Document:

EX-10(Y)

 

Exhibit 10-Y

EXECUTIVE BONUS AGREEMENT

BONUSVEREINBARUNG FÜR LEITENDE ANGESTELLTE

	 	 	 
	[German translation omitted]

	 	This Agreement (the “Agreement”) made and
entered into on June 14, 2007, by and between
Dana Corporation, a Virginia corporation, whose
principal place of business is located at 4500
Dorr Street, Toledo, Ohio (the “Corporation”),
and Mr. Ralf Göttel (the “Executive”), effective
as of December 31, 2006.
	 
	 	 
	 

	 	WHEREAS, on March 3, 2006, the Corporation and
forty of its Subsidiaries (the “Debtors”) filed
voluntary petitions for relief under chapter 11
of title 11 of the United States Code (the
“Bankruptcy Code”) in the United States
Bankruptcy Court for the Southern District of
New York, Case No. 06-10354 (BRL) (Jointly
Administered), (the “Bankruptcy Cases”);
	 
	 	 
	 

	 	WHEREAS, in accordance with the Memorandum
Opinion of the United States Bankruptcy Court
for the Southern District of New York (the
“Bankruptcy Court”) dated November 30, 2006 (the
“Opinion”), as supplemented by an Order of the
Bankruptcy Court dated December 18, 2006 (the
“Order”), the Corporation desires to enter into
this agreement, subject to certain conditions
and limitations, as provided herein (the
“Agreement”) and the Order; and
	 
	 	 
	 

	 	WHEREAS, the Executive, in his capacity as
President Engine Products Group, is exclusively
employed by Reinz-Dichtungs-GmbH (the “GmbH”), a
limited liability company established under the
laws of the Federal Republic of Germany and a
subsidiary of the Corporation.
	 
	 	 
	 

	 	NOW, THEREFORE, in consideration of the premises
and of the covenants and agreements set forth
herein, the

 

	 	 	 
	 

	 	Corporation and the Executive agree as follows:

	 	1.	 	Employment and Base Salary. The Executive
shall continue to be exclusively employed by the
GmbH under his existing employment agreement, as
last amended June 27, 2005 (the “German
Agreement”), and nothing in this Agreement shall
be interpreted to establish an employment
relationship between the Executive and the
Corporation. The Corporation shall ensure that
the GmbH will fix the Executive’s base gross
salary at the rate of [euros] 305,100 per annum
(the “Annual Base Salary”). The Annual Base
Salary shall continue to be paid by the GmbH and
not be a payment obligation of the Corporation.
	 
	 	2.	 	(a) Additional Benefits and Compensation.

	 	(i)	 	Annual Bonus. During the Executive’s
employment, the Executive shall be eligible to
receive annual short-term incentive awards or
bonuses (each such award or bonus is hereinafter
referred to as an “Annual Bonus”) pursuant to
the Dana Corporation Annual Incentive Plan, and
any successor or replacement plan (the Dana
Corporation Annual Incentive Plan and such
successor or replacement plans being referred to
herein collectively as the “AIP”), in accordance
with the terms thereof. Each Annual Bonus shall
be determined and paid in accordance with the
terms of the AIP.
	 
	 	(ii)	 	The EIC Plan. The

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	 	 	 	Corporation hereby adopts an Executive Incentive
Compensation Plan for the Executive (the “EIC
Plan”) under which the Executive shall be
eligible for a 2007 performance based incentive
bonus (the “2007 EIC”) and a 2008 performance
based incentive bonus (the “2008 EIC”), subject
to the terms and conditions set forth herein and
in the Order. Except as otherwise provided for
herein, the EIC payment shall only be earned and
payable if the Executive is employed at the end
of the applicable fiscal year.
	 
	 	(1)	 	The Executive shall be eligible for a 2007
EIC payment of up to $633,333. The first
$422,222 shall be earned by the Executive upon
the achievement by the Corporation of EBITDAR
for 2007 of $250 million and shall be paid in
cash on the later of (a) 30 days following the
filing of the Corporation’s audited 2007
financial statements with the Securities and
Exchange Commission (the “SEC”) and (b) 30 days
after the Corporation’s Emergence (the
applicable date, the “2007 EIC Payment Date”),
provided that in the event that the Corporation
achieves EBITDAR for 2007 in excess of $250
million, the Executive shall earn an additional
2007 EIC payment equal to 10.55555 basis points
on EBITDAR for 2007 in excess of $250 million,
up to a cap of $450 million (the

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	 	 	 	“Additional 2007 EIC Payment”). For purposes of
this Agreement, the term “EBITDAR” shall have
the meaning set forth in the term sheet attached
as Exhibit A to the Order which is attached
hereto as Exhibit 1 and incorporated herein by
reference. For purposes of this Agreement,
“Emergence” shall mean consummation by the
Corporation of (i) a plan of reorganization
under the Bankruptcy Code (the “Plan”) or (ii) a
sale of all or substantially all of the
Corporation’s assets pursuant to section 363 of
the Bankruptcy Code. The Additional 2007 EIC
Payment shall be paid in common stock (“Common
Stock”) of the reorganized Corporation on the
2007 EIC Payment Date.
	 
	 	(2)	 	The Executive shall be eligible for a 2008
EIC payment of up to $316,667. The first
$70,370 shall be earned by the Executive upon
the achievement by the Corporation of EBITDAR
for 2008 of $375 million, provided that in the
event the Corporation achieves EBITDAR for 2008
in excess of $375 million, the Executive shall
earn an additional 2008 EIC payment equal to (a)
14 basis points on EBITDAR for 2008 in excess of
$375 million, up to a cap

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	 		 	of $450 million, and (b) 7 basis points on
EBITDAR for 2008 in excess of $450 million, up
to a cap of $650 million. The entire 2008 EIC
payment shall be paid in Common Stock on the
later of (i) 30 days following the filing of the
Corporation’s audited 2008 financial statements
with the SEC and (ii) 30 days after the
Corporation’s Emergence (the “2008 EIC Payment
Date”).
	 
	 	(3)	 	For purposes of determining the number of
shares of Common Stock to be issued to the
Executive under Sections 2(a)(ii)(1) and (2),
the value of the Common Stock will be its
average closing price on the principal U.S.
stock exchange on which it is traded during the
thirty days before the 2007 EIC Payment Date or
the 2008 EIC Payment Date, as applicable.
	 
	 	(4)	 	The 2007 EIC and 2008 EIC awards earned
shall be subject to reduction under the “EBITDAR
Adjustment Mechanism.” Under the EBITDAR
Adjustment Mechanism, EBITDAR for the purposes
of determining the minimum payment threshold for
the 2007 EIC (excluding the first $422,222 cash
payment in respect of the 2007 EIC award) and
the 2008 EIC shall be reduced by unsecured
claims allowed in the Bankruptcy Cases in excess
of an unsecured claims threshold of $2.85
billion, as

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	 	 	 	follows:

	 	(A)	 	12.5% of the first $75 million in additional
claims;
	 
	 	(B)	 	25% of the next $100 million in additional
claims in excess of $75 million but not more
than $175 million; and
	 
	 	(C)	 	75% of any additional claims in excess of
$175 million.

	 	 	 	For purposes of this Agreement, the term
“allowed in the Bankruptcy Cases” shall mean the
earlier of (a) the allowance of an unsecured
claim in the Bankruptcy Cases or (b) an
agreement regarding potentially allowable claims
between the Corporation and the official
committee of unsecured creditors appointed in
the Bankruptcy Cases, or its successor, as
designated in the Plan.

	 	(b)	 	Maximum Bonus Compensation. Notwithstanding
anything set forth herein, while the Bankruptcy
Cases are pending the maximum annual
compensation with respect to 2007 under Section
2(a) shall not exceed $1,333,127 (the “Maximum
Annual Bonus Compensation”). For avoidance of
doubt, the Maximum Annual Bonus Compensation
shall not include (i) the Annual Base Salary and
(ii) any payment made during a relevant fiscal
year in respect of performance measures related
to prior years, regardless whether such payment
is made by the

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	 	 	 	Corporation or the GmbH.

	 	3.	 	Certain Definitions. For purposes of this
Agreement,

	 	(a)	 	“Disability” shall mean the absence of the
Executive from the Executive’s duties with the
Corporation and/or the GmbH, as the case may be,
on a full-time basis for 120 consecutive days as
a result of incapacity due to mental or physical
illness which is determined to be total and
permanent by a German physician selected by the
Corporation or its insurers and acceptable to
the Executive or the Executive’s legal
representative (such agreement as to
acceptability not to be withheld unreasonably),
whereby the Executive or the Executive’s legal
representative explicitly waives the physician’s
duty to keep confidential patient examination
results and shall instruct the physician to
disclose to the Corporation the examination
result;
	 
	 	(b)	 	“Cause” shall mean:
	 
	 	(i)	 	the willful and continued failure of the
Executive to perform substantially the
Executive’s duties with the Corporation and/or
the GmbH, as the case may be, (other than any
such failure resulting from incapacity due to
physical or mental illness), after a written
demand for substantial performance is delivered
to the Executive by the Board of Directors of
the

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	 	 	 	Corporation (the “Board”), or a committee
thereof, or the Chief Executive Officer, which
specifically identifies the manner in which the
Board, the committee or the Chief Executive
Officer, as applicable, believes that the
Executive has not substantially performed the
Executive’s duties, or
	 
	 	(ii)	 	the willful engaging by the Executive in
illegal conduct or gross misconduct which is
materially and demonstrably injurious to the
Corporation or any company affiliated with the
Corporation, including but not limited to the
GmbH.

	 	 	 	For purposes of this provision, no act or
failure to act, on the part of the Executive,
shall be considered “willful” unless it is done,
or omitted to be done, by the Executive in bad
faith or without reasonable belief that the
Executive’s action or omission was in the best
interests of the Corporation or any company
affiliated with the Corporation, including but
not limited to the GmbH. Any act, or failure to
act, based upon authority given pursuant to a
resolution duly adopted by the Board or a
committee thereof or upon the instructions of
the Chief Executive Officer, or based upon the
advice of counsel for the Corporation or any
instruction by the management or the
shareholder(s) of the GmbH shall be conclusively
presumed to be done, or omitted to be done, by
the Executive in good faith and in the best
interests of the Corporation and/or its
affiliated companies, including the GmbH, as the
case may be.
	 
	 	4.	 	Employment with the GmbH; Obligations of the
Corporation and

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	 	 	 	the GmbH upon Termination of Employment. The
Corporation and the Executive agree that the
GmbH is and shall continue to be the only and
exclusive employer of the Executive, and that
this Agreement shall not be construed to be part
of the German Agreement. The Corporation and
the Executive also agree that the compensation
paid by the GmbH to the Executive under the
German Agreement constitutes full and adequate
remuneration for the Executive’s work and that
the Corporation has no obligation to offer the
Executive the chance and opportunity to earn the
remuneration provided for under this Agreement.
The Corporation and the Executive further agree
that U.S. managers on the same level as the
Executive are employed under at will agreements
which offer less termination protection than
German law does with respect to the Executive
and that it accordingly is fair and appropriate
to approximate the Executive’s legal position
under this Agreement to the position of a
comparable U.S. manager whose employment can be
terminated by himself or the Corporation at any
time and for any reason. Accordingly, following
the termination of the Executive’s employment,
the Executive shall be entitled to the
compensation and benefits provided for in this
Section, as applicable depending on the
circumstances of such termination.

	 	(a)	 	Termination by the GmbH or Deemed
Termination by the Corporation without Cause or
due to death or Disability. If the GmbH
actually shall terminate the Executive’s
employment without Cause or

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	 	 	 	if the Executive’s employment is terminated due
to death or Disability, or if the Corporation
vis-à-vis the Executive (by way of a written
notification in line with Section 8(b)
approximates the termination without Cause of a
U.S. manager (the “Deemed Termination Without
Cause”) (regardless whether the German Agreement
remains un-terminated or not), subject to and
conditioned upon the execution by the Executive
(or, if applicable, his estate) of, and his (or,
as applicable, his estate) not revoking, a
release in a form reasonably acceptable to the
Corporation, the Executive (or, as applicable,
his estate) shall be entitled to the following:
	 
	 	 	 	a contingent receivable for his 2007 EIC and
2008 EIC payments if the applicable EBITDAR
thresholds have been or are subsequently met;
provided, however, that the 2007 EIC and 2008
EIC shall each be pro rated for the time worked
during the applicable year, such pro rata EIC to
be determined by multiplying the 2007 EIC or
2008 EIC, as applicable, by a fraction, the
numerator of which is the number of days in the
applicable year through the date of termination,
and the denominator of which is 365.
	 
	 	 	 	The Deemed Termination Without Cause pursuant to
Section 4 (a) shall contain a

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	 	 	 	reference to this Agreement and the
Corporation’s declaration that it would
terminate the Executive’s employment without
Cause if the Executive had an at will employment
relationship with the Corporation; it does not
require an actual termination by the GmbH or any
justification German law would require for a
termination of employment. The Deemed
Termination Without Cause shall take effect at
the same time a respective termination without
Cause would take effect vis-à-vis a U.S.
manager, irrespective of a notice period under
the Executive’s German Agreement. Payments made
pursuant to Section 4 shall be made in lump sum
on the later of (A) such time as they would
otherwise be payable under this Agreement or the
applicable benefit plans and (B) earliest date
permissible under Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”).
	 
	 	(b)	 	Cause; Termination by the Executive. If the
Executive’s employment shall be terminated by
the GmbH for cause under German law
(außerordentliche Kündigung), or if the
Corporation vis-à-vis the Executive (by way of a
written notification in line

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	 	 	 	with Section 8(b) approximates the termination
with Cause of a U.S. manager (the “Deemed
Termination With Cause”) (regardless whether the
German Agreement remains un-terminated or not),
or if the Executive terminates his employment,
the Corporation shall have no further
obligations to the Executive under this
Agreement other than the obligation to pay to
the Executive through the date of termination
any compensation previously earned, any
compensation previously deferred by the
Executive (together with any accrued interest or
earnings thereon), his vested benefits under any
employee benefit plans maintained by the
Corporation, in each case to the extent not
theretofore paid.
	 
	 	 	 	The Deemed Termination With Cause pursuant to
Section 4 (b) shall contain a reference to this
Agreement and the Corporation’s declaration that
it would terminate the Executive’s employment
with Cause if the Executive had an at will
employment relationship with the Corporation; it
does not require an actual termination for cause
by the GmbH or any justification German law
would require for a termination for cause. For
the avoidance of doubt, it is understood that
Cause shall exclusively have the meaning as
defined in this Agreement and shall not be
influenced by the requirements of a

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	 	 	 	termination for cause under German law, except
that an actual termination for cause served to
the Executive by the GmbH shall in any case also
be considered a termination with Cause under
this Agreement.

	 	5.	 	Full Settlement. The Corporation’s
obligation to make the payments provided for in
this Agreement and otherwise to perform its
obligations hereunder shall not be affected by
any set-off, counterclaim, recoupment, defense
or other claim, right or action which the
Corporation may have against the Executive or
others.
	 
	 	6.	 	Successors. Except as otherwise provided
herein, this Agreement shall be binding upon and
shall inure to the benefit of the Executive, the
Executive’s heirs and legal representatives, and
the Corporation and its successors.
	 
	 	7.	 	Amendment or Modification; Waiver. No
provision of this Agreement may be amended,
modified or waived unless such amendment,
modification or waiver shall be authorized by
the Board (and, if the Corporation is still
operating under Chapter 11, the Bankruptcy
Court) or any authorized committee of the Board
and shall be agreed to in writing, signed by the
Executive and by an officer of the Corporation
thereunto duly authorized. Except as otherwise
specifically provided in

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	 	 	 	this Agreement, no waiver by either party hereto
of any breach by the other party hereto of any
condition or provision of this Agreement to be
performed by such other party shall be deemed a
waiver of a subsequent breach of such condition
or provision or a waiver of a similar or
dissimilar provision or condition at the same
time or at any prior or subsequent time.
	 
	 	8.	 	Miscellaneous.

	 	(a)	 	This Agreement shall be governed by and
construed in accordance with the laws of the
State of Ohio, without reference to principles
of conflict of laws, and exclusive venue and
jurisdiction shall lie in any federal or state
court located in Ohio. The captions of this
Agreement are not part of the provisions hereof
and shall have no force or effect.
	 
	 	(b)	 	All notices and other communications
hereunder shall be in writing and shall be given
by hand delivery to the other party or by
registered or certified mail, return receipt
requested, postage prepaid, addressed as
follows:
	 
	 	 	 	If to the Executive, at the most recent address
for the Executive in the GmbH records,

	 	 	 	If to the Corporation:

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	 	 	 	Dana Corporation

P.O. Box 1000

Toledo, Ohio 43697

Attention: Secretary
	 
	 	 	 	or to such other address as either party shall
have furnished to the other in writing in
accordance herewith. Notice and communications
shall be effective when actually received by the
addressee.
	 
	 	(c)	 	The English language version of this
Agreement shall govern, notwithstanding the
existence of the German language translation
which serves information purposes only.
	 
	 	(d)	 	The invalidity or unenforceability of any
provision of this Agreement shall not affect the
validity or enforceability of any other
provision of this Agreement. The Executive
agrees that the fact of his employment under the
German Agreement, as concluded between him and
the GmbH, may raise issues of interpretation of
this Agreement. The Executive agrees that in
such case the interpretation of this Agreement
shall be made in such way that the economic
purpose of this Agreement is approximated in the
best possible way and that there is no
duplication of benefits to the Executive should
the Executive be entitled under the German
Agreement to any payment or benefit which is
also provided

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	 	 	 	under this Agreement with a comparable intent.
	 
	 	(e)	 	The Corporation may withhold from any
amounts payable under this Agreement such
Federal, state or local taxes as it determines
is required to be withheld pursuant to any
applicable law or regulation. The same shall
apply with respect to the GmbH, and the
Executive shall undertake to correctly and in a
timely manner inform the GmbH of any payments
under this Agreement of relevance for the German
Agreement and the German payroll calculation.
	 
	 	(f)	 	This Agreement (including exhibits hereto)
contain the entire agreement of the parties
concerning the subject matter hereof, and all
promises, representations, understandings,
arrangements and prior agreements concerning the
subject matter are merged herein and superseded
hereby.
	 
	 	(g)	 	No right, benefit or interest hereunder,
shall be subject to anticipation, alienation,
sale, assignment, encumbrance, charge, pledge,
hypothecation, or set-off in respect of any
claim, debt or obligation, or to execution,
attachment, levy or similar process, or
assignment by operation of law. Any attempt,
voluntary or involuntary, to

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	 	 	 	effect any action specified in the immediately
preceding sentence shall, to the full extent
permitted by law, be null, void and of no
effect.
	 
	 	(h)	 	Nothing contained in this Agreement shall
create or be construed to create a trust of any
kind, or a fiduciary relationship between the
Corporation and the Executive or any other
person.
	 
	 	(i)	 	To the extent necessary to effectuate the
terms of this Agreement, the terms of this
Agreement (and the exhibits) which must survive
the termination of the Executive’s employment or
the termination of this Agreement (and the
exhibits) shall so survive.
	 
	 	(j)	 	In the event of the Executive’s death or a
judicial determination of Executive’s
incompetence, reference in this Agreement to the
Executive shall be deemed, where appropriate, to
refer to Executive’s legal representative or,
where appropriate, to Executive’s beneficiary.
	 
	 	(k)	 	If any event provided for in this Agreement
is scheduled to take place on a legal holiday,
such event shall take place on the next
succeeding day that is not a legal holiday.
Where appropriate, this provision shall refer to
German legal

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	 	 	 	holidays.
	 
	 	(l)	 	Section 409A of the Code. To the extent
applicable, it is intended that this Agreement
comply with the provisions of Section 409A of
the Code. This Agreement shall be administered
in a manner consistent with this intent, and any
provision that would cause the Agreement to fail
to satisfy Section 409A of the Code shall have
no force and effect until amended to comply with
Section 409A of the Code (which amendment may be
retroactive to the extent permitted by Section
409A and may be made by the Corporation without
the consent of the Executive).
	 
	 	(m)	 	To the extent this Agreement is inconsistent
with the terms and conditions of the Order, the
Order shall govern.

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	 	 	 	IN WITNESS WHEREOF, the Corporation has caused this Agreement to be signed by
its duly authorized representative, and the Executive has executed this
Agreement, as of the day and year first written above.

