agreement would cause it to be in violation of such legal requirements in a manner which would result
in a material adverse effect on the Collateral Agent as evidenced by an Opinion of Counsel delivered to the Insurer, and the Controlling Party does not elect to waive the Collateral Agent’s obligation to perform those duties which render it
legally unable to act or elect to delegate those duties to another Person, or (ii) with the prior written consent of the Controlling Party. The Collateral Agent shall give not less than 45 days’ prior written notice of any such permitted
resignation by registered or certified mail to the other Issuer Secured Party and the Issuer; provided, that such resignation shall take effect only upon the date which is the latest of (A) the effective date of the appointment of a successor
Collateral Agent acceptable to the Insurer (provided that an Insurer Default has not occurred and is continuing) and the acceptance in writing by such successor Collateral Agent of such appointment and of its obligation to perform its duties
hereunder in accordance with the provisions hereof, (B) delivery of the Collateral to such successor to be held in accordance with the procedures specified in Article Two, and (C) receipt by the Controlling Party of an Opinion of Counsel to the
effect described in Section 5.05 hereof. Notwithstanding the preceding sentence, if by the contemplated date of resignation specified in the written notice of resignation delivered as described above no successor Collateral Agent or temporary
successor Collateral Agent has been appointed Collateral Agent or becomes the Collateral Agent pursuant to Section 4.05(d), the resigning Collateral Agent may petition a court of competent jurisdiction in New York, New York for the appointment of a
successor acceptable to the Insurer (provided that an Insurer Default has not occurred and is continuing). Notwithstanding anything herein to the contrary, if the Trustee, the Trust Collateral Agent and Collateral Agent are the same party and the
Trustee or the Trust Collateral Agent resigns under the Indenture, the Collateral Agent may resign in accordance with the procedures for resignation of the Trustee and the Trust Collateral Agent under the Indenture. 
  
 (c) The Collateral Agent may be removed by the Controlling
Party at any time, with or without cause, by an instrument or concurrent instruments in writing delivered to the Collateral Agent, the other Issuer Secured Party and the Issuer. A temporary successor may be removed at any time to allow a successor
Collateral Agent to be appointed pursuant to Section 4.05(d). Any removal pursuant to the provisions of this subsection (c) shall take effect only upon the date which is the latest of (i) the effective date of the appointment of a successor
Collateral Agent acceptable to the Insurer (provided that an Insurer Default has not occurred and is continuing) and the acceptance in writing by such successor Collateral Agent of such appointment and of its obligation to perform its duties
hereunder in accordance with the provisions hereof, (ii) delivery of the Spread Account Agreement Collateral to such successor to be held in accordance with the procedures specified in Article Two and (iii) receipt by the Controlling Party of an
Opinion of Counsel to the effect described in Section 5.05 hereof. 
  
 (d) The Controlling Party shall have the sole right to appoint each successor Collateral Agent. Every temporary or permanent successor Collateral Agent appointed hereunder shall execute, acknowledge and deliver to its
predecessor and to each Issuer Secured 

  

 14 

 
Party and the Issuer an instrument in writing accepting such appointment hereunder and the relevant predecessor shall execute, acknowledge and deliver such
other documents and instruments as will effectuate the delivery of all Spread Account Agreement Collateral to the successor Collateral Agent to be held in accordance with the procedures specified in Article Two, whereupon such successor, without any
further act, deed or conveyance, shall become fully vested with all the estates, properties, rights, powers, duties and obligations of its predecessor. Such predecessor shall, nevertheless, on the written request of either Issuer Secured Party or
the Issuer, execute and deliver an instrument transferring to such successor all the estates, properties, rights and powers of such predecessor hereunder. In the event that any instrument in writing from the Issuer or a Issuer Secured Party is
reasonably required by a successor Collateral Agent to more fully and certainly vest in such successor the estates, properties, rights, powers, duties and obligations vested or intended to be vested hereunder in the Collateral Agent, any and all
such written instruments shall, at the request of the temporary or permanent successor Collateral Agent, be forthwith executed, acknowledged and delivered by the Issuer. The designation of any successor Collateral Agent and the instrument or
instruments removing any Collateral Agent and appointing a successor hereunder, together with all other instruments provided for herein, shall be maintained with the records relating to the Spread Account Agreement Collateral and, to the extent
required by applicable law, filed or recorded by the successor Collateral Agent in each place where such filing or recording is necessary to effect the transfer of the Spread Account Agreement Collateral to the successor Collateral Agent or to
protect or continue the perfection of the security interests granted hereunder. 
  
 Section 4.06. Indemnification. The Servicer shall indemnify the Collateral Agent, its directors, officers, employees and agents for, and hold the Collateral Agent, its directors, officers, employees and
agents harmless against, any loss, liability or expense (including the costs and expenses of defending against any claim of liability) arising out of or in connection with the Collateral Agent’s acting as Collateral Agent hereunder, except such
loss, liability or expense as shall result from the negligence, bad faith or willful misconduct of the Collateral Agent. The obligation of the Servicer under this Section 4.06 shall survive the termination of this Agreement and the resignation or
removal of the Collateral Agent or the Servicer. 
  
