Document:

Pooling and Servicing Agreement

 Exhibit 4.3 

 
  

 
 POOLING AND SERVICING
AGREEMENT 
 AMONG 

ALLY AUTO ASSETS LLC 

ALLY BANK 

AND 

ALLY FINANCIAL INC. 

DATED AS OF AUGUST 18, 2010 
  

 
  

 TABLE OF CONTENTS 

 

					
	 	  	 	  	Page
		
	ARTICLE I DEFINITIONS	  	2
			
	 SECTION 1.01
	  	Definitions	  	2
	 SECTION 1.02
	  	Owner of a Receivable	  	2
		
	ARTICLE II PURCHASE AND SALE OF RECEIVABLES	  	2
			
	 SECTION 2.01
	  	Purchase and Sale of Receivables	  	2
	 SECTION 2.02
	  	Receivables Purchase Price	  	3
	 SECTION 2.03
	  	The Closing	  	4
	 SECTION 2.04
	  	Custody of Receivable Files	  	4
		
	ARTICLE III ADMINISTRATION AND SERVICING OF RECEIVABLES	  	4
			
	 SECTION 3.01
	  	Duties of the Servicer	  	4
	 SECTION 3.02
	  	Collection of Receivable Payments	  	5
	 SECTION 3.03
	  	[Reserved]	  	6
	 SECTION 3.04
	  	Realization Upon Liquidating Receivables	  	6
	 SECTION 3.05
	  	Maintenance of Insurance Policies	  	6
	 SECTION 3.06
	  	Maintenance of Security Interests in Vehicles	  	6
	 SECTION 3.07
	  	Covenants, Representations and Warranties of the Servicer	  	6
	 SECTION 3.08
	  	Purchase of Receivables Upon Breach of Covenant	  	8
	 SECTION 3.09
	  	Basic Servicing Fee; Payment of Certain Expenses by Servicer	  	8
	 SECTION 3.10
	  	Servicer’s Accounting	  	9
	 SECTION 3.11
	  	Application of Collections	  	9
		
	ARTICLE IV REPRESENTATIONS AND WARRANTIES	  	10
			
	 SECTION 4.01
	  	Representations and Warranties as to the Receivables	  	10
	 SECTION 4.02
	  	Additional Representations and Warranties of the Seller	  	12
	 SECTION 4.03
	  	Representations and Warranties of Ally Auto	  	14
		
	ARTICLE V ADDITIONAL AGREEMENTS	  	15
			
	 SECTION 5.01
	  	Conflicts With Further Transfer and Servicing Agreements	  	15
	 SECTION 5.02
	  	Protection of Title	  	15
	 SECTION 5.03
	  	Other Liens or Interests	  	15
	 SECTION 5.04
	  	Repurchase Events	  	16
	 SECTION 5.05
	  	Indemnification	  	16
	 SECTION 5.06
	  	Further Assignments	  	16
	 SECTION 5.07
	  	Pre-Closing Collections	  	16
		
	ARTICLE VI CONDITIONS	  	17
			
	 SECTION 6.01
	  	Conditions to Obligation of Ally Auto	  	17
	 SECTION 6.02
	  	Conditions to Obligation of the Seller	  	17
		
	ARTICLE VII MISCELLANEOUS PROVISIONS	  	18
			
	 SECTION 7.01
	  	Amendment	  	18
	 SECTION 7.02
	  	Survival	  	18
	 SECTION 7.03
	  	Notices	  	18
	 SECTION 7.04
	  	Governing Law	  	18
	 SECTION 7.05
	  	Waivers	  	18
	 SECTION 7.06
	  	Costs and Expenses	  	18
	 SECTION 7.07
	  	Confidential Information	  	19

  

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	 SECTION 7.08
	  	Headings	  	19
	 SECTION 7.09
	  	Counterparts	  	19
	 SECTION 7.10
	  	No Petition Covenant	  	19
	 SECTION 7.11
	  	Limitations on Rights of Others	  	19
	 SECTION 7.12
	  	Merger and Consolidation of the Seller, the Servicer or Ally Auto	  	19
	 SECTION 7.13
	  	Assignment	  	20

  

			
	EXHIBIT A	  	Form of First Step Receivables Assignment
		
	SCHEDULE A	  	Schedule of Receivables
		
	APPENDIX A	  	Definitions, Rules of Construction and Notices
		
	APPENDIX B	  	Additional Representations and Warranties

  

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 THIS POOLING AND SERVICING AGREEMENT, dated as of August 18, 2010, among ALLY AUTO
ASSETS LLC, a Delaware limited liability company (“Ally Auto”), ALLY BANK, a Utah chartered bank (the “Seller”), and Ally Financial Inc., a Delaware corporation, as servicer (the “Servicer”).

 WHEREAS, Ally Auto desires to purchase on the date hereof a portfolio of automobile and light truck retail instalment sale
contracts, direct purchase money loans and related rights owned by the Seller; 
 WHEREAS, the Seller is willing to sell on the
date hereof such contracts and related rights to Ally Auto; 
 WHEREAS, Ally Auto may wish to sell or otherwise transfer on the
date hereof such contracts and related rights, or interests therein, to a trust, corporation, partnership or other entity (any such entity being the “Issuing Entity”); 

WHEREAS, the Issuing Entity may issue debentures, notes, participations, certificates of beneficial interest, partnership interests or
other interests or securities (collectively, any such issued interests or securities being “Securities”) to fund its acquisition of such contracts and related rights; 

WHEREAS, the Issuing Entity may wish to provide in the agreements pursuant to which it acquires its interest in such contracts and
related rights and issues the Securities (the Second Step Receivables Assignment, the Trust Agreement, the Notes, the Certificates, the Trust Sale and Servicing Agreement and the Indenture being collectively the “Further Transfer and
Servicing Agreements”) that the Servicer shall service such contracts; 
 WHEREAS, the Servicer is willing to service
such contracts in accordance with the terms hereof for the benefit of Ally Auto and, by its execution of the Further Transfer and Servicing Agreements, will be willing to service such contracts in accordance with the terms of such Further Transfer
and Servicing Agreements for the benefit of the Issuing Entity and each other party identified or described herein or in the Further Transfer and Servicing Agreements as having an interest as owner, trustee, secured party, or holder of Securities
(the Issuing Entity and all such parties under the Further Transfer and Servicing Agreements being “Interested Parties”) with respect to such contracts, and the proceeds thereof, as the interests of such parties may appear from time
to time. 

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

DEFINITIONS 

SECTION 1.01 Definitions. Certain capitalized terms used in this Agreement are defined in and shall have the respective meanings
assigned to them in Part I of Appendix A to this Agreement. All references herein to “the Agreement” or “this Agreement” are to this Pooling and Servicing Agreement as it may be amended, supplemented or
modified from time to time, and all references herein to Articles and Sections are to Articles or Sections of this Agreement unless otherwise specified. The rules of construction set forth in Part II of such Appendix A shall be applicable to
this Agreement. 
 SECTION 1.02 Owner of a Receivable. For purposes of this Agreement, the “Owner” of a
Receivable shall mean Ally Auto until the sale, transfer, assignment or other conveyance of such Receivable by Ally Auto pursuant to the terms of the Further Transfer and Servicing Agreements, and thereafter shall mean the Issuing Entity;
provided, that the Seller, the Servicer or Ally Auto, as applicable, shall be the “Owner” of any Receivable from and after the time that such Person shall acquire such Receivable, whether pursuant to Section 3.08
or 5.04 of this Agreement, any provision of the Further Transfer and Servicing Agreements or otherwise. 
 ARTICLE
II 
 PURCHASE AND SALE OF RECEIVABLES 

SECTION 2.01 Purchase and Sale of Receivables. 

(a) Purchase. On the Closing Date, subject to satisfaction of the conditions specified in Article VI and the First Step
Receivables Assignment (and, in any event, immediately prior to consummation of the related transactions contemplated by the Further Transfer and Servicing Agreements, if any), the Seller shall sell, transfer, assign and otherwise convey to Ally
Auto, without recourse: 
 (i) all right, title and interest of the Seller in, to and under the Receivables listed on the
Schedule of Receivables and all monies received thereon on and after the Cutoff Date, exclusive of any amounts allocable to the premium for physical damage collateral protection insurance required by the Seller or the Servicer covering any related
Financed Vehicle; 
 (ii) the interest of the Seller in the security interests in the Financed Vehicles granted by Obligors
pursuant to the Receivables and, to the extent permitted by law, any accessions thereto; 
 (iii) the interest of the Seller in
any proceeds from claims on any physical damage, credit life, credit disability or other insurance policies covering Financed Vehicles or Obligors; 

(iv) the interest of the Seller in any proceeds from recourse against Dealers on the Receivables; 

 

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 (v) all right, title and interest of the Seller in, to and under the First Step Receivables
Assignment; and 
 (vi) all present and future claims, demands, causes and choses in action in respect of any or all the
foregoing described in clauses (i) through (v) above and all payments on or under and all proceeds of every kind and nature whatsoever in respect of any or all the foregoing, including all proceeds of the conversion of any or
all of the foregoing, voluntary or involuntary, into cash or other liquid property, all cash proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance proceeds, investment property,
payment intangibles, general intangibles, condemnation awards, rights to payment of any and every kind and other forms of obligations and receivables, instruments and other property which at any time constitute all or part of or are included in the
proceeds of any of the foregoing. 
 The property described in clauses (i) through (vi) above is
referred to herein collectively as the “Purchased Property.” 
 (b) It is the intention of the Seller and Ally
Auto that the transfer and assignment of Receivables contemplated by this Agreement and the First Step Receivables Assignment shall constitute a sale of the Receivables from the Seller to Ally Auto and the beneficial interest in and title to the
Receivables shall not be part of the Seller’s estate in the event of the filing of a petition for insolvency, receivership or conservatorship by or against the Seller or placement into receivership or conservatorship of the Seller under any
relevant bankruptcy, insolvency, receivership or conservatorship law. 
 (c) The sale, transfer, assignment and other
conveyances of Receivables contemplated by this Agreement and the First Step Receivables Assignment do not constitute and are not intended to result in the creation of or an assumption by Ally Auto of any obligation of the Seller, the Servicer or
any other Person to the Obligors, Dealers, insurers or any other Person in connection with the Receivables, any Dealer Agreements, any insurance policies or any other agreement or instrument relating to any of them. 