	 	 	 	 	 	 	 
	 	 	DANA CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Chairman, Compensation Committee/

Vorsitzender, Gehaltsausschuss	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ R. Göttel	 	 
	 	 	 	 	 
	 	 	Ralf Göttel	 	 

19EX-10(Z)(1)

 

			
	EXECUTION VERSION
	 	Exhibit 10-Z(1)

Dated 18 July 2007

	 
	(1)	 	DANA EUROPE FINANCING (IRELAND) LIMITED, as Borrower
	 
	(2)	 	DANA INTERNATIONAL LUXEMBOURG SARL, as Servicer
	 
	(3)	 	The persons from time to time party hereto as Lenders
	 
	(4)	 	GE LEVERAGED LOANS LIMITED, as Administrative Agent
	 
	(5)	 	DANA INTERNATIONAL LUXEMBOURG SARL, as Performance Undertaking Provider

 

RECEIVABLES LOAN AGREEMENT

 

 

LONDON

 

 

CONTENTS

	 	 	 	 	 
	Clause	 	Page	 
	 
	 	 	 	 
	1. Definitions
	 	 	1	 
	2. Amounts and terms of the Loans
	 	 	2	 
	3. Conditions to Borrowings
	 	 	23	 
	4. Representations and warranties
	 	 	25	 
	5. Covenants
	 	 	29	 
	6. Administration and collection of Pool Receivables
	 	 	36	 
	7. Suspension and Termination Events
	 	 	38	 
	8. The Administrative Agent
	 	 	41	 
	9. Indemnities by the Borrower
	 	 	45	 
	10. Miscellaneous
	 	 	46	 
	 
	 	 	 	 
	Schedules
	 	 	 	 
	 
	 	 	 	 
	1 Commitments
	 	 	 	 
	2 Condition Precedent Documents
	 	 	 	 
	3 Mandatory Cost Rate
	 	 	 	 

	 	 	 
	EXHIBIT A

	 	Form of Assignment and Acceptance
	EXHIBIT B

	 	Form of Borrowing Request
	EXHIBIT C

	 	Form of Prepayment Notice

 

 

THIS
AGREEMENT (this “Agreement”) is dated 18 July 2007 and made between:

	(1)	 	DANA EUROPE FINANCING (IRELAND) LIMITED, a limited liability company incorporated under the
laws of Ireland, as Borrower;
	 
	(2)	 	DANA INTERNATIONAL LUXEMBOURG SARL, a company organised under the laws of Luxembourg, as
Servicer;
	 
	(3)	 	the Lenders from time to time parties hereto;
	 
	(4)	 	GE LEVERAGED LOANS LIMITED, as Administrative Agent; and
	 
	(5)	 	DANA INTERNATIONAL LUXEMBOURG SARL, a company organised under the laws of Luxembourg, as
Performance Undertaking Provider.

BACKGROUND:

	(A)	 	The Borrower and the other Purchasers shall from time to time acquire certain Receivables and
any Related Security with respect thereto from the Originators pursuant to Originator Sale
Agreements.
	 
	(B)	 	In the case of Receivables and Related Security acquired by Purchasers other than the
Borrower, the Borrower will make loans secured by, or otherwise acquire Borrower Receivables
Interests in, such Receivables and Related Security from such other Purchasers pursuant to the
Intermediate Transfer Agreements.
	 
	(C)	 	The Borrower shall charge or otherwise pledge as security all of its right, title and
interest in such Receivables and Related Security, Borrower Receivables Interests, the
Borrower Operating Accounts and any other Collateral to or for the benefit of the Secured
Parties pursuant to the Security Documents.
	 
	(D)	 	To fund its acquisitions under the Originator Sale Agreements and Intermediate Transfer
Agreements, as the case may be, the Borrower may from time to time request Loans from the
Lenders on the terms and conditions of this Agreement.
	 
	(E)	 	The Lenders have agreed that they shall make Loans in any Approved Currency so requested from
time to time, subject to the terms and conditions of this Agreement.

IT IS AGREED that:

	1.	 	DEFINITIONS
	 
	1.1	 	Certain defined terms
	 
	 	 	Unless otherwise defined herein, capitalised terms which are used herein shall have the
meanings assigned to such terms in Clause 2.1 (Certain defined terms) of the Master Schedule
of Definitions, Interpretation and Construction, dated    2007 and signed by the parties hereto
and others for the purposes of identification (the “Schedule of Definitions”). In the case
of any inconsistency between such terms and the terms defined in this Agreement, the terms
defined in this Agreement shall prevail for all purpose of this Agreement.

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	1.2	 	Other terms
	 
	 	 	The principles of interpretation set forth in Clauses 2.2 (Other terms) and 2.3 (Computation
of time periods) of the Schedule of Definitions shall apply to this Agreement as if fully
set forth herein.
	 
	2.	 	AMOUNTS AND TERMS OF THE LOANS
	 
	2.1	 	The Loans

	 	(a)	 	On the terms and subject to the conditions hereof, on the Closing Date and
thereafter from time to time prior to the Facility Termination Date, each Lender shall
make Loans to the Borrower in an amount in any Approved Currency equal to its Pro Rata
Share of the amount requested by the Borrower pursuant to Clause 2.2 (Borrowing
procedures); provided that, after giving effect to such Loans:

	 	(i)	 	the Euro Equivalent of the aggregate outstanding principal
amount of the Loans made by any Lender shall not exceed such Lender’s
Commitment; and
	 
	 	(ii)	 	the Aggregate Principal Balance will not exceed the Maximum
Aggregate Principal Balance.

	 	 	 	Each Borrowing hereunder shall be in a minimum principal amount equal to such amount
as will ensure that (A) no Borrowing would be less than €1,000,000 and no
Borrowing denominated in a Local Currency would be less than €250,000 (or the
Euro Equivalent thereof). Subject to the foregoing and to the limitations set forth
herein, the Borrower may borrow, prepay and reborrow the Loans hereunder.
	 
	 	(b)	 	The Performance Undertaking Provider may, from time to time upon at least five
(5) Business Days prior written notice to the Administrative Agent and each Lender,
elect to reduce the Facility Limit; provided, that the Facility Limit may not be
reduced below €25,000,000 unless the Facility Limit is reduced to €0; provided,
further, that after giving effect to any such reduction and any principal payments on
such date, the Aggregate Principal Balance will not exceed the Maximum Aggregate
Principal Balance. Any such reduction shall reduce each Lender’s Commitment ratably in
accordance with each Lender’s Pro Rata Share. Once the Facility Limit is reduced
pursuant to this Clause 2.1(b) it may subsequently be reinstated only by increasing,
with the prior written consent of the relevant Lenders and the Administrative Agent,
the Commitment of one or more Lenders.

	2.2	 	Borrowing procedures

	 	(a)	 	Borrowing Request.

	 	(i)	 	The Borrower shall request a Borrowing hereunder by submitting
(or causing the Servicer to submit on behalf of the Borrower) to the
Administrative Agent a written notice, substantially in the form of

2

 

	 	 	 	Exhibit B (Form of Borrowing Request) (each, a
“Borrowing Request”) prior to
2:00 p.m. (London time) on the third Business Day prior to the date of the
proposed Borrowing (each, a “Borrowing Date”) or such other times agreed
upon by the Borrower, the Servicer and the Administrative Agent.

	 	(ii)	 	Each Borrowing Request shall, among other things (A) specify
(I) the desired Approved Currencies for the requested Borrowing, determined in
accordance with Clause 2.2(d), (II) for each such Approved Currency, the amount
of the requested Borrowing and the Spot Rate (used for the purposes of the
Daily Report in connection with which such Borrowing Request is delivered) with
respect to each such Approved Currency, (III) the Aggregate Principal Balance
after giving effect to such Borrowing, and (IV) the desired Borrowing Date
(which shall be an Intra-Month Settlement Date (or such other date as may be
agreed by the Borrower, the Servicer and the Administrative Agent)), and (B)
certify that, after giving effect to the proposed Borrowing, the Aggregate
Principal Balance will not exceed the Maximum Aggregate Principal Balance on
such Borrowing Date. Each Borrowing Request shall be irrevocable and binding
on the Borrower.

	 	(b)	 	Lender’s Commitment.

	 	(i)	 	Any Loan requested by the Borrower in a Borrowing Request shall
be made by the Lenders on a pro rata basis in accordance with their respective
Pro Rata Shares of such Loan.
	 
	 	(ii)	 	The obligations of any Lender to make Loans hereunder are
several from the obligations of any other Lenders. The failure of any Lender
to make Loans hereunder shall not release the obligations of any other Lender
to make Loans hereunder, but no Lender shall be responsible for the failure of
any other Lender to make any Loan hereunder.
	 
	 	(iii)	 	Notwithstanding anything herein to the contrary, a Lender
shall not be obligated to fund any Loan at any time on or after the Facility
Termination Date, at any time a Facility Event exists or would exist after
making such Loan, or if, after giving effect thereto (A) the Euro Equivalent of
the aggregate outstanding principal balance of the Loans made by such Lender
would exceed such Lender’s Commitment (B) the Aggregate Principal Balance will
exceed the Maximum Aggregate Principal Balance.
	 
	 	(iv)	 	In the event that the initial Borrowing does not occur before
the date falling three (3) months after the date of this Agreement the
Commitments of the Lenders shall be immediately cancelled on that date.

	 	(c)	 	Disbursement of Funds.
	 
	 	 	 	By no later than 11:00 a.m. (London time) on each Borrowing Date, each Lender shall
remit its Pro Rata Share of the aggregate amount of the Loans

3

 

	 	 	 	requested by the Borrower as determined above in immediately available funds to the
account specified by the Administrative Agent. To the extent that it is in actual
receipt of such funds from each Lender, the Administrative Agent shall remit the
amount of the Loans requested by the Borrower to the account specified by the
Borrower in the relevant Borrowing Request by wire transfer of same day funds. In
the event that one or more such Lenders fails to remit such Pro Rata Share (a “Loan
Deficit”) as required hereunder (each, a “Defaulting Lender”), GE and any other
non-defaulting Lenders who agree to fund the whole or part of their Pro Rata Share
of any Loan Deficit (each, a “Non-Defaulting Lender”) shall lend their Pro Rata
Share of such Loan Deficit (without giving effect to such Defaulting Lender’s
Commitment) subject to the other terms and conditions hereof (including Clause
2.2(b)(iii) (Lender’s Commitment)).
	 
	 	 	 	Notwithstanding anything herein to the contrary, each Non-Defaulting Lender shall
have the right, without the consent of any Transaction Party, any other Lender or
the Administrative Agent, to assign to any such Defaulting Lender, upon demand, the
portion of the Loan funded by such Non-Defaulting Lender pursuant to this Clause
2.2(c) for an amount equal to the outstanding principal amount of such portion of
the Loan funded by such Non-Defaulting Lender.
	 
	 	(d)	 	Denomination of Loans.

	 	(i)	 	Each Loan made by the Lenders hereunder shall be denominated in
an Approved Currency. Notwithstanding anything herein or in any other
Transaction Document to the contrary, the Borrower shall not request any Loan,
and the Lenders shall not be obligated to make any Loan, hereunder if, after
giving effect thereto, the Euro Equivalent of the aggregate Principal Balance
of the Loans held by the Lenders in each Approved Currency would exceed the
product of (A) the Currency Percentage for such Approved Currency set forth in
the most recent Portfolio Report delivered under the Servicing Agreement and
(B) the Maximum Aggregate Principal Balance, as determined by reference to the
most recent Portfolio Report delivered under the Servicing Agreement.
	 
	 	(ii)	 	On each Intra-Month Settlement Date, the Borrower shall, to the
extent necessary, make such prepayments and new Borrowings hereunder as may be
necessary to cause the Euro Equivalent of the aggregate Principal Balance of
the Loans held by the Lenders in each Approved Currency to be equal to or less
than the product of (A) the Currency Percentage for such Approved Currency set
forth in the most recent Portfolio Report delivered under the Servicing
Agreement and (B) the Maximum Aggregate Principal Balance, as determined by
reference to the most recent Portfolio Report delivered under the Servicing
Agreement.

	 	(e)	 	Redenomination of Local Currencies.

	 	(i)	 	Each obligation of any party to this Agreement to make a
payment denominated in the national currency unit of any member state of the

4

 

	 	 	 	European Union that adopts the Euro as its lawful currency after the date
hereof shall be redenominated into Euro at the time of such adoption (in
accordance with the EMU Legislation). If, in relation to the currency of
any such member state, the basis of accrual of interest expressed in this
Agreement in respect of that currency shall be inconsistent with any
convention or practice in the London Interbank Market for the basis of
accrual of interest in respect of the Euro, such expressed basis shall be
replaced by such convention or practice with effect from the date on which
such member state adopts the Euro as its lawful currency; provided that if
any Borrowing in the currency of such member state is outstanding
immediately prior to such date, such replacement shall take effect, with
respect to such Borrowing, at the end of the then current Interest Period.

	 	(ii)	 	Without prejudice and in addition to any method of conversion
or rounding prescribed by any EMU Legislation and (A) without limiting the
liability of the Borrower for any amount due under this Agreement and (B)
without increasing any Commitment of any Lender, all references in this
Agreement to minimum amounts (or integral multiples thereof) denominated in the
national currency unit of any member state of the European Union that adopts
the Euro as its lawful currency after the date hereof shall, immediately upon
such adoption, be replaced by references to such minimum amounts (or integral
multiples thereof) as shall be specified herein with respect to Borrowings
denominated in Euro.
	 
	 	(iii)	 	Each provision of this Agreement shall be subject to such
reasonable changes of construction as the Administrative Agent may from time to
time agree with the Performance Undertaking Provider to be appropriate to
reflect the adoption of the Euro by any member state of the European Union and
any relevant market conventions or practices relating to the Euro.

	 
	2.3	 	Use of proceeds
	 
	 	 	The Borrower shall use the proceeds of the Loans only to (a) pay the purchase price for
Receivables or otherwise acquire Borrower Receivables Interest, in each case, pursuant to
and in accordance with the terms of the Originator Sale Agreements and Intermediate Transfer
Agreements, (b) refinance Loans denominated in one Approved Currency with Loans denominated
in another Approved Currency for the purpose of satisfying the requirements set forth in
Clause 2.2(d) (Denomination of Loans), (c) pay transaction fees, costs and expenses incurred
in connection with the consummation of the transactions contemplated by the Transaction
Documents and (d) make payments of principal and interest in respect of the Subordinated
Loan pursuant to the Subordinated Loan Agreement to the extent that such proceeds when
applied as Collections pursuant to Clause 2.6 (Application of Collection prior to Facility
Termination Date) are available for such application in accordance with Clause 2.6(g)(iii);
provided, that, notwithstanding anything herein or in any other Transaction Document to the
contrary, the Borrower shall not use all or any portion of the proceeds of any Loan to pay
the purchase price for, or grant or otherwise acquire Borrower Receivables Interests in, any
Receivable (i) if a Daily Report has not been

5

 

	 	 	delivered on such day pursuant to and in accordance with Clause 2.3 (Reporting requirements)
of the Servicing Agreement, or (ii) that was originated by an Originator with respect to
which a Seller Event has occurred and is continuing.

	2.4	 	Interest and Fees

	 	(a)	 	On each Monthly Settlement Date for a Loan, the Borrower shall pay (in
immediately available funds in the currency of such Loan) to the Administrative Agent,
all accrued and unpaid Interest with respect to such Loan.
	 
	 	(b)	 	The Borrower shall pay to the Administrative Agent for and on behalf of itself,
the Structuring Agent and the Lenders certain Fees in the amounts and on the dates set
forth in (i) the fee agreement of even date herewith between the Borrower, the
Performance Undertaking Provider and the Administrative Agent (the “Administrative
Agent Fee Letter”), (ii) the fee agreement of date herewith between the Performance
Undertaking Provider and the Structuring Agent (the “Structuring Agent Fee Letter”) and
(iii) the fee agreement of even date herewith between the Borrower, the Performance
Undertaking Provider, the Administrative Agent and the Lenders (the “Lender Fee
Letter”).

	2.5	 	Payment and prepayment of Loans

	 	(a)	 	The Borrower shall repay the outstanding principal amount of each Loan on the
Maturity Date. Prior thereto, the Borrower:

	 	(i)	 	shall, immediately upon any acceleration of the Loans pursuant
to Clause 7.3 (Acceleration of maturity), repay the amount of the Loans to the
extent so accelerated;
	 
	 	(ii)	 	shall, if on any date the Aggregate Principal Balance exceeds
the Maximum Aggregate Principal Balance, as determined by reference to the most
recent Portfolio Report delivered under the Servicing Agreement, make a
prepayment of the Loans on such date (which prepayment shall be effected by
making a deposit to the applicable Borrower Operating Account (Principal) for
application in accordance with Clause 2.6 (Application of Collections prior to
Facility Termination Date) or Clause 2.7 (Application of Collections after
Facility Termination Date), as applicable) in an amount sufficient to cause the
Aggregate Principal Balance to be less than or equal to the Maximum Aggregate
Principal Balance, as determined by reference to such Portfolio Report;
	 
	 	(iii)	 	shall, if on any date the Euro Equivalent of the aggregate
outstanding principal amount of the Loans for all Lenders exceeds the Maximum
Aggregate Principal Balance, make a prepayment of the Loans on such date (which
prepayment shall be effected by making a deposit to the applicable Borrower
Operating Account (Principal) for application in accordance with Clause 2.6
(Application of Collections prior to Facility Termination Date) or Clause 2.7
(Application of Collections

6

 

	 	 	 	after Facility Termination Date), as applicable) in an amount sufficient to
cause the Euro Equivalent of the aggregate outstanding principal amount of
the Loans for all Lenders to be less than or equal to the Maximum Aggregate
Principal Balance;
	 
	 	(iv)	 	from and after the Facility Termination Date, shall repay the
Loans out of Collections available for such purpose pursuant to Clause 2.7
(Application of Collections after Facility Termination Date); and
	 
	 	(v)	 	shall prepay the Loans in the manner specified in, and to the
extent required by, Clause 2.2(d) (Denomination of Loans).

	 	(b)	 	The Borrower may, at its option after consultation with the Performance
Undertaking Provider, prepay on any Business Day all or any portion of the Loans upon
prior written notice delivered by it to each Lender not later than five (5) Business
Days prior to the date of such payment. Each such notice shall be in the form attached
as Exhibit C (Form of Prepayment Notice) and shall (i) specify the aggregate amount and
Approved Currency of the prepayment to be made on the Loans and the Loans to which such
prepayment is to be applied and (ii) specify the Business Day on which the Borrower
will make such prepayment. Each such prepayment shall be made ratably among the
Lenders based on the Aggregate Principal Balance of the Loans held by each.
	 
	 	(c)	 	If:

	 	(i)	 	any amendment or waiver that requires the consent of the
Required Lenders does not receive the consent of the Required Lenders, but does
receive the consent of Lenders representing more than 51% of the Aggregate
Commitments or, if the Commitments have been terminated, Lenders that
represented more than 51% of the Aggregate Commitments immediately prior to
such termination (any Lender that voted or was deemed to have voted against
such amendment or waiver a “Dissenting Lender”);
	 
	 	(ii)	 	any sum payable to any Lender by the Borrower is required to be
increased under Clause 2.15(a) (Indemnity for Taxes);
	 
	 	(iii)	 	any Lender claims indemnification from the Borrower under
Clause 2.15(c) (Indemnity for Taxes), Clause 2.14 (Indemnity for reserves and
expenses) or Clause 2.17 (Mandatory costs);
	 
	 	(iv)	 	any Lender’s Loans are converted into Alternative Rate Loans
under Clause 2.12(a) (Illegality);
	 
	 	(v)	 	any Lender becomes a Defaulting Lender under Clause 2.2(c)
(Disbursement of Funds),

	 	 	 	the Borrower may, at its option after consultation with the Performance Undertaking
Provider:

7

 

	 	(A)	 	prepay on any Business Day upon prior written notice delivered
by it to the Administrative Agent not later than five (5) Business Days prior
to the date of such payment all, and not just a portion of, the participation
in the Loans of any Dissenting Lender or Defaulting Lender or, as the case may
be, whilst the circumstance giving rise to the requirement, indemnification or
conversion continues, of any Lender to whom payments are required to be
increased or that is claiming indemnification or whose Eurocurrency Loans have
been converted into Alternative Rate Loans pursuant to the clauses mentioned
above. The Commitment of such Lender shall be automatically cancelled upon
delivery to the Administrative Agent of the Borrower’s prepayment notice. Each
such notice shall be in the form attached as Exhibit C (Form of Prepayment
Notice) and shall specify (i) the Lender whose participation in the Loans is to
be prepaid, (ii) the aggregate amount and Approved Currency of the prepayment
to be made on the Loans and the Loans to which such prepayment is to be applied
and (iii) the Business Day on which the Borrower will make such prepayment; or
	 
	 	(B)	 	on five (5) Business Days’ prior written notice to the
Administrative Agent and such Lender, replace such Lender by requiring such
Lender to (and such Lender shall) transfer pursuant to Clause 10.3
(Assignability) all (and not part only) of its rights and obligations under
this Agreement to a Lender or other Eligible Assignee (a “Replacement Lender”)
selected by the Performance Undertaking Provider, and which is acceptable to
the Administrative Agent (acting reasonably), which confirms its willingness to
assume and does assume all the obligations of the transferring Lender
(including the assumption of the transferring Lender’s participations on the
same basis as the transferring Lender) for a purchase price in cash payable at
the time of transfer equal to the outstanding principal amount of such Lender’s
participation in the Aggregate Principal Balance and all accrued Interest
and/or Liquidation Fees, break costs and other amounts payable in relation
thereto under the Transaction Documents. The replacement of a Lender pursuant
to this Clause shall be subject to the following conditions:

	 	(I)	 	neither the Borrower nor the Performance
Undertaking Provider shall have any right to replace the Administrative
Agent;
	 
	 	(II)	 	neither the Administrative Agent nor the Lender
shall have any obligation to the Borrower or the Performance
Undertaking Provider to find a Replacement Lender;
	 
	 	(III)	 	in the event of a replacement of a Dissenting
Lender such replacement must take place no later than 90 days after the
date the Dissenting Lender notifies the Borrower and the Administrative
Agent of its failure or refusal to agree to any consent, waiver or
amendment to the Transaction Documents requested by the Borrower; and

8

 

	 	(IV)	 	in no event shall the Lender replaced under
this Clause 2.5(c)(B) be required to pay or surrender to such
Replacement Lender any of the fees received by such Lender pursuant to
the Transaction Documents.