 Section
4.07. Compensation and Reimbursement. The Servicer agrees for the benefit of the Issuer Secured Parties to pay to the Collateral Agent, the Collateral Agent Fee for all services rendered by it hereunder (which compensation shall not be
limited by any provision of law in regard to the compensation of a collateral trustee) and to reimburse the Collateral Agent for any reasonable and out of pocket expenses (including reasonable legal fees and expenses but excluding any expenses
resulting from the gross negligence, bad faith, or willful misconduct of the Collateral Agent) incurred in connection with the duties contemplated herein. 
  
 Section 4.08. Representations and Warranties of the Collateral Agent. The Collateral Agent represents and warrants to the Issuer and to each
Issuer Secured Party as follows: 
  
 (a)
Due Organization. The Collateral Agent is a New York banking corporation, duly organized, validly existing and in good standing under the laws of the United States and is duly authorized and licensed under applicable law to conduct its
business as presently conducted. 
  

 15 

 (b) Corporate Power. The Collateral Agent has all requisite right, power
and authority to execute and deliver this Agreement and to perform all of its duties as Collateral Agent hereunder. 
  
 (c) Due Authorization. The execution and delivery by the Collateral Agent of this Agreement and the other Basic Documents to
which it is a party, and the performance by the Collateral Agent of its duties hereunder and thereunder, have been duly authorized by all necessary corporate proceedings and no further approvals or filings, including any governmental approvals, are
required for the valid execution and delivery by the Collateral Agent, or the performance by the Collateral Agent, of this Agreement and such other Basic Documents. 
  
 (d) Valid and Binding Agreement. The Collateral Agent has duly executed and delivered this
Agreement and each other Basic Document to which it is a party, and each of this Agreement and each such other Basic Document constitutes the legal, valid and binding obligation of the Collateral Agent, enforceable against the Collateral Agent in
accordance with its terms, except as (i) such enforceability may be limited by bankruptcy, insolvency, reorganization and similar laws relating to or affecting the enforcement of creditors’ rights generally and (ii) the availability of
equitable remedies may be limited by equitable principles of general applicability. 
  
 Section 4.09. Waiver of Setoffs. The Collateral Agent hereby expressly waives any and all rights of set off that the Collateral Agent may otherwise at any time have under applicable law with respect to
the Spread Account and agrees that amounts in the Spread Account shall at all times be held and applied solely in accordance with the provisions hereof. 
  
 Section 4.10. Control by the Controlling Party. The Collateral Agent shall comply with notices and instructions given by the Issuer only if
accompanied by the written consent of the Controlling Party, except that if any Default shall have occurred and be continuing, the Collateral Agent shall act upon and comply with notices and instructions given by the Controlling Party alone in the
place and stead of the Issuer. 
  
 Section 4.11.
Limitation of Collateral Agent Liability. In no event shall the Collateral Agent be liable for any indirect, special, punitive or consequential loss or damage of any kind whatsoever, including but not limited to, lost profits, even if the
Collateral Agent has been advised of the likelihood of such loss or damage and regardless of the form of action. 
  
 In no event shall the Collateral Agent be liable for any failure or delay in the performance of its obligations hereunder because of circumstances beyond
its control, including but not limited to, acts of God, flood, war (whether declared or undeclared), terrorism, fire, riot, embargo, government action, including any laws, ordinances, regulations, governmental action or the like which delay,
restrict or prohibit the providing of the services contemplated by this Insurance Agreement. 
  

 16 

 ARTICLE V 
  

COVENANTS OF THE ISSUER 
  
 Section 5.01. Preservation of Spread Account Agreement Collateral. Subject to the rights, powers and authorities granted to the Collateral
Agent and the Controlling Party in this Agreement, the Issuer shall take such action as is necessary and proper with respect to the Spread Account Agreement Collateral in order to preserve and maintain such Spread Account Agreement Collateral and to
cause (subject to the rights of the Issuer Secured Parties) the Collateral Agent to perform its obligations with respect to such Spread Account Agreement Collateral as provided herein including, without limitation, filing UCC-1s on the Spread
Account and investments therein. The Issuer will do, file, execute, acknowledge and deliver, or cause to be filed, executed, acknowledged and delivered, such instruments of transfer or take such other steps or actions as may be necessary, or
required by the Controlling Party, to perfect the Security Interests granted hereunder in the Spread Account Agreement Collateral, to ensure that such Security Interests rank prior to all other Liens and to preserve the priority of such Security
Interests and the validity and enforceability thereof. 
  
 Section 5.02. Notices. In the event that the Issuer acquires knowledge of the occurrence and continuance of any Insurance Agreement Event of Default or Event of Default under the Indenture or of any event of default or like
event, howsoever described or called, under any of the Basic Documents, the Issuer shall immediately give notice thereof to the Collateral Agent and each Issuer Secured Party. 
  
 Section 5.03. Waiver of Stay or Extension Laws; Marshalling of Assets. The Issuer covenants, to the fullest
extent permitted by applicable law, that it will not at any time insist upon, plead or in any manner whatsoever claim or take the benefit or advantage of, any appraisement, valuation, stay, extension or redemption law wherever enacted, now or at any
time hereafter in force, in order to prevent or hinder the enforcement of this Agreement or any absolute sale of the Spread Account Agreement Collateral or any part thereof, or the possession thereof by any purchaser at any sale under Article Seven;
and the Issuer, to the fullest extent permitted by applicable law, for itself and all who may claim under it, hereby waives the benefit of all such laws, and covenants that it will not hinder, delay or impede the execution of any power herein
granted to the Collateral Agent, but will suffer and permit the execution of every such power as though no such law had been enacted. The Issuer, for itself and all who may claim under it, waives, to the fullest extent permitted by applicable law,
all right to have the Spread Account Agreement Collateral marshaled upon any foreclosure or other disposition thereof. 
  