SECTION 2.02 Receivables Purchase Price. In consideration for the Purchased Property, Ally Auto shall, on the Closing Date, pay to
the Seller an amount equal to the Initial Aggregate Receivables Principal Balance in respect of the Receivables and the Seller shall execute and deliver to Ally Auto an assignment in the form attached hereto as Exhibit A (the “First
Step Receivables Assignment”). The Initial Aggregate Receivables Principal Balance is equal to $1,130,014,281.54. A portion of the Initial Aggregate Receivables Principal Balance shall be paid to the Seller in immediately available funds
and the balance of such purchase price shall be paid through one or both of (a) an increase in the amount owing from Ally Auto to Seller under the Intercompany Advance Agreement (as a result of an advance made thereunder from Seller to Ally
Auto) and (b) an increase in Seller’s capital account in Ally Auto (as a result of a deemed capital contribution from Seller to Ally Auto). The amount advanced under the Intercompany Advance Agreement and the amount of the deemed capital
contribution shall be duly recorded by the Seller and Ally Auto. 
  

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 SECTION 2.03 The Closing. The sale and purchase of the Receivables shall take place
at the offices of Kirkland & Ellis LLP, 300 North LaSalle Street, Chicago, Illinois 60654, on the Closing Date at a time mutually agreeable to the Seller and Ally Auto, and will occur simultaneously with the closing of transactions
contemplated by the Further Transfer and Servicing Agreements. 
 SECTION 2.04 Custody of Receivable Files. In connection
with the sale, transfer and assignment of the Receivables to Ally Auto pursuant to this Agreement and the First Step Receivables Assignment, Ally Auto, simultaneously with the execution and delivery of this Agreement, shall enter into the Custodian
Agreement with the Custodian, pursuant to which Ally Auto shall revocably appoint the Custodian, and the Custodian shall accept such appointment, to act as the agent of Ally Auto as Custodian of the following documents or instruments which shall be
constructively delivered to Ally Auto with respect to each Receivable: 
 (a) the fully executed original of the instalment sale
contract or direct purchase money loan, as applicable, for such Receivable; 
 (b) documents evidencing or related to any
Insurance Policy; 
 (c) the original credit application of each Obligor, fully executed by each such Obligor on the
Seller’s customary form, or on a form approved by the Seller, for such application; 
 (d) where permitted by law, the
original certificate of title (when received) and otherwise such documents, if any, that the Seller keeps on file in accordance with its customary procedures indicating that the Financed Vehicle is owned by the Obligor and subject to the interest of
the Seller as first lienholder or secured party; and 
 (e) any and all other documents that the Seller keeps on file in
accordance with its customary procedures relating to the individual Receivable, Obligor or Financed Vehicle. 
 ARTICLE III

 ADMINISTRATION AND SERVICING OF RECEIVABLES 

SECTION 3.01 Duties of the Servicer. 

(a) The Servicer is hereby appointed and authorized to act as agent for the Owner of the Receivables and in such capacity shall manage,
service, administer and make collections on the Receivables with reasonable care, using that degree of skill and attention that the Servicer exercises with respect to comparable motor vehicle related receivables that it services for itself or
others. The Servicer hereby accepts such appointment and authorization and agrees to perform the duties of Servicer with respect to the Receivables set forth herein and in the Further Transfer and Servicing Agreements. 

(b) The Servicer’s duties shall include collection and posting of all payments, responding to inquiries of Obligors, investigating
delinquencies, sending billing statements to Obligors, policing the collateral, accounting for collections and furnishing monthly and annual 

 

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statements to the Owner of any Receivables with respect to distributions, generating federal income tax information and performing the other duties specified herein. Subject to the provisions of
Section 3.02, the Servicer shall follow its customary standards, policies and procedures and shall have full power and authority, acting alone, to do any and all things in connection with such managing, servicing, administration and
collection that it may deem necessary or desirable. 
 (c) Without limiting the generality of the foregoing, the Servicer is
hereby authorized and empowered by the Owner of the Receivables, pursuant to this Section 3.01, to execute and deliver, on behalf of all Interested Parties, or any of them, any and all instruments of satisfaction or cancellation, or of
partial or full release or discharge, and all other comparable instruments, with respect to the Receivables and the Financed Vehicles. The Servicer is hereby authorized to commence, in its own name or in the name of the Owner of such Receivable a
legal proceeding, whether through judicial process or (with respect to repossession of a Financed Vehicle) non-judicial process, participate in a voluntary or involuntary liquidation proceeding to enforce a Liquidating Receivable or Receivable as
contemplated by Section 3.04, to enforce all obligations of the Seller, the Servicer, Ally Auto or the Issuing Entity under this Agreement and under the Further Transfer and Servicing Agreements or to commence or participate in a legal
proceeding (including a bankruptcy case) relating to or involving a Receivable or a Liquidating Receivable. If the Servicer commences or participates in such a legal proceeding in its own name, the Servicer is hereby authorized and empowered by the
Owner of the Receivables pursuant to this Section 3.01 to obtain possession of the related Financed Vehicle and immediately and without further action on the part of the Owner or the Servicer, the Owner of such Receivable shall thereupon
automatically assign in trust such Receivable and the security interest in the related Financed Vehicle to the Servicer for the benefit of the Interested Parties immediately prior to such legal or liquidation proceeding for purposes of commencing or
participating in any such proceeding as a party or claimant. Upon such automatic assignment, the Servicer will be, and will have all the rights and duties of, a secured party under the UCC and other applicable law with respect to such Receivable and
the related Financed Vehicle. At the Servicer’s request from time to time, the Owner of a Receivable assigned under this Section 3.01 shall provide the Servicer with evidence of the assignment in trust for the benefit of the
Interested Parties as may be reasonably necessary for the Servicer to take any of the actions set forth in the following sentence. 

(d) The Servicer is hereby authorized and empowered by the Owner of a Receivable to execute and deliver in the Servicer’s name any
notices, demands, claims, complaints, responses, affidavits or other documents or instruments in connection with any such proceeding. Any Owner of Receivables shall furnish the Servicer with any powers of attorney and other documents and take any
other steps which the Servicer may deem necessary or appropriate to enable the Servicer to carry out its servicing and administrative duties under this Agreement and the Further Transfer and Servicing Agreements. Except to the extent required by the
preceding two sentences, the authority and rights granted to the Servicer in this Section 3.01 shall be nonexclusive and shall not be construed to be in derogation of the retention by the Owner of a Receivable of equivalent authority and
rights. 
 SECTION 3.02 Collection of Receivable Payments. The Servicer shall make reasonable efforts to collect all
payments called for under the terms and provisions of the 
  

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Receivables as and when the same shall become due, and shall follow such collection practices, policies and procedures as it follows with respect to comparable motor vehicle related receivables
that it services for itself or others in connection therewith. Except as provided in Section 3.07(a)(iii), the Servicer is hereby authorized to grant extensions, rebates or adjustments on a Receivable without the prior consent of the
Owner of such Receivable. The Servicer is authorized in its discretion to waive any prepayment charge, late payment charge or any other fees that may be collected in the ordinary course of servicing such Receivable. 

SECTION 3.03 [Reserved]. 

SECTION 3.04 Realization Upon Liquidating Receivables. The Servicer shall use reasonable efforts, consistent with its customary
practices, policies and procedures, to repossess or otherwise comparably convert the ownership of any Financed Vehicle that it has reasonably determined should be repossessed or otherwise converted following a default under the Receivable secured by
the Financed Vehicle. The Servicer is authorized to follow such customary practices, policies and procedures as it follows with respect to comparable motor vehicle related receivables that it services for itself or others, which customary practices,
policies and procedures may include reasonable efforts to realize upon any recourse to Dealers, selling the related Financed Vehicle at public or private sale and other actions by the Servicer in order to realize upon such a Receivable. The
foregoing is subject to the provision that, in any case in which the Financed Vehicle shall have suffered damage, the Servicer shall not expend funds in connection with any repair or towards the repossession of such Financed Vehicle unless it shall
determine in its discretion that such repair and/or repossession shall increase the proceeds of liquidation of the related Receivable by an amount greater than the amount of such expenses. The Servicer shall be entitled to receive Liquidation
Expenses with respect to each Liquidating Receivable at such time as the Receivable becomes a Liquidating Receivable (or as may otherwise be provided in the Further Transfer and Servicing Agreements). 

SECTION 3.05 Maintenance of Insurance Policies. The Servicer shall, in accordance with its customary practices, policies and
procedures, require that each Obligor shall have obtained physical damage insurance covering the Financed Vehicle as of the execution of the related Receivable. The Servicer shall, in accordance with its customary practices, policies and procedures,
monitor such physical damage insurance with respect to each Receivable. 
 SECTION 3.06 Maintenance of Security Interests in
Vehicles. The Servicer shall, in accordance with its customary practices, policies and procedures and at its own expense, take such steps as are necessary to maintain perfection of the security interest created by each Receivable in the related
Financed Vehicle. The Owner of each Receivable hereby authorizes the Servicer to re-perfect such security interest on behalf of such Owner, as necessary because of the relocation of a Financed Vehicle, or for any other reason. 