	 	(d)	 	Each prepayment of the Loans (whether optional or mandatory) must be
accompanied by a payment of all accrued and unpaid Interest on the amount prepaid and
any other amounts (including amounts payable under Clause 2.11 (Breakage costs)) due
hereunder in respect of such prepayment.

	2.6	 	Application of Collections prior to Facility Termination Date

	 	(a)	 	On each Business Day prior to the Facility Termination Date, the Borrower shall
(and shall cause the Servicer to) cause:

	 	(i)	 	(x) all Collections and other amounts deposited into any
Existing Collection Account (other than any amount deposited into an Existing
Collection Account solely for the purpose of funding an Other Permitted
Payment), and (y) any Collections or other amounts otherwise received by any
Transaction Party in respect of the Receivables, in each case, to be deposited
into a New Collection Account no later than the Business Day immediately
following the day on which such amounts were deposited into such Existing
Collection Accounts or otherwise received;
	 
	 	(ii)	 	all Collections and other amounts deposited into any New
Collection Account to be deposited into a Borrower Operating Account no later
than the Business Day immediately following the day on which such amounts were
deposited into such New Collection Accounts; and
	 
	 	(iii)	 	(x) all Collections and other amounts in respect of the Pool
Receivables, the Related Security or the Collateral deposited to any Borrower
Operating Account to be retained in such Borrower Operating Account, and (y)
all other amounts deposited to any Borrower Operating Account to be deposited
to the applicable Originator’s Designated Account, in each case, no later than
the second (2nd) Business Day immediately following the day on which
such amounts were identified by the Borrower (or the Servicer on behalf of the
Borrower) as having been deposited into such New Collection Accounts.

	 	(b)	 	On each Business Day prior to the Facility Termination Date, the Borrower shall
(and shall cause the Servicer to) cause all Collections retained in such Borrower
Operating Accounts pursuant to Clause 2.6(a)(ii) (including, if applicable, any
investment earnings received with respect to funds on deposit in such Borrower
Operating Accounts) to be applied in the following order of priority:

	 	(i)	 	on a pro rata basis in no order of priority amongst themselves:

9

 

	 	(A)	 	pay all operating costs, expenses, Agreed
Annual Income and Taxes of the Borrower and the Spanish Account SPV
then due and payable, as instructed by the Borrower or the Spanish
Account SPV; provided that the aggregate amount so paid during any
calendar year pursuant to this Clause 2.6(b)(i)(A) shall not exceed
€100,000;
	 
	 	(B)	 	deposit to the Borrower Operating Account
(Interest) for the benefit of the Administrative Agent an amount equal
to (i) any Fees then due and payable to the Administrative Agent
pursuant to the Administrative Agent Fee Letter, and (ii) any
unreimbursed Transaction Party Obligations then due and payable to the
Administrative Agent in respect of costs and expenses incurred in
connection with the enforcement of any Transaction Document or the
collection of any amounts due thereunder; and
	 
	 	(C)	 	deposit to the Borrower Operating Account
(Interest) for the benefit of the Lenders, an amount equal to the
aggregate Interest and Fees accrued through such day and not previously
deposited to a Borrower Operating Account (Interest) (such amount to be
allocated among the Lenders ratably in accordance with the proportion
of such amounts owing to each such Person) (provided, that for purposes
of determining the amount of Interest and Fees accrued through (x) any
day (other than a day described in sub-clause (y) below), such
determination shall be made based on the relevant rate, percentage or
other item or amount as of the immediately preceding Monthly Settlement
Date, unless the actual rate, percentage or other item or amount has
been notified to the Borrower and the Servicer, and (y) any day falling
prior to the initial Monthly Settlement Date, any such determination
shall be made on a basis agreed between the Borrower, the Servicer and
the Administrative Agent);

	 	(ii)	 	if the Aggregate Principal Balance exceeds the Maximum
Aggregate Principal Balance as determined by reference to the most recent
Portfolio Report delivered under the Servicing Agreement, deposit to the
applicable Borrower Operating Account (Principal) an amount necessary to cause
the Aggregate Principal Balance to be less than or equal to the Maximum
Aggregate Principal Balance, as determined by reference to such Portfolio
Report;
	 
	 	(iii)	 	if any Transaction Party Obligations (other than any amount
described in Clauses 2.6(b)(i) and (ii)) are then due and payable by the
Borrower to any Secured Party, pay to each such Secured Party (ratably in
accordance with the amounts owing to each) the Transaction Party Obligations so
due and payable (in the currency in which such Transaction Party Obligations
are payable);

10

 

	 	(iv)	 	retain in one or more Borrower Operating Accounts for the
benefit of the Servicer, an amount equal to the aggregate Servicing Fee accrued
through such day and not previously retained for such purpose pursuant to this
sub-clause (iv);
	 
	 	(v)	 	pay all operating costs, expenses, Agreed Annual Income and
Taxes of the Borrower and the Spanish Account SPV then due and payable and not
paid pursuant to Clause 2.6(b)(i)(A) above, as instructed by the Borrower or
the Spanish Account SPV, as the case may be;
	 
	 	(vi)	 	pay to the Servicer, for the benefit of the applicable Italian
Originators, an amount equal to any unreimbursed RIBA Advances; and
	 
	 	(vii)	 	remit any remaining Collections to the Borrower for
application in accordance with Clause 2.6(g) below (any such remittance, a
“Release”); provided that, if the conditions precedent for such Release set
forth in Clause 3.2 (Conditions precedent to all borrowings and releases) are
not satisfied, the Borrower shall (and shall cause the Servicer to) cause any
such remaining Collections to be retained in the Borrower Operating Accounts
and shall apply such Collections in accordance with this Clause 2.6 or Clause
2.7 (Application of Collections after Facility Termination Date) on the next
Business Day.

	(c) 	(i) 	 	On each Monthly Settlement Date, the Borrower shall (and shall cause the
Servicer to) pay to the Administrative Agent for the account of the Lenders all
Interest accrued during the relevant calendar month from Collections deposited to the
Borrower Operating Account (Interest) for such purpose pursuant to Clause 2.6(b)(i)(C).
	 
	 	(ii)	 	On each date on which any Fees are payable pursuant to the Fee
Letters, the Borrower shall (and shall cause the Servicer to) pay such Fees to
the Persons entitled thereto pursuant to the Fee Letters out of Collections
deposited to the Borrower Operating Account (Interest) for such purpose
pursuant to Clauses 2.6(b)(i)(B) and 2.6(b)(i)(C), as applicable.
	 
	 	(iii)	 	Notwithstanding anything to the contrary in Clause
2.6(b)(i)(C), it is understood and agreed that the Interest and Fees payable
hereunder will be based on the actual rates, percentages, and other items and
amounts during the relevant period. In the event that the amount allocated
during any relevant period in respect of Interest and Fees pursuant to Clause
2.6(b)(i)(C) is (A) greater than the actual Interest and Fees for such period,
the excess shall (on the relevant date of determination) be deposited to one or
more Borrower Operating Accounts and applied in accordance with Clause 2.6(b)
and (B) less than the actual Interest and Fees for such period, the Borrower
shall (and shall cause the Servicer to) cause an additional amount equal to
such shortfall to be deposited into the applicable Borrower Operating Account
(Interest) (on the relevant date of determination).

11

 

	 	(d)	 	To the extent practicable, the Servicer shall cause all Collections applied
pursuant to Clause 2.6(b) in respect of any Transaction Party Obligations to be
denominated in the same currency in which such Transaction Party Obligations are
payable. To the extent that Transaction Party Obligations payable or to become payable
in any currency exceed the amount of Collections in that currency and available for
such payment, and Collections in any other currency are available (after giving effect
to the order of priority set forth in Clause 2.6(b)) for such payment, the Servicer
shall allocate such other Collections to the payment of such Transaction Party
Obligations, and on the relevant payment date the Servicer shall cause such other
Collections to be converted into the relevant currency of payment in accordance with
Clause 2.16 (Conversion of Currencies) and shall apply the amounts so converted to the
making of such payment.
	 
	 	(e)	 	In the event any deposit is made to a Borrower Operating Account (Principal)
pursuant to Clause 2.6(b)(ii), the amount of such deposit shall be allocated among all
Lenders by the Administrative Agent ratably in proportion to the Aggregate Principal
Balance of the Loans held by each. On the next Settlement Date, the Borrower shall
(and shall cause the Servicer to) distribute to the Administrative Agent for payment to
each Lender its allocable share of such deposit for application to the repayment of the
Loans held by such Lender. Notwithstanding the foregoing, if on any Business Day after
such deposit is made and prior to the distribution of such deposit pursuant to this
Clause 2.6(e), the Servicer delivers a Portfolio Report with more recent data
indicating that the Aggregate Principal Balance is less than or equal to the Maximum
Aggregate Principal Balance, the Borrower may (or may cause the Servicer to) withdraw
the Collections so deposited for application in accordance with Clause 2.6(b) to the
extent that, after giving effect to such withdrawal and application, the Aggregate
Principal Balance is less than or equal to the Maximum Aggregate Principal Balance, as
determined by reference to such Portfolio Report.
	 
	 	(f)	 	On each Servicing Fee Payment Date, the Borrower shall (and shall direct the
Servicer to) pay to the Servicer the accrued and unpaid Servicing Fee allocable to it
out of Collections retained in the Borrower Operating Accounts for such purpose
pursuant to Clause 2.6(b)(iv).
	 
	 	(g)	 	Any Collections remitted to the Borrower pursuant to Clause 2.6(b)(vii) shall
be applied by the Servicer, on behalf of the Borrower:

	 	(i)	 	first, if so requested by the Borrower (acting upon the
instructions of the Servicer), to pay or prepay (or set aside for the payment
or prepayment of) Loans or other Transaction Party Obligations that are then
due and payable;
	 
	 	(ii)	 	second, to pay the purchase price for Receivables or to grant
or otherwise acquire Borrower Receivables Interests, in each case pursuant to
(and in accordance with) the Originator Sale Agreements or Intermediate
Transfer Agreements, as the case may be (provided, that, notwithstanding
anything herein or in any other Transaction Document to the contrary, the
Borrower shall not use all or any portion

12

 

	 	 	 	of the proceeds of any Release to pay the purchase price for, or grant or
otherwise acquire Borrower Receivables Interests in, any Receivable that was
originated by an Originator with respect to which a Seller Event has
occurred and is continuing);
	 
	 	(iii)	 	third, only if no Facility Event then exists or the Final
Payout Date has occurred, to make payments of principal and interest in respect
of the Subordinated Loans and any other amounts owing to the Subordinated
Lender pursuant to the Subordinated Loan Agreement; and
	 
	 	(iv)	 	fourth, in such other manner as the Borrower (acting upon the
instructions of the Servicer) may specify and that is permitted by the terms of
the Transaction Documents; provided that, if all or any portion of the
Collections remitted to the Borrower pursuant to Clause 2.6(b)(vii) are not
applied pursuant to this Clause 2.6(g), the Borrower shall (and shall cause the
Servicer to) cause any such remaining Collections to be retained in one or more
Borrower Operating Accounts and shall apply such Collections in accordance with
this Clause 2.6 or Clause 2.7 (Application of Collections after Facility
Termination Date) on the next Business Day; provided, further, that after the
Final Payout Date any funds available pursuant to this Clause 2.6(g)(iv) shall
be paid by the Borrower to the Subordinated Lender as additional interest under
the Subordinated Loan Agreement.

	 	(h)	 	Unless otherwise agreed by the Originators, in each case, to the extent
affected thereby, the amount of Collections remitted to the Borrower pursuant to Clause
2.6(b)(vii) or Clause 2.7(b)(ix) (Application of Collections after Facility Termination
Date), as the case may be, on any day shall be applied to the payment of amounts
described in Clauses 2.6(g)(ii) or Clause 2.7(d)(i) (Application of Collections after
Facility Termination Date), as applicable, on a pro rata basis according to the amounts
owing to such Persons.

	2.7	 	Application of Collections after Facility Termination Date

	 	(a)	 	On the Facility Termination Date, and on each Business Day thereafter until the
Final Payout Date, the Borrower shall (and shall cause the Servicer to) cause:

	 	(i)	 	(x) all Collections and other amounts deposited into any
Existing Collection Account, and (y) any Collections or other amounts otherwise
received by any Transaction Party in respect of the Receivables, in each case,
to be deposited into a New Collection Account no later than the Business Day
immediately following the day on which such amounts were deposited into such
Existing Collection Accounts or otherwise received;
	 
	 	(ii)	 	all Collections and other amounts deposited into any New
Collection Account to be deposited into a Borrower Operating Account no later
than the Business Day immediately following the day on which such amounts were
deposited into such New Collection Accounts; and

13

 

	 	(iii)	 	(x) all Collections and other amounts in respect of the Pool
Receivables, the Related Security or the Collateral deposited to any Borrower
Operating Account to be retained in such Borrower Operating Account, and (y)
all other amounts deposited to any Borrower Operating Account to be deposited
to the applicable Originator’s Designated Account, in each case, no later than
the second (2nd) Business Day immediately following the day on which
such amounts were identified by the Borrower (or the Servicer on behalf of the
Borrower) as having been deposited into such Borrower Operating Accounts;

	 	(b)	 	On each Settlement Date to occur on or after the Facility Termination Date, the
Borrower (or the Administrative Agent acting on behalf of the Borrower) shall cause all
funds on deposit in the Borrower Operating Accounts from time to time, including any
investment earnings received with respect to such funds, (collectively, “Borrower
Operating Account Funds”), to be distributed in the following order of priority:

	 	(i)	 	first, to pay, on a pro rata basis in no order of priority
amongst themselves:

	 	(A)	 	to the Administrative Agent an amount equal to
any unreimbursed Transaction Party Obligations then owing to the
Administrative Agent in respect of costs and expenses incurred in
connection with the enforcement of any Facility Account or Transaction
Document or the collection of any amounts due thereunder; and
	 
	 	(B)	 	all operating costs, expenses, Agreed Annual
Income and Taxes of the Borrower and the Spanish Account SPV then due
and payable, as instructed by the Borrower or the Spanish Account SPV;
provided that the aggregate amount so paid during any calendar year
pursuant to this Clause 2.7(b)(i)(B), when combined with the aggregate
amount paid during such calendar year pursuant to Clause 2.6(b)(i)(C),
shall not exceed €100,000;

	 	(ii)	 	second, if the Servicer is a Person other than a Transaction
Party or an Affiliate thereof, to pay to such Servicer the accrued and unpaid
Servicing Fee;
	 
	 	(iii)	 	third, to pay to the Lenders and the Administrative Agent an
amount equal to the aggregate accrued and unpaid Interest and Fees payable to
each such Person (ratably in accordance with the proportion of such amounts
owing to each such Person);
	 
	 	(iv)	 	fourth, to pay to the Lenders an amount equal to the Aggregate
Principal Balance of the Loans (ratably in accordance with the Euro Equivalent
of the outstanding Principal Balance of the Loans held by each);

14

 

	 	(v)	 	fifth, if any Transaction Party Obligations (other than any
amount described in Clauses 2.7(b)(i) to (iv) above are then due and payable to
any Secured Party, to pay to each such Secured Party (ratably in accordance
with the amounts owing to each) the Transaction Party Obligations so due and
payable;
	 
	 	(vi)	 	sixth, to pay all operating costs, expenses, Agreed Annual
Income and Taxes of the Borrower and the Spanish Account SPV then due and
payable and not paid pursuant to Clause 2.7(b)(i)(B) above, as instructed by
the Borrower or the Spanish Account SPV, as the case may be;
	 
	 	(vii)	 	seventh, if the Servicer is a Transaction Party or an
Affiliate thereof, pay to the Servicer the accrued and unpaid Servicing Fee;
	 
	 	(viii)	 	eighth, pay to the Servicer, for the benefit of the applicable Italian
Originators, an amount equal to any unreimbursed RIBA Advances; and
	 
	 	(ix)	 	ninth, after all Transaction Party Obligations are paid in
full, pay to the Borrower any remaining Collections for application in
accordance with Clause 2.7(d).

	 	(c)	 	To the extent practicable, the Borrower (or the Administrative Agent acting on
behalf of the Borrower) shall apply Borrower Operating Account Funds denominated in a
currency to the payment of amounts payable pursuant to Clause 2.7(b) in the same
currency. To the extent that aggregate amounts payable or to become payable in any
currency exceed the amount of Borrower Operating Account Funds denominated in that
currency and available for such payment, and Borrower Operating Account Funds
denominated in any other currency are available (after giving effect to the order of
priority set forth in Clause 2.7(b)) for such payment, the Borrower (or the
Administrative Agent acting on behalf of the Borrower) shall allocate such other
Borrower Operating Account Funds to the payment of such amount, and on the relevant
payment date the Borrower (or the Administrative Agent acting on behalf of the
Borrower) shall cause such other Borrower Operating Account Funds to be converted into
the relevant currency of payment using commercially reasonable methods and shall apply
the amounts so converted to the making of such payment.
	 
	 	(d)	 	Any Collections remitted to the Borrower pursuant to Clause 2.7(b)(ix) shall be
applied by the Servicer, on behalf of the Borrower (i) first, to make payments of
principal and interest in respect of the Subordinated Loans and any other amounts owing
to the Subordinated Lender pursuant to the Subordinated Loan Agreement; and (ii)
second, in such other manner as the Borrower may specify and that is permitted by the
terms of the Transaction Documents; provided, that after the Final Payout Date any
funds available pursuant to this Clause 2.7(d) shall be paid by the Borrower to the
Subordinated Lender as additional interest under the Subordinated Loan Agreement.

15

 

	2.8	 	Deemed Collections; application of payments

	 	(a)	 	Each of the parties hereto agrees that, unless otherwise required by contract
or applicable Law or clearly indicated by facts or circumstances or unless an Obligor
designates that a payment be applied to a specific Receivable, all Collections from an
Obligor shall be applied to the oldest Receivables (whether or not such Receivables are
Pool Receivables) of such Obligor.
	 
	 	(b)	 	If and to the extent the Administrative Agent, any Lender or any Indemnified
Party shall be required for any reason to pay over to an Obligor, any Transaction Party
or any other Person (other than in accordance herewith) any amount received on its
behalf hereunder, such amount shall be deemed not to have been so received but rather
to have been retained by the Borrower and, accordingly, the Administrative Agent, such
Lender or such Indemnified Party, as the case may be, shall have a claim against the
Borrower for such amount, payable when and to the extent that any distribution from or
on behalf of such Obligor is made in respect thereof.
	 
	 	(c)	 	If on any day a Pool Receivable or any part thereof becomes a Diluted
Receivable, the Borrower shall be deemed to have received on such day a Collection of
such Pool Receivable in the amount of such Diluted Receivable or part thereof.
	 
	 	(d)	 	If on any day it is determined that any of the representations or warranties in
Clause 4.1 (Representations and warranties of the Borrower) was untrue with respect to
a Pool Receivable or the nature of any Purchaser’s or the Administrative Agent’s
interest in such Pool Receivable, the Borrower shall be deemed to have received on such
day a Collection of such Pool Receivable in an amount equal to the Unpaid Balance
thereof.
	 
	 	(e)	 	If on any day a RIBA Dilution occurs, the Borrower shall be deemed to have
received on such day a Collection in the amount of such RIBA Dilution.
	 
	 	(f)	 	Not later than the first Business Day after the Borrower is notified in writing
or otherwise becomes aware that it has been deemed pursuant to this Clause 2.8 to have
received a Deemed Collection, the Borrower shall deposit in a Borrower Operating
Account, in same day funds, the amount of such Deemed Collection; provided that the
amount so payable by the Borrower shall not exceed the amount (if any) required (after
giving effect to any Deemed Collection to be paid by any other Transaction Party on
such day) in order to cause the Aggregate Principal Balance to be less than or equal to
the Maximum Aggregate Principal Balance. Any such amount shall be applied as a
Collection in accordance with Clauses 2.6 (Application of Collections prior to Facility
Termination Date) or 2.7 (Application of Collections after Facility Termination Date),
as applicable.