 Section 5.04. Noninterference, etc. The Issuer shall not (i) waive or alter any of its rights under the Spread Account Agreement Collateral
(or any agreement or instrument relating thereto) without the prior written consent of the Controlling Party, (ii) fail to pay any tax, assessment, charge or fee levied or assessed against the Spread Account Agreement Collateral, or to defend any
action, if such failure to pay or defend may adversely affect the priority or enforceability of the Issuer’s right, title or interest in and to the Spread Account Agreement Collateral or the Collateral Agent’s lien on, and security
interest in, the Spread Account Agreement Collateral for the benefit of the Issuer Secured Parties or (iii) take any action, or fail 

  

 17 

 
to take any action, if such action or failure to take action will interfere with the enforcement of any rights under the Basic Documents. 
  
 Section 5.05. Issuer Changes 
  
 (a) Change in Name, Structure, etc. The Issuer
shall not change its name, identity or corporate structure unless it shall have given each Issuer Secured Party and the Collateral Agent at least 30 days’ prior written notice thereof, shall have effected any necessary or appropriate
assignments or amendments thereto and filings of financing statements or amendments thereto. 
  
 (b) Relocation of the Issuer. The Issuer shall not change its principal executive office or jurisdiction of organization
unless it gives each Issuer Secured Party and the Collateral Agent at least 30 days’ prior written notice of any relocation of its principal executive office. If the Issuer relocates its principal executive office, jurisdiction of organization
or principal place of business from Delaware, the Issuer shall give prior notice thereof to the Controlling Party and the Collateral Agent and shall effect whatever appropriate recordations and filings are necessary and shall provide an Opinion of
Counsel to the Controlling Party and the Collateral Agent, to the effect that, upon the recording of any necessary assignments or amendments to previously-recorded assignments and filing of any necessary amendments to the previously filed financing
or continuation statements or upon the filing of one or more specified new financing statements, and the taking of such other actions as may be specified in such opinion, the security interests in the Spread Account Agreement Collateral shall
remain, after such relocation, valid and perfected. 
  
 ARTICLE
VI 
  
 CONTROLLING PARTY; INTERCREDITOR PROVISIONS

  
 Section 6.01. Appointment of Controlling
Party. From and after the Closing Date until the Insurer Termination Date, the Insurer shall be the Controlling Party and shall be entitled to exercise all the rights given the Controlling Party hereunder. From and after the Insurer Termination
Date until the Trustee Termination Date, the Trustee shall be the Controlling Party. Notwithstanding the foregoing, in the event that an Insurer Default shall have occurred and be continuing, the Trustee shall be the Controlling Party until the
applicable Trustee Termination Date. If prior to an Insurer Termination Date the Trustee shall have become the Controlling Party as a result of the occurrence of an Insurer Default and either such Insurer Default is cured or for any other reason
ceases to exist or the Trustee Termination Date occurs, then upon such cure or other cessation or on such Trustee Termination Date, as the case may be, the Insurer shall, upon notice thereof being duly given to the Collateral Agent, again be the
Controlling Party. 
  
 Section 6.02. Controlling
Party’s Authority. 
  
 (a) The Issuer
hereby irrevocably appoints the Collateral Agent, and any successor to the Collateral Agent appointed pursuant to Section 4.05 hereof, its true and lawful attorney, with full power of substitution, in the name of the Issuer, the Issuer Secured
Parties or 

  

 18 

 
otherwise, but (subject to Section 2.06 hereof) at the expense of the Issuer, to the extent permitted by law to exercise, at any time and from time to time
while any Insurance Agreement Event of Default has occurred but at all such times at the direction of the Controlling Party, any or all of the following powers with respect to all or any of the Spread Account Agreement Collateral: (i) to demand, sue
for, collect, receive and give acquittance for any and all monies due or to become due upon or by virtue thereof, (ii) to settle, compromise, compound, prosecute or defend any action or proceeding with respect thereto, (iii) to sell, transfer,
assign or otherwise deal with the same or the proceeds thereof as fully and effectively as if the Collateral Agent were the absolute owner thereof, and (iv) to extend the time of payment of any or all thereof and to make any allowance or other
adjustments with respect thereto. 
  
 (b) With
respect to the Notes and the related Spread Account Agreement Collateral, each Issuer Secured Party hereby irrevocably and unconditionally constitutes and appoints the Collateral Agent, and any successor to such Collateral Agent appointed pursuant
to Section 4.05 hereof from time to time, as the true and lawful attorney-in-fact of the Issuer Secured Parties, with full power of substitution, to execute, acknowledge and deliver any notice, document, certificate, paper, pleading or instrument
and to do in the name of the Collateral Agent as well as in the name, place and stead of such Issuer Secured Party such acts, things and deeds for and on behalf of and in the name of the Issuer Secured Parties under this Agreement which the Issuer
Secured Parties could or might do or which may be necessary, desirable or convenient in the Collateral Agent’s sole discretion with the prior written consent of the Controlling Party or at the direction of the Controlling Party to effect the
purposes contemplated hereunder and, without limitation, exercise full right, power and authority to take, or defer from taking, any and all acts with respect to the administration of the Spread Account Agreement Collateral, and the enforcement of
the rights of the Issuer Secured Parties hereunder, on behalf of and for the benefit of the Issuer Secured Parties, as their interests may appear. 
  