SECTION 3.07 Covenants, Representations and Warranties of the Servicer. As of the Closing Date, the Servicer hereby makes the
following representations, warranties and covenants on which Ally Auto relies in accepting the Receivables hereunder and pursuant to the related First Step Receivables Assignment, and on which the Issuing Entity shall rely in accepting such
Receivables and executing and delivering the Securities under the Further Transfer and Servicing Agreements. 
  

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 (a) The Servicer covenants that from and after the closing hereunder: 

(i) Liens in Force. Except as contemplated in this Agreement or the Further Transfer and Servicing Agreements, the Servicer shall
not release in whole or in part any Financed Vehicle from the security interest securing the related Receivable; 
 (ii) No
Impairment. The Servicer shall do nothing to impair the rights or security interest of Ally Auto or any Interested Party in and to the Purchased Property; and 

(iii) No Modifications. The Servicer shall not amend or otherwise modify any Receivable such that the Amount Financed, the Annual
Percentage Rate, or the number of originally scheduled due dates is altered or such that the last scheduled due date occurs after the Final Scheduled Distribution Date. 

(b) Upon the execution of this Agreement and the Further Transfer and Servicing Agreements, the Servicer represents and warrants to the
Issuing Entity and Ally Auto that as of the Closing Date: 
 (i) Organization and Good Standing. The Servicer has been
duly formed and is validly existing and in good standing under the laws of its State of incorporation, with power and authority to own its properties and to conduct its business as such properties are presently owned and such business is presently
conducted; 
 (ii) Due Qualification. The Servicer is duly qualified to do business as a foreign entity in good
standing, and has obtained all necessary licenses and approvals, in all jurisdictions in which the ownership or lease of property or the conduct of its business (including the servicing of the Receivables) requires or shall require such
qualification; 
 (iii) Power and Authority. The Servicer has the power and authority to execute and deliver this
Agreement and the Further Transfer and Servicing Agreements and to carry out the terms of such agreements; the Servicer has the power, authority and legal right to service the Receivables as provided herein and in the Further Transfer and Servicing
Agreements and the Servicer’s execution, delivery and performance of this Agreement and the Further Transfer and Servicing Agreements have been duly authorized by the Servicer by all necessary corporate action; 

(iv) Binding Obligation. The Further Transfer and Servicing Agreements and this Agreement, when duly executed and delivered,
shall constitute the legal, valid and binding obligations of the Servicer enforceable in accordance with their respective terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, or other similar laws affecting the
enforcement of creditors’ rights in general and by general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law; 

 

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 (v) No Violation. The consummation by the Servicer of the transactions contemplated
by this Agreement and the Further Transfer and Servicing Agreements, and the fulfillment by the Servicer of the terms hereof and thereof, shall not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or
without notice or lapse of time) a default under, the articles of incorporation or bylaws (or similar organizational documents) of the Servicer, or any indenture, agreement, mortgage, deed of trust or other instrument to which the Servicer is a
party or by which it is bound, or result in the creation or imposition of any Lien upon any of its properties pursuant to the terms of any such indenture, agreement, mortgage, deed of trust or other instrument, other than this Agreement and the
Further Transfer and Servicing Agreements, or violate any law or, to the best of the Servicer’s knowledge, any order, rule or regulation applicable to the Servicer of any court or of any federal or State regulatory body, administrative agency
or other governmental instrumentality having jurisdiction over the Servicer or any of its properties; and 
 (vi) No
Proceedings. To the Servicer’s knowledge, there are no proceedings or investigations pending, or threatened, before any court, regulatory body, administrative agency or other tribunal or governmental instrumentality having jurisdiction over
the Servicer or its properties (A) asserting the invalidity of this Agreement and the Further Transfer and Servicing Agreements or any Securities issued thereunder, (B) seeking to prevent the issuance of such Securities or the consummation
of any of the transactions contemplated by the Further Transfer and Servicing Agreements, or (C) seeking any determination or ruling that might materially and adversely affect this Agreement, the performance by the Servicer of its obligations
under, or the validity or enforceability of, the Further Transfer and Servicing Agreements. 
 SECTION 3.08 Purchase of
Receivables Upon Breach of Covenant. Upon discovery by any of the Seller, the Servicer, Ally Auto or any party under the Further Transfer and Servicing Agreements of a breach of any of the covenants set forth in Sections 3.06 and
3.07(a), the party discovering such breach shall give prompt written notice thereof to the others. As of the last day of the second Monthly Period following its discovering or receiving notice of such breach (or, at the Servicer’s
election, the last day of the first Monthly Period so following), the Servicer shall, unless it shall have cured such breach in all material respects, purchase from the Owner thereof any Receivable materially and adversely affected by such breach as
determined by such Owner and, on the related Distribution Date, the Servicer shall pay the Administrative Purchase Payment. It is understood and agreed that the obligation of the Servicer to purchase any Receivable with respect to which such a
breach has occurred and is continuing shall, if such obligation is fulfilled, constitute the sole remedy against the Servicer for such breach available to Ally Auto or any Interested Party. 

SECTION 3.09 Basic Servicing Fee; Payment of Certain Expenses by Servicer. The Servicer is entitled to receive the Basic Servicing
Fee out of collections in respect of the Receivables and other available funds, as and to the extent set forth in the Further Transfer and Servicing Agreements. The Servicer shall also be entitled to Investment Earnings as, and to the extent, set
forth in the Further Transfer and Servicing Agreements. Subject to any limitations on the Servicer’s liability under the Further Transfer and Servicing Agreements, the Servicer shall be required to pay all expenses incurred by it in connection
with its activities under this Agreement and under the Further Transfer and Servicing Agreements (including fees and 

 

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disbursements of the Issuing Entity, any trustees and independent accountants, taxes imposed on the Servicer, expenses incurred in connection with distributions and reports to holders of
Securities and all other fees and expenses not expressly stated under this Agreement or the Further Transfer and Servicing Agreements to be for the account of the holders of Securities). 

SECTION 3.10 Servicer’s Accounting. On each Determination Date under a Further Transfer and Servicing Agreement, the Servicer
shall deliver to each of the trustees and other applicable parties under the Further Transfer and Servicing Agreements and to Ally Auto and the Rating Agencies a Servicer’s Accounting with respect to the immediately preceding Monthly Period
executed by any Authorized Officer of the Servicer containing all information necessary to each such party for making any distributions required by the Further Transfer and Servicing Agreements, and all information necessary to each such party for
sending any statements required under the Further Transfer and Servicing Agreements. Receivables to be purchased by the Servicer under Section 3.08 or 5.04 or to be repurchased by Ally Auto, the Seller or the Servicer under the
Further Transfer and Servicing Agreements as of the last day of any Monthly Period shall be identified by Receivable number (as set forth in the Schedule of Receivables). With respect to any Receivables for which Ally Auto is the Owner, the Servicer
shall deliver to Ally Auto such accountings relating to such Receivables and the actions of the Servicer with respect thereto as Ally Auto may reasonably request. 

SECTION 3.11 Application of Collections. For the purposes of this Agreement and the Further Transfer and Servicing Agreements, no
later than each Distribution Date all collections for the related Monthly Period shall be applied by the Servicer as follows: 

(a) With respect to all Simple Interest Receivables (other than Administrative Receivables and Warranty Receivables), payments by or on
behalf of the Obligors that are not Supplemental Servicing Fees shall be applied to principal and interest on all such Simple Interest Receivables. 

(b) With respect to a Simple Interest Receivable that is also an Administrative Receivable or Warranty Receivable, payments by or on
behalf of the Obligor shall be applied in the same manner as set forth in Section 3.11(a). A Warranty Payment or an Administrative Purchase Payment, as applicable, shall be applied to principal and interest on such Receivable.

  

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 ARTICLE IV 

REPRESENTATIONS AND WARRANTIES 

SECTION 4.01 Representations and Warranties as to the Receivables. The Seller makes the following representations and warranties
as to the Receivables, on which Ally Auto relies in accepting the Receivables. Such representations and warranties speak as of the Closing Date, and shall survive the sale, transfer and assignment of the Receivables to Ally Auto and the subsequent
assignment and transfer pursuant to the Further Transfer and Servicing Agreements: 
 (a) Characteristics of Receivables.

 (i) General. Each Receivable: 

(1) is secured by a Financed Vehicle, was originated in the United States by the Seller or one of its subsidiaries or a Dealer for the
retail sale of a Financed Vehicle in the ordinary course of business, was fully and properly executed by the parties thereto, if not originated by the Seller, was purchased by the Seller from one of its subsidiaries or from such Dealer under an
existing Dealer Agreement, and was validly assigned by such subsidiary or such Dealer to the Seller in accordance with its terms, 

(2) has created or shall create a valid, binding and enforceable first priority security interest in favor of the Seller in the Financed
Vehicle, which security interest is assignable by the Seller to Ally Auto, 
 (3) contains customary and enforceable provisions
such as to render the rights and remedies of the holder thereof adequate for realization against the collateral of the benefits of the security, 

(4) is a Simple Interest Receivable, 

(5) provides for level monthly payments which may vary from one another by no more than $5, which shall amortize the Amount Financed by
maturity and shall yield interest at the Annual Percentage Rate, 
 (6) has an original term of not less than twelve
(12) months and not greater than seventy-two (72) months and a remaining term of not less than six (6) months, and 

(7) at least one monthly payment has been made. 

(ii) Receivables. In addition to the characteristics set forth in Section 4.01(a)(i) above, each Receivable
(1) has a first scheduled payment due date on or after February 5, 2009, (2) was originated on or after January 9, 2009, (3) as of the Cutoff Date, was not considered past due (that is, no payments due on that Receivable in
excess of $25 were more than thirty (30) days delinquent), and was not a Liquidating Receivable, and (4) has an Annual Percentage Rate not greater than 14.00%. 
  

 10 

 (b) Creation, Perfection and Priority of Security Interests. The representations and
warranties regarding creation, perfection and priority of security interests in the Purchased Property, which are attached to this Agreement as Appendix B, are true and correct to the extent that they are applicable. 