	2.9	 	Payments and computations, etc

	 	(a)	 	All amounts to be paid by the Borrower or the Servicer to the Administrative
Agent, any Lender or any other Secured Party shall be paid no later than 11:00 a.m.
(London time) on the day when due in immediately available funds

16

 

	 	 	 	(without counterclaim, setoff, deduction, defense, abatement, suspension or
deferment) to the account designated by such Person. All amounts to be deposited by
the Borrower or the Servicer into any Facility Account, the Administrative Agent’s
Account or any other account shall be deposited in immediately available funds no
later than 11:00 a.m. (London time) on the date when due.
	 
	 	(b)	 	The Borrower shall (and shall cause the Servicer to), to the extent permitted
by Law, pay interest on any amount not paid or deposited by it when due hereunder
(after as well as before judgment), at an interest rate per annum equal to the Default
Rate, payable on demand.
	 
	 	(c)	 	All computations of Interest and other amounts hereunder shall be made on the
basis of a year of 360 days for the actual number of days (including the first but
excluding the date of payment) elapsed, except that (i) computations of Interest with
respect to any amount denominated in Sterling or any amount in respect of Fees shall be
made on the basis of a year of 365 days (or 366, as applicable), and (ii) in any case
where the practice of the relevant interbank market differs, computations of interest
and Interest shall be made in accordance with that market practice. Whenever any
payment or deposit to be made hereunder shall be due on a day other than a Business
Day, such payment or deposit shall be made on the next succeeding Business Day and such
extension of time shall be included in the computation of such payment or deposit. Any
computations by the Administrative Agent or the applicable Lender of amounts payable by
the Borrower hereunder shall be binding upon the Borrower absent manifest error.
	 
	 	(d)	 	All payments of principal and interest in respect of any Loan shall be made in
the same Approved Currency as the Approved Currency in which such Loan is denominated.
All other payments to be made by the Servicer or the Borrower hereunder shall be made
solely in Euro.

	2.10	 	Consolidation

	 	(a)	 	When an Interest Period for a Loan denominated in one Approved Currency ends on
the same day as the current Interest Period for any other Loan denominated in the same
Approved Currency, those Loans will be consolidated and treated as one Loan.

	2.11	 	Breakage costs

	 	(a)	 	The Borrower shall indemnify each Lender and the Administrative Agent against
any loss, cost or expense incurred by it as a result of the failure of any Borrowing to
be made for any reason on the date specified by the Borrower pursuant to, and in
accordance with, Clause 2.2 (Borrowing procedures), (other than by reason of default,
gross negligence or wilful misconduct of that Person alone).
	 
	 	(b)	 	The Borrower further agrees to pay all Liquidation Fees associated with a
reduction of the Principal Balance of any Loan other than on an Intra-Month Settlement
Date.

17

 

	 	(c)	 	A certificate as to any loss, expense or Liquidation Fees payable pursuant to
this Clause 2.11 submitted by any Lender to the Borrower shall be conclusive in the
absence of manifest error.

	2.12	 	Illegality

	 	(a)	 	Notwithstanding any other provision of this Agreement, if the adoption of or
any change in any Law or in the interpretation or application thereof by any relevant
Official Body shall make it unlawful for any Lender to make or maintain Loans for which
Interest is calculated by reference to the Adjusted Eurocurrency Rate (each a
“Eurocurrency Loan”) as contemplated by this Agreement or to obtain in the interbank
Eurocurrency market the funds with which to make or maintain any such Eurocurrency Loan
(a) such Lender shall promptly notify the Administrative Agent, the Servicer and the
Borrower thereof, (b) the obligation of such Lender to fund or maintain Eurocurrency
Loans or continue Eurocurrency Loans as such shall forthwith be cancelled and (c) such
Lender’s Loans then outstanding as Eurocurrency Loans, if any, shall be converted on
the last day of the Interest Period for such Loans or within such earlier period as
required by Law into a Loan that accrues Interest based on the Alternative Rate (each
an “Alternative Rate Loan”).
	 
	 	(b)	 	In this Agreement, “Alternative Rate” means the rate of interest determined by
the Administrative Agent pursuant to a substitute basis for determining the rate of
interest agreed between the Administrative Agent and the Performance Undertaking
Provider, provided that if the Administrative Agent and the Performance Undertaking
Provider have not agreed a substitute basis for determining the rate of interest
hereunder within 10 Business Days of the date on which the circumstances necessitating
the determination of the Alternative Rate were notified to the Administrative Agent,
the Alternative Rate shall be that which expresses as a percentage rate per annum the
cost to that Lender of funding its participation in that Loan from whatever source it
may reasonably request.
	 
	 	(c)	 	Any substitute basis agreed pursuant to paragraph (b) above shall, with the
prior consent of all the Lenders and the Performance Undertaking Provider, be binding
on all Parties.

	2.13	 	Inability to determine Eurocurrency Rate
	 
	 	 	If prior to the commencement of any Interest Period for a Eurocurrency Loan:

	 	(a)	 	the applicable Lender determines (which determination shall be conclusive
absent manifest error) that adequate and reasonable means do not exist for ascertaining
on a timely basis the Adjusted Eurocurrency Rate or the Eurocurrency Rate, as
applicable, for such Interest Period; or
	 
	 	(b)	 	the applicable Lender determines that the Adjusted Eurocurrency Rate or the
Eurocurrency Rate, as applicable, for such Interest Period will not adequately and
fairly reflect the cost to such Lender of making or maintaining the related Loan for
such Interest Period;

18

 

	 	 	 	then, such Lender shall give notice thereof to the Borrower and the Administrative Agent by
telephone or facsimile as promptly as practicable thereafter and, until the circumstances
giving rise to such notice no longer exist any Eurocurrency Loan shall as of the last day of
the Interest Period applicable thereto be converted to or continued as an Alternative Rate
Loan.

	2.14	 	Indemnity for reserves and expenses

	 	(a)	 	If any Change in Law shall:

	 	(i)	 	impose or modify any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit
extended by, any Indemnified Party (except any such reserve requirement
reflected in the Adjusted Eurocurrency Rate or those for which payment has been
made pursuant to Clause 2.17 (Mandatory Costs)); or
	 
	 	(ii)	 	impose on any Indemnified Party (or on the U.S. market for
certificates of deposit or the London interbank market) any other cost
affecting or with respect to this Agreement or any other Transaction Document
or Eurocurrency Loans made or maintained by such Indemnified Party (except
those for which payment has been made pursuant to Clause 2.15 (Indemnity for
Taxes) or 2.17 (Mandatory Costs)) or the maintenance or financing of the Loans
hereunder, directly or indirectly;

	 	 	 	and the result of any of the foregoing shall be to increase the cost to such
Indemnified Party of making or maintaining any Loan (or of maintaining its
obligation to fund any such Loan) or to reduce the amount of any sum received or
receivable by such Indemnified Party hereunder (whether of principal, interest or
otherwise), or to reduce the rate of return from a Loan or on an Indemnified Party’s
overall capital, then on the tenth (10th) day immediately following notification
thereof pursuant to Clause 2.14(d) the Borrower will pay to such Indemnified Party
such additional amount or amounts as will compensate such Indemnified Party for such
additional costs incurred or reduction suffered.
	 
	 	(b)	 	A certificate of an Indemnified Party setting forth the amount or amounts
necessary to compensate such Indemnified Party or its holding company, as applicable,
as specified in clause (a) of this Clause 2.14 shall be delivered to the Borrower and
the Servicer and shall be conclusive absent manifest error.
	 
	 	(c)	 	Promptly after any Indemnified Party has determined that it will make a request
for compensation pursuant to this Clause 2.14, such Indemnified Party shall notify the
Borrower of such determination. Failure or delay on the part of any Indemnified Party
to demand compensation pursuant to this Clause 2.14 shall not constitute a waiver of
such Indemnified Party’s right to demand such compensation.
	 
	 	(d)	 	Notwithstanding anything in this Clause 2.14 to the contrary, the Borrower
shall not be required to pay to any Indemnified Party any amount pursuant to

19

 

	 	 	 	this Clause 2.14 to the extent (i) such amount has been fully and finally paid in
cash to such Indemnified Party pursuant to any other provision of this Agreement or
any other Transaction Document or (ii) such amounts constitute Excluded Taxes.

	2.15	 	Indemnity for Taxes

	 	(a)	 	Any and all payments by or on account of any obligation of the Borrower
hereunder shall be made free and clear of and without deduction for any Indemnified
Taxes provided that if the Borrower shall be required to deduct any Indemnified Taxes
from such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to additional
sums payable under this Clause 2.15) the recipient of such payment receives an amount
equal to the sum it would have received had no such deductions been made, (ii) the
Borrower shall make such deductions, and (iii) the Borrower shall pay the full amount
deducted to the relevant Official Body in accordance with applicable Law.
	 
	 	(b)	 	The Borrower is not required to make an increased payment to a Lender under
paragraph (a) above, if on the date on which the payment falls due the payment could
have been made to the relevant Lender without a deduction for Indemnified Taxes if it
was a Qualifying Lender, but on that date that Lender is not or has ceased to be a
Qualifying Lender other than as a result of any change in Law after the date it became
a Lender under this Agreement.
	 
	 	(c)	 	The Borrower shall indemnify each Indemnified Party within ten (10) days after
written demand therefor, for the full amount of any Indemnified Taxes paid by such
Indemnified Party on or with respect to any payment by or on account of any obligation
of the Borrower hereunder (including Indemnified Taxes imposed or asserted on or
attributable to amounts payable under this Clause 2.15) and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto. A certificate as to the
amount of such payment or liability delivered to the Borrower by an Indemnified Party,
or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be
conclusive absent manifest error.
	 
	 	(d)	 	As soon as practicable after any payment of Indemnified Taxes by the Borrower
to an Official Body, the Borrower shall deliver to the applicable Person the original
or a certified copy of a receipt issued by such Official Body evidencing such payment,
a copy of the return reporting such payment or other evidence of such payment
reasonably satisfactory to such Person.
	 
	 	(e)	 	Any Foreign Lender that is entitled to an exemption from or reduction of
withholding Tax under the law of the jurisdiction in which the Borrower is located, or
any treaty to which such jurisdiction is a party, with respect to payments under this
Agreement shall deliver to the Borrower (with a copy to the Administrative Agent) and
file with the appropriate Official Body (if required), at the time or times prescribed
by applicable Law, such properly completed and executed documentation prescribed by
applicable Law or reasonably requested by the Borrower as will permit such payments to
be made without withholding or at a reduced rate.

20

 

	 	(f)	 	If the Borrower makes a payment to an Indemnified Party under this Clause 2.15
and the relevant Indemnified Party determines that:

	 	(i)	 	a Tax Credit is attributable to such payment; and
	 
	 	(ii)	 	that Indemnified Party has obtained, utilised and retained that
Tax Credit, that Indemnified Party shall pay an amount to the Borrower which
that Indemnified Party determines will leave it (after that payment) in the
same after-Tax position as it would have been in had the payment not been
required to be made by the Borrower. For the purpose of this Clause 2.15(f)
“Tax Credit” means a credit against, relief on remission for, or repayment of,
any tax.

	 	 	 	This Clause 2.15 shall not be construed to require any Indemnified Party to make
available its Tax returns (or any other information relating to its Taxes which it
deems confidential) to the Borrower or any other Person.
	 
	 	(g)	 	Notwithstanding anything in this Clause 2.15 to the contrary, the Borrower
shall not be required to pay to any Indemnified Party any amount pursuant to this
Clause 2.15 to the extent (i) such amount has been fully and finally paid in cash to
such Indemnified Party pursuant to any other provision of this Agreement or any other
Transaction Document or (ii) such amounts constitute Excluded Taxes.
	 
	 	(h)	 	Each of the initial Lenders hereby represents and warrants to the Borrower that
as of the Closing Date it is a Qualifying Lender.

	2.16	 	Conversion of currencies

	 	(a)	 	If, on any day a payment is due and payable hereunder or under any other
Transaction Document, it is necessary for funds in one currency to be converted into
another currency in order to make any payment required to be made pursuant to Clauses
2.6 (Application of Collections prior to Facility Termination Date) or 2.7 (Application
of Collections after Facility Termination Date), as applicable, the Borrower shall (and
shall cause the Servicer to) solicit offer quotations from at least two foreign
exchange dealers reasonably acceptable to the Administrative Agent for effecting such
exchange and shall select the quotation which provides for the best exchange rate. The
Borrower shall (and shall cause the Servicer to) effect such exchange (or, if
applicable, shall instruct the Administrative Agent to effect such exchange) as soon
thereafter as is reasonably practicable but in no event later than two Business Days
thereafter.
	 
	 	(b)	 	On each Exchange Rate Determination Date, the Borrower shall (and shall cause
the Servicer to) determine the Spot Rate for each Local Currency and give notice
thereof to the Administrative Agent. In the event the Spot Rate for such Local
Currency cannot be determined by the Servicer because the relevant exchange rate does
not appear on any European Central Bank or Bloomberg historical pricing page for such
currency as set forth in the definition of Spot Rate, then the Spot Rate shall be
determined by the

21

 

	 	 	 	Administrative Agent and notified to the Borrower and the Servicer in accordance
with such definition.

	 	(c)	 	Whenever any computation or calculation hereunder requires the aggregation of
amounts denominated in more than one currency, all amounts that are denominated in a
Local Currency shall be converted to Euro using the Spot Rate determined for the
Exchange Rate Determination Date immediately preceding the date of such calculation.

	2.17	 	Mandatory costs

	 	(a)	 	In order to compensate each Lender for the cost of its compliance (if any) with
the requirements of the Bank of England, the Financial Services Authority and/or the
European Central Bank (or, in each case, any other authority which replaces all or any
of its functions), each such Lender may (only to the extent not reflected in the
Statutory Reserves and the Eurocurrency Rate Reserve Percentage) require the Borrower
to pay, contemporaneously with each payment of Interest on each of such Loans,
additional interest on such Loan at a rate per annum equal to the Mandatory Costs Rate
calculated in accordance with the formula and in the manner set forth in
Schedule 3 (Mandatory Cost Rate).
	 
	 	(b)	 	Any additional interest owed pursuant to Clause 2.17(a) shall be determined by
the applicable Lender, which determination shall be conclusive absent manifest error,
and notified to the Borrower (with a copy to the Administrative Agent) at least five
(5) Business Days before each date on which Interest is payable for the applicable
Loan, and such additional interest so notified to the Borrower by such Lender shall be
payable to such Lender on each date on which Interest is payable for such Loan.

	2.18	 	Mitigation obligations
	 
	 	 	If an event occurs as a result of which any Indemnified Party requests compensation under
Clause 2.11 (Breakage costs), Clause 2.14 (Indemnity for reserves and expenses) or 2.17
(Mandatory costs), or if any cancellation occurs under Clause 2.12 (Illegality) or if the
Borrower is required to pay any additional amount to any Indemnified Party or any Official
Body for the account of any Indemnified Party pursuant to Clause 2.15 (Indemnity for Taxes),
then such Indemnified Party shall, in consultation with the Borrower, use reasonable efforts
to mitigate or avoid the effects of such event. For the avoidance of doubt, an Indemnified
Party is not obliged to take any steps under this Clause 2.18 if in the opinion of that
Indemnified Party (acting reasonably) to do so might be prejudicial to it and the Borrower
hereby agrees to pay all reasonable costs and expenses incurred by any Indemnified Party in
connection with any action taken by such Indemnified Party pursuant to, or in connection
with, this Clause 2.18.
	 
	2.19	 	Proceeds of Subordinated Loans

	 	(a)	 	On the Closing Date the Borrower shall request a Subordinated Loan in an amount
equal to the excess of (i) the aggregate purchase price of the Receivables to be
transferred to the Borrower pursuant to the Intermediate

22

 

	 	 	 	Transfer Agreements and the Originator Sale Agreements, over (ii) the aggregate
amount of the Loans made by the Lenders to the Borrower on the Closing Date in
respect of such Receivables.
	 
	 	(b)	 	If on any day the Borrower has insufficient funds to pay the full purchase
price of Receivables to be purchased on such day pursuant to, and in accordance with
the terms and conditions of, the Intermediate Transfer Agreements and the Originator
Sale Agreements, the Borrower shall request a Subordinated Loan on such day in amount
equal to such insufficiency.

	2.20	 	Adjustments to the Applicable MAPB Percentage
	 
	 	 	If as at the end of any Calculation Period, (i) from and including the Calculation Period
commencing on 1 October 2007 but prior to the end of the Initial Ratio Period the Dilution
Ratio exceeds 6% or thereafter the three month rolling average Dilution Ratio exceeds the
Dilution Benchmark Percentage plus 3.5% or (ii) the Days Sales Outstanding exceeds 85 days,
the Administrative Agent may (and, if instructed by the Required Lenders, shall) upon six
(6) Business Days’ written notice to the Borrower and the Servicer make such adjustments to
the Applicable MAPB Percentage as it shall see fit acting in good faith. Any notice of an
adjustment to the Applicable MAPB Percentage shall also indicate the percentage level of the
Dilution Ratio and number of days Days Sales Outstanding that shall be required to trigger a
further review and increase or reduction by the Administrative Agent of the Applicable MAPB
Percentage. Any adjustment to the Applicable MAPB Percentage pursuant to this Clause shall
cease to apply to the Applicable MAPB Percentage after the third consecutive Ratio Reporting
Date on which the three month rolling average Dilution Ratio is less than or equal to the
Dilution Benchmark Percentage plus 3.5% or the Days Sales Outstanding is less than or equal
to 85 days, as applicable.
	 
	3.	 	CONDITIONS TO BORROWINGS
	 
	3.1	 	Conditions precedent to initial borrowing
	 
	 	 	The occurrence of the Closing Date and the initial Borrowing under this Agreement is each
subject to the conditions precedent that:

	 	(a)	 	consummation of the transactions contemplated herein shall have occurred or
shall occur simultaneously with the initial purchase by the Purchasers under the
applicable Originator Sale Agreements; and
	 
	 	(b)	 	the Administrative Agent shall have received on or before the date of such
Borrowing all of the instruments, documents, agreements and certificates specified on
Schedule 2 (Conditions Precedent Documents), each (unless otherwise indicated) dated
the Closing Date, in form and substance satisfactory to the Administrative Agent and
such other instruments, documents, agreements, certificates and opinions as the
Administrative Agent shall otherwise require. The Administrative Agent shall notify
the Borrower and the Lenders promptly upon being so satisfied.

23

 

	3.2	 	Conditions precedent to all borrowings and releases
	 
	 	 	Each Borrowing (including the initial Borrowing) and each Release hereunder shall be subject
to the further conditions precedent that (a) each Lender shall have received any necessary
approvals, documents, instruments, certificates and opinions for that Borrowing and (b) on
the date of such Borrowing or Release the following statements shall be true (and acceptance
of the proceeds of any such Borrowing or Release shall be deemed a representation and
warranty by the Borrower that such statements are then true by reference to the facts and
circumstances existing on the date of such Borrowing or Release):

	 	(i)	 	In the case of a Borrowing, the making of such Loan does not
violate any provisions of Clause 2.1 (The Loans);
	 
	 	(ii)	 	In the case of a Borrowing, the Borrower has delivered a
Borrowing Request, appropriately completed, within the time period required by
Clause 2.2 (Borrowing procedures);
	 
	 	(iii)	 	In the case of any Borrowing or Release, the Servicer shall
have delivered a Daily Report pursuant to and in accordance with Clause 2.3
(Reporting requirements) of the Servicing Agreement on the date of such
Borrowing or Release;
	 
	 	(iv)	 	The Facility Termination Date has not occurred and no event
exists, or would result from such Borrowing or Release, that constitutes a
Facility Termination Event or Facility Suspension Event or, in the case of a
Borrowing only, a Potential Facility Termination Event or Potential Facility
Suspension Event;
	 
	 	(v)	 	All Fees required to be paid on or prior to the date of such
Borrowing or Release in accordance with the Fee Letters and the Commitment
Letter and all fees and expenses described in Clauses 10.4 (Costs and expenses)
to the extent then due and payable shall have been paid in full in accordance
with the terms thereof;
	 
	 	(vi)	 	No portion of the proceeds of such Borrowing or Release will be
used by the Borrower to pay the purchase price for, or grant or otherwise
acquire Borrower Receivables Interests in, any Receivable that was originated
by an Originator with respect to which a Seller Event has occurred and is
continuing;
	 
	 	(vii)	 	After giving effect to such Borrowing or Release and the use
of the proceeds thereof in accordance with Clause 2.3 (Use of proceeds) the
Aggregate Principal Balance does not exceed the Maximum Aggregate Principal
Balance; and
	 
	 	(viii)	 	Any Subordinated Loan requested on the date of such Borrowing or Release
shall have been (or shall simultaneously with such Borrowing or Release be)
made by the Subordinated Lender.