 Section 6.03. Rights of Issuer Secured Parties. With respect to the Notes and the related Spread Account Agreement Collateral, the
Non-Controlling Party at any time expressly agrees that it shall not assert any rights that it may otherwise have, as an Issuer Secured Party with respect to the Spread Account Agreement Collateral, to direct the maintenance, sale or other
disposition of the Spread Account Agreement Collateral or any portion thereof, notwithstanding the occurrence and continuance of any Default or any non-performance by the Issuer of any obligation owed to such Issuer Secured Party hereunder or under
any other Basic Document, and each party hereto agrees that the Collateral Agent, at the direction of the Controlling Party shall be the only Person entitled to assert and exercise such rights. 
  
 Section 6.04. Degree of Care. 
  
 (a) Controlling Party. Notwithstanding any
term or provision of this Agreement, the Collateral Agent shall incur no liability to the Issuer for any action taken or omitted by the Collateral Agent in connection with the Spread Account Agreement Collateral, except for any negligence, bad faith
or willful misconduct on the part of the Collateral Agent and, further, shall incur no liability to the Non-Controlling Party except for the negligence, bad faith or willful misconduct of the Collateral Agent in carrying out its duties, if any, to
the Non-Controlling Party. The Collateral Agent shall be completely protected and shall incur no liability to any such party in relying upon the accuracy, acting in reliance upon the contents and assuming 

  

 19 

 
the genuineness of any notice, demand, certificate, signature, instrument or other document believed by the Collateral Agent to be genuine and to have been
duly executed by the appropriate signatory, and (absent manifest error or actual knowledge to the contrary) the Collateral Agent shall not be required to make any independent investigation with respect thereto. The Collateral Agent shall, at all
times, be free independently to establish to its reasonable satisfaction the existence or nonexistence, as the case may be, of any fact the existence or nonexistence of which shall be a condition to the exercise or enforcement of any right or remedy
under this Agreement or any of the Basic Documents. 
  
 (b) The Non-Controlling Party. The Non-Controlling Party shall not be liable to the Issuer for any action or failure to act by the Controlling Party or the Collateral Agent in exercising, or failing to exercise, any rights or
remedies hereunder. 
  
 ARTICLE VII 
  
 REMEDIES UPON DEFAULT 
  
 Section 7.01. Remedies upon a Default. If a Default has
occurred, the Collateral Agent shall, at the written direction of the Controlling Party, take whatever action at law or in equity as may appear necessary or desirable in the judgment of the Controlling Party to collect and satisfy all Issuer Secured
Obligations, including, but not limited to, foreclosure upon the Spread Account Agreement Collateral and all other rights available to secured parties under applicable law or to enforce performance and observance of any obligation, agreement or
covenant under any of the Basic Documents. 
  
 Section 7.02.
Waiver of Default. The Controlling Party shall have the sole right, to be exercised in its complete discretion, to waive any Default by a writing setting forth the terms, conditions and extent of such waiver signed by the Controlling
Party and delivered to the Collateral Agent, the other Issuer Secured Party and the Issuer. Any such waiver shall be binding upon the Non-Controlling Party and the Collateral Agent. Unless such writing expressly provides to the contrary, any waiver
so granted shall extend only to the specific event or occurrence which gave rise to the Default so waived and not to any other similar event or occurrence which occurs subsequent to the date of such waiver. 
  
 Section 7.03. Restoration of Rights and Remedies. If the
Collateral Agent has instituted any proceeding to enforce any right or remedy under this Agreement, and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Collateral Agent, then and in every
such case the Issuer, the Collateral Agent and each of the Issuer Secured Parties shall, subject to any determination in such proceeding, be restored severally and respectively to their former positions hereunder, and thereafter all rights and
remedies of the Issuer Secured Parties shall continue as though no such proceeding had been instituted. 
  
 Section 7.04. No Remedy Exclusive. No right or remedy herein conferred upon or reserved to the Collateral Agent, the Controlling Party or
either of the Issuer Secured Parties is intended to be exclusive of any other right or remedy, and every right or remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given 

  

 20 

 
hereunder or now or hereafter existing at law, in equity or otherwise (but, in each case, shall be subject to the provisions of this Agreement limiting such
remedies), and each and every right, power and remedy whether specifically herein given or otherwise existing may be exercised from time to time and as often and in such order as may be deemed expedient by the Controlling Party, and the exercise of
or the beginning of the exercise of any right or power or remedy shall not be construed to be a waiver of the right to exercise at the same time or thereafter any other right, power or remedy. 
  
 ARTICLE VIII 
  
 MISCELLANEOUS 
  
 Section 8.01. Further Assurances. Each party hereto shall take
such action and deliver such instruments to any other party hereto, in addition to the actions and instruments specifically provided for herein, as may be reasonably requested or required to effectuate the purpose or provisions of this Agreement or
to confirm or perfect any transaction described or contemplated herein. 
  
 Section 8.02. Waiver. Any waiver by any party of any provision of this Agreement or any right, remedy or option hereunder shall only prevent and stop such party from thereafter enforcing such provision, right, remedy or option
if such waiver is given in writing and only as to the specific instance and for the specific purpose for which such waiver was given. The failure or refusal of any party hereto to insist in any one or more instances, or in a course of dealing, upon
the strict performance of any of the terms or provisions of this Agreement by any party hereto or the partial exercise of any right, remedy or option hereunder shall not be construed as a waiver or relinquishment of any such term or provision, but
the same shall continue in full force and effect. 
  