(c) Schedule of Receivables. The information set forth in the Schedule of Receivables is true and correct in all material
respects, and no selection procedures believed to be adverse to Ally Auto or to holders of the Securities issued under the Further Transfer and Servicing Agreements were utilized in selecting the Receivables from those receivables of the Seller that
meet the selection criteria set forth in this Agreement. 
 (d) Compliance With Law. All requirements of applicable
federal, state and local laws, and regulations thereunder, including usury laws, Utah banking laws, the Federal Truth-in-Lending Act, the Equal Credit Opportunity Act, the Fair Credit Billing Act, the Fair Credit Reporting Act, the Fair Debt
Collection Practices Act, the Federal Trade Commission Act, the Magnuson-Moss Warranty Act, the Federal Reserve Board’s Regulations “B” and “Z,” the Servicemembers Civil Relief Act of 2003, the Texas Consumer Credit Code,
and state adaptations of the National Consumer Act and the Uniform Consumer Credit Code and other consumer credit laws and equal credit opportunity and disclosure laws, in respect of any of the Receivables and other Purchased Property, have been
complied with in all material respects, and each Receivable and the sale of the Financed Vehicle evidenced thereby complied at the time it was originated or made and now complies in all material respects with all legal requirements of the
jurisdiction in which it was originated or made. 
 (e) Binding Obligation. Each Receivable represents the genuine,
legal, valid and binding payment obligation in writing of the Obligor thereon, enforceable by the holder thereof in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws
affecting the enforcement of creditors’ rights in general and by equity, regardless of whether such enforceability is considered in a proceeding in equity or at law. 

(f) Security Interest in Financed Vehicle. Immediately prior to the sale, transfer and assignment thereof pursuant hereto and the
First Step Receivables Assignment, each Receivable was secured by a validly perfected first priority security interest in the Financed Vehicle in favor of the Seller as secured party or all necessary and appropriate action had been commenced that
would result in the valid perfection of a first priority security interest in the Financed Vehicle in favor of the Seller as secured party. 

(g) Receivables In Force. No Receivable has been satisfied, subordinated or rescinded, and the Financed Vehicle securing each such
Receivable has not been released from the lien of the related Receivable in whole or in part. 
 (h) No Waiver. Since the
Cutoff Date no provision of a Receivable has been waived, altered or modified in any respect. 
 (i) No Defenses. No
right of rescission, setoff, counterclaim or defense has been asserted or threatened with respect to any Receivable. 
  

 11 

 (j) No Liens. To the best of the Seller’s knowledge: (1) there are no liens
or claims that have been filed for work, labor or materials affecting any Financed Vehicle securing any Receivable that are or may be liens prior to, or equal or coordinate with, the security interest in the Financed Vehicle granted by the
Receivable; (2) no contribution failure has occurred with respect to any Benefit Plan which is sufficient to give rise to a lien under Section 303 (k) of ERISA with respect to any Receivable; and (3) no tax lien has been filed
and no claim related thereto is being asserted with respect to any Receivable. 
 (k) Insurance. Each Obligor is required
to maintain a physical damage insurance policy of the type that the Seller requires in accordance with its customary underwriting standards for the purchase of motor vehicle related receivables. 

(l) Good Title. No Receivable has been sold, transferred, assigned or pledged by the Seller to any Person other than Ally Auto;
immediately prior to the conveyance of the Receivables pursuant to this Agreement and the First Step Receivables Assignment, the Seller had good and marketable title thereto, free of any Lien; and, upon execution and delivery of this Agreement by
the Seller, Ally Auto shall have all of the right, title and interest of the Seller in and to the Receivables, the unpaid indebtedness evidenced thereby and the collateral security therefor, free of any Lien. 

(m) Lawful Assignment. No Receivable was originated in, or is subject to the laws of, any jurisdiction the laws of which would
make unlawful the sale, transfer and assignment of such Receivable under this Agreement, the Trust Sale and Servicing Agreement or the Indenture, as applicable. 

(n) All Filings Made. All filings (including UCC filings) necessary in any jurisdiction to give Ally Auto a first priority
perfected ownership interest in the Receivables shall have been made. 
 (o) One Original. There is only one original
executed copy of each Receivable. 
 (p) No Documents or Instruments. No Receivable, or constituent part thereof,
constitutes a “negotiable instrument” or “negotiable document of title” (as such terms are used in the UCC). 

(q) No Amendment. No Receivable has been amended or otherwise modified such that the number of originally scheduled due dates has
been increased or such that the Amount Financed has been increased. 
 SECTION 4.02 Additional Representations and Warranties
of the Seller. The Seller hereby represents and warrants to Ally Auto and the Servicer as of the Closing Date that: 
 (a)
Organization and Good Standing; FDIC. The Seller has been duly organized and is validly existing as a Utah chartered bank, with power and authority to own its properties and to conduct its business as such properties are presently owned and
such business is presently conducted; and as of the date hereof, the Seller is insured by the Federal Deposit Insurance Corporation and is subject to the Federal Deposit Insurance Act; 

 

 12 

 (b) Due Qualification. The Seller is duly qualified to do business as a foreign
entity in good standing, and has obtained all necessary licenses and approvals, in all jurisdictions in which the ownership or lease of property or the conduct of its business requires or shall require such qualification; 

(c) Power and Authority. The Seller has the power and authority to execute and deliver this Agreement and the First Step
Receivables Assignment and to carry out its terms; the Seller has full power and authority to sell and assign the property to be sold and assigned to Ally Auto, and has duly authorized such sale and assignment to Ally Auto by all necessary corporate
action; and the execution, delivery and performance of this Agreement and the First Step Receivables Assignment have been duly authorized by the Seller by all necessary corporate action; 

(d) Valid Sale; Binding Obligation. This Agreement and the First Step Receivables Assignment, when duly executed and delivered,
shall constitute a valid sale, transfer and assignment of the Receivables, in each case, enforceable against creditors of and purchasers from the Seller; and this Agreement together with the First Step Receivables Assignment, when duly executed and
delivered, shall constitute a legal, valid and binding obligation of the Seller enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy, receivership, conservatorship, insolvency, reorganization or other
similar laws affecting the enforcement of creditors’ rights in general and by general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law; 

(e) No Violation. The consummation of the transactions contemplated by this Agreement and the First Step Receivables Assignment
and the fulfillment of the terms of this Agreement and the First Step Receivables Assignment shall not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default
under, the articles of incorporation or bylaws (or similar organizational documents) of the Seller, or any indenture, agreement, mortgage, deed of trust or other instrument to which the Seller is a party or by which it is bound, or result in the
creation or imposition of any Lien upon any of its properties pursuant to the terms of any such indenture, agreement, mortgage, deed of trust or other instrument, other than this Agreement and the First Step Receivables Assignment or violate any law
or, to the best of the Seller’s knowledge, any order, rule or regulation applicable to the Seller of any court or of any federal or State regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the
Seller or any of its properties; and 
 (f) No Proceedings. To the Seller’s knowledge, there are no proceedings or
investigations pending, or threatened, before any court, regulatory body, administrative agency or other tribunal or governmental instrumentality having jurisdiction over the Seller or its properties (A) asserting the invalidity of this
Agreement and the First Step Receivables Assignment, (B) seeking to prevent the consummation of any of the transactions contemplated by this Agreement and the First Step Receivables Assignment, or (C) seeking any determination or ruling
that might materially and adversely affect the performance by the Seller of its obligations under, or the validity or enforceability of, this Agreement and the First Step Receivables Assignment. 

 

 13 

 SECTION 4.03 Representations and Warranties of Ally Auto. Ally Auto hereby represents
and warrants to the Seller and the Servicer as of the Closing Date: 
 (a) Organization and Good Standing. Ally Auto has
been duly formed and is validly existing as an entity in good standing under the laws of the State of Delaware, with power and authority to own its properties and to conduct its business as such properties are presently owned and such business is
presently conducted, and had at all relevant times, and now has, power, authority and legal right to acquire and own the Receivables; 

(b) Due Qualification. Ally Auto is duly qualified to do business as a foreign entity in good standing, and has obtained all
necessary licenses and approvals in all jurisdictions in which the ownership or lease of property or the conduct of its business requires such qualification; 

(c) Power and Authority. Ally Auto has the power and authority to execute and deliver this Agreement and the First Step
Receivables Assignment and to carry out its terms and the execution, delivery and performance of this Agreement and the First Step Receivables Assignment have been duly authorized by Ally Auto by all necessary limited liability company action;

 (d) No Violation. The consummation of the transactions contemplated by this Agreement and the First Step Receivables
Assignment and the fulfillment of the terms of this Agreement and the First Step Receivables Assignment shall not conflict with, result in any breach of any of the terms and provisions of or constitute (with or without notice or lapse of time) a
default under, the certificate of formation or limited liability company agreement of Ally Auto, or any indenture, agreement, mortgage, deed of trust or other instrument to which Ally Auto is a party or by which it is bound, or result in the
creation or imposition of any Lien upon any of its properties pursuant to the terms of any such indenture, agreement or other instrument, other than any Further Transfer and Servicing Agreement or violate any law or, to the best of Ally Auto’s
knowledge, any order, rule or regulation applicable to Ally Auto of any court or of any federal or State regulatory body, administrative agency or other governmental instrumentality having jurisdiction over Ally Auto or any of its properties; and

 (e) No Proceedings. To Ally Auto’s knowledge, there are no proceedings or investigations pending, or threatened,
before any court, regulatory body, administrative agency or other tribunal or governmental instrumentality having jurisdiction over Ally Auto or its properties (i) asserting the invalidity of this Agreement and the First Step Receivables
Assignment, or (ii) seeking any determination or ruling that might materially and adversely affect the performance by Ally Auto of its obligations under, or the validity or enforceability of, this Agreement and the First Step Receivables
Assignment. 
  