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	4.	 	REPRESENTATIONS AND WARRANTIES
	 
	4.1	 	Representations and warranties of the Borrower
	 
	 	 	The Borrower hereby represents and warrants to the Administrative Agent and the Lenders that
on the Closing Date:

	 	(a)	 	It (i) is a limited liability company duly incorporated and validly existing
under the laws of its jurisdiction of incorporation, (ii) is duly qualified to do
business in every other jurisdiction where the nature of its business requires it to be
so qualified, unless the failure to so qualify would not reasonably be expected to have
a Material Adverse Effect, and (iii) has all corporate or other organisational power
and authority and all licences, authorisations, consents, approvals and qualifications
of and from all Official Bodies and other third parties required to perform its
obligations under the Transaction Documents to which it is a party and to carry on its
business in each jurisdiction in which its business is now conducted unless the failure
to have such power, authority licences, authorisations, consents, approvals and
qualifications would not reasonably be expected to have a Material Adverse Effect.
	 
	 	(b)	 	The execution, delivery and performance by it of this Agreement and the other
Transaction Documents to which it is a party, including the Borrower’s use of the
proceeds of Loans (i) are within its corporate powers, (ii) have been duly authorised
by all necessary corporate action, (iii) are in its interest and it will receive the
corporate benefit as a result of the transactions contemplated hereby and thereby and
the value of the consideration obtained by it under the transactions contemplated
hereby and thereby is not less than the value of, and is fully and fairly equivalent
to, the consideration which it provides, (iv) do not contravene or constitute a default
under (A) its Organic Documents, (B) any applicable Law, (C) any contractual
restriction binding on or affecting it or its property or (D) any order, writ,
judgment, award, injunction or decree which is valid and binding on or affecting it or
its property except in each case where any such contravention or default would not
reasonably be expected to have a Material Adverse Effect and (v) do not result in or
require the creation or imposition of any Adverse Claim (other than Permitted Adverse
Claims) upon or with respect to any of its properties. Each Transaction Document to
which the Borrower is a party has been duly executed and delivered by the Borrower.
	 
	 	(c)	 	No authorisation or approval or other action by, and no notice to or filing or
registration with, any Official Body or official thereof or any third party is required
for the due execution, delivery and performance by it of this Agreement or any other
Transaction Documents to which it is a party or any other document to be delivered by
it hereunder or thereunder, except for the actions taken or referred to in Schedule 2
(Conditions Precedent Documents) all of which have been (or on or before the Closing
Date will have been) duly made or taken, as the case may be, and are in full force and
effect and except where the failure to have obtained any such authorization or approval
or taken any such action or made any such filing or notice would not reasonably be
expected to have a Material Adverse Effect.

25

 

	 	(d)	 	Each of this Agreement and the other Transaction Documents to which it is a
party constitutes the legal, valid and binding obligation of the Borrower enforceable
against it in accordance with its terms, subject to the Legal Reservations.
	 
	 	(e)	 	There are no actions, suits, investigations by an Official Body, litigation or
proceedings at law or by or before any Official Body or in arbitration now pending or,
to its knowledge, threatened against or affecting the Borrower or its Subsidiaries or
any of its businesses, properties or revenues (i) which involve or question the
validity of this Agreement or any other Transaction Documents to which it is a party or
any of the transactions contemplated hereby or thereby (excluding any litigation or
proceeding against any Obligor) or (ii) which, individually or in the aggregate, are
reasonably likely to be adversely determined and if so determined would reasonably be
expected to have a Material Adverse Effect. The Borrower is not in default or
violation of any valid and binding order, judgment or decree of any Official Body or
arbitrator which would reasonably be expected to have a Material Adverse Effect.
	 
	 	(f)	 	No event has occurred and is continuing, or would result from any Borrowing or
application of the proceeds therefrom, which constitutes a Facility Event which has not
been (i) notified to the relevant parties to the Transaction Documents or (ii) remedied
or waived, in each case, in accordance with the Transaction Documents.
	 
	 	(g)	 	Each Receivable treated as or represented to be a Pool Receivable is owned by
the applicable Purchaser, free and clear of any Adverse Claim (other than Permitted
Adverse Claims). The Administrative Agent, for the benefit of the Secured Parties, has
a valid and perfected first priority charge, security interest or pledge, ranking ahead
of any other charge, security interest or pledge and the interest of any other creditor
of any Transaction Party (other than Permitted Adverse Claims) in each Pool Receivable
and in the Related Security and Collections related thereto, all of the Borrower
Receivables Interests acquired by, or granted to, the Borrower, the Borrower Operating
Accounts and all other Collateral, in each case, free and clear of any Adverse Claim
(other than Permitted Adverse Claims). No effective financing statement or other
instrument similar in effect is filed in any recording office listing any Transaction
Party as debtor, covering any Receivable, Related Security, Borrower Receivables
Interest or other Collateral, or any interest therein or proceeds thereof, other than
in respect of a Permitted Adverse Claim.
	 
	 	(h)	 	(i) Each Portfolio Report, Data Feed, Roll-Forward Report and Monthly Ratio
Report is complete and accurate in all material respects as of its date, (ii) all other
non-verbal information, data, exhibits, documents, books, records and reports furnished
by or on behalf of the Borrower in connection with this Agreement, any other
Transaction Document or any transaction contemplated hereby or thereby is complete and
accurate in all material respects as of its date and no such item contains any untrue
statement of a material fact or omits to state a material fact necessary in order to
make the statements contained therein, in the light of the circumstances under which
they were made, not

26

 

	 	 	 	misleading, and (iii) all financial statements which have been furnished by or on
behalf of the Borrower (A) have been prepared in accordance with GAAP consistently
applied and (B) fairly present in all material aspects, the financial condition of
the Borrower and, if applicable, its consolidated Subsidiaries as of the dates set
forth therein and the results of any operations of the Borrower and, if applicable,
its consolidated Subsidiaries for the periods ended on such dates.
	 
	 	(i)	 	It has (i) timely filed or caused to be filed all material Tax returns required
to be filed and (ii) paid or made adequate provision for the payment of all Taxes,
assessments and other governmental charges due and payable by it except to the extent
that failure to do so would not reasonably be expected to have a Material Adverse
Effect.

	 	(j)	 	For the purposes of the EU Insolvency Regulation, the Borrower’s centre of main
interest (as that term is used in Article 3(1) of the EU Insolvency Regulation) is
situated in Ireland and it has no “establishment” (as that term is used in Article 2(h)
of the EU Insolvency Regulation) in any other jurisdiction.
	 
	 	(k)	 	(i) The names and addresses of all the Borrower Operating Account Banks
together with the account numbers of the Borrower Operating Accounts at such Borrower
Operating Account Banks are as specified in Schedule 8 (Facility Accounts and Account
Banks) of the Schedule of Definitions, as such Schedule 8 (Facility Accounts and
Account Banks) may be updated from time to time pursuant to Clause 5.1(g) (Deposits to
Borrower Operating Accounts). (ii) All Borrower Operating Accounts are subject to a
valid and enforceable Security Document and the Administrative Agent, on behalf of the
Secured Parties, has a valid and perfected security interest or pledge of the Borrower
Operating Accounts, free and clear of any Adverse Claims (other than Permitted Adverse
Claims). Only Collections and other amounts payable in respect of Pool Receivables are
deposited into the Borrower Operating Accounts. Each of the Borrower Operating Account
Banks is an Eligible Account Bank.
	 
	 	(l)	 	Since its incorporation, the Borrower has not used any company name, tradename
or doing-business-as name other than the name in which it has executed this Agreement.
	 
	 	(m)	 	The Borrower was incorporated on 21 December 2006 under the Laws of Ireland and
the Borrower did not engage in any business activities prior to such date. The
Borrower has no Subsidiaries (other than the Spanish Account SPV).
	 
	 	(n)	 	The Borrower is able to pay its debts and liabilities, direct, subordinated,
contingent or otherwise, as such debts and liabilities become absolute and matured.
The Borrower is not insolvent within the meaning of Section 214 of the Irish Companies
Act, 1963 or Section 2(3) of the Irish Companies (Amendment) Act, 1990. The Borrower
does not intend to, and does not believe that it will, incur debts or liabilities
beyond its ability to pay such debts and liabilities as they mature, taking into
account the timing and amounts of

27

 

	 	 	 	cash to be received by it and the timing and amounts of cash to be payable on or in
respect of its Indebtedness.
	 
	 	(o)	 	With respect to each Receivable treated as or represented to be a Pool
Receivable, the applicable Purchaser purchased such Receivable from the applicable
Originator in accordance with the terms of the applicable Originator Sale Agreement in
exchange for payment (made by the applicable Purchaser to such Originator in accordance
with the provisions of the applicable Originator Sale Agreement) of cash, in an amount
which constituted fair consideration, reasonably equivalent value and fair market
value. With respect to each Borrower Receivables Interest made by, granted to or
acquired by, the Borrower, such Borrower Receivables Interest has been made by, granted
to or acquired by the Borrower in accordance in all material respects with the terms of
the applicable Intermediate Transfer Agreement. Each such purchase, acquisition or
other transaction referred to above shall not have been made for or on account of an
antecedent debt owed by the applicable Originator to the Borrower, or by the
Intermediate Transfer to the Borrower, as the case may be, and no such sale,
acquisition or other transaction is or may be voidable or subject to avoidance under
any section of any applicable Insolvency Law or by general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at law).
	 
	 	(p)	 	None of the Borrower or any of its Subsidiaries has operations, property,
assets or employees in the U.S.
	 
	 	(q)	 	The Borrower is in compliance with any material provisions of all applicable
Data Protection Laws applicable to it or its business or properties, except where the
failure to comply would not reasonably be expected to have a Material Adverse Effect.

	4.2	 	Times when representations made

	 	(a)	 	All the representations and warranties in this Clause 4 (Representations and
Warranties) are deemed to be made by the Borrower on the Closing Date and as of the
date of each Borrowing and each Release hereunder.
	 
	 	(b)	 	The representations and warranties in Clauses 4.1(g), (h) and (o) are deemed to
be made by the Borrower as of each Reporting Date, and in the case of all non-verbal
information, data, exhibits, documents, books and records furnished by or on behalf of
the Borrower in connection with this Agreement, any other Transaction Document or any
transaction contemplated hereby or thereby on the date on which such information, data,
exhibits, documents, books and records are furnished.
	 
	 	(c)	 	Each representation or warranty deemed to be made after the Closing Date shall
be deemed to be made by reference to the facts and circumstances existing at the date
the representation or warranty is deemed to be made.

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	5.	 	COVENANTS
	 
	5.1	 	Covenants of the Borrower
	 
	 	 	Until the Final Payout Date:

	 	(a)	 	Compliance with laws, etc
	 
	 	 	 	The Borrower will comply in all material respects with all applicable Laws and
preserve and maintain its corporate existence, rights, franchises, qualifications,
and privileges except to the extent that the failure so to comply with such Laws or
the failure so to preserve and maintain such existence, rights, franchises,
qualifications, and privileges would not reasonably be expected have a Material
Adverse Effect.
	 
	 	(b)	 	Offices, records and books of account
	 
	 	 	 	The Borrower will keep its records concerning the Receivables and Borrower
Receivables Interests at (i) the address of the Borrower in Ireland, the address of
the Servicer in Luxembourg or the address of Dana Europe S.A. in Switzerland in each
case specified in Clause 10.2 (Notices, etc) as of the date of this Agreement or
(ii) upon thirty (30) days prior written notice to the Administrative Agent, at any
other locations in jurisdictions where all actions reasonably requested by the
Administrative Agent to protect and perfect its security interest in the Collateral
have been taken and completed. The Borrower also will maintain and implement, or
cause the Servicer to maintain and implement, administrative and operating
procedures (including an ability to recreate records evidencing Pool Receivables and
related Contracts in the event of the loss or destruction of the originals thereof),
and keep and maintain all Records and other information reasonably necessary or
advisable for the collection of all Pool Receivables (including records adequate to
permit the identification of each Pool Receivable and all Collections of and
adjustments to each existing Pool Receivable). The Borrower shall give the
Administrative Agent prompt notice of any material change in its administrative and
operating procedures referred to in the previous sentence.
	 
	 	(c)	 	Notice of Borrower’s interest
	 
	 	 	 	In the event that the Borrower shall sell, hold in trust or otherwise transfer any
interest in any financial assets relating to any Pool Receivable, any Related
Security or any other Collateral (other than as contemplated by the Transaction
Documents), any computer tapes or files or other documents or instruments provided
in connection with any such sale or transfer shall disclose the applicable
Purchaser’s ownership of the Pool Receivables and the Administrative Agent’s and
Secured Parties’ interest therein.
	 
	 	(d)	 	Sales, Liens, etc.
	 
	 	 	 	The Borrower will not sell, assign (by operation of law or otherwise) or otherwise
dispose of, or create or suffer to exist any Adverse Claim (except for Permitted
Adverse Claims) upon or with respect to, the Pool Receivables, any

29

 

	 	 	 	Borrower Operating Account, any other Collateral or any other asset of the Borrower,
or assign any right to receive income in respect thereof and the Borrower shall not
issue any Equity Interest to any other Person other than the Equity Holder or permit
any such Equity Interests or any Equity Interest in the Spanish Account SPV to be
subject to any Adverse Claim, except as otherwise expressly provided for in the
Transaction Documents. Nothing in this Clause 5.1(d) shall prevent the Borrower
from making Restricted Payments otherwise permitted under Clause 5.1(n).
	 
	 	(e)	 	Extension or amendment of Pool Receivables and Contracts
	 
	 	 	 	Except as provided in Clause 2.2(c) (Duties of the Servicer) of the Servicing
Agreement, the Borrower will not (i) extend, amend or otherwise modify the terms of
any Pool Receivable or any Related Security, or (ii) amend, modify or waive any term
or condition of any Contract related thereto in a manner that would reasonably be
expected to have a Material Adverse Effect.
	 
	 	(f)	 	Change in Business
	 
	 	 	 	The Borrower will not make any substantial change to the general nature of its
business.
	 
	 	(g)	 	Change in payment instructions to Obligors
	 
	 	 	 	The Borrower will not add or terminate any Borrower Operating Account from those
listed in Schedule 8 (Facility Accounts and Account Banks) of the Schedule of
Definitions, or make any change in any instruction to Obligors regarding payments to
be made in respect of the Receivables or payments to be made to any Borrower
Operating Account unless each Lender shall have received at least fifteen (15) days
prior written notice of such addition, termination or change (including an updated
Schedule 8 (Facility Accounts and Account Banks) to the Schedule of Definitions) and
a fully executed Security Document with respect to each new Borrower Operating
Account has been delivered to the Administrative Agent. Each Borrower Operating
Account shall be maintained at all times in the name of the Borrower, except as
otherwise agreed by the Administrative Agent.
	 
	 	(h)	 	Deposits to Borrower Operating Accounts
	 
	 	 	 	If the Borrower shall receive any Collections directly, the Borrower shall (or will
cause the Servicer to) promptly (and in any event within one (1) Business Day) cause
such Collections to be deposited into a Borrower Operating Account. The Borrower
will not permit and will (and will cause the Servicer Parties to) use all reasonable
efforts to prevent funds which do not constitute Collections of Receivables from
being deposited into any Borrower Operating Account.
	 
	 	(i)	 	Further Assurances; Change in Name or Jurisdiction of Organisation, etc

	 	(i)	 	With the exception of the notifications and other actions
referred to in Clause 6.2 (Certain rights of the Administrative Agent) which
need

30

 

	 	 	 	only be given or taken in accordance with that Clause, the Borrower agrees
from time to time, at its expense, promptly to execute and deliver all
further instruments and documents, and to take all further actions, that may
be reasonably necessary, or that the Administrative Agent may reasonably
request, to perfect, protect or more fully evidence the Administrative
Agent’s security interest in the Borrower Operating Accounts and the
Collateral, or to enable the Lenders or the Administrative Agent to exercise
and enforce their respective rights and remedies under this Agreement.
Without limiting the foregoing, the Borrower will at its expense, upon the
request of the Administrative Agent, duly execute, file or serve in or on
the appropriate filing office, Official Body or other Person in each
jurisdiction reasonably deemed necessary or desirable all registrations,
notices, financing or continuation statements, or amendments thereto, and
such other instruments and documents, that may be necessary, or that the
Administrative Agent may reasonably request, to perfect, protect or evidence
the Administrative Agent’s security interest in the Borrower Operating
Accounts and the Collateral. The Borrower authorises the Administrative
Agent to file financing or continuation statements or similar instruments,
and amendments thereto and assignments thereof, relating to the Borrower
Operating Accounts and the Collateral for the purpose of evidencing or
protecting its security interest in connection therewith without the
signature of the Borrower. A photocopy or other reproduction of this
Agreement shall be sufficient as a financing statement where permitted by
Law.

	 	(ii)	 	The Borrower will at all times be incorporated under the laws
of Ireland and will not take any action to change its jurisdiction of
organisation.
	 
	 	(iii)	 	The Borrower will not change its name, identity, corporate
structure, location, registered office, its centre of main interests, its
principal place of management or tax identification number or make any other
change which could render any financing statement or similar instrument filed
in connection with any Transaction Document seriously misleading or otherwise
ineffective under applicable Law, unless the Administrative Agent shall have
received at least thirty (30) days advance written notice of such change prior
to the effectiveness thereof and all action by the Borrower necessary or
appropriate to perfect or maintain the perfection of the Administrative Agent’s
security interest in the Borrower Operating Accounts and the Collateral
(including the filing of all financing statements or similar instruments and
the taking of such other action as the Administrative Agent may request in
connection with such change) shall have been duly taken.

	 	(j)	 	Separateness

	 	(i)	 	The Borrower will pay its own liabilities out of its own funds.

31

 

	 	(ii)	 	The Borrower will hold itself out and identify itself as a
separate and distinct entity under its own name and not as a division or part
of any other Person.
	 
	 	(iii)	 	The Borrower will promptly correct any misunderstanding of
which it has knowledge regarding its separate existence and identity.
	 
	 	(iv)	 	The Borrower will prepare and maintain its own full and
complete books, records and financial statements separate from any other
Person. The Borrower’s financial statements will comply with GAAP.
	 
	 	(v)	 	The Borrower will maintain at least one bank account in its own
name.
	 
	 	(vi)	 	The Borrower will not assume or guarantee or become obligated
for debts of any Person and no Person will assume or guarantee or become
obligated for the debts of the Borrower, other than as provided in the
Transaction Documents. The Borrower will not hold its credit out as being
available to satisfy the obligations of any other Persons.
	 
	 	(vii)	 	The Borrower will not acquire obligations or securities of any
Person (other than the Equity Interest in the Spanish Account SPV) except as
otherwise expressly contemplated in the Transaction Documents. The Borrower
will not make loans, advances or otherwise extend credit to any Person except
as expressly contemplated by the Transaction Documents.
	 
	 	(viii)	 	Except to the extent provided in the Transaction Documents, the Borrower will
not commingle any of its money or other assets with the money or assets of any
other Person.
	 
	 	(ix)	 	Except as expressly contemplated in the Transaction Documents,
the Borrower will engage in transactions and conduct all other business
activities solely in its own name and through its own authorised officers and
agents. The Borrower will present itself to the public as a separate company.
Except to the extent provided in, or anticipated by, the Transaction Documents,
no Person will be appointed agent of the Borrower.
	 
	 	(x)	 	The Borrower will duly observe, in a timely manner in all
material respects, all material obligations, including any filing and
publication requirements, of a private limited liability company incorporated
under the laws of Ireland.

	 	(k)	 	Transaction Documents
	 
	 	(i)	 	Except as permitted under Clause 10.12 (Limitation on the addition and
termination of Originators) or as otherwise expressly permitted by the Transaction
Documents, the Borrower will not terminate, amend, waive or modify, or consent to
any termination, amendment, waiver or modification of, any provision of any
Transaction Document or grant any other consent or other indulgence under any
Transaction Document, in each case, without the

32

 

	 	 	 	prior written consent of the Administrative Agent and the Required Lenders (such
consent not to be unreasonably withheld); provided that the consent of each Lender
shall be required for any such amendment, waiver, modification, consent or other
indulgence that would (A) release any portion of the Collateral or (B) release the
Performance Undertaking Provider from its obligations under the Performance
Undertaking. (ii) The Borrower will perform in all material respects all of its
obligations under the Transaction Documents and will enforce the Transaction
Documents in accordance with their respective terms. The Borrower will take all
actions to perfect and enforce its rights and interests (and the rights and
interests of the Administrative Agent and the Secured Parties as assignees of
Borrower) under the Transaction Documents as the Administrative Agent or the
Required Lenders may from time to time reasonably request, including making claims
to which it may be entitled under any indemnity, reimbursement or similar provision
contained in any Transaction Document.