 Section
8.03. Amendments; Waivers. No amendment, modification, waiver or supplement to this Agreement or any provision of this Agreement shall in any event be effective unless the same shall have been made or consented to in writing by each of
the parties hereto and prior written notice shall have been given to the Rating Agencies; provided, however, that, notwithstanding the foregoing, for so long as the Insurer shall be the Controlling Party, any amendments, modifications,
waivers or supplements hereto, or to the Spread Account Agreement Collateral or Spread Account or to any requirement hereunder to deposit or retain any amounts in such Spread Account or to distribute any amounts therein as provided in Section 3.03
hereof shall be effective if made or consented to in writing by the Insurer, the Issuer and the Collateral Agent (the consent of which shall not be withheld or delayed with respect to any amendment that does not adversely affect the Collateral
Agent) but shall in no circumstances require the consent of the Trustee or the Noteholders. 
  
 Section 8.04. Severability. In the event that any provision of this Agreement or the application thereof to any party hereto or to any circumstance or in any jurisdiction governing this Agreement shall,
to any extent, be invalid or unenforceable under any applicable statute, regulation or rule of law, then such provision shall be deemed inoperative to the extent that it is invalid or unenforceable and the remainder of this Agreement, and the
application of any such invalid or unenforceable provision to the parties, jurisdictions or circumstances other than to 

  

 21 

 
whom or to which it is held invalid or unenforceable, shall not be affected thereby nor shall the same affect the validity or enforceability of any other
provision of this Agreement. The parties hereto further agree that the holding by any court of competent jurisdiction that any remedy pursued by the Collateral Agent, or any of the Issuer Secured Parties, hereunder is unavailable or unenforceable
shall not affect in any way the ability of the Collateral Agent or any of the Issuer Secured Parties to pursue any other remedy available to it or them (subject, however, to the provisions of this Agreement limiting such remedies). 
  
 Section 8.05. Nonpetition Covenant. Notwithstanding any prior
termination of this Agreement, each of the parties hereto agrees that it shall not, prior to one year and one day after the Final Scheduled Distribution Date of the Class A-3 Notes and payment of all amounts due to the Insurer under the Insurance
Agreement, acquiesce, petition or otherwise invoke or cause the Issuer or the Seller to invoke the process of the United States of America, any State or other political subdivision thereof or any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government for the purpose of commencing or sustaining a case by or against the Issuer or the Seller under a federal or state bankruptcy, insolvency or similar law or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Issuer or the Seller or all or any part of its respective property or assets or ordering the winding up or liquidation of the affairs of the Issuer or the
Seller. The parties agree that damages will be an inadequate remedy for breach of this covenant and that this covenant may be specifically enforced. 
  
 Section 8.06. Notices. All notices, demands, certificates, requests and communications hereunder (“notices”) shall be in writing
and shall be effective (a) upon receipt when sent through the U.S. mails, registered or certified mail, return receipt requested, postage prepaid, with such receipt to be effective the date of delivery indicated on the return receipt, (b) one
Business Day after delivery to an overnight courier, (c) on the date personally delivered to an Authorized Officer of the party to which sent, or (d) on the date transmitted by legible telecopier transmission with a confirmation of receipt, in all
cases addressed to the recipient as follows: 
  

	 	(a)	If to the Issuer: 

  
 UPFC Auto Receivables Trust 2004-A 
 c/o
Wells Fargo Delaware Trust Company 
 919 N. Market Street 
 Suite 700 
 Wilmington, Delaware 19801 
 Attention: Corporate Trust Services 
 Telephone: (302) 575-2004 
 Facsimile: (302) 575-2006 
  

	 	(b)	If to the Insurer: 

  

 22 

 Ambac Assurance Corporation 
 One State Street Plaza 
 New York, New York
10004 
 Attention: Structured Finance Department – ABS 
 Telecopy No.: 212-208-3547 
 Confirmation: 212-668-0340 
  
 with a copy to the attention of: 
 Michael Babick, Vice President 
 Telecopy
No.: 212-363-1459 
 Confirmation: 212-208-3407 
  
 (in each case in which notice or other communication to the Insurer refers to a Default or a claim on the Policy or in which failure on the part of the
Insurer to respond shall be deemed to constitute consent or acceptance, then with a copy to the attention of the General Counsel marked to reflect “Urgent Materials Enclosed”) 
  

	 	(c)	If to the Trustee and the Trust Collateral Agent: 

  
 Deutsche Bank Trust Company Americas 
 60
Wall Street, 26th Floor 
 New York, New York 10005 
 Facsimile number: (212) 797-8606 
 Attention: UPFC Auto Receivables Trust 2004-A 
  

	 	(d)	If to the Collateral Agent: 

  
 Deutsche Bank Trust Company Americas 
 60
Wall Street, 25th Floor 
 New York, New York 10005 
 Facsimile number: (212) 797-8606 
 Attention: UPFC Auto Receivables Trust 2004-A 
  

	 	(e)	If to Moody’s: 

  
 Moody’s Investors Service, Inc. 
 ABS
Monitoring Department 
 99 Church Street 
 New York, New York 10007 
  

 23 

	 	(f)	If to Standard & Poor’s: 

  
 Standard & Poor’s Ratings Services, a division of 
 The McGraw Hill Companies, Inc. 
 55 Water Street, 40th Floor 
 New York, New York 10041 
 Attention:
Asset-Backed Surveillance Department 
  
 A copy of each notice
given hereunder to any party hereto shall also be given to (without duplication) the Insurer, the Issuer, the Trustee, the Trust Collateral Agent and the Collateral Agent. Each party hereto may, by notice given in accordance herewith to each of the
other parties hereto, designate any further or different address to which subsequent notices shall be sent. 
  