 14 

 ARTICLE V 

ADDITIONAL AGREEMENTS 

SECTION 5.01 Conflicts With Further Transfer and Servicing Agreements. To the extent that any provision of Sections 5.02
through 5.04 of this Agreement conflicts with any provision of the Further Transfer and Servicing Agreements, the Further Transfer and Servicing Agreements shall govern. 

SECTION 5.02 Protection of Title. 

(a) Filings. The Seller shall authorize and execute, as applicable, and file such financing statements or amendments to financing
statements and cause to be authorized and executed, as applicable, and filed such continuation and other statements, all in such manner and in such places as may be required by law fully to preserve, maintain and protect the interest of Ally Auto
under this Agreement and the First Step Receivables Assignment in the Receivables and the other Purchased Property and in the proceeds thereof. The Seller shall deliver (or cause to be delivered) to Ally Auto file-stamped copies of, or filing
receipts for, any document filed as provided above, as soon as available following such filing, and the Seller hereby authorizes Ally Auto and its assigns to file all such financing statements without its signature. 

(b) Name Change. The Seller shall not change its State of incorporation or its name, identity or entity structure in any manner
that would, could or might make any financing statement or continuation statement filed by the Seller, Ally Auto or Ally Auto’s assigns in accordance with Section 5.02(a) seriously misleading within the meaning of the UCC, unless it
shall give Ally Auto written notice thereof within ten (10) days of such change. 
 (c) Executive Office; Maintenance of
Offices. The Seller shall give Ally Auto written notice within ten (10) days of any relocation of its principal executive office if, as a result of such relocation, the applicable provisions of the UCC would require the filing of any
amendment of any previously filed financing or continuation statement or of any new financing statement. The Seller shall at all times maintain each office from which it originates Receivables and its principal executive office within the United
States of America. 
 (d) New Debtor. In the event that the Seller shall change the jurisdiction in which it is formed or
otherwise enter into any transaction which would result in a “new debtor” (as defined in the UCC) succeeding to the obligations of the Seller hereunder, the Seller shall comply fully with the obligations of Section 5.02(a).

 SECTION 5.03 Other Liens or Interests. Except for the conveyances hereunder and under the First Step Receivables
Assignment and as contemplated by the Further Transfer and Servicing Agreements, the Seller shall not sell, pledge, assign or transfer the Receivables or other Purchased Property to any other Person, or grant, create, incur, assume or suffer to
exist any Lien on any interest therein, and the Seller shall defend the right, title and interest of Ally Auto in, to and under such Receivables or other Purchased Property against all claims of third parties claiming through or under the Seller.

  

 15 

 SECTION 5.04 Repurchase Events. By its execution of the Further Transfer and
Servicing Agreements to which it is a party, the Seller shall acknowledge the assignment by Ally Auto of such of its right, title and interest in, to and under this Agreement and the First Step Receivables Assignment to the Issuing Entity as shall
be provided in the Further Transfer and Servicing Agreements. The Seller hereby covenants and agrees with Ally Auto for the benefit of Ally Auto and the Interested Parties that in the event of a breach of any of the Seller’s representations and
warranties contained in Section 4.01 hereof with respect to any Receivable (a “Repurchase Event”), the Seller will repurchase such Receivable from the Issuing Entity (if the Issuing Entity is then the Owner of such
Receivable) on the date and for the amount specified in the Further Transfer and Servicing Agreements, without further notice from Ally Auto hereunder. Upon the occurrence of a Repurchase Event with respect to a Receivable for which Ally Auto is the
Owner, the Seller agrees to repurchase such Receivable from Ally Auto for an amount and upon the same terms as the Seller would be obligated to repurchase such Receivable from the Issuing Entity if the Issuing Entity was then the Owner thereof, and
upon payment of such amount, the Seller shall have such rights with respect to such Receivable as if the Seller had purchased such Receivable from the Issuing Entity as the Owner thereof. It is understood and agreed that the obligation of the Seller
to repurchase any Receivable as to which a breach has occurred and is continuing shall, if such obligation is fulfilled, constitute the sole remedy against the Seller for such breach available to Ally Auto or any Interested Party. 

SECTION 5.05 Indemnification. The Seller shall indemnify Ally Auto for any liability as a result of the failure of a Receivable to
be originated in compliance with all requirements of law. This indemnity obligation shall be in addition to any obligation that the Seller may otherwise have. 

SECTION 5.06 Further Assignments. The Seller acknowledges that Ally Auto may, pursuant to the Further Transfer and Servicing
Agreements, sell the Receivables to the Issuing Entity and assign its rights hereunder and under the First Step Receivables Assignment to the Issuing Entity, subject to the terms and conditions of the Further Transfer and Servicing Agreements, and
that the Issuing Entity may in turn further pledge, assign or transfer its rights in the Receivables and this Agreement and the First Step Receivables Assignment. The Seller further acknowledges that Ally Auto may assign its rights under the
Custodian Agreement to the Issuing Entity. 
 SECTION 5.07 Pre-Closing Collections. Within two (2) Business Days
after the Closing Date the Seller shall transfer to the account or accounts designated by Ally Auto (or by the Issuing Entity under the Further Transfer and Servicing Agreements) all collections on the Receivables held by the Seller on the Closing
Date, and conveyed to Ally Auto pursuant to Section 2.01; provided that so long as the Monthly Remittance Conditions are satisfied, such collections need not be transferred until the first Distribution Date. 

 

 16 

 ARTICLE VI 

CONDITIONS 

SECTION 6.01 Conditions to Obligation of Ally Auto. The obligation of Ally Auto to purchase the Receivables hereunder and pursuant
to the First Step Receivables Assignment is subject to the satisfaction of the following conditions: 
 (a) Representations
and Warranties True. The representations and warranties of each of the Seller and the Servicer hereunder, shall be true and correct at the time of the Closing Date, and each of the Seller and the Servicer shall have performed all obligations to
be performed by it hereunder on or prior to the Closing Date. 
 (b) No Repurchase Event. No Repurchase Event shall have
occurred on or prior to the Closing Date. 
 (c) Computer Files Marked. The Seller shall have or shall have caused to
have, at its own expense, on or prior to the Closing Date, indicated in its computer files created in connection with the Receivables that the Receivables have been sold to Ally Auto pursuant to this Agreement and the First Step Receivables
Assignment and deliver to Ally Auto the Schedule of Receivables, certified by an officer of the Seller to be true, correct and complete. 

(d) Documents to be Delivered By the Seller. 

(i) The Assignments. On the Closing Date, the Seller shall execute and deliver the First Step Receivables Assignment. 

(ii) Evidence of UCC Filing. On or prior to the Closing Date, the Seller shall record and file, at its own expense, a UCC-1
financing statement in each jurisdiction in which required by applicable law, authorized by and naming the Seller as seller or debtor, naming Ally Auto as purchaser or secured party, naming the Receivables and the other Purchased Property as
collateral, meeting the requirements of the laws of each such jurisdiction and in such manner as is necessary to perfect the sale, transfer, assignment and conveyance of such Receivables to Ally Auto. The Seller shall deliver a file-stamped copy, or
other evidence satisfactory to Ally Auto of such filing, to Ally Auto on or prior to the Closing Date. 
 (iii) Other
Documents. On the Closing Date the Seller shall provide such other documents as Ally Auto may reasonably request. 
 (e)
Other Transactions. The transactions contemplated by the Further Transfer and Servicing Agreements shall be consummated to the extent that such transactions are intended to be substantially contemporaneous with the transactions hereunder.

 SECTION 6.02 Conditions to Obligation of the Seller. The obligation of the Seller to sell the Receivables to Ally Auto
hereunder or pursuant to the First Step Receivables Assignment is subject to the satisfaction of the following conditions: 

(a) Representations and Warranties True. The representations and warranties of Ally Auto hereunder shall be true and correct as of
the Closing Date with respect to the Receivables, and Ally Auto shall have performed all obligations to be performed by it hereunder or pursuant to the First Step Receivables Assignment on or prior to the closing hereunder. 

 

 17 

 (b) Receivables Purchase Price. On the Closing Date, Ally Auto shall pay to the
Seller that portion of the Initial Aggregate Receivables Principal Balance as provided in Section 2.02. 
 ARTICLE
VII 
 MISCELLANEOUS PROVISIONS 

SECTION 7.01 Amendment. This Agreement may be amended from time to time (subject to any expressly applicable amendment provision
of the Further Transfer and Servicing Agreements) by a written amendment duly executed and delivered by the Seller, the Servicer and Ally Auto. 

SECTION 7.02 Survival. The representations and warranties of the Seller and Servicer set forth in Articles IV and V
of this Agreement and of Servicer set forth in Section 3.07 of this Agreement shall remain in full force and effect and shall survive the Closing Date under Section 2.03 hereof and the closing under the Further Transfer and
Servicing Agreements. 
 SECTION 7.03 Notices. All demands, notices and communications upon or to the Seller, the
Servicer or Ally Auto under this Agreement shall be delivered as specified in Part III of Appendix A to this Agreement. 

SECTION 7.04 Governing Law. THIS AGREEMENT AND THE FIRST STEP RECEIVABLES ASSIGNMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF OR OF ANY OTHER JURISDICTION OTHER THAN SECTION 5-1401 AND SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES UNDER THIS AGREEMENT SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

SECTION 7.05 Waivers. No failure or delay on the part of Ally Auto in exercising any power, right or remedy under this Agreement
or the First Step Receivables Assignment shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or remedy preclude any other or further exercise thereof or the exercise of any other power, right or
remedy. 
 SECTION 7.06 Costs and Expenses. The Seller agrees to pay all reasonable out-of-pocket costs and expenses of
Ally Auto, including fees and expenses of counsel, in connection with the perfection as against third parties of Ally Auto’s right, title and interest in, to and under the Receivables and the enforcement of any obligation of the Seller
hereunder. 
  