	 	(l)	 	Nature of Business; No Subsidiaries
	 
	 	 	 	The Borrower will not engage in any business other than the financing of
Receivables, Related Security and Collections originated by the Originators pursuant
to and in accordance with terms of the Transaction Documents. The Borrower will not
create or form any Subsidiary (other than the Spanish Account SPV). The Borrower
will not amend, modify, change or repeal any of its Organic Documents without the
prior written consent of the Administrative Agent (such consent not to be
unreasonably withheld or delayed). The Borrower will not make any change in the
Credit and Collection Policies or the Standard Terms and Conditions without the
prior written consent of the Administrative Agent, except in either case for any
such change in a Credit and Collection Policy or Standard Terms and Conditions that
would not (A) impair the collectibility of any Pool Receivables in any material
respect, (B) otherwise reasonably be expected to have a Material Adverse Effect or
(C) materially adversely affect the interests or remedies of the Secured Parties.
The Borrower will not have any employees.
	 
	 	(m)	 	Mergers, etc
	 
	 	 	 	Except to the extent expressly permitted by the Transaction Documents, the Borrower
will not liquidate or dissolve or merge with or into or consolidate with or into, or
convey, transfer, lease or otherwise dispose of (whether in one transaction or in a
series of transactions), all or substantially all of its assets (whether now owned
or hereafter acquired) to, or acquire all or substantially all of the assets or
capital stock or other ownership interest of, or enter into any joint venture or
partnership agreement with, any Person.
	 
	 	(n)	 	Distributions, etc
	 
	 	 	 	The Borrower will not (i) declare or make any dividend payment or other distribution
of assets, properties, cash (other than as permitted pursuant to the Declaration of
Trust entered into on the date hereof by the Equity Holder), rights, obligations or
securities on account of any membership interests or other Equity Interests in the
Borrower, or return any capital to its members or

33

 

	 	 	 	other equity holders as such, or purchase, retire, defease, redeem or otherwise
acquire for value or make any payment in respect of any membership interests or
other equity of the Borrower or any warrants, rights or options to acquire any
membership interests or other equity of the Borrower, now or hereafter outstanding,
(ii) prepay, purchase or redeem any Indebtedness (other than Indebtedness
hereunder), (iii) lend or advance any funds or (iv) repay any loans or advances to,
for or from any of its Affiliates (the amounts described in Clauses 5.1(n)(i) to
(iv) being referred to as “Restricted Payments”); provided, however, that the
Borrower may (x) purchase Receivables and any Related Security and Collections
related thereto and make, purchase or otherwise acquire Borrower Receivables
Interests, and (y) pay amounts owing in respect of the Subordinated Loans, in each
case, pursuant to and in accordance with the terms and conditions of the Transaction
Documents, including Clause 2.6 (Application of Collections prior to Facility
Termination Date), Clause 2.7 (Application of Collections after Facility Termination
Date) and Clause 3 (Conditions to Borrowings).
	 
	 	(o)	 	Indebtedness
	 
	 	 	 	The Borrower will not create, incur, guarantee, assume or suffer to exist any
Indebtedness or other liabilities, whether direct or contingent, funded or unfunded,
other than (i) as a result of the endorsement of negotiable instruments for deposit
or collection or similar transactions in the ordinary course of business, (ii) the
incurrence of obligations under this Agreement, (iii) the incurrence of other
obligations pursuant to, and, as expressly set forth in, the Transaction Documents
or (iv) the incurrence of operating expenses in the ordinary course of business in
an amount not to exceed €10,000 at any time outstanding.
	 
	 	(p)	 	Taxes
	 
	 	 	 	The Borrower will file all tax returns and reports required by Law to be filed by it
and will promptly pay all Taxes and governmental charges at any time owing by it.
The Borrower will pay when due any Taxes (other than Excluded Taxes) payable by the
Borrower in connection with the Collateral.
	 
	 	(q)	 	Enforcement
	 
	 	 	 	The Borrower on its behalf, and on behalf of the Secured Parties, shall (or shall
cause the Servicer Parties to) promptly enforce all covenants and obligations in its
favour of the Intermediate Transferor contained in the Intermediate Transfer
Agreements, all covenants and obligations in its favour of the Spanish Account SPV
contained in any Transaction Document and all covenants and obligations in its
favour of the Originators under the Originator Sale Agreements. The Borrower shall
also use reasonable efforts to deliver consents, approvals, acknowledgements,
directions, notices, waivers and take such further actions thereunder as may be
reasonably directed by the Administrative Agent.

34

 

	 	(r)	 	Borrower Operating Accounts and New Collection Accounts
	 
	 	 	 	The Borrower will cause all Borrower Operating Accounts to be subject at all times
to a Security Agreement. The Borrower will ensure that each New Collection Account
(other than any New Spanish Collection Account) shall be maintained at all times in
the name of the Borrower and will cause each New Spanish Collection Account to be
maintained at all times in the name of the Spanish Account SPV.
	 
	 	(s)	 	Change in accountants or accounting policies
	 
	 	 	 	The Borrower shall promptly notify the Administrative Agent of any change in its
accountants or material change in its accounting policy.
	 
	 	(t)	 	Power of Attorney
	 
	 	 	 	The Borrower will not revoke or attempt to revoke any power of attorney granted by
it in connection with the transactions contemplated by the Transaction Documents.
	 
	 	(u)	 	Instruments
	 
	 	 	 	The Borrower shall not take any action to cause any Pool Receivable not evidenced by
a negotiable instrument upon origination to become evidenced by a negotiable
instrument, except in connection with the enforcement or collection of a Defaulted
Receivable.
	 
	 	(v)	 	Delivery of Financial Statements
	 
	 	 	 	The Borrower shall deliver to the Administrative Agent, within 120 days after the
close of each of its fiscal years, a copy of its statutory accounts prepared in
accordance with GAAP.
	 
	 	(w)	 	Licences, etc.
	 
	 	 	 	The Borrower shall maintain in full force and effect all licences, approvals,
authorisations, consents, registrations and notifications which are at any time
required in connection with the performance of its duties and obligations hereunder
and under the other Transaction Documents, except to the extent the failure to do so
would not reasonably be expected to have a Material Adverse Effect.
	 
	 	(x)	 	Notices under Transaction Documents
	 
	 	 	 	Promptly after receipt thereof by the Borrower, the Borrower shall furnish or cause
to be furnished to the Administrative Agent copies of all notices received by the
Borrower from any Originator or the Intermediate Transferor in connection with any
Transaction Document to the extent not previously provided to the Administrative
Agent by another Transaction Party.

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	5.2	 	Inspections; agreed upon procedures audit
	 
	 	 	Until the Final Payout Date the Borrower will, at the expense of the Borrower, from time to
time during regular business hours as requested by the Administrative Agent upon reasonable
prior notice, permit the Administrative Agent or its agents or representatives (including
independent accountants, which may be the Borrower’s or the Servicer’s independent
accountants), (i) to conduct periodic audits of the Borrower’s accounting records,
correspondence and such other documents as the Administrative Agent may reasonably require
including the Receivables, the Related Security, the other Collateral and the related books
and records, including the Contracts, and collections systems of the Borrower, as agreed
upon from time to time between the Administrative Agent and the Master Servicer, such audits
to include procedures to satisfy the Administrative Agent as to the existence of the
receivables, (ii) to examine and (to the extent permitted by applicable law) make copies of
and abstracts from all documents, purchase orders, invoices, agreements, books, records and
other information (including computer programs, tapes, discs, punch cards, data processing
software, storage media and related property and rights subject to any restrictions in any
licence with respect thereto) relating to Receivables, the Related Security and the other
Collateral, including the Contracts and (iii) to visit the offices and properties of the
Borrower for the purpose of examining such materials described in Clauses 5.2(i) and (ii),
and to discuss matters relating to Receivables, the Related Security and the other
Collateral or the Borrower’s performance under the Transaction Documents or under the
Contracts with any of the officers or employees of the Borrower having knowledge of such
matters.
	 
	6.	 	ADMINISTRATION AND COLLECTION OF POOL RECEIVABLES
	 
	6.1	 	Designation of Servicer
	 
	 	 	The servicing, administration and collection of the Pool Receivables shall be conducted by
the Servicer so designated under the Servicing Agreement from time to time.
	 
	6.2	 	Certain Rights of the Administrative Agent

	 	(a)	 	The Administrative Agent may (and if so directed by the Required Lenders,
shall), at any time following the occurrence and during the continuation of an Exercise
Event, have each Borrower Operating Account transferred into the name of the
Administrative Agent for the benefit of the Secured Parties and/or assume exclusive
control of the Borrower Operating Accounts and, in each case, take such actions to
effect such transfer or assumption as it may determine to be necessary or appropriate
(including delivering the notices attached to the applicable Security Documents).
	 
	 	(b)	 	At any time following the occurrence and during the continuation of an Exercise
Event:

	 	(i)	 	At the Administrative Agent’s request (acting either on its own
initiative or at the request of the Required Lenders) and at the Borrower’s
expense, the Borrower shall, or shall cause each Servicer Party to (and if any
Servicer Party shall fail to do so within two (2)

36

 

	 	 	 	Business Days, the Administrative Agent may) (i) notify each Obligor of Pool
Receivables of the transfer, sale, trust, assignation and assignment of the
Pool Receivables and the Related Security with respect thereto pursuant to
the Transaction Documents and of the applicable Purchaser’s ownership of,
and the Administrative Agent’s security interest in, the Pool Receivables
and the Related Security with respect thereto, (ii) direct such Obligors
that payments under any Pool Receivable or any Related Security with
respect thereto be made directly to the Administrative Agent or its designee
and (iii) execute any power of attorney or other similar instrument and/or
take any other action reasonably necessary or desirable to give effect to
such notice and directions, including any action required (x) to convey or
perfect the relevant Purchaser’s title or the Administrative Agent’s
security interest in the Pool Receivables and Related Security, or (y) to be
taken so that the obligations or other indebtedness of such Obligors in
respect of any Pool Receivables and any Related Security with respect
thereto may no longer be legally satisfied by payment to the applicable
Originator or any of its Affiliates.
	 
	 	(ii)	 	At the Administrative Agent’s request (acting either on its own
initiative or at the request of the Required Lenders) and at the Borrower’s
expense, the Borrower shall, or shall cause each Servicer Party to (A) assemble
all of the Contracts, documents, instruments and other records (including
computer tapes and disks) that evidence or relate to the Collateral, or that
are otherwise reasonably necessary or desirable to collect the Collateral, and
shall make the same available to the Administrative Agent at a place selected
by the Administrative Agent or its designee and (B) segregate all cash, cheques
and other instruments received by it from time to time constituting Collections
of Collateral in a manner acceptable to the Administrative Agent and, promptly
upon receipt, remit all such cash, cheques and instruments, duly endorsed or
with duly executed instruments of transfer, to the Administrative Agent or its
designee.

	 	(c)	 	The Borrower authorises the Administrative Agent, following the occurrence and
during the continuation of an Exercise Event, to take any and all steps in the
Borrower’s name and on behalf of the Borrower that are necessary or desirable, in the
determination of the Administrative Agent, to collect amounts due under the Collateral,
including (i) endorsing the Borrower’s or any other Transaction Party’s name on cheques
and other instruments representing Collections, (ii) enforcing the Receivables and the
Related Security and the Security Agreements and other Transaction Documents, including
to ask, demand, collect, sue for, recover, compromise, receive and give acquittance and
receipts for moneys due and to become due under or in connection with therewith and
(iii) to file any claims or take any action or institute any proceedings that the
Administrative Agent (or such designee) may deem to be necessary or desirable for the
collection thereof or to enforce compliance with the terms and conditions of, or to
perform any obligations or enforce any rights of the Borrower or any other Transaction
Party in respect of, the Receivables and the Related Security and the other Transaction
Documents.

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	6.3	 	Performance of obligations

	 	(a)	 	If the Servicer or the Borrower fails to perform any of its material
obligations under this Agreement or any other Transaction Document, the Administrative
Agent may (but shall not be required to) itself perform, or cause performance of, such
obligation; and the Administrative Agent’s costs and expenses reasonably incurred in
connection therewith shall be payable by the Servicer or the Borrower, as applicable.
	 
	 	(b)	 	The Borrower shall, and shall cause the Servicer to, perform their respective
obligations, and exercise their respective rights, under the Contracts and the
Transaction Documents to the same extent as if a security interest therein had not been
granted to the Administrative Agent. The exercise by the Administrative Agent on
behalf of the Secured Parties of their rights under this Agreement shall not release
the Servicer or the Borrower from any of their duties or obligations with respect to
any Contracts or Transaction Documents. None of the Administrative Agent or the
Lenders shall have any obligation or liability with respect to any Transaction
Documents or Contracts, nor shall any of them be obligated to perform the obligations
of any Transaction Party under any Transaction Document or Contract.
	 
	 	(c)	 	The Administrative Agent’s rights and powers under this Clause 6 and under the
Servicing Agreement shall not subject the Administrative Agent to any liability if any
action taken by it proves to be inadequate or invalid nor shall such powers confer any
obligation whatsoever upon the Administrative Agent.

	7.	 	SUSPENSION AND TERMINATION EVENTS
	 
	7.1	 	Facility Suspension Events
	 
	 	 	Each of the events or circumstances set out in this Clause 7.1 is a Facility Suspension
Event.

	 	(a)	 	any Facility Party shall fail to make any payment or deposit required to be
made by it hereunder or under any other Transaction Document to which it is a party
when due hereunder or thereunder and such failure remains unremedied for three (3)
Business Days;
	 
	 	(b)	 	any representation, warranty, certification or statement made by any Facility
Party in any Transaction Document shall prove to have been incorrect in any material
respect when made or deemed made (other than any breach of a representation, warranty,
certification or statement solely relating to a Pool Receivable for which a Deemed
Collection has been received in an amount equal to the full Unpaid Balance thereof
pursuant to any Specified Deemed Collection Clause (unless not required to be so
remitted pursuant to the terms of the Transaction Documents)) and, if the circumstances
causing such representation, warranty, certification or statement to be incorrect are
capable of being remedied, such Facility Party shall have failed to remedy such
circumstances in a manner such that such representation, warranty, certification or
statement is true and correct in all material respects within five

38

 

	 	(5)	 	Business Days after a Responsible Officer of such Facility Party obtained
knowledge or received notice thereof;

	 	(c)	 	any Facility Party shall fail to perform or observe any term, covenant or
agreement in any Transaction Document in any material respect, and, if such failure is
capable of being remedied, such Facility Party shall have failed to remedy such failure
within seven (7) Business Days after a Responsible Officer of such Facility Party
obtained knowledge or received notice thereof; or
	 
	 	(d)	 	any Material Indebtedness (or any amount in respect of Material Indebtedness)
of any Transaction Party or any other Dana European Entity (i) is not paid when due
(after the expiry of any originally applicable grace period), or is declared or
otherwise becomes due prior to its scheduled maturity as a result of any event of
default (however described), or (ii) is capable of being declared by or on behalf of a
creditor to be prematurely due and payable or of being placed on demand as a result of
any event of default (however described), or (iii) any pledge, charge or security
interest securing the Material Indebtedness of any Dana European Entity is enforced, in
whole or in part as a result of any event of default (however described);
	 
	 	(e)	 	a Servicer Default shall occur and be continuing;
	 
	 	(f)	 	the Aggregate Principal Balance exceeds the Maximum Aggregate Principal Balance
for three (3) consecutive Business Days;
	 
	 	(g)	 	as at the end of any Calculation Period, from and including the Calculation
Period commencing on 1 October 2007 but prior to the end of the Initial Ratio Period
the Dilution Ratio exceeds 8.0% on two consecutive Ratio Reporting Dates or thereafter
the three month rolling average Dilution Ratio exceeds the Dilution Benchmark
Percentage plus 5%;
	 
	 	(h)	 	as at the end of any Calculation Period, Days Sales Outstanding is greater than
90 days;
	 
	 	(i)	 	the failure by any Facility Party or any other Dana European Entity (other than
the Spanish Account SPV or Originator) to pay one or more final judgments requiring
such Person to pay a sum or sums of money (whether or not such judgment may be stayed
or further appealed) aggregating in excess of €5,000,000 or the Euro Equivalent
thereof in any other currency, which judgments are not discharged or effectively waived
or stayed for a period of thirty (30) consecutive days, or any action shall be legally
taken by a judgment creditor to levy upon assets or properties of any such Person to
enforce any such judgment;
	 
	 	(j)	 	the failure by the Borrower to pay one or more final judgments requiring the
Borrower to pay a sum or sums of money (whether or not such judgment may be stayed or
further appealed) which judgments are not discharged or effectively waived or stayed
for a period of thirty (30) consecutive days, or any action shall be legally taken by a
judgment creditor to levy upon assets or properties of the Borrower to enforce any such
judgment; or

39

 

	 	(k)	 	the Subordinated Lender fails for any reason (including as the result of the
failure to meet any condition precedent) to make a Subordinated Loan under the
Subordinated Loan Agreement following delivery by the Borrower of a Subordinated Loan
Borrowing Request; or
	 
	 	(l)	 	the Servicer shall have failed to commence providing Roll-Forward Reports after
each Intra-month Settlement Date in accordance with Clause 2.3(d) (Roll-Forward
Reports) of the Servicing Agreement by 31 December 2007.

	7.2	 	Facility Termination Events
	 
	 	 	If any of the following events (each a “Facility Termination Event”) shall occur and be
continuing:

	 	(a)	 	an Event of Bankruptcy shall occur with respect to:

	 	(i)	 	any Transaction Party; or
	 
	 	(ii)	 	any Dana European Entity (other than a Transaction Party) and
the occurrence of such Event of Bankruptcy has, or is reasonably expected to
have, a Material Adverse Effect;

	 	(b)	 	the Administrative Agent, on behalf of the Secured Parties, shall, for any
reason, fail or cease to have a valid and perfected first priority charge, security
interest or pledge in the Collateral prior to all other interests, or there shall exist
any Adverse Claims on such Collateral other than Permitted Adverse Claims;
	 
	 	(c)	 	any Change of Control shall occur with respect to any Facility Party or any
other Dana European Entity (other than the Spanish Account SPV or any Originator);
	 
	 	(d)	 	the Fixed Charge Coverage Ratio shall at any time be less than:

	 	(i)	 	1.25:1 and the Fixed Charge Coverage Ratio has not been
recalculated and increased back up to at least 1.25:1 in accordance with Clause
10.3 (Financial covenant) of the Performance Undertaking within the time
specified in such Clause; or
	 
	 	(ii)	 	1.15:1;

	 	(e)	 	except in the case of a termination expressly permitted under Clause 10.12
(Limitation on the addition and termination of Originators), any Transaction Document
(other than any Originator Sale Agreement, Account Security Agreement or the Spanish
Account Agency Agreement, in each case, to the extent any termination thereof
constitutes a Seller Termination Event under an Originator Sale Agreement) or any
material provision thereof shall cease, for any reason, to be in full force and effect,
or any Transaction Party shall so assert in writing or any Transaction Party shall
otherwise seek to terminate or disaffirm its material obligations under any such
Transaction Document;

40

 

	 	(f)	 	any Facility Suspension Event is continuing after, or not otherwise remedied
prior to, 15 Business Days after such Facility Suspension Event occurred;
	 
	 	(g)	 	the issue of a moral hazard notice by tPR to any Dana European Entity;

	 	 	then, and in any such event, the Administrative Agent may, in its discretion, and shall, at
the direction of the Required Lenders, declare the Facility Termination Date to have
occurred upon notice to the Borrower (in which case the Facility Termination Date shall be
deemed to have occurred); provided that automatically upon the occurrence of any event
(without any requirement for the giving of notice) described in Clause 7.2(a), the Facility
Termination Date shall occur. Upon any such declaration or upon such automatic termination,
the Lenders and the Administrative Agent shall have, in addition to the rights and remedies
which they may have under this Agreement, all other rights and remedies provided after
default under applicable Law, which rights and remedies shall be cumulative.
	 
	7.3	 	Acceleration of maturity
	 
	 	 	If a Facility Termination Event shall have occurred and be continuing, then and in every
such case the Administrative Agent may, and if so directed by the Required Lenders shall,
declare all of the Loans to be immediately due and payable by a notice in writing to the
Borrower, and upon any such declaration the unpaid principal amount of the Loans, together
with accrued and unpaid interest thereon, shall become immediately due and payable; provided
that in the case of any event described in Clause 7.2(a), the Loans shall become immediately
and automatically due and payable, without notice of any kind being given to the Borrower.
	 