 Section 8.07. Term of this Agreement. This Agreement shall take effect on the Closing Date and shall continue in effect until the
Distribution Date occurring immediately following the Final Termination Date. On the Distribution Date occurring immediately following the Final Termination Date and after giving effect to any withdrawals pursuant to Section 3.03 hereof, this
Agreement shall terminate, all obligations of the parties hereunder shall cease and terminate and the Spread Account Agreement Collateral, if any, held hereunder and not to be used or applied in discharge of any obligations of the Issuer in respect
of the Issuer Secured Obligations or otherwise under this Agreement, shall be released to and in favor of the Issuer; provided that the provisions of Sections 4.06, 4.07 and 8.05 hereof shall survive any termination of this Agreement and the release
of any Spread Account Agreement Collateral upon such termination. 
  
 Section 8.08. Assignments; Third-Party Rights; Reinsurance. 
  
 (a) This Agreement shall be a continuing obligation of the parties hereto and shall (i) be binding upon the parties and their respective
successors and assigns, and (ii) inure to the benefit of and be enforceable by each Issuer Secured Party and the Collateral Agent, and by their respective successors, transferees and assigns. The Issuer may not assign this Agreement, or delegate any
of its duties hereunder, without the prior written consent of the Controlling Party. 
  
 (b) The Insurer shall have the right to give participations in its rights under this Agreement and to enter into contracts of reinsurance
with respect to the Note Policy issued in connection with the Notes, upon such terms and conditions as the Insurer in its discretion determines, and each such participant or reinsurer shall be entitled to the benefit of any representation, warranty,
covenant and obligation of each party (other than the Insurer) hereunder as if such participant or reinsurer was a party hereto and, subject only to such agreement regarding such reinsurance or participation, shall have the right to enforce the
obligations of each such other party directly hereunder; provided, however, that no such reinsurance or participation agreement or arrangement shall relieve the Insurer of its obligations hereunder, under the Basic Documents to which it is a party
or under the Note Policy. In addition, nothing contained herein shall restrict the Insurer from assigning to any Person pursuant to any liquidity facility or credit facility any rights of the Insurer under this Agreement or with respect to any real
or personal property or other interests pledged to the Insurer, or in 

  

 24 

 
which the Insurer has a security interest, in connection with the transactions contemplated hereby. 
  
 Section 8.09. Consent of Controlling Party. In the event that
the Controlling Party’s consent is required under the terms hereof or under the terms of any Basic Document, it is understood and agreed that, except as otherwise provided expressly herein, the determination whether to grant or withhold such
consent shall be made solely by the Controlling Party in its sole discretion. 
  
 Section 8.10. Consents to Jurisdiction. Each of the parties hereto irrevocably submits to the non-exclusive jurisdiction of the United States District Court for the Southern District of New York, any
court in the state of New York located in the city and county of New York, and any appellate court from any thereof, in any action, suit or proceeding brought against it and related to or in connection with this Agreement, the other Basic Documents
or the transactions contemplated hereunder or thereunder or for recognition or enforcement of any judgment and each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any such suit or action or proceeding may
be heard or determined in such New York State court or, to the extent permitted by law, in such federal court. Each of the parties hereto agrees that a final judgment in any such action, suit or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by law. To the extent permitted by applicable law, each of the parties hereby waives and agrees not to assert by way of motion, as a defense or otherwise in any such suit,
action or proceeding, any claim that it is not personally subject to the jurisdiction of such courts, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this
Agreement or any of the other Basic Documents or the subject matter hereof or thereof may not be litigated in or by such courts. The Issuer hereby irrevocably appoints and designates Deutsche Bank Trust Company Americas, as its true and lawful
attorney and duly authorized agent for acceptance of service of legal process relating hereto. The Issuer agrees that service of such process upon such Person shall constitute personal service of such process upon it. Subject to Section 8.05 hereof,
nothing contained in this Agreement shall limit or affect the rights of any party hereto to serve process in any other manner permitted by law or to start legal proceedings relating to any of the Basic Documents against the Issuer or its property in
the courts of any jurisdiction. 
  
 Section 8.11.
Determination of Adverse Effect. Any determination of an adverse effect on the interest of the Issuer Secured Parties or the Noteholders shall be made without consideration of the availability of funds under the Note Policy. 

 
 Section 8.12. Headings. The headings of articles, sections
and paragraphs and the Table of Contents contained in this Agreement are provided for convenience only. They form no part of this Agreement and shall not affect its construction or interpretation. 
  
 Section 8.13. TRIAL BY JURY WAIVED. EACH OF THE PARTIES HERETO
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION ARISING DIRECTLY OR INDIRECTLY OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT, ANY OF THE OTHER BASIC DOCUMENTS OR ANY OF THE
TRANSACTIONS 

  

 25 

 
CONTEMPLATED HEREUNDER OR THEREUNDER. EACH OF THE PARTIES HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER BASIC DOCUMENTS TO WHICH IT IS A
PARTY, BY AMONG OTHER THINGS, THIS WAIVER. 
  