 18 

 SECTION 7.07 Confidential Information. Ally Auto agrees that it shall neither use nor
disclose to any person the names and addresses of the Obligors, except in connection with the enforcement of Ally Auto’s rights hereunder, under the Receivables, under the Further Transfer and Servicing Agreements or as required by law.

 SECTION 7.08 Headings. The headings of the various Articles and Sections herein are for convenience of reference only
and shall not define or limit any of the terms or provisions hereof. 
 SECTION 7.09 Counterparts. This Agreement may be
executed in two or more counterparts and by different parties on separate counterparts, each of which shall be an original, but all of which together shall constitute one and the same instrument. 

SECTION 7.10 No Petition Covenant. Notwithstanding any prior termination of this Agreement, the Seller shall not, prior to the
date which is one year and one day after the final distribution with respect to the Notes to the Note Distribution Account, acquiesce, petition or otherwise invoke or cause Ally Auto or the Issuing Entity to invoke the process of any court or
government authority for the purpose of commencing or sustaining a case against Ally Auto or the Issuing Entity under any federal or State bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of Ally Auto or the Issuing Entity or any substantial part of the property of either of them, or ordering the winding up or liquidation of the affairs of Ally Auto or the Issuing Entity under any federal or
State bankruptcy or insolvency proceeding. 
 SECTION 7.11 Limitations on Rights of Others. The provisions of this
Agreement and the First Step Receivables Assignment are solely for the benefit of the Seller, the Servicer and Ally Auto and, to the extent expressly provided herein, the Interested Parties, and nothing in this Agreement, whether express or implied,
shall be construed to give to any other Person any legal or equitable right, remedy or claim in, under, or in respect of this Agreement or any covenants, conditions or provisions contained herein. 

SECTION 7.12 Merger and Consolidation of the Seller, the Servicer or Ally Auto. Any corporation, limited liability company or
other entity (i) into which any of the Seller, the Servicer or Ally Auto may be merged or consolidated, (ii) resulting from any merger or consolidation to which any of the Seller, the Servicer or Ally Auto shall be a party,
(iii) succeeding to the business of any of the Seller, the Servicer or Ally Auto, (iv) more than 15% of the voting stock (or, if not a corporation, other voting interests) of which is owned directly or indirectly by General Motors and
Cerberus Capital Management, L.P., in the aggregate, or (v) 50% or more of the voting stock (or, if not a corporation, other voting interests) of which is owned, directly or indirectly, by General Motors or Ally Financial, which corporation,
limited liability company or other entity in any of the foregoing cases executes an agreement of assumption to perform every obligation of the Seller, the Servicer or Ally Auto (as applicable) under this Agreement and the other Basic Documents,
shall be the successor to the Seller, the Servicer or Ally Auto (as applicable) under this Agreement without the execution or filing of any document or any further act on the part of any of the parties to this Agreement. 

 

 19 

 SECTION 7.13 Assignment. Notwithstanding anything to the contrary contained in this
Agreement, this Agreement may be assigned by the Seller, the Servicer or Ally Auto without the consent of any other Person to a corporation, limited liability company or other entity that is a successor (by merger, consolidation or purchase of
assets) to the Seller, the Servicer or Ally Auto (as applicable), or 50% or more of the voting interests of which is owned, directly or indirectly, by General Motors or by Ally Financial or more than 15% of the voting stock (or, if not a
corporation, other voting interests) of which is owned directly or indirectly by General Motors and Cerberus Capital Management, L.P., in the aggregate, provided that such entity executes an agreement of assumption, as provided in
Section 3.03(a) or 6.02 of the Trust Sale and Servicing Agreement, as applicable. 
 SECTION 7.14 Official Record.
This Agreement is, and the Seller agrees to maintain this Agreement from and after the date hereof as, an official record (within the meaning of Section 13(e) of the Federal Deposit Insurance Act) of the Seller. 

*    *    *    *    * 

 

 20 

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

					
	ALLY BANK
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	ALLY AUTO ASSETS LLC
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	ALLY FINANCIAL INC.
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

  

 Pooling and Servicing Agreement (AART 2010-3) 

 EXHIBIT A 

FORM OF 
 FIRST
STEP RECEIVABLES ASSIGNMENT 
 PURSUANT TO POOLING AND SERVICING AGREEMENT 

For value received, in accordance with the Pooling and Servicing Agreement, dated as of August 18, 2010 (the “Pooling and
Servicing Agreement”), among Ally Bank, a Utah chartered bank (the “Seller”), Ally Auto Assets LLC, a Delaware limited liability company (“Ally Auto”), and Ally Financial Inc., the Seller does hereby sell,
assign, transfer and otherwise convey unto Ally Auto, without recourse, as of August 18, 2010, (i) all right, title and interest of the Seller in, to and under the Receivables listed on the Schedule of Receivables attached as Schedule
A hereto and all monies received thereon on and after the Cutoff Date, exclusive of any amounts allocable to the premium for physical damage collateral protection insurance required by the Seller or the Servicer covering any related Financed
Vehicle; (ii) the interest of the Seller in the security interests in the Financed Vehicles granted by Obligors pursuant to the Receivables and, to the extent permitted by law, any accessions thereto; (iii) the interest of the Seller in
any proceeds from claims on any physical damage, credit life, credit disability or other insurance policies covering Financed Vehicles or Obligors; (iv) the interest of the Seller in any proceeds from recourse against Dealers on the
Receivables; and (v) all right, title and interest of the Seller in, to and under the First Step Receivables Assignment; and (vi) all present and future claims, demands, causes and choses in action in respect of any or all the foregoing
described in clauses (i), (ii), (iii), (iv), and (v) above and all payments on or under and all proceeds of every kind and nature whatsoever in respect of any or all the foregoing, including all proceeds of the conversion of any or all of the
foregoing, voluntary or involuntary, into cash or other liquid property, all cash proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance proceeds, investment property, payment
intangibles, general intangibles, condemnation awards, rights to payment of any and every kind and other forms of obligations and receivables, instruments and other property which at any time constitute all or part of or are included in the proceeds
of any of the foregoing. 
 It is the intention of the Seller and Ally Auto that the transfer and assignment of Receivables
contemplated by the Pooling and Servicing Agreement and this First Step Receivables Assignment shall constitute a sale of the Receivables from the Seller to Ally Auto and the beneficial interest in and title to the Receivables shall not be part of
the Seller’s estate in the event of the filing of a petition for insolvency, receivership or conservatorship by or against the Seller or placement into receivership or conservatorship of the Seller under any relevant bankruptcy, insolvency,
receivership or conservatorship law. 
 The foregoing transfer and assignment of Receivables contemplated by the Pooling and
Servicing Agreement and this First Step Receivables Assignment does not constitute and is not intended to result in any assumption by Ally Auto of any obligation of the undersigned to the Obligors, Dealers, insurers or any other Person in connection
with the Receivables, any Dealer Agreements, any insurance policies or any agreement or instrument relating to any of them. 

This First Step Receivables Assignment is made pursuant to and upon the representations, warranties and agreements on the part of the
undersigned contained in the Pooling and Servicing Agreement and is to be governed by the Pooling and Servicing Agreement. 
  

 Ex. A-1 

 Capitalized terms used herein and not otherwise defined herein shall have the meaning
assigned to them in the Pooling and Servicing Agreement. 

*    *    *    *    * 

 

 Ex. A-2 

 IN WITNESS WHEREOF, the undersigned has caused this First Step Receivables Assignment to be
duly executed as of the day and year first above written. 
  

			
	ALLY BANK
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 Ex. A-3 

 SCHEDULE A 

SCHEDULE OF RECEIVABLES 

The Schedule of Receivables is 

on file at the offices of: 
  

	1.	The Indenture Trustee 

  

	2.	The Owner Trustee 

  

	3.	The Servicer 

  

	4.	The Seller 

  

	5.	Ally Auto Assets LLC 

  

 Sch. A 

 APPENDIX A 

Part I 
 For ease
of reference, capitalized terms defined herein have been consolidated with and are contained in Part I of Appendix A to the Trust Sale and Servicing Agreement of even date herewith among Ally Financial Inc., Ally Auto and Ally Auto Receivables Trust
2010-3, as amended and supplemented from time to time. 
 Part II 

For ease of reference, the rules of construction have been consolidated with and are contained in Part II of Appendix A to the Trust Sale
and Servicing Agreement of even date herewith among Ally Financial Inc., Ally Auto and Ally Auto Receivables Trust 2010-3, as amended and supplemented from time to time. 

Part III 
 For
ease of reference, the notice addresses and procedures have been consolidated with and are contained in Appendix B to the Trust Sale and Servicing Agreement of even date herewith among Ally Financial Inc., Ally Auto and Ally Auto Receivables Trust
2010-3, as amended and supplemented from time to time. 
  

 App. A 

 APPENDIX B 

Additional Representations and Warranties 
  

	1.	While it is the intention of the Seller and Ally Auto that the transfer and assignment contemplated by this Agreement and the First Step Receivables Assignment shall
constitute sales of the Purchased Property from the Seller to Ally Auto, this Agreement, the Trust Sale and Servicing Agreement and the Indenture create a valid and continuing security interest (as defined in the applicable UCC) in the Purchased
Property in favor of Ally Auto, the Trust and the Indenture Trustee, as applicable, which security interest is prior to all other Liens, and is enforceable as such as against creditors of and purchasers from the Seller, Ally Auto and the Issuing
Entity, respectively. 

  

	2.	All steps necessary to perfect the Seller’s security interest against each Obligor in the property securing the Purchased Property have been taken.

  

	3.	Prior to the sale of the Purchased Property to Ally Auto under this Agreement, the Receivables constitute “tangible chattel paper” within the meaning of the
applicable UCC. 