	8.	 	THE ADMINISTRATIVE AGENT
	 
	8.1	 	Authorisation and Action
	 
	 	 	Each Lender hereby irrevocably appoints and authorises the Administrative Agent to take such
action as agent on its behalf and to exercise such powers under this Agreement and the other
Transaction Documents as are delegated to the Administrative Agent by the terms hereof and
the other Transaction Documents, together with such powers as are reasonably incidental
thereto. Without limiting the foregoing, the Administrative Agent is empowered and
authorised, on behalf of the Secured Parties, to hold and administer the Collateral as
trustee for the benefit of the Secured Parties under the Security Documents. The
Administrative Agent shall not have any duties other than those expressly set forth in the
Transaction Documents, and no implied obligations or liabilities shall be read into any
Transaction Document, or otherwise exist, against the Administrative Agent. The
Administrative Agent does not assume, nor shall it be deemed to have assumed, any duty of
care or obligation to, or relationship of trust or agency with, any Transaction Party, the
Lenders or any other Secured Party, except as expressly set out in the Transaction
Documents. Notwithstanding any provision of this Agreement or any other Transaction
Document, in no event shall the Administrative Agent ever be required to take any action
which exposes the Administrative Agent to personal liability or which is contrary to any
provision of any Transaction Document or applicable Law. Without limiting the generality of
the foregoing sentence, the use of the term “agent” in this Agreement with reference to the
Administrative Agent is not intended to connote any fiduciary or

41

 

	 	 	other implied (or express) obligations arising under agency doctrine of any applicable Law.
Instead, such term is used merely as a matter of market custom, and is intended to create or
reflect only an administrative relationship between independent contracting parties. With
respect to any Belgian Account Security Agreement governed by the laws of Belgium, the
Administrative Agent acts as an agent (représentant), as defined in Article 5 of the Belgian
law of 15 December 2004 “relative aux sûretés financières et portant des dispositions
fiscales diverses en matière de conventions constitutives de sûreté réelle et de prêts
portant sur les instruments financiers". With respect to the applicable Italian Account
Security Agreement, each Lender also appoints the Administrative Agent as “mandatario con
rappresentanza” pursuant to Section 1704 of the Italian Civil Code in relation to the
entering into, holding and administering collateral under, and exercising all rights and
powers under, the applicable Italian Accounts Security Agreement, in each case in the name
and on behalf of the Secured Parties.
	 
	8.2	 	Liability of Agent
	 
	 	 	Neither the Administrative Agent nor any of its directors, officers, agents or employees
shall be liable for any action taken or omitted to be taken by it or them as Administrative
Agent under or in connection with the Transaction Documents (including the Administrative
Agent’s servicing, administering or collecting Receivables as Servicer pursuant to Clause 6
(Administration and Collection of Receivables)), in the absence of its or their own gross
negligence or wilful misconduct. Without limiting the generality of the foregoing, the
Administrative Agent:

	 	(a)	 	may consult with legal counsel (including counsel for the Borrower or any
Servicer Party), independent accountants and other experts selected by it and shall not
be liable for any action taken or omitted to be taken in good faith by it in accordance
with the advice of such counsel, accountants or experts;
	 
	 	(b)	 	makes no warranty or representation to any Lender or other Secured Party
(whether written or oral) and shall not be responsible to any Lender or other Secured
Party for any statements, warranties or representations (whether written or oral) made
in or in connection with this Agreement or any other Transaction Document;
	 
	 	(c)	 	shall not have any duty to ascertain or to inquire as to the performance or
observance of any of the terms, covenants or conditions of this Agreement or any other
Transaction Document on the part of any Transaction Party or to inspect the property
(including the books and records) of any Transaction Party;
	 
	 	(d)	 	shall not be responsible to any Lender or other Secured Party for the due
execution, legality, validity, enforceability, genuineness, sufficiency or value of
this Agreement or any other Transaction Document; and
	 
	 	(e)	 	shall incur no liability under or in respect of this Agreement or any other
Transaction Document by acting upon any notice (including notice by telephone),
consent, certificate or other instrument or writing (which may be

42

 

	 	 	 	by facsimile) believed by it in good faith to be genuine and signed or sent by the
proper party or parties.

	8.3	 	GE and Affiliates
	 
	 	 	The obligation of GE to fund Loans under this Agreement may be satisfied by GE or any of its
Affiliates. With respect to any Loan or interest therein owned by it, GE shall have the
same rights and powers under this Agreement as any Lender and may exercise the same as
though it were not the Administrative Agent. GE and any of its Affiliates may generally
engage in any kind of business with the Transaction Parties or any Obligor, any of their
respective Affiliates and any Person who may do business with or own securities of the
Transaction Parties or any Obligor or any of their respective Affiliates, all as if GE were
not the Administrative Agent and without any duty to account therefor to the Lenders or
other Secured Parties.
	 
	8.4	 	Indemnification of Administrative Agent and Intermediate Transferor
	 
	 	 	Whether or not the transactions contemplated hereby are consummated, each Lender severally
agrees to indemnify the Administrative Agent and the Intermediate Transferor (to the extent
not reimbursed by the Transaction Parties), ratably based on the Commitment of such Lender
(or, if the Commitments have terminated, ratably according to the respective Commitment of
such Lender immediately prior to such termination), from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred
by, or asserted against the Administrative Agent or the Intermediate Transferor, as the case
may be, in any way relating to or arising out of this Agreement or any other Transaction
Document or any action taken or omitted by the Administrative Agent or the Intermediate
Transferor, as the case may be, under this Agreement or any other Transaction Document,
provided that no Lender shall be liable for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from the Administrative Agent’s or Intermediate Transferor’s gross negligence or
willful misconduct; provided, however, that no action taken in accordance with the direction
of the Required Lenders shall be deemed to constitute gross negligence or willful misconduct
for purposes of this Clause 8.4. Without limitation of the foregoing, each Lender shall
reimburse the Administrative Agent upon demand for its ratable share of any costs or
out-of-pocket expenses (including attorney’s fees) incurred by the Administrative Agent in
connection with the preparation, execution, delivery, administration, modification,
amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of,
or legal advice in respect of rights or responsibilities under, this Agreement, any other
Transaction Document, or any document contemplated by or referred to herein, to the extent
that the Administrative Agent is not reimbursed for such expenses by or on behalf of the
Borrower. The undertaking in this Clause 8.4 shall survive payment on the Final Payout Date
and the resignation or replacement of the Administrative Agent.
	 
	8.5	 	Delegation of Duties
	 
	 	 	The Administrative Agent may execute any of its duties through agents, employees or
attorneys-in-fact and shall be entitled to advice of counsel concerning all matters
pertaining to such duties. The Administrative Agent shall not be responsible for the

43

 

	 	 	negligence or misconduct of any agents or attorneys-in-fact selected by it with reasonable
care.
	 
	8.6	 	Action or inaction by Administrative Agent
	 
	 	 	The Administrative Agent shall in all cases be fully justified in failing or refusing to
take action under any Transaction Document unless it shall first receive such advice or
concurrence of the Required Lenders and assurance of its indemnification by the Lenders, as
it deems appropriate. The Administrative Agent shall in all cases be fully protected in
acting, or in refraining from acting, under this Agreement or any other Transaction Document
in accordance with a request or at the direction of the Required Lenders, and such request
or direction and any action taken or failure to act pursuant thereto shall be binding upon
all Lenders. Unless any action to be taken by the Administrative Agent under a Transaction
Document specifically provides that it be taken by the Administrative Agent alone or without
any advice or concurrence of any Lender, then the Administrative Agent may (and shall, to
the extent required hereunder) take action based upon the advice or concurrence of the
Required Lenders.
	 
	8.7	 	Notice of Facility Events; Action by Administrative Agent
	 
	 	 	The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence
of any Facility Event or any other default or termination event under the Transaction
Documents, as the case may be, unless the Administrative Agent has received notice from any
Lender, any Servicer Party or the Borrower stating that a Facility Event has occurred
hereunder or thereunder and describing such termination event or default. If the
Administrative Agent receives such a notice, it shall promptly give notice thereof to each
Lender. The Administrative Agent shall take such action concerning a Facility Event or any
other matter hereunder as may be directed by the Required Lenders, (subject to the other
provisions of this Clause 8), but until the Administrative Agent receives such directions,
the Administrative Agent may (but shall not be obligated to) take such action, or refrain
from taking such action, as the Administrative Agent deems advisable and in the best
interests of the Lenders.
	 
	8.8	 	Non-Reliance on Administrative Agent and Other Parties
	 
	 	 	Each Lender expressly acknowledges that neither the Administrative Agent nor any of its
directors, officers, agents or employees has made any representations or warranties to it
and that no act by the Administrative Agent hereafter taken, including any review of the
affairs of the Transaction Parties, shall be deemed to constitute any representation or
warranty by the Administrative Agent. Each Lender represents and warrants to the
Administrative Agent that, independently and without reliance upon the Administrative Agent
or any other Lender and based on such documents and information as it has deemed
appropriate, it has made and will continue to make its own appraisal of and investigation
into the business, operations, property, prospects, financial and other conditions and
creditworthiness of each Transaction Party and the Receivables and its own decision to enter
into this Agreement and to take, or omit, action under any Transaction Document. Except for
items expressly required to be delivered under any Transaction Document by the
Administrative Agent to any Lender, the Administrative Agent shall not have any duty or
responsibility to provide any Lender with any information concerning the Transaction Parties
or any of their

44

 

	 	 	Affiliates that comes into the possession of the Administrative Agent or any of its
directors, officers, agents, employees, attorneys-in-fact or Affiliates.
	 
	8.9	 	Successor Administrative Agent
	 
	 	 	The Administrative Agent may, upon at least thirty days notice to the Borrower, the Servicer
and each Lender, resign as Administrative Agent. Except as provided below, such resignation
shall not become effective until a successor Administrative Agent is appointed by the
Required Lenders (with the consent of the Servicer, such consent not to be unreasonably
withheld or delayed) and has accepted such appointment. If no successor Administrative
Agent shall have been appointed within 30 days after the departing Administrative Agent’s
giving of notice of resignation, the departing Administrative Agent may appoint a successor
Administrative Agent, which successor Administrative Agent shall be either a commercial bank
having a combined capital and surplus of at least $250,000,000 or a Subsidiary of such an
institution and shall be acceptable to the Servicer (such acceptance not to be unreasonably
withheld or delayed). If no successor Administrative Agent shall have been appointed within
60 days after the departing Administrative Agent’s giving of notice of resignation, the
departing Administrative Agent may petition a court of competent jurisdiction to appoint a
successor Administrative Agent, which successor Administrative Agent -shall be either a
commercial bank having a combined capital and surplus of at least $250,000,000 or a
Subsidiary of such an institution. Upon such acceptance of its appointment as
Administrative Agent hereunder by a successor Administrative Agent, such successor
Administrative Agent shall succeed to and become vested with all the rights and duties of
the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged
from any further duties and obligations under the Transaction Documents. After any retiring
Administrative Agent’s resignation hereunder, the provisions of Clause 2.6 (Indemnities by
Servicer) of the Servicing Agreement and Clause 9 (Indemnities by the Borrower) and this
Clause 8 shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was the Administrative Agent.
	 
	8.10	 	Consent to agreed upon procedures
	 
	 	 	Each Lender, by becoming a party to this Agreement, authorises the Administrative Agent (a)
to execute on its behalf a letter agreement with respect to the limited engagement of, and
consenting to the agreed upon procedures to be performed by, a firm of nationally recognised
independent accountants acceptable to the Administrative Agent in connection with the
transactions contemplated by the Transaction Documents so long as such procedures are
consistent with Clause 5.2 (Inspections; agreed upon procedures audit); and (b) to approve
additional agreed upon procedures.
	 
	9.	 	INDEMNITIES BY THE BORROWER
	 
	 	 	Without limiting any other rights that the Administrative Agent, the Lenders, the
Intermediate Transferor or any of their respective officers, directors, agents, employees,
controlling Persons or Affiliates of any of the foregoing (each, an “Indemnified Party”) may
have hereunder, under any other Transaction Document or under applicable Law the Borrower
hereby agrees to indemnify and hold harmless each Indemnified Party from and against any and
all damages, losses, claims,

45

 

	 	 	liabilities, deficiencies, costs, disbursements and expenses, including interest, penalties,
amounts paid in settlement and reasonable internal and external attorneys’ fees and
out-of-pocket expenses (all of the foregoing being collectively referred to as “Indemnified
Amounts”) incurred by any Indemnified Party (including in connection with or relating to any
investigation by an Official Body, litigation or lawsuit (actual or threatened) or order,
consent decree, judgment, claim or other action of whatever sort (including the preparation
of any defense with respect thereto)), in each case, arising out of or resulting from this
Agreement or any other Transaction Document or any transaction contemplated hereby or
thereby, excluding, however (a) Indemnified Amounts to the extent that such Indemnified
Amounts resulted from the gross negligence, fraud or wilful misconduct on the part of such
Indemnified Party, (b) recourse (except as otherwise specifically provided in this Agreement
or any other Transaction Document) for uncollectible Pool Receivables and Related Security
with respect thereto, (c) any Excluded Taxes, and (d) any Indemnified Amount to the extent
the same has been fully and finally paid in cash to such Indemnified Party pursuant to any
other provision of this Agreement or any other Transaction Document.
	 
	10.	 	MISCELLANEOUS
	 
	10.1	 	Amendments, etc
	 
	 	 	No failure on the part of the Lenders or the Administrative Agent to exercise, and no delay
in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single
or partial exercise of any right hereunder preclude any other or further exercise thereof or
the exercise of any other right. No amendment or waiver of any provision of this Agreement
or consent to any departure by any Transaction Party therefrom shall be effective unless in
writing signed by the Administrative Agent, with the prior written consent of the Required
Lenders (and, in the case of any amendment, also signed by the Borrower, the Servicer and
the Performance Undertaking Provider), and then such amendment, waiver or consent shall be
effective only in the specific instance and for the specific purpose for which given;
provided that no amendment, waiver or consent shall, unless in writing and signed by each
Lender (or, in the case of Clause 10.1(b), each Lender having its fees reduced or delayed or
its Commitment increased) and the Administrative Agent be effective, if the effect of such
amendment:

	 	(a)	 	reduces the Principal Balance of, or Interest that is payable on, account of
any Loan or delay any scheduled date for payment thereof;
	 
	 	(b)	 	reduces the fees payable by the Borrower to the Lenders, increases a Lender’s
Commitment or delays the dates on which such fees are payable;
	 
	 	(c)	 	extends the Scheduled Commitment Facility Termination Date or the Maturity
Date;
	 
	 	(d)	 	releases any portion of the Collateral if a Facility Event has occurred and is
continuing or would result therefrom;
	 
	 	(e)	 	changes any of the provisions of this Clause or the definition of “Required
Lenders”;

46

 

	 	(f)	 	amends the definition of Facility Suspension Event or any Facility Termination
Event set forth in Clause 7.1 (Facility Termination Events);
	 
	 	(g)	 	amends the definition of “Approved Currency”, “Defaulted Receivable”, “Maximum
Aggregate Principal Balance” or increase the Applicable MAPB Percentage or any
Concentration Limit; or
	 
	 	(h)	 	releases the Performance Undertaking Provider from its obligations under the
Performance Undertaking;

	 	 	and provided, further, that no amendment, waiver or consent shall increase the Commitment of
any Lender unless in writing and signed by such Lender.
	 
	 	 	Any Lender that does not respond to any request for a waiver, consent or amendment pursuant
to this Agreement within 30 Business Days’ (or such longer time as may be agreed by the
Administrative Agent and the Servicer) of the date of such Lender’s receipt of such request
shall be deemed to have voted in favour of such request.
	 
	10.2	 	Notices, etc
	 
	 	 	All communications and notices provided for hereunder shall be provided in the manner
described in Schedule 1 (Address and Notice Information) of the Schedule of Definitions.
	 
	10.3	 	Assignability

	 	(a)	 	General
	 
	 	 	 	This Agreement and each Lender’s rights and obligations hereunder shall be
assignable by such Lender and its successors and permitted assigns to any Eligible
Assignee subject to Clauses 10.3(b). Each assignor of a Loan or any interest
therein shall notify the Administrative Agent and the Borrower of any such
assignment. Each assignor of a Loan or any interest therein may, in connection with
the assignment or participation, disclose to the assignee or participant any
information relating to the Transaction Parties, including the Collateral, furnished
to such assignor by or on behalf of any Transaction Party or by the Administrative
Agent; provided that, prior to any such disclosure, the assignee or participant
agrees to preserve the confidentiality of any confidential information relating to
the Transaction Parties received by it from any of the foregoing entities in a
manner consistent with Clause 10.5(b) (Confidentiality).
	 
	 	(b)	 	Assignment by Lenders
	 
	 	 	 	Each Lender may assign to any Eligible Assignee all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitment and
any Loans or interests therein owned by it); provided, however that:

	 	(i)	 	notwithstanding that the consent of the Borrower, the Servicer
or any other person is not required for an assignment by a Lender to an
Eligible Assignee, prior to the occurrence of a Facility Suspension

47

 

	 	 	 	Event or Facility Termination Event such Lender shall consult with the
Servicer prior to any such assignment;

	 	(ii)	 	each such assignment shall be of a constant, and not a varying,
percentage of all rights and obligations under this Agreement;
	 
	 	(iii)	 	the amount being assigned pursuant to each such assignment
(determined as of the date of the Assignment and Acceptance with respect to
such assignment) shall in no event be less than the lesser of (A)
€10,000,000 (in Euro or the Euro Equivalent) and (B) all of the assigning
Lender’s Commitment;
	 
	 	(iv)	 	the parties to each such assignment shall execute and deliver
to the Administrative Agent, for its acceptance and recording in the Register
(as defined below), an Assignment and Acceptance, together with a processing
and recordation fee of €2,500. The Borrower shall have no responsibility
for such fee; and
	 
	 	(v)	 	if a Lender assigns or transfers any of its rights or
obligations under this Agreement and as a result of circumstances existing at
the date the assignment or transfer occurs, the Borrower would be obliged to
make a payment to the Eligible Assignee under Clause 2.14 (Indemnity for
reserves and expenses) or Clause 2.15 (Indemnity for Taxes), then the Eligible
Assignee is only entitled to receive payment under those Clauses to the same
extent as the assigning Lender would have been if the assignment, transfer or
change had not occurred.

	 	 	 	Upon such execution, delivery, acceptance and recording from and after the effective
date specified in such Assignment and Acceptance, (x) the assignee thereunder shall
be a party to this Agreement and, to the extent that rights and obligations under
this Agreement have been assigned to it pursuant to such Assignment and Acceptance,
have the rights and obligations of a Lender thereunder and (y) the assigning Lender
shall, to the extent that rights and obligations have been assigned by it pursuant
to such Assignment and Acceptance, relinquish such rights and be released from such
obligations under this Agreement (and, in the case of an Assignment and Acceptance
covering all or the remaining portion of an assigning Lender’s rights and
obligations under this Agreement, such Lender shall cease to be a party hereto). In
addition, any Lender or any of its Affiliates may assign any of its rights
(including rights to payment of Principal Balance and Interest) under this Agreement
to any U.S. Federal Reserve Bank without notice to or consent of any Transaction
Party, any other Lender or the Administrative Agent.
	 
	 	(c)	 	Register
	 
	 	 	 	At all times during which any Loan is outstanding, the Administrative Agent shall
maintain at its address referred to in Clause 10.2 (or such other address of the
Administrative Agent notified by the Administrative Agent to the other parties
hereto) a register as provided herein (the “Register”). All Loans and any interest
therein, and any Assignments and Acceptances of any Loans and any interest therein
delivered to and accepted by the Administrative Agent,

48

 

	 	 	 	shall be registered in the Register, and the Register shall serve as a record of
ownership that identifies the owner of each Loan and any interest therein.
Notwithstanding any other provision of this Agreement, no transfer of any Loan or
any interest therein shall be effective unless and until such transfer has been
recorded in the Register. The entries in the Register shall be conclusive and
binding for all purposes, absent manifest error, and the Borrower, the Servicer, the
Administrative Agent and the Lenders may treat each Person whose name is recorded in
the Register as a Lender under this Agreement for all purposes of this Agreement.
The Register shall be available for inspection by the Borrower or any Lender at any
reasonable time and from time to time upon reasonable prior notice.
	 
	 	(d)	 	Procedure
	 
	 	 	 	Upon its receipt of an Assignment and Acceptance executed by an assigning Lender and
an Eligible Assignee, the Administrative Agent shall, if such Assignment and
Acceptance has been duly completed, (i) accept such Assignment and Acceptance, (ii)
record the information contained therein in the Register and (iii) give prompt
notice thereof to the Borrower.
	 