 Section 8.14.
GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ITS CONFLICTS OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES UNDER THIS AGREEMENT SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
  
 Section 8.15. Counterparts. This Agreement may be executed in two or more counterparts by the parties hereto, and each such counterpart
shall be considered an original and all such counterparts shall constitute one and the same instrument. 
  
 Section 8.16. Limitation of Liability. 
  
 (a) Notwithstanding anything contained herein to the contrary, this Agreement has been countersigned by Wells Fargo Delaware Trust Company
not in its individual capacity but solely in its capacity as Owner Trustee of the Issuer and in no event shall Wells Fargo Delaware Trust Company in its individual capacity or, except as expressly provided in the Trust Agreement, as Owner Trustee
have any liability for the representations, warranties, covenants, agreements or other obligations of the Issuer hereunder or in any of the certificates, notices or agreements delivered pursuant hereto, as to all of which recourse shall be had
solely to the assets of the Issuer. For all purposes of this Agreement, in the performance of its duties or obligations hereunder or in the performance of any duties or obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and
entitled to the benefits of, the terms and provisions of Articles V, VI and VII of the Trust Agreement. 
  
 (b) Notwithstanding anything contained herein to the contrary, this Agreement has been executed and delivered by Deutsche Bank Trust
Company Americas, not in its individual capacity but solely in its capacities as Collateral Agent, Trustee and Trust Collateral Agent and in no event shall Deutsche Bank Trust Company Americas, have any liability for the representations, warranties,
covenants, agreements or other obligations of the Issuer hereunder or in any of the certificates, notices or agreements delivered pursuant hereto, as to all of which recourse shall be had solely to the assets of the Issuer. 
  
 [REMAINDER OF PAGE INTENTIONALLY BLANK; SIGNATURE PAGE FOLLOWS] 
  

 26 

 IN WITNESS WHEREOF, the parties hereto have executed this Spread Account Agreement as of the date set
forth on the first page hereof. 
  

			
	UPFC AUTO RECEIVABLES TRUST 2004-A, as Issuer
		
	By:	 	WELLS FARGO DELAWARE TRUST COMPANY, not in its individual capacity but solely as Owner Trustee on behalf of the Trust.
		
	By:	 	 /s/ Stephen J. Kaba

			
	 Name:
	 	 Stephen J. Kaba

	 Title:
	 	 Executive Vice President

	
	 AMBAC ASSURANCE CORPORATION,
as Insurer

		
	By:	 	 /s/ Michael Babick

			
	 Name:
	 	 Michael Babick

	 Title:
	 	 First Vice President

	
	 DEUTSCHE BANK TRUST COMPANY AMERICAS,
as Trustee, as Trust Collateral Agent and as Collateral Agent

		
	By:	 	 /s/ Tara Richards

			
	 Name:
	 	 Tara Richards

	 Title:
	 	 Associate

  
 Accepted and Agreed with respect
to Sections 4.06 and 4.07: 
  

			
	 UNITED AUTO CREDIT CORPORATION

		
	By:	 	 /s/ Mario Radrigan

			
	 Name:
	 	 Mario Radrigan

	 Title:
	 	 Executive Vice President

  

 SCHEDULE A 
  

LEVEL 1, LEVEL 2, LEVEL 3 AND LEVEL 4 TRIGGER EVENT 
 CUMULATIVE NET LOSS TESTS AND DELINQUENCY TESTS 
  
 Cumulative Net Loss Test 
  

													
					