  

	4.	The Seller owns and has good and marketable title to the Purchased Property free and clear of any Lien, claim or encumbrance of any Person. 

 

	5.	The Seller has caused or will have caused, within ten (10) days, the filing of all appropriate financing statements in the proper filing office in the appropriate
jurisdictions under applicable law in order to perfect the security interest in the Purchased Property granted to Ally Auto hereunder, the Issuing Entity under the Trust Sale and Servicing Agreement and the Indenture Trustee under the Indenture.

  

	6.	Other than the security interest granted to Ally Auto pursuant to the Basic Documents, the Issuing Entity under the Trust Sale and Servicing Agreement and the Indenture
Trustee under the Indenture none of the Seller, Ally Auto or the Issuing Entity has pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Purchased Property. None of the Seller, Ally Auto or the Issuing Entity has
authorized the filing of, nor is the Seller aware of, any financing statements against the Seller, Ally Auto or the Issuing Entity that include a description of collateral covering the Purchased Property other than the financing statements relating
to the security interests granted to Ally Auto, the Issuing Entity and the Indenture Trustee under the Basic Documents or any financing statement that has been terminated. The Seller is not aware of any judgment or tax lien filings against the
Seller, Ally Auto or the Issuing Entity. 

  

	7.	The Custodian has in its possession or with third party vendors all original copies of the Receivables Files and other documents that constitute or evidence the
Receivables and the Purchased Property. The Receivables Files and other documents that constitute or evidence the Purchased Property do not have any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any
Person other than Ally Auto. 

  

 App. BForm of Senior Convertible Unsecured Debenture

 Exhibit 10.1 

THIS DEBENTURE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS DEBENTURE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
ANY STATE SECURITIES LAWS. THIS DEBENTURE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENTOR AN OPINION OF COUNSEL
REASONABLY SATISFACTORY TO AMPIO PHARMACEUTICALS, INC. THAT SUCH REGISTRATION IS NOT REQUIRED. 
 UNSECURED SENIOR
CONVERTIBLE DEBENTURE 
 FOR VALUE RECEIVED, AMPIO PHARMACEUTICALS, INC., a Delaware corporation (the
“Borrower” or “Ampio”), promises to pay to              (the “Holder”) or his registered assigns or successors in interest, the sum
of              Thousand Dollars ($        .00)(the “Principal Amount”), together with any accrued and unpaid interest
hereon, on January 31, 2011 if not sooner paid in accordance with the provisions below. 
 The following terms shall apply to this
Debenture: 
 ARTICLE I 

INTEREST, AMORTIZATION AND STATUS 

1.1. Interest. This Debenture shall accrue interest at the rate of 8% per annum. 

1.2. Payment. If not earlier paid by conversion, payment of the aggregate principal amount outstanding under this
Debenture (the “Principal Amount”) shall be made on the earlier of (i) one (1) business day after the closing of the Public Offering (hereinafter defined), or (ii) January 31, 2011 (hereinafter, the
“Maturity Date”). 
 1.3. Status. At the date hereof, Borrower represents and warrants to Holder that
its outstanding indebtedness consists solely of $400,000 in related party notes payable (the “RPT Notes”). The RPT Notes are currently due on or about September 2, 2010. The Borrower will obtain an extension for the due date of
the RPT Notes that will reflect the Maturity Date of this Debenture. In addition, at the time such extension is obtained, the Borrower will obtain a subordination agreement from the holder of the RPT Notes that shall subordinate the repayment of the
RPT Notes to the repayment of this Debenture (and debentures issues on similar terms, as described below). Accordingly, this Debenture and any other debentures issued by the Borrower on equivalent terms hereto shall jointly consist of the senior
indebtedness of Ampio. 
 ARTICLE II 

CONVERSION REPAYMENT 

2.1. Optional Conversion. Subject to the terms of this Article II, the Holder shall have the right, but not the
obligation, at any time until the Maturity Date, or thereafter during an Event of Default, to convert all or any portion of the outstanding Principal Amount into fully paid and nonassessable shares of Common Stock at the Conversion Price. The shares
of Common Stock to be issued upon such conversion are herein referred to as the “Conversion Shares.” The “Conversion Price” shall mean the per-share price at which Ampio’s Common Stock is sold in an
underwritten public offering (the “Public Offering”) that is the subject of a registration statement on Form S-1 to be filed with the Securities and Exchange Commission in late August or early September 2010. The Conversion Price
may be adjusted pursuant to the other terms of this Debenture. 

 2.2. Mechanics of Holder’s Conversion. This Debenture may be converted
by the Holder in part or in full from time to time after the Issue Date, by submitting to the Borrower a Notice of Conversion (by facsimile or other reasonable means of communication dispatched on the Conversion Date prior to 2:00 p.m., Denver,
Colorado time). On each Conversion Date (as hereinafter defined) and in accordance with its Notice of Conversion, the Holder shall make the appropriate reduction to the Principal Amount as entered in its records and shall provide written notice
thereof to the Borrower on the Conversion Date. Each date on which a Notice of Conversion is delivered or telecopied to Borrower in accordance with the provisions hereof shall be deemed a Conversion Date (the “Conversion
Date”). A form of Notice of Conversion to be employed by the Holder is annexed hereto as Exhibit A. Borrower shall provide irrevocable written instructions to the transfer agent accompanied by an opinion of counsel to
Borrower and shall cause the transfer agent to transmit the certificates representing the Conversion Shares to the Holder by physical delivery or crediting the account of the Holder’s designated broker with the Depository Trust Corporation
(“DTC”) through its Deposit Withdrawal Agent Commission (“DWAC”) system within five (5) business days after receipt by Borrower of the Notice of Conversion (the “Delivery Date”). In the case of
the exercise of the conversion rights set forth herein, the conversion privilege shall be deemed to have been exercised and the Conversion Shares issuable upon such conversion shall be deemed to have been issued upon the date of receipt by Borrower
of the Notice of Conversion. The Holder shall be treated for all purposes as the record holder of such Common Stock, unless the Holder provides Borrower written instructions to the contrary. 

2.3. Determination and Adjustment of Conversion Shares and Conversion Price. 

(a) The number of Conversion Shares to be issued upon each conversion of this Debenture shall be determined by dividing that portion
of the principal to be converted by the then applicable Conversion Price. 
 (b) The Conversion Price and number and kind
of shares or other securities to be issued upon conversion shall be subject to adjustment from time to time upon the happening of certain events while this conversion right remains outstanding, as follows: If the Borrower at any time on or after the
issuance date subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Conversion Price in effect immediately prior to such
subdivision will be proportionately reduced and the number of Conversion Shares will be proportionately increased. If the Borrower at any time on or after the issuance date combines (by combination, reverse stock split or otherwise) its
outstanding shares of Common Stock into a smaller number of shares, the Conversion Price in effect immediately prior to such combination will be proportionately increased and the number of Conversion Shares will be proportionately
decreased. Any adjustment under this Section 2.3(b) shall become effective at the close of business on the date the subdivision or combination becomes effective. Notwithstanding the foregoing and any other terms of this Debenture,
the issuance of shares of Ampio Common Stock (i) in the Public Offering and (ii) in connection with the acquisition of DMI BioSciences, Inc., and the issuance of additional debentures with terms identical to the terms hereof, shall not be
events which shall require any adjustment in the Conversion Price or the Conversion Shares in this Debenture 
 (c) As described
in subparagraph (b) above, the Borrower may issue additional debentures on terms identical to those set forth herein. If for any reason the Borrower issues additional debentures on terms that are more favorable to the holder(s) thereof than the
terms of this Debenture are to the Holder, the Borrower agrees that it will ascribe “most favored nation” status to the Holder and will conform the terms of this Debenture such that the terms hereof are as favorable to the Holder as any
other debenture issued to any other holder prior to the Public Offering. 
 2.4. Authorized Shares. The Borrower
will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Conversion Shares upon the full conversion of this Debenture, with such reservation remaining in effect at all time until
this Debenture is repaid in full by conversion or payment. The Borrower represents that upon issuance, such Conversion Shares will be duly and validly issued, fully paid and non-assessable shares of Ampio Common Stock with such rights and attributes
as are pari passu to the rights and attributes of Ampio Common Stock presently outstanding and to be issued in the Public Offering. In addition, if the Borrower shall issue any securities or make any change to its capital structure which
would change the number of Conversion Shares into which this Debenture shall be convertible at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of
shares of Common Stock authorized and reserved for conversion of this Debenture. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion of
this Debenture, and (ii) agrees that its issuance of this Debenture shall constitute full authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for
shares of Common Stock in accordance with the terms and conditions of this Debenture. 
  

 2 

 2.5. Issuance of New Debenture. Upon any partial conversion of this
Debenture, a new Debenture containing the same date and provisions of this Debenture shall, at the request of the Holder, be issued by the Borrower to the Holder for the principal balance of this Debenture and interest which shall not have been
converted or paid. Subject to the provisions of Article III, the Borrower will pay no costs, fees or any other consideration to the Holder for the production and issuance of a new Debenture. 

2.6 Status of Conversion Shares. The Conversion Shares issued on any conversion under this Debenture shall be restricted stock.
Accordingly, such Conversion Shares shall be salable by the Holder in accordance with the provisions of Rule 144 or other available exemption from Section 5 of the Securities Act of 1933, as amended, in accordance with the terms of such
exemption. In connection with the Public Offering, Ampio will agree with the underwriters thereof to timely file all required reports under the Securities Exchange Act of 1934, as amended, in order to ensure that the current public information
requirement of Rule 144 is met by the Borrower. 
 ARTICLE III 

EVENTS OF DEFAULT 

The occurrence of any of the following events set forth in Sections 3.1 through 3.9, inclusive, shall be an “Event of
Default”: 
 3.1. Failure to Pay Principal. Borrower fails to pay principal, and such failure shall
continue for a period of five (5) days following the date upon which such payment was due. 
 3.2. Breach of
Covenant. Borrower breaches any covenant or other term or condition of this Debenture in any material respect and such breach, if subject to cure, continues for a period of five (5) days after the occurrence thereof and notice of
breach being furnished to Borrower by Holder. 
 3.3. Breach of Representations and Warranties. Borrower shall
have breached in any material respect any representation or warranty of Borrower made herein, and such breach continues for a period of five (5) days after the occurrence thereof and notice of breach being furnished to Borrow by Holder.