	 	(e)	 	Participations
	 
	 	 	 	Each Lender may sell participations to one or more banks or other entities that are
Eligible Assignees on the date of such sale (each a “Participant”) in or to all or a
portion of its rights and obligations under this Agreement (including all or a
portion of its interests in the Loans owned by it and its Commitment); provided,
however, that:

	 	(i)	 	such Lender’s obligations under this Agreement shall remain
unchanged;
	 
	 	(ii)	 	such Lender shall remain solely responsible to the other
parties to this Agreement for the performance of such obligations;
	 
	 	(iii)	 	the Administrative Agent, the other Lenders, the Borrower and
the Servicer shall have the right to continue to deal solely and directly with
such Lender in connection with such Lender’s rights and obligations under this
Agreement; and
	 
	 	(iv)	 	any such participation is notified to the Administrative Agent
and the Servicer.

	 	 	 	Any agreement or instrument pursuant to which a Lender sells such a participation
shall provide that the Participant shall not have any right to direct the
enforcement of this Agreement or other Transaction Documents or to approve any
amendment, modification or waiver of any provision of this Agreement or the other
Transaction Documents; provided that such agreement or instrument may provide that
such Lender will not, without the consent of the Participant, agree to any
amendment, modification or waiver of a type that would require the consent of each
Lender affected thereby pursuant to Clause 10.1 (Amendments, etc.).

49

 

	 	(f)	 	Borrower and Servicer Assignment
	 
	 	 	 	Neither the Borrower nor the Servicer may assign any of its rights or obligations
hereunder or any interest herein without the prior written consent of the
Administrative Agent and the Required Lenders.
	 
	 	(g)	 	Cooperation
	 
	 	 	 	The Borrower and the Servicer agree to assist each Lender, upon its reasonable
request, in syndicating their respective Commitments hereunder, including making
management and representatives of the Servicer and the Borrower reasonably available
to participate in informational meetings with potential assignees.

	10.4	 	Costs and Expenses
	 
	 	 	In addition to the rights of indemnification granted under Clause 9 (Indemnities by the
Borrower) and the other obligations herein, the Borrower agrees to pay on demand all
reasonable out-of-pocket costs and expenses (including reasonable counsel’s fees and
expenses) plus, in each case, any applicable VAT thereon, of (a) the Administrative Agent
and GE in its capacity as Lender, incurred in connection with the preparation, execution,
delivery, administration, amendment or modification of, or any waiver or consent issued in
connection with this Agreement, the Transaction Documents and the other documents to be
delivered thereunder, and (b) any Indemnified Party incurred in connection with the
amendment or modification of, or any waiver or consent issued in connection with this
Agreement, the Transaction Documents and the other documents to be delivered thereunder or
in connection therewith, including, without limitation (i) the reasonable fees and
out-of-pocket expenses of counsel for the Administrative Agent with respect thereto and with
respect to advising the Administrative Agent as to its respective rights and remedies under
the Transaction Documents and the other documents to be delivered in connection therewith,
(ii) all reasonable fees and expenses of GE associated with any due diligence conducted by
it or on behalf of the other Indemnified Parties prior to the Closing Date and (iii) all
reasonable fees and expenses associated with any collateral audits and field examinations
conducted by the Administrative Agent or on behalf of the other Indemnified Parties after
the Closing Date in accordance with the Transaction Documents. In addition, the Borrower
agrees to pay on demand all out of pocket costs and expenses, if any (including reasonable
counsel’s fees and expenses), plus, in each case, any applicable VAT thereon, incurred by
the Lenders, the Administrative Agent and the other Indemnified Parties in connection with
the enforcement of this Agreement, the other Transaction Documents and any other document to
be delivered in connection therewith, including any restructuring, workout or administration
in connection with any Transaction Documents to which it is a party or such other documents.
	 
	10.5	 	Confidentiality

	 	(a)	 	Subject to Clause 10.5(c), the Fee Letters (including any prior drafts thereof)
and any other pricing information relating to the facility contemplated by the
Transaction Documents (including such information set forth in any commitment letter,
term sheet or proposal prior to the Closing Date)

50

 

	 	 	 	(collectively, “Product Information”) is confidential. Each of the Borrower, the
Performance Undertaking Provider and the Servicer agrees:

	 	(i)	 	to keep all Product Information confidential and to disclose
Product Information only to those of its officers, employees, agents,
accountants, legal counsel and other representatives (collectively
“Representatives”) who have a need to know such Product Information for the
purpose of assisting in the negotiation, completion and administration of the
facility contemplated hereby (the “Facility”);
	 
	 	(ii)	 	to use the Product Information only in connection with the
Facility and not for any other purpose; and
	 
	 	(iii)	 	to cause its Representatives to comply with these provisions
and to be responsible for any failure of any Representative to so comply.

	 	 	 	The provisions of this Clause 10.5 shall not apply to Product Information that is or
hereafter becomes (other than as a result of a breach of this Clause 10.5(b)) a
matter of general public knowledge. The provisions of this Clause 10.5 shall not
prohibit the Borrower, the Performance Undertaking Provider or the Servicer from
filing with any governmental or regulatory agency any information or other documents
with respect to the Facility as may be required by applicable Law.
	 
	 	(b)	 	Each Lender and the Administrative Agent agrees to maintain the confidentiality
of all non-public information with respect to the Transaction Parties, the Receivables,
the Collections, the Related Security, the Collection Accounts or any other matters
furnished or delivered to it pursuant to or in connection with the Commitment Letter,
the term sheet, this Agreement or any other Transaction Document; provided, that such
information may be disclosed (i) to such party’s Affiliates and its and their
respective officers, employees, agents, accountants, legal counsel and other
representatives (collectively “Lender Representatives”) who have a need to know such
information for the purpose of assisting in the negotiation, completion and
administration of the facility contemplated hereby, (ii) to such party’s permitted
assignees and participants to the extent such disclosure is made pursuant to a written
agreement of confidentiality substantially similar to this Clause 10.5(b), (iii) to the
extent required by applicable Law or by any Official Body and (iv) to the extent
necessary in connection with the enforcement of any Transaction Document.

	 	 	The provisions of Clause 10.5(b) shall not apply to information that is or hereafter becomes
(through a source other than the applicable Lender or the Administrative Agent or any Lender
Representative associated with such party) a matter of general public knowledge. The
provisions of this Clause 10.5 shall not prohibit any Lender or the Administrative Agent
from filing with or making available to any governmental or regulatory agency any
information or other documents with respect to the Facility as may be required by applicable
Law or requested by such governmental or regulatory agency.

51

 

	10.6	 	Execution in Counterparts
	 
	 	 	This Agreement may be executed in any number of counterparts, each of which when so executed
shall be deemed to be an original and all of which when taken together shall constitute one
and the same agreement. Delivery of an executed counterpart of a signature page to this
Agreement by facsimile or by electronic file in a format that is accessible by the recipient
shall be effective as delivery of a manually executed counterpart of this Agreement.
	 
	10.7	 	Integration; Binding Effect; Survival of Termination; Severability
	 
	 	 	This Agreement and the other Transaction Documents executed by the parties hereto on the
date hereof contain the final and complete integration of all prior expressions by the
parties hereto with respect to the subject matter hereof and shall constitute the entire
agreement among the parties hereto with respect to the subject matter hereof superseding all
prior oral or written understandings. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted assigns
(including any trustee in bankruptcy). Any provisions of this Agreement which are
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction. This Agreement shall create and constitute the continuing obligations of the
parties hereto in accordance with its terms and shall remain in full force and effect until
the Final Payout Date; provided, however, that the provisions of Clauses 2.11 (Breakage
Costs), 2.12, 2.13, 2.14, 2.15, 9, 10.4, 10.5, 10.9, 10.11, 10.13, 10.15 and 10.16 shall
survive any termination of this Agreement. If any one or more of the provisions of this
Agreement shall for any reason whatsoever be held invalid, then such provisions shall be
deemed severable from the remaining provisions of this Agreement and shall in no way affect
the validity or enforceability of such other provisions.
	 
	10.8	 	Governing law; submission to jurisdiction; appointment of process agent

	 	(a)	 	This Agreement and the rights and obligations of the parties hereto shall be
governed by and construed in accordance with English law.
	 
	 	(b)	 	Each party hereto agrees that the courts of England shall have jurisdiction to
hear and determine any suit, action or proceeding, and to settle any dispute, which may
arise out of or in connection with this Agreement, any other Transaction Document or
the transaction contemplated hereby or thereby and, for such purposes, irrevocably
submits to the non-exclusive jurisdiction of such courts.
	 
	 	(c)	 	Each of the parties hereto irrevocably waives any objection which it might now
or hereafter have to the courts referred to in Clause 10.8(b) being nominated as the
forum to hear and determine any suit, action or proceeding, and to settle any dispute,
which may arise out of or in connection with this Agreement, any other Transaction
Document or the transactions contemplated hereby or thereby and agrees not to claim any
such court is not a convenient or appropriate forum.

52

 

	 	(d)	 	Each of the parties hereto (other than such parties as are registered in
England and Wales or otherwise have a place of business in England and Wales) agrees
that the process by which any suit, action or proceeding is begun may be served on it
by being delivered in connection with any suit, action or proceeding in England to the
English Process Agent for such party.
	 
	 	(e)	 	The submission to the jurisdiction of the courts referred to in Clause 10.8(b)
shall not (and shall not be construed so as to) limit the right of any party to take
proceedings against any other party or any of its respective property in any other
court of competent jurisdiction nor shall the taking of proceedings in any other
jurisdiction preclude the taking of proceedings in any other jurisdiction, whether
concurrently or not.

	10.9	 	Right of Setoff
	 
	 	 	Each Lender is hereby authorised (in addition to any other rights it may have) at any time
after the occurrence of the Facility Termination Date due to the occurrence of a Facility
Termination Event to set off, appropriate and apply (without presentment, demand, protest or
other notice which are hereby expressly waived) any amounts and any other indebtedness held
or owing by such Lender to, or for the account of, the Borrower against the amount of the
Transaction Party Obligations owing by the Borrower to such Person.
	 
	10.10	 	Ratable payments
	 
	 	 	If any Lender, whether by setoff or otherwise, has payment made to it with respect to any
Transaction Party Obligation in a greater proportion than that received by any other Lender
entitled to receive a ratable share of such Transaction Party Obligation, such Lender
agrees, promptly upon demand, to purchase for cash without recourse or warranty a portion of
such Transaction Party Obligation held by the other Lenders so that after such purchase each
Lender will hold its ratable proportion of such Transaction Party Obligation; provided that
if all or any portion of such excess amount is thereafter recovered from such Lender, such
purchase shall be rescinded and the purchase price restored to the extent of such recovery,
but without interest.
	 
	10.11	 	Limitation of Liability
	 
	 	 	No claim may be made by any party against any other party or their respective Affiliates,
directors, officers, employees, attorneys or agents (each a
“Default Party”) for any
special, indirect, consequential or punitive damages in respect of any claim for breach of
contract or any other theory of liability arising out of or related to the transactions
contemplated by this Agreement or any other Transaction Document, or any act, omission or
event occurring in connection herewith or therewith, except with respect to any claim
arising out of the willful misconduct or gross negligence of such Default Party; and each
party hereto hereby waives, releases, and agrees not to sue upon any claim for any such
damages, whether or not accrued and whether or not known or suspected to exist in its
favour.

53

 

	10.12	 	Limitation on the addition and termination of Originators

	 	(a)	 	Without limiting the right of any Originator to terminate its rights and
obligations to sell Receivables to a Purchaser pursuant to and in accordance with the
applicable Originator Sale Agreement, the Borrower shall not consent to any request
made to terminate any Originator Sale Agreement or to terminate the right or obligation
of any Originator to continue selling its Receivables to the Borrower or the
Intermediate Transferor (as applicable) thereunder, nor will any Originator which is
the subject of such request be terminated under an Originator Sale Agreement, in each
case unless (i) the Servicer provides the Administrative Agent with a certificate
(signed by a Responsible Officer of the Servicer) which attaches a Daily Report giving
pro forma effect to any reduction in the Net Eligible Receivables Balance and Net
Eligible Funding Balance resulting from the termination of such Originator or
Originator Sale Agreement, and which certifies that, after giving pro forma effect to
such termination and any prepayments of Loans on or prior to the date of such
termination, the Aggregate Principal Balance does not exceed the Maximum Aggregate
Principal Balance, (ii) no Facility Event (other than with respect to the Originator so
terminated) has occurred and is continuing (both before and after giving effect to such
termination) and (iii) the Administrative Agent will have received five (5) Business
Days’ prior written notice of such termination.
	 
	 	(b)	 	The Borrower will not consent to the addition of a new Originator under an
Originator Sale Agreement except (i) with the consent of the Administrative Agent and
the Required Lenders (such consent not to be unreasonably withheld), (ii) upon the
satisfaction of the conditions precedent specified in such Originator Sale Agreement
and (iii) upon the delivery of an amendment hereto reflecting the addition of such new
Originator.
	 
	 	(c)	 	The Borrower will not enter into any new Originator Sale Agreement and the
Borrower will not enter into any new Intermediate Transfer Agreement unless (i) each
Person proposed to become a new Originator thereunder is organised under the laws of an
Approved Originator Jurisdiction, and to the extent permitted by Law, has become a
party to the Servicing Agreement as a Sub-Servicer and, with respect to a new
Intermediate Transferor, is reasonably satisfactory to each Lender, (ii) the Originator
Sale Agreement is in form and substance reasonably satisfactory to the Required
Lenders, (iii) the Borrower shall have delivered such instruments, opinions and other
documents as the Required Lenders (or all Lenders with respect to any new Intermediate
Transferor) may reasonably request in connection therewith (including amendment of the
Performance Undertaking to include the obligations of any new Originator and amendment
of Clause 2.6 (Application of Collections prior to Facility Termination Date) to adjust
the allocations therein), all of which shall be in form and substance reasonably
satisfactory to the Required Lenders, (iv) no Facility Event has occurred and is
continuing or would result therefrom and (v) the Administrative Agent shall have
received an amendment hereto reflecting such new Originator Sale Agreement and/or
Intermediate Transfer Agreement.

54

 

	 	(d)	 	The provisions of paragraphs (b) and (c) above shall not apply to the addition
of an Originator the accession of whom to the Transaction Documents is effected in
accordance with Clause 4 (Accession of Originators) in connection with the satisfaction
of the relevant conditions precedent to the Initial Effective Date applicable to such
Originator.

	10.13	 	Judgment Currency

	 	(a)	 	If, for the purpose of obtaining judgment in any court, it is necessary to
convert a sum owing hereunder in one currency into another currency, each party hereto
agrees, to the fullest extent that it may effectively do so, that the rate of exchange
used shall be that at which in accordance with normal banking procedures in the
relevant jurisdiction the first currency could be purchased with such other currency on
the Business Day immediately preceding the day on which final judgment is given.
	 
	 	(b)	 	The obligations of the Borrower in respect of any sum due to any party hereto
or any holder of the obligations owing hereunder (the “Applicable Creditor”) shall,
notwithstanding any judgment in a currency (the “Judgment Currency”) other than the
currency in which such sum is stated to be due hereunder (the “Agreement Currency”), be
discharged only to the extent that, on the Business Day following receipt by the
Applicable Creditor of any sum adjudged to be so due in the Judgment Currency, the
Applicable Creditor may in accordance with normal banking procedures in the relevant
jurisdiction purchase the Agreement Currency with the Judgment Currency; if the amount
of the Agreement Currency so purchased is less than the sum originally due to the
Applicable Creditor in the Agreement Currency, the Borrower agrees, as a separate
obligation and notwithstanding any such judgment, to indemnify the Applicable Creditor
against such loss. The obligations of the Borrowers contained in this Clause 10.13
shall survive the termination of this Agreement and the payment of all other amounts
owing hereunder.

	10.14	 	Contracts (Rights of Third Parties) Act (1999)

	 	(a)	 	Except in respect of the Indemnified Parties, Transaction Parties and Secured
Parties not party hereto which Persons (including, for the avoidance of doubt their
respective successors and permitted assigns) are intended to have the benefit of this
Agreement pursuant to the Contracts (Rights of Third Parties) Act (1999), the parties
hereto do not intend any terms of this Agreement to be enforceable pursuant to the
Contracts (Rights of Third Parties) Act (1999).
	 
	 	(b)	 	Notwithstanding Clause 10.14(a) and any other term or condition of this
Agreement, but subject to Clause 10.1 (Amendments, etc.), the consent of any Person who
is not a party hereto (other than the Transaction Parties) is not required to rescind
or vary this Agreement at any time.

	10.15	 	USA Patriot Act
	 
	 	 	Each Lender hereby notifies the Borrower that pursuant to the requirements of the USA
Patriot Act (Title III of US Pub. L. 107-56 (signed into law October 26, 2001))

55

 

	 	 	and any similar Law in any relevant jurisdiction (the “Acts”), it is required to obtain,
verify and record information that identifies the Transaction Parties, which information
includes the name and address of each Transaction Party and other information that will
allow such Lender to identify such Transaction Party in accordance with the Acts.
	 
	10.16	 	No proceeding; limited recourse

	 	(a)	 	Each of the parties hereto hereby agrees that (i) it will not institute against
any Transaction SPV any proceeding of the type referred to in the definition of Event
of Bankruptcy until there shall have elapsed two years plus one day since the Final
Payout Date (or, in the case of the Spanish Account SPV, the Seller Payout Date with
respect to all Originators related to the Spanish Account SPV) and (ii) notwithstanding
anything contained herein or in any other Transaction Document to the contrary, the
obligations of each Transaction SPV under the Transaction Documents are solely the
corporate obligations of such Transaction SPV and shall be payable solely to the extent
of funds which are received by such Transaction SPV pursuant to the Transaction
Documents and available for such payment in accordance with the terms of the
Transaction Documents and shall be non-recourse other than with respect to such
available funds and, without limiting Clause 10.16, if ever and until such time as such
Transaction SPV has sufficient funds to pay such obligation shall not constitute a
claim against such Transaction SPV.
	 
	 	(b)	 	No recourse under any obligation, covenant or agreement of any Transaction SPV
contained in this Agreement or any other Transaction Document shall be had against any
incorporator, stockholder, officer, director, member, manager, employee or agent of
such Transaction SPV by the enforcement of any assessment or by any legal or equitable
proceeding, by virtue of any statute or otherwise; it being expressly agreed and
understood that this Agreement and the other Transaction Documents are solely a
corporate obligation of such Transaction SPV, and that no personal liability whatever
shall attach to or be incurred by any incorporator, stockholder, officer, director,
member, manager, employee or agent of any Transaction SPV or any of them under or by
reason of any of the obligations, covenants or agreements of such Transaction SPV
contained in this Agreement or any other Transaction Document, or implied therefrom,
and that any and all personal liability for breaches by any Transaction SPV of any of
such obligations, covenants or agreements, either at common law or at equity, or by
statute, rule or regulation, of every such incorporator, stockholder, officer,
director, member, manager, employee or agent is hereby expressly waived as a condition
of and in consideration for the execution of this Agreement; provided that the
foregoing shall not relieve any such Person from any liability it might otherwise have
as a result of fraudulent actions taken or fraudulent omissions made by them.

56

 

[Schedules and Exhibits Omitted]

 

 

EXECUTION of Receivables Loan Agreement:

The parties have shown their acceptance of the terms of this Agreement by executing it below.

The Borrower

	 	 	 
	Given under the Common Seal
	 
	 	 
	of Dana Europe Financing (Ireland) Limited:
	 
	 	 
	/s/ Frank Heffernan
 

	 	 
	 
	 	 
	Director
	 
	 	 
	/s/ Michelle Hall
 

	 	 
	 
	 	 
	Secretary
	Structured Finance Management (Ireland) Limited
	as Secretary

S-1

 

EXECUTION of Receivables Loan Agreement:

The Servicer

DANA INTERNATIONAL LUXEMBOURG SARL

	 	 	 
	Signature:

	 	/s/ Cornelia v. Künsberg
	 
	 	 
	Name:

	 	Cornelia von Künsberg
	 
	 	 
	Title/Authority: Authorised Director and
PoA Holder

S-1

 

EXECUTION of Receivables Loan Agreement:

Lender

	 	 	 	 	 
	Signed by Adrian Spurling as attorney
	for GE Leveraged Loans Limited
	 
	 	 	 	 
	/s/ Adrian Spurling
 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	under a power of attorney dated 22 March 2007
	 
	 	 	 	 
	Attorney for GE Leveraged Loans Limited

S-3

 

EXECUTION of Receivables Loan Agreement:

The Administrative Agent

	 	 	 	 	 
	Signed by Adrian Spurling as attorney
	for GE Leveraged Loans Limited
	 
	 	 	 	 
	/s/ Adrian Spurling
 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	under a power of
attorney dated 22 March 2007
	 
	 	 	 	 
	Attorney for GE
Leveraged Loans Limited

S-4

 

EXECUTION of Receivables Loan Agreement:

Performance Undertaking Provider

DANA INTERNATIONAL LUXEMBOURG SARL

	 	 	 
	Signature:

	 	/s/ Cornelia v. Künsberg
	 
	 	 
	Name:

	 	Cornelia von Künsberg
	 
	 	 
	Title/Authority:

	 	Authorised Director and PoA Holder

S-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]