	 Month

	  	1st Level

	 	 	2nd Level

	 	 	3rd Level

	 	 	4th Level

	 
	 1
	  	0.5	%	 	0.59	%	 	0.63	%	 	0.68	%
	 2
	  	1.0	%	 	1.17	%	 	1.27	%	 	1.36	%
	 3
	  	1.5	%	 	1.76	%	 	1.90	%	 	2.04	%
	 4
	  	2.0	%	 	2.35	%	 	2.53	%	 	2.71	%
	 5
	  	2.5	%	 	2.93	%	 	3.16	%	 	3.39	%
	 6
	  	3.0	%	 	3.52	%	 	3.80	%	 	4.07	%
	 7
	  	3.5	%	 	4.11	%	 	4.43	%	 	4.75	%
	 8
	  	4.0	%	 	4.69	%	 	5.06	%	 	5.43	%
	 9
	  	4.5	%	 	5.28	%	 	5.69	%	 	6.11	%
	 10
	  	5.0	%	 	5.87	%	 	6.33	%	 	6.78	%
	 11
	  	5.5	%	 	6.45	%	 	6.96	%	 	7.46	%
	 12
	  	6.1	%	 	7.04	%	 	7.59	%	 	8.14	%
	 13
	  	6.6	%	 	7.63	%	 	8.22	%	 	8.82	%
	 14
	  	7.1	%	 	8.21	%	 	8.86	%	 	9.50	%
	 15
	  	7.6	%	 	8.80	%	 	9.49	%	 	10.18	%
	 16
	  	8.1	%	 	9.39	%	 	10.12	%	 	10.85	%
	 17
	  	8.6	%	 	9.97	%	 	10.75	%	 	11.53	%
	 18
	  	9.1	%	 	10.56	%	 	11.39	%	 	12.21	%
	 19
	  	9.6	%	 	11.15	%	 	12.02	%	 	12.89	%
	 20
	  	10.1	%	 	11.73	%	 	12.65	%	 	13.57	%
	 21
	  	10.6	%	 	12.32	%	 	13.28	%	 	14.25	%
	 22
	  	11.1	%	 	12.91	%	 	13.92	%	 	14.92	%
	 23
	  	11.6	%	 	13.49	%	 	14.55	%	 	15.60	%
	 24
	  	12.1	%	 	14.08	%	 	15.18	%	 	16.28	%
	 25
	  	12.4	%	 	14.37	%	 	15.50	%	 	16.62	%
	 26
	  	12.6	%	 	14.67	%	 	15.81	%	 	16.96	%
	 27
	  	12.9	%	 	14.96	%	 	16.13	%	 	17.30	%
	 28
	  	13.1	%	 	15.25	%	 	16.45	%	 	17.64	%
	 29
	  	13.4	%	 	15.55	%	 	16.76	%	 	17.98	%
	 30
	  	13.6	%	 	15.84	%	 	17.08	%	 	18.32	%
	 31
	  	13.9	%	 	16.13	%	 	17.39	%	 	18.65	%
	 32
	  	14.1	%	 	16.43	%	 	17.71	%	 	18.99	%
	 33
	  	14.4	%	 	16.72	%	 	18.03	%	 	19.33	%
	 34
	  	14.6	%	 	17.01	%	 	18.34	%	 	19.67	%
	 35
	  	14.9	%	 	17.31	%	 	18.66	%	 	20.01	%
	 36 and on
	  	15.1	%	 	17.60	%	 	18.98	%	 	20.35	%

  

 2 

 60+ Day Delinquency Test 
  

													
					
	 Month

	  	1st Level

	 	 	2nd Level

	 	 	3rd Level

	 	 	4th Level

	 
	 1
	  	3.00	%	 	3.50	%	 	3.75	%	 	4.00	%
	 2
	  	3.00	%	 	3.50	%	 	3.75	%	 	4.00	%
	 3
	  	3.00	%	 	3.50	%	 	3.75	%	 	4.00	%
	 4
	  	3.00	%	 	3.50	%	 	3.75	%	 	4.00	%
	 5
	  	3.00	%	 	3.50	%	 	3.75	%	 	4.00	%
	 6
	  	3.00	%	 	3.50	%	 	3.75	%	 	4.00	%
	 7
	  	3.00	%	 	3.50	%	 	3.75	%	 	4.00	%
	 8
	  	3.00	%	 	3.50	%	 	3.75	%	 	4.00	%
	 9
	  	3.00	%	 	3.50	%	 	3.75	%	 	4.00	%
	 10
	  	3.00	%	 	3.50	%	 	3.75	%	 	4.00	%
	 11
	  	3.00	%	 	3.50	%	 	3.75	%	 	4.00	%
	 12
	  	3.00	%	 	3.50	%	 	3.75	%	 	4.00	%
	 13
	  	4.00	%	 	4.50	%	 	4.75	%	 	5.00	%
	 14
	  	4.00	%	 	4.50	%	 	4.75	%	 	5.00	%
	 15
	  	4.00	%	 	4.50	%	 	4.75	%	 	5.00	%
	 16
	  	4.00	%	 	4.50	%	 	4.75	%	 	5.00	%
	 17
	  	4.00	%	 	4.50	%	 	4.75	%	 	5.00	%
	 18
	  	4.00	%	 	4.50	%	 	4.75	%	 	5.00	%
	 19
	  	4.00	%	 	4.50	%	 	4.75	%	 	5.00	%
	 20
	  	4.00	%	 	4.50	%	 	4.75	%	 	5.00	%
	 21
	  	4.00	%	 	4.50	%	 	4.75	%	 	5.00	%
	 22
	  	4.00	%	 	4.50	%	 	4.75	%	 	5.00	%
	 23
	  	4.00	%	 	4.50	%	 	4.75	%	 	5.00	%
	 24
	  	4.00	%	 	4.50	%	 	4.75	%	 	5.00	%
	 25
	  	4.00	%	 	4.50	%	 	4.75	%	 	5.00	%
	 26
	  	4.00	%	 	4.50	%	 	4.75	%	 	5.00	%
	 27
	  	4.00	%	 	4.50	%	 	4.75	%	 	5.00	%
	 28
	  	4.00	%	 	4.50	%	 	4.75	%	 	5.00	%
	 29
	  	4.00	%	 	4.50	%	 	4.75	%	 	5.00	%
	 30
	  	4.00	%	 	4.50	%	 	4.75	%	 	5.00	%
	 31
	  	5.00	%	 	5.50	%	 	5.75	%	 	6.00	%
	 32
	  	5.00	%	 	5.50	%	 	5.75	%	 	6.00	%
	 33
	  	5.00	%	 	5.50	%	 	5.75	%	 	6.00	%
	 34
	  	5.00	%	 	5.50	%	 	5.75	%	 	6.00	%
	 35
	  	5.00	%	 	5.50	%	 	5.75	%	 	6.00	%
	 36 and on
	  	5.00	%	 	5.50	%	 	5.75	%	 	6.00	%

  

 3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00073-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00073-of-00352.parquet"}]]