 3.4. Stop Trade. An SEC stop trade order or Principal Market trading suspension of the Common Stock shall be
in effect for five (5) consecutive days or five (5) days during a period of 10 consecutive days, excluding in all cases a suspension of all trading on a Principal Market, provided that Borrower shall not have been able to cure such trading
suspension within 30 days of the notice thereof. For purposes hereof, the “Principal Market” for the Common Stock is the OTC Bulletin Board. 

3.5. Receiver or Trustee. The Borrower or any of its Subsidiaries shall make an assignment for the benefit of creditors,
or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed. 

3.6. Judgments. Any money judgment, writ or similar final process shall be entered or filed against the Borrower or any
of its Subsidiaries or any of their respective property or other assets for more than $500,000 in the aggregate, which shall remain unvacated, unbonded or unstayed for a period of thirty (30) days. 

3.7. Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings or relief under
any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any of its Subsidiaries, which proceedings are not dismissed within thirty (30) days of filing. 

 

 3 

 3.8. Default Under Other Material Agreements. The occurrence of an Event of
Default under any other material agreement to which the Borrower is party that evidences indebtedness of at least $500,000. 

3.9. Failure to Deliver Conversion Stock or Replacement Debenture. Borrower’s failure to timely deliver Conversion
Stock to the Holder pursuant to and in the form required by this Debenture, if such failure to timely deliver Conversion Stock shall not be cured within five (5) business days or, if Borrower is required to issue a replacement Debenture to
Holder, Borrower shall fail to deliver such replacement Debenture within seven (7) business days. 
 ARTICLE IV

 DEFAULT PROVISIONS 

4.1. Default Interest Rate. Following the occurrence and during the continuance of an Event of Default, interest on this
Debenture shall automatically be instated at a rate of 18% per annum, retroactive (and to be effective) as of the date of issuance of this Debenture, which interest shall be payable in cash or Conversion Stock, at the option of the Borrower.

 4.2. Conversion Privileges During Default. The conversion privileges set forth in Article II shall remain in
full force and effect from the date hereof and until this Debenture is paid in full, including in the occurrence of an Event of Default. 

4.3. Cumulative Remedies. The remedies under this Debenture shall be cumulative. 

ARTICLE V 

REPRESENTATIONS AND WARRANTIES OF THE BORROWER 

The Borrower represents and warrants to the Holder as of the date hereof as follows: 

Section 5.1 Organization. Ampio is a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware and has all requisite corporate power and authority to own its properties and carry on its business as now being conducted. 

Section 5.2 Authority; Enforceability. Ampio has the requisite corporate power and authority to execute and deliver
this Agreement and to carry out its obligations hereunder. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the
part of Ampio and no other corporate proceedings on the part of Ampio are necessary to authorize this Agreement or to consummate the transactions so contemplated. This Agreement has been duly executed and delivered by Ampio and constitutes a
valid and binding obligation of Ampio, enforceable against Ampio in accordance with its terms, except as (a) enforceability may be limited by applicable bankruptcy, insolvency, fraudulent transfer, moratorium or similar laws from time to time
in effect affecting creditors’ rights generally, and (b) the availability of equitable remedies may be limited by equitable principles of general applicability. 

Section 5.3 Third Party Consents. No consent, authorization, order or approval of, or filing or registration with,
any governmental authority or other person is required for the execution and delivery of this Agreement or the consummation by Ampio of any of the transactions contemplated hereby. 

 

 4 

 Section 5.4 No Other Representations or Warranties. Except as set
forth above in this Article V and in Section 1.3 hereof, no other representations or warranties, express or implied, are made in this Agreement by Ampio. 

ARTICLE VI 

MISCELLANEOUS 

6.1. Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder hereof in the exercise of any
power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. All
rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available. 

6.2. Notices. Any notice herein required or permitted to be given shall be in writing, addressed to the receiving party
at the address noted below, and sent by U.S. mail or by confirmed facsimile transmission, to: 
 in the case of the Holder:

 in the case of the Borrower: 

Donald B. Wingerter, Jr., Chief Executive Officer 

Ampio Pharmaceuticals, Inc. 

8400 East Crescent Parkway, Suite 600 

Greenwood Village, Colorado 80111 

Facsimile: (303) 418-1001 

with a copy to: 

Robert W. Walter, Esq. 

Richardson & Patel, LLP 

Colorado location: 9660 East Prentice Circle 

Greenwood Village, Colorado 80111 

Facsimile: (720)221-8162 

6.3. Amendment Provision. The term “Debenture” and all reference thereto, as used throughout this
instrument, shall mean this instrument as originally executed, or if later amended or supplemented, then as so amended or supplemented, and any successor instrument as it may be amended or supplemented. 

6.4. Assignability. This Debenture shall be binding upon the Borrower and its successors and assigns, and shall inure to
the benefit of the Holder and its successors and assigns, and may not be assigned by the Holder without the prior written consent of the Borrower, which consent will not be unreasonably withheld by Borrower. 

6.5. Cost of Collection. If default is made in the payment of this Debenture, Borrower shall pay the Holder hereof
reasonable costs of collection, including reasonable attorneys’, expert witness and arbitration fees. If an Event of Default occurs, then this Section 6.5 shall prevail over Section 6.6 with respect to responsibility for all costs and
fees in the event the Holder initiates a collection action. 
  

 5 

 6.6. Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This
Debenture shall be governed by, and construed in accordance with, the internal laws of the State of Colorado, without regard to principles of conflicts of law. HOLDER AND BORROWER WAIVE ANY RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
BASED UPON OR ARISING OUT OF THIS DEBENTURE OR ANY TRANSACTION CONTEMPLATED HEREIN, INCLUDING CLAIMS BASED ON CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER COMMON LAW OR STATUTORY BASES. Each party hereby submits to the exclusive jurisdiction of the
state and federal courts located in the County of Denver, State of Colorado. If the jury waiver set forth in this Section is not enforceable, then any dispute, controversy or claim arising out of or relating to this Debenture or any of the
transactions contemplated herein will be finally settled by binding arbitration in Denver, Colorado in accordance with the then current Commercial Arbitration Rules of the American Arbitration Association by one arbitrator appointed in accordance
with said rules. The arbitrator shall apply Colorado law to the resolution of any dispute, without reference to rules of conflicts of law or rules of statutory arbitration. Judgment on the award rendered by the arbitrator may be entered in
any court having jurisdiction thereof. Notwithstanding the foregoing, the parties may apply to any court of competent jurisdiction for preliminary or interim equitable relief, or to compel arbitration in accordance with this paragraph. The
expenses of the arbitration, including the arbitrator’s fees and expert witness fees, incurred by the parties to the arbitration, may be awarded to the prevailing party, in the discretion of the arbitrator, or may be apportioned between the
parties in any manner deemed appropriate by the arbitrator. Unless and until the arbitrator decides that one party is to pay for all (or a share) of such expenses, both parties shall share equally in the payment of the arbitrator’s fees as
and when billed by the arbitrator. 
 6.7. Maximum Payments. Nothing contained herein shall be deemed to
establish or require the payment of a rate of interest or other charges in excess of the maximum permitted by applicable law. In the event that the rate of interest required to be paid or other charges hereunder exceed the maximum permitted by
such law, any payments in excess of such maximum shall be credited against amounts owed by Borrower to the Holder and thus refunded to the Borrower. 

6.8. Independent Legal Advice. All parties acknowledge and represent that: (a) they have read this Debenture;
(b) they clearly understand this Debenture and each of its terms; (c) they fully and unconditionally consent to the terms of this Debenture; (d) all parties have had the benefit and advice of counsel of their own selection, and the
Holder has not relied upon the advice or counsel of Richardson & Patel, LLP, counsel to the Borrower, with respect to this Debenture; (e) they have executed this Debenture, freely, with knowledge, and without influence or duress;
(f) they have not relied upon any other representations, either written or oral, express or implied, made to them by any person, except as is specifically set forth herein; and (g) the consideration received by them has been actual,
adequate, sufficient, and received. 
 6.9. Construction. Each party acknowledges that it or its own
independent legal counsel participated in the preparation of this Debenture and, therefore, stipulates that the rule of construction that ambiguities are to be resolved against the drafting party shall not be applied in the interpretation of this
Debenture to favor either party against the other. 
 [Balance of page intentionally left blank; signature page follows.] 

  

 6 

 IN WITNESS WHEREOF, Borrower has caused this Convertible Debenture to be signed in
its name effective as of this      day of August, 2010. 
  

			
	AMPIO PHARMACEUTICALS, INC.
		
	By:	 	 /s/

		 	 Name: Donald B. Wingerter, Jr.

Title: Chief Executive Officer

  

 7 

 EXHIBIT A 

NOTICE OF CONVERSION 

(To be executed by the Holder in order to convert all or part of the Debenture into Common Stock) 

[Name and Address of Holder] 
 The undersigned
hereby converts $         of the principal under the Unsecured Senior Convertible Debenture issued by AMPIO PHARMACEUTICALS, INC. (“Borrower”) dated as of August
    , 2010 by delivery of shares of Common Stock of Borrower on and subject to the conditions set forth in Article II of such Debenture. 
  

									
	1.	  	Date of Conversion	    	  
	    		    	
					
	2.	  	Shares To Be Delivered:	    	  
	    		    	

  

			
	By:	 	  

		 	Name:
		 	Title:

  

 8

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